5. ENSURING THAT A SYSTEM FOR DISASTER MANAGEMENT IS IN PLACE

5.2.5. Budgeting for disaster management and Insurance

To successfully address the various facets of disaster management, budgeting will become and remain a key factor.

Provision will have to be made to more effectively fund the consequences of a disaster. With an improved process of identifying disasters and mitigating against them, the medium-term expenditure process can be used to support disaster management.

State funds allocated for disaster management can be allocated in the following ways:

  • Within the medium-term expenditure framework (planning phase of the budget) for the prevention and mitigation of disasters.
  • During a specific financial year in the event of sudden onset disasters. Provision has been made for a contingency reserve to the amount of R2 billion per year for the next three financial years (1998-99, 2000-01).
  • Funds can be provided in both cases on the responsible spending agency or province's budgets.

How the disaster relief fund works

  • This is administered by the Department of Welfare and is different from the contingency reserve allocated by State expenditure.
  • The disaster relief fund, which falls under the Fund-raising Act, only provides for financial assistance to victims of a disaster on an ex-gratia basis for damages incurred or loss of personal belongings.
  • The Fund-raising Act does not make provision for infrastructure, agricultural damages, etc.
  • The disaster relief fund is provided on the request of the Cabinet to the Department of State Expenditure.
  • The Fund-raising Act does not make provision for a contingency reserve.

However, expenditures to support disaster management are inevitably constrained. This will require that current resources from all roleplayers are rationalised and used more efficiently within and between services and departments. In the long-term, effective hazard and risk assessments and mitigation measures should reduce the severity of disasters, and the requirement for large emergency funds. Funding for such measures should become a part of all development programmes.

The mobilisation of state financial resources in a pre-emptive manner allows the state to respond quickly in utilising available and allocated resources to cushion against the impacts of disasters if they occur. However, it should be noted that relief for disasters is not automatic; each disaster must be assessed. For instance, farmers will not receive state assistance if they have failed to take mitigating measures, however severe a drought may be.

State central functions or a national disaster management centre can also assist in coordinating international sources of funding if the severity of a disaster is beyond the resources of the government (this is only likely to happen in the case of wide regional disasters).

It is important, however, to note that the state only usually becomes involved in relief when whole communities are afflicted with a disaster. It is also very difficult for the state to give a priority undertaking as to the cover it offers for potential flood damage. State assistance is determined on the merits of each case.

Insurance cover is another mechanism to protect individuals, companies and the public sector against damage. In general, the state does not provide cover to individuals and private entities - this is largely the role of the private sector. Presently, the private sector does have a range of insurance products mainly against fire, hail, to some extent flood and other forms of disasters that may cause damage to property or the loss of life. There is still a lot of room to find ways of integrating insurance policies in an innovative way as part of an overall disaster management strategy.

Points of debate and key questions

  • Should the state provide funding for disasters as part of its medium-term expenditure frameworks, or what is the best way for the state to support disaster management and risk reduction, both in it's proactive and reactive forms?
  • Should the state continue to provide blanket disaster relief? In what ways can the state reduce this burden?
  • How should the state make funding available for disaster relief?
  • How should line departments responsible for disasters areas create budget provisions for departments that are supporting agencies and have no budget lines for disaster management?
  • To what extent can or should the state provide incentives to the insurance industry to extend and develop new forms of coverage?
  • Should preventative action be funded from development funds on the national and provincial budgets?
  • Should disaster relief to a country immediately adjacent to South Africa be funded from the special contingency reserve if it affects both South Africa and the neighbouring country equally?

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5.2.6. Use of financial incentives

There are possible incentive mechanisms such as tax rebates and the use of targeted subsidies that can be applied by government to shift away from dependency on state provision of relief assistance. Such incentive measures should also be designed to encourage the implementation of mitigation and prevention strategies, thus also enhancing a speedy recovery where disasters could not be prevented.

The financial assistance, for instance, given to farmers as part of drought relief does not, in its present form, encourage implementing mitigation strategies.

During droughts, the use of blanket subsidies led in the past to the perpetuation of an agricultural system of production that was not obliged to adapt to the occurrence of periodic drought phenomena in this part of the world. On the other hand, Insurance cover in cases of drought encourages early recovery from disasters, which is consistent with long-term sustainable goals. Proposals within the agriculture sector are being explored to examine the possibilities for using part subsidisation of insurance policies of small farmers as a way of reducing their vulnerability to drought effects.

