SOE 2007 Policy Brief - Natural Disasters

Institute of Policy Studies of Sri Lanka Sri Lanka: State of the Economy 2007 Empowerment of the Poor
free download | e-version
11. Natural Disasters and Socio-Economic Security

11.1 Introduction Sri Lanka has experienced regular incidence of natural disasters such as droughts, floods and earth slips during the recent past. The December 2004 tsunami devastated coastal areas claiming nearly 40,000 lives and destroyed economic assets worth billions of rupees. Among the major impacts of natural disasters on the Sri Lankan economy are decelerations to the rate of economic growth, negative impacts on livelihoods and communities, and destruction of assets and infrastructure. The poor, who by definition have less assets and limited opportunities to cope with risks, inevitably are more vulnerable to natural disasters. Particularly, informal sector workers such as farmers, fishermen, unskilled manual workers and low paid self employees are more susceptible to such catastrophes due to the insecure nature of their livelihoods and employments. As revealed by recent scientific reports on climate change, the impact of natural disasters on the economy and livelihoods of the poor could increase at an alarming rate in the future. It seems that the word natural is misleading to explain droughts, floods and landslides since recent increase in such disasters are now being recognized by scientists as outcomes of unsustainable human activities, such as large scale emissions of green house gases (GHG), deforestation, unplanned land use patterns, etc. Sri Lanka as a tropical island, is more vulnerable to climate change impacts such as sea level rise, prolonged dry periods, changes in rainfall pattern, alterations in bio-diversity distributions, and increase in extreme weather events such as tropical cyclones. A rise in sea levels may pose adverse impacts on communities living along the coast. In practical terms, predicted impacts are likely to boost the incidence of natural hazards overall by an alarming proportion. Meeting such a threatening increase in hazards could be costly for developing countries like Sri Lanka. Therefore, essential steps need to be taken to adapt to the challenge of global climate change before it becomes too late. This policy brief examines issues of socio-economic security in Sri Lanka in the context of natural disasters. 11.2 Reducing Physical Vulnerability through Disaster Management Sri Lanka has seen an increase in the frequency of natural disasters in recent years, with significant implication given the numbers of households that tend to be affected. Owing
For a full version of Sri Lanka: State of the Economy 2007 and other publications of the IPS contact publications@ips.lk , or visit www.ips.lk
148
to the substantial losses to human lives as well as to the economy, it is necessary to take appropriate measures to minimize the effects of natural disasters. Broadly, measures to minimize effects of natural disasters take two forms: (i) measures taken to reduce the physical vulnerability to disasters; and (ii) measures to provide socioeconomic protection for vulnerable groups to cope with risks associated with natural disasters (Figure 11.1). The latter can be considered also as part of broader poverty alleviation strategies adopted to reduce impoverishment resulting from the negative shocks of such disasters.
Figure 11.1: Disaster Management Strategies

Disaster management strategies
Strategies to reduce physical vulnerability
Provision of socio-economic security
Government interventions
Market-based interventions
Civil society interventions
Reducing physical vulnerability has a major role to play in minimizing losses caused by natural disasters. Such initiatives consist of preventive measures, taking appropriate mitigation measures and ensuring that people are prepared for disasters. In the Sri Lankan context, disaster management gained much public attention only after the 2004 tsunami. However, it is important to pay attention to other disasters too, which are more frequent in occurrence. The Road Map for Disaster Risk Management in Sri Lanka prepared by the Disaster Management Centre (DMC) highlights the need for a disaster policy, institutional development, risk assessment, planning, disaster mitigation, community involvement, training and education and public awareness programmes.
149
Currently, a number of government organizations are working on disaster management activities of the country. Duplication of roles and responsibilities of such agencies can be observed as a major drawback. The major official responsibility for disaster management as specified by the Disaster Management Act, No. 13 of 2005 lies with the Disaster Management Centre (DMC) of the Ministry of Resettlement and Disaster Relief Services. The National Disaster Management Council, chaired by the President serves as the umbrella organization responsible for providing substantive direction to implement disaster management activities in the country. However, agencies such as the Natural Disaster Management Centre (NDMC), Rehabilitation and Development Agency (RADA) and Department of Social Services also play overlapping roles. In addition, organizations such as the National Building Research Organization (NBRO), Land Reclamation and Development Corporation (LRDC) and Meteorological Department have specific technical roles to play in research, planning, infrastructure development and maintenance which are of great importance in proper management of natural disasters. Not only the central government but the local authorities also have to play a vital role in disaster incidents, since local governments are the most knowledgeable of the strengths and capacities of communities in coping with disaster risks as well as their needs after a disaster. Lack of coordination between central and local governments still remains as a barrier for proper implementation of disaster management activities. Despite the fact that local governments have a fundamental role to play in disaster situations, their capacities and skills in doing so, still tends to subsist below the required levels. Efficient management of disasters essentially implies strong coordination among agencies not only within the government, but also amongst private, non-governmental, and community actors as well. However, the current level of coordination among even government agencies seems very low and this invariably leads to various inefficiencies. It is vital to be alert on emerging catastrophes that may result through so called inefficiencies in responsible agencies. The experience of recent floods in the Colombo city provides recent evidence of the absence of an extensive disaster mitigation network in place (see Box 11.1).
150
Box 11.1: Rain Related Congestions/Disasters

