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Damage and Reconstruction Needs Assessment Course
1. Course Content
Table of Contents
Course Description
Learning Objectives
Aims of the Course
Learning Outcomes
Assignment
Issues
2. Basic Learning Materials
Presentations
Session 1 - Introduction to Damage and Needs Assessment Methodology and
Basic Concepts
Session 2 - Valuation of the Impact of Disasters
Session 3 - Post Disaster / Post Crisis Management with Prevention and
Mitigation
Knowledge Check
Case Studies
Case Study 1 - El Salvador: Damages from 2001 Earthquakes
Case Study 2 - India: Gujarat Earthquake Recovery Program
Knowledge Check
Readings
Knowledge Check
3. Summary
What We Have Learned
Course Project
4. Course Resources
Reference List
Glossary
5. Course Evaluation
Questionnaire
Damage and Reconstruction Needs Assessment Course
1. Course Content
Course Description
Disasters have a major impact on the living conditions, economic performance, and
environmental assets of affected countries. Consequences may be long-term and may cause
irreversible damages to environmental, economic and social structures.
Statistics show that disasters cause the most significant and irreversible damage in developing
countries, where the poorest and most vulnerable population groups are disproportionately
impacted. By contrast, in the developed world, a considerable degree of protection against
disasters has been achieved, as a result of effective prevention, mitigation and planning
measures that reduce vulnerability. But even with these impressive results, damages in these
countries have risen due to greater concentration and value of societal activities.
To reduce the long-term impact of disasters, and to achieve sustainable growth, affected
countries must (i) assign financial resources for prevention and mitigation of the foreseeable
impact of disasters, and (ii) ensure that once disasters occur, reconstruction investments
incorporate vulnerability-reduction measures. This latter point should be underscored in light of
reconstruction efforts undertaken by many countries. In most cases, we observe that vulnerability
is reconstructed along with destroyed assets, mainly because of scarce resources available
beyond the emergency and humanitarian assistance stage.
This course offers a set of diagnostic tools1[1] to measure the type and extent of damage and
losses caused by a specific disaster. It can be used immediately after the emergency stage to
assess the direct and indirect effects of a catastrophic event, and its implications for the social
well-being and economic performance of the affected area. This comprehensive methodology
covers the broad range of effects and their cross implications for the economic and social sectors,
physical infrastructure, and environmental assets. Based on its estimates, it is possible to
determine the reconstruction requirements and identify appropriate reconstruction programs and
projects.
1[1]
The course is based on the methodology and assessment tool developed by Economic Commission for Latin America
and Caribbean (ECLAC)
Damage and Reconstruction Needs Assessment Course
1. Course Content
Learning Objectives
The course introduces basic tools that can be used to assess the damages and losses caused by
natural disasters. The accompanying analysis also provides guidance for long-term policy
decisions that aim at reducing disaster risk and vulnerability.
Aims of the Course
The course aims to provide a better understanding of:



basic concepts of disaster valuation
links between disasters, post-crisis management and development
tools for socioeconomic and environmental valuation of disasters that can be used to
(i) plan for reconstruction on the basis of assessed damages and needs
(ii) plan for better risk management (reduction, mitigation and prevention)
(iii) orient action at the local level, and
(iv) guide policy
Learning Outcomes
At the end of the course you will be able to:





