Asian Disaster Management News

Asian Disaster
Management News
Volume 18/2012

Risk Financing
CONTENTs
Editors Note
Thematic Articles
Modelling Pre-disaster National Hazard
Loss Estimation
Financing Risk Reduction and
Recovery before Disaster Strikes
Country Update
Bangladesh
Myanmar
ADPC Activities
ADPC Strategy 2020
2012 New Projects
Partnership
Events
Training

Safer communities and sustainable development though disaster risk reduction

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Asian Disaster Management News

Editors Note
According to the United Nations, the total economic losses caused by natural disasters in 2010
stands at USD $109 billion. According to Munich Re, an insurance group based in Germany,
losses in 2011 increased to a staggering USD $380 billion. The World Bank conducted a post disaster
need assessment in the aftermath of the recent devastating floods in Thailand in 2011 and it found
Thailand to have sustained USD $21.3 billion in damages and USD $23.9 billion in lost opportunities.
The report went on to say that the Thai Government would need to invest about USD $25.2 billion
over the next two years to rehabilitate the economy in the wake of the 2011 floods.

These numbers are a clear demonstration of how natural disasters can undermine national
development and efforts to reduce poverty for local communities on the ground. As climate change
brings more frequent and severe weather to our region, economic losses will continue to rise. There Mr. N.M.S.I. Arambepola
is a need to focus, not only on the reduction of human losses, but to take a closer look at different Editor in Chief
methodologies to build financial resilience to natural disasters.

Through this issue of the Asian Disaster

There is strong health dimension to the ADPCs vision of creating Management News, we would like to
take the opportunity to provide an
safer communities through risk reduction. This is realized introduction to risk financing under the
under its Public Health in Emergencies program that takes the Asia-Pacific context and to hear experts
initiative to improve preparedness for addressing health issues in from both governmental and private
sectors speak of their take on the future
emergencies in risk financing in the region.

This issue also marks the inaugural of the Country Update section where we will feature one country per issue on the progress made
by the national government on the advancement of disaster risk reduction in their respective countries. We will hear from the Disaster
Management Bureau from the Ministry of Food and Disaster Management of the Government of Bangladesh and Relief and Resettlement
Department from the Ministry of Social Welfare and Relief and Resettlement of the Government Myanmar in this issue.

I would also like to take this opportunity to express our sincere thanks to all the contributors for this publication.

Modelling Pre-disaster
National Hazard Loss Estimation:
A Shift from Reactive to Proactive Policy
By Nirmala Fernando,
Muhammad Habibur Rahman

Until the 1990s, the economic modeling of natural hazards
and disasters received relatively little attention from research
communities. A series of disasters in the mid 1990s, such as the
Northridge Earthquake in 1994 and the Kobe Earthquake in 1995,
which occurred in developed urban areas and caused considerable
damage to the society, demonstrated how vulnerable modern in-
dustrialized cities are to severe natural hazards.
Economists are likely to have different opinions as to how to
best model indirect and systemic loss (Cochrane H., 2004).
Significant progress has been made in recent years in the
economic analysis of disasters, especially in the field of economic
modeling for disaster impact analysis in an inter-country context
(for example, Okuyama and Chang, 2004a; and an excellent
compilation of related papers by Kunreuther and Rose, 2004a).
Since the pioneering work by Dacy and Kunreuther (1969), a
generalized framework for the economic analysis of natural
disasters had been proposed (for example, Sorkin, 1982; and
Albala-Bertrand, 1993). In spite of recent advancements in
empirical analyses of natural disasters (Cavallo E. & Noy I., 2009),
one of the problems observed in this connection is the lack of
knowledge about the economic impact of natural hazards due
to unavailability of potential scenarios of natural disasters. A
reliable forecasting mechanism on the potential impacts of natural
disasters on the aspects of both short-run and long-run economic
consequences would help the countries in designing structural
measures and using risk transfer mechanisms in addressing the
needs in advance. Hence, the most important factor is to assess
the damages and losses proactively and plan the development
programmes in such a way that the vulnerability is reduced or
illuminated. However, such a practice is rarely followed by
most countries due to unavailability of standard practices to
assess the impact. In order to achieve a paradigm shift from
reactive response to a proactive risk reduction culture, the Asian
Disaster Preparedness Center (ADPC) takes an initiative to develop
a comprehensive methodology of estimating economic losses in
natural hazards in mainstreaming disaster risk reduction measures
into the development process. This article highlights the initiatives
taken to address disaster loss estimation strategies in the context
of macroeconomic perspectives.

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1. Pre-Disaster Loss Estimation Initiatives:
A Brief Review
Various economic modeling frameworks have been employed to
estimate disaster impacts, and arguably, the most widely used
modeling framework is the Input-Output model (for example,
Cochrane, 1974, 1997; Wilson, 1982; Kawashima et al., 1991;
Boisvert, 1992; Rose et al., 1997; Rose and Benavides, 1997; and
Okuyama et al., 1999).
Similarly the Social Accounting Matrix (SAM) has been utilized to
examine the higher order effects across different socio-economic
agents, activities, and institutions. Notable studies using a SAM or
one of its variants include Cole (1995, 1998, 2004) among others.
An alternative modeling framework to the I-O model is
Computable General Equilibrium (CGE) Model (for example,
Boisvert, 1992; Brookshire and McKee, 1992; Rose and Guha, 2004;
and Rose and Liao, 2005) which is nonlinear, can respond to price
changes, can incorporate input and import substitutions, and can
explicitly handle supply constraints.
In applied field, to estimate potential losses in natural hazards,
the Federal Emergency Management Agency (FEMA) introduced
HAZUS (i.e., Hazard in the USA), which is considered as the
pioneer effort to develop a methodology for vulnerability
assessment to provide a tool for developing earthquake loss
estimates (FEMA, 1997). The International Institute for Applied
Systems Analysis (IIASA) uses the technique of Cost-Benefit
Analysis (CBA) and the Catastrophe Simulation (CatSim) Model in
optimizing economic risks in the anticipation of major disasters
(Freeman et al., 2002; Hochrainer, 2006).
2. Pre-Disaster Loss Estimation (PDLE)
Strategy: An ADPC Approach
With the financial assistance from the Royal Norwegian Ministry
of Foreign Affairs, the Asian Disaster Preparedness Center (ADPC)
initiated a regional program for Pre-disaster Natural Hazard Loss
Estimation. This initiative endeavors to develop a methodology
to integrate disaster risk factors in to a macroeconomic model
that can estimate the impacts of potential natural disasters as an
exogenous shock to the economy.
2.1. Objectives of the Project
The objectives of this project intervention are
to devise a methodology
- for the systematic and consistent collection of data and
assessment of the damage caused both to economic bases
and social structures from which an accurate assessment of
economic losses can be estimated;
- for long term economic modeling based on the economic
losses derived from damages identified;
to deliver a comprehensive training package on pre-disaster
loss estimation strategy targeted for building the capacity of
key specialists in national planning departments/ministries,
relevant ag encies etc. from selected priority countries and
deliver the training at regional level.
2.2. Target Beneficiaries and Countries Covered
This initiative involved six countries including- Bangladesh, China,
Nepal, Philippines, Sri Lanka, and Viet Nam. Through this initiative,
it is aimed to build the capacity of disaster management
professionals, specialists in national planning departments/
ministries, central banks, sector-based development planning
specialists, research institutes, development partners etc. from
the aforementioned candidate countries, which are susceptible to
frequent natural disasters.
2.3. Project Implementation Method
ADPC implements this initiative through a consultative process
Asian Disaster Management News
involving a small focus group of identified specialists from selected
candidate countries. At the startup, ADPC organizes a regional
meeting to identify the national needs & challenges, expectations
and also forms a Steering Committee by selecting a few focal
personnel in each country for building the ownership of the
proposed methodology.
ADPC utilizes this committee as a platform for gathering national
level data, validating as well as disseminating the training materials
at the national level. ADPC signs a Memorandum of Understanding
(MoU) with the Centre for Regional Economic and Public Policy
(CREPP), Deakin University of Australia to utilize its expertise to
develop the technical method for pre-disaster natural hazard loss
estimation process.
2.4. The PDLE Strategy: A Technical Overview
The ADPC chooses the structural econometric model to estimate
pre-disaster economic losses. The main advantage of this
structural macroeconomic model that it doesnt put any
restrictions on the number of variables to be explained.
In general, there are four distinctive stages in working with
models: selection of key elements, assumptions, hypothesis
formulation, and finally, hypothesis testing. In line with this
standard practice, the ADPC uses the same procedural scientific
approach to incorporate DR into economic model.
A. Selection of Key Elements
In a macroeconomic model, the first step is to identify the key
elements (i.e., variables) to explain the overall performance of the
economy. These include- gross: national product, unemployment
rate, inflation rate, productivity of labor, interest rate, government
budget deficit, foreign trade deficit etc. Afterwards, these
variables are further categorized into building blocks. For example,
ADPC uses six building blocks including production, expenditure,
balance of payments, government, monetary and price blocks.
Diagram 01: Building Blocks of the Proposed Model
B. Assumptions: How the Blocks are Linked
Assumptions play a vital role in theorizing as well as modeling the
economic observations. In this regard, for maintaining a smooth
relationship among the blocks, some crucial assumptions are
imposed on the model. Some illustrative assumptions are as
follows:
The country is labor-abundant;
The economy is a price taker in the world market; etc.
C. Hypothesis
A hypothesis is a statement, which is tested for its validity. In
this perspective, a set of hypotheses needs to be considered for
testing different combinations of economic policies. It is to be
mentioned that interest rate, real total government expenditures,
and exchange rate are generally considered as policy variables to
measure the effectiveness of monetary, fiscal, and exchange rate
policy, respectively.
Since a natural disaster shock is imposed by changing capital
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Once the production of different

sectors gets affected by the
shock, it obviously affects GDP.
Simultaneously, once GDP
changes, it leads to change in all
other blocks (i.e. government,
expenditure, balance of payment,
monetary, and price blocks) of
the economy. Therefore, we
obtain the long-run effect of
natural disasters on all other
variables of the economy that are
determined within the model.

One point to make here is that

the shock can be given to one
particular sector or to all affected
sectors. For instance, if a flood
damages only the agricultural
capital, the shock can be given
to agricultural sector through
reducing the agricultural capital
level by the amount of the
damage. Likewise, if a tsunami
affects only the tourism sector,
the shock can work through
stock of different sectors of the economy, the hypothesis could be the tourism (or services) sector.
any of the following: Finally, if an earthquake damages both the manufacturing capital
and tourism capital (like plants in an industrial area as well as
Box 1: Some Illustrative Hypotheses hotels or restaurants on the coastal areas), then the shock can be
Monetary policy is more effective than fiscal/exchange rate given both to manufacturing and tourism capital.
policies for recovering total damages due to natural disasters.
Finally, country-specificity of the natural disaster impact
Fiscal policy is more effective than monetary/exchange rate assessment needs to be emphasized. The capital stock avenue
policies for recovering total damages due to natural disasters. above is chosen because more often than not, it is this aggregate
that is mostly affected by natural disasters in an economy. If a

One can adopt different hypotheses regarding different policy

options in the case of natural disasters for the specific case of their
country. For instance, in an ageing economy, increasing the social
security payments can be the policy option and subject matter of
the hypothesis. Or, for an economy that employs protectionist
trade policy (i.e., through quotas or high tariff rates), the policy
option could be removing these barriers. Finally, in an agricultural
economy, the policy option could be providing subsidies to
farmers, or imposing price floors or ceilings, to help recover from
the negative impact of natural disasters.

