Session 5 Disasters and the Private Sector Public Administration and Emergency Management

Session 5Session 5Disasters and the Disasters and the

Private SectorPrivate Sector

Public Administration and Public Administration and Emergency ManagementEmergency Management

ObjectivesObjectives

► At the conclusion of this session, students will be At the conclusion of this session, students will be able toable to Describe and discuss the legal and political relationships Describe and discuss the legal and political relationships

among public agencies and the private sector among public agencies and the private sector Describe the general roles of private sector organizations Describe the general roles of private sector organizations

in the national emergency management systemin the national emergency management system Describe and discuss conflicts that may arise between Describe and discuss conflicts that may arise between

public agencies and private firms in disaster operationspublic agencies and private firms in disaster operations Describe and discuss conflicts that may arise between Describe and discuss conflicts that may arise between

public agencies and property owners in disaster mitigationpublic agencies and property owners in disaster mitigation Discuss the common interests of public agencies and Discuss the common interests of public agencies and

private firms and individuals in effective emergency private firms and individuals in effective emergency managementmanagement

Required ReadingsRequired Readings► Nicholas Henry, Chapter 11 in Nicholas Henry, Chapter 11 in Public Administration and Public Public Administration and Public

AffairsAffairs, 11th Edition (New York: Longman, 2010)., 11th Edition (New York: Longman, 2010).► William Raisch, Matt Statler & Peter Burgi (2007), Mobilizing William Raisch, Matt Statler & Peter Burgi (2007), Mobilizing

Corporate Resources to Disasters: Toward a Program for Corporate Resources to Disasters: Toward a Program for Action, The International Center for Enterprise Preparedness, Action, The International Center for Enterprise Preparedness, New York University (January 24). New York University (January 24).

► http://www.nyu.edu/intercep/events/Mobilizing%20Corporatehttp://www.nyu.edu/intercep/events/Mobilizing%20Corporate%20Resources%201.25.2007.pdf%20Resources%201.25.2007.pdf

► BCLC. “From Relief to Recovery: The U.S. Business Response BCLC. “From Relief to Recovery: The U.S. Business Response to the Southeast Asia Tsunami and Gulf Coast Hurricanes.” A to the Southeast Asia Tsunami and Gulf Coast Hurricanes.” A White Paper published by the Business Civic and Leadership White Paper published by the Business Civic and Leadership Center, U.S. Chamber of Commerce.Center, U.S. Chamber of Commerce.

► http://www.uschamber.com/NR/rdonlyres/http://www.uschamber.com/NR/rdonlyres/ecphnbd7xgk7updusn6ebb3zdjkdomwifbcyro5jfqsg2nuivb2tezecphnbd7xgk7updusn6ebb3zdjkdomwifbcyro5jfqsg2nuivb2tezm7uddzrls3gzgdzkzffgdxwperbmy7uolwxie/m7uddzrls3gzgdzkzffgdxwperbmy7uolwxie/from_relief_to_recoverybclc.pdffrom_relief_to_recoverybclc.pdf

Relationships among public Relationships among public agencies and the private agencies and the private

sectorsector► Public agencies and private sector Public agencies and private sector

organizations have a range of organizations have a range of relationships. Public agencies may relationships. Public agencies may regulate business activity and they regulate business activity and they may use them to deliver or may use them to deliver or implement a program.implement a program.


sectorsector► Public agencies and the private sector organizations Public agencies and the private sector organizations

have legal and political relationships that facilitate have legal and political relationships that facilitate interaction in some cases and cause conflict in interaction in some cases and cause conflict in others.others.

► A. Public agencies, like the Small Business A. Public agencies, like the Small Business Administration (SBA), provide assistance to private Administration (SBA), provide assistance to private firms as part of their regular, nondisaster, missions. firms as part of their regular, nondisaster, missions. SBA is also responsible for aiding small businesses in SBA is also responsible for aiding small businesses in the aftermath of disaster by providing low interest the aftermath of disaster by providing low interest loans for rebuilding.loans for rebuilding.

► B. Government agencies regulate business B. Government agencies regulate business practices, such as real estate development and practices, such as real estate development and building construction, to protect public health and building construction, to protect public health and safety.safety.


sectorsector► C. State and local governments are C. State and local governments are

increasingly regulating business practices in the increasingly regulating business practices in the aftermath of disaster to prevent price gouging, aftermath of disaster to prevent price gouging, fraud, substandard work, and other abuses.fraud, substandard work, and other abuses.

►D. State and local governments generally D. State and local governments generally regulate building standards to ensure regulate building standards to ensure resistance to known risks, such as seismic resistance to known risks, such as seismic hazards, wind storms, structural failures, and hazards, wind storms, structural failures, and fire.fire.

► E. Local governments generally regulate land-E. Local governments generally regulate land-use to limit and control building in floodplains, use to limit and control building in floodplains, in mudslide and rockslide areas, fire zones, and in mudslide and rockslide areas, fire zones, and other hazardous areas.other hazardous areas.


sectorsector► Governments may also contract with Governments may also contract with

private and nonprofit organizations to private and nonprofit organizations to deliver public services. deliver public services.