Considerable research and work needs to be done to identify the appropriate incentive mechanisms and how best they could be applied administratively.

Points of debate and key questions

  • What are the main types of financial instruments that can be applied?
  • Who should they be targeted at?

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5.2.7. Use of research

The greater the vulnerability of the population to natural disasters, and the smaller the budget available for disaster reduction measures, the greater the need for research required to determine the most cost-effective measures for risk reduction. Consequently, the need for research and training increases as the availability of funds decreases. Presently, very little research on disaster management is being undertaken in South Africa, especially in the human sciences, as most risk reduction and disaster management approaches have relied on technological or engineering solutions.

Research is a key support mechanism for any activity and thus disaster management should also undertake research projects or study those aspects that have already been researched.

Every region, department or activity will have to determine its own research needs. However, key aspects could include:

  • Identifying key common characteristics of each hazard (which would then make a common approach more cost effective).
  • How to integrate research on risks and hazards into development planning.
  • Research on livelihood strategies in communities at risk.
  • Long-range weather prediction methods, early warning and monitoring systems, decision support tools for disaster management.
  • Research into new forms of technology, such as cloud-seeding.
  • Disaster history of each area.
  • Reports on actual disasters and lessons learned.
  • How other areas or countries have successfully implemented prevention, mitigation, preparedness and awareness programmes.
  • Research into existing human resource capacity.

Points of debate and key questions

  • What are the main areas of research that need to be conducted to support disaster management in the country?
  • What are the relevant institutions, groups, both formal and informal?
  • What are the main forms of technologies that can be applied in risk reduction?

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5.2.8. Training and education

Training: It is clear that many institutions ranging from health, fire to others have training programmes that are designed to ensure personnel are able to deal with emergency situations. Given that disaster management involves a wide ranging field of expertise, the question is: should future training needs be best met with a dedicated programme of training for disaster management, or should training needs be designed that augment and integrate into existing programmes? The use of existing entry routes may help to cover a wider constituency than having a dedicated training programme specifically for disaster management. The main emphasis here being on integration.

Many services and training institutions have compiled, or are in the process of compiling, various training courses and modules that address or impact upon disaster management issues.

Careful consideration should be given as to how best to comprehensively address the training and education requirements for disaster management. Considerations should include:

  • Formal training.
  • Informal training.
  • Community preparedness and awareness training.
  • Orientation of councillors and other key elected representatives (on the need for disaster management).
  • Training of disaster management functionaries (and prospective functionaries).
  • Possible incorporation of disaster management into the curriculum of primary and secondary education.
  • Orientation of chiefs of disaster management (at local government level) (to include the implementation of disaster management).
  • Orientation of senior staff at all levels of government.
  • Training of development workers.

Education and public awareness: Education is critical at the more general level. There is a dire need to improve public awareness and education, especially regarding preparedness and risk reduction and what to do in cases of disaster. Awareness campaigns could be targeted at primary, secondary and tertiary education.

Less formal mechanisms such as media and other public forums should be used to carry the disaster management message to the broader public. Public awareness programmes for disaster management are more cost-effective if they make use of existing resources such as current institutions and other platforms for sharing information.

Such public awareness campaigns around disaster management can be a component of health, environmental and other forms of awareness programmes already being conducted by government institutions, non-governmental organisations, and the private sector. Public awareness programmes are aimed at reinforcing the relationship between functionaries and society.

Points of debate and key questions

  • What should the main objectives of training be in disaster management?
  • Should there be a national disaster management training centre?
  • Who should be responsible for training: government or non-governmental organisations or the private sector? Why?
  • What kind of training and education needs are required to meet the needs of various stakeholders?
  • What can the role of the Department of Education be?
  • Who should be the target group(s)?
  • What design or form should this take?
  • What elements are the most important that can build on existing systems?
  • What form should public awareness programmes take?
  • How can local communities be assisted or strategies enhanced to mitigate disasters?

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5.2.9. Planning and setting of standards

Planning is required to reduce vulnerability. It is also required to ensure that mechanisms are in place to reduce the risks and impacts of disasters when they occur. A major feature of the new disaster management approach is that it attempts to understand the causes of vulnerability and risk. This includes taking into account socio-economic, environmental and others factors that worsen the impacts of recurrent threats. Based on the assessment of risks and hazards that the country faces, planning for such things as building dams or improving water storage capacity in the face of El-Nino can be structured in advance.

