Etapa de Operación

10. Efforts to streamline disaster management are anchored in the disaster management cycle, which has been widely understood beyond a series of events. Though initial recovery response is focused on reconstruction, it is still recommended that livelihood restoration be included in the scope of disaster-related action.4 _{While ADB may have strength in large-scale restoration of infrastructure, it}

has also yielded considerable success in livelihood restoration projects. Based on the Independent Evaluation Department’s (IED) review of selected natural disaster projects with a strong livelihood component, ADB’s livelihood restoration efforts enable beneficiaries to resume normal lives by

3 _{IED. 2010. Asian Development Bank Support for Gender and Development - Phase II: Results from Country Case Studies.}

Manila: ADB.

4 _{N. Carter. 2008. Disaster Management: A Disaster Manager’s Handbook. Manila: ADB. See page 36 for Carter’s discussion:}

“Rehabilitation of crops, production, and other aspects of subsistence and livelihood is included in the scope of disaster- related action.”

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restoring basic services and income-generating activities through rehabilitating and restoring damaged facilities.5

11. ADB's 2004 Disaster and Emergency Assistance Policy (DEAP) identified livelihood as part of transitional support following immediate assistance that has already addressed the rehabilitation of high-priority physical and social infrastructure, and the need to jumpstart economic productivity and revitalize basic services. The 2004 DEAP also recommended cooperation and coordination with specialized (relief) agencies during the transition phase. Regenerating livelihoods and boosting productivity were listed as part of the emergency assistance loan’s (EAL) scope for immediate short- term support. Meanwhile, the 2008 DEAP and its accompanying Action Plan both explain livelihood activities in light of DRR.6 _{ADB's support for natural disaster and postconflict relief concerning livelihood}

was also identified in the 2008 DEAP.7

12. Based on IED’s review of projects with livelihood restoration programs, the livelihood restoration component is usually allocated around 10% of total ADB support, except in exceptional cases such as tsunami recovery efforts for Indonesia, Maldives, and Sri Lanka, wherein around 20% of total ADB support was allocated.

13. ADB's livelihood restoration programs can be broadly categorized8 _{into (i) provision of tools and}

equipment such as tool kits and processing kits; (ii) microcredit;9 _{(iii) cash grants; (iv) training and}

establishment of information systems;10 _{and (v) basic infrastructure such as offices, centers, and}

markets related to livelihood. These are in line with UNISDR’s framework of three overlapping phases in livelihood interventions, which classify provision of tools and equipment, and infrastructure repair and rehabilitation under livelihood protection, and provision of financial support such as loans, alternative livelihood, and income-diversification initiatives under livelihood promotion.11

14. Targeted beneficiaries differ according to the form of support provided. Tool kits and processing kits are often distributed to farmers, fishers, and craftspeople. Microcredit and cash grants are made available to all targeted sectors in the project that need financial support to jumpstart their livelihood. Training and information systems are also provided to all targeted sectors in the project. Construction of basic infrastructure involves facilities such as offices, centers and markets.

15. Project design is based largely on a joint needs assessment undertaken by the government and the international aid community including ADB. Since emergency projects require rapid intervention, subprojects are not identified during appraisal. In most cases, a sector approach facilitates subproject design and selection based on feasibility studies, discussions with executing and implementing agencies, and community consultations. Approval of subprojects relies on a set of criteria agreed upon

5 _{Part of ADB’s recovery support to Pakistan after the October 2005 earthquake (Earthquake-Displaced People Livelihood}

Restoration Program) was to finance the provision of earthquake-displaced people with seismically compliant houses as part of its livelihood restoration component.

6 _{In the 2008 DEAP Action Plan, livelihood activities are included in the vulnerability assessment. Project risk management sector}

assessments concerning livelihood focus on gender (i.e., inclusion of female-specific livelihood opportunities in development options) and agriculture (i.e., supplementary income-generation programs to be considered to ensure sustainable livelihoods).

On the other hand, the 2008 DEAP cites Department for International Development of the United Kingdom’s (DFID) DRR

discussion that includes "disaster proofing" livelihoods to increase resiliency, and the use of science and technology to develop appropriate livelihoods for populations at risk.

7 _{For grants, livelihood development and natural resource management were listed as mitigation support. For regional technical}

assistance, restoration of livelihoods of farmers, community restoration, and development were listed as mitigation support.

8 _{UNISDR has a diagram which shows the five types of assistance and the forms of support under each type.}

9 _{Based on IED’s review, this includes support with and provision of loan subsidy, working capital, and establishment of a}

revolving capital fund to revitalize livelihoods. In Sri Lanka, noncommercial loans were provided as part of the tsunami recovery support (Tsunami Affected Areas Rebuilding).

