Disaster and Economy G.VAIDYANATHAN Former DY. Director General, Factory Advice Service & Labour Institutes Government of India Now Safety Consultant &

Disaster and EconomyDisaster and EconomyG.VAIDYANATHAN G.VAIDYANATHAN

Former DY. Director General, Former DY. Director General, Factory Advice Service & Labour Factory Advice Service & Labour Institutes Government of India Institutes Government of India Now Safety Consultant & Advisor Now Safety Consultant & Advisor SHE Cell, Bombay Chamber of SHE Cell, Bombay Chamber of

Commerce and Industry Commerce and Industry

Disaster and EconomyDisaster and Economy• Economy is quite vulnerable to occurrences Economy is quite vulnerable to occurrences

like War, Technological innovations and like War, Technological innovations and Disasters, Manmade or Natural Disasters Disasters, Manmade or Natural Disasters

• While Proactive Safety Preparedness Efforts While Proactive Safety Preparedness Efforts can Protect Economy from Collapse All can Protect Economy from Collapse All Disasters including Chemical, certainly affect Disasters including Chemical, certainly affect the economy the economy

• We witnessed this in our country and in other We witnessed this in our country and in other places as well places as well

• But public memory being short we tend to But public memory being short we tend to forget the impact of Disaster on the Economy forget the impact of Disaster on the Economy we jump from one Crisis to another Crisis we jump from one Crisis to another Crisis

Extent of Affliction to Economy Extent of Affliction to Economy by Disasterby Disaster• Disaster affects economy in many ways: death, Disaster affects economy in many ways: death,

destruction, extensive damage to property and loss of destruction, extensive damage to property and loss of morale morale

• Further modes of Affliction are trade and Commerce, Further modes of Affliction are trade and Commerce, National & International National & International

• While the former impact lasts till reconstruction, the While the former impact lasts till reconstruction, the latter impact may go beyond duration of reconstruction latter impact may go beyond duration of reconstruction and involves political dimension which is difficult to and involves political dimension which is difficult to address address

• Further, disasters obviously have its cascading or Further, disasters obviously have its cascading or domino effect on Globalised economy domino effect on Globalised economy

• Now-a-days it is felt more quickly due to Now-a-days it is felt more quickly due to interdependence and faster means of Communication interdependence and faster means of Communication

Details of Impact of Disasters Details of Impact of Disasters on Economyon Economy• The first impact is economic loss to individuals affected The first impact is economic loss to individuals affected

by disaster, property damage, immediate and long by disaster, property damage, immediate and long term term

• Impact on trade & commerce, short and long term, Impact on trade & commerce, short and long term, could be quite hurting could be quite hurting

• Even Lack of Safety in the over all sense gives rise to Even Lack of Safety in the over all sense gives rise to use of Non-tariff measures being invoked by powerful use of Non-tariff measures being invoked by powerful Nations Nations

• Economists apprehend that Global Warming and failure Economists apprehend that Global Warming and failure to agree to capping norms could result in NTB by to agree to capping norms could result in NTB by Western World Western World

• Measures like REACH is viewed as Protectionists Measures like REACH is viewed as Protectionists measures by some measures by some

Details of Impact ….Contd…Details of Impact ….Contd…

• The impact of Certain Disasters on our The impact of Certain Disasters on our Economy were significant to put it lightly Economy were significant to put it lightly

• To name a few the following are To name a few the following are significant in today's value: significant in today's value:

-- Bhopal Disaster -- Bhopal Disaster

-- Fire in Semiconductor Factory in -- Fire in Semiconductor Factory in Chandigar Chandigar

-- Fire in Jaipur Oil Depot -- Fire in Jaipur Oil Depot


• In respect of Bhopal Disaster, Factory is Closed and In respect of Bhopal Disaster, Factory is Closed and the City’s population is yet to recover from the the City’s population is yet to recover from the disaster even after 25 years disaster even after 25 years

• Country’s Safety Record in International arena took Country’s Safety Record in International arena took a beating a beating

• The above aspect will give a big handle to impose The above aspect will give a big handle to impose NTB measures even now in terms of International NTB measures even now in terms of International Trade Trade

• Fire in Chandigar Factory critical to our effort Fire in Chandigar Factory critical to our effort necessitated an Exclusive Budget provision in our necessitated an Exclusive Budget provision in our General Budget General Budget