D. Incorporating DR into the Economic Model

In the production block, a set of equations are specified- one
for each of the agriculture, manufacturing and service sectors.
In each sector, production depends on capital stock, which is
indispensable to undertake production in an economy. The greater
the size of capital, the higher the level of production is in each
sector of the economy.

When we run the model, we get the immediate impact of a change

in capital stock on total production of agriculture, manufacturing
and service sectors respectively. Thus, natural disasters can be
incorporated into the model via a (negative) shock to the capi-
tal stock. That is, in order to analyze the impact of the natural
disasters on the economy, we can give a shock to the economys
capital stock and see how this effect traverses through the
linkages within the economic model. A negative shock to the
capital stock is given by deducting the value of total damages on
the capital stock from the pre-disaster value of capital stock. For
instance, capital stock in the economy may be reduced by 10% in a
natural disaster and this represents the shock.

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country experiences damages in other areas (linkages) covered

by the economic model, the shock can be given to those areas
provided that the amount of the damage is quantified. Similarly, in
case of pre-disaster situation, some hypothetical scenarios can be
considered to foresee its impact on the economy.

3. Conclusion
Given the fact that economic loss estimation exercise of natural
disasters is in its infancy level, however, the proposed initiative
of ADPC would lead to further develop a macro-economic model
that would not only quantify the potential losses in various
economic sectors, but also prescribes optimal policy mix for
ensuring effective reallocation of available resources in the
economy. One of the most common caveats against economic
model is that the time-series span that is given in the model may
not include any major disaster experiences. Ellson et al. (1984),
however, argue that they examined the damage estimates of
major earthquakes in the United States and found that the
damages do not appear too far outside of the historical variability
of the regional economy in response to more traditional shocks
and cyclical fluctuations. Furthermore, economic models are
statistically rigorous, can provide stochastic estimates, and have
forecasting capabilities. If a country can provide a large historical
dataset, the economic model is arguably the stand-alone approach
to estimate potential losses in the futuristic disaster events. The
outcome of loss estimation initiative led by ADPC would enable
the policymakers to prioritize risk mitigation investments and
measures to strengthen the emergency preparedness and
response mechanisms to natural disasters.

References
Albala-Bertrand, JM (1993), Natural disaster situations and growth: A macroeconomic model for sudden disaster impacts,
World Development, vol. 21, no. 9, p. 1417.
Boisvert, R (1992), Indirect losses from a catastrophic earthquake and the local, regional, and national interest, Indirect Economic
Consequences of a Catastrophic Earthquake, pp. 207-65.
Brookshire, D & McKee, M (1992), Other indirect costs and losses from earthquakes: issues and estimation, Indirect Economic
Consequences of a Catastrophic Earthquake, pp. 267325.
Cavallo, E & Noy, I (2009), The Economics of Natural Disasters: A Survey, RES Working Papers, no. 124.
Cochrane, H (1974), Predicting the economic impact of earthquakes, Social Science Perspectives on the Coming San Francisco Earthquake,
Natural Hazards Research Paper, vol. 25.
Cochrane, H (2004), Economic loss: myth and measurement, Disaster Prevention and Management, vol. 13, no. 4, pp. 290-6.
Cole, S (1995), Lifelines and livelihood: a social accounting matrix approach to calamity preparedness, Journal of Contingencies and Crisis
Management, vol. 3, no. 4, pp. 228-46.
Dacy, D & Kunreuther, H (1969), The economics of natural disasters: Implications for federal policy, Free Press.
Ellson, RW, Milliman, JW & Roberts, RB (1984), Measuring the Regional Economic Effects of Earthquakes and Earthquake Predictions, Journal
of Regional Science, vol. 24, no. 4, pp. 559-79.
Federal Emergency Management Agency (FEMA) (1997), NEHRP Recommended Provisions for Seismic Regulations for New Buildings. FEMA
222A. Washington DC.
Freeman, P, Martin, L, Mechler, R, Warner, K & Hausmann, P (2002), Catastrophes and Development: Integrating Natural Catastrophes into
Development Planning, World Bank DMF Paper, vol. 1.
Hochrainer, S & Pflug, G (2006), Optimizing Financial Strategies for Governments against the Economic Impacts of Natural Disasters in
Developing Countries, International Institute of Applied System Analysis, A-2361 Laxenburg, Austria.
Kawashima, K, Sugita, H & Kanoh, T (1991), Estimation of earthquake induced economic damage, Report of Public Works Research
Institute, vol. 186, pp. 1-57.
Kunreuther, H & Rose, A (2004), The economics of natural hazards, E. Elgar, Cheltenham, UK.
Okuyama, Y (2004), Modeling spatial economic impacts of an earthquake: input-output approaches, Disaster Prevention and
Management, vol. 13, no. 4, pp. 297-306.
Okuyama, Y, Sonis, M & Hewings, G (1999), Economic Impacts of an Unscheduled, Disruptive Event: A Miyazawa Multiplier Analysis,
Understanding and interpreting economic structure, p. 113.
Rose, A & Guha, G (2004), Computable General Equilibrium Modeling of Electric Utility Lifeline Losses from Earthquakes, Modeling spatial
and economic impacts of disasters, p. 119.
Rose, A & Liao, S (2005), Modeling Regional Economic Resilience to Disasters: A Computable General Equilibrium Analysis of Water Service
Disruptions*, Journal of Regional Science, vol. 45, no. 1, pp. 75-112.
Rose, A, Benavides, J, Chang, S, Szczesniak, P & Lim, D (1997), The regional economic impact of an earthquake: Direct and indirect effects of
electricity lifeline disruptions, Journal of Regional Science, vol. 37, no. 3, pp. 437-58.
Sorkin, A (1982), Economic aspects of natural hazards, Lexington Books.
Wilson, R (1982), Earthquake vulnerability analysis for economic impact assessment, Washington DC: Information Resources
Management Office, Federal Emergency Management Agency.

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Financing Risk Reduction and

Recovery before Disaster Strikes:
Opportunities in Asia
By Mihir R. Bhatt

What opportunities are available for risk reduction in Asia? There
is one such financial opportunity in Asia that was discussed with
leaders of the disaster risk reduction field in Pattaya on December
12-14, 2011 organised by the Asian Disaster Preparedness Centre and
Wilton Park. Let me explain this opportunity.
Even in a country growing rapidly at 8.5% GDP as India,
according to the Thirteenth Finance Commission (2010-2015) of the
Government of India the current level of insurance penetration is
less than 1 per cent across the country. As a result, a large
percentage of worlds poorest population residing in Asia still
remains exposed to disaster induced economic losses and
deprived of any advantages of rapidly advancing insurance
market.

Non-availability of micro-insurance options to the poor is

an issue of financial exclusion. Such financial exclusion is
common in Asia and Pacific. This is an opportunity for the
disaster risk reduction actors to make risk pooling and
transfer more inclusive.

Established since 1989 and registered in 1995, All India

Disaster Mitigation Institute (AIDMI), a non-governmental
organization, recognized as a think tank on disaster risk
reduction and well known for its pioneer work on reducing
vulnerability at the community level and policy advocacy at
the global level.

AIDMI points out to powerful governments and

humanitarian donors that disaster micro-insurance can
work and should be integrated in recovery programmes and
argues with giant insurance companies about market
According to Munich Res November 2011 media report, 80% of all potential of disaster insurance in the region. Potential for
economic losses from natural disasters in the first nine months of the Asian market to absorb innovative and affordable micro-
the year occurred in the Asia Pacific region. With the earthquakes insurance products is huge.
in New Zealand and Japan, the floods and cyclone in Australia, and
flooding across many countries in Central and South East Asia, Disaster induced economic losses in Asia can be financed through
the economic losses in the region came to USD $259bn in the first rapidly growing economies, well-established insurance markets
nine months of 2011, around which only
USD $52bn was insured. The rest of the
losses were suffered by the victims. In
a way this is an opportunity for those
who want to reduce risk in Asia.

The report also claims that over

the last 30 years, Asia Pacific has
experienced more than 50% of all
fatalities from natural catastrophes,
almost 40% of all economic losses but
less than 9% of the insured losses.This
figures shows the urgent need for
both, wider natural disaster insurance
coverage and strategic investments in
nation-wide DRR initiatives in the Asia
Pacific region that homes some of the
most vulnerable and poor counties
of the world. This gap in the regions
resources to reduce risk caused by
disasters is therefore an oppor-
tunity for those such as - UN-
DPO, ISDR, Asian Development
Bank, ASEAN, SAARC and others - to be more active in and global experiences, including successful regional initiatives.
maximizing on this opportunity. Donor support for converging microfinance and disaster risk
reduction during recovery (between two disasters) can make a

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huge difference to both, the losses and the slowdown of economic
process. Short-lived projects tied with stringent deadlines often
constrains advancement of innovative thinking for developing
long-term and sustainable solutions for financing risks.
The scheme covers damages or losses to a very wide range of
disasters including earthquake, flood, fire, cyclone, lightning strike,
landslide, et al. (19 types).The product was first sold in April 2004
covering 3700 policy holders in Gujarat and later on extended to
2004 Tsunami victims in Tamil Nadu, 2005 J & K earthquake victims,
and 2007-08 Floods affected victims in Bihar.

AfatVimo, being a financial tool for risk sharing, reduces the

policyholders underlying risks and offers financial protection.
In addition to the policy itself, the policyholders are supported
with micro-mitigation measures such as fire-safety, seismic-safe
construction practices and business development support.

In order to support the growing demand for an evidence base

on impact of micro-insurance from donors, in 2009 AIDMI in
partnership with ProVention Consortium and International
Institute for Applied Systems Analysis (IIASA) led a regional
study in South Asia covering five organisations offering disaster
micro-insurance from Bangladesh, Sri Lanka and India.
A total of 1640 disaster micro-insurance clients and 531 non-insured
clients were surveyed and consulted. Please visithttp://www.iiasa.
ac.at/Publications/Documents/XO-11-059.pdf for full report.

A few local organizations in poor countries of Asia have already
demonstrated the value of promoting disaster micro-insurance
with concrete results. These organizations include, Basix in
Hyderabad, India, Yasiru in Colombo, Sri Lanka, Proshika in
Dhaka, Bangladesh, Self-Employed Womens Association (SEWA)
in Gujarat, India, and the All India Disaster Mitigation
Institute (AIDMI) in Gujarat, India to name a few. Let us
take one example.
The low level of insurance coverage in Asia, thus, is an opportunity
for authorities, businesses, and civil society to promote
financing risk reduction and recovery through micro-insurance. It is
up to the disaster risk reduction actors in Asia to maximize on this
opportunity.

AIDMI is one of the pioneering organisations in Asia

to design and demonstrate a pilot project on disaster
micro-insurance as of 2003 onwards. The need for
designing micro-insurance for disaster affected victims
was first revealed during a community consultation
with 14 left out slum communities in Bhuj following the
2001 Gujarat Earthquake. AIDMI found that only 2% of
those surveyed had insurance of any type.

In partnership with the ProVention Consortium in 2004,

AIDMI designed the scheme with two regulated public
sector insurance companies, designed a partner-agent
model and named it as AfatVimo(disaster insurance)
scheme. The scheme covers five risks; (limited) losses
of life, trade stock, livelihood assets, house and house
contents of policyholders with an annual premium of
around $4.50 (including administrative charges) and
a total potential benefit of $1,560 (not necessarily the maximum
payout) across the various components of the coverage.

* Author is with All India Disaster Mitigation Institute and working on issues of financing local initiatives that overlap disaster risk reduction
with climate change risk.

For more information about this article please visit: http://www.aidmi.org/risk-transfer-initiative.aspor

contact AIDMI team at bestteam@aidmi.org.

