RESPONDING TO THE

JAPAN DISASTER

The Japan Disaster: Philanthropy New York Funders’ Teleconference

James Gannon

Japan Center for International Exchange (JCIE/USA)

April 1, 2011

JCIE/USA • 274 Madison Avenue, Suite 1102, New York, NY 10016 • (212) 679-4130 • w ww.jcie.org

JCIE/Japan • 4-9-17 Minami-Azabu, Minato-ku, Tokyo 106-0047 • (03) 3446-7781 • w ww.jcie.or.jp

Overview

1) Scope of the Disaster

2) Current Response—Rescue & Relief

3) Long-term Needs—Reconstruction & Recovery

4) Japan’s Civil Society Sector & US Philanthropy

5) What US Funders Can Do

The Earthquake – March 11, 2:46pm (local time)

Other Major Earthquakes by Magnitude (Richter Scale)

Tokyo Earthquake (Great Kanto Earthquake) 7.9 1923

Kobe Earthquake 7.2 1995

Loma Prieta Earthquake (San Francisco) 6.9 1989

Northridge Earthquake (LA, California) 6.7 1994

Aftershocks

750 aftershocks in first 2 weeks

3 aftershocks larger than Northridge Earthquake

44 aftershocks more than 6.0 Magnitude

Strongest Recorded Earthquakes by Magnitude (Richter Scale)

1) Valdivia Earthquake (Validivia, Chile) 9.5 Magnitude 1960

2) Alaska Earthquake 9.2 1964

3) Indian Ocean Earthquake 9.1~9.3 2004

4) Tohoku Japan Earthquake 9.0 2011

5) Kamchatka Earthquake (USSR) 9.0 1952

The Tsunami

Waves hit in Miyako, Iwate Prefecture

Waves strike Natori (Miyagi Prefecture), a farming town of

74,000 people, destroying much of the town.

The Destruction

Casualties & Damage (as of 3/31)

11,500+ - confirmed deaths

16,400+ - missing

2,800+ - injured

170,000+ - in shelters

160,000+ - buildings destroyed or damaged

The Damage to Human Lives

1135 of 1600 companies listed on Tokyo Stock Exchange report having

facilities in the affected areas that are damaged

East Japan (including Tokyo) faces rolling blackouts through the summer

Fishing industry in the Tohoku region (2009 income of $1.5 billion)

completely wiped out. Almost all of the 263 fishing ports in Tohoku region

destroyed, 20,000+ fishing vessels lost nationwide.

World’s Costliest Natural Disasters (Since 1965)

1. Tohoku Earthquake (2011) est. $198~309 billion

2. Kobe Earthquake (1995) $100 billion

3. Hurricane Katrina (2005) $81 billion

4. Northridge Earthquake (1994) $20 billion

The Economic Toll

Japanese Gov’t mobilizes 100,000 Self

Defense Force troops

US Forces Japan launches Operation

Tomodachi with 20,000 personnel

Nuclear crisis

Current Government Response: Rescue & Relief

Civil Society Response: Rescue & Relief (1) Response by Japanese Organizations

20-30 established organizations that

typically work overseas on humanitarian emergencies and natural disasters are

providing relief.

They are well-equipped to maneuver in

Japanese society and within the webs of bureaucracy, but are underfunded.

Evacuees use a satellite phone provided by Peace Winds.

AAR delivers food to tsunami survivors at the Asahigaoka Community Center.

Civil Society Response: Rescue & Relief (2) Response by Japanese Organizations

Hundreds of new self-help and voluntary

organizations are emerging around the country.

Coordination Initiatives

• Japan Civil Network for Disaster Relief in East

Japan (Japan CivilNet)—looser, brand new

coordination effort among 140 groups involved

in various aspects of fundraising, relief,

recovery, etc.

• Japan Platform—strong coordination among 32

humanitarian assistance organizations

A generator arrives in Hirota.

AMDA personnel assist in a nursing facility.