10 _{In Indonesia, hazard mapping and market data system were included in the livelihood restoration efforts for the fisheries}

component as part of ADB’s tsunami support (Earthquake and Tsunami Emergency Support).

11 _{UNISDR. 2010. Guidance Note on Recovery: Livelihood. Kobe, Japan: International Platform Recovery Secretariat. See pages 7–8}

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by the recipient country and ADB such as timeliness and promptness, design standards, and compliance with ADB regulations. CPS, country operations plans (COPs), and national plans prepared by the government guide the targeted areas for recovery efforts.

16. While the joint needs assessment may be successful in determining project design and scope, there are cases wherein it should not be used to singlehandedly determine the scope of works for the required reconstruction, since final decisions can be made once detailed designs and actual costs are known. In cases of emergency restoration support, flexibility is needed to accommodate evolving changes in needs. The joint needs assessment may be used as a platform to avoid duplication of support from aid agencies through better identification.

17. Project design is also influenced heavily by lessons from ADB’s past experiences in rehabilitation support, and guiding principles agreed upon by ADB and the beneficiaries. Idiosyncratic characteristics and social condition of the affected areas also dictate project design. For example, tsunami support for Sri Lanka and postconflict rebuilding efforts (Tsunami Affected Areas Rebuilding Project [TAARP]) were undertaken at the same time and with a similar delivery framework and policies to minimize the risk of creating a perception of unequal treatment of people affected by either calamity.12

18. Projects were processed under the DEAP guidelines. This ensured expediency in processing and preparing them. In addition, in the case of tsunami support in the Maldives (Tsunami Emergency Assistance),13 _{the quick-disbursing component of the proposed project was used only to finance}

imports identified as necessary for an effective recovery program.

19. In cases of high-profile disasters which command a high volume of support from multiple sources, ADB maintains close coordination to ensure complementarity of efforts.14 _{Separate assistance}

grants from the Japan Fund for Poverty Reduction (JFPR) have provided complementary livelihood restoration support. In Indonesia (Box A3.1), two complementary JFPR grants (Sustainable Livelihood Development for Coastal Communities in the Special Province of Nanggroe Aceh Darussalam, and Rehabilitation of Coral Reef and Mangrove Resources in the Special Province of Nanggroe Aceh Darussalam) jointly established comprehensive livelihood development programs centered on five new key products15 _{and 37 livelihood clusters established in eight subdistricts, which included the creation}

of a livelihood database with 2,637 members, 45 livelihood-learning DVDs with 13,000 users, and village learning points. An additional JFPR grant (Restoration of Microenterprise and Microfinance in Aceh) provided improved financing access to rebuild microenterprises in Aceh, most successfully to women.16 _{A complementary JFPR grant was given to Pakistan (Immediate Support to Poor and}

Vulnerable Small and Landless Farmers Devastated by the October 2005 Earthquake) as part of the livelihood restoration efforts following the 2005 earthquake. The project made every effort to assist

12 _{The pre-tsunami conditions and the situation in the northeast make it difficult to demarcate tsunami- and conflict-related}

rebuilding efforts. Provision of significant support to tsunami-affected people may produce tensions if it is perceived that different parts of the country or different ethnic groups are receiving more than their fair share of reconstruction funds, or if other people who are in poverty, or internally displaced from the conflict, feel they are being forgotten. Both projects were processed under ADB’s Disaster and Emergency Assistance Policy. TAARP will complement and augment other projects in the tsunami-affected areas, benefiting from the current extensive coordination mechanisms established among external parties.

13 _{Details of these loans, grants, and TA operations are in Appendix 2. They are not footnoted when they are referred to in the}

text.

14 _{For example, in the case of tsunami support in Sri Lanka, in the area of livelihood restoration, the World Bank supported cash}

grants and “cash for work” programs in cooperation with the International Labour Organization, Japan Bank for International Cooperation (JBIC) provided a loan for the development of small and medium-sized enterprises, and ADB extended a microfinance and microcredit facility.

15 _{Five key products were identified for established enterprises for eco-livelihood development: hand-line tuna for export to Japan}

for sashimi, soft shell crab, Aceh tiger shrimp, patchouli oil, and chocolate. Under the first grant, 25 different types of enterprises were established, while there were 15 under the second grant.

