Hari Srinivas
	Policy Analysis Series E-019. March 2015.

Disasters also disrupt business activities on which the local population depends, affecting livelihood recovery and means to earn a living. This is particularly true when new skills are needed for new types of jobs.

Disasters and the Informal Sector An additional dimention to be considered for the risk reduction needs of very low-income households is the role of the informal economic sector. In developing countries, 40 to 90 percent of all economic activities happen informally; 30 to 70 percent live in informal settlements, and more than 40-60 percent of economic investments takes place using informal credit/finance. At stake in the immediate aftermath of a disaster are informal sector jobs, informal enterprises, houses built in slums and squatter lands, etc. These issues become further complicated due to concerns of governance, legality and tenure of these informal sector activities

Part of the problem is in adequate attention to disaster risk prevention and management as an economic and business issue. If the frequency and impact of natural and industrial disasters continue to rise, economic and human development will be badly affected. Disaster management should therefore be seen also as a strategy to protect the growth potential of countries, and communities.

A much closer interaction between business and government is needed to ensure appropriate risk reduction strategies, adequate measures for implementation of protection and security measures, and a liability and insurance regime that takes proper account of the needs of the community and business sector alike.

Private sector entities also have a large untapped potential to help provide skilled services in form of technical manpower or in-kind donations of goods or services for preparedness & emergency response phase of disaster management.

Where does the role of the private sector lie in disaster management? In is obvious that this is a multi-faceted and multi-disciplinary one, including those listed nelow and more:

• In defining, assigning and implementing clear and coherent institutional roles? In training, equipping and achieving proficiency for effective response capacity for high risk communities
• In assessing institutional needs, developing and implementing programmes to assist key organizations with sustainability issues and measures
• In improving disaster consciousness of the general population
• In improving access to accurate information and basic communication, energy and water systems for high-risk communities by facilitating appropriate technology alternatives on credit to qualifying communities.

At the same time, local authorities need to provide a more effective framework for unleashing the full potential of private sector contribution. This framework can include policies that contribute directly to safer industrial operation, and incentives for business to become more involved in disaster management programmes. Mechanisms wherby businesses and the authorities meet to discuss their respective roles and contributions to national disaster security need to be set up and operationalized on a regular basis.

In a session organized as a part of the World Conference on Disaster Reduction (WCDR, January 2005, Kobe, Japan), a number of interesting viewpoints were put forth:

1. It apparent that the private sector plays both vital and varied roles in emergency management. In fact, it is not an exaggeration to state that the contributions of businesses in mitigation, preparedness, response, and recovery activities have been woefully underestimated.

2. The private sector interacts frequently with the public sector to fulfill necessary community disaster functions. Therefore, the lines between the public and private sectors appear to be disappearing, blurring, or even artificial.

3. The public sector relies heavily upon the goods and services provided by the private sector. Many functions, such as public information, debris removal, and emergency medical care, could not be adequately performed without the assistance of the private sector.

4. Numerous factors facilitate coordination among the private and public sectors. Planning meetings, communications capability, and cooperation were mentioned as variables that promoted close collaboration.

5. Much more needs to be known about the roles of businesses in disasters. For example, are there functions performed by the private sector beyond those mentioned here.

6. Additional research on coordination will be required, focussing on the interaction of the public and private sectors in emergency management.

7. Methods of educating and involving businesses in emergency management must be promoted. Public officials and agencies should include, where possible, the private sector in all types of disaster prevention and planning activities.

8. Practitioners must continue to emphasize networking and partnering. The performance of emergency management is increasingly a result of successful collaboration among government agencies and the private sector.

9. The factors that hinder and help coordination must be explored by academia. Practitioners should familiarize themselves with the lessons provided by scholars in order to augment future emergency management capabilities.

The private sector in Japan has shown particular initiative in highlighting preparedness and risk reduction in their business operations. The above discussion is iinspired by the following examples:

1. Business Continuity Planning (BCP) and Corporate Preparedness
   (Ensuring supply chain resilience and operational continuity during disasters.)

   7-Eleven Japan: The company leveraged its extensive logistics network during the 2011 Great East Japan Earthquake to continue supplying essential goods, even when government supply chains were disrupted. Its decentralized distribution centers and backup power systems ensured uninterrupted operations.

   Toyota's Resilient Supply Chain: Toyota's "Global Risk Management" strategy includes diversification of suppliers and stockpiling of critical parts. After the 2011 earthquake, it adjusted its production model to avoid over-reliance on single-source suppliers, ensuring a faster recovery.

   Mizuho Bank's Disaster Response Framework: Mizuho Bank has an advanced disaster preparedness plan that ensures financial services remain operational during crises. It deploys mobile banking units and ATM trucks to provide cash access in disaster-stricken areas.