► The privatization of services like prisons The privatization of services like prisons and public schools has been very and public schools has been very controversial and has raised concerns such controversial and has raised concerns such as accountability to the public when private as accountability to the public when private organizations may argue that operational organizations may argue that operational information is proprietary (private) and not information is proprietary (private) and not subject to public scrutiny. subject to public scrutiny.


sectorsector► Public agencies may privatize government Public agencies may privatize government

activities in order to activities in order to ► Achieve cost savings,Achieve cost savings,► Bypass procedural requirements or financial Bypass procedural requirements or financial

constraints upon government activities,constraints upon government activities,► Hire personnel with special skills outside of Hire personnel with special skills outside of

civil service constraints on salary and/or civil service constraints on salary and/or benefits,benefits,

► Experiment with new policies or programs,Experiment with new policies or programs,► Reduce government visibility and, Reduce government visibility and,

therefore, political risks associated with therefore, political risks associated with controversial services,controversial services,

Public agencies may privatize Public agencies may privatize government activities in order government activities in order

to to ► Achieve cost savings,Achieve cost savings,► Bypass procedural requirements or financial Bypass procedural requirements or financial

constraints upon government activities,constraints upon government activities,► Hire personnel with special skills outside of Hire personnel with special skills outside of

civil service constraints on salary and/or civil service constraints on salary and/or benefits,benefits,

► Experiment with new policies or programs,Experiment with new policies or programs,► Reduce government visibility and, Reduce government visibility and,

therefore, political risks associated with therefore, political risks associated with controversial services,controversial services,

Public agencies may privatize Public agencies may privatize government activities in order government activities in order

toto► Enhance image of government by reducing Enhance image of government by reducing

the size of the public workforce, the size of the public workforce, ► Make use of expertise and experience of Make use of expertise and experience of

the private organization,the private organization,► Promote economic development by Promote economic development by

supporting local businesses,supporting local businesses,► Clarify the cost of public services by Clarify the cost of public services by

comparing the privatized service with comparing the privatized service with private services, and private services, and

► Provide an incentive for increased public Provide an incentive for increased public productivity (Henry, 2010: 279-281).productivity (Henry, 2010: 279-281).

PrivatizationPrivatization

► During emergencies, privatization can also During emergencies, privatization can also provide needed surge capacity to meet provide needed surge capacity to meet demands for services (Henry, 2010: 281).demands for services (Henry, 2010: 281).

► Approximately one-fourth of federal Approximately one-fourth of federal government discretionary spending, over government discretionary spending, over $430 billion per year, is spent on “contract $430 billion per year, is spent on “contract actions.” actions.”

The largest expenditures are for supplies and The largest expenditures are for supplies and equipment, research and development, equipment, research and development, construction projects, information technology, construction projects, information technology, and “other services” (Henry, 2010: 282). and “other services” (Henry, 2010: 282).

Much of the federal contracting is by the Much of the federal contracting is by the Department of Defense.Department of Defense.

PrivatizationPrivatization

► Public confidence in private delivery of public Public confidence in private delivery of public services is relatively low, however, and the services is relatively low, however, and the public often opposes privatization. The public often opposes privatization. The frequently expressed opinion that businesses frequently expressed opinion that businesses perform more efficiently and effectively than perform more efficiently and effectively than public agencies is not widely held (Henry, 2010: public agencies is not widely held (Henry, 2010: 281).281).

► OMB Circular A-76 that governs federal sourcing OMB Circular A-76 that governs federal sourcing was amended in 2003 to permit government was amended in 2003 to permit government agencies to compete for federal contracts, agencies to compete for federal contracts, recognizing that agencies may be as or more recognizing that agencies may be as or more efficient and effective as private sector efficient and effective as private sector organizations.organizations.

Advanced ExerciseAdvanced Exercise

►Discuss government contracting, Discuss government contracting, privatization, and other public/ private privatization, and other public/ private arrangements. What criteria should arrangements. What criteria should be used to determine what should or be used to determine what should or should not be entrusted to for-profit should not be entrusted to for-profit organizations? What problems might organizations? What problems might such arrangements pose for public such arrangements pose for public officials and public agencies and for officials and public agencies and for the public at large. the public at large.

Discussion questionsDiscussion questions

►What kinds of problems are associated What kinds of problems are associated with government contracting? with government contracting?

►Why might governments choose not to Why might governments choose not to privatize services? privatize services?

►What kinds of public services should What kinds of public services should not be privatized? Prisons? Public not be privatized? Prisons? Public schools? Security for public officials in schools? Security for public officials in the U.S. and abroad?the U.S. and abroad?

Roles of private Roles of private organizations in emergency organizations in emergency

management systemmanagement system► The roles of private sector firms and other for-The roles of private sector firms and other for-

profit organizations in the national emergency profit organizations in the national emergency management system are as complex as they are management system are as complex as they are varied, some in support of government varied, some in support of government activities, some in place of government activities, some in place of government activities, and others independent of the activities, and others independent of the governmental emergency management system.governmental emergency management system.

► The economic base of the community generally The economic base of the community generally depends upon the private sector. When the depends upon the private sector. When the private sector is unproductive, the community private sector is unproductive, the community suffers. Jobs are lost, necessities (e.g., food) are suffers. Jobs are lost, necessities (e.g., food) are unavailable, etc. Private firms represent a unavailable, etc. Private firms represent a critical component of the community and, thus, critical component of the community and, thus, are very much involved in the recovery process.are very much involved in the recovery process.

Private firms are involved asPrivate firms are involved as

► A. contractors providing or supporting A. contractors providing or supporting government services for a fee, government services for a fee,

► B. suppliers providing material to B. suppliers providing material to government and other for-profit disaster government and other for-profit disaster agencies, agencies,

► C. partners collaborating with government C. partners collaborating with government agencies in the delivery of services by prior agencies in the delivery of services by prior arrangement, andarrangement, and

► D. independent agents providing necessary D. independent agents providing necessary or desired services with or without a formal or desired services with or without a formal arrangement with government agencies arrangement with government agencies involved in the intergovernmental involved in the intergovernmental emergency management system. emergency management system.

Private servicesPrivate services

► As in other aspects of the American economy, As in other aspects of the American economy, private firms generally provide services that private firms generally provide services that either are not available from government either are not available from government agencies or can be delivered less expensively agencies or can be delivered less expensively than by government agencies. than by government agencies.

