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UNDP model could help China

Updated: 2008-06-10 08:08

Khalid Malik, UN Resident Coordinator on China's reconstruction of the quake-hit areas in Southwest China's Sichuan province, shares his views with our reporter Wang Zhuoqiong:

1. How much does the Wenchuan earthquake affect Chinese economy? Does the country need to adjust its macro-control polices so as to fight against the rising inflation pressure as well as overcome the difficulties the quake may bring to China's economy?

While the full extent of the damage inflicted by the Sichuan earthquake is still being assessed, many experts in China and abroad expect its impact on the Chinese economy will be limited due to the large size of the Chinese economy.

Similarly, there is a global inflationary problem at this time due to rising prices of key commodities, and while China is also being affected, and has to find appropriate measures to contain price increases to protect the livelihoods of its lower income groups, the additional impact of the earthquake on price trends is not large.

After three decades of very rapid economic growth, China is in a position where the economic dimension of this tragedy need not be a source of large concern, and it is possible to focus concern instead on relieving human suffering and social consequences.

2. What's UNDP's suggestion on reconstruction of the Sichuan province? What changes should the country make in its macro-control policies, like fiscal policies and monetary policies, to work with the reconstruction planning, so as to rebuild the quake-hit region as early and as quickly?

Despite the massive destruction, the overall impact of the quake on China's economy is expected to be limited. It suggests that no dramatic adjustment to economic policies will have to be made. Budgetary resources are sufficient to handle the cost of dealing with the emergency.

Local tax-incentives, for example, the creation a special tax zone that would help restart local business activities in the most affected areas, could be considered.

The central government might also have to revise its budgetary priorities this year as it has already announced an allocation of RMB 70 billion ($10.14 billion) this year for a reconstruction fund for the affected regions.

3. Some experts suggest the Chinese government float special national treasure bonds to collect money for the construction. What's UNDP's idea on the suggestion? Is there any other country that once issued such bonds to finance a reconstruction mission after serious disasters?

China has a very large array of options available for financing the relief and recovery efforts in Sichuan. Floating special bonds is one option, if the government wishes to borrow some funds at low interest rates for this purpose. But given the country's strong fiscal situation such a step is probably not needed.

4. Are there similar reconstruction experiences in another country that could be helpful for China? Could the UNDP's experts tell their stories about some reconstruction experiences in other disaster-hit countries?

Let me refer to the earthquake that struck Northern Pakistan in October 2005. In that case, an early recovery plan was developed to cover activities for a 12-month period and bridge the transition period from relief to reconstruction.

Coordination by clusters has been an effective tool in the relief effort and a targeted approach also benefited the recovery and reconstruction phase.

The Pakistan Earthquake Early Recovery Plan, prepared in partnership with and support from the United Nations, encompassed concrete steps that draw on the strength and resilience of local communities and focus on seven priorities which include education, health, livelihoods, water and sanitation, housing, support to the needs of vulnerable groups.

The spirit of UNDP's tsunami recovery slogan "Build Back Better", could also be applied to the Sichuan rebuilding efforts.

The meaning of the "Build Back Better" spirit is to design and implement a visionary plan for sustainable development beyond the immediate recovery needs.

This was also applied in Pakistan where it was recognized that the difficulties of the recovery and reconstruction phase can be turned into opportunities for accelerating development in the affected areas, in part by broadening and deepening pre-earthquake development programs.

5. We know that the restoration and reconstruction work of the quake area will be a long process. What are the UNDP's suggestions for such work in the middle and the long terms? And what's the UNDP's assessment of the current work the Chinese government has done so far in the quake area?

The leadership of the Chinese government in responding to this tragedy should be applauded and commended. On May 24, during his visit to Yingxiu township with Premier Wen Jiabao, United Nations Secretary-general Ban Ki-Moon said he was "moved by such strong leadership [as] demonstrated by the Chinese government leaders, President Hu Jintao and Premier Wen Jiabao, and all the people who have shown such a great spirit of self-help and cooperation and resilience to overcome this natural disaster".

He reiterated that the United Nations stands ready to provide further support, as required, to the government of China in its efforts to respond to the humanitarian needs caused by the disaster.

The United Nations support to the Chinese government is coordinated by the UN Resident Coordinator in China and the United Nations Disaster Management Team.

We have come to an end of the first phase of immediate relief. However, with an estimated over 45 million people affected by the deadly quake, the tasks of rehabilitation and reconstruction are now clearly pressing.

In addition to meeting the key needs of shelter, drinking water, nutritious food, sanitation and basic medical services, in the mid-term it is also essential that we make progress in addressing additional needs.

These include providing psychosocial support and counseling to those affected by the earthquake, fully assessing the environmental impact and helping to rebuild the government's environmental monitoring and risk response capacities, assessing the resilience of dams which may have been damaged and looking toward longer-term settlement plans with an emphasis on helping children return to school and adults re-engaged in work.

The secretary-general has also underscored the importance of a two-track approach in the disaster response that addresses both shorter-term relief and longer-term rehabilitation and reconstruction.

(China Daily 06/10/2008 page9)