Depending on the geographic location and targeting the most vulnerable sectors of our society, plans can be put in place that can be implemented at the national, provincial, local or community level. Mitigating against disasters requires implementation and participation at all levels. The development of contingency plans at different layers of government intervention must be designed to meet the needs and specificity of each agency and area. Planning for disasters is even more crucial in South Africa given the range of social, economic and cultural diversity that exists in the country. This diversity presents unique problems for disaster management.

A typical plan provides for the following:

  • The assignment of duties and responsibilities among government agencies.
  • Identification of risks and areas of vulnerability.
  • A reporting system suitable for rapid receipt of reports and for the notification of other authorities.
  • The establishment of a focal point to provide coordination and direction for the implementation of the plan.
  • The identification of expertise and response resources that may be of assistance in the implementation of the plan.
  • Policies for emergency provision.
  • A link to the international community for the acquisition of assistance required.

There is also a need for a systematic set of guidelines and standards that are adhered to within the different sectors. Several departments and agencies have established these. There is, however, a need for greater coordination between departments and agencies undertaking certification and the issuing of licenses or permits. For instance the South African Bureau of Standards (SABS) investigates and approves various products that are imported into the country. By working more closely with relevant ministries, the SABS can set criteria for products which meet the risk reduction criteria that departments set for managing or mitigating against disasters.

Points of debate and key questions

  • What kinds of plans are needed or need to be developed and at what level?
  • What are the critical issues that need to be addressed for planning?
  • What kind of standards should be set, and in which sectors or areas of disaster management and planning?

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5.2.10. International agencies for liaison and cooperation

Disasters often do not happen within the confines of national boundaries. South Africa is party and signatory to a number of international and regional conventions and protocols that either allow it to access international assistance or act on request to assist international efforts.

International humanitarian assistance should be seen in the broader context of peace, democracy, human rights, good governance, development, confidence building, conflict prevention, and peace keeping. Failure to render humanitarian assistance could, in some cases, lead to instability and violence, which could spill over into neighbouring countries and lead to a far greater problem in the region as a whole. Humanitarian assistance and disaster relief by South Africa should form part of a United Nations (UN) Security Council-sanctioned peacekeeping operation or be given in response to a UN, Organisation for African Unity or SADC appeal for assistance. It should also be undertaken in response to a request from the affected state or interest group (e.g., refugees or victims of a disaster/conflict).

It therefore makes good sense to establish and enhance regional cooperation and liaison, structures. The establishment of a core Southern Africa disaster management centre, attached to one of the SADC countries' disaster management structures at its national level is thus a priority. South Africa already has cooperative agreements with SADC member states in the areas of defence, policing, intelligence, drought and health. These are also being extended in other areas of relevance to disaster management, such as communication, transport, etc.

International and regional cooperation should also be expanded - in particular with UN agencies rendering international relief aid and giving advice on implementing disaster management. The exchange of information could lead to a broadening of the research network and so boost the planning process and make it potentially more cost-effective.

It is becoming increasingly difficult for international organisations to provide aid efficiently and effectively. This is because, apart from logistical problems, the responsibilities of some of the actors are not clearly defined and coordination is inadequate.

The UN acknowledged the need to coordinate responses to disasters at a global level, when, in 1992, it established the Department of Humanitarian Affairs. Under this department a project for humanitarian assistance - the military and civil protection/defence assets project - was launched. This project requires that every participating country establish a single coordination point for its participation in UN-led humanitarian assistance and disaster relief operations.

In South Africa all requests for humanitarian assistance and disaster relief from the international community should be coordinated by the Department of Foreign affairs. Similarly, all assistance to other states afflicted by a disaster should be coordinated by that department. The department budgets annually for funds for international humanitarian assistance.

Points of debate and key questions

  • Is there a need for guidelines that help provincial and local governments to access international sources of funding?
  • How can private sector funds be accessed and coordinated during disasters?
  • To what extent can or should South Africa be more actively involved in disaster management work internationally?

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General | 1. Introduction | 2. Key principles for a Disaster Management policy | 3. Different approaches to Disaster Management | 4. Current situation in managing diasaters | 5. Ensuring that a system for Disaster Management is in place | 6. Intergovernmental and civil society co-operation and co-ordination | 7. Glossary | Contents