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Expanding the Reach of Insurance

through Parametric Risk Transfer
By Guillermo E. Franco, Ph.D., A.Re.

When the Maule earthquake struck in Chile on February 27th, 2010, these, some parametric risk transfer tools have proved very
it caused a devastating tsunami, very intense shaking, and broad successful at transferring sovereign risk even from nations where
destruction from Santiago in the North to Concepcin in the South. the insurance sector is incipient or nonexistent.
The total economic damages were estimated at an approximate
30 billion USD, out of which about 8 billion were covered by Parametric risk transfer tools are insurance instruments that base
insurance contracts that protected infrastructure, commercial their payout not on the actual losses incurred but instead use
properties, and residential buildings. Out of these insured losses, physical metrics related to the catastrophic event. Mexico was the
about 3 billion represented losses to families that owned their first sovereign government, in 2006, to make use of a parametric
homes or small shops. insurance tool to protect national assets in case of a catastrophic
emergency response. The National Disaster Fund of Mexico was
The Association of Chilean Insurers agreed, shortly after the event, protected through an instrument called CAT-Mex Ltd. up to an
that the best service they could provide to their country was to amount of 160 million USD. The mechanism triggered a payment
quickly infuse much needed financial capital into their clients in case an earthquake of a specified magnitude struck within a
pockets in order to speed up the recovery process. During certain geographic zone and within a certain depth. The coverage,
the seven months after the event, the residential and small which expired in 2009, was renewed through another parametric
commercial damages totaling 3 billion USD were paid, following instrument, MultiCat Mexico 2009 Ltd. , and expanded to provide
a speedy and efficient claims settlement process. Although the coverage up to 290 million USD until October 2012 for losses arising
insured loss was very large, the insurance industry in Chile did not from earthquakes or from hurricane impacts along the Pacific and
suffer from this event because the companies themselves were Atlantic coasts.
reinsured by the global markets. Therefore, most of the insured
losses in Chile ended up being paid by international reinsurers. In 2007, another successful enterprise, the Caribbean Catastrophe
Risk Insurance Facility (CCRIF), was formed to provide coverage
Chile constitutes a great example of how insurance systems help to several island nations in the Caribbean from earthquake and
alleviate the need for financial
liquidity when disaster strikes.
However, Chile, with its relatively
well developed insurance market,
is not the norm among countries
that face enormous risks from
natural disasters. Developed and
developing countries alike often
display a lack of financial systems
to support recovery after
catastrophes. Using novel financial
systems for risk transfer, some
countries have successfully
complemented their domestic
insurance capacity and some
other countries have altogether
circumvented the growth of a
domestic insurance industry. Instead
they have turned directly to the
global markets through the usage of Figure 1. A Simplified View of the Insurance System.
parametric risk transfer tools.
hurricane damages. Since its inception, the CCRIF has paid about
Figure 1 shows a simplified view of a typical insurance system. 32 million USD to participating countries . CCRIF is a regional risk
Individual customers and companies purchase insurance directly pooling mechanism that ties its payouts for catastrophe events
from insurance companies or through insurance intermediaries. to a set of country-specific indices. An index is a mathematical
The insurance companies, in turn, seek reinsurance protection for expression that uses the intensity of a physical phenomenon as a
the aggregated risks from larger reinsurance companies. These proxy for loss. For instance, an index can be constructed in such
reinsurance companies, which are large capital providers, also a way that it produces a high value if the shaking caused by an
need to seek protection from catastrophic losses either through earthquake is very intense in a highly populated area. In turn, an
reinsurance agreements with other large reinsurance companies index-based insurance system will offer a payout somewhat in
(retrocession) or through the usage of insurance-linked securities proportion to the index value. The intensity values used to compute
(ILS). There are several ILS instruments available. However, among the index can be obtained either from field deployed measurement

1 http://www.artemis.bm/deal_directory/catmex-ltd/
2 http://www.artemis.bm/deal_directory/multicat-mexico-2009-ltd/
3 CCRIF. 2011. CCRIF Annual Report 2010-2011. Accessible at http://www.ccrif.org/sites/default/files/publications/CCRIFAnnualRe-
port2010_2011.pdf

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systems such as ground-motion recording stations or weather these instruments, decreasing the capital supply and making them
stations equipped with anemometers, or from numerical models. expensive to implement.

A parametric trigger mechanism offers several advantages. Secondly, there are operational challenges. Countries that display
Since the index depends only on physical values related to the weaknesses in their public sector may not be able to benefit from
phenomenon, there is no claim adjustment process necessary. transferring their risk since they might be unable to manage the
The payout is determined by the index value or the trigger infusion of capital shortly after a disaster. Figure 2 shows the
conditions so that there is no need to visit the destroyed destroyed National Palace in Port-au-Prince after the earthquake
properties and assess the damages. The elimination of the of January 12th, 2010. Even though Haiti received a payment of
claims adjustment process represents enormous savings in the almost eight million USD from its insurance policy with CCRIF, the
insurance product. This fact also makes very quick payments funds were difficult to receive and distribute due to the practically
possible since the payment can be produced once the index complete collapse of Haitian institutions.
is computed. Payment speed is important because it provides
immediate positive cash flow at a moment of dire need. In these cases, it might be appropriate to consider that it should
not be the national governments who transfer their risk but
Figure 2. National Palace in Port-au-Prince, Haiti, after the international aid organizations
earthquake of January 12th, 2010 (Wikipedia Commons 2010). that actually consume
accumulated fund for
emergency response and
reconstruction activities.
However, the debate continues
as to whether international
organizations are allowed to
transfer their risk through an
insurance mechanism. The
argument is that donor-driven
organizations devote their
donations to specific activities
related to the disaster and
paying a risk premium in a
non-disaster year is not an
eligible expense. From a risk
management perspective, this
argument is rather archaic
since it reduces the possible
avenues that the particular aid
organization has at its disposal
to ensure a sound and
continued operation with
sufficient capital. This contrasts
with the wide array of risk
management tools at the dis-
posal of a commercial corpora-
tion.
The system is also very transparent if the data and process used to
calculate the index are publicly available from independent parties There is a large potential supply of capital around the world to help
or settled beforehand. Moral hazard could arise if any of the parties finance recovery from natural disasters occurring mostly anywhere
involved in the transaction had the power to bias the information in our planet thanks to the fact that many of these disasters are not
in their favor. However, once agreed upon, neither the correlated. An earthquake might occur in one part of the Americas
mathematical formulation used nor the independently available one year while a typhoon might produce severe damages in Asia on
intensity information can be manipulated by the buyer or seller of the next. It is infrequent that large losses will occur simultaneously
the insurance product. This transparency makes the instrument in different parts of the world. Therefore, diversifying risks is of
of appeal to international reinsurers who may be willing to offer interest to large reinsurance companies and large capital
coverage without the need to have an in-depth knowledge of the providers. Technical creativity, advocacy, education, and liaisons
underlying portfolio of exposures. with governments and aid organizations are all useful steps
towards making catastrophic losses around the world a problem
Nevertheless, parametric insurance systems have yet to overcome that we can successfully tackle globally.
several obstacles in order to become widely accepted. These
problems are both of a technical and of an operational nature.

First of all, parametric products need to progressively address the

issue of basis risk, the potential difference that may arise between
the actual losses that take place and the payout indicated by the
numerical index. This basis risk may arise as a consequence of the
payout mechanism being inappropriate or from the error in the
design of the index or from shortcomings in the underlying models
used to calibrate the instrument. All of these factors may increase Guillermo E. Franco, Ph.D., A.Re.
Head of Catastrophe Risk Research EMEA
the potential discrepancy between losses incurred and losses paid
and it is often this uncertainty that drives investors away from

9|
Asian Disaster Management News
New Forms of Public-private partnerships
in financing natural disaster risks
By Michael Schwarz
The economic impact of natural catastrophes is increasing. The
combined influences of higher concentrations of assets and
population in disaster exposed areas, higher interconnectivity
in a globalized world and consequences of climate change are driv-
ing up the cost of disaster relief and reconstruction for the public
sector. New forms of private-public partnerships can help to ad-
dress the financial impact of large natural disasters and support
the creation of more resilient societies. Innovative risk transfer
solutions offer a model for governments, development banks and
relief organizations to access pre-event financing, and use their
relief funds more efficiently through insurance and capital market
instruments.
The impact of natural catastrophes on society and the economy
has increased considerably over the last two decades, and will
grow further as a result of two complementary trends. First,
the economic severity of natural catastrophes is growing due to
increasing population and economic activity in areas with a high
risk exposure. Also, for a variety of reasons, the nature of the risk
is changing: Buildings have become more expensive to build and
rebuild, and greater interdependencies in the production process
have increased the likelihood of business interruptions following
major events such as floods or earthquakes. Secondly, climate
change will likely increase the scale and frequency of major
weather-related events.
2011 set records for damages caused by natural catastrophes and
man-made disasters with over USD 350 billion in total economic
losses, together with multiple loss of life. The major natural
disasters occurred in the Asia-Pacific region, including the
earthquake and subsequent tsunami off the North East coast of
Japan, the Christchurch earthquake in New Zealand and the huge
flood event in Thailand. In developed economies, many of the
private losses caused by a catastrophe are absorbed by insurance.
However, insurance penetration in developing and many emerging
markets is much lower, and insurance rarely covers the damage
to infrastructure. As a consequence natural disasters such as
heavy flooding, severe earthquakes or droughts can be very
costly for the public sector since governments need to contribute
heavily to relief efforts and are responsible for rebuilding public
infrastructure. This extra fiscal burden can have a considerable
economic impact, particularly for smaller and less developed
economies, sovereigns with credit ratings on a negative outlook,
or governments which are already running large fiscal deficits.
Traditionally, governments have taken a post-event approach to
disaster funding, with a combination of borrowing money, shifting
budget positions, introducing new or higher taxes and relying on
(international) donor funding. But rather than following a financing
approach in which funds are only raised after a natural catastrophe
has occurred, a far more effective disaster risk financing strategy
would be to complement traditional ex-post funding measures
with pre-event financing tools, for instance through the
accumulation of dedicated reserve funds, the application of
contingent debt instruments and risk transfer to the private (re)
insurance industry.
The most appropriate mix of different financing instruments for an
individual country is determined by a range of factors, such as the
financial strength of a country, the condition of the state budget,
its exposure to disaster risks or national development priorities.
|10
Insurance is generally the most cost-effective way to address
low-frequency/high-severity events. The financial and insurance
markets play a key role in preparing for the impact of extreme
natural events and can help to spread risks. For governments,
there are two major benefits of using pre-event financing tools.
First, they allow financial budgets to be optimized, in that no
re-allocation of funds and/or less emergency borrowing is needed.
Second and depending on the financial instrument, funds from the
private (re)insurance industry to cover general disaster relief or
infrastructure losses are available immediately.
To reduce disaster losses and the associated costs, the first
priority in managing natural disasters must be the development
of risk avoidance and mitigation strategies in order to reduce the
impact of natural disaster events, save lives and protect assets.
But as no organization or country can fully insulate itself against
extreme events, financial preparedness for potential disaster
losses by transferring catastrophic risk must be a key element in
the financial strategy of a disaster-prone country or region. This
is essential to enable and sustain growth, just as corporations and
individuals pass on peak risks to insurers in order to reduce
financial volatility and avoid financial difficulties.
Various governments around the world have started to tap into
the risk management expertise and financial capacity of the private
insurance industry and the capital markets. For instance, Mexico has
sponsored a catastrophe bonds for earthquakes and hurricanes.
This Cat Bond, the first transaction in the MultiCat programme of
the World Bank, was arranged in collaboration with Swiss Re and
is based on a parametric approach. Unlike traditional insurance,
the payout of parametric instruments is triggered by objective
measures such as the strength of an earthquake on the Richter
scale or the air pressure experienced during a hurricane. As a result
parametric covers do not require loss adjusters to tally damage
after a catastrophe occurs, a process that can take months or even
years and which can delay a payout, but ensures speedy payout
to the insured and transparency for the parties involved. Another
example for a pre-emptive approach to disaster risk financing is
Malawi. Without enough rain, Malawian farmers and the society
at large face a disaster. To help maize producers overcome the
hurdle of uncertainty and boost agricultural output, the
government of Malawi decided to promote idex-based weather
insurance as a way to tackle droughtrisk. Together with the
World Bank, the government created a weather derivative
that offers maize farmers a means to better cope with the
financial impact of drought. Under the provisions of this
arrangement, reinsurer Swiss Re commits to pay out a certain
amount to the World Bank which in turn pays the money to
the Malawi government if the countrys farmers suffer from a
drought-related shortfall in maize production.
Governments and the private sector must work together to build
awareness of risk exposures and of possible solutions for risk
prevention, transfer and financing. While governments are
politically and legally empowered to set framework
conditions for the public and private sectors to adapt and respond to
natural disasters, they typically operate under significant financial
constraints. The private sector, by contrast, has the financial
resources and technical know-how. Sharing disaster risks with
the international re/insurance industry and the capital markets
through traditional risk transfer, innovative re/insurance and capi-
 Asian Disaster Management News