appreciate the multidimensional, cross-cutting nature of impacts of disasters
use the methodology developed by ECLAC for assessing the socioeconomic and
environmental impact of disasters
distinguish between disasters associated with natural phenomena (the so-called “natural
disasters”) and those associated with human intervention
understand the parallels between disaster management and post-crisis management
establish links between policy formulation and policy implementation
Damage and Reconstruction Needs Assessment Course
1. Course Content
Assignment
Before you begin…….
Before you begin this online course, we ask you to reflect on the situation in your country.
1. Consider a recent natural disaster in your country. Which sector – the social, infrastructural or
productive – was impacted most severely? (The social sector includes housing, education and
health; the infrastructure sector includes roads, bridges, water and energy; the production sector
includes small, medium and large businesses.)
2. Describe briefly the damages to the sector impacted most severely.
3. Were people displaced from the impacted areas for a long period of time?
displaced due to damages or to subsequent reconstruction efforts?
4. What were the biggest hurdles during the reconstruction period?
The length of your assignment should not exceed 1.5 pages.
Were they
Damage and Reconstruction Needs Assessment Course
1. Course Content
Issues
Disasters do not happen in a void. Climatic and geomorphologic events have natural causes as
well as those associated with socially reduced or increased vulnerability. It is important to
understand these key concepts when designing and planning policies to reduce human suffering.
Post-disaster response involves not only the management of an emergency. The way in which
reconstruction needs are filled can either reconstruct previous vulnerability or include appropriate
mitigation and prevention measures that will allows the country to better manage risk in the
future. When recurrence of events is certain within short time cycles, they are fundamental to
keeping the country’s development process on track.
What types of needs – short, medium and long term – emerge after a disaster, and what types of
approach do they require? Are there any positive outcomes of disasters? Short-term time
recovery brings increased activity and demand in some sectors, namely construction, but
disasters can also jumpstart change in structures and organizational arrangements by making
obvious the need for greater resilience. Changes can include better preparation, monitoring, the
creation of early warning and contingency plans, reinforcement of infrastructures, financial
provisions, etc. How can one ensure that governments and communities take advantage of the
post-disaster “window of opportunity”? What type of policies should they choose?
From the viewpoint of macroeconomic policy, the key questions are: how much money does the
government need to finance the reconstruction costs and how quickly can it obtain it while
remaining within the framework of sustainable fiscal policy? To answer this question we need to
know what interventions are required, how to identify them and prioritize among them. Three
types of issues need clarification:



Methodological: performing a needs assessment vs. a causal analysis of the disaster
Operational: setting priorities; differentiating between different types of assessment
depending on the disaster phase
Policy: translating the assessment into policy: resource allocation vs. policy change
promotion
Damage and Reconstruction Needs Assessment Course
2. Basic Learning Materials
Presentations
Session 1 - Introduction to Damage and Needs Assessment Methodology and Basic
Concepts – R. Zapata
This session briefly reviews the concepts associated with disasters: their nature and causes, phases and
cycle. It elaborates on the causal link between exposure and vulnerability as they relate to the damage and
reconstruction needs assessment. The session attempts to create a common language of basic terms and
concepts that can be used by specialists from different disciplines who are involved in disaster assessment.
It introduces the terminology used in ECLAC methodology and discusses the basic elements of disaster
valuation. It also presents potential uses of the damage and reconstruction needs assessment in policy
formulation.
Power Point Presentation
Transcript
Power Point Presentation with Audio (Please use the Full Screen mode. To switch to the Full
Screen mode, click the right mouse button on the presentation)
Session 2 - Valuation of the Impact of Disasters – R. Zapata
Disasters impact the welfare of people, in terms of lives and injuries that are difficult to quantify.
Damage assessment therefore mostly focuses on socio-economic and environmental damages
that occur as a consequence of natural catastrophes. These losses of assets and the impact on
flows of goods and services in the vary according to local circumstances and the time, strength
and duration of the disastrous event. Effects can be direct and indirect, and affect different
sectors of the economy in distinct ways. Thus, assessment must be done carefully to avoid
possible duplication. The session summarizes the methodology used to assess the overall impact
of damages, in the short- and medium-term, on the main economic variables, social systems and
the environment.
.
Power Point Presentation
Transcript
Power Point Presentation with Audio (Please use the Full Screen mode. To switch to the Full
Screen mode, click the right mouse button on the presentation)
Session 3 – Prevention and Mitigation: Post-disaster Management – R. Zapata
Post-disaster response is an opportunity to reconstruct in a way that makes the affected
population and region less vulnerable to disaster risk. The choice of prevention and mitigation
tools - structural, organizational, financial – and the process of choosing itself have long-term
effects on vulnerability. The session reviews the mitigation and prevention measures that should
be considered, the necessity of stakeholder involvement, the costs of mitigation and the
challenges to its implementation.
Power Point Presentation
Transcript
Power Point Presentation with Audio (Please use the Full Screen mode. To switch to the Full
Screen mode, click the right mouse button on the presentation)
Damage and Reconstruction Needs Assessment Course
2. Basic Learning Materials
Case Studies
Case Study 1 – El Salvador: Damages from 2001 Earthquakes
Using ECLAC methodology, the paper quantifies damages from the 2001 earthquake in El
Salvador. According to estimates, the total damage was US$1.6 billion. The damages are divided
into direct damages and indirect losses, and the sectoral distribution of losses is also presented.
The figures reveal that most of the damage was to physical infrastructure and equipment,
followed by an increase in costs, losses in production, and diminished income in the provision of
some services. Two thirds of the total damages was borne by private sector. These facts have
implications for the specifics of the reconstruction program.
Case Study 2 – India: Gujarat Earthquake Recovery Program
Soon after an earthquake of magnitude 6.9 hit Gujarat on January 26, 2001, the Government of
India requested the World Bank's urgent intervention to help address the unprecedented level of
destruction. The Bank, along with the Asian Development Bank, immediately sent an assessment
team to the devastated areas, and produced a joint damage and recovery assessment report in
March 2001. The methodology used in the assessment is similar to that of ECLAC. This case
study is based on the summary findings of the joint assessment.
Damage and Reconstruction Needs Assessment Course
2. Basic Learning Materials
Readings
Damage to and Vulnerability of Industry in the 1999 Kocaeli, Turkey Earthquake
The Kocaeli earthquake is considered to be the largest event that hit an industrialized area since
the 1906 San Francisco and 1923 Tokyo earthquakes. The total damages reached US$ 4.5
billion, 70 percent of which were direct damages and 30 percent was due to business interruption.
The paper reviews the usual industrial damages caused by earthquakes and compares them with
the Kocaeli losses. The paper concludes by making policy recommendations about how to avoid
significant interruptions and adverse effects on business, as a way of controlling indirect
economic losses which constitute a major portion of total earthquake losses.
Damage Overview
The paper gives a methodological review of the damage-related concepts in the ECLAC damage
assessment toolkit. It also explains the process of consolidating the sectoral damage results into
economy-wide estimates of damages. It emphasizes the importance of providing selected
breakdowns of total damages and losses in order to present a complete overview of the general
impact of disasters and to facilitate future comparisons. The paper also gives a summary table of
the effects of the most common natural hazards on infrastructure and agriculture.
A Matter of Development: How to reduce Vulnerability in the Face of
Natural Disasters
The paper reviews disaster-related damages in Latin America between 1970 and 1999. While the
estimated total damages exceed US$50 billion - using ECLAC methodology - the paper argues
