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ABOUT THIS ISSUEINTRODUCTION

Active Risk Transfer andInsurance InitiativesThe world economy faces

economic shocks caused byfloods, drought, cyclone, and otherdisasters repeatedly. The loss anddamage caused by these disasters isconstantly increasing and becomingmore severe. The severest impact ison the poor, and among them thewomen. So how best to protect thesewomen, the poor, the citizens ofdisaster affected countries? One wayto do so is to pool the risk andtransfer it with insurance andmitigation measures. And risktransfer or insurance is not on theagenda of many disaster vulnerablecountries. The following is a list ofsome current risk transfer andinsurance initiatives to reflect interms of what can make worldeconomy safer from disaster risks?1. Swiss SECO for South East and

Central Europe CatastropheRisk Insurance Facility1: Theobjective of the Swiss Seco forSouth East and Central EuropeCatastrophe Risk InsuranceFacility Trust Fund Project is tohelp provide a bettermechanism for dealing withcatastrophic risks in theSoutheast and Central Europeregion by supporting theestablishment of theCatastrophe Risk InsuranceFacility (CRIF), which will aimat increasing the number ofindividuals and small andmedium enterprises insured bythe private insurance market forcatastrophic risks in the saidregion. The additional technicalpreparatory work is requiredfor the launch of innovativecatastrophe insurance productsin the four countries ofSoutheast Europe (Serbia,

Macedonia, Albania, Bosnia andHerzegovina) currently coveredby the grant, which may includeMontenegro at a later stage. Themain elements of this workinclude development of riskmodels for weather-relatedhazards, regulatory work insupport of new products, andacquisition of weather data andweather stations.

2. Nicaragua Catastrophe RiskInsurance Project2: TheHonduras and NicaraguaCatastrophe Risk InsuranceProject for Central Americaobjective is to enable the accessof Honduras and Nicaragua toefficient sovereign riskinsurance associated withtropical cyclones, earthquakes,and or excess rainfall. This willbe achieved by financing theentrance fee and insurancepremium for Honduras forseven years and Nicaragua forfour years in a regional initiativelinking current CaribbeanCommunity (CARICOM)members of the CaribbeanCatastrophe Risk InsuranceFacility (CCRIF) together withCouncil of Ministers of Financeof Central America and theDominican Republic (COSEFIN)countries. To extend the timelineof the proposed Project,individual countries may chooseto pay a portion of the annualpremium, thereby allowingremaining project finance to beused towards additional yearsof insurance premiumpayments. The project consistsof two components: (1) paymentof the entrance fee to the CCRIFfor Honduras and Nicaragua,

1 http://projects.worldbank.org/P117069/swiss-seco-south-east-central-europe-catastrophe-risk-insurance-facility?lang=en

2 http://projects.worldbank.org/P149895?lang=en

It is a well-established fact thatdisasters and extreme events

ravage assets and disruptlivelihoods causing widespreadloss and damage to the worldeconomy. According to SwissRe,natural and man-made disasterscaused US $ 306 billion ofeconomic damage across theworld in 2017. These disasters notonly destroy tangible assets likebuildings and equipment but alsohuman capital to substantiallyreduce production capacity andefficiency. Consequently, it isimportant to invest in disaster riskreduction activities to mitigate theimpact of disasters and extremeevents on the global economicsystem.

This issue of Southasiadisasters.netis titled 'Disaster Risk Reduction inWorld Economy' and focuses on theimportant theme of loss anddamage incurred by assets due todisasters. This issue also providesa compendium of best practicesand initiatives such as country-wide risk transfer programmesthat provide a coping mechanismto the respective economies whenfaced with massive loss anddamage from disasters. Anotherinteresting theme explored in thisissue is the unfair structure ofclimate finance that can potentiallykeep developing countries in aperpetual debt trap.

Increasing levels of globalizationalso imply greater risks forglobalized supply chains. Anextreme event in one part of theworld can disrupt an entire globalvalue chain causing a crisis inanother part of the world. Theonus is now on world leaders totake up resilience buildingmeasures for protecting the worldeconomy from the onslaught ofrepeated disasters.

– Kshitij Gupta

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this component is to assistHonduras and Nicaragua to jointhe CCRIF by financing theirentrance fees; and (2) paymentof annual insurance premium tothe CCRIF for Honduras andNicaragua, this component is toassist Honduras and Nicaraguato purchase the catastropheinsurance coverage offered bythe CCRIF for seven years forHonduras and four years forNicaragua.

