Financial Planning for National Disaster in the USA and India - Essay Example

Financial planning for national disaster Name Institution Introduction The report intends to discuss the financial planning on national disaster comparing strategies used by USA and India. World Bank has been seen as the main stakeholder and one of the active alliances in disaster management in both nations. The historical overview of disasters affecting the two nations has been discussed with examples and how the government as well as the community responds to the new strategies employed for the process of mitigation. The two nations are merely among the developed nations of the world. Though a myth me exist that developed nations are more vulnerable to natural disasters, this has been somehow the case as stated by World Bank report (2002). The report will be organized in a discussion manner. Examples of disasters facing the two nations are given and how these nations integrate cost-effective strategies to mitigate the injuries and destructions caused by these disasters. Natural disasters may include floods, hurricanes, earthquakes, fires, mudslides and avalanches, landslides, cyclones and tsunamis. The review of the past natural calamities will help the stakeholders to monitor and as well identify vulnerable regions of disasters. India has widely used GIS system in pre-disaster management process which is very sovereign. USA on the other side has employed priority framework (Hyogo framework 2005-2015) which comprises of comprehensive involvement from different stakeholders. Apparently, there is international concern on this issue of disaster management. So, most of the nations have employed more less the same cost effective strategies in disaster management. The surveillance of the impact of past disaster will make the stakeholders understand the right cost effective strategies for management. Overview The international community needs to employ all the effort and to mitigate, respond and be ready to capacitate the outcome of disasters globally (Bouma MJ, et al. 1997). In this case, the community is defined as all the integrated bodies including households, government involvement, countries integration as well as international cooperation. Therefore, it is a big role for the community to focus on education on disaster preparedness and hazard reduction, disaster facilitation and logistics without leaving settlement planning for people in vulnerable regions (Dilley, 2005). The report focuses on the two vulnerable regions of disasters in the world (India and United States). Definitely, it is proved that disasters can happen anywhere at any time especially when there is weird changes in the environment irrespective of economic status of a nation. Talk of mudslides and landslides. When human beings, for instance, decides not to take care of vegetations that is covering mountains or hills, the region will be highly vulnerable to landslides mudslides during the raining seasons. Apparently, it is evidently shown in the World Bank Report (2011) that countries experiencing or that are faced with disasters are mostly the developed countries like Japan (Haiti), India, and United States. Cost effective spending as well as cost benefit analysis will be the lines in which the report will be focusing on when analyzing the possible efforts and challenges faced by the two countries when it comes to disaster management and reduction. The World Bank Report (2011) shows that South Asia, where India belongs, is experiencing a remarkable increase in region’s Gross Domestic Product (GDP) of about 8.7%. This clearly shows that the community in the region can possibly afford to facilitate the warning systems of disasters hence reducing the possible heavy post-distractions of disasters. There are quite a number of primary interventions of disasters in the region. For instance, the World Bank in the year 2011 approved $ 1.2 billion for the construction of Padma Bridge Project (World Bank Report 2011). What is the case in United States? Seismographers realized that most of the central parts in the Latin America are most vulnerable to hurricanes. So the government and alliance body like the Central America Probabilistic Risk Assessment takes a greater responsibility to disseminate information on risk places and ensures the development of insurance market (Kreimer, A. Arnold, M. and Carlin, A. 2003). India India is most vulnerable to several disasters due to its unique landscape and climatic conditions (Ministry of Home Affairs Report, 2002). These include; Orissa Super cyclone, Gujarat and Tsunami earthquake, Floods, Droughts and high winds, Landslides caused by heavy rains and fires resulting from earthquakes It has been a create challenge for India government in applying the collective knowledge for reducing the impact of these disasters. However, the government has put in place quite a number of economic strategies in prevention of injuries and possible greater destructions posed by these natural calamities in the region. Apparently, there is a development of post-loss consideration that will integrate all the aspects of cost benefit analysis of the disasters. Sometimes disasters