► Private services and products, however, may Private services and products, however, may be much more expensive and may not be as be much more expensive and may not be as effective as those provided by government effective as those provided by government agencies and nonprofit organizations. agencies and nonprofit organizations. Reliance on private sector services and Reliance on private sector services and products has to be evaluated on a case-by-products has to be evaluated on a case-by-case basis.case basis.

Private ServicesPrivate Services

► Entrepreneurial firms, particularly high-tech firms, Entrepreneurial firms, particularly high-tech firms, often offer goods and services that government often offer goods and services that government agencies cannot afford; that the agencies need so agencies cannot afford; that the agencies need so infrequently that they cannot justify purchase or infrequently that they cannot justify purchase or maintenance costs; or that are so new that maintenance costs; or that are so new that government agencies have not yet evaluated and government agencies have not yet evaluated and purchased them.purchased them.

► During disaster response and recovery efforts, During disaster response and recovery efforts, emergency response agencies often need emergency response agencies often need resources found in private firms, such as resources found in private firms, such as cranes and other heavy equipment, or cranes and other heavy equipment, or services not readily available through services not readily available through government agencies, such as stress government agencies, such as stress debriefings for victims and respondersdebriefings for victims and responders

Private sector rolePrivate sector role

► The private sector role in the national The private sector role in the national emergency management systememergency management system

► A. Over 80% of the nation’s critical A. Over 80% of the nation’s critical infrastructure is in private sector hands. infrastructure is in private sector hands. Protecting critical resources requires a Protecting critical resources requires a partnership between public sector partnership between public sector emergency management and Homeland emergency management and Homeland Security agencies and private firms.Security agencies and private firms.

► B. The private sector has resources B. The private sector has resources essential to emergency management, essential to emergency management, including technical expertise, logistics including technical expertise, logistics capabilities, and material such as food, capabilities, and material such as food, water, and ice.water, and ice.

FEMA partnershipsFEMA partnerships► FEMA and other emergency management agencies FEMA and other emergency management agencies

have developed partnerships with private firms for have developed partnerships with private firms for particular services or activities. particular services or activities.

► A. FEMA, for example, has a partnership with Home A. FEMA, for example, has a partnership with Home Depot to assist with residential and business Depot to assist with residential and business preparedness for disaster.preparedness for disaster.

► B. The Georgia Emergency Management Agency B. The Georgia Emergency Management Agency (GEMA) has a partnership with Home Depot for its (GEMA) has a partnership with Home Depot for its Ready Georgia program to teach children about Ready Georgia program to teach children about preparedness.preparedness.

► Some emergency management agencies are working Some emergency management agencies are working with insurance companies to speed up damage with insurance companies to speed up damage assessment. Insurance companies estimate property assessment. Insurance companies estimate property damage by use of formulae that include type of damage by use of formulae that include type of construction, building materials, square footage, etc.construction, building materials, square footage, etc.

Growing numbers of private Growing numbers of private sector emergency responderssector emergency responders

► A. For example, an emergency management consulting firm A. For example, an emergency management consulting firm may be hired to provide technical assistance for catastrophic may be hired to provide technical assistance for catastrophic planning and readiness training in the New Madrid Seismic planning and readiness training in the New Madrid Seismic Zone.Zone.

► B. The same firm organized the “Hurricane Pam” exercise B. The same firm organized the “Hurricane Pam” exercise that preceded Hurricane Katrina and alerted officials to that preceded Hurricane Katrina and alerted officials to problems in emergency planning, including evacuation problems in emergency planning, including evacuation planning, in Louisiana.planning, in Louisiana.

► C. The firm may be expected to develop a scenario-driven C. The firm may be expected to develop a scenario-driven catastrophic plan for earthquakes very similar to the catastrophic plan for earthquakes very similar to the “Hurricane Pam” exercise.“Hurricane Pam” exercise.

► D. Another consulting firm was hired to identify gaps in the D. Another consulting firm was hired to identify gaps in the emergency plans for a municipality and to recommend actions emergency plans for a municipality and to recommend actions to fill those gaps.to fill those gaps.

Growing numbers of private Growing numbers of private sector emergency responderssector emergency responders

► E. Private consultants generally have the E. Private consultants generally have the advantage of being less subject to the politics of advantage of being less subject to the politics of local communities and states and may be better able local communities and states and may be better able to develop unbiased plans and recommendations.to develop unbiased plans and recommendations.

► F. Private consultants offer technical expertise that F. Private consultants offer technical expertise that most communities and states do not have.most communities and states do not have.

► G. Critical infrastructure protection and other G. Critical infrastructure protection and other security issues require considerable technical security issues require considerable technical expertise and knowledge of the Homeland Security expertise and knowledge of the Homeland Security environment.environment.

► H. A problem with using private consultants, H. A problem with using private consultants, however, is that many do not have the expertise that however, is that many do not have the expertise that they claim to have (Leggiere, 2008). they claim to have (Leggiere, 2008).

Private sector rolePrivate sector role

► The private sector is very much a part of the The private sector is very much a part of the national emergency management system, as national emergency management system, as well as part of state and local, emergency well as part of state and local, emergency management systems. management systems.

► A. Public-private collaboration is essential A. Public-private collaboration is essential before, during and after disasters, and there before, during and after disasters, and there is increasing representation of private firms in is increasing representation of private firms in emergency operations centers.emergency operations centers.

► B. The private sector can assist with B. The private sector can assist with resource coordination, supply chains, and resource coordination, supply chains, and surge capacity.]surge capacity.]

