Module 2 Introduction To DaLA VF

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Module 2:

Introduction to Damage
and Loss Assessment
ASEAN Training of Trainers (TOT) on
Damage and Loss Assessment (DaLA)
Module 2: Introduction to Damage and Loss Assessment

MODULE 2: OVERVIEW

• Duration: 2 Hours
• Topics:
• Understanding Post-Disaster Damage and Loss
Assessments (DaLA)
• Key Steps in the Assessment Process
Module 2: Introduction to Damage and Loss Assessment

MODULE 2: OVERVIEW

• Learning Outcomes:
• Participants will become familiar with key concepts and terminology
associated with the Damage and Loss Assessment (DaLA)
methodology.
• Participants will achieve a working knowledge of the steps involved in
completing an assessment.
Understanding
Post-Disaster DaLA
Module 2: Introduction to Damage
and Loss Assessment
Module 2: Introduction to Damage and Loss Assessment

INTRODUCTION TO DaLA

• Methodology to assess post-disaster damage and losses –


developed by the Economic Commission for Latin America and the
Caribbean (ECLAC) in 1972
• Steady advancement – most recent ECLAC guidance document:
Handbook for Disaster Assessment (2014)
• Adapted for use in other countries and adopted by the World Bank
• DaLA Guidance Notes, Volumes 1-3
Module 2: Introduction to Damage and Loss Assessment

INTRODUCTION TO DaLA

• May be implemented independently or as part of a Post-


Disaster Needs Assessment (PDNA):
• Includes a Damage and Loss Assessment (DaLA), and
• Human Recovery and Needs Assessment (HRNA)
• Identification of social impacts and societal recovery needs
Module 2: Introduction to Damage and Loss Assessment

PDNA Process
Module 2: Introduction to Damage and Loss Assessment

DaLA Process
Module 2: Introduction to Damage and Loss Assessment

INTRODUCTION TO DaLA

• DaLA measures the impacts of a natural disaster on:


• Physical assets (damage)
• Economic flows (losses)
Module 2: Introduction to Damage and Loss Assessment

DALA FRAMEWORK

• Damage:
• Total or partial destruction of physical assets existing in the affected
area
• Occurs during and immediately after the disaster
• Measured in physical units (e.g., square meters; kilometers of roads)
• Expressed in terms of reconstruction or replacement costs according to
prices prevailing just before the event
Module 2: Introduction to Damage and Loss Assessment

DALA FRAMEWORK

• Losses:
• The changes in economic flows arising from the disaster
• Occur until full economic recovery and reconstruction is
achieved (sometimes lasting for several years)
• Expressed in current monetary values
Module 2: Introduction to Damage and Loss Assessment

DALA FRAMEWORK

• Examples of Losses:
• Decline in output in productive sectors (e.g., agriculture,
manufacturing)
• Lower revenues and higher operational costs in the provision of
services (e.g. education, health, electricity)
• Unexpected expenditures necessary to meet humanitarian needs
during the post-disaster emergency phase
Module 2: Introduction to Damage and Loss Assessment

DALA FRAMEWORK

• Value of damage:
• Used as the basis for estimating reconstruction needs
• Value and type of losses:
• Provide the means for estimating the overall socio-economic
impact of the disaster and the needs for economic recovery
Module 2: Introduction to Damage and Loss Assessment

DALA FRAMEWORK

• The socio-economic impact analysis estimates:


• The disaster’s effects on economic performance
• Temporary macro-economic imbalances that may arise
• Temporary decline in employment, income and well-being of the
individuals and households affected by the disaster
Module 2: Introduction to Damage and Loss Assessment

Damage and Losses due the Aceh Earthquake and Tsunami, 2004
Module 2: Introduction to Damage and Loss Assessment

2006 YOGYAKARTA AND CENTRAL JAVA


EARTHQUAKE

• Distribution of Damage
and Losses among
Sectors
Module 2: Introduction to Damage and Loss Assessment

SCOPE OF THE ASSESSMENT

• DaLA is conducted for the entire area affected by the


disaster, and is broken down by:
• Geo-political divisions
• All sectors of economic activity that may have sustained
disasters effects
Module 2: Introduction to Damage and Loss Assessment

SCOPE OF THE ASSESSMENT

• Sectors typically assessed:


• Social Sectors
• Culture, Education, Health, Housing
• Infrastructure Sectors
• Telecommunications, Power and Energy, Transportation, Water and Sanitation
• Productive/Economic Sectors
• Agricultural, Livestock, Fisheries, Commerce, Industry or Manufacturing, Tourism
Module 2: Introduction to Damage and Loss Assessment
Housing
Infrastructure
Transport and Communications
Energy
Water and Sanitation
Social Sectors
Education
Health and Social Protection
Culture and Religion
Productive Sectors
Agriculture
Trade
Industry
Tourism
Cross-Sectoral
Government
Banking and Finance
Environment

