IFIs role in Tsunami Rehabilitation

1
IFIs role in Tsunami Rehabilitation

• presentation by
• S.M.Prithiviraj
• Voices from the margins (VFM)
• Tamilnadu, India.
• E-mail prithvi14_at_yahoo.com voicesfromthemargins
  _at_gmail.com

2
Estimated Funds for rehabilitation

• World Bank estimated that US 1.213 billion is
  required for tsunami rehabilitation April 2005
• State wise assessments
• Tamilnadu- US 868.3 million
• Kerala-US 157.7 million
• Pondicherry- US 114.4 million
• Andhra Pradesh-US 72.6 million

3
Funds allotted by IFIs

• Asian Development Bank sanctioned US 143.75
  million under Tsunami Emergency Assistance
  Programme (TEAP) this is inclusive of US 93.85
  million for reconstruction and US 49.9 million
  for livelihood restoration
• ADB funds gave more priority to reconstruction
• World Bank sanctioned a loan amount of US 456
  million
• Infrastructural development in coastal districts
  is the priority of World Bank

4
IFI funds and tsunami rehabilitation 2005 to
2008

• 16,000 tsunami affected families are homeless and
  another group of 18,000 families living in
  damaged houses are waiting for the construction
  of houses after 4 years
• 50,000 families are yet to recover completely
  from the loss of livelihood
• BUT
• More than 1,000 kms of big coastal roads are laid
  
• Several government buildings are constructed by
  diverting the funds

5
Wrong Priorities in rehabilitation

• While thousands of tsunami victims are homeless
  and struggle for livelihood
• World Bank and Asian Development Bank have a
  priority only on developing infrastructural
  facilities
• As a result.
• People have roads but no homes, no improvement in
  livelihood and social security.

6
Why roads

• Most of the coastal roads are laid with the
  purpose of linking new and old special economic
  zones located in the coastal areas.
• Roads are laid for transportation of goods,
  linking commercial ports, special economic zones
  and big polluting industries.
• Roads are laid with a perspective of linking
  tourist resorts, entertainment parks and beaches
  for foreign tourists.

7
Tsunami is an opportunity for ADB and World Bank

• WB and ADB pressurized Government of Tamilnadu
  and Pondicherry to privatize ports with 100 years
  leasing and collection of levies for using the
  port.
• Construction of new commercial ports in the
  Tamilnadu coast because it is maritime wise
  strategically located in between East Asia and
  the West Asia.
• More number of Container handling ports for
  special economic zones of Tamilnadu coast are
  under planning
• Most of the investors of special economic zones
  are from the countries like South Korea, Taiwan,
  China and Japan. Interestingly Asian Development
  Bank officials are reportedly lobbying for
  corporate sector of these far east countries with
  the State Government officials.
• 40 new ports are in the pipeline and some ports
  are already under construction in Ennore, New
  Tuticorin port, Cuddalore and Karaikal.
• Privatization of ports are made as a result of
  pressures from IFIs

8
Impact of Infrastructural investments

• More commercial ports means more interference in
• sea causing destruction of nets of the fishers,
• disturbing the livelihood of fishers,
• ecological damage to coral reefs,
• environmental pollution,
• forcibly capturing the traditional lands of
  coastal fishing communities,
• destruction of coastal forests and grooves,
• mining of natural sand dunes,
• Creating new sea erosions in the coastal villages
  near the ports,
• and triggering displacement of indigenous fishing
  communities from the coast to inland.

9
Attempt to legalize coastal invasion

• World Bank and Asian Development Bank officials
  are behind the Government of Indias notification
  on coastal management zone 2008.
• This notification violates Coastal Regulation
  Zone Notification of 1991 which protects coastal
  environment, resources and land rights of
  indigenous fishing and other coastal communities.
  
• The proposed new notification provides scope for
  exploitation of coastal land and sea resources by
  private corporate entities.

10
What we demand

• Convert all loans sanctioned under tsunami
  rehabilitation into interest free grants
• Allocate funds for livelihood restoration and
  social security components for the welfare of
  coastal communities\
• Stop promoting commercial ports and special
  economic zones
• Minimize the socio-economic and environmental
  negative impacts of Funds of IFIs