are very hard to deal with since the factors contributing to it are very diverse ranging from political, economic to ethnic diversities (Department of Agriculture and Cooporation Ministry of Agriculture, Government of India, 2009). Factors contributing to disasters in India Shortage of water: Distraction of water thanks in Muharashtra has led to drought within the region in India making people around the place to suffer when it comes to dry season. Water tanks are one of the storage facilities to cap the deficit of water especially when it is approaching dry season. Apart from water deficit, storage thanks also reduces the cases of flood since excess water from rivers may be pumped and stored in the tanks thus reducing sedimentation that may leads to flooding (Martens, Rotmans and Rothman, 2002). India soil condition: Most regions in India are widely covered with black cotton soil which makes the region most vulnerable to landslide especially when there is small disturbance of seismic waves. This happens when the soil magnifies the vibration and transmits the shaking effects to the buildings that have fragile foundations (Martens, Rotmans and Rothman, 2002). Political instability: World War II had a little impact on India’s economy. Most of the trading partners from Europe were disrupted thus interrupting trading products of agricultures and later resulting to famine not only in Europe but also in India (Waston, R. T. et al. 1998). Nonetheless, the effects of influenza that killed many of the economic builders during the instability were not realized which is genuinely interpreted in economic progression of India where there was the formation of India Red Cross Organization for disaster mitigation. Political instability is also realized between the tribal race in Japan and India. The disruption has led to approval of multi-donor trust for restoration (Shekhar, M. 2009). These are actually quite a number of examples of disaster factors in India that will lead us when analyzing the strength and weakness of the nation in responding to natural disasters. Indeed, India is one of the developed countries of the world especially when it comes to information technology. Generally, mitigation as well as preparedness of any disaster needs financial trust thus the report will focus on the economic lines of effective interventions. United States The report from National Oceanic and Atmospheric Administration (NOAA) says that US nation is experiencing several disasters like, tornados, heat waves from oceans, flooding, hurricanes, solar storms that had impacts on electrical and information communication systems. In the process of recovery and prevention, this has cost the economy of US about $ 1 billion each aggregating to approximately $ 7 billion (Johnson, R. 2000). Like India, United States of America has brought in a wide range of innervations to cap up the case of disasters in the nation. The government has primarily raised and as well mobilized the concentration on the federal, state and local authorities to take responsibility in disaster management. Among the stakeholders of the interventions are policy developers and Geographic Information System (GIS) team which aid in passing warning systems to the vulnerable regions in the nations (Johnson, R. 2000). Interestingly, United States nation is proactively involved in planning on how to recover and reengineer the economy after the occurrence of a disaster not only within the nation but also in the collaborated economies since there is that cohesiveness among the global nations. Financial consideration after cost effective and cost benefit analysis has been calculated will be a comprehensive approach for mitigation (DIANE Publishing Company. 1995). Some of the factors contributing to disasters in USA Factors contributing to disasters in United States are not merely different from those of the rest of the world. For instance global warming is a worldwide phenomenon. Therefore, it affects different places of the world differently depending on the intensity as well as the frequency of climate related conditions. According to Raymond and Haripada (2005), the history of natural disasters shows that disasters have taken a great role in development of American’s economy and human survival. Statistics from the past four decades showed that the natural hazards like the hurricanes, floods as well as wild-land fires experienced in Latin America have led to the destruction of both the economic and nation’s infrastructures without merely the absence of environmental reimbursements. Other contributing factors to disasters in USA are, effects of human activities when it comes to deforestation of several places for the purpose of agricultural activities, unbalanced human settlement is some regions for instance nucleated regions in Texas which makes the place more vulnerable to disasters. In this case US nation comprehended that; Long period of below average precipitation leads to meteorological drought and inadequate moisture for crops leads to agricultural drought and it results from when the water in the lakes, aquifers or reservoirs is statistically below average (Raymond and Haripada, 2005, 3). From