Disaster Risk Management

FAQs

Does ADB have a disaster policy?

Yes. ADB adopted an integrated disaster and emergency assistance policy in May 2004, in order to enhance ADB's capacity and improve its effectiveness in assisting DMCs struck by disaster. The policy supports interventions to respond to the four major components of the disaster management cycle: (i) capacity development/prevention, (ii) disaster relief, (iii) emergency response or transition, and (iv) recovery. The new policy supersedes an earlier emergency policy. (ADB approved two earlier emergency policies in 1987 and in 1989.)

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What are the key principles of ADB's disaster and emergency assistance policy?

These are (i) adopting a systematic approach to disaster management, including prevention and reconstruction; (ii) mainstreaming disaster risk management as an integral part of the development process; (iii) strengthening partnerships to maximize synergies among development and specialized (relief) organizations to enhance the effectiveness of emergency aid to DMCs; (iv) using resources more efficiently and effectively to better support pre- and post-disaster activities; and (v) improving organizational arrangements within ADB for planning, implementing, and communicating effectively on disaster and emergency-related assistance. The new policy shifts the emphasis from responding after a disaster strikes, to supporting activities that anticipate and mitigate the likely impact of disasters that might occur.

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What are the assistance instruments of this policy?

The emergency assistance instruments are (i) portfolio restructuring and use of loan savings, (ii) emergency assistance loans, (iii) follow up development loans, and (iv) TA support on disaster and emergency.

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Does ADB finance disaster relief and humanitarian assistance?

ADB does not provide emergency and relief financing. Rather, the policy emphasizes longer-term activities for rehabilitating high-priority physical and social infrastructure; revitalizing basic services, particularly education and health care; and jump-starting economic productivity. This includes retroactive financing of emergency and relief activities carried out by governments. During the transition phase, the policy emphasizes on partnering with specialized (relief) agencies like the UNDP, WFP, United Nations Children's Fund (UNICEF), United Nations High Commission for Refugees, International Red Cross, bilaterals and local NGOs to revitalize basic services, provide emergency medicines and immunizations, provide basic infrastructure and livelihood training, etc. Concurrently, planning and design of the longer-term reconstruction is carried out based on the premise to Build – Back – Better.

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How does ADB implement disaster and emergency projects?

Unlike UN and some bilateral donors, ADB does not implement projects itself. The state/local government departments are the executing agencies responsible for implementing the projects through their line departments, with the help of consultants, local NGOs, and affected communities. ADB monitors and administers the project, and supports the local governments with extended missions for effective and efficient implementation of the disaster recovery projects, as was done for the Gujarat and the tsunami projects.

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How have NGOs/CBOs engaged with ADB in disaster situations?

During the joint needs assessment stage (with World Bank, UN agencies and major bilaterals), extensive consultations are carried out with a range of public, private and civil society stakeholders during the damage and needs assessment mission and later by project design missions. Consultations, participation, and local coordination are important—especially in emergency preparedness and crisis response. Increased role of beneficiaries in project preparation, implementation, and maintenance of facilities is one of the key lessons from the implementation of disaster projects.

ADB also forges working relationships with partners at all levels. It plays a key role in such international bodies as the UN Economic and Social Council, Multilateral Banking Committee, and various NGO forums on emergency preparedness. NGOs, civil society, and relief and humanitarian agencies represent significant partners who help bridge the gap between relief and longer-term development programming. ADB multishareholder consultation, popular participation, and local ownership of the reconstruction and development process are essential.

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Are there any areas that might be especially favored or especially neglected?

Damage and needs assessment (DNAs) are undertaken by ADB together with other development partners. These DNAs became the basis for ADB assistance programs. Thus, areas are neither especially favored nor especially neglected.

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Of the approved assistance for countries affected by the Indian Ocean tsunami, are there projects that may not push through due to a lack of funds?

ADB stands fully committed to the implementation of approved investment projects and technical assistance. There will be no cancellations of any of the approved projects and where necessary, completion periods have been extended to ensure that funds will be fully utilized and disbursed. All contracts are expected to be awarded and all payments disbursed by end-2010 at the latest.

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What important lessons can be learned from the 2004 Indian Ocean earthquake and tsunami?

