Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction


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(Source: Government of Japan, 2012b

Government of Japan. 2012b.,White Paper on Land, Infrastructure, Transport and Tourism in Japan, FY 2011., Ministry of Land, Infrastructure, Transport and Tourism., Tokyo,Japan.. .
, 2012c)
Box 15.2 Rethinking governance structures during and after the 2011 Great East Japan Earthquake
and understand the interdependencies of the many systems that carry today’s societies (Menoni et al., 2012) and which create systemic vulnerabilities characterised by interconnectedness, lack of redundancy and transferability (Van der Veen and Logtmeijer, 2005

Van der Veen, A. and Logtmeijer, C. 2005.,Economic hotspots: visualising vulnerability to flooding., Natural Hazards (2005), 36: pp. 65-80.. .
).
For example, financial service organisations running business-critical applications need to ensure low latency for data transition, such as the submillisecond transactions required by the New York Stock Exchange. The closer the data centre is to the user, the faster data are transmitted. Thus these facilities tend to be heavily concentrated in or near urban areas. The impact of Sandy was a stark reminder that disasters can wreak havoc on these critical data centres and the companies that rely on them. In the United States of America, these facilities are all located in the same areas where over the last 50 years FEMA has declared a disaster at least once. iii Clearly, the need for backup strategies is crucial.iv 
In Japan, during and after the 2011 Great East Japan Earthquake, several policies were reviewed, which resulted in changes to the existing risk governance structure. These have since been implemented (Box 15.2).
Changes such as these are occurring in other regions, based on experience of disasters and concerns about future uncertainty. The role of the private sector, both in response and recovery as well as in prospective disaster risk management, is gaining importance.
Local governments and in particular large municipalities can find strong allies among businesses with large fixed assets, such as real estate companies, developers, investment banks, large stores and property management firms to more effectively manage disaster risks (Elkin, 1987

Elkin, S. 1987.,City and Regime in the American Republic., Chicago,USA: The University of Chicago Press.. .
; GAR 13 paperKataria and Zerjav, 2012

GAR13 Reference Kataria, S. and Zerjav, B. 2012.,Private Sector Investment Decisions in Building and Construction: Increasing, Managing and Transferring Risks: A Literature Review., Prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.
Click here to view this GAR paper.
; GAR 13 paperJohnson et al., 2012

GAR13 Reference Johnson, C., Adelekan, I., Bosher, L., Jabeen, H., Kataria, S., Wijitbusaba, A. and Zerjav, B. 2012.,Private Sector Investment Decisions in Building and Construction: Increasing, Managing and Transferring Risks., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR..
Click here to view this GAR paper.
). ‘Communities of interest’ (GAR 13 paperKataria and Zerjav, 2012

GAR13 Reference Kataria, S. and Zerjav, B. 2012.,Private Sector Investment Decisions in Building and Construction: Increasing, Managing and Transferring Risks: A Literature Review., Prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR..
Click here to view this GAR paper.
) are being formed by businesses and local governments, which can
The unprecedented scale of the disaster following the Great East Japan Earthquake of 2011 meant that not only national and local governments but also private sector and civil organizations participated in recovery. Lessons learned from this integrated approach are being fed into new policies. 1. Strengthened Regional Cooperation: The disaster overwhelmed the capacity of individual local governments, which received support from other less-affected municipalities. Partnerships between local governments from different provinces have since been formalised. 2. Role of National Government to Support Local Government: The disaster impacted directly on the functioning of local government and in many cities the subsequent lack of capacity, particularly of officials with experience in managing urban development projects, was an obstacle to recovery. In response, the national government mobilised experienced officials from all over Japan. 3. Horizontal Cooperation at National Level: The reconstruction process has also strengthened horizontal cooperation between all sectors. Established in February 2012, a Reconstruction Agency headed by the Prime Minister coordinates aligned activities as for example a joint effort of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and the Ministry of Education to develop schools as community centres and shelters for times of crisis. 4. Public-Private Partnerships (PPPs): Even the capital region of Tokyo faced challenges from the disaster. The government has amended legislation to allow Urban Renaissance Councils, consisting of national and local governments, real estate developers, railway companies and property owners, to develop plans for urban safety. 5. Public Involvement: The national government is also promoting transmission of disaster history and its lessons to future generations to decrease vulnerability; for example, through constructing archives in the National Diet Library.
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