tal market instruments, allows governments to benefit from global diversification, reduce their risk transfer costs and to ensure that financ-
ing for disaster relief is in place well before a catastrophe occurs. The combination of the political and legal power of the public sector with
the expertise and financial resources of the private insurance industry results in new forms of public-private risk-transfer partnerships which
play an important role in managing the increasing level of disaster-driven expenses and adapting to the consequences of climate change.

Michael Schwarz is currently a Client Manager for Public Sector Business Development at Swiss Re

[Country Update]
Bangladesh they are aware of what they can do for
protecting their lives and properties
against disasters. The plan and conduct
of disaster management by GoB involve
Bangladesh is a disaster-prone country preparedness, response, recovery and
with an area of about 1, 47,570 sq. km. mitigation as key notes for building up
and a population nearing 140 million. self-reliance of the community people.
Bangladesh is among the worst victim of
natural calamities causing colossal loss of
lives and properties. The adverse impacts
Disaster Management
of all the natural hazards affecting Practice:
socio-economic condition need to be The existing system for disaster
reduced for sustainable development. management in the country covers
On acceptance of this reality, the activities at normal times for
Government of Bangladesh has important disaster management
undertaken a lot of plans and programs aspects like mitigation/prevention,
for risk reduction through disaster preparedness, response and recovery.
management. Bangladesh is Government as part of disaster
predominantly alluvial deltaic plain management have been trying to
divided into three zones, namely hills, develop its scientific networking in
terraces and flood plain based on respect of disaster forecasting and
geomorphology and physiography The early warning. Using a grant provided
country has an approximate area of by the Japanese Government,
147,570 sq.km. bounded between 2034 Bangladesh has undertaken the
to 2638 N latitude and 8801 to 92 replacement of radar at Agargaon,
41 E longitude and has 4,685 km. long Dhaka , establishment of a new radar
boundary unique geographical location at Rangpur and a satellite ground
in South Asia forming lower part of the receiving station at SWC, Dhaka. These
basins of three mighty rivers , the Padma (Known as the Ganges tasks were completed last year to
in India), the Brahmaputra and the Meghna. Bangladesh with its enhance the capability of SWC of Bangladesh Meteorological
fragile state of economy depends predominantly on agriculture Department. Substantial progress in the expansion of flood
which has strong linkage with seasonal weather systems. The land forecasting and warning services (FAP-10) in the country have been
is frequently visited by natural hazards of which floods, cyclones made with the help of Danish Hydraulic Institute.
with accompanying storm surges, droughts, tornadoes, river-bank
erosions and earthquake are the most disastrous. Bangladesh, Disaster Mitigation: GoB gives equal importance to both
which is also in close proximity to the Himalayas , has a long structural as well as non-structural mitigation measures. As part
history of seismic tremors. Four great earthquakes of magnitude of structural mitigation measures, GoB and other development
exceeding eight during 1897, 1905, 1934, 1950 and another 10 agencies has constructed 2,895 cyclone shelters and 200 flood
earthquakes exceeding magnitude belt during the last 100 years. shelters. For non-structural mitigation GoB has given emphasis
The colossal losses of lives and properties caused by natural on Legislation & Policy. Draft Disaster Management Act has been
disasters with repeated frequency in short intervals makes finalized with the purpose of providing for the formulation of
Bangladesh one of the most disaster prone countries in the world disaster management policy relating to preparedness and
(http://www.dmb.gov.bd/). emergency measures, and rehabilitation program to deal with
disaster. Government approved National Disaster Management
Disaster Management Strategy: After the floods of Plan and Revised
late 1980s and the killer cyclone of 1991, the concept of acting only Standing Order
after the occurrence of disaster has been replaced by the concept on Disaster.
of total disaster management involving prevention / mitigation, Moreover, as part
preparedness, response, recovery and development. The GoB of public awareness
has, therefore, total commitment towards reduction of human, activities, booklets
economic and environmental costs of disasters by enhancing c o n t a i n i n g
overall disaster management capacity. Efforts have been information about
continuing for optimum coordination and best utilization of cyclone, flood
resources along-with ensuring community involvement so that etc. and calendar,

11 |
Asian Disaster Management News

posters depicting That partnership will promote cooperation, provide coordination,

disaster points have rank priority programmes and projects, and allocate resources
been regularly printed to disaster management activities, risk reduction activities and
and distributed at the climate change adaptation activities in Bangladesh. CDMP II offers
grass-roots levels. an outstanding opportunity to improve linkages with, and
To raise awareness synergies between, disaster risk reduction and adaptation to
among the students climate change. This applies both at the community and at the
on various hazards/ general stakeholder level. The linkages are clearly expressed in
disaster management, many of the activities outlined in the operational outcomes of
a chapter on disaster the project design, as well as through strengthened institutional
management has been capacities.
included in the educational curricula from classes V to XII. GoB
has decided to make compulsory a session of at least 2 hours on Bangladesh experienced 219 natural disasters causing over USD
disaster management in the training curricula of all types of $16 billion in damage between 1980 and 2008. With support from
Training Institutes to train officials and non officials. UNDP, Bangladesh developed a flood action plan initiating a
culture of disaster management and risk reduction. Following
Urban Disaster Management in Bangladesh: a catastrophic cyclone in 1991 the government, with help from
Significant urban problems are mounting at an increasing rate in UNDP, established the Disaster Management Bureau. UNDP
Bangladesh. Rapid urbanization together with cumulative threats helped Bangladesh to develop the physical assets, knowledge
from increased exposures to urban flooding aggravated by and human capacity and the planning, coordination, finance
drainage congestion, urban and industrial fires, air-pollution and implementation mechanisms that underpins its disaster
from the emission of exhaust gas from variety of automobiles, management and risk reduction system. These investments
unplanned high rising buildings without adequate safety against contribute to a transformed disaster scenario. Lessons from
fire, earthquake, gas and chemical hazards. The high rise previous decades led to the Comprehensive Disaster Management
residential buildings are being built in any available open spaces, Programme and a national risk reduction agenda. Bangladeshs
ditches, swamps and canals without relevant safety measures. coordination framework stretches from the National Disaster
The urban hazards except the earthquake such as fire, Management Council, chaired by the Prime Minister, to a network
technological hazards, drainage congestion and flash flood, air of over 2,000 village disaster committees, 40 district Disaster
pollution are manmade and are within the knowledge and Management Committees, 12 directly involved line ministries and
capability of the Government, NGO and private sector to reduce six donor partners. CDMP II (2010-2014) is a vertical and horizontal
and prevent completely. Urban disaster management measures expansion of its Phase I activities designed based on the
are being implemented. achievements, lessons learned and the strong foundation laid
during CDMP I by continuing the processes initiated, deriving
The Comprehensive actions from the lessons learned, utilizing knowledge resources
Disaster Management generated and knowledge products published. The approach
Programme (Phase of CDMP II is to channel support through government and
II): The project aims development partners, civil society and NGOs into a people-
to further reduce oriented disaster management and risk reduction partnership.
Bangladeshs That partnership will promote cooperation, provide coordination,
vulnerability to rank priority programmes and projects, and allocate resources
adverse natural and to disaster management activities, risk reduction activities and
anthropogenic hazards climate change adaptation activities in Bangladesh.
and extreme events,
including the ADPC s Initiatives in Bangladesh
devastating potential ADPC has been engaged in a series of activities in Bangladesh
impacts of climate since 2000 with various partners. Since October 2008, it has been
change. It will do working closely with Government of Bangladesh, UN Agencies and
so through risk NGOs.
management and
mainstreaming. CDMP Following initiatives have been undertaken since 2000:
II is a natural expansion
and a logical scaling up * Flood Forecasting Application in Bangladesh (CFAB)
of its first phase. That with USAID/OFDA (March 2006 to June 2009)
pioneering phase laid The Climate Forecast Applications project in Bangladesh
the foundations for (CFAB-I) was managed by the Program on Atmospheric and
institutionalising the Oceanic Sciences (PAOS) at the University of Colorado and the
risk reduction approaches and frameworks developed through Earthwork and Atmospheric Sciences of the Georgia Institute of
pilot testing. CDMP II aims to institutionalise the adoption of Technology (EAS/GATECH), USA, which engaged in research aimed
risk reduction approaches, not just in its host Ministry of Food at increasing the lead-time of flood forecasting in Bangladesh.
and Disaster Management, but more broadly across thirteen As the primary implementing partner, the Asian Disaster
key ministries and agencies. CDMP II (2010-2014) is a vertical and Preparedness Center (ADPC) identified broader forecast
horizontal expansion of its Phase I activities designed based on application opportunities and sought for the institutionalization
the achievements, lessons learned and the strong foundation laid of the project in Bangladesh. The US Agency for International
during CDMP I by continuing the processes initiated, deriving Developments Office of Foreign Disaster Assistance (USAID/
actions from the lessons learned, utilizing knowledge resources OFDA) supported the CFAB-I project. To further strengthen the
generated and knowledge products published. The approach efforts under CFAB-I, a second phase entitled Flood Forecast
of CDMP II is to channel support through government and Technology for Disaster Preparedness in Bangladesh is being
development partners, civil society and NGOs into a people- implemented by the Asian Disaster Preparedness Center (ADPC)
oriented disaster management and risk reduction partnership. in collaboration with national and international partners. The US