3. Central America and CaribbeanCatastrophe Risk InsuranceProject3: The objective of theCentral America and CaribbeanCatastrophe Risk InsuranceProject for Latin America is toimprove affordability of highquality sovereign catastropherisk transfer associated withearthquakes and climate-relatedevents for CCRIF ParticipatingCountries. There are threecomponents to the project, thefirst component being financeparametric earthquake riskinsurance for Council ofMinisters of Finance of CentralAmerica and the DominicanRepublic (COSEFIN)Participating Countries. Thiscomponent will finance thefollowing activities (until donorcontributions to part one ofRecipient-Executed activities ofthe MDTF have been exhausted):(a) payment of ReinsurancePremia and/or Swap Premia tocover part of the earthquake riskof COSEFIN participatingcountries insured by therecipient; and, (b) payment toCOSEFIN ParticipatingCountries of Insurance Payoutsnot covered by the reinsurancein the event an earthquakeoccurs, and such occurrenceconstitutes an Insured Event.The second component is thefinance parametric climate riskinsurance for COSEFINparticipating countries.Component two will enable theCCRIF to provide tropical

cyclone (hazards related to windspeed and storm surge) and/orexcess rainfall coverage toCOSEFIN members as ameasure to adapt to climatechange. Finally, the thirdcomponent is the financeparametric climate riskinsurance for CaribbeanCommunity (CARICOM)participating countries.Component three will enablethe CCRIF to provide excessrainfall coverage to CARICOMmember countries as a measureto better adapt to climatechange.

4. Kazakhstan: Southeast Europeand Central Asia CatastropheRisk Insurance Facility4: Thedevelopment objective of theSoutheast Europe and CentralAsia (SEECA) Catastrophe RiskInsurance Facility (CRIF) Projectfor Kazakhstan is to assistKazakhstan with developing amodern catastrophe insurancemarket infrastructure that willsupport the launch of affordable,innovative catastropheinsurance products covering therisks of weather extremes. Theproject component, SEECA CRIFis a catastrophe and weather-risk insurance program toaddress the problem ofundeveloped catastropheinsurance markets inparticipating countries. EuropaReinsurance Facility Limited(Europa Re), a government-owned catastrophe reinsurancecompany incorporated underSwiss Law, will act as theimplementation agency. In thecase of the SEECA CRIF programfor Kazakhstan, the projectfunding of United States (U.S.)5.0 million dollars will be usedfor procuring insurance servicesand systems that will: (i) pavethe way for the successfullaunch of innovative

compulsory and optionalclimate insurance productsdeveloped under the programfor local insurance companies;and (ii) support thedevelopment of a sustainableinsurance framework for theagricultural sector throughdevelopment of innovativeinsurance solutions and moderntechnologies.

5. Bangladesh Insurance SectorDevelopment Project5: Thedevelopment objective of theInsurance Sector DevelopmentProject for Bangladesh is tostrengthen the institutionalcapacity of the regulator andstate owned insurancecorporations and increase thecoverage of insurance inBangladesh. The projectcomprises of three components.The first component aims atstrengthening the capacity ofinsurance development andregulatory authority (IDRA) toregulate and supervise theinsurance as well as thereinsurance markets with thesupport of Bangladesh InsuranceAcademy (BIA). It consists oftwo sub-components: (i)strengthening the capacity of theregulator IDRA; and (ii)strengthening the capacity ofBIA. The second component,modernization, strengthening,and increasing the efficiency ofthe state-owned insurancecorporation's objective is toassist the two state-ownedinsurance corporations, JibanBima Corporation (JBC) andShadharan Bima Corporation(SBC) improve their systemsand business practices. The thirdcomponent, projectimplementation, management,and monitoring will helpdevelop a strong monitoringand evaluation (M and E) systemto be used by the project

3 http://projects.worldbank.org/P149670?lang=en4 http://projects.worldbank.org/P152230?lang=en5 http://projects.worldbank.org/P156823?lang=en

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implementation unit (PIU) atIDRA and other stakeholders toassess progress onimplementation.

6. Philippines LaunchesInnovative Insurance Programto Boost Natural Disaster RiskManagement6: A newcatastrophe risk insuranceprogram to help the Philippinesbetter respond to losses fromclimate and disaster risks waslaunched in 2017 by theGovernment of the Philippines,supported by the World Bank(IBRD, International Bank forReconstruction andDevelopment) and the U.K.Department for InternationalDevelopment. The programprovides the Philippine pesoequivalent of US$206 million incoverage against losses frommajor typhoons andearthquakes to nationalgovernment assets, and to 25participating provinces againstlosses from major typhoons.Insurance pay-outs are madewhen pre-defined parametrictriggers are met.

The above six risk transfer andinsurance initiatives are examples ofthe range of initiatives that areunder way from which ideas andactions can be picked up to make theworld economy, but moreimportantly the poor and womencitizens who participate in the worldeconomy, more safe.

We need to go deeper and wider inthese and similar initiatives.

