Combating flood: Let's take a business approach
Right now we are engulfed by flood. It is a perennial problem in Bangladesh. The low-lying Ganges delta gets inundated very quickly after heavy rain. This is the reality. Experts have many short and long term measures to address the issue. Let me look into floods and natural disasters from a business perspective, and offer some suggestions.
Technically, flood affected people are "markets" that deserve special attention. Like other people, they need essential items like food, fuel, clothing, medicine and daily necessities. During heavy flooding the typical market mechanism breaks down, prices rise (primarily because of scarcity) and the logistics and supply chain poses a serious challenge to all. At this time, what we need is to find ways and means to keep the market mechanism and supply chain operational. Most principles of business can be applied to address the challenge and alleviate the sufferings of the people. Principles of non-profit and social marketing programmes can also be useful.
With forty percent of the land mass under water, the task of keeping the market mechanism operational is a massive challenge. The government alone cannot do the job. Cooperation of the NGOs, community-based organizations, business, media, armed forces and private citizens is a must. Before going for a discussion on the issue, let me give the example of the Netherlands, a country that lies below sea level and also faces flood/water problems like us.
The Netherlands (often called Holland) is a 150-mile long and 100-mile wide country of 16.5 million people. About half of the country is below sea level. A good portion of the country is land reclaimed (polders as they call it) from the sea. It has suffered from floods throughout its history. Recently (2002), they completed the Delta Project (started in 1953) as a long term measure against floods.
The project built 3,000 kilometers of outer sea-dikes and 10,000 kilometers of inner, canal, and river dikes to "delta" height, and closed the sea estuaries of the Zeeland province. This massive work is one of the largest construction efforts in human history. It is no wonder that they now say "God created the world, but the Dutch created the Netherlands."
I understand that Bangladesh does not have the resources to undertake such a massive project. Also, for such an undertaking we need the cooperation of our neighbours, India and Nepal. My suggestions are for the short-term, and from a business perspective.
Requirements during Three Time Periods
The "service requirements" of the flood affected people/market can be provided in three time periods: before, during, and after the flood. Before a flood we need awareness, training, and preventive measures against epidemics like cholera, diarrhea, and water-borne diseases. During a flood we need timely supply of drinkable water, food, fuel, medicine and daily necessities. After a flood we need human rehabilitation and support for rebuilding the infrastructure (roads, railways, etc.). Every time flooding occurs, these three types of service requirements emerge.
Segmentation of the Market
There are many different ways we can divide the flood-affected population/market. The process can be very complex. For the sake of simplicity, I shall take two variables, level of poverty in the region (high and low) and geographic accessibility (good or poor). Based on the two variables, we could categorise the flood affected market/regions into four segments (see table). Each segment would warrant a different level of service and policy intervention. The table is self-explanatory, and I refrain from discussing it. The segments described in the table are not permanent. As the water recedes/moves south the segmentation pattern and service level changes.
Poverty (High)-Accessibility (Good):Because of better accessibility this may be a relatively easier segment to conduct relief operations in. However, restoring the market will be difficult because of high poverty. As income falls, people's suffering increases. We need income generating projects in the post-flood period. | Poverty (Low)-Accessibility (Good):This is by far the easiest segment to serve. Market mechanism can be restored relatively quickly because of higher income level. Retaining accessibility by rebuilding the infrastructure after the flood is important. |
Poverty (High)-Accessibility (Poor):This is the most difficult segment to address. We need better planning and advance preparation to serve this segment. We need infrastructure as well as income generating projects for the segment. This is the most expensive segment to cater to. | Poverty (Low)-Accessibility (Poor):Infrastructure is the main issue for this segment, and the population needs short term relief. We may need to act on a long term solution to accessibility, both before and after a flood. |
Making Market Work
Making the market work is difficult during floods. Supply-side economics becomes the key issue. We need the cooperation of the businesses, NGOs, civil society, politicians, government, media and the citizenry. The defense forces can be used for logistics and distribution. Here are a few suggestions.
1. Business and community leaders will have to play a conscientious role. Their teamwork at the grass-roots level is a must. The government should work as an auxiliary force.
2. The supply chain will have to be analyzed before a flood, and will have to be established quickly as flood strikes. The Netherlands has been doing this for a long time.
3. To keep the supply chain operational, the government may need to take (as it always does) special measures for procurement and distribution of daily necessities.
4. The government can exempt duty for the import of essential items during a flood. Incentives may also be provided to businesses for infrastructure building after flood, as a long term measure.
5. Vigilance against corruption and profiteering is also needed. The government will have to take proper measures in this regard.
Need for National Unity
Along with a business model, we need national unity. Usually, under a political regime, the government machinery and the political forces work hand in hand during a flood. Since political activities are banned, the political leaders may not be as enthusiastic as they were before in addressing the issue. Some politicians are even barred from participating in the process.
The creative spirit of a nation thrives under freedom, be it during peace, at war, or during natural calamities. Freedom fosters unity. Without political freedom, the spirit of the nation faces a setback. That's learning from history. Let us not miss that, even when we have a functional business model.
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