► C. But, there are some regulatory and legal C. But, there are some regulatory and legal obstacles to collaboration (DRJ, 2007).obstacles to collaboration (DRJ, 2007).

Private sector services Private sector services ► 1. Construction firms can provide specialized equipment to remove 1. Construction firms can provide specialized equipment to remove

debris, move earth to create or reinforce levees, transport material, debris, move earth to create or reinforce levees, transport material, repair damaged infrastructure, etc., as well as to train equipment repair damaged infrastructure, etc., as well as to train equipment operators and advise volunteers on safety procedures. operators and advise volunteers on safety procedures.

► 2. Engineering firms can provide expert advice on building 2. Engineering firms can provide expert advice on building standards and practices, as well as advice and assistance in standards and practices, as well as advice and assistance in assessing damage to structures.assessing damage to structures.

► 3. Universities, public and private, can organize volunteers, provide 3. Universities, public and private, can organize volunteers, provide training for emergency personnel and public officials, provide public training for emergency personnel and public officials, provide public education on hazards and appropriate mitigation measures, provide education on hazards and appropriate mitigation measures, provide job counseling for those left unemployed, and provide temporary job counseling for those left unemployed, and provide temporary shelter to disaster victims. University faculty also may be able to shelter to disaster victims. University faculty also may be able to provide technical assistance.provide technical assistance.

► 4. Catering firms can provide food services to disaster victims and 4. Catering firms can provide food services to disaster victims and emergency responders because they understand food safety rules emergency responders because they understand food safety rules and are experienced in preparing meals for large numbers of people, and are experienced in preparing meals for large numbers of people, including the dietary restrictions of many special populations (e.g., including the dietary restrictions of many special populations (e.g., diabetics) and culturally based dietary requirements (e.g., kosher diabetics) and culturally based dietary requirements (e.g., kosher and halal diet rules). and halal diet rules).

Private sector servicesPrivate sector services► 5. Hotels can provide emergency shelter, emergency food 5. Hotels can provide emergency shelter, emergency food

services, and other services to disaster victims and services, and other services to disaster victims and emergency responders. emergency responders.

► 6. Hospitals can provide emergency shelter, emergency 6. Hospitals can provide emergency shelter, emergency food services, and counseling services, as well as emergency food services, and counseling services, as well as emergency medical care and training. medical care and training.

► 7. Freight companies and distributors can transport 7. Freight companies and distributors can transport emergency food and water, clothing, building materials, and emergency food and water, clothing, building materials, and other commodities.other commodities.

► 8. 8. Funeral homes and morticians can assist with managing Funeral homes and morticians can assist with managing mass casualties, including assisting with transport (which mass casualties, including assisting with transport (which requires knowledge of the laws governing storage and requires knowledge of the laws governing storage and transfer of human remains). transfer of human remains).

► 9. Building supply companies can provide lumber, plastic 9. Building supply companies can provide lumber, plastic sheeting, and other building materials.sheeting, and other building materials.

► 10. Retail stores can assist with the transport and distribution 10. Retail stores can assist with the transport and distribution of food, water, ice, and other essential items. of food, water, ice, and other essential items.

Coordination and Coordination and CollaborationCollaboration

►The International Center for Enterprise The International Center for Enterprise Preparedness (InterCEP) at New York Preparedness (InterCEP) at New York University is working to improve University is working to improve coordination and collaboration coordination and collaboration between the public and private sectors between the public and private sectors (Raisch, Statler, and Burgi, 2007).(Raisch, Statler, and Burgi, 2007).

►A. Greater collaboration between the A. Greater collaboration between the public and private sectors will increase public and private sectors will increase the effectiveness of disaster the effectiveness of disaster responses.responses.


► The business community needs to develop a The business community needs to develop a plan of action to:plan of action to:

► 1. Define a common standard for programs; 1. Define a common standard for programs; ► 2. Identify incentives and mandates for all 2. Identify incentives and mandates for all

parties in the national emergency parties in the national emergency management system, including management system, including governmental, business, and governmental, business, and nongovernmental organizations;nongovernmental organizations;

► 3. Work to overcome the obstacles that 3. Work to overcome the obstacles that inhibit public-private cooperation, including inhibit public-private cooperation, including concerns over legal liability and the conflicts concerns over legal liability and the conflicts that now interfere with collaboration.that now interfere with collaboration.


► . InterCEP recommends the creation . InterCEP recommends the creation of liaisons between the public and of liaisons between the public and private stakeholders and the private stakeholders and the establishment of a well-defined role for establishment of a well-defined role for the private sector.the private sector.

Impediments to cooperationImpediments to cooperation

InterCEP has outlined the major impediments to InterCEP has outlined the major impediments to public-private cooperation aspublic-private cooperation as

► ““A substantial perceptual and motivational divide” A substantial perceptual and motivational divide” that discourages cooperation;that discourages cooperation;

► The fact that emergency management is largely a The fact that emergency management is largely a governmental function with state governments governmental function with state governments being responsible for handling disasters;being responsible for handling disasters;

► Businesses, too, are focused on local threats to Businesses, too, are focused on local threats to their facilities, workers, and customers;their facilities, workers, and customers;

► Neither governments nor businesses see the need Neither governments nor businesses see the need to invest in community-level emergency to invest in community-level emergency management activities until there is a disaster;management activities until there is a disaster;

Impediments to cooperationImpediments to cooperation► When businesses do see the need to become When businesses do see the need to become

involved in disaster recovery activities, they are involved in disaster recovery activities, they are usually prompted to do so by media coverage of usually prompted to do so by media coverage of the disaster, and with little prior planning and little the disaster, and with little prior planning and little coordination with governmental agencies and coordination with governmental agencies and nongovernmental organizations; nongovernmental organizations;

► Without coordination with governmental agencies Without coordination with governmental agencies and nongovernmental organizations, the disaster and nongovernmental organizations, the disaster activities of businesses may do more harm than activities of businesses may do more harm than good; and, lastly,good; and, lastly,

► When nongovernmental organizations seek When nongovernmental organizations seek assistance from the private sector, they most often assistance from the private sector, they most often seek cash contributions rather than products and seek cash contributions rather than products and services or they seek assistance with logistics, services or they seek assistance with logistics, information technology, and communications.information technology, and communications.