|12

Agency for International Developments Bangladesh Office is
supporting this project from 2006 to 2009 through CARE-
Bangladesh under the SOUHARDO program.
* Program for Hydro-Metrological Disaster Mitigation for
Secondary Cities in South and South-East Asia (PROMISE),
Extension Program Activities in Jamalpur City, Bangladesh
with USAID (November 2009 to August 2010) and Program
for Hydro-Metrological Disaster Mitigation in Secondary
Cities in Asia (PROMISE),Chittagong City, Bangladesh with
USAID (July2009 - October 2009)
During the implementation of the Asian Urban Disaster Mitigation
Program (AUDMP), ADPC recognized the importance of
interventions in urban areas and accordingly identified Urban
Disaster Risk Management as one of its five core thematic areas
of work, experiences from which have also guided the selection
of the target secondary cities. ADPC has developed Strategy 2020
for Urban Disaster Risk Mitigation in Asia which aims to reach 200
cities by the year 2020. The need to minimize the destructive
impacts of these hydro-meteorological events on the vulnerable
communities, particularly the urban communities and the
economic infrastructure through enhanced preparedness and
mitigation is therefore the main thrust of the present intervention
in implementation of the Program for Hydro-Meteorological
Disaster Mitigation in Secondary Cities in Asia (PROMISE). ADPC
considers PROMISE program as an opportunity to associate
with many communities living in Asian cities vulnerable to hydro-
meteorological hazards with the aim of reducing the impacts
of such events and demonstrate innovative applications for
community preparedness and mitigation.
* Strengthening Household Ability to Respond to
development Opportunities (SHOUHARDO) Chittagong,
Coxs Bazar and Jamalpur with CARE Bangladesh
(November 2009 - August 2010)
The goal of the SHOUHARDO project is to sustainably reduce
chronic and transitory food insecurity of 400,000 vulnerable
households in 18 districts of Bangladesh . The participants will be
the poorest and most vulnerable households, and within them
women and girls, living in the remote and difficult areas.
* Disaster Shelter System Phase -1 (DSSP -1) with World
Bank (May 2010 - May 2011)
DSSP study and establishment of updated DSS database covering
all vulnerable areas (cyclone and flood affected) for optimal
selection of DSSP-I portion out of countrys DSS, its detailed
project preparation studies, and preparation of detailed design
and bidding documents for two or three packages for first years
Asian Disaster Management News
implementation; and Assignment B is for construction supervision,
project management support and preparation of design and
bidding of the remaining DSSP-I works. It is financed from the
proceeds of the Credit for ECRRP.
* Seismic Hazard & Vulnerability Mapping and Risk
Assessment in CHT with UNDP (1st August 2009 15th April
2010)
ADPC has provided technical assistance for seismic risk assessment
for Rangamati, Bandarban and Khagrachari Municipalities.
Bangladesh is susceptible to damaging earthquakes, having had
several significant earthquake events recorded in the past few
hundred years. In 2003 an earthquake magnitude of Mw=5.7
hit the region and damaged a good number of structures in the
districts of Rangamati, Chittagong and Bandarban. These urban
centers are fast growing and influence the economic
developments of much of the country. It is therefore essential
to have a realistic understanding of the nature, severity and
consequences of likely damage/loss.
This project is funded by the Chittagong Hill Tracts Development
Facility (CHTDF) of United Nations Development Program. The
facility initiated holistic development and peace building through
different programs, including the Earthquake Risk Reduction
Programme (ERRP) that intends to build a resilient community to
cope with earthquakes.
* Technical Survey for Identification of Vulnerable & Risky
113 Buildings in Heritage & Non-heritage Areas of Dhaka
City with Dhaka City Corporation
(July 2009 November 2009)
The main objective of this study was to identify the vulnerability of
selected 113 buildings in ward number 66, 73 and 73. It also aims to
categorize the buildings in accordance with building vulnerability.
* CDMP I
* Seismic hazard and vulnerability mapping (Component 4a:
Earthquake and Tsunami Preparedness of CDMP-phase i) with
CDMP (December 2007 April 2009)
* Contingency planning with regard to earthquake hazard
(Component 4a: Earthquake and Tsunami Preparedness of
CDMP-phase i) with CDMP (December 2007 April 2009)
* Training, advocacy and awareness with regard to earthquake
and tsunami hazard(Component 4a: Earthquake and Tsunami
Preparedness of CDMP-phase i) with CDMP (December 2007
April 2009)
13 |
Asian Disaster Management News
The Comprehensive Disaster management Programme (CDMP)
of the Government of Bangladesh (GoB) has commissioned Asian
Disaster Preparedness Center (ADPC) to carry out Projects on
three main subcomponents of the Earthquake and Tsunami
preparedness component and one subcomponent under Support
for Disaster Management Information Network to be implemented
with financial assistance from EC. Within this, a key assignment
is the preparation of Seismic Hazard and Vulnerability
Mapping of Dhaka, Chittagong and Sylhet city corporation areas. The
Comprehensive Disaster management Programme (CDMP) of the
Government of Bangladesh (GoB) is being implemented by the
Ministry of Food and Disaster Management (MoFDM) and is
supported by UNDP, DFID-B and the EC. CDMP is designed to
strengthen the Bangladesh Disaster Management System and more
specifically to achieve a paradigm shift from reactive response to
a proactive risk reduction culture. In August 2006 the European
Commission and UNDP signed a Cooperation Agreement related to
the funding of three components within the CDMP Framework.
Myanmar
Myanmar is prone to a range of natural hazards including cy-
clone, earthquake, floods, tsunami, fire and drought. In the recent
past it has been affected by some devastating disasters, which
include Cyclone Nargis in 2008, Cyclone Giri in 2010 and the Shan
state earthquake in 2011. In order to manage the disasters,
Myanmar has well laid out institutional arrangements and, in
line with the on-going transition in Myanmar, several important
interventions under Disaster Risk Reduction have been
undertaken.
Myanmar Disaster Preparedness Agency: Myanmar
has constituted Myanmar Disaster Preparedness Agency [MDPA],
in April 2011, under the chair of Minister, Social Welfare, Relief
and Resettlement as the nodal agency for Disaster Management
in Myanmar. The Agency includes 7 Deputy ministers from line
departments.
Myanmar Action Plan on Disaster Risk Reduction:
The DRR action plan titled Myanmar Action Plan on Disaster Risk
Reduction was drafted and launched in June 2012 by Relief and
Resettlement Department. It is a multi-hazard plan, which covers
the entirety of Myanmar and has identified 65 priority projects to
be implemented over 2012-2015.
|14
* Support for a Disaster Management Information
Network (Component 5b of CDMP-phase-i) with CDMP
(December,2007 April,2009)
Ongoing Projects:
1. Earthquake Risk and Damage Assessment and Subsequent
Development of Scenario-based Contingency Planning for Six
Municipalities / City Corporations and Detailed Building
Inventory of the Said Towns Including Dhaka and Chittagong City
Corporation Areas
2. Multi-Hazard Risk and Vulnerability Assessment, Modeling and
Mapping (15th Decm,2011-14th June,2014)
3. Program For Enhancement of Emergency Response (PEER)
(PEER Stage3 from 2009-2014)
4. Disaster Risk Reduction in Landuse Planning, Bangladesh
(DRRLP,B)
5. Community Based Early Warning System-MFA-Theme 1 with The
Royal Norwegian Government
6. Community-Based Early Warning System for Landslide Hazard
Management (2011-12)
Disaster Management Law: The Disaster Management
Law has been drafted by the Relief and Resettlement Department
in consultation with line ministeries and development partners.
The aim of this law is to provide an overarching legal framework
for Disaster Management that includes risk reduction.
Disaster Management Portal: Relief and Resettlement
Department, the nodal department for disaster
management (DM) in Myanmar developed its
Portal for wider dissemination of the disaster
management related information and policy
documents and guidelines.
Disaster Management Course: The
Relief and Resettlement Department has been
running a Disaster Management Course for
sub-national officers since 1977. In the changing
context of Myanmar as well as advancement
in the DRR field, it has updated the Course by
engaging DRR agencies including technical
agencies. It is also creating a pool of 60 trainers
from government on the updated DM Course.
 Asian Disaster Management News

[ADPC Activities]
Internal News

ADPC Strategy 2020

ADPC release ADPC Strategy 2020, a roadmap that will guide the direction of the Center for the next 10 years in 2012.
Purpose of ADPC Strategy 2020

Focus on Disaster Risk Reduction OUTCOMES, which serve as the compass for the what and how of ADPCs engagement with
countries and key partners
Articulate COMPARATIVE ADVANTAGE of ADPC in support of disaster risk reduction and climate change adaptation actions for Asia
Demonstrate ADPCs RESPONSIVENESS, dynamism, and effectiveness in delivering quality solutions in a fast changing disaster risk
reduction and climate change adaptation landscape.

ADPCs Focus for 2020

Based on the challenges, issues and opportunities confronting the Region; DRR priorities identified by the countries, for support from
ADPC (refer Annex 3); ADPCs proven experience, skills and capacity in DRR and CCA; and, the changing landscape of stakeholders and
actors involved in DRR and CCA, ADPC intends to concentrate and focus over the next decade on delivering regional and national
initiatives and achieving results under three core program areas:

Vision Safer Communities and Sustainable Development through Disaster Risk Reduction
Mission Reducing disasters and climate risk impacts on communities and countries in Asia-Pacific Region
by working with governments, development partners and key stakeholders
Core Program 1. Enhanced capacity of 2. Strengthened SYSTEMS for 3. Improved and grounded
Outcomes countries in the utilization of effective management of risk at APPLICATION of risk reduction
SCIENCE based information to all levels in countries , especially measures in development
understand risk at sub-national and local level

ADPCs Strategy 2020 embraces the principles of results-based decision-making processes

program to describe and determine what services it will deliver to
countries, as well as how its performance will be measured and
managed. The successful implementation of ADPCs services is
dependent on various factors including the commitment and will of
the RCC member countries as well as the ability to secure necessary
human and financial resources. Each of ADPCs core programs are
briefly outlined on the next pages.
CORE PROGRAM 1:
SCIENCE Enhanced capacities of countries in the
utilization of science based information to
understand risk
Clear gaps have been identified by the countries in the area of
research and development of scientific tools as well as the use
of strong scientific evidence to back investments made in risk
reduction efforts (UNISDR, 2011). In view of the increasing disaster
and climate risks in many Asian countries, there is a growing and
urgent need to profile hazards and the associated exposure,
vulnerability and risks to their populations. With ADPCs proven
experience in conducting risk assessments, at different scales
and with specific capacities in science and engineering such as
downscaling of future climate projections and seasonal weather
forecasting, ADPC looks forward to strengthening its relationship
with countries to deliver systematic disaster and climate risk
assessments that will allow countries to define and prioritize their
mitigation, risk reduction and adaptation strategies and solutions.
This core science program will focus on two program areas:
Program Area 1.1 Improved capacity of countries to identify
and assess disaster risk and use the data and information in
Disaster risk assessment is defined as a methodology to determine
the nature and extent of risk by analyzing potential hazards and
evaluating existing conditions of vulnerability that together could
potentially harm exposed people, property, services, livelihoods and
the environment on which they depend and therefore essential to
protecting these from the threat of disasters. It is the first step and
an essential diagnostic tool for engaging in systematic disaster risk
management which aims to avoid, lessen or transfer the adverse
effects of hazards through activities and measures for prevention,
mitigation and preparedness.
Program Area 1.2 Improved capacity to effectively respond
and adapt to a changing climate
Climate issues have always been an important consideration of
both development and DRR strategies. Their importance has been
magnified and placed at the forefront of peoples minds as a result
of documented evidence, publicized concerns of global-
warming induced climate change and intense, on-going international
negotiations to mitigate global climate change and adapt to its
consequences. This has raised an awareness and willingness on the
part of many actors and stakeholders for collective and cooperative
effort to improve capacities to manage and mitigate climate risks,
the negative outcomes of extreme weather and climate events
and adapt to a changing climate. Managing climate risks due to
climate-related hazards is seen as the nexus between DRR and CCA,
which includes more general climate change risks focusing future
risks and current hazards. Since CCA requires behavioral and
policy changes to respond to current climate and predicted future
patterns, key actors who are involved in DRR initiatives could play
a pivotal role in achieving the changes that are needed. ADPCs rich
experience in DRR and climate risk management in countries
will serve to add value and support to build capacity that would