that the assessment of damages caused by disasters should include their highly disturbing effects
on the emotional stability of affected population, their dislocation and other social and
psychological factors. Due to these additional effects of disasters, major political and social
crises have arisen from inappropriate government response to crises. This highlights the
importance of political and institutional factors of disaster management and vulnerability reduction
strategies.
Methodological and Conceptual Aspects of Damage Assessment
The reading gives a basic introduction into the methodological and conceptual aspects of the
damage and needs assessment methodology developed by ECLAC. First, it reviews its main
characteristics and the relationship between vulnerability, hazard exposure and impact, in order
to provide input to policy identification. Then, it gives a detailed description of methodological
considerations such as the timing of the assessment, prices used for valuation, sources of
information, type of damages to be considered, the macro-economic effects of disasters, and the
ways to estimate macro-economic aggregates.
Damage and Reconstruction Needs Assessment Course
3. Summary
What We Have Learned
Disasters are clearly a development problem. First, because certain natural phenomena tend to
have greater effects on developing countries than on developed countries. Second, because
several structural factors associated with a low level of development exacerbate such effects.
Third, because the negative impact of natural phenomena on the prospects for long-term
development is considerably greater in less developed countries. Thus, confronting them in a
systematic and coherent fashion must be an explicit objective of development strategies.
Vulnerability, in general terms, may be defined as the probability of a community suffering human
and material damages when exposed to a natural hazard, given the degree of fragility of its
infrastructure, housing, productive activities, the degree of organization, warning systems,
political and institutional development. Developing countries in general have a higher degree of
vulnerability as has been recently and very dramatically shown in Africa, Asia and Latin America
and the Caribbean. Additionally, statistics indicate that the world in general is affected by a high
and growing number of natural disasters.
There is no one given behavior or pattern in the effects and scale of the damages caused by
different disasters. Rather, the resulting pattern is determined by a combination of factors
including the size of the economy and its situation before the event, the structure of production,
the nature and scale of the phenomenon, the moment (time and duration) at which the disaster
takes place, the degree of social organization and participation, political and institutional capacity,
and the way in which the government, society and the international community face the problem.
Thus, assessments of damages caused by natural disasters should include their highly disturbing
effects on the emotional stability of affected populations and the dislocation of large population
groups, with important impacts on social and political stability, in addition to valuing the direct
losses and indirect effects on the economy and the environment.
The short, medium and long-term impact manifests in different ways (damages in economic and
social infrastructure, changes of priorities, environmental changes, external or fiscal imbalances,
inflationary processes, negative income redistribution, changes in demographic structure, etc.).
The long-term macroeconomic effects are reflected in a large number of variables and may be
summarized as a downtrend in per capita income. One of the most important effects of a disaster
is the immediate worsening of national living standards. This effect, albeit mostly concentrated in
the directly affected population living in the area where the disaster was most violent, generally
affects a country’s entire population in one way or another. In some cases irradiation even
reaches neighboring countries (migrations, vector transmission, increased risk due to
deterioration in watersheds, reduced demand for imports, interrupted communications, etc.).
All things considered, the long-term effects of disasters call into question at least two aspects
related to a country’s development strategy: first, understanding that resources earmarked for
preventing and mitigating the impact of natural phenomena are a very high-yield investment, both
in economic and social and political terms, in line with long-term growth. Second, the spending
actions and decisions that are taken once a phenomenon has arisen must be seen from the
perspective of reducing vulnerability, in other words, in a combined reconstruction and
transformation approach aimed at positively and increasingly reducing the degree of vulnerability
and, therefore, improving the prospects for future development.
Damage and Reconstruction Needs Assessment Course
3. Summary
Course Project
Objective of the Project
The project is intended both as a theoretical exercise for assessing the diverse effects of a
natural disaster in a city, and as a practical one that will provide you with the necessary tools to
face a real evaluation event. In this project, you will estimate the impacts of drought on a
hypothetical Central American city by applying the ECLAC methodology covered in this course to
the basic information provided here.
Project Description
The goal of the exercise is to estimate the impact of drought on a Water Supply Enterprise in the
affected city. You will use the data provided by its financial statements and information on water
demand and supply to make a projection of the enterprise’s increased expenditure (both
investment and operational) and reduced billing, discounting insurance reimbursements. The
specific questions are found following the background information.
Background Information
Based on the Preceding Data, Find:
1) 1) The following expenditure items:
 