16 _{Grassroots Microfinance Partnership by Bank BPD Aceh lent to a financial cooperative, Mitra Dhuafa Foundation, which lent up}

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small-scale farmers to shift gradually from traditional low-value to high-value crops (e.g., wheat and vegetables)17 _{and enterprises through the adoption of innovative technologies.}18

Box A3.1: Livelihood Restoration after Indonesia’s 2004 Tsunami Disaster

In parallel with a major grant for Indonesia’s earthquake and tsunami recovery, ADB extended four small-scale projects funded by JFPR targeting non-infrastructure sectors such as microenterprises, health, education, and fiduciary governance. These projects were implemented by international nongovernment organizations (NGOs). The project completion report rated all of the work as satisfactory, but reported that microenterprises and fiduciary governance had some specific challenges. ADB recently highlighted two subprojects that had gone particularly well: one in chocolate production and one in soft shell crab supply chain.

IED made a field visit to check another subproject: an organic fertilizer enterprise (NGO in Jruek Bak). As it turned out, neither the proprietor nor any of his employees were victims of the tsunami. The enterprise was producing organic fertilizer, mushrooms, eggs, tropical fruits, and some local woodcraft. JFPR support was used mainly to help construct an extended wing of the office building, and support financially to conduct workshops for participants from neighboring regions. There was JFPR support to establish their bank accounts, and to introduce modern accounting and local marketing skill transfer; but as of late, bank accounts were no longer used and revenues were simply distributed among the staff involved for products, with no corporate or long-term savings business plan. While the field visit confirmed with local officials that the chocolate and soft shell crab projects involved some tsunami victims, other projects did not fully adhere to the original intention of restoring tsunami- affected households or businesses, demonstrating again the difficulty in targeting meaningful interventions to appropriate beneficiaries, and calling for a careful and supervision-intensive approach.a _{Local government agencies}

were busy with emergency relief issues that were perceived as more pressing, land registration, and shelter/public services restoration. The JFPR effort was later followed up by a much larger United States Agency for International Development (USAID) operation, aiming to proliferate organic farming across Aceh province and beyond. The JFPR’s initial association is now more sustainable for this reason, as it has evolved into a much larger bilateral program to expand the small-scale organic farming business, which may be seen as positive. Although the organic fertilizer NGO is doing well and sustaining the value-added organic agribusiness, it did not involve any tsunami victims or community. The experience begs the question whether it was correct to continue the JFPR funding.

a _{The technical assistance completion report mentioned that the original objectives had changed due to initial project set-up}

delays and internal issues within the contracted international NGO. By 2008, when JFPR started to pick up its implementation, the Earthquake and Tsunami Emergency Support Project (ETESP) was almost completed, and soon afterwards, the government’s Agency for Rehabilitation and Reconstruction of Aceh-Nias (BRR) was closed in April 2009.

Source: IED. See Supplementary Appendix C for details and photos.

20. ADB has chosen to opt for livelihoods based on major industries that have been identified as vital sources of livelihood in the CPS or through national survey data.19 _{For example, in ADB’s recovery}

support to Cook Islands after Cyclone Martin in 1997 (Cyclone Emergency Rehabilitation) (Box A3.2), livelihood restoration efforts were more focused on the pearl farm industry, which incurred an estimated loss of NZ$6.65 million. ADB’s livelihood restoration support to India after the Gujarat Earthquake in 2001 (Gujarat Earthquake Rehabilitation and Reconstruction) (Box A3.3) focused on revitalizing cottage and village industries, the vital source of livelihood in the affected areas, and providing economic opportunities to 14,147 women through the provision of financial support and tools.

21. Tsunami recovery support has served as a platform to expand support to certain sectors. ADB support in Indonesia (Earthquake and Tsunami Emergency Support) (Box A3.4) revitalized and

17 _{Total area planted was 5,530 hectares, with 56,326 households benefited from the seed distribution campaign. There was a}

partial overlap of wheat seed beneficiaries with vegetable seed beneficiaries (peas, spinach, turnip, and tomato seeds). About 80% of seed distribution beneficiaries confirmed to have achieved 75%-100% of pre-earthquake production levels.

18 _{For example, 4,000 livestock shelters were constructed using the earthquake-resistant “cob” technique, and 800 farmer}

community members were trained using “cob” construction techniques.

19 _{Micro and small enterprise (MSE) support was part of the livelihood restoration component for Indonesia (Earthquake and}

Tsunami Emergency Support). A 2002 survey on small-scale informal businesses by the national statistical service revealed that only 65 establishments classified as medium or large firms were operating in 2002. The survey estimated that Aceh had around 190,000 MSEs, each employing an average of 1.8 people. About 80,000 of these businesses, or about 140,000 jobs, are estimated to have been lost due to the disaster.

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strengthened financial institutions to provide microfinance to micro and small enterprises (MSEs).20 _In

Sri Lanka (Tsunami Affected Areas Rebuilding), tsunami recovery support was given at the same time as postconflict assistance for more efficiency. The agricultural component in the livelihood restoration efforts after the tsunami in the Maldives (Tsunami Emergency Assistance) helped renew interest in the industry, mostly through the creation of a handbook, with 5,000 copies printed in local languages. 22. On the other hand, ADB’s livelihood restoration programs for normal projects that are not in response to natural disasters seem to be more focused on providing alternative livelihood. In the case of the Philippines, the integrated coastal resource management project aimed at developing enterprises and diversifying income as a way to alleviate stress on the environment.

