Donor Conference on Earthquake Reconstruction Islamabad, Pakistan November 19, 2005 Speech of Mr. Praful Patel, South Asia Vice President, the World Bank INTRODUCTION Mr. President, Mr. Prime Minister, Secretary General, Honorable Guests and Colleagues, Before my remarks, let me convey World Bank President Paul Wolfowitz’s message of deepest sympathy to the people of Pakistan for the tragedy that struck on October 8. He said: “I truly wish that I could be in Pakistan to attend the donor conference in person. I have asked Praful Patel, Vice President for South Asia, to represent me. I would like to assure you that my staff and I are doing all we can to assist Pakistan during this difficult time.” On behalf of the staff and management of the World Bank, my deepest condolences to the people of Pakistan. Words cannot comfort those who have lost family members, friends, homes and communities. But please do know that you are all in our thoughts and prayers each day. Of course some employees of the Bank too lost loved ones and friends, and the response of our entire staff in providing comfort, donations and volunteering their time has been a re-assurance during this period of acute loss and suffering. In Washington I have been briefed daily on the earthquake response and there have been many accounts of the heroic role played by the Government of Pakistan and civil society organizations. But it was not until I visited the affected areas a few days ago that the reality of this came alive for me. Firstly, the spirit of generosity of the people of Pakistan – inside and outside its borders – is truly fantastic. The ability of this Government to coordinate an effective response in the face of tremendous loss and shock has been impressive. The undying commitment of those at the forefront of the rescue and relief operation has saved untold lives, rescued whole communities and fed and clothed families. And the ability of civil society to organize itself and operate under the most difficult circumstances is a testament to the abilities and perseverance of the people of Pakistan: the nation has confronted this most horrible natural disaster with courage and profound concern for the fate of fellow citizens. The television images of this disaster have been horrific. But it is only by visiting the areas that one can appreciate the sheer scale and extent of the damage. From the air one can see rooftops of entire villages that seem to be somewhat normal. And then you land and see that every home and every business is completely destroyed. The roofs have simply collapsed as great flat slabs crumbling the structures – and the lives – below them. From the air it could be normal but on the ground it is complete destruction. Sadly, South Asia knows natural disasters all too well. Whether tsunamis, earthquakes, floods, drought, or landslides – they bring death and destruction. Each disaster is a new battle fought and there are hard-won lessons every time that help us learn from each tragedy so that we may respond more effectively the next time and try to reduce the vulnerability and suffering. In Pakistan, Government and donors have agreed on a number of key principles that will help ensure not only our best immediate responses, but medium and long term reconstruction designed carefully to benefit everyone and contribute to poverty reduction. I would like to focus on a couple of these. The first principle is to “Leave no one behind – ensure even reconstruction”. It is critical that reconstruction avoids any sense of unfairness by preferential treatment of one part of an affected area or of urban over rural areas. While 87 percent of affected people lived in rural areas and 90 percent of reconstruction will be in rural areas, the images we have seen on television have been largely from Muzaffarabad and Balakot. Likewise, there must be commitment by all sides to ensure even reconstruction regardless of political affiliation or perceptions of strategic value. We cannot waiver in the wake of disaster in our efforts to reach everyone. The second key principle is that of a “Coordinated Reconstruction and Uniformity of Policy”. Emergency responses are generally chaotic responses. This chaos often leads to further emergencies – as we have seen recently in the wake of hurricane Katrina in New Orleans. But coordination of emergency efforts musts pave the way for coordination of reconstruction efforts where policies, procedures, regulation, and oversight are required to avoid waste, fraud, and distortion. As the people and Government of Pakistan begin to rebuild homes, schools, roads, bridges, and businesses, uniform policies will be needed to avoid widely varying approaches to housing, public facilities, access to goods and services and provision of security and justice. It will be crucial to ensure that all families are provided with a basic standard of housing, adequate food and water, schools and health clinics that respond to the geographic and demographic needs and opportunities to rebuild livelihoods. Linked to this second principle I would suggest a third: that of “Coordination of international support”. We should not congratulate ourselves too readily but I am really encouraged by how the international community has worked together to assist Pakistan. The last thing a vulnerable disaster-struck country needs is donors falling over each other and fighting battles over who does what. Sadly we have seen this before and I congratulate our partner agencies and bilaterals, especially their tireless representatives in Islamabad, for the spirit of coordination and cooperation which has characterized the response this time. The fourth key principle is to “Secure development gains and progress in poverty reduction”. This earthquake hit just as Pakistan’s poverty reduction program was gaining real momentum. There was rapid growth of GDP, income, trade, investment and we were expecting a rapid fall in income poverty. To maintain this momentum the Government of Pakistan has pursued stable and supportive policies. It is also at the beginning of a major infrastructure development program over the next five years to meet the growing needs of a growing economy. If the international assistance is not enough, Pakistan will have no choice but to divert a regrettably large share of its medium term development program to rehabilitation and reconstruction of the lives of those affected by this terrible shock. If the Government has to shift too much public expenditure away from its development program, recent gains