Civil Society Response: Rescue & Relief (3) Fundraising by Japanese Organizations

A. Domestic Fundraising Initiatives

Disaster Grantmaking Funds – Distributing Funds to Relief and Recovery Organizations

Organization Amount Target

Central Community Chest of Japan $4.9 million (as of 3/24) Emergency relief

Give One Campaign (Ctr for Public Resource Dev/t) $241,000 (as of 3/24) Emergency relief by select disaster relief organizations

JANIC (Japan NGO Center for International Cooperation)

$874,00 (as of 3/28) Emergency relief by member organizations (disaster relief

organizations) Japan NPO Center $241,000 (target as of 3/25) Local NGOs in disaster

areas

Japan Association of Charitable Organizations $36,000 (as of 3/18)

Japan Platform $22.5 million (as of 3/24) Emergency relief by member organizations (disaster relief

organizations) Nippon Foundation (Canpan initiative) $3.2 million (as of 3/24) NGOs working w/ children,

disabled, elderly, etc.

Civil Society Response: Rescue & Relief (4) Fundraising by Japanese Organizations

B. Domestic Fundraising Initiatives (cont.)

“Gienkin” Funds

Providing direct cash payments to disaster victims

Organization Amount raised

Japan Red Cross $484 million (as of 3/25)

Central Community Chest of Japan $90 million (as of 3/25)

Asahi Newspaper/NHK Social Welfare Organization Unavailable

Japanese Consumers Cooperative Unavailable

Long-term Reconstruction & Recovery:

Economic Challenges

National Debt / GDP Ratio

Japan (2010) 225.8%

Japan (1995 – Kobe Earthquake) 59.4%

United States (2010) 58.9%

Income Per Capita Relative to National Average (National Average = 1.0)

Miyagi Prefecture .73

Iwate Prefecture .81

Fukushima Prefecture .93

Japan is the most heavily indebted of all advanced industrial countries

The devastated areas in Japan were already poorer than the rest of the country.

Long-term Reconstruction & Recovery:

Demographic Challenges

Elderly as percent of population (65 + years old; 2009)

Miyagi Prefecture 22.1%

Iwate Prefecture 26.8%

Fukushima 24.7%

Comparative Data Japan – Countrywide 22.7%

United States (2004 data) 12.4%

Japan’s population is the greyest in the world

Plus, there is a disproportionate number of senior citizens in the affected areas.

Potential Issues for the Long Term Recovery

Rebuilding • Rebuilding & resettlement of displaced people (especially from areas w/ radioactive contamination)

Health • Rebuild health systems

• Special physical health needs (radiation, etc) • Mental health needs (trauma, etc)

Local Economies • Economic revitalization of devastated communities (complicated by aging)

• Transition of industrial structure –shift away from agriculture and fishing in contaminated areas

Demographics • Special needs for seniors, especially in towns that were already hollowing out due to aging • Orphans – no strong adoption system like in the United States

Societal • Societal discrimination (fears of radiation)

• Preserve local heritage/historical structures/traditions

To respond effectively to each of these complex issues, it is important to empower

communities, and civil society organizations have a crucial role to play

Fragility of Japan’s civil society sector (1)

Yet most nonprofits remain severely understaffed and with a weak financial base.

Meanwhile, there is a major legal transition underway forcing all of the largest

nonprofits in Japan (i.e., ―public interest corporations‖), to reregister and reapply for

tax benefits. This had already been placing a large administrative burden on them

even before the additional stresses related to the disasters.

Note: Does not include educational and religious organizations. 2010 figures are estimate.

Rapid growth of Japan’s nonprofit sector.

Fragility of Japan’s civil society sector (2)

Japan’s philanthropic sector is much smaller than in other developed

economies, partly as a result of two decades of economic stagnation.

Grantmaking by Top 5 US Foundations vs. All Japanese Foundations (2009)

1. Bill & Melinda Gates Foundation $2,102 million

2. AstraZeneca Foundation $612 million

Combined grantmaking of Japanese foundation sector $611 million

3. Ford Foundation $529 million

4. GlaxoSmithKline Patient Access Programs Foundation $438 million

5. William and Flora Hewlett Foundation $379 million

Note: Figures for Japanese grantmaking from the Japan Foundation Center. The total includes all grantmaking by the 742 largest

foundations in Japan

Average Corporate Giving of Largest Japanese Companies (including in-kind)

1991 $5.4 million

2009 $4.5 million

Source: Nippon Keidanren (Japan Business Federation) survey.

Corporate support for nonprofits has also been waning.

Current US Philanthropic Response

As of 3/25, the Chronicle of Philanthropy calculated more than $161 million raised

in the US for Japan relief. • 2/3 to American Red Cross

• Aid to US humanitarian organizations almost solely for relief, with only a small amount possibly going to recovery efforts.