In any disaster, there are valuable lessons to learn, and the Asia-Pacific and the world at-large learnt a lot from the tragedy of December 2004. Similarly, we will all learn from the Sichuan-Wenchuan earthquake of 12 May 2008. One very important lesson is that successful disaster recovery depends on community involvement and support – Recovery is as much psychological as it is physical, and hence victims being able to come to terms with their new reality, and to learn to cope with the changed situation is considerably enhanced if they "own" the recovery process. While this approach can often make the recovery process longer (as was discovered following the 2004 earthquake and tsunami), it results in more satisfaction—this was what was discovered following the 1995 earthquake in Kobe, Japan, which instituted a comprehensive community-based recovery program that turned out to be very successful; and which was picked up and applied following the 2004 Indian Ocean disaster. An important point is to make sure the impacted community knows that recovery is a long and slow process—but they also need to know that to some extent, they can control this by deciding what mechanisms they want to put in place to determine aspects of recovery.

Another valuable lesson is to treat disasters as a learning exercise—this requires us to review and reflect on our actions, programs, procedures and policies and to think about how well they held up in light of events. A very important corollary to this, however, is not to think that the next disaster will be the same as the one just experienced—that will never happen because all disasters are different even if they are caused by the same hazard agent. What we have to learn, and what we need to get accustomed to, is to be flexible—this requires us to have generic plans rather than trying to have rigid predetermined "what" steps. And within this flexible arrangement, two important components are (a) to identify and make accountable responsible agencies for specific tasks; and (b) to make each agency accountable for communicating their programs to other agencies so that there are "no surprises" or gaps.

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Should countries have insurance for earthquakes? Who should take the risk? The insurance companies? Or should the Government set up an insurance fund (for earthquakes)?

Any disaster-prone country should consider a disaster risk management system that includes both insurance and funds set aside for disaster response and recovery. Such a system would also include measures to reduce the risk from disasters as well as to prepare for them. These four factors—risk, reduction, preparation, response and recovery—are referred to as a Comprehensive Emergency Management (CEM) approach.

Within this arrangement, countries may look into a general concept for establishing an earthquake insurance mechanism, based on some form of public-private partnership between insurers, reinsurers and government, and to tap into the risk transfer capacity of global markets to manage large-scale catastrophe risk.

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What role can the banking and insurance sectors play during reconstruction?

In the immediate term, financing will be required for the importation of capital goods and associated commodities to rebuild damaged infrastructure. The importers will be local and central government entities or contractors acting on behalf of such entities. The banking sector will provide some of the credit, but given the magnitude of the damage and amount of financing required to repair or replace infrastructure, banks may require assurances that they will be repaid. Even with government guarantees, however, some banks may require additional assurances that they will be repaid. The banks can purchase insurance either from private sources or export credit agencies for this risk. ADB can also provide domestic and foreign banks repayment guarantees.

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How much of the billions of dollars devoted to disaster-related projects, particularly the India Ocean tsunami, has been lost to corruption so far?

In the developed as well as developing world, avoiding corruption is a very challenging undertaking. But in the case of assistance to the tsunami recovery effort, a high awareness of the problem backed by concrete actions related to transparency, accountability, procedures, and capacity development has greatly minimized the loss of tsunami funds to corruption.

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What role do international consultants play in the recovery and reconstruction programs?

Often, in times of great natural disasters, one of the casualties is the local capacity to respond. Infrastructure, local leaders, and skilled individuals are lost to the disaster. And when these disasters hit remote areas, it is likely that local capacity is already rather weak. We cannot argue over the important role that the international consultant community plays in times of disaster. The skills they provide are essential to recovery efforts. Without this capacity, no amount of funds will be effective in providing recovery.

At the same time, we need to be offering space for local people, NGOs, private sector companies, and others to contribute their unique skills and know-how to recovery programs.

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Is ADB sometimes slow in responding to an emergency?

When we see such massive loss and suffering, anything short of full and immediate assistance is frustrating. But an important distinction should be made between immediate relief operations, and the longer-term rehabilitation and reconstruction operations. ADB, by its Charter, does not get involved in relief operations. Given its institutional structure and mandate, it is also not well suited to provide relief assistance. In terms of its support for rehabilitation and reconstruction in tsunami-affected countries, ADB, in fact, moved rapidly, designing and improving assistance projects worth over $500 million within four months of the disaster.

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Is the world, and the aid agency community, ready for the next emergency?

Disaster preparedness is a crucial consideration for countries in Asia and the Pacific, which is so prone to natural disasters. Aid agency can best "be ready" for the next emergency by taking proactive stance to disaster management by providing assistance to governments in establishing effective emergency preparedness system. Part of the equation is technology—instruments to record and track the occurrence of a natural disaster. Part of it is institutional. But an equally important consideration is community preparedness. Once a warning is issued, do people know the appropriate action to take? Are emergency travel routes established and are they well marked? Do people know where to go to find out more information, for example a specific radio station? Are local building codes appropriate? Has attention been paid to maintaining ecosystems such as coral reefs and mangrove forests that can serve as buffers against tropical storms?