The Colombo city experienced torrential rains on 3 May 2007, creating flooded conditions in many urban localities. The situation caused enormous difficulties to the public and the business community in the city. The flooded roads and streets in Colombo restricted the mobility of vehicles and people, resulting in traffic congestion that undoubtedly led to significant productivity losses. The incident was not restricted to Colombo alone. The situation resulted in a total of 17 fatalities with more than 40,000 families affected in the Western Province and Galle district. This was not the first incidence of this kind that the Colombo city has experienced. In 1992, the city was affected by floods with more or less the same level of intensity. In addition, the city experiences near flood situations during heavy occasional rains from time to time. Repeated occurrence of such kind in the capital of the country indicates a major failure in preparedness to face the challenge of natural hazards. The reasons for such disasters can be accrued to multiple factors. In the first instance, reduced detention capacity of flood water in the adjoining marshy lands due to unplanned developments has led to a significant increase in the volume of rain water accumulating on the roads. Poor implementation of waste disposal activities by the Colombo Municipal Council (CMC) has caused blocking of drainage canals during the rainy season. Additionally, poor maintenance, lack of public awareness and lack of investments on improvement of drainage have caused these problems to be exacerbated. The fact that expected results have not been generated by the Greater Colombo Flood Control and Environment project (phase I & II) should be of great concern. The situation calls for urgent action to rehabilitate the road side drainage canal system; enhancement of flood detention capacity provided by marshy, swampy and low lying lands; assessment of flood retention capacities in lands released under conditional development approvals; and implementation of cost-effective measures to ensure quick drainage of rain water out of the city. Additionally, the CMC has to carry out its roles, particularly in speedy and proper disposal of waste from the city, preventing the blocking of the drainage system to avoid this kind of consequences in the future.
The necessity of having an efficient early warning system has increasingly been highlighted. Currently, Sri Lanka possesses a basic early warning system in place, but it needs to be further improved in order to effectively disseminate warnings of an imminent disaster. At present, the system is capable of disseminating signals up to district level, but communication to subsequent levels (DS, GN) have still not been well developed. This should be treated as a priority in the countrys ongoing disaster management activities.
151
In terms of disaster preparedness, progress remains limited. For example, a survey carried out by the IPS in July 2006 of 620 households affected by the December 2004 tsunami indicated that only 14 per cent of the households have a good knowledge in responding to a future tsunami.1 According to the survey results, the level of disaster preparedness is still is not substantial; as a percentages of households who have identified safe places, practised tsunami drills and purchased insurance are 51, 6 and 4 per cent, respectively. 11.3 Provision of Socio-economic Security for Vulnerable Groups Socio-economic security can be delivered in many ways to reduce the impact of external shocks. Such measures may include a range of activities starting from providing immediate relief to disaster victims in the short-term to long-term assistance for livelihood recovery. The key actors include the government, private sector, nongovernmental organizations (NGOs) and community-based organizations (CBOs). Informal sources of security provided by communities and individuals also play an important role. The socio-economic measures in managing disasters normally take three forms, including preventative, mitigation and coping strategies. Preventive and mitigation strategies are taken before a disaster occur and they are useful, respectively, in reducing the risks of disasters and potential impacts of disasters once they have occurred. The overall objective to coping strategies is to minimize the probability of falling into poverty or deepening existing poverty condition of a particular household or a community. 11.3.1 Disaster Relief Activities by the State The government has been the main provider of socio-economic security such as disaster relief and social assistance programmes in reducing the vulnerability from natural disasters. Short term programmes are launched by the National Disaster Management Centre (NDMC) to provide immediate relief for disaster victims throughout the country. The provisions are available for widespread disasters such as floods, droughts, cyclones, landslides, inundation by sea as well as for casual disasters such as damages to crops by wild elephants, minor damages to property and fire. In widespread disaster conditions, affected needy people are provided with cooked meals or dry rations determined on the basis of family size. Other than urgent measures such as temporary accommodation and meals for displaced victims, relief is usually provided on a selective basis determined on