the report on World Disaster Mitigation (2003), two types of natural disasters were realized that needed US government attention- The Hydro-meteorological disasters which include avalanches, heat waves, wind storms and others like insect infections and The Geophysical Disasters which include earthquakes and Volcanic activities. It was clear that the Hydro-meteorological disasters majorly affected agriculture as well as rangeland and forest areas. The concentration to these disasters scaled down the economy of America by about 8.5% as reported in World Bank Report 2011. USA USA has integrated quite a number of agencies in their process of disaster management and mitigation. The Federal Emergency Management Agency FEMA as well as United Nation concern has greatly contributed towards reduction of risks and injures that is posed by the occurrence of a disaster (Statement of Sir. Asif A. Khan, Director Financial Management and Assurance. 2011).These is not actually the two bodies that are only concern with mitigation and risk reduction. US government as well as the whole community plays a major role in this process too. Contingency financing that is for emergency revitalization and reconstruction is merely from the US government (Maxx Dilley, 2005). Typically, there is a comprehensive plan of disaster management and mitigation in US that leads to proper allocation of resources for cost-effective hazard management that is strategic. Apart from international assistance from World Bank, not only on finances but also in pre-disaster management efforts like preparedness and mitigation, US government have initiated Annual hazards workshops that is under National Hazard Research and Application Center (NHRA). The workshops have greatly developed innovative insights that support disaster policies especially in the vulnerable places within US, for instance areas around Cuba (Kreimer and Arnold, 2003). The goal of these network workshops in the US includes; Appraising and certifying the experience of women and men both before and after the occurrence of a disaster, Equal representation of gender in political, ergonomics, historical and artistic context and structuring a sustainable international community of researchers and activist towards the management of disaster (Kreimer, A. Arnold, M. and Carlin, A. 2003). This has actually mobilized both the national (contingency funding) and international (e.g. World Bank concern, 2011) resources in undertaking disaster perils especially in the cases of flood risks. Recently, World Bank produced an inclusive report on how advance technology has contributed positively to disaster management especially in developed nations. Though developed nations are more vulnerable to natural disasters, they are able to reduce hazards caused by the occurrence of the disaster to an insignificant impact (phenomenon* vulnerability). However, the country may lose further total prosperity to disaster management as compared to developing countries of the world, for instance, most countries within the premises of sub-Saharan Africa. This is totally reflected from the World Bank Report where Caribbean Region was allocated $ 116.1 million dollars for the purpose of disaster risk reduction (World Bank Report 2011). This is not actually a loss by government, but after inclusive global knowledge on cost-effective analysis, the total value of injuries and property destruction that would have been posed by hurricanes in the region was probably to exceed the allocated value by 500%, which is unreasonable figure (World Bank Report, 2011). Catastrophe insurance policy in Caribbean economy aided much too in this process of reducing risks. After development of this policy, insurance professionals recorded about 45% of premiums that were corresponding to cover against natural perils in the region. Out of this pool (45% non-life premiums corresponding to natural disasters), 25% were directed to insure against earthquakes, 20% against hurricanes and the remaining 55% was for against other hazards as fire and flood (World Health Report. 2002). The results from the World Bank Report (2011) showed that 1.7 million families that are more vulnerable to natural disasters benefited from Familias en Acccion program in 2008. This was an initiative from United Nation central governance when they introduced a universal framework of disaster management called Hyogo Framework. The same framework strengthened the Yangtze River project in China protecting over 70 million people and about 1.6 million of hectares of land from flood destruction in the region. The main aim of Hyogo Framework (2005-2015) of Action is to build flexibility in the nations that are more prone to natural disasters. The framework considers both the cost-effective and effective spending terms of disaster. It has as well come up with successful policies for prevention which include; first dissemination of information about disaster, proper funding when it comes to infrastructure procurement, appropriate intervention roles played by different institutions in information and pre-education on disaster management and mitigation. Surely, not all nations can provide sufficient resources