There have been aggressive efforts to raise funds by some organizations with

unclear plans of how to use these and minimal connections to Japan.

Some US organizations are trying to set up offices in Japan, although they are

facing various challenges.

Others are trying to funnel funds to Japanese NGOs on the ground. • MercyCorps, Direct Relief International, International Rescue Committee, etc.

Key Points

No developed country has ever faced a disaster of this magnitude

If Japan is a rich country, why should we provide funding? • Rebuilding communities requires strong civil society involvement, and Japan’s civil

society organizations are severely underfunded.

• Also, the nonprofit sector in Japan is at a critical transition point, and the reaction

of overseas and domestic donors will play a key role in whether it continues to develop or is stunted.

• Japan is America’s closest partner in Asia, and how it recovers will affect the future roles and capabilities of the United States in this critical region.

The long-term recovery is likely to be more of a challenge than short-

term relief • The nonprofit sector will have to shoulder a greater share of the burden for

recovery than for relief.

• However, most funding is going for immediate relief efforts, with limited prospects of funding so far for the mid- to long-term work that will be required of Japanese

nonprofits.

• It seems unlikely that domestic funding for nonprofits can ramp up quickly enough

to meet the immense needs of Japanese nonprofits over the next 5~10 years.

What US Funders Can Do – Relief Efforts (1)

1) Fund US-based 501(c)(3) organizations for relief efforts

a) Contribute to US disaster relief organizations (pros & cons)

b) Support US-based organizations with Japan expertise that established funds to

channel money to Japanese groups

• Give2Asia—Managing several funds to channel money to Japanese groups

• JCIE/USA—½ of funds support 6 Japanese disaster relief NGOs through the Give One campaign and ½ dedicated to a long-term recovery fund.

• Japan Society—Supporting Japanese disaster relief organizations and other groups on the ground in Japan

• US-Japan Council—Supporting 2 disaster relief campaigns and possibly more Japanese groups in the future.

c) Fund one of the few Japanese humanitarian organizations with US arms/partners • Peacewinds—MercyCorps and Peacewinds USA are fundraising for its disaster relief

activities

• JOICFP (Japanese Organization for International Cooperation in Family Planning)—IPPF (International Planned Parenthood Federation) is raising funds for its efforts to provide

healthcare for newborns and mothers in the disaster area.

What US Funders Can Do – Relief Efforts (2)

2) Directly aid Japanese organizations involved in the relief effort

Umbrella groups

•Give One campaign •Japan Platform

•JANIC (Japan NGO Center for International Cooperation) •Nippon Foundation/Canpan initiative

Individual organizations (The key humanitarian organizations are typically members of Japan Platform)

Challenges include linguistic and cultural obstacles, paperwork (affadavits,

nonprofit equivalency, expenditure responsibility, etc.) and capacity for

narrative/financial reporting in English.

What US Funders Can Do – Long-Term Recovery

Some thoughts….

1) Support existing grantmaking initiatives in Japan dedicated to long-term recovery Japan NPO Center—Japan Earthquake Local NPO Support Fund

JCIE/Japan—Long-term Japan NGO Earthquake Recovery Fund (also through JCIE/USA)

Nippon Foundation, Central Community Chest, and other nonprofit support centers.

2)Establish special tailored programs housed at US or Japanese organizations with

expertise in grantmaking and knowledge of Japan Give 2 Asia, JCIE, Japan NPO Center, etc.

3) Fund individual projects on the ground in Japan Many diverse needs, but difficulty in identifying recipients and in operating w/o facilitation.

4) Utility of a clearinghouse effort to distribute accurate info in English, coordinate

requests and offers, and add context to them

5) Potential use of a study of Japan’s response to this disaster and best practices

RESPONDING TO THE

JAPAN DISASTER

James Gannon

Executive Director

Japan Center for International Exchange (JCIE/USA)

e: jgannon@jcie.org

t: (212) 679-4130

JCIE/USA • 274 Madison Avenue, Suite 1102, New York, NY 10016 • (212) 679-4130 • w ww.jcie.org

JCIE/Japan • 4-9-17 Minami-Azabu, Minato-ku, Tokyo 106-0047 • (03) 3446-7781 • w ww.jcie.or.jp