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.