15 |
Asian Disaster Management News
enable effective and appropriate responses by countries and
communities to climate-related hazards as well as adapting to future
climate change.
CORE PROGRAM 2:
SYSTEMS Strengthened systems for effective
management of risks at all levels in countries,
especially at sub national and local level
The setting-up of disaster management systems in Asian countries
was identified as the greatest need of all when ADPC was
established and it remains a core element of its engagement with
countries. This long-term engagement has resulted in a tremendous
amount of experience being gained while assisting countries in
the region to set up institutions, formulate legislation, policies
and plans, and build capacity on DRR at national, provincial and
district levels. Recognizing the importance of community and the
different needs within a community, ADPC programs in disaster risk
management systems have provided technical support in several
important cross-cutting issues such as those relating to gender,
social cohesion, special program considerations for children and
elderly populations, and for persons living with disabilities. With
strengthening systems for disaster risk management still a need
expressed by the countries, this core SYSTEMS program will
concentrate on two program areas:
Program Area 2.1 Strengthened, inclusive and effective
governance systems and capacities for managing disaster
and climate risk, at all levels, from national to community
Effective and robust disaster risk management systems requires
the inputs of an extensive variety of actors: primary agencies at
the national, provincial and district levels to develop and enforce
policies, plans and regulations while also seeking innovative risk
management initiatives; the range of professional disciplines
and related partnerships with the sector agencies and active
involvement of civil society and communities. In addition the rise
in global awareness during recent years in climate-induced risk
issues further demands deeper partnerships and revised strategies
to address the combined needs of reducing disaster risks and
adapting to changed climatic circumstances in many local
communities and with important national implications.
Program Area 2.2 Improved capacities for emergency
preparedness and response at all levels, especially at local
and community level
Further, whenever a natural or man-made hazard occurs there is
always the potential for disaster risks to arise and for an emergency
situation to eventuate. Such situations can be avoided or at least
minimized if key actors in emergency management and crucial
sectors such as the health are well-prepared and well practiced and
accepted professional standards such as the Incident Command
System is in place.
CORE PROGRAM 3:
APPLICATION Improved and grounded
application of risk reduction measures
in development
Protecting the hard earned development gains from the impacts
of disasters is of utmost importance for sustainable development.
So too is the need to ensure development practices across all
sectors: do not increase or create new disaster risks; follow risk
resilient policies and development control regulations; as well as
apply hazard resistant construction technologies. The
challenges are specifically higher in fast growing urban
and environmentally sensitive areas. Over the last 15 years
ADPC has worked closely with national disaster management
agencies in strengthening their partnerships with line ministries,
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central ministries of planning and urban local bodies to mainstream
DRR into development processes. The integration of DRR and CCA
and their mainstreaming in development processes will require
increased commitment of whole-of-government, coordination by
central economic and planning ministries and, cooperation and
implementation by line ministries and sectorial departments. In
order to provide the support that would be necessary this core
program will focus on the following two program areas:
Program Area 3.1 Development gains protected through
inclusion and grounding of DRR and CCA in development
Development and achievement of the Millennium Development
Goals (MDGs) is constrained by disasters and there are many
examples that demonstrate the benefits of DRR measures in
economic, environmental and social terms. Mainstreaming DRR
into national and sectorial development processes such as poverty
alleviation education, health, housing, agriculture, urban
development, natural resource management and others should
be reflected in the creation or adaptation of legislation and
regulation, codes and standards, resource mobilization and
allocation, and implementing and coordinating bodies. For this to
be effective DRR should be considered at all levels
(national to local) and by all implementing bodies. Without
the integration of DRR in all aspects of development, countries
efforts to achieve sustainable development and the MDG targets
will become more challenging if not impossible to attain. Numerous
opportunities beckon, to relate the shared concerns and available
technical abilities that exist among environmental management,
the protection of natural resources, climate variability and their
combined relevance in reducing disaster risks and this must not
be overlooked. So too the opportunities provided in post-disaster
situation should be capitalized to ensure recovery and
reconstruction processes aims at building back better. This
program area will be implemented under the RCC Program on
Mainstreaming DRR into Development.
Program Area 3.2 Improved knowledge for safer
development practices at community level in urban and
rural areas
The most serious impact of a disaster is always felt by the local
communities and their immediate environment. Thus, every
disaster is a local disaster and requires the involvement of local
stakeholders and the community. At the same time, most of the
development activities start at a local level, involving local
resources and skills. This is essential, local people, having a better
understanding of the surrounding areas, the culture, fragility
of the local environment and the natural resource base are in a
better position to contribute to the process of development and
add to its sustainability. To enable this they need to be supported
by a decentralization of legislation, plans and resources. Hence it is
these communities and local level stakeholders who form the prime
drivers to attain sustainable development and reduce the incidence
and severity of poverty.
With this argument it becomes an imperative that any kind of
probable risk to the development activity, or risks that result from
developmental activity, should be brought to the attention of the
local authorities and communities and with their active involvement,
reduced. The local development process both in urban and rural
areas must integrate DRR and CCA into policy, planning,
implementation and enforcement of hazard resilient standards and
regulations. The actions in urban areas under this program area will
contribute to the implementation of the Strategy Asia 2020.

THE IPCC SPECIAL REPORT ON MANAGING
THE RISKS OF EXTREME EVENTS AND DISASTERS TO
ADVANCE CLIMATE CHANGE ADAPTATION (SREX)
IPCC SREX Regional Outreach Meeting
Bangkok, 4 May 2012
SREX OVERVIEW:
The Intergovernmental Panel on Climate Change (IPCC) has
prepared a Special Report entitled: Managing the Risks of Extreme
Events and Disasters to Advance Climate Change Adaptation (SREX)
with financial support from the Ministry of Foreign Affairs and the
Climate and Pollution Agency of the Royal Norwegian Government.
Approximately 220 experts from 62 countries contributed to the
preparation of the SREX. In addition, 19 experts critically reviewed
the Special Report before formal endorsement from Governments
in November 2011. A series of outreach events has been planned
globally in the following locations:
Havana, Cuba 18-19 April, Beijing, China 26-27 April, New Delhi,
India 2-3 May, Bangkok, Thailand 04 May, Addis Ababa, Ethiopia 9-10
May and Dakar Senegal 18-19 May.
All events received financial support from the Royal Norwegian
Government.
REGIONAL OUTREACH MEETING OUTLINE
The SREX Southeast Asia Regional Outreach Meeting was organised
by the Asian Disaster Preparedness Centre (ADPC) in collaboration
with Overseas Development Institute (ODI) and the Climate and
Development Knowledge Network (CDKN).
The SREX Regional Outreach Meeting was held on 04 May 2012 at
Swissotel Nai Lert Park, Bangkok, Thailand. The one-day outreach
event commenced with a Press Conference, attended by panellists
Dr. Rajendra K. Pachauri, Chairman of the IPCC, H.E. Stle Torstein
Risa, Ambassador of the Royal Norwegian Government to Vietnam
and Dr. Bhichit Rattakul, Special Advisor ADPC.
Representatives from Thai national media and international media
were present at the opening Press Conference, which provided an
opportunity for the media to hear opening statements from the
panellists. This was followed by questions from the assembled
media representatives. The outcome was coverage in Thai and
international media, including Thai Government media outlets,
Reuters Alertnet and National News Bureau of Thailand, amongst
other media outlets.
The Opening Ceremony was attended by H.E. Dr. Plodprasop
Suraswadi, Minister for Science and Technology of the Royal Thai
Government, together with Dr. Noeleen Heyzer, Under Secretary
for United Nations and Executive Secretary, UNESCAP, Dr. Rajendra
K. Pachauri, Prof. Krasae Chanawongse, Chairman of the ADPC
Board of Trustees and Dr. Bhichit Rattakul.
The IPCC SREX Summary for Policymakers, the Regional
Summary of SREX for Asia (prepared by CDKN) and the
youth-friendly SREX summary Climate Extremes prepared by
Plan International were presented to the H.E. Plodprasop
Suraswadi to mark the inauguration of the IPCC SREX outreach
for Southeast Asia.
PANEL DISCUSSION AND SESSION SUMMARIES:
Discussion of the major findings of SREX began with panel
presentations, a panel discussi0n and a question and answer
Asian Disaster Management News
session. Five of the authors who contributed to SREX took part in
the panel, namely; Dr. Bach Tan Sinh from National Institute for
Science and Technology Policy and Strategic Studies (NISTPASS),
Vietnam, Dr. Kathy McInnes from CSIRO, Australia, Dr. Rosa Perez
from Manila Observatory, Philippines, Dr. Seree Supratid from
Rangsit University, Thailand and Dr. Ravsal Oyun from JEMR,
Mongolia.
Three breakout group discussions followed, addressing the
themes of Regional Actions, National Actions and Community
Actions. Discussion focused on the roles and responsibilities of
regional centres, national organisations and community groups -
considering how stakeholders at all levels can effectively participate
in the process of integrating disaster risk management (DRM) and
climate change adaption (CCA) - towards minimizing disaster risk
and vulnerability.
Mr. N.M.S.I. Arambepola, ADPC Executive Director a.i. presented
an overview of ADPCs strategy and expertise for addressing
climate change in the Asia-Pacific region, particularly emphasizing the
integration of DRM and CCA with regional, national and community
actions.
SREX PRESENTED TO
H.E. MS. YINGLUCK SHINAWATRA
The SREX was presented to H.E. Ms. Yingluck Shinawatra, Prime
Minister of the Royal Thai Government in the afternoon of 4 May
2012 at Thai Government House, by Dr. Rajendra K. Pachauri, H.E.
Stle Torstein Risa, Mr. Erik Svedahl, Minister Counsellor of the
Royal Norwegian Embassy in Thailand, Mr. Arman Aardel and Dr.
Oddvar Kjekstadin, Ministry of Foreign Affairs, Royal Norwegian
Government, Prof. Krasae Chanawongse, and Mr. N.M.S.I.
Arambepola.
DOWN TO EARTH DIALOGUE
The final session was the Down to Earth Dialogue a less formal
discussion of regional issues raised by the SREX, and an opportunity
for reflections and considerations from the panellists, addressing
clarifications and answering key questions.
Panellists in this final session were: Dr. Rajendra K. Pachauri, Dr.
Neil Britton, Principal Disaster Risk Management Specialist of ADB,
Dr. Armi Susandi Head, DNPI, Indonesia, Dr. Anond Snidvongs,
Chairman of the Geo-Informatics and Space Technology
Development Agency (GISTDA), Thailand, and Mr. Craig Hobbs,
CEO, The Media Alliance. The dialogue was moderated by Mr. Atiq
Kainan Ahmed, Climate Information Application Specialist, ADPC.
SIGNIFICANT ASPECTS:-
Youth Participation:
Youth participation was one of the significant features of the
IPCC SREX Regional Outreach Meeting in Bangkok. Young people
were encouraged to actively participate in the community action
breakout groups, and to share their perspectives on the need for
urgent interventions, mitigation actions, and raised awareness of
climate extremes.
Students from Lamsai in Ayutthaya, Wells International School in On
Nut and Kasetsart University, Bangkok, participated to represent
the future generation. Encouraging youth and children to become
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Asian Disaster Management News

leaders and motivators for climate change adaptation efforts is

considered an effective strategy to promote effective and
immediate action.

