Money best aid in disaster: Survey

Money best aid in disaster: Survey

Eva C. Komandjaja, The Jakarta Post, Singapore

Money can't buy everything, but it is certainly the primary need
in times of natural disaster such as tsunami or earthquakes,
according to a study jointly conducted by The Economist
Intelligence Studies with logistics company DHL.

Senior editor at The Economist Bina Jang, who headed the
research team, pointed out that cash donations were much more
important than donated goods, such as food or clothing.

"Based on the interviews I made directly with people
volunteering for the disaster, they all said that cash was much
better since it didn't clog the airport and didn't need money to
distribute it," Jang said recently.

She added that unsolicited donations, in the form of clothing,
food or medical supplies, usually created new problems such as a
lack of space and lack of money for distribution.

"They (the interviewees) told us that they had to pay money
just to get the goods (donations) out from customs as they were
not accompanied by cash to pay the delivery costs and import
taxes," Jang said.

The study was conducted in various places in Thailand and
Indonesia over the past several months. Both countries were badly
hit by the Dec. 26, 2004 tsunami.

In Aceh alone, the killer waves killed over 130,000 people.

Jang took an example that Polonia Airport in Medan was too
small to accommodate the piled up boxes of donations from around
the world.

"Even Phuket International Airport in Thailand, which is quite
big, was not prepared to take the surge of incoming physical
donations. Therefore, it is important to keep airports open and
running as efficiently as possible," she said.

However, she also fully realized the risk of donating cash as
it could be prone to corruption.

Indonesia is one of the most corrupt countries in the world,
according to the latest survey by Hong Kong-based Political and
Economic Risk Consultancy.

"The government should be able to list foundations and non
governmental organization (NGO)s that have a good reputation in
managing money donations," Jang said.

Disaster Response Network at DHL Chris Wells also said that
the government should register credible NGOs earlier since nobody
could predict when a disaster might occur.

With money, Jang explained, the volunteers or the government
could buy necessary equipment, such as food or blankets, at the
nearest stores, in order to return the money back to them and
encourage economic growth in the area.

She explained that it would be much easier to transport goods
if they were purchased locally compared to unsolicited goods,
especially as the contents sometimes did not suit the people.

"Since roads and communications lines are mostly cut in
disaster areas, going to the last mile is very important,
therefore companies with logistics expertise are a natural fit to
work with non-profit agencies in disaster response," she said.

However, she added that logistics companies should clarify at
the start the terms and conditions under which assistance would
be provided, whether it be in-kind, or at cost, and should state
that they are in a disaster area for humanitarian reasons alone.

Apart from the donations, she also pointed out that aid
agencies and other donors should seek permission from the
government to assist since without the government's cooperation
the relief operations could not function well.

"Any relief agencies or non governmental organizations or even
private companies should get in early in their preparations,
including preparing documents necessary to conduct relief
operations in disaster area," Jang said.

Jang added that it would be very important to involve local
authorities in the operations as well, since extra pairs of hands
would always be welcome.