1
Based on the households survey conducted by IPS in tsunami affected Ampara, Batticaloa, Galle, Hambantota, Matara and Trincomalee districts (see www.ips.lk for details).
152
an eligibility criterion based on income. Among the expenses covered under such relief are funeral expenses, medical treatment, compensation for damaged houses, recovery payments for small scale self-employment enterprises, compensation for crop damages and provision of kitchen utensils, etc. The NDMC has been allocated with a significant budget for assisting affected households in different areas of the country during the recent past. The amounts allocated for floods in 2003 and drought in 2004 were Rs. 49 million and Rs. 477 million, respectively. However, there is a perception among communities that distribution of relief in some areas is not well-coordinated and targeting problems exist. In certain occasions needy people are not given relief, while non-eligible persons are benefited. 11.3.2 Civil Society and Community Initiatives Both local and international NGOs and CBOs provide social and economic assistance to help disaster victims. Some NGOs have come forward to initiate disaster mitigation activities, disaster preparedness programmes, rehabilitation projects, etc., in some areas of the country. On certain occasions NGOs have provided microfinance for the poor to assist in the recovery process of disaster victims. In addition, communities and households themselves act as effective socio-economic security providers in disaster situations to meet immediate requirements of the affected families. Therefore, a high degree of social cohesion can be considered as a strength in fighting against disasters. Sri Lankan social cohesiveness in helping disaster victims was commended by the United Nations Tsunami Recovery Envoy where it was noted that Sri Lankas tsunami victims were able to recover faster than those who were affected by the hurricane Katrina in the US due to extensive informal security mechanism of that nature. Both civil society organizations and community initiatives have to play an important role in providing social security for disaster victims. Their strength lies in the ability to reach and address issues that are difficult for the government or other formal organizations. Most importantly, the community efforts might be helpful in assisting the victims to at least cover their basic needs, until formal institutions come forward to provide support. Such CBOs are knowledgeable about vulnerable groups and their locations, and are better placed to help victims than those from outside institutions. Thus, enhancing the effectiveness of such interventions has to be prioritized. It has been identified that the effectiveness of civil and community initiatives can also be improved by increasing the
153
coordination with other parties working in such activities (i.e., the government and the private sector). For instance, in the tsunami rehabilitation effort, it has been reported that communities in certain areas have benefited from relief and economic support (e.g., boats for fishermen) from a number of NGOs while in other areas people have not received any kind of support. The situation is more or less the same in terms of disaster preparedness initiatives. For instance, tsunami mock drills have been conducted by several agencies in the same area, whilst some other areas have not received any kind of training to save themselves from future disasters. Further, there is a great potential for making use of such social networks to reduce the physical vulnerability to disasters by preparing households for disasters, increasing public awareness, and implementing early warning systems in an effective manner. 11.4 Market-based Interventions for Social Security Evidence suggests that people tend to obtain micro credit from informal lenders to recover after disasters, rather than going to formal sources. The inability of formal lenders to provide assistance has been one of the major drawbacks preventing marketbased instruments being effectively utilized in social security measures in developing countries. This is mainly because the present system has not recognized the actual needs of the vulnerable groups, and more specifically, such measures are not demand-driven. Further, formal lenders face high transaction costs in assessing credit worthiness compared to informal lenders, and taking loans from the formal sector can involve strict procedures and that is time consuming. Therefore, quite often, the state has had to intervene in providing such assistance. However, recent improvements