CO-OPERATIVE RESPONSE TO

NATURAL DISASTERS

Akira KurimotoDirector, CCIJ

WHAT WE CAN LEARN FROM NATURAL DISASTERS Hazards affecting human activities are

often seen as uncontrollable fatal events but closely related to human opportunities and resources.

Social processes/factors incl. class, ethnicity, gender, age group, disability etc. determine unequal access to opportunities and unequal exposure to hazards (Wisner et al, 1994).

Varied nature of disasters require different approaches and solutions.

WHAT WE CAN LEARN FROM NATURAL DISASTERS

Public sector should play the decisive roles in both rescue and reconstruction phases, but often proved inability due to bureaucratic procedures and fiscal problems, which are widely criticized.

Private sector can contribute to food supply but naturally places priority to business continuity over philanthropy due to shareholder’s pressure.

SSE can act quickly to meet people’s urgent needs, but also help reducing people’s vulnerability to disasters and increasing resilience if it is deeply rooted in communities and prepared to disasters.

There should be concerted efforts among sectors.

DAMAGES BY RECENT EARTHQUAKES

Kobe Indian Ocean Sichuan Haiti East J apan Date 1995.1.17. 2004.12.26. 2008.5.12. 2010.1.12. 2011.3.11. Magnitude 7.3 9.1-9.3 7.9-8.0 7.0 9.0 Human loss 6,434 Ca. 226,000 Ca.87,000 Ca.310,000 Ca.20,000 Economic loss

J PY10 tri. n.a. n.a. USD7.8 bil. J PY25 tri.

Affected area 3 provinces 10+ countries 1+ provinces 2+ countries 10+ provinces Outcomes Volunterers

Risk mana- gement

Early warning system

Reconstruct by pairing

? ?

HOW CO-OPS RESPONDED TO KOBE EARTHQUAKE Co-op Kobe’s damage of JPY 50 billion

including stores, warehouses and HQ+EDPs

Co-op resumed temporary shops to supply food and daily necessities to victims.

Members spontaneously initiated mutual help and volunteering to help victims.

Co-op supplied food, water and blankets to shelters based on agreement with local govt. for supply of necessities in emergencies.

Media praised “Co-op was there to help people in the devastated area.”

HOW CO-OPS RESPONDED TO KOBE EARTHQUAKE Kobe Medical Co-op provided medical

services to victims at the most severely damaged area where 80% of houses burnt.

A large number of volunteers rushed to Kobe leading to proliferation of nonprofits .

Outcomes of SSE’s effortsNGO’s campaign led to the lawmaker-initiated

NPO Act that enabled incorporation of volunteer groups in 1998, but with little tax advantage.

Co-ops and trade unions campaigning resulted in the Act to help reconstruction of victim’s living in 1998 (taxed-based payment of JPY 3 million).

LESSONS FROM KOBE EARTHQUAKE Recognition of co-operative values

Co-op members recognized the importance of mutual help in communities.

Solidarity and caring for others appreciated. Co-ops more prepared to risks

Co-op’s EDP systems relocated to disperse risks.

Co-op’s training program for responding to emergencies implemented.

Co-op’s Business Continuity Plans designed.Co-op’s agreements with local govt. for

supplying necessities in case of emergencies disseminated.

HOW CO-OPS RESPONDED TO INDIAN OCEAN EARTHQUAKE AND TSUNAMI DECOPIN (Indonesia) Nicobal islands co-ops(India) SANASA thrift & credit co-op fed. (Sri Lanca)

400 co-ops and 70,000 members were damaged.Co-ops investigated members damages and

needs.Co-ops supplied food & drugs, built workshops

and offered small credits to victims, etc.SANASA negotiated with Govt. for loans and land

for temporary houses, organized volunteers.SANASA launched 6-months rehabilitation

program and 3-years strategic development program, coordinating international ODAs.

EAST JAPAN EARTHQUAKE AND TSUNAMI CAUSED HUGE LOSSES Enormous human and property losses in wide area of

eastern Japan covering more than 10 provinces. Destroyed infrastructure: rails, roads, ports, fuel, water,

electricity, gas, paddy field, irrigation system, etc. Damaged co-op’s facilities: fishing boats, processing plants,

country elevators, stores, warehouses, home delivery depots, offices, hospitals and clinics, nursing homes etc.

Interrupted supply chain: suppliers of materials and manufacturers of final products were severely damaged.

Damages caused by Fukushima nuclear power plant accidents: contaminated soil and sea, restrained sale of produce and fish, harmful rumor, evacuated population.

Enlarged damages to the national economy thru a large scale power cuts after Fukushima accidents.

Political turmoil hampered quick actions while private sector companies tend to shift to overseas.

HOW CO-OPS RESPONDED TO EAST JAPAN EARTHQUAKE AND TSUNAMI

Zenchu: Urgent help to affected co-ops and victims, fund-raising for affected farmers, request to state aid for reconstruction of irrigation/drainage system and compensation for damages caused by Fukushima accidents.

Zengyoren: Urgent help to affected co-ops, fund-raising for affected fishermen, request to state aid for reconstruction of ports and other industrial infrastructure and compensation for damages caused by Fukushima accidents.

Zenkyoren and Zenrosai: Quick payment to claims for damages in lives and properties.

Norinchukin Bank: Interest subsidies, consulting to finance resuming business operations.

HOW CO-OPS RESPONDED TO EAST JAPAN EARTHQUAKE AND TSUNAMI

Miyagi Co-op, Iwate Co-op and Co-op Fukushima in the affected area continued store operation including mobile shops and shopping buses in remote areas while they could not resume home delivery until April.

Co-op members spontaneously took part in mutual help and volunteering to help victims.

Co-ops supplied to temporary shelters based on agreement with local govt. in case of emergencies.

JCCU: 555 trucks delivered 10 million products to affected provinces during March 11-30.

Co-ops in other area sent trucks, petrol and products. JCCU played a commanding role in coordinating helps

and gave credits for damaged co-op’s reconstruction.

HOW CO-OPS RESPONDED TO EAST JAPAN EARTHQUAKE AND TSUNAMI Health & Welfare Co-op Federation sent 520

personnel including 107 doctors to health co-ops in the affected area in March.

Health co-ops delivered 170 tons of food, water, drugs, sanitary goods and blankets etc.

Insurance co-ops paid insurance claims for life/hospitalizing and voluntary relief money.

University co-ops helped suffering students thru insurance and volunteering.

Co-op members throughout Japan raised funds and joined volunteering to help victims.

LONG-TERM EFFORTS FOR POST-TSUNAMI RECONSTRUCTION Co-ops still deliver food and daily

necessities to temporary houses to support resident’s life.

Co-ops send employees as volunteer coordinators to local government’s volunteer centers and expand collaboration with local nonprofits.

Some co-ops in other areas continue to send co-op staff and members to the affected areas as a pairing assistances.

Co-ops started helping local farmers and fishermen to resume production in the affected area and market their products.

CONCLUSION SSE’s commitment to local development

is expected/tested in case of natural disasters.

Co-op’s delivery of products and services can be seen as lifeline for disaster victims.

It will take several years to reconstruct people’s life, industries and communities.

Co-op has potential to contribute to reconstruction based on people’s needs.

Co-op’s potential should be fully utilized for creative reconstruction.