Sectors Assessed, Yogyakarta Earthquake, 2006


Module 2: Introduction to Damage and Loss Assessment

ASSESSMENT TIMELINE

• For a safe and efficient assessment:


• Emergency relief activities and search and rescue operations should be
completed or nearly completed
• The natural phenomenon that caused the disaster must be over, such that
the effects of the disaster are visible (e.g., flood waters receded), and
there is adequate road access to affected areas
• Local government staff and sector specialists are available to participate
in the assessment
Module 2: Introduction to Damage and Loss Assessment

ASSESSMENT TIMELINE

• Typically begins 1-2 weeks after a disaster has occurred


• Time prior to the assessment can be used to:
• Gather baseline information
• Provide training to those participating in the assessment
• Can take 2-8 weeks to complete, depending on
• Complexity of the disaster, size of affected area and available
expertise
Module 2: Introduction to Damage and Loss Assessment

Typical DaLA Assessment Timeline and Associated Activities


Module 2: Introduction to Damage and Loss Assessment

Group Activity
Module 2: Introduction to Damage and Loss Assessment
What are the Implications for Recovery?
Damage and Losses
4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0
Housing Transportation Manufacturing Education Health Power and Water and Agriculture - Fisheries Tourism
Energy Sanitation Crops

Damage (USD million) Losses (USD million)


Key Steps in the
Assessment Process
Module 2: Introduction to Damage
and Loss Assessment
Module 2: Introduction to Damage and Loss Assessment

KEY STEPS IN THE ASSESSMENT PROCESS

1) Develop a Baseline for the Assessment


2) Determine the Post-Disaster Situation
3) Assess Post-Disaster Sector Performance
4) Estimate Total Value of Damage and Losses
5) Estimate Macro-Economic Impact of Damage and Losses
6) Estimate Impact on Personal/Family Income
Module 2: Introduction to Damage and Loss Assessment

STEP 1: DEVELOP A BASELINE FOR THE ASSESSMENT

• Provides a picture of the prevailing conditions prior to the


disaster
• Foundation for the estimation of damage and losses
• Critically important to be able to discern:
• Level of damage to physical assets resulting from the disaster
• How the provision of basic services have been affected
• The changes in production and sales
Module 2: Introduction to Damage and Loss Assessment

STEP 1: DEVELOP A BASELINE FOR THE ASSESSMENT

• Baseline of Physical Assets refers to:


• Existing facilities in the affected area (before the disaster occurred)
• Nearby facilities that may provide services to the affected area on a
temporary basis
• Examples of baseline data:
• Number and type of health facilities
• Length and type of roads
• Number and type of housing units
Module 2: Introduction to Damage and Loss Assessment

STEP 1: DEVELOP A BASELINE FOR THE ASSESSMENT

• Baseline data is also essential for determining losses


• Refers to the performance of all economic activities in the
affected area:
• As projected for the current and subsequent 2 years
• Measured as the volume and value of production sales of goods
and services, etc.
Module 2: Introduction to Damage and Loss Assessment

STEP 1: DEVELOP A BASELINE FOR THE ASSESSMENT

• Examples of Baseline Data describing losses:


• Calendar of agriculture production activities (annual crops and plantations)
• Statistical information on volume of production, yields, prices
• Production and sales forecasts for ongoing and subsequent years in each
sector
• Volume and value (rates) of essential services (electricity, water and
sanitation, transportation and communications)
Module 2: Introduction to Damage and Loss Assessment

STEP 2: DETERMINE THE POST-DISASTER SITUATION

• Describes the post-disaster scenario


• Field survey, analysis of satellite imagery, and inputs from local
sector specialists are used to:
• Assess the level of damage (total or partial) to physical assets in each
sector
• Determine how each sector will perform on a temporary basis after
the disaster (until recovery and reconstruction are achieved)
Module 2: Introduction to Damage and Loss Assessment

STEP 2: DETERMINE THE POST-DISASTER SITUATION

• This step results in:


• Preliminary calendar or schedule for the reconstruction of
physical assets
• Corresponding post-disaster, preliminary performance forecast
of socio-economic activities in each affected sector
Module 2: Introduction to Damage and Loss Assessment

