The disaster after the disaster: The quicksand of post-disaster recovery funding

Abstract

The incidence of natural disasters is on a steep rise, as are the costs associated with recovering from such incidents. Financially, this trend is unsustainable. In the USA, for example, severe reductions have been imposed on the grant funds available for distribution by the Federal Emergency Management Agency. Compounding this, failure to understand the intricacies of complex and ever-changing federal regulations can lead to costly ‘take-backs’ by funding agencies. This paper discusses the importance of establishing a disaster cost-recovery strategy before disaster strikes. Such a strategy will increase the amount of financial assistance received and retained. The paper also discusses how understanding the differences between disasters and catastrophes can simplify the challenges of financial recovery. The paper proposes 11 principles of disaster cost recovery, and explains how applying these principles can make the process less complicated and less stressful. While the paper focuses on the US experience, many of the principles discussed translate to other countries. All governments are bureaucracies, and all bureaucracies have their rules to be followed, especially when it comes to handing out money. When spending government funds, providing adequate and detailed documentation is a fact of life.