in micro credit and social insurance strategies provide some hope in this connection. Insurance is the foremost market based instrument for the management of risks. It can be used to provide economic security for the vulnerable groups against external shocks including natural disasters. However, disaster insurance is recognized as being distinct from other types of disasters owing to several factors. Disasters could affect the risk pool at the same time and can cause multiple losses, and it is not easy to estimate the disaster risks. Thus, problems of moral hazard and self selection are often associated with disaster insurance. In Sri Lanka, both the government and private sector play the role of insurance providers. Crop and livestock insurance, insurance for wild elephant attacks and old age insurance for informal sector workers provide some examples for this.
154
11.4.1 Crop Insurance Schemes Agriculture and Agrarian Insurance Board (AAIB) was the first institution to initiate a programme to provide insurance against crop damages in Sri Lanka. Separate policies have been introduced to provide coverage for paddy, chilli, sugar cane, big onion, tobacco, betel, fruits, cashew, coconut, potatoes, ornamental plants, etc. Protection is provided against losses caused by drought, shortage of water, excess water, floods, pest attacks, disease outbreaks, and wild animal attacks. Coverage is based on the type of the crop, mode of irrigation (rain-fed, large irrigation schemes, small irrigation schemes) and the degree of risk to a particular natural disaster. The insured has to pay a certain percentage as the premium to the board, per season and the percentage is dependent on the magnitude of the risk concerned. Current rates are 5, 6 and 8 per cent for low risk, medium risk and high risk areas, respectively. Schemes are driven in association with the agricultural credit obtained by farmers from various state and private banks. Initially, the AAIB was the only provider of crop insurance. Later on, the private sector also entered the picture by introducing a similar kind of insurance programme, where having the crops insured is taken as mandatory to apply for a loan. So far, only one company has entered the market. In the case of private schemes, no groundwork is being done to encourage the farmers to enrol in the scheme. Despite the fact that the AAIB promoted the scheme through field work, so far both the government and private sector provides coverage for only around 5 per cent of the total paddy area cultivated annually on average. Low enrolment ratio can be a result of a number of reasons such as poor awareness, as well as inability and reluctance of farmers to pay premiums, etc. Due to the difficulties resulting from the low rate of enrolment, the AAIB does not offer insurance for certain crops cultivated under rain-fed systems and for those which are highly susceptible to pest and disease attacks. To overcome this situation AAIB and private sector actors have to adopt innovative methods. Successful and innovative market based approaches have been introduced in other developing countries (e.g., SEWA in India, Grameen in Bangladesh) in a number of situations. Thus, priority should be given to reform the present schemes, moving out from traditional lines to adopt effective and client-friendly approaches which can be implemented with community support.
155
Figure 11.2: Percentage Area of Paddy Extent Covered by Crop Insurance Schemes
7
% Extent
4
0.3 0.6 1.7
4.0 Privat e sect or 2.5 2.0 AAIB
2
3.1 2.8 1.9
1.8
1.4
1.9 1.0 1.3
2.1
1.8
0 1998 1999 2000 2001 2002 2003 2004 2005
Year
Source: The AAIB and private sector.
11.4.2 Insurance for Wild Elephant Attacks Very recently, Sri Lanka introduced an insurance policy to provide coverage against losses caused by the human-elephant conflict, which has been a serious problem in certain parts of the country. Offered by a private insurance company, the policy aims at helping communities that are at the risk from wild elephant attacks, as well as conserving elephants and safeguarding their natural habitats. The scheme provides benefits in the case of death or permanent disablement of the insured, death or permanent disablement of the spouse, damages to crops insured and damages to insured homes. Twenty per cent of profits of the scheme are intended for elephant conservation activities. 11.4.3 Old-age Insurance Schemes for Informal Sector Workers Contributory old-age insurance schemes for the informal sector workers such as farmers, fishermen and self-employed workers have also been introduced in Sri Lanka to provide economic security in their old age. This can be considered as another type of social protection measure designed to help vulnerable sections of the society against livelihood risks. The schemes include death gratuities for the insured, disablement benefits and widow/widower pension schemes. In 2002, an estimated 39 per cent of agriculture
156
