Discussion 2: Codes,Planning and Voluntary Incentives
  • 1. What are the opportunities for more effective legislation and regulation by national and local governments to promote a level playing field for risk-conscious businesses? E.g. the development of building codes for building disaster-resilient infrastructure, or penalties for real estate development in high-risk zones.  

    2. Are codes adequate to address current and future hazards?

    3. Are codes set nationally or fragmented by state/region/city?

    4. Are codes changing fast enough or are we falling further behind?

    5. Are codes enforced adequately?

    6. Are code exceptions granted too frequently?

    7. Who are opposed to strengthening codes and why?

    8. Is the code process too political (e.g. subject to interest group pressures) without enough emphasis on science and facts?

    9. What needs to change?

    10. Is economic availability of lower risk land an issue?

    11. How critical is urban planning to managing risks?

    12. Which public policies and private programs would most (and least) motivate your business to make more resilient investment decisions above applicable codes:
       a. Tax Incentives
       b. Permit Incentives
       c. Insurance Incentives (e.g. lower premiums in case of effective risk management)
       d. Finance Incentives
       e. More favorable accounting/reporting treatment
       f. Other

    13. Do any of the above examples exist in locations where you operate and have they affected your decisions (or could have affected your decisions if they existed)?

    14. If you were told that by spending more to make an investment more resilient, you could get a 5 year payback on the extra cost, would your business approve?  What would be your decision criterion?
  • 1. We consider it is important to prepare regulations, but it should not interfere with the activities of private companies. So, national and regional governments should serve basic legislation and regulation for disaster reduction. In the meantime, we realized that cooperation of various sectors is needed and effective through our activities in the disaster affected area from the 2011 Great East Japan Earthquake (GEJE). And also, the usual cooperation which is beneficial for all concerned in ordinary operations and economic activities seems to be effective in both ordinary and emergency situation. For example, we can consider how private and government sector should cooperate at emergency situation. We believe that creating such practical cooperation is more important and effective than setting codes and regulations more strictly.

    Currently, we lead making the “Tohoku Alliance”, a platform consisted of stakeholders from private, government and academic sectors for region-wide cooperation for disaster risk reduction and recovery. This is a challenge for integration, utilization and share of good practices and lessons from the GEJE by constructing a system for them.

    GEJE caused the unprecedented damage and affected in Tohoku region of Japan. While at the same time, the disaster brought a great deal of information and data.
    In each affected area, there are good practices and lessons from private and public sectors. In addition, multi-stakeholders have used their existing strength and contributed to reconstruction in the affected areas from their respective positions.

    The information and data about GEJE have been collected and analyzed by academic and research institutions, nongovernmental organizations, government agencies, and private sector organizations. However, we could not have considered how to put them into practical use. In other words, we could have stocked such information and data, but it is not clarified to utilize for next disaster.

    To utilize a lot of important experiences and practices, we consider that we need to make a system. We define the system as a leading role to integrate, utilize and share good practices and lessons. We would like to make the system and framework, for example the standardization of works during reconstruction, and also to be able to use the system “Tohoku model” all over the world. After making the system and framework, we are considering about modification to apply for private and public sector in developing countries.

    In discussion at this platform, we uses the latest findings based on the experiences and lessons learned from the recently unprecedented disaster in 2011,GEJE. So we can make and provide up-to-date standard in the project. And also, there is possibility of occurring mega earthquakes and tsunamis somewhere around the world, and if the disaster occurs, it could cause widespread damages.
    The platform is set in Tohoku region, but it needs support and cooperation by the national government.

    We have a slight concern about enforcement, but if stakeholders recognize the Tohoku model as useful and user-friendly one, it becomes widely used among many countries and regions apprehending the difficulties from disaster.

    2. Speaking as a financial agency, finance incentives such as loans and subsidies and so on, were effective. For instance, at Fukushima, many companies return to reinforce its facilities. Not only the subsidy programs for equipment investment of private sector companies in the affected areas, but also financial support measures made possible under the Act on Special Reconstruction Zones, which allows for subsidies on loan interest, have been definitely effective.

    In addition, there are new financial programs in private sector, which adopt the way of traditional credit ratings that are indicators of the company’s credit worthiness, but also ratings based on valuation for disaster risk reduction (DRR) and prevention, tying in financial incentives, such as our Enterprise Resilience Rated Loan Program.
    The rating is designed as an objective third-party evaluation, giving recognition to the recipient company’s efforts in DRR/Business Continuity Management (BCM) to external stakeholders, and as a method to initiate dialogue on the necessity for BCM and DRR measures to the company’s internal audience.
  • You say "it is important to prepare regulations, but it should not interfere with the activities of private companies." I agree in allowing private companies to operate fully without undue restrictions and regulations. However, when it comes to disaster resilience it is important to all people for survival of businesses, saving property and saving lives. So shouldn't there be a high resilient bar all entities must clear when building public and private structures? Doesn't this make the playing field level?

    You also say "national and regional governments should serve basic legislation and regulation for disaster reduction..." Given the increasingly severity of natural disasters, shouldn't we go beyond "basic" legislation and regulation?

    You also say "in the meantime, we realized that cooperation of various sectors is needed and effective through our activities in the disaster affected area..." I belive this is incredibly important and a great example of what can and should be done to come together to solve problems.



    Thanks for your comments!

    Tim Kuebler
    Moterator
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