Earthquake Recovery

Presented by Wifandy Purba April 8, 2013

Under guidance of Dr. Pennung Warnitchai

Objective
Understand the impact of EQ to some livelihood

aspects (agriculture, industry, tourism)

Understand some key points for planning

economy recovery measures

Covered Topics
Introduction
Sectoral Recovery Plans Loss Estimation Repair Economic Damage Case Study Yogyakarta 2006

What is RECOVERY
The restoration, and improvement where appropriate, of

facilities, livelihoods and living conditions of disasteraffected communities, including efforts to reduce disaster risk factors (UNISDR, 2009)

Classification
Immediate Relief Period Rehabilitation Period Reconstruction Period

http://pre-drp.org

How to Plan a Succesful RECOVERY

Challenges

Opportunities

Reconstruction is Planned Sectorally

Sectors
Housing

Loss Inventory
Number of dwellings unrepairable. Number of dwelling in need of repair. Number of people homeless Damage to agricultural building stock; loss of livestock; damage to food processing plants, food and produce storage Shops, business premises, warehouses, fuel stations, food distribution, transport and supplies, destruction of stock, lay off of employees.

Organization Responsible
Ministry of Housing; National Institute of Building Engineers. Dept. of Agriculture; Food and Farmig Org; Private Owners; Consumers Org. Dept. of Trade and Industry; Private Companies; Trade and Labour Unions

Agriculture

Retail and Service Industry

Why Coordination?
Interdependency
Balance budget requirements Logistical & practical Coord. Allocation of material and equipments PRIORITIES

Accurate Information on Loss is Prerequisite for Recovery Planning

How?
Confederations of each Industry: arrange each

industry, commercial sectors, trade unions to report loss on their own sectors Rapid vs Detailed Loss Assessment
Why?
Time saving Validation I am the owner of my house

What should be included in Loss Estimation?

Loss in value and numbers of units
Loss in proportion of total assets Insurance coverage and shortfall The effect on economic production sectors Required resources (to pre-disaster condition) Effect to employees Effect to other economic sector

YOGYAKARTA EQ 2006

Preliminary Damage and Loss Assessment, Bappenas, 2006

Not All Earthquakes are Harmful to Long-term Economy

Christchurch EQ 2011 In June 2012, total retail trade increase 2.1% (vs 2011), 4.5% (vs 2010) - http://www.stats.govt.nz
http://www.rbnz.govt.nz/research/bulletin/2 http://www.recoveryplatform.org/ 012_2016/2012sep75_3parkersteenkam p.pdf

Chain of Suffering

Earthquake

Lost income

Less Spending

Less Trade

Declining Economic growth

Economic production

Rebuilding House

vs

Restoring Income

Regenerate Jobs and

income Reestablish lifestyles Repair social linkages

Recover Economies
Agricultural Economies Industrial Economies Small business and retail sectors Tourism and Leisure

Impact
Can an earthquake damage my potato?
Irrigation System Dams, water pipelines Animal sheds Emergency Periods Road, transport access Food processing factories Nearby town Kalamata EQ 1986

Key Points for Planning

Ensure continous supply of production to outside

AND revitalise livelihood of farmer in affected area. How? Market Profile

What is normally produced How much is sold How much is consumed Where is the market Supply and distribution network

How is EQ affecting the market process

Continue supply to outside region Revitalise livelihood in the affected area

Recovery Measures 1
Protecting Farmers resources

www.fao.org

Recovery Measures 2
Targeting Marginal Farmers Weakest member of the community Difficult access to aid

www.talkvietnam.com

Recovery Measure 3
Opportunities to change Improvements in farming methods Technology, new or additional equipment and activities such as bee-keeping, dairy processing, craft production Focus on lighter reform vs radical reforms Minor land reforms which is usually not possible

Industrial Economies are..

Complex
Many

interdependencies Many ownership types Big consequences well beyond EQ affected areas

http://food-ag.mit.edu

Impact
Interdependency Large Impact

Large Companies vs Small

Companies

www.axtin.com

Key Points on Planning

Coordination between government, owners of

industry, managers, and reps of workforce

Prioritizing recovery of key industries i.e.

construction materials, cement sectors, food processing plants, etc.

Recovery Measure 1: Economic Development Zones

Making earthquake damaged industrial areas into

temporary EDZs has been proven effective

State provides relocation grants, loans, and tax

incentives to encourage recovery

Publicize planned programs to restore business

confidence

Recovery Measure 2: Private Investment Opportunity

Companies need to raise capital for reconstruction

which is attractive for investors

Best use of available finances possibilities for early

involvement of public and private financing agencies

Recovery Measure 3: Private and Public Reconstruction

Need sharing of resources Prioritizing of activities and sectors

Rebuilding House

vs

Restoring Income

Recovery Measure 4: Maintaining Workforce

Chain of suffering
Loss of Workforce vs Loss of

Factory
Rotate to other branch Assisting Reconstruction PPO Gov. Support

Recovery Measure 5: Phasing Recovery

Mechanical to Manual

Production Improvisation

Source: JRF Report

Impact
Supply the population with day

to day need Supply the industry with goods and services Main problem: Premise Damage Access Damage

Keypoints on Planning
Government must understand needs and scale

recognise the priority Restore small business to offer daily necessities (food, clothing, service) to affected community Involving affected community in small business Train community for better management

Recovery Measure 1: Provision of temporary premises

Proportion of temporary shelter for shops, service

industry Make available retail space at lower rent

www.foto.detik.com

Recovery Measure 2: Reestablishing trading contacts

Rapid compilation of trading directory Distribution

www.rainbowsilver.com

IMPACT
What is it? What makes it unique? HQ of many corporations High rise building National, regional.

worldwide trade Vitally important

http://majamoritz.photoshelter.com

Recovery Measures
Reconnection of Urban Services Re-establishing business confidence

http://eqecat.com

Impact
What is it? What makes it unique? People visit and pass through Hotels Service Requires confidence

Source: IRP Status Report

Recovery Measures
Turning Reconstruction into tourist attraction Use temporary housing for tourist Use Publicity of EQ with right approach

http://www.dftw.org/

Profile
3.1 Million in population Major income from trade, tourism, agriculture,

livestock, fisheries (36%)

CASE STUDY

5.9 R,; 5,782 died; 50,000 injured; 600,000 displaced

Direct Economy Loss $ 3,134 M

Agricultural Economy

The improved irrigation channel helps us greatly. It easily supplies farmers with sufficient water in the third growing season (the last four months of the year)a time when water is usually hard to find. That means our productivity, and our income, will definitely increase. S.T. Waluyo, farmer

Tourism
New Tourism Attraction : - Retribution fee - Home stay package -Home stay & traditional performances

Tourism
Attracting funds and experts from UNESCO, donors, private corporations, universities in reconstructing heritage area post earthquake.

http://nurvirtamonarizqa.blogspot.com http://www.id.emb-japan.go.jp/oda/id/index.htm

Industry Economy
Community empowerment, especially for women did by NGOs. They were trained to make handy craft, diversification of agricultural products and other skills they never learned as villagers. Now they able to gain family income.

http://www.icbc-indonesia.org