Such initiatives must be deepened infour key ways. One, these initiativeshave to demonstrate that they arepromoting justice and equality intheir work and ways of working toreach the last vulnerable individual.Two, these initiatives have to directlyfocus on women's right to work andsocial protection. Third, theinitiatives have to balance theprotection to economic activitieswith protection to ecologicalprocesses and natural resources. Andlast, fourth, the transfer of risk mustbe positive and lasting.

The above initiatives have to bewider and similar more risk transfer

initiatives have to come up keepingin mind the following institutionaland governance aspects. One, theinitiatives must be driven by thedemand, real or latent, of the victimsand at risk citizens. Two, theseinitiatives must build, and build onstrong and diverse institutionalpartnerships at many levels andacross sectors. Three, these initiativesmust aim at not replacing orcomprising loss and damage but infact aiming at reducing risk andbuilding resilience. And four, theseinitiatives be built into open andinclusive organisations orstructures.

It is possible for the world economyto face economic shocks caused byfloods, droughts, cyclones, and otherdisasters with the help of risktransfer and insurance. And theongoing initiatives, as enlistedabove, and their growth and spreadas described above, can help inbuilding the resilience of the worldeconomy to such extreme events andshocks.

– Mihir R. Bhatt

DRR AND LIVELIHOOD

Livelihood After Disaster: Planning in FloodAffected Kerala

After the recent floods thatravaged it, the Indian state of

Kerala is leading sub-national effortsto re-build a wide range oflivelihoods. These efforts offerlessons to the world economy whenfaced with such emergencies andeconomic shocks.

In post-disaster situations, it isdifficult to estimate the loss anddamage suffered by the livelihoodsof citizens. This is true for disasters

in any part of the world. It is evenmore difficult to re-build thebusinesses and restore livelihoodsthat have been disrupted bydisasters. Roads and bridges are easyto build but not lost jobs or business.

A two day conference on LivelihoodDevelopment Package for Keralawas organised by the State PlanningBoard, Government of Kerala inThiruvananthapuram, Kerala onNovember 1-2, 2018.

The All India Disaster MitigationInstitute (AIDMI) was invited toshare its national and regional workon livelihood recovery since 2001Gujarat earthquake. AIDMIsuggested randomized control trialsfor monitoring livelihood recoveryfrom the relief stage to long termrecovery stage; more direct focus oncitizen, aid, and socio-economicoverlap processes during recovery;and far better use of Kerala'sdemocratic local governance

6 http://www.worldbank.org/en/news/press-release/2017/08/15/philippines-launches-innovative-insurance-program-to-boost-natural-disaster-risk-management

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structures and processes. The impactof humanitarian actions must bepositive. AIDMI also suggested howbuilding, design and constructionactivities can be a vehicle of morejobs and employment in addition torebuilding assets. AIDMI suggestedongoing third party reality check ofhow the livelihood recovery is infact on the ground progressing andnurturing equality?

Discussions were vivid and vibrant.Dr. Vishwas Mehta, IAS, AdditionalChief Secretary, Planning &Economic Affairs Department,pointed out the need to set thedomestic livelihood recovery needsinto state planning process keepingin mind the global and nationallabour economic trends. Livelihoodscannot be treated like before thefloods in local economy. Re-imagining Kerala and its economyis overdue and the floods offer anopportunity to do so in the fields ofeducation, poverty, humandevelopment indices, investing inhuman capital, self-employment,wage employment, as well as therole of democracy in promotingjustice in a polarising Kerala society,foundation of multi-culturalism andpluralism.

Participants found the conferencetimely, fresh and balanced. ShriPinarayi Vijayan, Hon'ble ChiefMinister of Government of Kerala,underlined integrating economicplanning and social planning processin livelihood planning so that whatis achieved is balanced and robustsocio-economic recovery aroundlivelihoods. The presentationopened donors to many ideas. Forexample, what will be the contoursof coalition of civil societyorganisations busy in recovery; therevolving door of internationalexperts; smart cities needing safecities; interstate federal cooperationin flood management and earlywarning systems; and how

decentralisation can accelerateequality livelihood recovery at locallevel and restore ecology andnatural resources.

Professor Jayaraman, member,Planning Board, Kerala, suggested agood look at social responsibility.In the discussion with theparticipants the challenge of socialprotection; change in labour force;shift in goods production anddistribution systems; andunemployment came up. Thelivelihood package of flood recoverycan, perhaps, offer a new dimensionin just labour relations as well asoffer a window to look into thefuture of social protection with focuson women workers. The commentswere deeply sympathetic to the localefforts of the community andauthorities.

Ms. Francine Pickup, CountryDirector of United NationsDevelopment Programme (UNDP)offered worldwide examples of howlivelihood recovery is central tohuman development as well as

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human capital building. The insightsincluded investments in researchand development, socialaccountability, data driven recovery,and divergence of data oneffectiveness and efficiency inrecovery. Legal recognition ofcitizen out of existing systems cameup in the discussion on restoring thelivelihoods of the casual andmigrant labour. The impact onhuman development must be lasting.

