52941 EAP DRM KnowledgeNotes Working Paper Series No. 5 disaster Risk management in east asia and the pacific Reestablishment of RuRal seRvices and Revitalization of RuRal economy By Andrew Goodland inteRnational expeRience This note presents relevant interventions that have aimed to stimulate rural economies following a natu- ral disaster based on case studies from the Philippines, © Photos.com Turkey, and Pakistan. philippines In July 1990, an earthquake registering 7.7 on the Richter scale hit Luzon, Philippines, causing widespread loss of life and destruction. Luzon is a rural area, dependent on irrigated agricultural production. Earthquake reconstruction project: Irrigation facilities and systems were one of the key types of public infrastructure targeted for reconstruction. Reconstruction covered 19 national and 567 communal irrigation schemes and restored over 127,000 hectares of land to full productivity. To mitigate against future earthquake damage, efforts were made to improve slope stability, including piloting the use of Vetiver grass. Given that a large part of the damage caused by the earthquake involved siltation, the stabilization of slopes was intended to prevent the need for future dredging. turkey Turkey is frequently hit by earthquakes. The World Bank financed three emergency reconstruction projects dur- ing the 1990s. Although the focus was on urban reconstruction and restoration of infrastructure, rural areas were targeted too. Barn reconstruction: In rural areas, barns collapsed as a result of the Erzincan earthquake, which occurred in March 1992, measuring 6.8 on the Richter scale. In response, the World Bank financed Erzincan Earthquake Rehabilitation and Reconstruction Project planned to fund the reconstruction of 4,100 storage and livestock barns and to distribute 10,900 animals in order to restore lost capital. This was the first physical component completed, and the results were This working paper series is produced by the East Asia and Pacific Disaster Risk Management Team of the World Bank, with support from the Global Facility for Disaster Reduction and Recovery (GFDRR). This note was prepared for the Government of China as part of a series of good practice notes on post-disaster recovery following the Wenchuan Earthquake that struck on May 12, 2008. Content was coordinated by the China and Mongolia Sustainable Development and Country Management Units of the World Bank. The focus is on sector-specific lessons from past post- earthquake recovery programs in different countries around the world. 2 disaster Risk management in east asia and the pacific mixed. While project beneficiaries built 2,885 barns with cies in each district. For example, the decision to relo- lump-sum payments for construction materials, the total cate or rebuild destroyed villages followed a transparent was lower than the original figure due to inaccurate dam- and participatory approach to assess the wishes of the age estimates. Moreover, many barns were used for pur- villagers and discuss the costs of different options. Lo- poses other than housing livestock because as designed, cally elected bodies were also given a significant role. the insulation was inadequate for winter temperatures. In some cases the barns were used for livestock in the sum- lessons leaRned mer and storage in the winter. Caution on introducing innovation when rebuilding productive infrastructure: Introducing new, untested Cash transfers: A cash transfer program was imple- infrastructure methods or designs involves careful analy- mented following the earthquake registering 7.4 on the sis and may delay reconstruction. If this level of analysis Richter scale in Marmara on 17 August 1999. The aim of is not completed, the reconstructed infrastructure may the World Bank financed project was to provide income not meet expectations. For example, in Turkey, follow- support, especially to displaced persons and other groups ing the Erzincan earthquake, new earthquake-resistant made vulnerable by the earthquake, since employment barns were built according to designs approved by the opportunities were scarce and local economies were al- state. However, the insulation was insufficient for such most nonfunctional. In parallel, longer-term reconstruc- an intemperate region so farmers abandoned the barns tion efforts were started. Providing immediate cash assis- or used them for other purposes. In reconstruction tance for victims gave the recipients the flexibility in us- work, relying on simple, well-tested, and easily scalable ing the funds to meet their priority needs. This approach solutions may be more efficient if an appropriate level of was preferred to providing goods in-kind, which may or analysis of innovation is not available. may not have been appropriate to the needs. Concentrate efforts on short-term, temporary fixes pakistan that get the local economy moving again: The priority The South Asia Earthquake (Afghanistan, India, and for farmers and for other businesses is to reestablish their Pakistan) on 8 October 2005 resulted in high losses of livelihoods as soon as possible. For farmers this means life and devastation of livelihoods. Many of the people getting back to their land and/or livestock to maintain affected were dependent on the agriculture sector. The seasonally driven activities. This need to restart econom- Government of Pakistan provided a number of short- and ic activities is often more urgent than the reconstruction medium-term measures to help the sector recover, includ- of dwellings or other