Young people can become risk identifiers, communicators and

mobilizers, and their integration in this event was considered to
be one such action. During the sessions, best practice examples
of child/youth-focused Disaster Risk Reduction (DRR) and Climate
Change Adaptation (CCA) integration efforts from countries in the
Southeast Asian region were also discussed. Dr. Rajendra K. Pachauri, H.E. Dr. Plodprasop Suraswadi, Dr. Noeleen
Heyzer, Prof. Dr. Krasae Chanawongse, H.E. Stle Torstein Risa, H.E.
Community, national and regional focus: Mr. Lazaro Herrera Martinez, H.E. Mr. Anil Wadhwa , H.E. Mr. Sohail
Community, national as well as regional actions were discussed in Mahmood, Mr. Arvind Kumar, Mr. Erik Svedahl, Mr. Arman Aardal, Mrs.
respective working groups, to identify the gaps in integrating DRM Rounak Ara Amin,and Ms. Yvonne Carroll at the Opening Ceremony
and CCA. Specific opportunities, challenges and responsibilities
were identified at all levels, as well as strategies for linking local
with regional actions. The opportunities for mobilising existing
organisations were also discussed, as were the strategies for
facilitating collaboration from all sectors to promote effective action
and knowledge sharing.

Cross-sector participation:
The SREX was presented to H.E. Ms. Yingluck Shinawatra, Prime
Approximately 160 participants attended the IPCC SREX Regional
Minister of the Royal Thai Government in the afternoon of 4 May 2012
Outreach Meeting in Bangkok, representing Southeast Asian
at Thai Government House, by Dr. Rajendra K. Pachauri, H.E. Stle
Governments, Ambassadors to Thailand, SREX authors, Multilateral
Torstein Risa, Mr. Erik Svedahl, Minister Counsellor of the Royal
and Bilateral donor agencies, UN agencies, IPCC focal points and
Norwegian Embassy in Thailand, Mr. Arman Aardel and Dr. Oddvar
bureau members, regional organizations, NGOs and INGOs, youth
Kjekstadin, Ministry of Foreign Affairs, Royal Norwegian Government,
groups and representatives of the media.
Prof. Krasae Chanawongse, and Mr. N.M.S.I. Arambepola
The event was a success in raising awareness of the importance of
Panel discussi0n with five of
the authors who contributed
to SREX (left to right) Dr.
Ravsal Oyun from JEMR,
Mongolia, Dr. Seree Supratid
from Rangsit University,
Thailand, Dr. Rosa Perez
from Manila Observatory,
Philippines, Dr. Bach Tan Sinh
from National Institute for Science and Technology Policy and Strategic
Studies (NISTPASS), Vietnam, and Dr. Kathleen McInnes from CSIRO,
Australia.

Breakout group discussions

the SREX and the issues therein, and in promoting collaboration and
addressing the themes of
effective action towards addressing vulnerabilities caused by climate
Regional Actions, National
extremes and disasters.
Actions and Community
Actions with the participation
of youth groups from Thailand
in the Community Actions
breakout group

Breakout group discussions addressing the themes of Regional

(left to right):- Dr. Rajendra K. Pachauri, Chairman, IPCC, H.E. Dr.
Actions, National Actions and Community Actions pictured is the
Plodprasop Suraswadi, Minister for Science and Technology of the
Community Actions group, moderated by Ms. Indira Kulenovic, IFRC,
Royal Thai Government, Dr. Noeleen Heyzer, Under Secretary for United
with Mr. N.M.S.I Arambepola.
Nations and Executive Secretary, UNESCAP, Prof. Krasae Chanawongse,
Chairman of the ADPC Board of Trustees, at the Opening Ceremony.
Down to Earth Dialogue session, with panellists (left to right)
Dr. Anond Snidvongs, Chairman of the Geo-Informatics and Space
Technology Development Agency (GISTDA), Thailand, and Mr. Craig
Hobbs, CEO, The Media Alliance, Dr. Rajendra K. Pachauri, Dr. Armi
Susandi Head, DNPI, Indonesia, Dr. Neil Britton, Principal Disaster Risk
Management Specialist, ADB.

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 Asian Disaster Management News

[2013 New Projects]

1) Climate Data Digitization and Downscaling of Future Climate Projections in Nepal
(January December 2013)

2) Climate Impact Reduction and Resilience in Support of the Asian Cities Climate Change Resilience
Network (ACCCRN)
(December 2010 November 2013)

3) Operationalizing Strategic Plan for Disaster Management (OSPDM) in Lao PDR: Strengthening the
Early Warning System of Lao PDR (Activity 3)
(January 2011 June 2012)

4) Primer on Climate Change Adaptation and Disaster Risk Reduction

(January 2011 December 2012)

5) Comprehensive Disaster Management Program (CDMP 2): Landslide Risk Management in

Bangladesh
(January 2011 March 2012)

6) Gender Mainstreaming in Disaster Risk Management in Afghanistan

(April 2013)

7) Myanmar DRR Working Group Information Portal

(January August 2013)

8) Strengthening Disaster Risk Reduction in Myanmar through Policy Dialogue, Technical Support and
Capacity Building of Government and Civil Society Partners
(February 2011 July 2012)

9) Regional Stocktaking and Mapping of DRR Interventions in Asia and the Pacific - Phase II
(February December 2012)

10) Practitioners Handbook/Primer on Urban Disaster Risk Management

(January 2011 December 2012)

11) Research Disaster Risk Reduction in Two Districts Clinching and Cawand in Jakarta, Indonesia
(April June 2013)

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Asian Disaster Management News

[Partnership]
Mou With BRAC
The Asian Disaster Preparedness Center (ADPC) and BRAC recognize the need to
intensify mutual support and work in collaboration to achieve their shared goals at
national as well as regional levels by working in partnership to advance disaster risk
reduction efforts, strengthen its linkages with adaptation to climate change and
food security, for promoting excellence in public health in emergencies and for the
development of national and local capabilities to foster comprehensive disaster
risk management in the region and for the reduction of disaster vulnerability of the
people, and infrastructure in Bangladesh in particular. Dr. Mahabub Hossain, Executive
Director of BRAC represented BRAC, and Mr. N.M.S.I. Arambepola, Executive Director,
a.i., of ADPC, represented ADPC for the MoU signing which took place on 7 March 2012,
Dhaka, Bangladesh.

MoU with Gujarat Institute of Disaster Management

Gujarat Institute of Disaster Management (GIDM), Gujarat State, India and ADPC have
signed MoU to further enhance joint collaboration to strengthen training capacity,
develop and delivery of prioritized trainings, support and promote DRR knowledge
and experience sharing and partnership for joint project development and
implementation. Upon the signing in February 2012, the MoU will be effective
for 5 years . In line with the MoU, the Agreement was signed for cooperation on
development and delivering of two prioritized courses: Mainstreaming Disaster
Risk Reduction into Development and Earthquake Vulnerability Reduction. Mr. V.
Thirupuggazh, Executive Director of GIDM represented GIDM, and Mr. N.M.S.I.
Arambepola, Executive Director a.i., of ADPC, represented ADPC for the signing.

[Events 2012 in review]

STAKEHOLDER CONSULTATION WORKSHOP TO REVIEW THE RECOVERY PRACTITIONERS HANDBOOK
Stakeholder Consultation Workshop to Review the Recovery Practitioners Handbook, under the Tsunami Global Lessons Learned
Initiative (TGLL), was held in Colombo, Sri Lanka on 12th January 2012 by Ministry of Disaster Management and National Building Research
Organization (NBRO), Sri Lanka.

Dr. Asiri Karunawardena, Director General of NBRO graciously gave welcome note and objectives of the workshop,followed by Introduction
to TGLL Initiative by Mr. Bob Mckerrow, IFRC, Sri Lanka.

The consultation workshop was facilitated by national experts on recovery, NBRO and ADPC as well as concerned stakeholders including
line ministries and INGOs. The workshop reviewed draft version of Handbook for Recovery Practitioners and provided recommendations on
further improvement for each chapter as follow:

a. Institutional arrangement and Coordination Mechanism

b. Recovery and Reconstruction Planning and Implementation
c. Mobilizing and Managing Financial Resources for Recovery and Reconstruction
d. Communication in Recovery and Reconstruction
e. Information Management, Monitoring and Evaluation of Recovery and Reconstruction

ADPC FACILITATED COMMUNITY-BASED LANDSLIDE EARLY WARNING SIMULATION

ADPC Facilitated Community-based Landslide Early Warning Simulation in Urban Areas of Coxs Bazar: Sri Lankan High Level
Delegation observed the initiative with great interest

A people centric Community-based Landslide Early Warning

Simulation was conducted in Coxs Bazar Municipality on 28th February,
2012 in the honor of the visiting high level delegation from the Sri Lanka. H.E.
Mr. Mahinda Amaraweera, the Honble Minister of Disaster Management,
Sri Lanka along with six other high level officials visited ward no. 9 and
8 of Coxs Bazar municipality where a simulation on community-based
landslide early warning was carried out. The simulation was carried out at
the Ghonarpara Kaderia Primary School premise. H.E was accompanied
by Mr. Nerthesinghe Nanayakkara Douglas, Additional Secretary,
Ministry of Disaster Management, Gen. Gamini Hettiarachchi, from Disaster
Management Centre-Sri Lanka, Mr. Lalith Chandrapala, of Department of
Meteorology, Mr. N. I. C. Peiris, from NBRO, and Dr. Ananda Mallawatantri,
from UNDP-Sri Lanka. The officials from the UNDP-Bangladesh, CDMP-II
program and Coxs Bazar district administration have also observed the event.

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 Asian Disaster Management News

The simulation was conducted under the Community based Landslide

Monitoring and Early Warning project which was supported by CDMP-II
programme of the Ministry of Food and Disaster Management (MoFDM),
Bangladesh,. The proceeding was facilitated by Mr Atiq Kainan Ahmed
of Asian Disaster Preparedness Center (ADPC) Bangkok in collaboration
with the Coxs Bazar municipality repsentatives. Mr Ashraful Huda
Siddiquee, Councilor of the Coxs Bazar municipality welcomed all on behalf
of the municipality. Mr Sowkat Alam, Chairman of the Ghonarpara Kaderia
Primary School, Professor Shomeswar Chokrobary have spoken on behalf of
the community. Stakeholders have demonstrated a mock-drill and played
awareness drama to simulate the process in front of a large number of
local audiences including the school children from the community.

The community has expressed that this type of community-based early warning system initiated by CDMP-II program of the MoFDM has
given them a good opportunity now to monitor landslides in their respective communities and take systematic measures to reduce the
landslide risks in an effective way. The community has appreciated this engaging initiative and given a strong emphasis on expansion of such
community-based early warning system and risk reduction measure in all the vulnerable areas of the district and beyond.

HANDS-ON TRAINING FOR THE NEPAL CLIMATE DATA

PORTAL IN KATHMANDU
ADPC conducted a one-day hands-on training workshop on Nepal Climate
data portal on 1 March 2012 for the benefit of staff of Department of
Hydrology and Meteorology (DHM) of Nepal. Dr. Keshav P. Sharma
(Director General of DHM) chaired the training sessions.

Dr. Senaka Basnayake from ADPC and Mr. Michael Amy were among the
resources persons.

Nepal Climate Data Portal has been developed for accessing the observed station data, observed gridded (interpolated) data, and projected
climate scenario data over Nepal. The portal will be useful for stakeholders, technical experts, policy makers, etc for planning their activities
(medium- and long-term) and taking proactive adaptation measures against unprecedented climate change. The portal is developed under
ADB Climate Change project. Ms. Cindy Malvicini, Ms. Manju Aramasinghe and Dr. D.B. Singh of ADB participated in the training event.