► Governmental, private, and nongovernmental Governmental, private, and nongovernmental stakeholders would benefit from better stakeholders would benefit from better coordination and collaboration which would coordination and collaboration which would help them better address the needs of help them better address the needs of victims.victims.

► F. The need for greater business participation F. The need for greater business participation in disaster management is manifest. The risk in disaster management is manifest. The risk of disaster is increasing, often overwhelming of disaster is increasing, often overwhelming governmental and nongovernmental governmental and nongovernmental resources, and the private sector can assist in resources, and the private sector can assist in filling the gap.filling the gap.

Obstacles to using corporate Obstacles to using corporate resourcesresources

► 1. Governments tend to look to the nongovernmental sector 1. Governments tend to look to the nongovernmental sector and to other governments for assistance. They assume that and to other governments for assistance. They assume that private sector organizations will only become engaged when private sector organizations will only become engaged when they expect financial gain.they expect financial gain.

► 2. Recent government outreach to the private sector has 2. Recent government outreach to the private sector has tended to focus on particular events or on protection from the tended to focus on particular events or on protection from the terrorist threat. For example, government agencies have been terrorist threat. For example, government agencies have been working with the airlines and airports on the protection of civil working with the airlines and airports on the protection of civil aviation and with the rail companies on the protection of aviation and with the rail companies on the protection of railways.railways.

► 3. Similarly, the federal government has been trying to 3. Similarly, the federal government has been trying to encourage businesses to invest in preparedness activities to encourage businesses to invest in preparedness activities to reduce the vulnerabilities of the nation’s critical infrastructure.reduce the vulnerabilities of the nation’s critical infrastructure.

► 4. And, governments contract with businesses that have 4. And, governments contract with businesses that have critical skills or resources to deliver services, but do not critical skills or resources to deliver services, but do not generally involve the businesses in emergency planning.generally involve the businesses in emergency planning.

Obstacles to using corporate Obstacles to using corporate resourcesresources

► 5. A ‘cultural divide” exists between government and 5. A ‘cultural divide” exists between government and businesses and officials do not want to appear to be favoring businesses and officials do not want to appear to be favoring one business over another. In fact, one of the obstacles to one business over another. In fact, one of the obstacles to achieving communications interoperability has been the achieving communications interoperability has been the reticence of officials to choose among the vendors of reticence of officials to choose among the vendors of communications technologies.communications technologies.

► 6. The profit motive is suspect and business leaders are not 6. The profit motive is suspect and business leaders are not trusted to act in the public interest.trusted to act in the public interest.

► 7. Some information is sensitive and there is hesitancy on 7. Some information is sensitive and there is hesitancy on the part of government officials to share information with the part of government officials to share information with businesses.businesses.

► 8. National security and emergency management are 8. National security and emergency management are considered government responsibilities and, consequently, considered government responsibilities and, consequently, working with the private sector may be seen as working with the private sector may be seen as “inappropriate.” (Raisch, Statler, and Burgi, 2007: 7-8).“inappropriate.” (Raisch, Statler, and Burgi, 2007: 7-8).

DonationsDonations

►Given the focus on cash donations, the Given the focus on cash donations, the potential value of contributions of potential value of contributions of services, goods, and capabilities is services, goods, and capabilities is overlooked.overlooked.

►1. In many cases, contributions of 1. In many cases, contributions of goods and services are much easier goods and services are much easier for companies to make than for companies to make than contributions of cash.contributions of cash.

DonationsDonations

► Nongovernmental organizations too Nongovernmental organizations too frequently overlook private resources such asfrequently overlook private resources such as

► 11 . Goods, such as tents, beds, shelters, . Goods, such as tents, beds, shelters, etc.;etc.;

► Services, such as construction; Services, such as construction; ► 2. Volunteers; and, 2. Volunteers; and, ► 3. Competencies, such as logistics, 3. Competencies, such as logistics,

information technology, and communications information technology, and communications (Raisch, Statler, and Burgi, 2007: 9-10).(Raisch, Statler, and Burgi, 2007: 9-10).

Discussion QuestionsDiscussion Questions

► 1. What is necessary in order for governments 1. What is necessary in order for governments to work effectively with private organizations to work effectively with private organizations to improve emergency management?to improve emergency management?

► 2. What are the major obstacles to public-2. What are the major obstacles to public-private partnership in emergency private partnership in emergency management?management?

► 3. What impact does it have when 3. What impact does it have when governments simply focus on getting cash governments simply focus on getting cash donations from private organizations, rather donations from private organizations, rather than services and other resources?than services and other resources?

Discussion Questions:Discussion Questions:► 4. What kinds of government services in disasters 4. What kinds of government services in disasters

might be turned over to private firms? might be turned over to private firms? ► 5. What kinds of services should not be turned over to 5. What kinds of services should not be turned over to

private firms? Should private firms be responsible for private firms? Should private firms be responsible for determining eligibility for disaster assistance, determining eligibility for disaster assistance, coordinating emergency response agencies, or issuing coordinating emergency response agencies, or issuing evacuation orders?evacuation orders?

► 6. How might private sector organizations be engaged 6. How might private sector organizations be engaged in preparing the public for emergencies and disasters?in preparing the public for emergencies and disasters?