So, what were the lessons from theconference in Kerala for the worldeconomy? One, that justice andequality in livelihood recoveryplanning is a must. Two, women'sright to decent work and genderequality are central to the thinkingabout livelihood recovery. Third,livelihood recovery and ecologicalsustainability must be mutuallyreinforcing. One must enhance theother. And, fourth, the livelihoodrecovery package must lead tolasting positive change in theincome and social protection of thevictims.

– Mihir R. Bhatt

Relief kit distribution by Mr. Elijah Jacob, AJDC; Sub Inspector Mr. Shiju toThekkinkattil Anil's wife Kunjumol, Palli Canal Chalakudy, Kerala on August 30,2018.

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ACCOUNTABILITY FOR DRR

Dynamic Accountability of Global Disaster RiskReduction Measures: A View for Dialogue

The disaster risk reduction orresilience building measures

taken to protect local or worldeconomy have to be accountable.Such accountability is not possibleif what if accountability is notproperly defined. The following is aview on accountability, drawn fromthe work of Accountable Now, oneof the leading global member basedorganization based in Berlin, butapplied to disaster risk reduction andresilience building activities.

The term Dynamic Accountabilitywas coined by the organizationnamed Restless Development. Itdescribes the concept of being anaccountable Civil SocietyOrganization (CSO) andtransparently working with andlearning from stakeholders in orderto increase CSO impact andeffectiveness. The All India DisasterMitigation Institute (AIDMI) hasapplied the 12 standards of dynamicaccountability to the disaster riskreduction context.

The concept of DynamicAccountability is based on thefollowing 12 commitments.1. Justice and Equality are achieved

when disaster risk is reduced.The interests of the poorest andmost vulnerable should beaddressed first.

2. Women's Rights and GenderEquality are at the forefront ofbuilding resilience, andreducing risks.

3. A Healthy Planet is the firststep for a Safe Planet.

4. Lasting positive change ofreduced risks in the lives of thepoorest citizens is a final goal.

5. People-driven work includesdisaster victims and

beneficiaries leading therecovery process.

6. Strong partnerships areessential where risks are to bereduced by all in the society.

7. Advocating for fundamentalchange in favour of reducingrisk is a must.

8. Open organizations invite andshare new ideas, individuals,and associations to buildresilience.

9. Empowered, effective staff andvolunteers are the sun rays ofCSOs.

10. Well-handled resources includesfaster, better, cheaper ways oftaking disaster risk reductionactions.

11. Responsive decision-makingleads to demand driven disasterrisk reduction.

12. Responsible leadership that islocal and resourced is a must forany disaster risk reduction.

The above 12 aspects of dynamicaccountability can help disaster riskreduction and resilience building

agencies think in greater detail aboutdisaster risk reduction actions andallocations.

Those involved in global disasterproject finance, management,monitoring and evaluation areinvited to join this dialogue.

The above twelve commitments fordynamic accountability are drawnfrom Global Standards for CSOAccountability and transformed byAIDMI for CSO for working indisaster risk reduction sectors.

The twelve commitments areapplicable in any global or localinitiatives, development or disaster, inthe World Bank or AsianDevelopment Bank or IFI fundedmega-projects where civil societyorganizations have been invited tojoin.

Should you have any comments emailto bestteam@aidmi.org at AIDMI.

(For more detail contact AccountableNow at feedback@csostandards.org)

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The term disaster risk refers tothe potential (not actual and

realised) disaster losses, in lives,health status, livelihoods, assets andservices, which could occur in aparticular community or societyover some specified future timeperiod. Disaster risk is the productof the possible damage caused by ahazard due to the vulnerabilitywithin a community. A studyreleased by the United NationsInternational Strategy for DisasterReduction (UNISDR) said Indiasuffered economic losses of $80billion during the 20-year period of1998 to 2017. India has been rankedfourth among the top five countriesthat have suffered disaster losses.India's monsoon floods have causedmore internal displacement than anyother disaster around the world in2018, according to Geneva-basednon-profit Internal DisplacementMonitoring Centre's (IDMC) half-yearly report, released on Sept. 12,2018. Scientists attribute theincreased frequency and severity ofsuch disasters to global warming,which has been caused by massivecarbon deposit in space mainly by thedeveloped world over last one century.

According to the NationalEmergency Response Centre(NERC), as of 24 June, the death tollreached 229 (24 in Assam, 9 inManipur, 21 in Tripura, 42 in WestBengal, 67 in Maharashtra and 66 inKerala) since the beginning of thecurrent monsoon season. Inaddition, NERC reported at leastone million people affected acrossthe six States. (ECHO, 26 Jun 2018).During 2018, India was affected withmajor disasters like Floods in Kerala,Cyclone Titli in Odisha and AndhraPradesh and Cyclone Gaja in TamilNadu and Puducherry.