DISASTER RESPONSE STARTS WITH COMMUNITIES IN VIETNAM

In Hue, Vietnam Red Cross staff and volunteer teams took part in activities for Community Action for Disaster Response,
developing vital skills in management of mass casualties, collapsed structure search and rescue, flood safety and how to response to
emergencies.

Participants training in Hue are learned the fundamentals of disaster

response, so they would be able to effectively help their families, neighbors and
communities if a flood, landslide, building collapse, fire, mass-casualty event, or
any other disaster were to hit their local area.

Distinguished guests visited CADRE Hue on 2-3 March 2012. Mr. Michael
Foster, Supervisory Program Officer, USAID, Mr. Richard Nyberg, Communications
Officer, USAID, Mr. Kendall RePass, Country Representative, ARC, and Mr. Le
The Thin Director of Disaster Management Department (DDMD), Government
of Vietnam visited the training event, met the participants, and witnessed the
disaster preparedness practical sessions and simulations.

The USAID, ARC and DDMD delegates saw first-hand the

disaster response presentations from CADRE trainee instructors,
as well as practical sessions in aspects such as First Aid
medical treatment, triage, lifting and stabilizing loads, fire-
extinguishing, resuscitation, water rescue and a full-scale
disaster simulation exercise. The delegates were also present
as guests at the Final Ceremony on 3 March 2012, in which
the CADRE graduates received certificates presented by Mr.
Michael Foster, USAID-OFDA and Mr. Kendall RePass, ARC.

Fifty-seven CADRE trainees from Red Cross Chapters in Hue,

Quang Ngai, Ha Tinh, Binh Dinh, Phu Yen, Qung Binh and
Qung Nam, as well as Vietnam national staff from Vietnam Red
Cross HQ, American Red cross, Netherlands Red Cross, German
Red Coss and Spanish Red Cross, and also a participant from
International Federation of Red Cross and Red Crescent (IFRC) together formed two groups who took part in the initial three-day training in
first response. This was followed by two sessions of five-day CADRE Training for Instructors, in February and March 2012. The training took
place at the Huong Giang Hotel Resort & Spa, Le Loi Street, Hue City.

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Asian Disaster Management News

Flood Relief Supply to the affect youth in Thailand by Shenzhen One Foundation through ADPC.
Major flooding occurred during and after the 2011 monsoon season
in Thailand, most severely in the Chao Phraya basin in Central Thai-
land, but also in the Mekong River basin. Beginning in late July and
continuing for over three months, the floods affected more than
one million people, and caused damages estimated at up to 185 bil-
lion baht ($5.2 billion) as of November 2011. The flooding inundated
about six million hectares of land, over 300,000 hectares of which
is farmland, in 58 provinces, from Chiang Mai to parts of Bangkok.
It was described as the worst flooding yet in terms of the amount
of water and people affected.

With the long and close friendship between the people of China
and Thailand, the Shenzhen One Foundation has generously
donated 500,000 RMB to the Thai youths in the flood
affected area. Working in collaboration with the Asian Disaster
Preparedness Center (ADPC) flood relief supplies were
delivered to the Lopburi and Chai Nat Provinces in the Central
region of Thailand. After close consultation with the
Governors of both provinces and conducting needs
assessments, 3 schools in Lopburi and 13 schools in Chai Nat
Province received flood relief supplies ranging from water
purification systems to school uniforms and rice for the
students.

[Upcoming Trainings]
GIS4DRM-AF01
AFRICAN REGIONAL TRAINING COURSE ON GIS FOR DISASTER RISK MANAGEMENT
Africa (TBC), 11 - 22 Mar 2013 (Information to be provided)

MDRD-4
4THREGIONAL TRAINING ON MAINSTREAMING DISASTER RISK REDUCTION INTO NATIONAL
DEVELOPMENT PROCESS
Bangkok, Thailand, 1 - 5 Apr 2013
Disaster risk within a country has its roots in development decisions that do not adequately address disaster concerns, and the
resulting disasters are coming at the cost of development and poverty reduction. The Global Assessment Report on Disaster Risk
Reduction 2011 outlines that the economic, social and environmental costs of disasters are self-evident, and with a changing climate,
increased rate of urbanization, and increasing mismanagement of land, disaster risk and the resulting impacts from disaster events
will continue to have costly effects on the progress towards socio-economic development of countries across Asia and the rest of
the world. By not considering disaster risk in development planning, governments often unknowingly play a leading role in shaping
risk, through investments in infrastructure and public services, and through improper planning and regulation. Thus it is essential
that the process of development planning identifies and analyzes the underlying causes of risk, and factors in measures for risk
reduction.
Mainstreaming disaster risk reduction into development has therefore been prioritized by the 26 member countries of the
Regional Consultative Committee (RCC) on Disaster Management, to which ADPC acts as the secretariat. Since 2004 the RCC has been
implementing the RCC Program on Mainstreaming Disaster Risk Reduction into Development (MDRD) which aims at mainstreaming
disaster risk reduction into national development planning processes, as well as in priority sectors such as agriculture, education,
health, housing and roads. Being implemented by the governments under the regional mechanism of RCC, building capacity for the
implementation of resilient development activities has been recognized as an important component of the program. This course
has therefore been developed by the Regional Consultative Committee under the Mainstreaming Programme and funding from
AusAID to enhance the capacity of government officials involved in development planning and Disaster Risk Reduction to
mainstream DRR into development activities.

CBDRR-22
22ND REGIONAL LEARNING WORKSHOP ON COMMUNITY-BASED DISASTER RISK REDUCTION
Bangkok, Thailand, 24 Jun - 5 Jul 2013 (2950.00 Package w/ Accom)
The fundamental principle of community-based disaster risk reduction (CBDRR) involves the development and support of bottom
up processes arising from the communitys recognition of its own needs and aspirations, and implementation of actions to address
them.The CBDRR course provides an opportunity to practitioners to learn, upgrade and share essential skills and knowledge to
systematically address disaster risk reduction challenges at the community level and to facilitate processes to reduce disaster risk

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 Asian Disaster Management News

of vulnerable communities.

CBDRR participants acquire tools and obtain knowledge on how to design and implement programs for reducing disaster risks and
vulnerability and building community capacity to promote a culture of safety and self-reliance in dealing with disaster risk on their
own. Through exercises and simulations, participants practice risk assessment and risk reduction planning.

The participants will have a chance to learn and discuss about globally acknowledged programs and approaches on community
based disaster risk reduction from leaders of these initiatives, with a particular focus on examples from South and South East Asian
regions. The CBDRR course tackles the issues in disaster risk reduction from a developmental perspective, discusses the issues
and problems concerning sustainability, replication/ adaptation of CBDRR practice and integration of risk reduction plans with
government and non-government development plans.

CRM-5
5TH INTERNATIONAL TRAINING COURSE ON CLIMATE RISK MANAGEMENT
Bangkok, Thailand, 19 - 30 Aug 2013 (2,825.00 Package w/ Accom)
Climate change has rapidly become one of the significant challenges of the 21st century. Climate-related risks, whether those in the
present or coming in the future, need to be swiftly addressed as part of the development strategy at any level, from global to local.
With an upward growth trend for urban centers in the developing world and the fact that more than half of the world now living
in urban centers, there is a further need to nurture this growth to be resilient to the risks of natural hazards and climate change.
However, to understand the scientific knowledge around the climate issue and translating it into development policies and practical
actions is still a great challenge for development officials.

To address this need, the course offers a unique opportunity for development officials from both government and private sectors
to enhance knowledge and skills on climate change and climate-induced disaster risks management. The participants will be guided
through sessions that will unpack scientific jargons and draw linkage to the planning and implementation of climate risk reduction.
The course ultimately aims to assist officials in harmonizing climate change adaptation, disaster risk reduction and sustainable
development.

GIS4DRM-09
9TH INTERNATIONAL TRAINING COURSE ON GIS FOR DISASTER RISK MANAGEMENT
Bangkok, Thailand, 2 - 13 Sep 2013 (3,175.00 Package w/ Accom)
Rapid population growth and urbanization combined with extreme climatic events are causing a rapid increase in vulnerability of
communities exposed to hazardous events. As a result, disasters are increasingly taking heavy toll of life and property. Unplanned
growth both in urban and non-urban areas calls for an adequate preparation to reduce the impact of disasters. There is a great need
to utilize disaster risk information in planning for effective coping mechanisms of disaster risk reduction.
Disaster risk information is spatial in nature and Geographic Information Systems (GIS) play an important role in disaster risk
assessment and management. For this, there is a need to create awareness among the disaster management professionals
regarding the importance of GIS.

The GIS4DRM course has been re-designed to cater the requirements of wide range of specialties and it is being jointly organized by
the Asian Disaster Preparedness Center (ADPC), the Asian Institute of Technology (AIT), the Faculty of Geo-Information Science and
Earth Observation of the University of Twente, the Netherlands (ITC), and the United Nations Institute for Training and Researchs
Operational Satellite Applications Program (UNITAR-UNOSAT), with its main aim to provide an overview of the use of spatial
information in Disaster Risk Management. The course not only reveals what spatial data is and how it is collected, but also
emphasize on the use of such spatial data during pre- and post-disaster management such as during early warning, hazard,
vulnerability and risk assessment, damage assessment, as well as deciding appropriate risk reduction measures. The course aims at
utilizing the scientific advancement in effective disaster risk reduction.

DMC-43
43RD REGIONAL TRAINING COURSE ON DISASTER MANAGEMENT
Bangkok, Thailand, 2 - 13 Sep 2013 (4,150.00 Package w/ Accom)
The Asia Pacific region faces heavy human and economic losses from disasters, whose frequency and intensity is increasing
drastically in recent years. The evidence from the Indonesian Tsunami , Kashmir and China earthquakes, Cyclone Nargis, Pakistan
Flood, Afghanistan blizzard, and other events happening in the region and around the world undoubtedly reflect the level of
devastation that disasters can bring.

To reduce the impact of disastrous events on communities and support development sustainability, the DMC course aims to
provide necessary and useful fundamental knowledge and skills of disaster management to enhance the capabilities of managers
who have key disaster management responsibilities. The subjects covered in the DMC-43 are multi-hazard, multi-level,
multi-agency, and multi-disciplinary, and address both event-related activities as well as those activities which need to be under-
taken on a day-to-day basis prior to the occurrence of events. The course is designed to enable professionals working in disaster
management, development and donor agencies to effectively integrate disaster management into their programs and policies.
Participants will be encouraged to develop key skills and adopt proactive attitudes through participation in interactive lectures and
reflection on a range of key issues raised during discussions and practical activities.

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Asian Disaster Management News

Asian Disaster Management News Executive Editorial Team

Volume.18/2012 Dr. Krasae Chanawongse (Chair)
The Asian Disaster Management News is published by the Asian Disaster Mr. N.M.S.I. Arambepola
Preparedness Center, to serve as a channel of communication and source Mr. Sajedul Hasan
of information for disaster risk management practitioners and development
workers in Asia and the Pacific. Editor-in-chief: Mr. N.M.S.I. Arambepola
Editor: Ms. Tiffany
Online versions are available at: http://www.adpc.net
Design & Layout: Mr. Manit Poomkumarn
To receive a copy of the Newsletter, please contact:

Asian Disaster Preparedness Center

979/66-70, 24th Floor SM Tower, Paholyothin Road, Samsen Nai, Phayathai
Bangkok, 10400 Thailand
Tel: (66-2) 298 0681-92 (ext. 256)
Fax: (66-2) 298 0012
E-mail: tiffany@adpc.net

Please follow ADPC on Twitter! & ADPC Facebook group

Disclaimer: The views expressed in this publication do not necessarily reflect the views of the ADPC.
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