► 7. If services are provided by private sector 7. If services are provided by private sector organizations, how should public officials oversee the organizations, how should public officials oversee the delivery of services to assure that public monies are delivery of services to assure that public monies are spent appropriately and the services are delivered spent appropriately and the services are delivered effectively – i.e., that there is sufficient accountability?effectively – i.e., that there is sufficient accountability?

ExerciseExercise

►The roles that private sector firms and The roles that private sector firms and private individuals can play in the private individuals can play in the national emergency management national emergency management system are varied and numerous. system are varied and numerous. Identify other services and products Identify other services and products that may be provided by the private that may be provided by the private sector in support of emergency sector in support of emergency management functions.management functions.

Potential ConflictsPotential Conflicts

► I. Conflicts may arise between public I. Conflicts may arise between public agencies and private firms in disaster agencies and private firms in disaster operations when business is affected operations when business is affected by evacuation orders, security by evacuation orders, security precautions to prevent looting precautions to prevent looting interferes with business, access to interferes with business, access to business areas that might be business areas that might be damaged, disaster warnings scare off damaged, disaster warnings scare off tourists and other customers, etc. tourists and other customers, etc.

Prices for essential itemsPrices for essential items► The prices of goods and services are generally determined by The prices of goods and services are generally determined by

demand. In the aftermath of disaster, the demand for demand. In the aftermath of disaster, the demand for commodities (such as ice, bottled water, plastic sheeting, and commodities (such as ice, bottled water, plastic sheeting, and lumber) and for services (such as debris removal and roof lumber) and for services (such as debris removal and roof repair) is usually very high. repair) is usually very high.

► A. Private individuals and organizations can sell such A. Private individuals and organizations can sell such commodities and services for prices far above normal. commodities and services for prices far above normal. Charging exorbitant prices (“price gouging”) and failing to Charging exorbitant prices (“price gouging”) and failing to deliver promised services is often described as the “second deliver promised services is often described as the “second disaster.” disaster.”

► B. Increased gasoline prices might leave evacuees stranded B. Increased gasoline prices might leave evacuees stranded on highways and in remote areas without shelter and food.on highways and in remote areas without shelter and food.

► C. In the case of housing, exorbitant prices may well leave C. In the case of housing, exorbitant prices may well leave disaster victims without adequate shelter.disaster victims without adequate shelter.

► D. As a consequence, local, state, and federal governments D. As a consequence, local, state, and federal governments are increasingly outlawing such practices.are increasingly outlawing such practices.

Private firms in disastersPrivate firms in disasters

► Some communities have cordoned off disaster Some communities have cordoned off disaster areas and not permitted building repair people areas and not permitted building repair people or even “good Samaritans” wishing to assist in or even “good Samaritans” wishing to assist in reconstruction to enter the area unless they reconstruction to enter the area unless they have an agreement with one of the affected have an agreement with one of the affected property owners. Repair crews are not allowed property owners. Repair crews are not allowed to drive through the area and solicit business.to drive through the area and solicit business.

► Private firms affected by disaster have need of Private firms affected by disaster have need of government services and have to compete government services and have to compete with other firms, private individuals, and even with other firms, private individuals, and even governmental units (such as schools and governmental units (such as schools and public housing authorities) for limited recovery public housing authorities) for limited recovery resources. resources.


►Choices may have to be made Choices may have to be made regarding the distribution of scarce regarding the distribution of scarce resources to assure that public resources to assure that public services are restored and that disaster services are restored and that disaster victims receive the assistance that victims receive the assistance that they need.they need.


► Firms typically need assistance reopening Firms typically need assistance reopening roadways, rebuilding critical lifelines (such as roadways, rebuilding critical lifelines (such as water and sewer lines and utility lines), and water and sewer lines and utility lines), and replacing the damaged infrastructure to make replacing the damaged infrastructure to make the firm accessible to employees, suppliers, the firm accessible to employees, suppliers, and customers. and customers.

► A. Even if a firm is not damaged directly, it A. Even if a firm is not damaged directly, it may not be able to open for business because may not be able to open for business because it lacks water, power, or other necessary it lacks water, power, or other necessary services.services.

► B. Even if a firm is not damaged directly and B. Even if a firm is not damaged directly and can open for business, its products or services can open for business, its products or services may not be in demand because of the disaster. may not be in demand because of the disaster.

ExerciseExercise

► Are there issues of equity and fairness if high prices Are there issues of equity and fairness if high prices mean poor victims cannot afford critical items, such mean poor victims cannot afford critical items, such as food and water. as food and water.

► Also, is there a problem when more affluent victims Also, is there a problem when more affluent victims create demand for products and services that cause create demand for products and services that cause suppliers not to deliver essential goods for other suppliers not to deliver essential goods for other victims—such as encouraging suppliers to bring in victims—such as encouraging suppliers to bring in materials to repair pools and other nonessential materials to repair pools and other nonessential structures rather than materials to repair roofs or to structures rather than materials to repair roofs or to restore electrical power to homes? restore electrical power to homes?

► Do private firms have a responsibility to address Do private firms have a responsibility to address the needs of all residents in a disaster area? the needs of all residents in a disaster area?

ExerciseExercise

Business owners have made the arguments that Business owners have made the arguments that ► 1. Higher prices reduce the likelihood of people 1. Higher prices reduce the likelihood of people

hoarding scarce commodities, hoarding scarce commodities, ► 2. Higher profit encourages rapid restocking of 2. Higher profit encourages rapid restocking of

critical supplies, andcritical supplies, and► 3. Relying on the market is consistent with 3. Relying on the market is consistent with

“American values”“American values”

► What are the implications of these arguments What are the implications of these arguments for the distribution of supplies during disasters?for the distribution of supplies during disasters?