23. Based on IED’s desk review, livelihood restoration efforts seem to share common issues.

24. The issue of ADB recalibrating its support on selected priority areas or sectors, instead of spreading it across many, should enable the achievement of optimal results. ADB has a comparative advantage in providing support to certain sectors, so it should focus on its strengths in the recipient country.

25. ADB’s livelihood restoration efforts should remain relevant and complementary to those of other agencies. For example, ADB should consider supporting microcredit only where there are no other sources or when other agencies fail to provide funds or where there is a mechanism already in place to deliver such programs. For ADB tsunami recovery support in the Maldives (Tsunami Emergency Assistance), the microcredit scheme (as did the agriculture component) competed with other external and government programs, but about $800,000 was disbursed to 600 fishers, though many were the same individuals who had received kits and training. ADB support to Bangladesh after the floods in 2000 (Southwest Flood Damage Rehabilitation) included a livelihood restoration through on- and off- farming activities via the establishment of a microcredit facility with 137,000 beneficiaries through 21 partner organizations in six districts. However, the total allocated fund could not be used because of a delay in the start of credit distribution due to a procedural delay in opening an operating account for the project.

26. ADB should review its time frame for completing emergency support following major disasters. Project completion reports (PCRs) have reported that the time frame allotted for emergency operations is too short, considering staffing and recruitment as well as project design, since specific subprojects have yet to be determined at the time of approval. Based on IED’s review, delays were usually 3 years for projects, given their magnitude and scale, while some projects were delayed for around 1 year.21

27. ADB should ensure that the government has proper arrangements in place to generate sufficient funds to operate and maintain the new facilities.

28. ADB-rehabilitated facilities enable beneficiaries to resume normal lives by restoring basic services and income-generating activities.

20 _{Provided training and mentoring to eight private banks and the merged provincial government-owned bank in Aceh Province,}

collectively financing 5,000 women clients with very high repayment rates realized and savings mobilized. The entire Microfinance Innovation Fund (MIF) of $8.5 million was disbursed as grants, deposits, and quasi-equity investments among eight rural credit banks and two commercial banks.

21 _{ADB’s recovery project for the Gujarat earthquake in India (Gujarat Earthquake Rehabilitation and Reconstruction) was delayed}

for 3 years, while tsunami recovery projects for Maldives (Tsunami Emergency Assistance) and Indonesia (Earthquake and Tsunami Emergency Support) were delayed for 3 years and 2 years, respectively. On the other hand, projects that encountered only 1 year of the delay were ADB recovery projects for Cook Islands (Cyclone Emergency Rehabilitation) following Cyclone Martin, tsunami support for Sri Lanka (Tsunami Affected Areas Rebuilding), and recovery efforts in Bangladesh (Southwest Flood Damage Rehabilitation) following the floods in 2000.

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Box A3.2: Cyclone Martin: Cook Islands, 1997 (Cyclone Emergency Rehabilitation)

ADB’s livelihood restoration support to Cook Islands in the aftermath of Cyclone Martin was focused on rehabilitating the pearl farm industry. The project was originally designed for provisions to procure pearl farming equipment such as ropes and floats. However, ADB financing became unnecessary when the Cook Islands Development Bank (CIDB) lent US$1.9 million to 47 farmers to meet working capital needs. ADB also extended support for food production and fishing activities through provision of rudimentary fishing equipment, and procurement of agricultural equipment and materials such as seedlings and other materials for replanting and

cultivation, which realized smaller beneficial impact.a _{While ADB’s livelihood restoration support were not}

implemented as originally envisaged, ADB’s support as a whole still contributed to livelihood restoration by helping in island cleanup and restoring essential services, thus, enabling pearl farmers to return to work. ADB estimated that the project reduced cyclone-induced production losses by around NZ$2 million.

a _{The PCR reported that the project is likely to have had a smaller beneficial impact on other economic activities, such as}

subsistence food production and fishing activities, particularly on the islands of Nassau, Pukapuka, and Rakahanga. While planting material and agricultural tools have contributed to food production recovery, especially on less-affected, more remote islands, food production in Manihiki had not returned to normal as of PCR release.

Source: IED.

Box A3.3: 2001 Gujarat Earthquake: India, 2001 (Gujarat Earthquake Rehabilitation and Reconstruction)

The project focused on the highest priority areas, identified through consultations with the Government of Gujarat