DRR AND ECONOMY

Disaster Risk Reduction in Rural Economy:View from NIRD

Kerala being land of rains and riversexperienced swirling, jostling,billowing monsoon rains duringSouthwest season of 2018 thatresulted in a disastrous flood. In aspan of 30 days, 339 human liveswere lost, thousands of housesdamaged, over a million and halfpeople were moved to relief camps,large stretches of major roads gotwashed away and many bridges gotdamaged. Subsequently, the impactof Cyclone Titli in Odisha andAndhra Pradesh and Cyclone Gajain Tamil Nadu and Puducherrydestroyed thousands of homes anddamaged the rural lives across thecoastal areas. Agriculture and ruralbased livelihoods have been one ofthe first sectors to feel the changesin climate and the consequences ofdisaster can highly affect theeconomy of the rural people.

According to the UNISDR, there areseveral key parties that play majorroles in the disaster managementprocess. These include communities,particularly those most vulnerable;local governments; nationalgovernments, regional institutions;NGOs, Corporations, Media andscientific communities. The SendaiFramework on Disaster RiskReduction (2015-30) targets to reducethe direct disaster economic loss inrelation to GDP by 2030. TheSustainable Development Goals onClimate Action indicated that theannual average losses from disastersamount to hundreds of billions ofdollars, requiring an investment ofUS$6 billion annually in disaster riskmanagement alone. The goal aimsto mobilize $100 billion annually by2020 to address the needs ofdeveloping countries and helpmitigate climate-related disasters.However, mobilizing funds for

addressing DRR is a Challengingtask. Indian Disaster ManagementAct, 2005 emphasis preparation ofdisaster management plan by localbodies based on which the annualdisaster management of the Stateshall be prepared, a provision in thePlan has been made for eachdepartment to have a DisasterManagement Cell (DMC).

Since independence, Government ofIndia has launched various ruraldevelopment and agriculturalschemes like National RuralLivelihood Mission (NRLM),Mahatma Gandhi National RuralEmployment Guarantee Scheme(MGNREGS), Pradhan Mantri AwasYojana Grameen (PMAYG), NationalRurban Mission (NRuM), NationalMission on Sustainable Agriculture(NMSA), Rashtriya Krishi VikasYojana (RKVY), National FoodSecurity Mission (NFSM), Mission onIntegrated Development ofHorticulture (MIDH) etc. to alleviatethe poverty and enhance livelihoodopportunities of rural people. Thestrategic way forward of Indian ruraldevelopment includes financialinclusion, provision of safety net andbasic amenities like health,education, communication,infrastructure facilities andtechnological advancement.Integration of these ruraldevelopment programmes indisaster risk reduction will result ininclusive growth of the ruraleconomy and holisticdevelopment.

– Dr. V. Suresh Babu andDr. Basavaraj Patil, Centre for

Climate Change and DisasterManagement, National Institute of

Rural Development and PanchayatiRaj, Rajendranagar, Hyderabad, India

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TRANSFORMING CLIMATE FINANCE

Do Disasters or Climate Change LeadAdapting Countries to Debt Crisis?

The countries that are the mostvulnerable to climate change

and natural disasters are also someof the poorest and most heavilyindebted as well. It is thereforeproblematic that more than half ofall climate finance1 is given throughloans, as this could lead tounsustainable debt levels for somecountries or deter them fromimplementing the necessaryadaptation/mitigation measures, asthey cannot take up more loans. It isalso problematic that countries hitby disasters have to service debtrather than focus on reconstruction,as this can further exacerbate theirdebt situation, due to diminishingincome and the need for new loans.

The International Monetary Fund(IMF) reports that 31 of 67 low-income countries2 are now either in,or in high risk of experiencing, adebt crisis. Many of these countriesalso face great challenges with achanging climate, and some are indebt distress because of naturaldisasters that have caused enormousdamage both to the physical andfinancial environment.

Several examples of countries thatare caught in a vicious cycle ofhurricanes, rebuilding and debtservicing can be found amongCaribbean island states. Afterhurricane Irma, Barbuda lost about90 per cent of its structures and the

price tag for the reconstruction wasestimated at $150 million. With astanding debt of almost $16 millionto the IMF, Barbuda faced a difficultsituation in having to service debtinstead of rebuilding houses for the1600 new homeless on the island.Instead of stopping to collect therepayments due - providing a so-called moratorium, the IMF statedthat they would rather lend moremoney to the island3. This furtherincreased the debt burdens andinhibited a quick recovery from thedisaster for Barbuda.