► 1. Following a disaster, should firms be 1. Following a disaster, should firms be required to keep their prices the same as they required to keep their prices the same as they were before the disaster? were before the disaster?

► 2. Should governments outlaw price 2. Should governments outlaw price increases, monitor business practices, and increases, monitor business practices, and fine those who do not comply with the law? fine those who do not comply with the law?

► 3. What kinds of goods and services might be 3. What kinds of goods and services might be in short supply following a disaster (in in short supply following a disaster (in addition to those listed above)?addition to those listed above)?

► 4. What arguments might a business owner 4. What arguments might a business owner make in favor of letting demand determine make in favor of letting demand determine prices during the response and recovery prices during the response and recovery phases of a disaster?phases of a disaster?

Conflicts between public Conflicts between public agencies and property ownersagencies and property owners

► Conflicts often arise between public Conflicts often arise between public agencies and property owners in disaster agencies and property owners in disaster mitigation.mitigation.

► Strict land-use regulation can limit the Strict land-use regulation can limit the development of private property and development of private property and reduce its value. reduce its value.

► This is known as the “takings issue” and This is known as the “takings issue” and has been challenged successfully in court has been challenged successfully in court even though the regulations were designed even though the regulations were designed to protect the community as a whole and to to protect the community as a whole and to reduce development in hazardous areas.reduce development in hazardous areas.


► Governments can use eminent domain to Governments can use eminent domain to take property for highway rights-of-way and take property for highway rights-of-way and other uses, including property that is located other uses, including property that is located in a hazardous area.in a hazardous area.

► Following the floods along the Mississippi Following the floods along the Mississippi River in 1994 and in most major flood River in 1994 and in most major flood disasters since, buyouts of property on the disasters since, buyouts of property on the floodplain has been the principal mitigation floodplain has been the principal mitigation measure to prevent future flooding. Owners measure to prevent future flooding. Owners were compensated so that they could move were compensated so that they could move away from the floodplain.away from the floodplain.


► Strict building codes increase the cost of Strict building codes increase the cost of construction for residential and commercial construction for residential and commercial building, but they also increase the value building, but they also increase the value of the structures because they are more of the structures because they are more disaster resistant. disaster resistant.

► FEMA has been encouraging safe FEMA has been encouraging safe construction practices to make homes and construction practices to make homes and businesses more disaster resistant, but it businesses more disaster resistant, but it has been a slow process to convince has been a slow process to convince builders to adopt the techniques and home builders to adopt the techniques and home buyers to ask for them (Waugh, 2002). buyers to ask for them (Waugh, 2002).

Safe construction practicesSafe construction practices

► Safe construction practices include such Safe construction practices include such things as things as

Assuring that structures are adequately secured Assuring that structures are adequately secured to their foundations,to their foundations,

Using hurricane straps and other inexpensive Using hurricane straps and other inexpensive methods to secure roofs to walls and assure methods to secure roofs to walls and assure flexibility in high winds,flexibility in high winds,

Using adhesive to secure roofing material to Using adhesive to secure roofing material to roofs so that they are less vulnerable to high roofs so that they are less vulnerable to high winds, andwinds, and

Using shatterproof glass and shutters on Using shatterproof glass and shutters on windows so that they are less vulnerable to high windows so that they are less vulnerable to high winds and flying debris (Waugh, 2002).winds and flying debris (Waugh, 2002).

Hazards and property valuesHazards and property values

► Disclosure of hazards can also Disclosure of hazards can also reduce the value of property and reduce the value of property and state laws may mandate that state laws may mandate that property owners disclose to property owners disclose to potential buyers hazards such as potential buyers hazards such as locations on or near fault lines, in locations on or near fault lines, in landslide areas, or wildfire areas.landslide areas, or wildfire areas.


► 1. If a government restricts the development 1. If a government restricts the development of privately owned land, should the owner be of privately owned land, should the owner be compensated for the loss in value that might compensated for the loss in value that might result?result?

► 2. Should private firms and individuals be 2. Should private firms and individuals be permitted to develop property despite known permitted to develop property despite known hazards if they assume responsibility for any hazards if they assume responsibility for any losses, assure that the development will not losses, assure that the development will not make neighboring properties more vulnerable, make neighboring properties more vulnerable, and are not eligible for government and are not eligible for government assistance?assistance?


► 3. Should property owners be permitted to 3. Should property owners be permitted to build homes along beachfronts when their build homes along beachfronts when their usage of the property might cause damage to usage of the property might cause damage to dunes, beach grasses, and other elements dunes, beach grasses, and other elements that provide protection from storm surges that provide protection from storm surges and, therefore, increase the risk to other and, therefore, increase the risk to other property owners. property owners.

► 4. What restrictions should be placed on 4. What restrictions should be placed on development on barrier islands, along development on barrier islands, along seashores, along rivers and lakes, on seashores, along rivers and lakes, on floodplains, in mountainous areas prone to floodplains, in mountainous areas prone to avalanches or landslides? avalanches or landslides?

Common interestsCommon interests

► Public agencies and private firms and Public agencies and private firms and individuals have common interests in individuals have common interests in effective emergency management.effective emergency management.

► Disasters can mean that employees cannot Disasters can mean that employees cannot get to work, power and water are cut off, get to work, power and water are cut off, customers cannot get to businesses to customers cannot get to businesses to purchase goods and services, and public purchase goods and services, and public order and safety are be threatened.order and safety are be threatened.

► Closed businesses can increase slow Closed businesses can increase slow recovery and the social costs of disaster recovery and the social costs of disaster because victims cannot afford necessary because victims cannot afford necessary goods and services, such as food and goods and services, such as food and clothing.clothing.


