HARVARD BUSINESS SCHOOL TSUNAMI STUDY Presentation 28 July 2005

1. HARVARD BUSINESS SCHOOL TSUNAMI STUDYPresentation28 July 2005

2. AGENDA Our mission Questions to be addressed Vision of the future Recommendations Proposals Desired outcome Rationale Questions and answers

3. AGENDA Our mission Questions to be addressed Vision of the future Recommendations Proposals Desired outcome Rationale Questions and answers

4. OUR MISSION • Our mission is to objectively examine Singapore’s response to the Asian Tsunami in order to: • 1. Identify key constraints and issues and recommend strategies for creating an efficient and well-coordinated disaster relief response from Singapore NPOs. • Explore what mechanisms can be emplaced to foster the growth, professionalism, and maturation of Singapore’s NPO sector. • Recommend potential roles for NVPC within a future Singapore disaster relief response.

5. AGENDA Our mission Questions to be addressed Vision of the future Recommendations Proposals Desired outcome Rationale Questions and answers

6. QUESTIONS TO BE ADDRESSED • How to develop and professionalize the Singapore NPO sector within the realm of disaster relief? • How can Singapore best engage relief workers for maximum impact during disasters? • Is the central collection and management of disaster relief funds the most effective method? • How can NPO information sharing be enhanced? Is government coordination or the role of a lead agency necessary? • How can NPOs best match the need on-the-ground with Singapore assets? • How can NPOs best communicate with the general public concerning fundraising efforts, volunteerism and in-kind donations? • How can Singapore create a more conducive environment for NPOs that operate internationally?

7. AGENDA Our mission Questions to be addressed Vision of the future Recommendations Proposals Desired outcome Rationale Questions and answers

8. VISION OF THE FUTURE • We envision a future Singapore disaster relief program that constitutes: • a coordinated NPO-led relief effort, executed in conjunction with available Singapore government resources • a trained core of relief workers that can respond professionally to domestic and international disasters • a knowledgeable Singapore public capable of making informed donations • organizations that meet requisite accountability standards and provide transparency to their respective donor base • synergies captured through close interaction between Singapore assets and on-the-ground agencies providing direct relief • efficient and de-centralized fundraising by NPOs

9. AGENDA Our mission Questions to be addressed Vision of the future Recommendations Proposals Desired outcome Rationale Questions and answers

10. RECOMMENDATIONS

11. RECOMMENDATIONS (1) Establish an Immediate Relief Program (IRP) (1 of 4): • (i) Proposals: • Create a highly-skilled, NPO-driven response team to represent Singapore in providing immediate disaster relief. • The program should meet the following criteria: • 10 to 12 contracted disaster relief professionals; experts in emergency medicine, logistics and communications; • Representation from multiple NPOs; • Government funded to include supplies and storage, personnel, training, deployment, and readiness; • Deployment triggered by represented NPOs immediately after a disaster; • Short-term deployments (approximately two weeks).

12. RECOMMENDATIONS (1) Establish an Immediate Relief Program (IRP) (2 of 4): • (i) Proposals (continued): • Recruit an independent disaster relief specialist to fulfill the following roles: • Liaise with MFA and foreign governments to facilitate NPO entry, customs clearance and transportation; • Assist NPOs in gathering on-the-ground information and relaying aggregated intelligence to Singapore; • Conduct impartial reviews of on-the-ground needs and projects throughout the relief process. • Maintain relationships with local NPOs and facilitate their training in disaster relief; • Train volunteers in SOPs, cultural sensitivity, best practices and first aid;

13. RECOMMENDATIONS (1) Establish an Immediate Relief Program (IRP) (3 of 4): • (ii) Desired Outcome: • Singapore NPOs establish the capacity to immediately respond to disasters, both international and domestic. • An NPO response that is less dependent on SAF. • Singapore gains higher visibility as a consistent and reliable player in international disaster relief. • An improved information flow between on-the-ground partners and Singapore NPOs as facilitated by the independent disaster relief specialist.

14. RECOMMENDATIONS (1) Establish an Immediate Relief Program (IRP) (4 of 4): • (iii) Rationale: • Individual Singapore NPOs possess limited experience in international response. • SIF Humanitarian Relief Program, the only formalized NPO-led immediate relief program in Singapore, was discontinued in 2003. • Singapore NPOs were highly dependent on SAF for information, transportation and resources during the immediate relief phase. • SAF may not be able to respond to the majority of future international disasters because of costs and political considerations. • Difficulty in obtaining neutral and credible information from the affected areas.