In other countries, climate change isaltering the natural environmentand affecting the livelihoods and

Damage to buildings caused by Hurricane Irma in Nanny Cay on the British Virgin Island of Tortola. The Caribbean islandsuffered widespread damage and destruction when Hurricane Irma struck, September 6, 2017.

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sources of income for people andstates. Over time, this can make itdifficult to fulfill debt paymentobligations and it may increase theprice of the debt as it becomesincreasingly risky to invest orprovide loans to these countries.Indeed, a new report commissionedby the UN4 finds that increased riskfrom vulnerability to climate changeis increasing the cost of capital andis projected to cause an additional$168 billion of debt payments overthe next ten years among the mostclimate change vulnerable countries.The same report finds thatborrowing for climate financebecomes more expensive over timeif action is not taken quickly becausethe increased risk of investmentsfrom climate vulnerability causesdebt repayments to increase over

time, due to the aforementioned risklinked to interest rate levels.

Furthermore, both adapting to thesechanges and implementingmitigation measures to cut emissionsand prevent further climate changeare extremely costly activities. TheParis Agreement states thatdeveloped countries shouldcontribute to providing the fundsneeded for mitigation andadaptation.5 Yet, many of today'sfinancing models impose a greatpayment burden on developing andemerging economies whoexperience the threat of climatechange as they need to financemitigation and adaption throughloans. This, in turn, could jeopardizereaching the climate goals, as a debtcrisis will require a public spending

cut, and climate projects may verywell be the first on the list to go.

We can thus see that disasters orclimate change may be causes fordebt crises for a number of differentcountries, and this is something thatneeds to be taken into account whenwe work towards the SustainableDevelopment Goals and climategoals. It is of the utmost importancethat a moratorium comes into placewhen countries are hit by disasters,and that debt sustainability isconsidered when providing othertypes of climate finance. The lattershould be given as grants to thosemost vulnerable in order to avoid adouble disaster; both environmentaland financial.

– Isabella Dahl Kormilitzine,Director, Debt Justice Norway

Urbanisation, environmentaldegradation, climate change,

and development-related processesand planning, shape and configurehazards. The complexity of systemsand uncertainty related to the impactof development and climate changeaffect the way we understand andmanage risks. Just like othercountries with exposure to disasterrisks, especially in the Southeast Asiaregion, Malaysia's disaster exposureranges to various climate-relateddisasters such as floods, flash floods,landslides and strong winds, and hadincreased partly due to climatechange.

Taking into account future risks anduncertainties, Malaysia has taken

LOCAL ECONOMY AND DRR

Reducing Disaster Loss and Damages inMalaysia

1 https://www.forumfor.no/assets/docs/Analysis-of-Norwegian-Climate-Finance.pdf2 https://www.imf.org/external/Pubs/ft/dsa/DSAlist.pdf3 https://www.independent.co.uk/news/business/news/irma-imf-barduda-debt-repayments-moratorium-hurricane-

caribbean-island-a7941176.html4 https://eprints.soas.ac.uk/26038/5 https://unfccc.int/topics/climate-finance/the-big-picture/climate-finance-in-the-negotiations

Community-based flood mitigation initiative, Klang, Selangor, Malaysia.

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several initiatives to mainstreamdisaster risk reduction (DRR) into itsdevelopment agenda to safeguardrisk sensitive investment in thecountry. Several ongoing nationalinitiatives in Malaysia to advancedisaster risk reduction at the locallevel, with National DisasterManagement Agency (NADMAMalaysia) was spearheading theeffort to develop a national legalframework for disaster riskreduction which would serve as theumbrella for state governments andlocal authorities in the country.

Malaysia too had developed theNational Science, Technology andInnovation Plan for DRR tocomprehensively and systematicallyaddress knowledge gaps on currentand emerging hazards in thecountry, including taking anintegrated approach to disaster riskreduction and climate changeadaptation, to ensure sustainabledevelopment. Substantial resourceshave been provided to reduceunderlying risk factors and promotesustainable development in thenation's primary development plan- the 'Five Years Malaysia Plan'.

At the level of the civil society,MERCY Malaysia had developed astrategic initiative known asBuilding Resilient Communities(BRC). BRC is an initiative thatcombines local governments, localcommunities, the education sector,health infrastructure and serviceproviders, and the private sector asits primary stakeholder. Its objectiveis to achieve an understanding forthe mainstream humanitarian actors,specialist actors and the public inbecoming a prepared, responsiveand resilient through theinvolvement of the effectiveness ofgrass - roots projects and programsand at the same time, suggestpolicies, guidelines and traininginputs for each community to secureits role building resiliency.