Investment required for the digging and equipment of the new deep wells and their
connection to the electric grid and the water treatment plant
 
Increased costs of the old well system by increasing the hours of operation
 
Operation costs of the new wells, which can be assumed to be the same as the old
wells
2) 2) The diminished income due to reduced billing for the service, taking into account the
supplied volume of water as compared to the “normal” level, for the duration of the
drought.
3) 3)
The insurance reimbursements, once accounts are presented by the enterprise.
4) 4) The impact on the external accounts via:
 
The value or part of the cost of equipment and materials imported, not produced in
the country, and
 
The part of insurance reimbursement that comes from external reinsurance.
Evaluation Criteria
Submission of the Course Project is a course completion requirement. The exercise should be
submitted within two weeks of finishing the review of basic training materials.
Evaluation of the project will be based on the following criteria:
1. 1. Detailed explanation of the procedure and solutions, with discussion of the case
context
2. 2. Use of, and references to, course content in the explanations
Damage and Reconstruction Needs Assessment Course
3. Summary
Course Project
Objective of the Project
The project is intended both as a theoretical exercise for assessing the diverse effects of a
natural disaster in a city, and as a practical one that will provide you with the necessary tools to
face a real evaluation event. In this project, you will estimate the impacts of drought on a
hypothetical Central American city by applying the ECLAC methodology covered in this course to
the basic information provided here.
Project Description
The goal of the exercise is to estimate the impact of drought on a Water Supply Enterprise in the
affected city. You will use the data provided by its financial statements and information on water
demand and supply to make a projection of the enterprise’s increased expenditure (both
investment and operational) and reduced billing, discounting insurance reimbursements. The
specific questions are found following the background information.
Background Information
Based on the Preceding Data, Find:
5) 1) The following expenditure items:
 
Investment required for the digging and equipment of the new deep wells and their
connection to the electric grid and the water treatment plant
 
Increased costs of the old well system by increasing the hours of operation
 
Operation costs of the new wells, which can be assumed to be the same as the old
wells
6) 2) The diminished income due to reduced billing for the service, taking into account the
supplied volume of water as compared to the “normal” level, for the duration of the
drought.
7) 3)
The insurance reimbursements, once accounts are presented by the enterprise.
8) 4) The impact on the external accounts via:
 
The value or part of the cost of equipment and materials imported, not produced in
the country, and
 
