Effective and Sustainable Disaster Recovery The Role of the Private Sector

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1 Effective and Sustainable Disaster Recovery The Role of the Private Sector Draft Exposure Paper commissioned by the Prudence Foundation and prepared by CSR Asia Richard Welford, Chairman, CSR Asia

2 Purpose of the Exposure Paper Practical guidance for businesses looking to make effective and sustainable contributions in disaster recovery Case studies of best practice to stimulate innovative ideas Agenda for action for collaborative efforts that leverage business expertise, resources and networks

3 The context of disaster recovery There are great needs after high-impact disasters but recovery is also about opportunities Recovery is not about rebuilding pre-disaster conditions but about improving long-term development opportunities Opportunity to rebuild better and leave communities better prepared and able to cope with future disasters Huge role for the business sector in providing financial and nonfinancial resources To date private sector involvement has been marginal we want to explore what the role of the private sector is and how to overcome barriers to engagement Preparedness for disaster recovery

4 Areas for strategic business engagement Sustainable reconstruction Livelihood recovery Leveraging local markets Inclusive business models

5 Sustainable reconstruction

6 Sustainable reconstruction Reducing disaster risks through improved building practices and providing employment and skills training opportunities Building local capacity for quality reconstruction through training local builders and masons Provide man-power in labour-intensive rebuilding efforts Provide equipment such as generators, vehicles, earth moving equipment Innovation through new materials and building practices Support emergency employment through funding or provision of protective equipment Leverage business networks, supply chains, and relationships with key stakeholders as well as knowledge of regulatory frameworks Advocate for integration of disaster risk reduction in rebuilding efforts and for enforcement of building codes and planning laws

7 Livelihood recovery

8 Livelihood recovery Supporting replacement of productive assets and long-term incomegenerating opportunities Leverage business networks and provide funding for the provision of livelihood assets, technology and equipment in reinitiating incomegenerating activities Support shipping, logistics and distribution of donated assets Lend business expertise in providing business skills, financial management and technical training such as more effective agricultural practices for smallholder famers or marketing training for craftsmen Support access to markets through own sourcing practices

9 Leveraging local markets

10 Leveraging local markets Leveraging local markets, finance and value chains Support post-disaster market chain analysis to identify most effective forms of assistance along an entire supply chain and including all market players Help innovate new products, processes and services that put financial resources in the hands of key market players Support Cash Transfer Programmes (CTPs) that provide beneficiaries either direct cash hand-outs or electronic cash transfers through mobile phones or smart cads thereby giving impetus to local markets Provide technology, new platforms, and networks (e.g. mobile ATMs and agent networks) to strengthen reliability and reach of CTPs Help design CTPs that provide an entry point into financial inclusion through financial literacy training

11 Potential for inclusive business models

12 Potential for inclusive business models Support the long-term economic recovery of vulnerable communities by including low-income communities into value chains Value chain inclusion: integrate MSMEs in commodity value chains and include community vendors in micro distribution and retail models Business continuity planning: build capacity of MSMEs in the value chain to ensure their business continuity in times of natural disasters Smallholder procurement and local sourcing practices: support smallholder farmers, small-scale producers, and fishermen to become reliable sources of quality supply through business development training, third party financing, etc. Create long-term employment and education opportunities Advocate for greater integration of MSMEs in national disaster risk reduction plans and secure land tenure for marginalised groups

13 Cargill: Working with coconut farmers Partnership with Philippine Business for Social Progress in response to typhoon Yolanda Aim: rehabilitate livelihoods of tenant coconut farmers in parts of Leyte province, country s second largest coconut producing region Activities: Establish coconut nursery for the propagation of seedlings (around 70,000 seedlings per year) Replant 600 hectares with fast-growing coconut variety and intercropped with corn as short-term gestation crop over two years Establish two 5,000 square metre demonstration farms to promote cash crop production and showcase integrated farming systems technology Train 400 farmers on integrated farming systems and organise them in farmers association Vision: over the long-term develop an inclusive business model including the sourcing of coconut materials and other crops for use in Cargill s primary product processing operations

14 ExxonMobil: Working with silversmiths Partnership with Gadjah Mada University in the aftermath of 2007 Yogyakarta earthquake (central Java, Indonesia) Aim: rebuild and strengthen the livelihoods of local silversmiths as well as supporting social inclusion and cultural identity Target: 40 low-income silversmiths Activities: training on product-based ordering systems and product marketing, creation of a product catalogue and website, support in attending national and international exhibitions

15 Habitat for Humanity: Working with women In partnership with Indian NGO the Centre for Action, Development, Research and Education (CADRE) in aftermath of 2004 Indian Ocean tsunami July 2006: one-month mason training for fifty female members of a self-help group in Colachel, Tamil Nadu Programme achievements: Six months after programme completion: women hired as full-time masons or formed work crews to repair and renovate broken structures in their own villages Mary, a middle-aged, unmarried woman, could afford building her own house and take on her nephews as apprentices Women all believed that careless construction will no longer be tolerated in their villages

16 A call to action 1. Work in collaboration with the humanitarian, development and government sector that have a good understanding of community needs, with an emphasis on vulnerable and marginalised people. 2. Conduct thorough assessments to ensure interventions do not lead to market distortions, environmental damage, aid dependency and other unintended consequences. 3. Leverage local capacity to empower communities to lead their own recovery process, encourage people to build back better and increase disaster preparedness for the future. 4. Focus on livelihood-based approaches that reduce vulnerabilities and build resilience through the strengthening of income-generating activities and the provisions of innovative financial services. 5. Aim to improve the long-term development capacity of affected communities and help make provisions for a more sustainable development, protecting ecosystems and reducing poverty.

17 Thank you

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