for mitigation strategies towards disaster management. Neither also do the developed nations value hazards posed by the disasters but rather allocate risk management funds so as to maintain the disaster management cycle. Although there are quite a number of advantageous propositions (strengths) discussed earlier towards disaster management in USA and India, there is also a great challenged posed by the gap in abilities of the two nations. Some of the disaster management framework lacks competitive strength in information for ethnic minorities (OECD Report, Statement from WHO, 2012). The Organization for Economic Co-Operation and Development OECD, project was developed by United States government and was commenced and recommended in 2003, with the objective of helping countries detect risks before it happens. The project encompasses management policies that will propose to the affiliating countries the effective strategy that is cost-effective and thus reducing the impact of the vulnerable groups. Usually, in the process of disaster management cycle, all the stakeholders should offer their full sustenance (WHO, 2012). However, OECD project is faced with substantial diversity among the tribes of United States. For instance, out of 562 tribes in United States, 22 of them are centralized around New York States; Navanjo, we have 19 others containing Jicarilla and Mescalero tribes. So we realize from the stakeholders that the focus of Bureau of India Affairs together with Homeland Security Department and the Department of Agriculture is on Pueblo and Navajo tribes. Other tribes are not considered although they are vulnerable too. Apparently, Indians tribes in New Mexico are less considered from these hazards especially those tribes that are vulnerable to wildfires, droughts and floods in the region. Therefore, this practice defines the mode of leadership and management driving the project (Department of Agriculture and Cooperation Ministry of Agriculture, Government of India, 2009). From the US Department of Defense, which is designed to provide effective internal measures on the cases of disasters, the report shows that there is no good stewardship in the department that plan the use of these funds effectively as prescribed by the statutes of the state. It is clear that the payments for mitigation processes are not correctly allocated due to unreliable financial information from the government. Over the past years between 2008 and 2010, The Government Accountability Office GAO and The Department of Defense's DOD have been unable to provide enough funds since they lack both the financial information as well as budget information from the US government. Therefore, stakeholders’ ability to ensure transactions of mitigation on that period of vulnerability n United States was weak and the whole country was likely to incur much on post-disaster management (Statement of Sir. Asif A. Khan, Director Financial Management and Assurance. 2011). Further, the report indicated the create weakness of the alliance team comprising of the community, government under the ministry, World Bank and UN organization was from the weak and inaccurate cost information obtained from the vulnerable places. Therefore, at this time of high vulnerability due to climate change and economic retrogression, the concerned alliances in US should critically monitor and guarantee a steady progress of the set priorities as determined by Hyogo framework on disaster management. India approach to national disaster risk reduction There are quite a number of approaches India is using to reduce national disaster risks in vulnerable places. The overview of this pointed out some examples of disasters that are prone to South Asian regions of the world. India is geographically located at this region thus experiencing the same disasters as the regions around. It is very true that a disaster can demolish development hard work within a short span of time making Millennium Development Goals (MDGs) difficult to be achieved (Ozerdem,A and Jacoby, T. 2006). The present of initial capital as well as grants from collaborative countries of the world, Indian government have integrated several models and frameworks set to reduce the injuries and risks that will result from the occurrence of a disaster. Geographical Information System (GIS) among other advanced technology projects have largely contributed to pre-warning to the region most susceptible to these natural calamities. This has greatly helped to reduce death and loss of properties since the systems gives notification of any danger that is going to happen. India has also adopted a universal strategy that focuses on global development priorities. From the United Development Nation’s Group (UNDG) report, the UN strategic framework was adopted with the objective of guiding the areas on funding, capacity building and development as well as gender consideration in terms of risk education and personal empowerment (women involvement in decision making), advanced functioning of strategic framework of UN (Government of India Ministry of Home Affairs. Mohanty, S. Karelia, H.and Issar, R. 2004). As pointed out by the World Bank Report (2011), the strategy