   2. Public-Private Collaboration for Disaster Relief
   (Working with governments and NGOs to enhance disaster response efforts.)

   NTT's Emergency Communication Networks: NTT Group provides disaster-resilient communication infrastructure, including emergency messaging systems and free Wi-Fi hotspots in evacuation zones to help affected people stay connected.

   ANA & JAL's Emergency Transport Assistance: Japan's major airlines, ANA and JAL, partner with the government and humanitarian agencies to transport emergency supplies and relief workers to disaster-hit areas free of charge.

   Aeon's Evacuation Shelter Support: The Aeon retail group collaborates with local governments by converting its shopping malls into temporary shelters and distributing emergency food and water during disasters.

2. Technological Innovations for Disaster Management
   (Using cutting-edge technology to improve disaster response and risk mitigation.)

   Fujitsu's AI-Powered Disaster Prediction: Fujitsu has developed an AI-based early warning system that analyzes weather data and predicts floods and landslides, helping local governments issue timely evacuation orders.

   SoftBank's Disaster Drones and Robotics: SoftBank uses drones and robot technology to survey disaster zones and assess damage more efficiently. After the 2016 Kumamoto Earthquake, its drones were deployed to provide aerial assessments.

   Hitachi's Smart Infrastructure Systems: Hitachi develops earthquake-resistant building materials and smart energy grids that ensure stable power supply even after major disasters, helping cities recover faster.

3. Infrastructure and Logistics Contributions
   (Ensuring the transport and distribution of critical goods and services during disasters.)

   Yamato Transport's Emergency Parcel Delivery: Yamato Transport (Takkyubin) provided free delivery services for aid supplies to evacuation centers after the 2011 earthquake, ensuring efficient logistics for food, water, and medical supplies.

   Japan Railways (JR East) Disaster-Resilient Rail System: JR East has an advanced earthquake detection system that automatically stops trains before tremors hit. This system prevented major accidents during the 2011 earthquake.

   Tokyo Gas Emergency Recovery System: Tokyo Gas has developed an advanced seismic monitoring network that automatically shuts off gas supply during strong earthquakes, preventing fire hazards in urban areas.

4. Insurance and Financial Preparedness (Helping individuals and businesses recover financially after disasters.)

   Tokio Marine's Disaster Insurance Policies: Tokio Marine provides comprehensive earthquake and flood insurance, offering swift payouts to businesses and homeowners affected by natural disasters.

   Japan Finance Corporation's Post-Disaster Loans: The government-affiliated JFC offers low-interest emergency loans to small businesses and individuals affected by disasters, ensuring economic recovery.

   Mitsubishi UFJ Financial Group's Business Resilience Loans: MUFG Bank provides special financing options for businesses to rebuild after disasters, including deferred loan payments and interest-free emergency credit lines.

Preparedness is key

Japan's private sector plays an indispensable role in strengthening disaster management through proactive planning, technological innovation, and strategic collaboration with the government and civil society. By integrating business continuity planning, companies ensure resilience in their supply chains and operations, while public-private partnerships enhance the speed and effectiveness of disaster relief efforts.

Technological advancements, such as AI-powered early warning systems and disaster-resistant infrastructure, further contribute to reducing disaster risks and improving response times. Additionally, private sector contributions in logistics, financial preparedness, and emergency support services help communities recover more swiftly and effectively.

The success of these initiatives highlights the importance of a multi-stakeholder approach to disaster management, where businesses, governments, and local communities work together to build a more resilient society. As climate change increases the frequency and severity of natural disasters,

Japan's model of private sector engagement offers valuable lessons for other nations seeking to enhance their disaster preparedness. By continuing to invest in innovation, strategic partnerships, and risk management, the private sector can play a pivotal role in shaping a safer and more sustainable future.

Appendix: The Four Corners of the Private Sector's Role in DRR Resource mobilization: The private sector can contribute financial resources, essential goods, and services to support disaster response efforts. For example, businesses can donate money, equipment, or supplies to help relief agencies provide food, water, shelter, and medical care to affected communities. Infrastructure and logistics: Private companies can provide logistical support to disaster response efforts. For example, transportation and logistics companies can help move essential goods and supplies to affected areas, while telecommunications companies can provide communications infrastructure to help emergency responders coordinate their efforts. Expertise and technology: Private sector companies can also offer their expertise and technology to help with disaster management. For example, technology companies can develop tools and software to help emergency responders quickly identify affected areas and provide real-time updates on the situation on the ground. Preparedness planning: Private sector companies can help communities prepare for disasters by developing and implementing preparedness plans. This can involve risk assessments, identifying critical infrastructure and resources, and developing evacuation plans. By working in partnership with public agencies, NGOs, and other stakeholders, the private sector has a significant role to play in helping mitigate the impacts of disasters and support recovery efforts.