El Salvador - GFDRR

4 | El Salvador: Damage, Loss, and Needs Assesment
On the basis of families that lost their homes or were displaced from them in the emergency, and taking
into account the income losses that occurred as a consequence of the disaster, it has been estimated
that the population affected in a primary and secondary manner totals just over 122,000.
Based on the use of the disaster assessment methodology developed by CEPAL since 1972, it has been
estimated that, besides suffering the regrettable loss of human lives, the value of damages and losses caused
by the November 2009 disaster in El Salvador totals US$314.8 million, which represent the equivalent of
1.44% of the country’s gross domestic product (GDP). Of the entire economic effect, US$210.7 million correspond
to the destruction of assets (66.9% of total damages and losses), while the remaining US$104.1
million represent changes in economic flows and include both production losses and higher service costs
(33.1% of the total). Of the total amount of damages and losses, 63.3% (US$199.3 million) refers to
public property, while 36.7% (US$115.5 million) refers to private property (see Chapter II, Table 7), a ratio
that illustrates the relative effort that each of these sectors will have to make in recovery activities.
The magnitude of the disaster at national level is limited. However, when geographically more disaggregated
values are examined, the tragedy caused by this event can be better visualized. It is worth noting
that the impact of the disaster was concentrated in 5 of the country’s 14 departments, accounting for
nearly 85% of damages and losses. There is an inverse relationship between the higher value of damages
and losses per person, and the relationship between these effects and the GDP, with regard to the current
year’s Human Development Index (HDI). This implies damages and losses to the livelihoods of segments of
the population with high levels of economic and social vulnerability. These have been concentrated on the
population that suffered the partial or total loss of their homes and assets.
Different types of needs with a different degree of urgency and duration are drawn from this impact
profile. With information on the quantification of damages and losses, and information on the requirements
expressed by the various sectors consulted, a table of recovery and reconstruction needs has been
prepared, detailing by principal sectors the amounts needed for each type of intervention. In summary, the
amount needed for recovery is estimated at US$105.9 million, which would be used between December
2009 and June 2010, before the next rainy season starts in the country, while the total amount needed
for reconstruction is estimated at US$149 million, to be used between the end of 2009 and 2014 (see
Chapter VI, Table 47). Added to these are immediate needs for early recovery and, in the short and long
terms, for undertaking substantial risk reduction efforts.
The country needs to adopt an explicit risk reduction strategy in view of the recurrence of this type of
phenomena and historical experience. Moreover, this event presents an opportunity to make significant
changes in the pattern of spatial development and the development of economic and social sectors which
must be given greater attention due to their potential and their vulnerability.
In effect, a strategic framework of risk management is recommended, combining specific elements
found in El Salvador and lessons learned from international experience. The principles that underlie this
framework are: (i) human loss and the economic impact of disasters may be reduced through pre-disaster
planning and investments in prevention; and (ii) the strategic framework and the action plan are effective
in terms of cost and implementation. The pillars of the Risk Management Framework and their description
are presented in Chapter V.