• Fire in Jaipur Oil Depot is still being assessed Fire in Jaipur Oil Depot is still being assessed


• Viewing Disasters in the Globalised Economy is the Viewing Disasters in the Globalised Economy is the present ball game present ball game

• Globalised Economy means Slender Profit Margins, Globalised Economy means Slender Profit Margins, Fierce Competition among Countries as dealings could Fierce Competition among Countries as dealings could be outside the purview of WTO Which is be outside the purview of WTO Which is euphemistically called NTB euphemistically called NTB

• There will be serious problems in regard to Trade There will be serious problems in regard to Trade dealings Nationally and Internationally dealings Nationally and Internationally

• Already we have experienced the Signs and Already we have experienced the Signs and Symptoms affecting the trade in the past e.g Azo dyes Symptoms affecting the trade in the past e.g Azo dyes in Garments Child labour in Carpets and Garments etc in Garments Child labour in Carpets and Garments etc

• Western Countries are sending their representatives Western Countries are sending their representatives to Production Centers for Checking the SHE Conditions to Production Centers for Checking the SHE Conditions


• Because of the Interdependence of Economy the SHE Because of the Interdependence of Economy the SHE concerns are to be integrated into the Supply Chain concerns are to be integrated into the Supply Chain

• Recently there was an incident of accident in one of the Recently there was an incident of accident in one of the vendors’ unit of a big Auto firm vendors’ unit of a big Auto firm

• Questions were raised as to whether the Auto company Questions were raised as to whether the Auto company sent out their Safety Professionals to Audit the Safety sent out their Safety Professionals to Audit the Safety measures in the Vendor’s Premises measures in the Vendor’s Premises

• If this piece of Information were to be used as NTB then If this piece of Information were to be used as NTB then our Business prospects could be affected our Business prospects could be affected

• Quality, Delivery Schedules, efforts relating to Quality, Delivery Schedules, efforts relating to Environmental Conservation are becoming increasingly Environmental Conservation are becoming increasingly critical to Economy including disposal in the context of critical to Economy including disposal in the context of Global warming and Climate Change Global warming and Climate Change

• Disasters could affect all the above in one go Disasters could affect all the above in one go

Our Strengths in this regardOur Strengths in this regard

• While the impact of Disasters on the Economy has been While the impact of Disasters on the Economy has been dealt to the extent of being dubbed as Scare dealt to the extent of being dubbed as Scare Mongering it would be worth while to mention our Mongering it would be worth while to mention our Strengths: Strengths:

-- Low cost high tech operations are possible -- Low cost high tech operations are possible -- Advantage of Knowledge of English -- Advantage of Knowledge of English -- Communication revolution and our Strengths in IT & IT -- Communication revolution and our Strengths in IT & IT

enabled Businesses enabled Businesses • All the above would go in vain if the economy suffers on All the above would go in vain if the economy suffers on

account of Neglect in Ensuring SHE Concerns, in all account of Neglect in Ensuring SHE Concerns, in all work activities and more so due to Disasters work activities and more so due to Disasters

• The above will be possible by well meaning Nationalists The above will be possible by well meaning Nationalists to bring about an awakening among Population to bring about an awakening among Population

What is the SolutionWhat is the Solution• The solution to these problems lies in improving Safety Level and Emergency The solution to these problems lies in improving Safety Level and Emergency

Preparedness for mitigating the impact of Disasters Preparedness for mitigating the impact of Disasters • We need an overview approach to success in every walk of Life particularly We need an overview approach to success in every walk of Life particularly

in regard to Businessin regard to Business• We need to have a proper understanding of where the Cause of Deficiency in We need to have a proper understanding of where the Cause of Deficiency in

terms of SHE aspects as well as the modalities of Impact on the Economy terms of SHE aspects as well as the modalities of Impact on the Economy • Particularly linkages of Lack of SHE concerns and its impact on Economy Particularly linkages of Lack of SHE concerns and its impact on Economy • Now only we realise the importance of Child Labour NTB, need for Now only we realise the importance of Child Labour NTB, need for

integrating SHE concerns in the supply Chain etc integrating SHE concerns in the supply Chain etc • We need a collective will to achieve this. Shall we Call it National will. We need a collective will to achieve this. Shall we Call it National will.

Thank YouThank You

Documents

Disaster and Economy G.VAIDYANATHAN Former DY. Director General, Factory Advice Service & Labour Institutes Government of India Now Safety Consultant &