Its activities and programs are beingconducted across the country andbeyond, with the aim of providingpractical examples on how investingin building resilience can helpreduce the humanitarian burden aswell as demonstrate how investmentin local DRR capacities can reducerisk, foster resilience and promotesustainable development. Its projectsalso practices current regional andlocalized approaches to DRR andexplore how civil societies cooperatein building a more resilient Malaysiaand ASEAN.

Routine training of trainersprogram, alongside other relatedtrainings provide consistent capacitybuilding inputs, not only at the localcommunity level, but also togovernment administrators inenhancing the state of resilience ofthe country. Institutionalframeworks adopted by thegovernment will help to streamlineactivities and program strategies byNGOs and CSOs. One way of doingthis is that NGOs and CSOs workingin close coordination with NADMAMalaysia and other regional andinternational actors.

In its effort to encourage and protectsustainable development, theGovernment of Malaysia, under the2019 National Budget which wasannounced on 2 November 2018,

Malaysia Development Bank willprovide a RM1 billion SustainableDevelopment Financing Fund aimedat supporting the sustainabledevelopment agenda of Agenda 2030and the 17th SustainableDevelopment Goals (SDG) underUNDP. For this purpose, theGovernment will provide an interestrate subsidy incentive of 2%.

Some areas that requireimprovement include enhancing andbuilding local community leaders'capacities. Local leader platforms andforums should be created andpromoted at the local level whereopen and frequent discussions on thedifferent dimensions of the SendaiFramework can be encouraged.Local leadership must be nurturedand exchange programs for learningand sharing be encouraged.Focussed investment in developingregional cooperation fordevelopment of disaster resilientinfrastructure and enablingenvironment for promotion of DRRwork need to be established, whileensuring national developmentplans should be risk informed,aligned with DRR strategies. Thispractice should be encouraged as anecessity across the country andregion.

– Hafiz Amirrol, Head,Building Resilient Communities

Programme Development andOperations, MERCY, Malaysia

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India, as an agrarian economy,depends immensely on

groundwater sources for irrigation,drinking and domestic purposes.Currently, India is the largestconsumer of groundwater in theworld, with an annual abstraction of253 billion m3. Groundwater sourcescater to about 85% of rural domesticneeds, 45% of urban domestic needsand 60-70% of agriculture needs inIndia. However, erratic rainfallpatterns have made monsoonpredictability difficult forcommunities, especially farmers,thereby impacting production ofrainfed crops as well as subsequentseasonal cropping patterns. This hasled to communities investing inborewell digging to reach deeperaquifers. Over-abstraction fromdeeper aquifers also poses a greaterrisk to groundwater quality (mainlyfluoride and arsenic contamination).The change in water availability hasforced many farmers to take drasticmeasures and switch to alternativelivelihoods. The governmentresponse to the alarminggroundwater crisis is insufficient tokeep pace with the rate at whichcommunities and farmers areexploring groundwater sources. Thisscenario creates a need for aparadigm shift in groundwatermanagement.

Groundwater is a complex resourceto manage due to its invisible andcommon pool characteristics. Itsconsumption is non-exclusionary innature but results in competitionfrom overuse. Therefore, reallocationand distribution of groundwaterought to be influenced by the pareto

principle and principles of inter-generational welfare.

Participatory GroundwaterManagement (PGWM) is an approachthat applies social, economic, andscientific principles to manage theresource through communityengagement for building resilienceto droughts, ensuring food security,averting risks of rainfall and climatevagaries, and also enable copingmechanisms for natural andmanmade disasters1. ThroughPGWM approach, groundwatermanagement is addressed byinvesting in soft skills andknowledge along with hardwareinterventions, thereby resulting inlong term benefits. The narrativesfrom the field indicate towardsbuilding community resilience andseveral economic benefits such as;• In drought prone areas,

communities rely on privatetanker services to meet theirdaily water requirements, leadingto higher cost of buildingresilience. The PGWM approachhas reduced, if not stoppedaltogether, people's dependenceon tankers in many water stressedareas. In Rapar block of Kutchdistrict, post PGWM interventionhas reduced the tankerdependence to once a week ascompared to once in three daysduring lean seasons. Similarly,Kudiyal Gaon in Uttarakhand hasnot bought a single tanker sincethe revival of the local springthrough PGWM based spring shedmanagement2.

• Economic impact on women: Theonus of water collection continues

COMMUNITY RESILIENCE AND LOCAL ECONOMY

Building Community Resilience throughParticipatory Groundwater Management(PGWM) Approach

to rest on the women in India. ThePGWM approach shows a markedshift in the drudgery faced bywomen in accessing water,especially during lean period. Thetime available as a result ofdecreased drudgery is used inlivelihood activities such aslivestock rearing and agriculturethereby improving theireconomic gains. Eg. In Kinsu(Tehri district of Uttarakhand), theavailability of water throughstandposts allowed a significantincrease in time saved infinishing domestic chores forwomen. The distance travelled forfetching water has fallen from1km to 30m.