The part of insurance reimbursement that comes from external reinsurance.
Evaluation Criteria
Submission of the Course Project is a course completion requirement. The exercise should be
submitted within two weeks of finishing the review of basic training materials.
Evaluation of the project will be based on the following criteria:
3. 1. Detailed explanation of the procedure and solutions, with discussion of the case
context
4. 2. Use of, and references to, course content in the explanations
Damage and Reconstruction Needs Assessment Course
4. Course Resources
Reference List
Social Sectors, in Volume I, Handbook for Estimating the Socio-economic and Environmental
Effects of Disasters, Economic Commission for Latin America and the Caribbean (ECLAC)
Infrastructure, in Volume II, in Handbook for Estimating the Socio-economic and Environmental
Effects of Disasters, Economic Commission for Latin America and the Caribbean (ECLAC)
Economic Sectors, in Volume III, in Handbook for Estimating the Socio-economic and
Environmental Effects of Disasters, Economic Commission for Latin America and the Caribbean
(ECLAC)
Overall Effects of Damages, in Volume IV, in Handbook for Estimating the Socio-economic and
Environmental Effects of Disasters, Economic Commission for Latin America and the Caribbean
(ECLAC)
Damage and Reconstruction Needs Assessment Course
4. Course Resources
Glossary
Affected population. Those affected in varying degree by a disaster. They should be
specifically catalogued in terms of gender, social strata, ethnic or other classification, including
those belonging to physically challenged, etc. They are catalogued, in terms of severity of
damage, as:
Primarily affected. Men, women, children of all social strata, ethnic or social groups,
whose livelihoods and welfare is severely affected by a disaster in terms of deaths,
injuries, losses or severe damage to their houses and employment, and other major
consequences on their well being. It includes also population evacuated, in temporary
shelters or that had to seek refuge after the event.
Secondarily affected. Men, women, children of all social strata, ethnic or social groups
that had indirect impact in their livelihoods in welfare, that lived in the directly affected
area (towns, communities, area directly impacted by the disaster).
Tertiary. Men, women, children of all social strata, ethnic or social groups that were
impacted by overall (global economic and social) effects by a disaster, i.e., increased
prices in goods and services, disruption in the provision of these, psychological trauma,
etc.
Direct damage. Negative consequences of disasters in terms of assets lost, damaged or
affected. First perceived in physical terms, i.e. miles of roads, hectares affected either in
agricultural land, forests or environmental reserves, production already completed but lost as tons
of agricultural products, numbers of industrial production units; or infrastructure affected as
number of health services’ facilities, number of bed, schools or number or classrooms destroyed,
etc. Part of the direct damage, although not quantified specifically in terms of monetary value,
are lives lost, injured persons and the primary, secondary or tertiary affected population.
Disaster cycle. The interconnected phases before, during and after the occurrence of an event.
It links the prevention, early warning, response, reconstruction and mitigation actions that are
taken in the face of an event.
Disaster reduction. The systemic approach to disasters that consists of prevention and
mitigation actions, investments, projects and strategies.
Disaster. An event that causes major disruption on the economy, society and the environment.
Its origin or causes may be directly derived from natural phenomena, i.e. geophysical (as volcanic
or seismic events that cause collapse of infrastructure, landslides or liquefaction, etc.) or climatic
(as hurricanes, typhoons, tornadoes, major variation in rainfall both in terms of excess or deficit
causing drought). Although usually not covered by the methodology, disasters may also have a
“human” or anthropic origin as chemical spills, industrial accidents, or voluntarily caused events
such as war, terrorist actions, etc. Disaster consequences or damage will always be associated
with human intervention before, during and after the event (the “disaster cycle”).
Environmental impact of disasters. The short, medium and long-term effects, either positive or
negative, on environmental assets and on services provided by the environment.
Hazard. Exposure to an event associated with natural phenomena, whose severity, recurrence
and presence in a specific geographical location is subject of scientific analysis and statistical
probability calculation.
Indirect effects. Consequences, either positive or negative, for flows related to the production,
provision, distribution or performance of goods and services, i.e. additional costs of transport,
reduced income of enterprises, increased expenses of government, reduced tax revenues,
insurance payments received, increased imports or reduced exports, etc.
Mitigation. Actions or investments needed to reduce risk, i.e. exposure to hazards by reducing
preexisting vulnerability.
Prevention. Actions or investments needed in the face of imminent hazards. Distinct from
mitigation, which is a permanent strategy, prevention is seen as a pre-disaster set of activities.
Productive and reproductive work. It refers to work performed by women in terms of salaried
income (productive) work in the market place, and non-salaried (reproductive) work performed in
the household directly related to family care, child rearing, nursing the ill, provision of household
needs, etc. In addition to these activities, women will perform “informal” activities, or work done in
the household that do not receive monetary income but provide goods for the family, mostly in
rural areas, in terms of vegetable gardens, small animals reared such as chickens, goats, etc.
Risk. The probabilistic determination of the damages a certain hazard can cause given the
existing vulnerability, location and time.
Sector. Area of economic or social activity, such as agriculture, industry, education, health
services, etc. Grouped, for the purpose of valuation, into three: social, infrastructural and
productive (including both goods and services)
Socioeconomic impact of disasters. Short and medium-term consequences, either positive or
negative, for (a) key economic indicators and overall economic performance and (b) key social
indicators and social capital
Vulnerability. Conditions of economic, physical, social and environmental infrastructure that
determine the probability that a certain hazard will cause a certain degree of damage.
Damage and Reconstruction Needs Assessment
Acknowledgement
This web-based course is part of the Natural Disaster Risk Management Program developed in
the World Bank Institute. The program development benefited from the guidance of the World
Bank Hazard Management Unit, and financial support of Government of Netherlands and UK
Government’s Department for International Development.
The training materials, case studies and readings include the proceedings of a WBI learning
course in Disaster Risk Management, Istanbul, Turkey, April 28-May 2, 2003. The course also
incorporates policy, research and working papers, conference and workshop proceedings from
World Bank, Hazard Management Unit (formerly DMF), and ProVention Consortium. References
are made to documents prepared by UN Agencies working in Disaster Management related
fields, Inter American Development Bank, Asian Development Bank and International Federation
of Red Cross and Red Crescent Societies.
Course Contributors
Presentations:
Ricardo Zapata, ECLAC
Structural Design and Technical Support:
Katarzyna Chelkowska, Consultant, WB; Andrei Tolstopiatenko, Senior Information Officer, WB;
Arseny Malov, Information Officer, WB; Hector Montenegro, Information Analyst, WB
Course Development and Supervision:
Katalin Demeter, Senior Urban Specialist, WB
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