15. RECOMMENDATIONS • (2) Generate a Professional Relief Worker Sector (1 of 3) • (a) Transition relief worker response from volunteerism to professionalism: • (i) Proposals: • We envision a relief worker sector comprised of three tiers: specialists (e.g. medical), professional relief workers (within NPOs), and non-specialist volunteers. • Phase 1: Continue to mobilize highly skilled specialists (doctors, nurses, logisticians) to provide immediate life-saving relief. • arrange for the compensation of these highly skilled specialists to facilitate longer deployments. • Phase 2/3: Bolster NPO capacity by recruiting professional and salaried relief workers with significant disaster relief experience, and applicable language skills: • mobilize local human resources at minimal cost under cash for work programs; • manage Singapore projects by coordinating local operations with on the ground contractors. • Phase 3: Deploy non-specialist volunteers during reconstruction, after immediate needs have been met.

16. RECOMMENDATIONS • (2) Generate a Professional Relief Worker Sector (2 of 3) • (a) Transition relief worker response from volunteerism to professionalism: • (ii) Desired Outcome: • Maximize Singapore’s impact on the ground by achieving the most cost effective labor utilization through the use of paid professionals. • Cash for work programs emplaced to allow locals to resume their livelihoods and to preserve their human dignity. • Reduced risk of damage of Singapore’s image as a result of unprofessional actions by volunteers • Reduced risk of harm to relief workers. • Stronger NPOs in the disaster relief sector.

17. RECOMMENDATIONS • (2) Generate a Professional Relief Worker Sector (3 of 3) • (a) Transition relief worker response from volunteerism to professionalism: • (iii) Rationale: • Volunteers are typically only able to commit to short term deployments due to loss of income. • Longer term engagements are more efficient because: • reduced loss of knowledge during transfer between deployments; • greater continuity with on-the-ground relationships; • reduced transportation expenses. • Deployment of unskilled volunteers prior to reconstruction phase is undesirable because: • cost of deployment is high when compared to the benefits of cash for work programs at much lower costs; • scarce resources (transportation and housing) should be reserved for skilled specialists.

18. RECOMMENDATIONS • (2) Generate a Professional Relief Worker Sector (1 of 3) • (b) Create a central relief worker training program: • (i) Proposals: • Provide formalized training and basic certification in disaster relief topics (first aid, cultural sensitivity, survival skills) for all deploying relief workers. • NVPC should fulfill role of training agency • maintain registry of disaster relief workers and their training status • Provide pre- and post-departure psychological counseling for deploying relief workers. • Provide insurance policies for relief workers. • Ensure background checks for all deploying relief workers.

19. RECOMMENDATIONS • (2) Generate a Professional Relief Worker Sector (2 of 3) • (b) Create a central relief worker training program: • (ii) Desired Outcome: • Creation of a readily available pool of trained relief workers to assist in both international and domestic disaster relief responses. • Assure the psychological welfare of relief workers.

20. RECOMMENDATIONS • (2) Generate a Professional Relief Worker Sector (3 of 3) • (b) Create a central relief worker training program: • (iii) Rationale: • No formal disaster relief skills training program was in place for deploying relief workers. • Uncertainty existed surrounding background checks for relief workers.

21. RECOMMENDATIONS (3) Formalize Information Sharing and Coordination Platform (1 of 3): • (i) Proposals: • Obtain a government mandate and terms of reference for the coordination platform. • Obtain a government mandate for a neutral agency to serve as the secretariat. • Hire an independent professional facilitator to manage meetings. • Activate the coordination platform immediately following a disaster. • Hold meetings to serve as a forum for information sharing for NPOs and government organizations active in disaster relief. • Post meeting minutes on a website accessible to all NPOs. • This forum should not be used to control the actions of NPOs, but rather to assist in their coordinated effort.

22. RECOMMENDATIONS (3) Formalize Information Sharing and Coordination Platform (2 of 3): • (ii) Desired Outcome: • Full participation of NPOs that aim to be active in disaster relief. • Maximize the information flow among NPOs involved in disaster relief effort. • Reduce redundancies in disaster relief projects and resources donated to affected areas • Create an environment where NPOs can develop relationships and synergies with one another. • Promote cooperation and coordination among NPOs. • Improved quality of up-to-date information from the disaster affected areas • Ability to identify potential partnerships in Singapore and on-the-ground.

