Public-Private Partnerships and Disaster Resilience

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1 CSR Asia 2010 Public-Private Partnerships and Disaster Resilience Draft version of principles for APEC economies Leena Wokeck

2 2 Background Draft discussion paper on PPPs and Disaster Resilience Assist in the development of common understanding among APEC Member Economies on PPP and disaster resilience Preliminary list of APEC principles Starting point for further discussion within the APEC community on a common approach towards PPP and disaster resilience. Provide guidance in establishing a comprehensive all-hazard approach based on cooperation and collaboration

3 About us Business Solutions to Global Challenges Unique expertise Advising some of the most recognized CSR companies in Asia Tracking the latest developments in Asia Pacific through ongoing research projects (with universities and for NGOs and corporate clients) to provide CSR Intelligence Experienced team A team of over 25 experienced professionals with combined experience in all aspects of CSR Strategic partners Over 60 local and international organisations striving to improve their CSR Strategic presence in Asia Bangkok Beijing Dhaka Guangzhou Ho Chi Minh City Hong Kong Kuala Lumpur Shanghai Singapore Sydney Tokyo Capacity building Ongoing and comprehensive CSR training courses CSR Asia Weekly newsletter with over 10,000 readers globally Monthly CSR Wednesday briefings & annual CSR Asia Summit CSR blog CSR Asia Community Development Foundation

4 4 Our corporate strategic partners include 4

5 5 Our corporate strategic partners (continued) CSR Asia in Thailand Joint venture partnership with the Asian Institute of Technology 5

6 6 Public Private Partnerships The term public private partnership describes a range of possible relationships among public and private entities infrastructure, other services, development, disaster resilience PPPs present a framework that while engaging the private sector acknowledge and structure the role for government in ensuring that social obligations are met and successful sector reforms and public investments achieved. Key motivations for governments? to attract private capital investment (often to either supplement public resources or release them for other public needs); to increase efficiency and use available resources more effectively; and to reform sectors through a reallocation of roles, incentives, and accountability. What s in it for business? Businesses are increasingly realizing their challenges and opportunities in contributing to the solution of global challenges Government mandates in socioeconomic governance and infrastructure provision make them attractive partners for business opportunities in these areas Source: ADB Handbook on PPPs, 2008

7 7 Disaster Resilience The ability of a system, community or society exposed to hazards to resist, absorb, accommodate to and recover from the effects of a hazard in a timely and efficient manner, including through the preservation and restoration of its essential basic structures and functions. Resilience means the ability to resile from or spring back from a shock. UN/ISDR 2009 Ability or capacity of physical or human systems to respond to and recover from the impacts of extreme events and to minimize disruptions to structures and functions In order to build and maintain resilience one has to work on all phases of disaster preparedness, mitigation, response, and recovery

8 8 Business Resilience Business disruptions from disasters: Direct impacts: loss of assets and productivity, loss of revenue, delayed product availability Extended impacts affect employees, customers, business partners Disaster impacts on business can upset entire industry or economy Challenges and starting points for PPPs Higher interdependencies in production processes and global value chains have increased the likelihood of business interruptions following a natural disaster Many corporate risk management systems do not make adequate provisions for high-impact, low-probability events SMEs at greatest risks as disasters can put them out of business

9 9 Resilience of Critical Infrastructure Critical infrastructure Assets, networks and supply chains that support the delivery of essential services Their disruption or destruction would result in serious impact on social and economic wellbeing and national security Utilities, communications, banking and finance, national health and defence Challenges and starting points for PPPs Complex, highly connected and interdependent systems Owner/operator knowledge of their assets position with complex infrastructure systems Security issues around CI site information Majority of CI is in private hands

10 10 Case studies business resilience Safeguard Iowa Partnership, U.S. Voluntary coalition of state s business and government leaders Facilitates the unified management of capabilities during an incident Private sector contributions: resources, expertise, financial support Secure web-based catalogue for emergency assets of private sector partners Voluntary Private Sector Preparedness Accreditation and Certification Program Company can get certified by an accredited third party based on selected standards Periodic reassessment and auditing process

11 11 Case studies CI Resilience National Disaster Resilience Strategy, Australia Whole-of-nation resilience-based approach National Emergency Management Committee: to drive and coordinate national policies and capability development National Critical Infrastructure Resilience Committee: national coordination mechanism for consultations with State and Territory governments Trusted Information Sharing Network, Australia (TISN) Whole-of-nation resilience-based approach Members include: CI owners/operators, government agency representatives (national, state, territory), peak national bodies Information sharing and collaboration fostered through sector-specific and crosssectoral activities 7 TISN sector-groups reporting to Attorney General via CI Advisory Council

12 12 Community resilience The continued ability of a community to organise itself to minimize effects of disasters and to recover quickly by restoring socio-economic vitality Poverty increases vulnerability constrains access to crucial assets and services Environmental stresses increase vulnerability put critical ecological services at risk Women play a crucial role in all stages of disaster management amongst most vulnerable groups and pivotal managers of natural resources Informal economic activities are important factor for local economy and livelihoods

