Ricardo Zapata ECLAC 1 Quality and methods of field data collection: Presentation of ECLAC methodology: why it works and when it does not Expert consultation on collection and validation of economic data related to disasters Ricardo Zapata-Marti Focal Point on Disaster Evaluation 9 December 2004

Ricardo Zapata ECLAC 2 Background The first damage assessment carried out by ECLAC was in 1972, following the earthquake of Managua The first damage assessment carried out by ECLAC was in 1972, following the earthquake of Managua Since then, ECLAC has participated in the damage assessment of more than 35 extreme events occurred in Latin America and the Caribbean Since then, ECLAC has participated in the damage assessment of more than 35 extreme events occurred in Latin America and the Caribbean These assessments were mainly done on request of the countries affected in order to support the demand of financial resources for reconstruction from the international community These assessments were mainly done on request of the countries affected in order to support the demand of financial resources for reconstruction from the international community ECLAC has designated a Focal Point for Disaster Evaluation to pursue technical assistance to countries and promote the issue of disaster reduction as part of ECLAC’s agenda ECLAC has designated a Focal Point for Disaster Evaluation to pursue technical assistance to countries and promote the issue of disaster reduction as part of ECLAC’s agenda

Ricardo Zapata ECLAC 3 The importance of economic assessment of damage and needs Have a record on damage caused by past events Have a record on damage caused by past events Establish link between level of damage and magnitude or strength of a certain category of event Establish link between level of damage and magnitude or strength of a certain category of event Value losses to quantify needs for rehabilitation and reconstruction Value losses to quantify needs for rehabilitation and reconstruction Put in evidence the benefits of mitigation and reduction Put in evidence the benefits of mitigation and reduction Make information available to potentially affected or exposed communities (stakeholders) Make information available to potentially affected or exposed communities (stakeholders)

Ricardo Zapata ECLAC 4 WHAT IS THE ECLAC METHODOLOGY A tool for the socio-economic and environmental assessment of disasters A tool for the socio-economic and environmental assessment of disasters Multi-sectoral and multidisciplinary damage evaluation and quantification method for disaster affected sectors Multi-sectoral and multidisciplinary damage evaluation and quantification method for disaster affected sectors Standard sectoral procedures that allows comparability of results Standard sectoral procedures that allows comparability of results Instrument for the decision making process and for policy formulation as it identifies more severely affected sectors, geographical areas and vulnerable groups Instrument for the decision making process and for policy formulation as it identifies more severely affected sectors, geographical areas and vulnerable groups Conceptual improvement for measuring aspects not included in national accounting and assessing specific vulnerability (of social groups, such as women and the environment) Conceptual improvement for measuring aspects not included in national accounting and assessing specific vulnerability (of social groups, such as women and the environment)

Ricardo Zapata ECLAC 5 Assessment phases Pre-disaster situation Pre-disaster situation Damage and loss assessment Damage and loss assessment Replacement vs. Reconstruction costsReplacement vs. Reconstruction costs Reconstruction strategy Reconstruction strategy WhatWhat HowHow WhenWhen

Ricardo Zapata ECLAC 6 Some things are easier to measure than others IT IS DIFFICULT TO DETERMINE IT IS DIFFICULT TO DETERMINE The value of lives lost or affectedThe value of lives lost or affected The opportunity cost, cost-benefit or investment / profitability. This is associated with the lack of adequate base lines that assess the level, quality and efficiency / efficacy of health services providedThe opportunity cost, cost-benefit or investment / profitability. This is associated with the lack of adequate base lines that assess the level, quality and efficiency / efficacy of health services provided The value and quality of services provided (both curative and preventive)The value and quality of services provided (both curative and preventive) The duration of the transition / emergency phase (when field hospitals and evacuation processes are operational)The duration of the transition / emergency phase (when field hospitals and evacuation processes are operational) IT IS EASIER TO DETERMINE IT IS EASIER TO DETERMINE The amount of investment required for reinforcement vs. The potential losses in equipment and inventoriesThe amount of investment required for reinforcement vs. The potential losses in equipment and inventories The cost of reinforcement as compared to the reposition cost of affected infrastructureThe cost of reinforcement as compared to the reposition cost of affected infrastructure The alternative cost of providing services when infrastructures collapseThe alternative cost of providing services when infrastructures collapse

Ricardo Zapata ECLAC 7 WHAT IT DOES: Allows projecting future performance of the affected economy in the short and medium term, and implement the necessary corrective economic policy measures Allows projecting future performance of the affected economy in the short and medium term, and implement the necessary corrective economic policy measures Allows to determine the State’s capacity to face reconstruction tasks and determine needs for cooperation and international financing Allows to determine the State’s capacity to face reconstruction tasks and determine needs for cooperation and international financing Facilitates training in damage valuation and formulation of mitigation strategies Facilitates training in damage valuation and formulation of mitigation strategies Involves affected population with relevant authorities and aid providers Involves affected population with relevant authorities and aid providers Puts in evidence the systemic character of the development process and the interaction among sectors and stakeholders Puts in evidence the systemic character of the development process and the interaction among sectors and stakeholders

Ricardo Zapata ECLAC 8 Main Concepts Damage (Stocks) Impact on assets Impact on assets InfrastructureInfrastructure CapitalCapital StocksStocks Occur immediately during or after the phenomenon that caused the disaster Occur immediately during or after the phenomenon that caused the disaster Losses (Flows) Effects on flows Effects on flows Production Reduced income and increased expenses Are perceived after the phenomenon, for a time-period that can last from weeks to months, till recuperation occurs Are perceived after the phenomenon, for a time-period that can last from weeks to months, till recuperation occurs

Ricardo Zapata ECLAC 9 Social Sectors Social Sectors HousingHousing HealthHealth Education, culture, sportsEducation, culture, sports Infrastructure Infrastructure Transport and communicationsTransport and communications EnergyEnergy Water and sewerageWater and sewerage Productive sectors Productive sectors Goods: agriculture, industry Services: commerce, tourism, etc. Global impact Global impact On the environment Gender perspective Employment and social conditions Macroeconomic assessment SECTOR BY SECTOR VALUATION METHODOLOGY

Ricardo Zapata ECLAC 10

Ricardo Zapata ECLAC 11 What do we need for a “quick and dirty assessment”

Ricardo Zapata ECLAC 12

Ricardo Zapata ECLAC 13

Ricardo Zapata ECLAC 14 Some decisions to be made upfront Units of measure (thousands, millions, lacks, crores) Units of measure (thousands, millions, lacks, crores) Level of aggregation: state wise, nation, regional, lower (district, talukah) Level of aggregation: state wise, nation, regional, lower (district, talukah) Sectoral aggregation: what to include in livelihoods, in productive sectors, in social or infrastructure (case of water and sanitation and clean water, case of environmental services) Sectoral aggregation: what to include in livelihoods, in productive sectors, in social or infrastructure (case of water and sanitation and clean water, case of environmental services) Value of replacement (for damage) and reconstruction (for project formulation to include mitigation and upgrading) Value of replacement (for damage) and reconstruction (for project formulation to include mitigation and upgrading)

Ricardo Zapata ECLAC 15 Thank you