operators reported in the Census of Agriculture were covered by the scheme. Similarly, according to Ministry of Fisheries estimates, 30 per cent of total fishermen were said to be covered as well. However, the level of outreach of such schemes is constrained by unavailability of regular income to pay monthly contributions to the schemes and lack of knowledge among the target group about their benefits. Besides, financial viability has been a an issue for the scheme due to the high rate of default. 11.5 Conclusion and Policy Suggestions Gathering momentum from recent developments in the international arena, the natural disaster management system in Sri Lanka is struggling to evolve gradually from its former role of a relief distribution mechanism to a scientific hazard management system. Despite recent improvements, the system is still largely biased towards distribution of relief for victims rather than taking appropriate measures to minimize damage and vulnerability through measures for prevention, mitigation and planning. The recent instance of the tsunami has brought the system under close public attention. Developments on global climate change has necessitated that countries be on alert on all types of natural hazards, assigning a significant role towards disaster management policy in the future. In this backdrop, there are a few mandatory steps that are essential to transform the system into a more effective one. Foremost among them is strengthening the coordination between organizations that are involved in disaster management activities in the country. Even the coordination that exists between different government organizations can be considered as minimal, whereas effective disaster management demands coordination among all stakeholders, including the government, private sector and civil society organizations. Thus, establishing a proper mechanism for efficient coordination among disaster management organizations is an essential pre-requisite to strengthen the system. Secondly, more emphasis should be directed at scientific aspects of disaster management that deals with reducing the physical vulnerability to disasters rather than distribution of relief. Particularly, research and technical development and planning aspects should be given high priority due to the complex nature of disaster issues that can be expected in the future. For instance, adaptation to pending threats of climate change could create
157
difficulties unless properly planned. Given the scale and nature of pending hazards, unplanned, reactive approach would be a costly choice. Thirdly, although prevention is the cheapest option for managing disasters, the role of socio-economic security also cannot be taken lightly at the time of, and after disaster incidents. Disaster relief, insurance and micro-credit facilities have a significant role to play in the recovery of victimized groups in the short, medium and long-term horizons. Thus, a need has arisen for strengthening the present system of socio-economic security by extending the coverage of present schemes and programmes, promoting respective schemes among target groups effectively, and making the systems financially more viable. CBOs and self-help groups can play an active role in bringing such programmes to the door-step of vulnerable groups to increase their involvement. Finally, increasing the awareness of the public regarding all types of disaster management measures is necessary to improve the effectiveness of the system. Currently, the public is mostly unaware of even the existing system. Successful disaster management is essentially an exercise of strong public participation. Therefore, an effective programme should be carried out to inform and train the public to face disaster situations using all possible channels. Experiences in disaster prone countries show that the preparedness of the public to disasters is more effective in reducing damage to human lives and property than anything else.
158

SOE 2007 Policy Brief - Natural Disasters

Încărcat de

Informații document

Descriere originală:

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

SOE 2007 Policy Brief - Natural Disasters

Încărcat de

Drepturi de autor:

Formate disponibile

Institute of Policy Studies of Sri Lanka Sri Lanka: State of the Economy 2007 Empowerment of the Poor

free download | e-version

11. Natural Disasters and Socio-Economic Security

free download | e-version

Figure 11.1: Disaster Management Strategies

Strategies to reduce physical vulnerability

Provision of socio-economic security

Civil society interventions

free download | e-version

free download | e-version

Box 11.1: Rain Related Congestions/Disasters

free download | e-version

free download | e-version

free download | e-version

free download | e-version

free download | e-version

4.0 Privat e sect or 2.5 2.0 AAIB

1.9 1.0 1.3

0 1998 1999 2000 2001 2002 2003 2004 2005

Source: The AAIB and private sector.

free download | e-version

free download | e-version

S-ar putea să vă placă și