• Economies of scale: A keycomponent of PGWM approach iscapacity building and communitytraining. We have experiencedthat by adopting PGWM at scale,the unit cost of interventionreduces drastically, unlike aninfrastructure intensive approach.The estimated cost of PGWM at avillage is Rs. 25,000 to Rs. 30,000per hectare includinginfrastructure cost. But the cost ofimplementing the project at amega-watershed level reduces toRs. 15,000 to Rs. 20,000 per hectare.

• A comprehensive water securityplan is a key output of the PGWMapproach. The WSP serves as aleveraging document that detailsout the current water scenario, thepotential demand of water in theupcoming cycle, and managementplan as decided by thecommunity. These WSPs act asguiding documents to create DPRsthrough which funding is

1 Ghose, B., Dhawan, H., et al (2017). Peoples' Participation for Sustainable Groundwater Management. In: Saha D., MarwahaS., Mukherjee A. (eds) Clean and Sustainable Groundwater in India. Springer Hydrogeology. Springer, Singapore.

2 Dhawan, H. and Senthilnathan, S. 2016. Reviving Springs, Improving livelihoods and Sustaining Ecosystems at BhujalManthan, New Delhi.

southasiadisasters.net December 201812

Editorial Advisors:

ALL INDIA DISASTER MITIGATION INSTITUTE411 Sakar Five, Behind Old Natraj Cinema, Near Mithakhali Railway Crossing, Ashram Road,Ahmedabad–380 009 India. Tele/Fax: +91-79-2658 2962E-mail: bestteam@aidmi.org, Website: http://www.aidmi.org, www.southasiadisasters.net

Denis NkalaRegional Coordinator, South-South Cooperationand Country Support (Asia-Pacific), UnitedNations Development Programme, New York

Ian DavisVisiting Professor in Disaster Risk Management inCopenhagen, Lund, Kyoto and Oxford BrookesUniversities

Dr. John TwiggSenior Research Fellow in the Risk and Resilienceprogramme, Overseas Development Institute(ODI), London

Madhavi Malalgoda AriyabanduSub-Regional Coordinator, Central Asia & SouthCaucasus, United Nations Office for Disaster RiskReduction (UNISDR), Kazakhstan

Mihir R. BhattAll India Disaster Mitigation Institute, India

Dr. Satchit Balsari, MD, MPHThe University Hospital of Columbia and Cornell,New York, USA

T. Nanda KumarFormer Chairman, Institute of Rural ManagementAnand (IRMA), Anand, Gujarat, India

leveraged from variousgovernment schemes.

• PGWM relies not only on supplyaugmentation but also demandmanagement through croppingpattern change, efficient irrigationtechniques and systems.Protective irrigation and borewellpooling have been carried out byfarmers with an increase inagricultural income. In Telanganaand Andhra Pradesh, borewellpooling was adopted as a methodfor groundwater management. In

Mehbubnagar district, 57 farmersin three villages pooled their 132acres of land. In Anantapurdistrict, 67 farmers owning 328acres pooled their groundwaterresources and in Ranga Reddydistrict 18 farmers with 45 acres.This led to reduced pumping time,increased water availability forcrop production by 41%, rise ingroundwater level and increasedlivelihood support3.

• Water quality issues have asignificant impact on household

3 http://www.cipt.in/publications/programreport/compendium.pdf4 Krishnan, S. and Indu, R. (2006). Groundwater contamination in India: discussing physical processes, health and socio-behavioral

dimensions. IWMI-TATA Water Policy Research Program.

healthcare. In parts of Telangana,Odisha, Madhya Pradesh, andBihar PGWM approach has beenincorporated to mitigate fluorideand arsenic contamination. On anaverage, the economic burden ofconsuming contaminated waterwas Rs. 5,500 per person per year(medical expenses + loss ofwages)4. By promoting local andcustomised filtration techniquesand adopting protocols for wateruse through PGWMinterventions, this cost has beensubstantially reduced.

Arghyam and its partners havedemonstrated the application ofPGWM in 1,000 sites across thecountry. However, to test benefits ofthis approach at scale, to reach morecommunities and create greaterimpact, a new thinking needs to bedeveloped. The Government of Indiahas launched a Rs. 6,000 croregroundwater managementprogramme, inspired by theprinciples of PGWM, to beimplemented across 7 states in India.There is urgent need to devise methodsto reach scale faster, cheaper andbetter, in order to reduce adversariesfor a larger population. – Surbhi Arul, Nisha Subramanian,and Harshvardhan Dhawan, Arghyam,

Bengaluru, Karnataka, India

Drudgery of water collection in water stressed areas is higher for women,especially young girls. Kutch, Gujarat.