STEP 2: DETERMINE THE POST-DISASTER SITUATION

• To develop the preliminary calendar for reconstruction, the


following information is collected:
• A typology of physical assets (by size, capacity, construction
materials, etc.)
• Unit repair costs and reconstruction estimates for those assets, not
affected by scarcity or speculation
• A preliminary calendar of repair and replacement of physical assets
Module 2: Introduction to Damage and Loss Assessment

Month

Example - Water Supply based on Damages to Water Supply Plant


Module 2: Introduction to Damage and Loss Assessment

Example - Water Demand Based on Damage to Housing Sector


Module 2: Introduction to Damage and Loss Assessment

Example - Water Shortage in the Affected Area


Module 2: Introduction to Damage and Loss Assessment

STEP 3: ASSESS POST-DISASTER SECTOR PERFORMANCE

• This step of the assessment process:


• Examines the disaster impacts to each sector
• Comparison of sector performance indicators from before and after the
disaster
• Discussed in greater detail in Module 5: Conducting Sectoral
Assessments
Module 2: Introduction to Damage and Loss Assessment

STEP 3: ASSESS POST-DISASTER SECTOR PERFORMANCE

• Assessment Team should include:


• Expertise in each sector (e.g. engineers, sociologists, economists, etc.)
• Members who are well-acquainted with the assessment methodology and
with the affected area’s socio-economic conditions
• Government officials representing the line ministries covering all sectors of
economic activity
Module 2: Introduction to Damage and Loss Assessment

STEP 4: ESTIMATE TOTAL VALUE OF DAMAGE AND LOSSES

• Aggregates the total value of damages and losses for each sector
and sub-sector
• All sectors must be included to determine the overall disaster
effects
• Important to consider linkages between sectors
• Identify issues of double-counting or omission
Module 2: Introduction to Damage and Loss Assessment

STEP 4: ESTIMATE TOTAL VALUE OF DAMAGE AND LOSSES

• Total value of damage and losses obtained in this step is used in


subsequent analyses
• Macro-economic impact of damage and losses
• Impact on personal/family income
• Helps define economic recovery and reconstruction needs
Module 2: Introduction to Damage and Loss Assessment

STEP 5: ESTIMATE MACRO-ECONOMIC IMPACT


OF DAMAGE AND LOSSES

• Calculates the disaster impact on:


• Gross domestic product (GDP)
• Balance of trade and payments (BOP)
• Fiscal budget
• Other macro-economic aggregates

• Baseline information regarding the most recent estimates or


projections of macro-economic variables is required
• e.g., GDP, BOP, and fiscal budget for current and forthcoming years for non/pre-disaster
conditions
Module 2: Introduction to Damage and Loss Assessment

STEP 5: ESTIMATE MACRO-ECONOMIC IMPACT


OF DAMAGE AND LOSSES

• Impact on GDP examines:


• Temporary negative repercussion of disaster losses on economic performance
• Any positive effects on the various sectors that may have resulted due to recovery and
reconstruction process (i.e., improvements to infrastructure)
• Data for GDP should include a breakdown by sectors
Module 2: Introduction to Damage and Loss Assessment

STEP 5: ESTIMATE MACRO-ECONOMIC IMPACT


OF DAMAGE AND LOSSES

• Impact on BOP involves estimating:


• Increase in imports and decline of exports arising from the disaster
• Possible reinsurance payments from abroad and relief donations from the international
community

• Disaster impacts on the public sector budget are estimated in terms of:
• Increased operational costs
• Lower revenues
Module 2: Introduction to Damage and Loss Assessment

STEP 5: ESTIMATE MACRO-ECONOMIC IMPACT


OF DAMAGE AND LOSSES

• Data for GDP and fiscal budget should be obtained in current


values of local currency
• Data for BOP should be expressed in current U.S. dollars
Module 2: Introduction to Damage and Loss Assessment

STEP 6: ESTIMATE IMPACT ON PERSONAL/FAMILY INCOME

• Examines the relationship between production and the labor force


• Includes an estimation of the decline in employment income due to losses
sustained in the productive and services sector
• Includes an estimation of employment opportunities brought about as a result
of the emergency itself (e.g., reconstruction activities)
• Loss of personal income can be estimated in relation to normal monthly
income
Module 2: Introduction to Damage and Loss Assessment

Case Studies:
Exploring Post-Disaster
Assessments
Module 2: Introduction to Damage and Loss Assessment

EXPLORING POST-DISASTER ASSESSMENTS

• Working as a Team, review the case studies and answer the following
questions on the flipcharts provided:
• What methodologies were used to conduct the assessments?
• What sectors were assessed?
• Which sectors had the greatest damage and the greatest losses?
• What similarities between assessments did you observe?
• How were they different? (Be specific)
• You have 30 minutes

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