Disaster and Economy

1. Disaster and Economy G.VAIDYANATHAN Former DY. Director General, Factory Advice Service & Labour Institutes Government of India Now Safety Consultant & Advisor SHE Cell, Bombay Chamber of Commerce and Industry

2. Disaster and Economy • Economy is quite vulnerable to occurrences like War, Technological innovations and Disasters, Manmade or Natural Disasters • While Proactive Safety Preparedness Efforts can Protect Economy from Collapse All Disasters including Chemical, certainly affect the economy • We witnessed this in our country and in other places as well • But public memory being short we tend to forget the impact of Disaster on the Economy we jump from one Crisis to another Crisis

3. Extent of Affliction to Economy by Disaster • Disaster affects economy in many ways: death, destruction, extensive damage to property and loss of morale • Further modes of Affliction are trade and Commerce, National & International • While the former impact lasts till reconstruction, the latter impact may go beyond duration of reconstruction and involves political dimension which is difficult to address • Further, disasters obviously have its cascading or domino effect on Globalised economy • Now-a-days it is felt more quickly due to interdependence and faster means of Communication

4. Details of Impact of Disasters on Economy • The first impact is economic loss to individuals affected by disaster, property damage, immediate and long term • Impact on trade & commerce, short and long term, could be quite hurting • Even Lack of Safety in the over all sense gives rise to use of Non-tariff measures being invoked by powerful Nations • Economists apprehend that Global Warming and failure to agree to capping norms could result in NTB by Western World • Measures like REACH is viewed as Protectionists measures by some

5. Details of Impact ….Contd… • The impact of Certain Disasters on our Economy were significant to put it lightly • To name a few the following are significant in today's value: -- Bhopal Disaster -- Fire in Semiconductor Factory in Chandigar -- Fire in Jaipur Oil Depot

6. Details of Impact ….Contd… • In respect of Bhopal Disaster, Factory is Closed and the City’s population is yet to recover from the disaster even after 25 years • Country’s Safety Record in International arena took a beating • The above aspect will give a big handle to impose NTB measures even now in terms of International Trade • Fire in Chandigar Factory critical to our effort necessitated an Exclusive Budget provision in our General Budget • Fire in Jaipur Oil Depot is still being assessed

7. Details of Impact ….Contd… • Viewing Disasters in the Globalised Economy is the present ball game • Globalised Economy means Slender Profit Margins, Fierce Competition among Countries as dealings could be outside the purview of WTO Which is euphemistically called NTB • There will be serious problems in regard to Trade dealings Nationally and Internationally • Already we have experienced the Signs and Symptoms affecting the trade in the past e.g Azo dyes in Garments Child labour in Carpets and Garments etc • Western Countries are sending their representatives to Production Centers for Checking the SHE Conditions

8. Details of Impact ….Contd… • Because of the Interdependence of Economy the SHE concerns are to be integrated into the Supply Chain • Recently there was an incident of accident in one of the vendors’ unit of a big Auto firm • Questions were raised as to whether the Auto company sent out their Safety Professionals to Audit the Safety measures in the Vendor’s Premises • If this piece of Information were to be used as NTB then our Business prospects could be affected • Quality, Delivery Schedules, efforts relating to Environmental Conservation are becoming increasingly critical to Economy including disposal in the context of Global warming and Climate Change • Disasters could affect all the above in one go

9. Our Strengths in this regard • While the impact of Disasters on the Economy has been dealt to the extent of being dubbed as Scare Mongering it would be worth while to mention our Strengths: -- Low cost high tech operations are possible -- Advantage of Knowledge of English -- Communication revolution and our Strengths in IT & IT enabled Businesses • All the above would go in vain if the economy suffers on account of Neglect in Ensuring SHE Concerns, in all work activities and more so due to Disasters • The above will be possible by well meaning Nationalists to bring about an awakening among Population

10. What is the Solution • The solution to these problems lies in improving Safety Level and Emergency Preparedness for mitigating the impact of Disasters • We need an overview approach to success in every walk of Life particularly in regard to Business • We need to have a proper understanding of where the Cause of Deficiency in terms of SHE aspects as well as the modalities of Impact on the Economy • Particularly linkages of Lack of SHE concerns and its impact on Economy • Now only we realise the importance of Child Labour NTB, need for integrating SHE concerns in the supply Chain etc • We need a collective will to achieve this. Shall we Call it National will.

11. Thank You