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IT MAKES BETTER ECONOMIC SENSE TO INVEST IN NATURAL DISASTER
REDUCTION STRATEGIES, OAS MEETING CONCLUDES

  September 13, 2005

Investing in natural disaster reduction strategies is much more cost-effective than relief and rebuilding and makes good sense, experts and officials of Organization of American States (OAS) member countries have joined representatives of international agencies in arguing. They said natural disaster mitigation and response issues must also be given a much higher political profile.

“We need to have a clear idea, in cost-benefit analysis, of the up-front costs of investing in disaster mitigation, as opposed to waiting for disasters to strike and paying the much higher costs of relief and clean-up,” Chairman of the Permanent Executive Committee of the Inter-American Council for Integral Development (CEPCIDI), Jamaica’s Ambassador Gordon Shirley concluded as he wrapped up the first meeting of the Joint Consultative Body on Natural Disaster Reduction and Risk Management, at OAS headquarters Monday evening. Among other objectives, the Consultative Body’s mission is to identify ways to finance risk-reduction plans and programs in the Americas.

“In order to move this issue up the policy agenda, natural disasters must be examined as core developmental and economic policy issues,” said Ambassador Shirley, who is Co-Chair of Joint Consultative Body. Significant progress has been made in hazard-mapping and vulnerability assessments, but public awareness of the issues must be raised as well, he told the meeting that was facilitated through the office of the Assistant Secretary General, Albert Ramdin.

Chile’s Ambassador to the OAS Esteban Tomic, the other Co-Chair of the Joint Consultative Body, in opening remarks accentuated the strong connection between security and natural disasters, and pointed to lessons drawn from hurricane Katrina’s devastating striking on southern United States as well as last year’s hurricane Ivan’s devastation of Caribbean countries and parts of the USA. He stressed the need to examine land-use in areas at risk and measures to improve preparation for disasters. Tomic noted that the mission of this Joint Consultative Body includes identifying and strengthening public private-alliances surrounding natural disaster strategies.

Secretary General José Miguel Insulza stressed the importance of collaboration among a wide range of organizations and institutions covering all sectors, given the far-reaching implications when disasters do occur. He called for intensified efforts to mobilize more investment in risk reduction while boosting development projects.

Representatives of various international agencies addressed the meeting, with member state ambassadors engaging in discussion of key issues and concerns raised. Director of the OAS Office for Sustainable Development and Environment, Scott Vaughan, highlighted key lessons drawn from years of project and policy experience and presented a just-completed “working paper” on the economic costs of disaster mitigation in the Caribbean.

The collaborative effort of the OAS, World Bank, Inter-American Development Bank (IDB) and International Monetary Fund (IMF) was triggered by last year’s destructive hurricane Ivan. It makes the case for investing in risk mitigation actions as more cost-effective—pointing to important actions like better hazard mapping, stronger building codes and standards for schools, hospitals, roads, homes and infrastructure and ensuring those standards are monitored and enforced. He announced plans by his office to use Grenada’s “Build Back Better” model after hurricane Ivan as a pilot for a multi-country or regional approach to support risk reduction.

Presenters also drew attention to the vital role that diaspora communities can play in supporting mitigation and response strategies in their home countries.

Dr. Ciro Ugarte shared the Pan American Health Organization’s (PAHO) perspective on disaster preparedness response; the IDB’s Marlene Attz spoke about risk management; Amy Coughenour of the Pan American Development Foundation (PADF) spoke about vulnerability reduction and disaster management; while Errol Berkley presented on disaster response-risk management, for the Inter-American Institute for Cooperation on Agriculture (IICA). Robert Thayer made a presentation on behalf of the United States Agency for International Development (USAID), while Major General Keith M. Huber presented for the Inter-American Defense Board.

The national experiences of Chile and Grenada were highlighted. Lessons drawn from Chile’s experience with major earthquakes and other disasters over the past 11 years were outlined by Dr. Alberto Maturana, Director of the National Emergency Office of Chile; while Grenada’s Ambassador, Denis Antoine, outlined his Caribbean country’s experience with hurricane Ivan. Among other highlights, Antoine noted the importance of issues like land titling to facilitate credit, housing finance and reconstruction; and the need for ongoing training at the national and regional levels with stakeholders involved in the construction sector.

Reference: E-195/05