23. RECOMMENDATIONS (3) Formalize Information Sharing and Coordination Platform (3 of 3): • (iii) Rationale: • Limited number of NPOs have disaster relief expertise. • Limited information sharing and operational coordination among NPOs and between NPOs and government. • NPOs failed to capture economies of scale on-the-ground due to a lack of coordinated effort from Singapore and the difficulty in identifying credible local partners. • Previous inconsistent attendance to coordination meetings held by the NVPC. • Perception of NPOs that coordination meetings were an attempt to impose government control.

24. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (1 of 3) • (a) Provide pre-approved fundraising permits to NPOs which specialize in disaster relief: • (i) Proposals: • Allow pre-approved permits holders to self-activate their permits following disaster alerts issued by the United Nations and upon notifying the Singapore government. • Government should select specific NPOs focused in disaster relief to receive pre-approved permits. • Criteria to be eligible for pre-approved permits should include: • Strong record of proven performance. • Pre-existing internal controls for proper reporting and accountability. • Requisite fundraising experience. • Commitment to attend NPO information sharing/coordination meetings • Government should continue to provide expedited processing for non pre-approved NPOs to gain permits.

25. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (2 of 3) • (a) Provide pre-approved fundraising permits to NPOs which specialize in disaster relief: • (ii) Desired Outcome: • NPOs with established disaster relief expertise to begin fundraising immediately after a disaster occurs. • Increases overall speed and efficiency of NPO fundraising process. • Increase NPOs ability to secure key projects faster.

26. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (3 of 3) • (a) Provide pre-approved fundraising permits to NPOs which specialize in disaster relief: • (iii) Rationale: • Previously, processing times and expiry dates for fundraising permits varied by organization; some rejected. • Donations tend to decrease as time passes from the onset of the disaster. • Lack of pre-approved permit process slowed NPO fundraising and, hence, the speed of project initiation.

27. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (1 of 3) • (b) Revise the regulation that requires NPOs to spend 80% of tax deductible donations on domestic initiatives. • (i) Proposals: • Government should change regulation to substantially increase the percentage of donated funds that can be committed to international operations. • Government should issue exemptions to this tax requirement during disaster situations.

28. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (2 of 3) • (b) Revise the regulation that requires NPOs to spend 80% of tax deductible donations on domestic initiatives. • (ii) Desired Outcome: • Empower more NPOs to be active in international humanitarian and disaster reliefs. • Enable and encourage more NPOs to have sustained long-term international operations. • Encourage more international NPOs to establish regional hubs in Singapore, which will increase stature in international humanitarian assistance and provide economic benefits.

29. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (3 of 3) • (b) Revise the regulation that requires NPOs to spend 80% of tax deductible donations on domestic initiatives. • (iii) Rationale: • The tax regulation restricts activities of NPOs that wish to operate internationally. • Due to this tax regulation, NPOs have developed very little capacity to provide international development and humanitarian assistance. • Reduced contributions by individuals and corporations that preferred tax benefits. • The regulation is a disincentive for international NPOs to establish regional hub offices in Singapore.

30. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (1 of 3) • (c) Establish minimum reporting and accountability standards for NPOs: • (i) Proposals: • Require NPOs to post their expenses and donations committed per project on their website in a standardized and concise form. • Provide training courses on appropriate disaster relief financial reporting practices. • Conduct independent audits to ensure compliance. • Provide certification to NPOs that consistently meet financial reporting standards. • Aggregate links for the reporting by organization and post on central website.

31. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (2 of 3) • (c) Establish minimum reporting and accountability standards for NPOs : • (ii) Desired Outcome: • Improved transparency to donor base. • Improved transparency of NPO operations as fundraising becomes more decentralized. • Increased public scrutiny of NPO performance and financial accountability. • Easy access to information required by Singapore public to make informed and independent decisions about which organizations to support.

32. RECOMMENDATIONS • (4) Improve NPO Fundraising Environment (3 of 3) • (c) Establish minimum reporting and accountability standards for NPOs : • (iii) Rationale: • With limited capital flowing through the NPO sector, there has been less emphasis on accountability. • Lack of public awareness concerning how aid agencies manage and deploy donations. • Limited public awareness of evolving project costs (i.e. rising costs of raw materials, labor and transportation) and timelines. • Potential for public and media backlash due to insufficient background information concerning changes in projects.