will apparently rely on public as well as the private sector for its success in striving to achieve Millennium development goals. There was a release of $ 1 billion credit and loan by World Bank that was projected to support the Indian government in rejuvenating most productive Iconic River in the region. Investigation of infrastructure was one of the top priorities in the framework. The Bank also added $ 40 million for the National Emergency Rural Access program (NERAP). The project aided much in rehabilitation of 15,000 hectares of land thus improving land drainage especially in the areas near the rivers. This would allow safe market logistics and market information which will make the marketers to be more certain of their operations thus improving the economy of the country (World Bank Report, 2010. No. 57776-AF). The framework also integrated the advance system of Information communication Technology (ICT) for disaster risk reduction. This was a great strength in driving towards reducing injury, loss of property and deaths after the disaster. The system components entail internet access, GIS, automatic sensing and satellite link. This reduced the cost of planning and implementation of catastrophe hazard reduction measures on India government financial planning (India Ministry of Home Affairs-National Disaster Management Division, 2004). India adopted India Disasters Resource Network which is a powerful electronic inventory that centers all the resources for disaster response, facilitation, human resource and logistics. The system is used by 602 District Administrators of India, about 5000 commercial bodies, with one alliance (Confederation of Indian Industry CII), Builders association of India (BAI) and the entire public sector in the nation (India Ministry of Home Affairs-National Disaster Management Division, 2004). This is a remarkable corporate strength portrayed by responsible bodies in the country. The Ministry of Home Affairs in collaboration with the private and local sectors developed Knowledge Management and Information system that looks on disaster preparedness and mitigation. Knowledge Management was all about acquiring the appropriate knowledge at the right time in the precise place (Ministry of Home Affairs- Knowledge Management in Risk Reduction, 2002). The system intended to incur small cost in pro-actively impacting various domains like disaster management plans and policies to the community thus reducing the future impulse of disasters. This system needed major government bureaus, policy developers, disaster managers and specialists from different fields like architecture, seismology and agriculture. Considering pre-loss value (pre-cost) more than post-loss value (post-cost), the system gained strength from better response by affiliate bodies, Empowered Ministry Disaster Risk Reduction Departments, financial estimation from cost benefit analysis, consideration for integration into typical development of the nation and the good practice when it comes to assigning responsibilities to disaster management in the public. Thank the United Nation (UN) for coming up with a universal disaster reduction framework, ‘Hyogo Framework’ that builds resilience ground in managing risk reduction. This is an initiative from United Nation and apparently Indian government appreciates it much (World Bank Report, 2007). Typically, the framework focuses on priority of actions that any other government should set to reduce the post-cost caused by natural disasters. The framework has 5 steps that will enhance efficiency and effectiveness in cost analysis. It includes; making a disaster risk reduction a priority, evaluating the hazards and later taking action, rising awareness and understanding to the community, reducing the hazard and be ready to take action. Conclusion In conclusion, it is difficult to concise the best strategy for disaster management but rather, it is of great important to develop a universal framework that can as well manage funds both internationally and locally. Appreciated frameworks like Hyogo are quite useful in pre-disaster management as embraced by both countries (USA and India). It looks like USA and India uses the same strategies despite they location difference. There is still a great challenge in managing funds allocated for disaster in the two nations. However, India and USA have really embrace technology in their strategies. For instance, there is broad use of GSI systems in the vulnerable places of the two countries. The concern of the homegrown self-governance and noble governance from the two nations has been really appreciated by the community from the center of political point of view. Disaster management has also been seen as one of the global poverty reduction. Alongside with World Bank and other active participants, local government is most vital in integrating cohesion in disaster robust development. However, the local government may endure challenges like insufficient cost information as well as weak financial grounds besides the involvement of World Bank. Reference Bouma MJ, et al. 1997. Global Assessment of El Nino's Disaster Burden. 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