in poverty reduction and human development progress will be jeopardized. It is important that we guard the gains made even as we help Pakistan recover. The World Bank has been active in Pakistan since 1950. During this long partnership we have seen high points and low points, but the Bank has remained a partner. And that remains our commitment. The post-earthquake reconstruction will take many years and the Bank will be a partner until the job is done. We are prepared to provide at least $1 billion over the medium term for earthquake reconstruction. The World Bank’s Pakistan program can accommodate this because our lending envelope has grown as Pakistan’s economic performance has improved. In the two weeks immediately after the earthquake we put together a $470 million package of assistance as an immediate response. Members of our Board of Executive Directors urged us to do more and do it more quickly. As I have discussed with the President and Prime Minister, the Bank is committed to appraise an Emergency Recovery Credit of $300 million before the end of December, and we would envision a similar amount – or more if needed – during the next 24 months. These responses will of course align with Government’s priorities, the findings of the Preliminary Damage and Needs Assessment, and delivery of aid from other development partners. Most of this will be soft loans from the International Development Association. Our Board has also taken the unusual step of providing $5 million as grant. While we will give special attention to the earthquake response, the Bank will of course remain committed to our ongoing work in Pakistan. As I said earlier, one of the principles of our engagement must be to secure and safeguard development gains. Our work with Government on macroeconomic policy and reform will continue on its critical path. The preliminary cost of reconstruction is equal to nearly four percent of GDP, and much of these costs will fall to Government due to the rebuilding of public social and physical infrastructure and the need by those affected for government assistance. A Poverty Reduction Support Credit (PRSC) for $300 million supporting key economic reforms was already planned for this year. Likewise, we have a strong range of projects coming on stream from irrigation and education in Balochistan, to land records and education in Punjab, and a development policy credit in NWFP. We also have a good sector dialogue underway in Sindh on areas such as fiscal management, education and irrigation which soon will result in new projects. Pakistan has demonstrated its ability to stick with a wide-ranging and ambitious program of macroeconomic and structural reform. Growth accelerated from 3.3 % in the period 1997-2002 to over 6.5% during 2002-2005. Public debt has fallen to around 60% of GDP from almost 90% in 2000/01, and creditworthiness is improving. The burden of recovery and reconstruction will be great but this government understands all too well that a stable and growing economy is what it takes to provide a basis for broad-based growth, improved livelihoods and a continuing program of poverty reduction. This will be critical not just for the earthquake victims but for the one third of Pakistanis nationwide living below the poverty line. The scale of the development changes becomes just that much greater while managing the huge task of earthquake reconstruction. Now is not the time to preach and this Government has shown itself alert to the need to keep the key monetary and fiscal outcomes in balance. This may require difficult reforms ahead. And for earthquake victims the tough winter is fast approaching. Much of our attention needs to remain on those in immediate need. But we might also ask ourselves what the future will look like for the beautiful valleys of Kaghan, Naran and Neelum or the cities of Muzaffarabad, Bagh, Rawalakot, Batagram and Balakot. We might hope that it will be better than before. My hope would be that the future will see less death and destruction in the aftermath of natural disasters. We know that this greater area of South Asia is vulnerable to earthquakes. It is critical that Government implement sound regulation to ensure that sensible and realistic measures are taken to reduce future disaster risks. These would include building safer public infrastructure – particularly schools and hospitals. These buildings should incorporate improved building standards and designs so that they themselves may be used as evacuation centers. Likewise, there is a need to focus on land use and planning to avoid poor site conditions and preparation for new and reconstructed buildings. Finally, homes and businesses can be built to standards that are more likely to sustain another seismic event. There are numerous technologies available that may be applicable to Pakistan and certainly upgrading construction quality and appropriate oversight of construction will save lives in the future. In closing I would like to acknowledge the Government of Pakistan for the tremendous response it mounted. I have personally met with district officials, military officers, civil servants and volunteers working 24 hours a day under the most difficult of circumstances. What I have seen is a Government united by a common cause and moved by the fate of humankind. I would also like to thank Government for the confidence it has shown in the international community – providing our agencies with the space to undertake emergency work, prepare the Preliminary Damage and Needs Assessment, and visit affected areas. Thank you to our development partners – particularly the ADB, the UN family of agencies, and the EU, DfID, GTZ, KfW, JBIC, JICA, and USAID and many others for their support and cooperation over the past few weeks. While I am sure it has not always been easy, the results have been tremendous and your staff and management should be proud. And finally I would like to again note the character of the Pakistani people. Be they local health workers who set up emergency treatment sites in the rubble knowing that members of their own families were likely dead; or volunteers from Karachi, Lahore, and beyond who drove through the night to reach the devastation; or the helicopter pilots who worked beyond their limits to provide water and medical supplies. They all exhibited those true Pakistani traits of generosity, caring, commitment and unity for the common good. We can only be proud to help and humbled by those we support. Thank you. |
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