► Closed businesses reduce tax Closed businesses reduce tax revenue and other community revenue and other community resources necessary for recovery.resources necessary for recovery.

► Insurance and mortgage companies Insurance and mortgage companies have a vested interest in the have a vested interest in the regulation of land-use and building regulation of land-use and building standards that reduce risk to standards that reduce risk to property and life and, thus, their property and life and, thus, their exposure to losses.exposure to losses.


► The insurance industry is encouraging public and The insurance industry is encouraging public and private sector activities to reduce disaster losses. private sector activities to reduce disaster losses. The catastrophic losses during Hurricanes Hugo The catastrophic losses during Hurricanes Hugo and Andrew and the Loma Prieta and Northridge and Andrew and the Loma Prieta and Northridge Earthquakes gave impetus to such efforts. Earthquakes gave impetus to such efforts. Subsequent disasters, including Hurricanes Subsequent disasters, including Hurricanes Katrina, Rita, and Wilma, have encouraged some Katrina, Rita, and Wilma, have encouraged some companies to reduce their exposure by reducing companies to reduce their exposure by reducing the number of policies in coastal communities. the number of policies in coastal communities.

► FEMA has been developing partnerships with FEMA has been developing partnerships with private sector organizations to facilitate private sector organizations to facilitate cooperation prior to, during, and following cooperation prior to, during, and following disasters. disasters.

Accelerated accessAccelerated access► A 1997 meeting focused on “accelerated access” to A 1997 meeting focused on “accelerated access” to

disaster areas so thatdisaster areas so that businesses can implement their own recovery procedures, businesses can implement their own recovery procedures,

including assessing damage, securing property, and including assessing damage, securing property, and reopening for business, to increase the likelihood of reopening for business, to increase the likelihood of survival;survival;

businesses can restore their own operations to reduce businesses can restore their own operations to reduce economic losses, maintain relationships with customers economic losses, maintain relationships with customers and suppliers, and plan for future operations;and suppliers, and plan for future operations;

communities can restore the economic infrastructure as communities can restore the economic infrastructure as quickly as possible to reduce unemployment, provide quickly as possible to reduce unemployment, provide needed goods and services, and reduce losses in tax needed goods and services, and reduce losses in tax revenue;revenue;

training programs can be developed for company training programs can be developed for company emergency responders; andemergency responders; and

disaster awareness programs can be created to improve disaster awareness programs can be created to improve the capacities of communities to reduce hazards and the capacities of communities to reduce hazards and respond to disasters.respond to disasters.

Accelerated accessAccelerated access

communities can restore the economic communities can restore the economic infrastructure as quickly as possible to reduce infrastructure as quickly as possible to reduce unemployment, provide needed goods and unemployment, provide needed goods and services, and reduce losses in tax revenue;services, and reduce losses in tax revenue;

training programs can be developed for training programs can be developed for company emergency responders; andcompany emergency responders; and

disaster awareness programs can be created disaster awareness programs can be created to improve the capacities of communities to to improve the capacities of communities to reduce hazards and respond to disasters.reduce hazards and respond to disasters.

Accelerated accessAccelerated access

► ““Accelerated access” requires control Accelerated access” requires control and identification processes (e.g., and identification processes (e.g., badges) to ensure that unauthorized badges) to ensure that unauthorized individuals are not permitted into the individuals are not permitted into the disaster zone. A common credential, a disaster zone. A common credential, a “Company Disaster Response Team” “Company Disaster Response Team” (CDRT) badge, recognizable to federal, (CDRT) badge, recognizable to federal, state, and local law enforcement and state, and local law enforcement and emergency management personnel, emergency management personnel, was recommended.was recommended.

PartnershipsPartnerships

► Partnerships between emergency Partnerships between emergency management agencies and private management agencies and private firms canfirms can

facilitate cooperation and the sharing of facilitate cooperation and the sharing of resources;resources;

encourage disaster planning and encourage disaster planning and mitigation efforts by private firms; andmitigation efforts by private firms; and

develop a broad constituency within a develop a broad constituency within a community for hazard mitigation and community for hazard mitigation and preparedness programs.preparedness programs.

PartnershipsPartnerships

► Disasters can cause so much damage Disasters can cause so much damage that insurers are threatened with that insurers are threatened with bankruptcy, even if they have bankruptcy, even if they have reinsurance to cover extraordinary losses. reinsurance to cover extraordinary losses. In fact, insured losses during catastrophic In fact, insured losses during catastrophic disasters may exceed the reserves of disasters may exceed the reserves of reinsurance companies. reinsurance companies.

► Catastrophic damage from Hurricane Catastrophic damage from Hurricane Andrew and the Northridge Earthquake is Andrew and the Northridge Earthquake is encouraging proposals for “all-hazards” encouraging proposals for “all-hazards” insurance to be provided by private insurance to be provided by private insurance companies but underwritten or insurance companies but underwritten or reinsured by the federal government.reinsured by the federal government.


► 1. Should the federal government underwrite 1. Should the federal government underwrite disaster insurance to prevent private disaster insurance to prevent private insurance companies from being insurance companies from being overwhelmed by catastrophic disasters?overwhelmed by catastrophic disasters?

► 2. Should the federal or state governments 2. Should the federal or state governments require the owners of property in very require the owners of property in very hazardous areas to get insurance as a hazardous areas to get insurance as a condition for receiving disaster assistance, as condition for receiving disaster assistance, as is done with the National Flood Insurance is done with the National Flood Insurance Program?Program?

► 3. How might private insurance companies 3. How might private insurance companies require property owners to reduce the risk to require property owners to reduce the risk to their property? their property?

The EndThe End

Documents

Session 5 Disasters and the Private Sector Public Administration and Emergency Management