Conclusion
Drawing on experiences in Indonesia, Sri Lanka, and Thailand, this paper focused on two
aspects of the large relief and reconstruction program that followed the Asian tsunami in
December 2004, a result of which, almost 230,000 people died.
First, various aspects of the effectiveness and financing of aid delivery activities following the
tsunami are considered. The discussion attempts to go beyond the “headline” figures on
international aid to assess the level, composition, and quality of aid flows. Second, the
challenges of designing significant reconstruction programs in the wake of the tsunami were
discussed with reference to the well-known literature about the impact of Dutch Disease
effects in booming economies. Paradoxically, post-tsunami construction programs were
dogged by both slow levels of spending and by funding gaps that emerged as a
consequence of construction cost escalation. In light of this experience, the need to plan for
significant construction cost increases in major building programs following natural disasters
was emphasized. Careful decisions about the pace and the appropriate sequencing of
construction activities are needed to ensure the best use of available funds.
More generally, post-disaster relief and rehabilitation programs involve the participation of
(and contributions from) public agencies, private sector agencies, and households. There
are many important issues—such as the appropriate modes of relief assistance to be used
for rebuilding private houses and buildings, and whether government or aid agencies should
build and transfer houses or should, instead, provide affected households with direct
financial assistance for reconstruction—that are not discussed here. However, the posttsunami
experience provides important insights on how these matters might be approached
following large-scale disasters in the Asian region.
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The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
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