critical infrastructure. ing the provision of animal feed, maize and vegetable seed, and fertilizers. Reestablishing the maize sector was given The livestock sector should emphasize: (i) addressing the highest priority since maize provides a staple supply of environmental risks from large numbers of dead ani- nutrition and is also suited for animal feed. mals, and (ii) maintaining the livestock that survived the earthquake. In this regard, providing sources of animal The medium-term response focused on rebuilding ru- feed may be preferred to reconstruction of barns and ral livelihoods through community-driven approaches. animal shelters, especially during the summer months. Community rehabilitation plans formed the basis of all activities at the community level. In practice, the reha- Cash transfers to stimulate local economic activity bilitation process built on the existing experience and provide quick, valued assistance: Cash transfers can be strength of the communities and implementing agen- effectively and accurately administered on a large scale. Reestablishment of rural services and revitalization of rural economy 3 Critical to success is using institutions with cash trans- province in its use, Chinese scientists and Sichuan farm- fer experience, human resources, and management sys- ers have a unique opportunity to implement to scale. In tems in place. Getting cash support to victims quickly either case, a quick resumption of agricultural activity is can positively affect the economy and may provide a necessary, which requires an efficient distribution chain. sense of safety and security. In Turkey, the cash transfer A simple voucher system, even with to the potential for program was a prominent first sign of the government's leakages, could be considered. support in a time of acute need. For more information, Cash transfers: Direct transfers to earthquake victims see the Social Protection and Livelihoods note. may be the most effective way to stimulate the local economy. An accurate list of victims would provide the Recommendations basis for the transfers. Transfers would be cash rather Direct credit to stricken industries: Stimulating local than goods, and recipients would be able to use the cash industry is a key challenge. Experience shows that re- for any purpose. building and reequipping to pre-earthquake conditions may not be the most efficient method. Ultimately, the Irrigation rehabilitation: The severity of damage to ir- decision of what is rebuilt and what equipment and rigation systems may be unclear immediately after the technologies are fitted should lie with the businesses disaster, though it is likely that many channels could be and entrepreneurs. The government can support this by cracked and/or blocked by landslides. Although it may providing credit for affected businesses. One example be possible to identify some quick solutions, in the case is to provide compensation to businesses for losses be- of China, the full rehabilitation of the irrigation system is yond their control, and the likely loss of income during not likely to be completed before winter. The focus should the reconstruction phase. Since a subsidy is involved, be on having as much of the systems as possible function- these lines of credit should be one-off opportunities to ing prior to the upcoming spring growing season. local businesses. Normal collateral requirements, which would usually be the very building and equipment de- Migration: The area hit is not a particularly productive stroyed by the earthquake, may need to be waived. In area for agriculture and rural industry. Although the addition, the government could consider further com- swine industry was strong, even with the infrastructure pensation through temporary tax holidays. restored and agricultural systems and industry func- tioning again, the area is unlikely to become particularly Seed, fertilizer, and animal feed distribution programs: wealthy. Reconstruction pressures could be reduced by The most pressing agricultural need is for seed, fertil- giving residents of affected areas the choice of moving izer, and animal feed. Where possible, this could be permanently to unaffected towns and cities, especially if sourced locally; it is more likely to be purchased and a sponsoring family member had already migrated and transported from outside the province. With regard to successfully established prior to the earthquake. (See seed type, two factors are of influence: the time needed Urban Development note.) to bring irrigation areas back into production and the opportunity to capitalize on existing knowledge. Of the Rural housing: Using funding from the cash grants, former, greater areas of rain-fed crop would address a it may be optimal that rural housing be rebuilt by the lack of infrastructure (i.e., maize grown in fields nor- families themselves, or small local contractors reporting mally reserved for rice paddy). And the latter, as the to the families in cases where adults have been incapaci- world leader in developing hybrid rice and the leading tated. n east asia and the pacific Region The World Bank 1818 H St. NW, Washington, D.C., 20433 http://www.worldbank.org/eap Special thanks to the partners who support GFDRR's work to protect livelihoods and improve lives: Australia, Canada, Denmark, European Commission, Finland, France, Germany, Italy, Japan, Luxembourg, Norway, Spain, Sweden, Switzerland, United Kingdom, UN International Strategy for Disaster Reduction, USAID Office of Foreign Disaster Assistance, and the World Bank.