33. RECOMMENDATIONS (5) Promote informed and self-directed giving by the Singapore public (1 of 3): • (i) Proposals: • NVPC should continue promoting informed giving and providing public information on NPO performance indicators. Emphasize the importance of accountability. • NPOs should receive additional training in fundraising and cause marketing--NVPC should develop training program. • In case of a disaster, government agencies should promote the cause of a particular relief effort rather than a particular agency or fund. • Encourage more equitable distribution of funds by referring public to a neutral information hub, with links to all NPOs active in humanitarian and disaster relief. (NVPC could be host) • Discourage in-kind donations unless appeals are very focused and resources are available to handle the collection and transportation of donations.

34. RECOMMENDATIONS (5) Promote informed and self-directed giving by the Singapore public (2 of 3): • (ii) Desired Outcome: • Empower individual NPOs to fundraise independently and to respond to disasters with minimal government assistance or support. • Increased accountability and transparency by NPOs directly to their respective donor base. • Singapore public increasingly aware and engaged in NPO activity. • Singapore public capable of making independent decisions concerning which organizations and causes to support.

35. RECOMMENDATIONS (5) Promote informed and self-directed giving by the Singapore public (3 of 3): • (iii) Rationale: • Lack of public awareness about Singapore NPO relief operations and their respective funding needs. • Public perception that Red Cross fund was government endorsed limited other organizations’ ability to fundraise, resulting in a skewed distribution across NPOs. • Red Cross accumulated approximately $85 million; most other agencies accumulated under half a million each. • Limited public information and communications concerning appropriate in-kind donations. • Inefficiency was created by the outpour of in-kind donations from the general public because: • quality and type of donations were inconsistent and sometimes unnecessary; • sorting and kitting of donations consumed significant time and resources; • non-critical shipments added to the congestion at the receiving country ports; • distribution mechanisms at the receiving countries were not necessarily resolved prior to shipment.

36. RECOMMENDATIONS (6) Sequenced Phase Out of Central Fund (1 of 3) • (i) Proposals: • Position the central fund as a default avenue for donations from “uninformed” Singaporeans towards specific disasters. • Use fund only as an interim measure to collect donations from the public, and phase out once NPOs develop stronger fundraising capacity. • Direct NPO fundraising should remain the primary mode of collection; central fund should be positioned as a secondary alternative. • Earmark the central fund to be specifically focused on NPO driven long-term reconstruction projects. Minimize the financing of government to government projects. • Structure the fund as an independent agency with a diverse board, and avoid potential conflicts of interest. • Board member selection to be transparent and driven by NPOs.

37. RECOMMENDATIONS • (6) Sequenced Phase Out of Central Fund (2 of 3) • (ii) Desired Outcome: • Safety net provided for NPOs to ensure that ample resources are available for long-term reconstruction. • Default donation channel provided for uninformed Singaporeans. • NPOs encouraged to develop the capacity to independently raise adequate funds for their disaster relief programs. • Fund operated as a neutral body with minimal conflicts with the fundraising efforts of other NPOs.

38. RECOMMENDATIONS (6) Sequenced Phase Out of Central Fund (3 of 3) • (iii) Rationale: • Takes time for the NPO sector to develop more sophisticated fundraising capabilities and for Singaporeans to become more informed donors. • Dominant central fund limited other organizations’ ability to fundraise. • Central fund does not promote independent project selection, but instead limits NPO activity to projects endorsed by the committee. • NPOs not directly accountable to donors. Potential backlash to Fund if projects fail. • Potential for conflict of interest because board members are also members of recipient organizations. • 80/20 funding rule penalizes organizations that contributed their own collections to the Red Cross fund. • Long term management of fund is an administrative burden.

39. SUMMARY • Key recommendations: • Establish an immediate relief program • Generate a professional relief worker sector • Transition disaster response from volunteerism to professionalism • Create a central relief worker training program • Formalize an information sharing platform • Improve the NPO fundraising environment • Provide pre-approved fundraising permits to NPOs specialized in disaster relief • Revise the regulations that restrict international operations • Establish minimum reporting and accountability standards for NPOs • Promote informed and self-directed giving • Rethink and sequence the phase-out of the central fund

40. SUMMARY • Today’s NPO Sector: • Overly dependent upon government • Constrained by regulatory environment • Limited in scope and scale • Narrow public engagement • Tomorrow’s NPO Sector: • Proactive, vibrant, and mature • Less dependent on government • Free to act internationally • Increased transparency and accountability • Active engagement with public

41. AGENDA Our mission Questions to be addressed Vision of the future Recommendations Proposals Desired outcome Rationale Questions and answers