13 13 Community resilience & private sector Community resilience the business case Business needs functioning community to operate Building disaster resilience requires a combined response by private and public sector players Companies are well staffed and equipped to handle disaster response and recovery activities Challenges and starting points for PPPs Companies need to think outside the fence of own operations and of how they can contribute to building resilience in a community and towards ensuring the overall stability of the economic environment Move from focus on disaster response preparedness and relief to see broader picture of disaster resilience

14 14 Engaging business in building resilience Business resilience Physical assets Product processes Operation and management Private Sector Business value chain Disruptions in supply chain Industry-wide sector initiatives Policy advocacy Customers and partners Broader network/environment Ecosystem impacts Health impacts Economic impacts Social and cultural impacts

15 15 Conclusions Business disruptions can lead to major economic losses and significantly impact the long-term growth of national economies Safeguarding companies from business disruptions is a public interest Similarly, community disaster resilience is in the interest of the private sector and the private sector is in a good position to help communities Private sector expertise and capacities, however, need to be further mobilised for collaborative efforts to build disaster resilience Achieving resilience in an economy requires a comprehensive, all-hazards, cross-sector, integrated approach that is based on horizontal and vertical cooperation and coordination of key public, private, and non-profit stakeholders as well as individuals

16 16 Please submit comments, inputs, and additional case studies 13 Draft principles THANK YOU

17 17 Draft APEC Principles on PPPs and Disaster resilience Draft discussion paper on PPPs and Disaster Resilience Assist in the development of common understanding among APEC Member Economies on PPP and disaster resilience Preliminary list of APEC principles Starting point for further discussion within the APEC community on a common approach towards PPP and disaster resilience. Provide guidance in establishing a comprehensive all-hazard approach based on cooperation and collaboration

18 18 Draft Principles 1. A national, coordinated and cooperative approach is required to enhance an economy s disaster resilience. This approach needs to be based on collaborative partnerships across all levels of government, the non-government sector, business, and individuals. 2. Strategic approaches for working with the private sector and setting-up frameworks for public-private partnerships should be developed and strengthened. The private sector needs to be engaged in collaborative initiatives to build disaster resilience at local and national level with the aim to enhance both the capability of the public and the private sector to respond to and recover from disasters. Regular information sharing, emergency planning, and evacuation drills are crucial in building resilience. 3. Partnerships are to be based on shared responsibilities and clearly assigned roles and tasks that engage the private sector not merely as a source of funding but as partners in long-term efforts to build community resilience.

19 19 Draft Principles 4. Platforms for regular dialogue and sharing of best practices and lessons learned need to be enhanced to raise awareness of the potential of public-private partnerships and help establish responsible and good practice. 5. Existing public and private sector protective or resilience programs should be identified, leveraged, and built-upon to avoid duplication and ensure costeffectiveness. 6. Public-private partnerships aiming to build disaster resilience in an economy are to be understood as learning journeys where mistakes are allowed to be rectified and learnt from. As such partnerships need to be open to new and innovative ways of working together and allow for some flexibility to adapt the partnership as it evolves.

20 20 Draft Principles 7. Ad-hoc informal public-private partnerships in the aftermath of disasters are crucial in disaster response and relief efforts and provide a valuable starting point to build strategic long-term collaborative engagement of the private sector in building disaster resilience. Existing post-disaster pro-bono collaborations need to be further developed and sector-wide engagements to be encouraged. 8. There is a need to collaborate with relevant private-sector actors to further develop tools and models required to facilitate and catalyse deeper private sector engagement in building disaster resilience in an economy. This should involve tools to measure and communicate results as well as understand and evaluate performance of PPPs. 9. The integration of small- and medium sized enterprises and companies has to be enhanced as they play a key role in building local livelihoods and thus contribute to disaster resilience of local communities. These companies need to be supported in efforts to build business resilience.

21 21 Draft Principles 10.The consideration of the informal economic sector and the crucial role of women in local communities has to be enhanced. Both play a fundamental role in building and maintaining livelihoods and hence the ability of a community to prepare for, mitigate, respond to and recover from disasters and other disruptive events. 11. Building local capacity should be a key concern in building disaster resilience and local and national actors need to play a leading role in such efforts.

22 22 Additional Draft Principles [ADD] Partnerships should be fully funded and staffed. Rather than rely on good will or personality-based leadership, long term success is developed through consistent and adequate funding, dedicated staff, and the resources needed to build and grow the partnership. Government sponsors should consider dedicating a funding stream to support. [ADD] Partnerships may contain similar characteristics, but they should allow for flexibility in their approach to better incorporate regional opportunities, risks, political situations, and other unique features. This tailored approach will enable partnerships to focus resources and funding where it can make the most impact.

23 THANK YOU Leena Wokeck

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