BUSINESS/INDUSTRY DISASTER LOSS REDUCTION MEETING

1. BUSINESS/INDUSTRY DISASTER LOSS REDUCTION MEETING Oliver Davidson March 24, 2000 Tulane University

2. •BUSINESS LESSONS LEARNED • GENERAL OBSERVATIONS • NO SECTOR PRIVATE, PUBLIC OR NGO WAS PREPARED • OVERWHELMED BY MAGNITUDE AS WELL AS UNFINISHED PLANNING • CRITICAL SERVICES FAILED - IMPACTED BUSINESS (OTHERS) • - TELEPHONE IN MANAGUA •   - KEY BRIDGES FOR EXPORT AND RAW MATERIALS DESTROYED

3. POSITIVE IMPACTS CELL PHONES, BELL SOUTH WORKED SOME DONATED SUPPORT THE MANAGUA AIRPORT CONTROL HANDLED A HUGH INCREASE IN AIR TRAFFIC NO NEAR MISSES

4. CORPORATE LESSONS • MANY FOUND INTERNAL PROCEDURES AND PREPAREDNESS PLANS WERE INADEQUATE • PLANNED AND EXERCISED FOR INDUSTRIAL ACCIDENTS, NOT DISASTERS • COMPANIES WITH “DAILY” THREATS WERE GENERALLY BETTER PREPARED (OIL, AIRLINES, SHIPPING, ETC.)

5. CORPORATE LESSONS (CONT’D) •  SOME PLANS WORKED - 4 HELOS FROM GUATEMALA •  EMPLOYEES LOCAL AND EXTERNAL RALLIED TO HELP •  INSURANCE WAS NOT ADEQUATE TO COVER MAGNITUDE OF LOSSES

6. CORPORATE LESSONS(CONT’D) • COMPANIES OFTEN SUPPORT GOVERNMENT ACTIVITIES WITH TRANSPORT, FUEL, ETC. • INACCURATE VIEW OF GOVERNMENT CAPABILITIES AND DISASTER PLANS • SHALLOW UNDERSTANDING OF DISASTER NEEDS, OR HOW TO ASSIST VICTIMS • FEW HAD LINKS TO INTERNATIONAL DISASTER ORGANIZATIONS

7. CORPORATE LESSONS(CONT’D) • SERVICES OFFERED TO GOVERNMENT AND OTHERS, NOT ALWAYS WELL UTILIZED •  NEED FOR ACCOUNTABILITY STRESSED • STATEMENTS ABOUT DONATED RELIEF SUPPLIES, ALMOST ALL NEGATIVE • -NOT APPROPRIATE (OLD CLOTHING) • -FEW INVOICES • -INABILITY TO PRIORITIZE HANDLING -LACK OF CONSIGNEE

8. CORPORATE LESSONS(CONT’D) • RESULTED IN LOSS, DUPLICATION, WASTED FUNDS, FRUSTRATION • SHIPPING CONTAINERS TIED UP WITH RELIEF SUPPLIES AT COMPANY EXPENSE • INABILITY OR RELUCTANCE TO DONATE MORE RESOURCES (BUILDING MATERIALS)

9. CORPORATE LESSONS(CONT’D) • CONCERN FOR WELFARE OF EMPLOYEES WAS VERY OBVIOUS • FIRST AID, CPR AND DISASTER EDUCATION • NICARAGUAN SUGAR INDUSTRY HAS 25,000 EMPLOYEES • BANANA WORKER ALSO CLOSELY TIED TO COMPANIES

10. CORPORATE LESSONS(CONT’D) • COMPANIES ALLOW LIMITED EMPLOYEE/COMMUNITY ACTIVITIES • HIGH LEVEL OF UNEMPLOYMENT AND UNDEREMPLOYMENT WILL LIMIT PARTICIPANTS IN ANY EMPLOYEE FOCUSED DISASTER PROTECTION EFFORT

11. BUSINESS DISASTER PLANNING SEMINAR • REQUESTED BY THE AMCHAM MEMBERS IN NICARAGUA • HOW TO MAKE A DISASTER PLAN • ROLE FOR EMPLOYEES • COORDINATION WITH GOVERNMENT

12. AMCHAM • AMCHAM CENTRAL AMERICAN DISASTER TASK FORCE • HELP PREPARE THE AMCHAM AND MEMBERS •  COORDINATION WITH GOVERNMENT •  LINKS TO EXTERNAL SUPPORT LATIN AMERICAN CHAMBERS • PAN AMERICAN DEVELOPMENT FOUNDATION

13. ELEMENTS • BUILDING LOCAL CAPACITY AND COORDINATION •  DESIGNED AND CONDUCTED BY REGIONAL DISASTER SPECIALISTS •  CORPORATE RISK MANAGERS •  GOVERNMENT DISASTER OFFICIALS •  INTERNATIONAL TECHNICAL EXPERTS

14. PLAN (CONT’D) • BUSINESS/INDUSTRY DISASTER COMMITTEES (COUNTRY LEVEL) • LONG TERM INTEREST?

15. CONCLUSION 1. Venezuela-Growing awareness among American Chambers of Commerce in L.A. of the need to do more in preparing for disasters. (Ecuador,Ven., Mitch etc.) Pan American Development Foundation is working with ACLA to improve disaster preparedness and response capability. Comprehensive survey of all companies would be a good place to start. American Chambers of Commerce would be a good place to start an ongoing series of seminars on disaster preparedness at the plant or company level. Also a need to develop Chamber specific disaster preparedness plans.

16. Conclusion • Try to help ACLA units in planning, developing improved disaster response mechanisms. Training would be important in this process. Seminars, simulations and models could help to provide a more strategic and coherent focus to respond to disasters.

17. PAHO • PAHO fully supporting foundations etc. and involvement with the private sector. We need to open the public sector to the private sector. PAHO has in country human resources to offer (40 people in the region). We are looking for returns ( donations) from the private sector. SUMA , the PAHO management information system on donated supplies could use private sector expertise in logistics and supply.

18. Cultural Shift to Prevention • Prevention is the key – business recognizes the cost of disasters in the US. We need to work with business to think about prevention. This is a major responsibility where the American companies can take the lead. What does FEMA have. • Project IMPACT – Prevention is possible at all levels.

19. A different Viewpoint • In the end it is the sectors that borrow/build to reconstruct --- all of us are the “guts” of our sectors that need to take the responsibility for societal vulnerability. Look at what is driving the economy. If you want business to do something make a compelling economic case. Look at companies where corporate culture includes prevention.

20. Sector Sector • Governments have to be sensitized to work with the private sector. • Assist FEMA to work with the LA Development Association Foundation • Connections and technology to build and retrofit buildings engineer the stuff in early on. • IDB loan required involvement with FEMA for prevention.

21. Lessons from IMPACT • Shared vision by public and private sector. • Leadership (passionate) • Trust between public and private sector. • Resources

22. Where are the Value Added Pieces • US weather service initiative is important. • Mexico --- companies taking responsibility for their own employees. • A model might exist in the Phillipines. And Los Angeles. • What to do about data loss. Two member states lost entire land ownership.

23. Other Issues • NGO’s are important and have a whole set of issues that need to be considered as well. • Another important issue – a major issue on the part of latin ambassadors – after a disaster people want to donate things, the official government representatives get inundated with goods which clog the whole system. This is seen as their number one problem in times of disasters.