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El Salvador - GFDRR

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| 127<br />

VI. ESTIMATE OF RECOVERY AND<br />

RECONSTRUCTION NEEDS<br />

A. BACKGROUND<br />

After a disaster strikes, it is necessary to address the needs of the affected population: first, requirements<br />

for dealing with immediate or emergency needs are identified; next, two types of activities designed<br />

to ensure the recovery of the economy and of living conditions and to reconstruct the physical assets<br />

that were destroyed are addressed simultaneously. Finally, activities aimed at reducing the risk of future<br />

disasters should be initiated and put into practice in the long term.<br />

In the case of the disaster in <strong>El</strong> <strong>Salvador</strong> caused by Tropical Storm Ida and the low-pressure system,<br />

which occurred in early November 2009, it may be stated that the emergency humanitarian aid stage<br />

is now over, although some of this type of activities should continue for a while longer. Those activities<br />

corresponding to the subsequent recovery, reconstruction and risk reduction stages should be carried<br />

out next, keeping in mind that they should begin simultaneously and be executed according to different<br />

timeframes.<br />

In accordance with the CEPAL methodology, recovery needs are estimated on the basis of the financial<br />

resources required for the economy—at macro, sectoral and family or personal level—to return to normal<br />

performance levels; these resources represent a fraction of the value of production and income losses<br />

in each sector. Reconstruction needs, however, are estimated as the requirements for financing that will<br />

make it possible to repair, reconstruct or reinforce the physical assets that were destroyed or damaged by<br />

the disaster. These figures are increased in order to consider quality improvements, the adoption of antidisaster<br />

design and construction regulations, and in some cases the relocation of various activities and<br />

settlements to safe places.<br />

Finally, if reconstruction is estimated to take more than one calendar year, it is necessary to add the<br />

corresponding inflation rates.<br />

The estimate of financial needs for recovery and reconstruction therefore uses quantitative information<br />

from the systematic estimate of the value of destroyed assets (damages) and of changes in economic flows<br />

(losses), presented in Chapter 2 of this assessment. This makes it possible to ensure objectivity when estimating<br />

needs for recovery as well as for reconstruction, and to avoid subjective opinions on this matter.<br />

Specifically, the value of losses in each sector of economic activity that was affected is used —in terms<br />

of the characteristics of each of these sectors—to estimate the amount of resources required for recovery<br />

in income and production in as short a period as possible. Furthermore, the amount of reconstruction<br />

needs is estimated on the basis of the value of destroyed assets (damages), adding them to the amounts

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