PAKISTAN - EARTHQUAKE: USAID/DART ECONOMICS AND

UNCLAS SECTION 01 OF 06 ISLAMABAD 017426

SIPDIS

STATE ALSO PASS TO USAID
USAID/W FOR A/AID ANDREW NATSIOS, JBRAUSE
DCHA/OFDA KISAACS, GGOTTLIEB, MMARX, RTHAYER, BDEEMER
AID/W FOR DCHA/OFDA
SOUTH ASIA RESPONSE MANAGEMENT TEAM
SOUTH ASIA EARTHQUAKE TASK FORCE
DCHA/FFP FOR JONATHAN DWORKEN
ANE DEPUTY ASSISTANT ADMINISTRATOR MARK WARD
BANGKOK FOR OFDA SENIOR REGIONAL ADVISOR TOM DOLAN
KATHMANDU FOR OFDA REGIONAL ADVISOR WILLIAM BERGER
ROME PASS FODAG
GENEVA FOR RMA AND NKYLOH
NSC FOR JMELINE
EUCOM FOR POLA/J3/J4/J5
BRUSSELS FOR USAID PLERNER
NEW YORK FOR TMALY
SECDEF FOR SOLIC/PKHA, USDP/J3
JOINT STAFF WASHINGTON DC FOR J3/J4/J5
HQ USEUCOM VAIHINGEN GE FOR J3/J5

E.O. 12958: N/A
TAGS: EAID AEMR ASEC MASS ECON KMDR KPAO OIIP OPRC PGOV PREL PK
SUBJECT: PAKISTAN - EARTHQUAKE: USAID/DART ECONOMICS AND
LIVELIHOODS REPORT


--------------
SUMMARY
--------------


1. Immediately following the October 8 earthquake, relief
agencies concentrated efforts on providing affected
populations with urgently needed humanitarian assistance and
shelter to assure survival during the upcoming winter
months. The USAID Disaster Assistance Response Team's
(DART) program has provided robust support for these
activities, but has also taken steps to promote livelihoods
and market revitalization. The USAID/DART has led this
transition and to date, has provided approximately USD 4.5
million to seven NGO partners to implement cash-for-work
(CFW),cash-for-training (CFT),and voucher activities. The
USAID/DART has collaborated closely with USAID/Pakistan to
design, fund, and implement programs that can transition to
longer-term, mission-supported programs. End summary.

--------------
Background
--------------


2. Since the October 8 earthquake, USAID, the Government of
Pakistan (GOP),UN agencies, and NGOs have focused their
efforts on emergency medical care, distribution of food and
emergency relief supplies, and shelter activities to assure
survival of the earthquake-affected population during the
winter months. Such activities have been and will continue
to be important to address the immediate needs of earthquake-
affected population. To complement these activities, the
USAID/DART is also promoting livelihoods and market
revitalization that will assist people in obtaining their
own food, shelter, and other needs.


3. To promote livelihoods and revitalize local markets, the
USAID/DART has funded seven NGO partners to undertake
activities including clearing roads; removing rubble and
salvaging construction materials on-site at destroyed
schools and hospitals; clearing shelter sites and community
infrastructure by community-based groups; rebuilding
community infrastructure; performing carpentry work to
assist in the rehabilitation and reconstruction of family
dwellings; constructing and rehabilitating latrines; and
performing other labor-intensive camp-based activities.

--------------
Implementation issues
--------------


4. Implementation of additional livelihoods activities has
had to wait, however, due to several factors. During
Ramadan, which began on October 4, the vast majority of
Pakistanis fasted during the day and were, therefore, not
enthusiastic about participating in CFW activities until
Ramadan's end in early November. In addition, the scarcity
of local NGO implementing partners, poor road access in
proposed activity areas, generous cash remittances from
diaspora communities, and the difficulty in organizing
activities due to the dispersal of settlements in the rural
hillsides, also delayed livelihood programs startup.

-------------- -
President Musharraf's cash disbursement scheme
-------------- -


5. On November 11, President Musharraf announced that the
GOP would immediately disburse 100,000 Pakistani Rupees
(PKR),which is approximately USD 1,666, to the next of kin
of those who died in the earthquake, PKR 50,000 (USD 833) to
people injured in the earthquake, and PKR 25,000 (USD 416)
to those whose houses were damaged or destroyed. This has
created disincentives for affected populations to engage in
CFW activities due to the promise of large inflows to
communities.


6. As reported septel, this payment scheme has generated
much publicity, although early reports received by USG
officials at the Forward Operating Base in Mansehra suggest
that implementation of the program has been inconsistent.
Some district governments have already received funds to
disburse to families that lost members. In Mansehra,
officials are allowing victims to file claims in any union
council in the district, which are then verified against the
record in the union council where the victim died.
Battagram, however, is requiring victims to file in the
union council where the death occurred, as officials are
unable to cross check records from offices elsewhere in the
district. Payment is particularly complicated for those who
have moved from Battagram's Allai Tehsil to Mehra Camp,
which is located in neighboring Shangla district. Shangla
authorities claim that they will make immediate payments
based on a death certificate issued within the district
boundaries that identifies earthquake as the cause of death.
Abbottabad is using the Mansehra model.


7. To date, no money has been provided to compensate for
lost housing. Payment is administered by the district
governments, with each seeming to have its own disbursement
mechanism. As a result, progress is varying from district
to district. For example, the Mansehra district government
claims to have made payments for deaths to the families of
70 percent of victims, although NGOs claim the actual rate
is closer to 40 percent. The Battagram district government
claims to have made payments for deaths to the families of
approximately 50 percent of victims. The Shangla district
government claims to have compensated 100 percent of those
who lost family members, but this cannot be verified due to
the scarcity of NGOs working with victims in this district.
The Abottabad district government reports to have made
payments for deaths to the families of 60 percent of
victims, but NGOs believe the figure may be closer to 20
percent.


8. District authorities indicate that payments will continue
until available federal funds are exhausted or until all
victims are compensated, but no officials were able to
estimate a timetable for the program's end. The USAID/DART
observes that the process of settling claims and disputes
will likely take many months if not years to complete. The
USAID/DART will continue to monitor the implementation of
this program to assess the impact on proposed USAID
livelihoods and market revitalization activities.

--------------
USAID/DART-FUNDED ACTIVITIES
--------------


9. In addition to facilitating the distribution of urgently
needed relief commodities, the USAID/DART believes that
livelihoods and economic revitalization will play a key role
in the food security and recovery of the earthquake-affected
area. To date, the USAID/DART has provided approximately
USD 4.5 million to seven NGO partners to implement Cash for
Work (CFW),Cash for Training (CFT),and voucher activities.
NGOs have undertaken assessments, identified priority areas
and beneficiary populations, and mobilized teams to
implement programs. For quick start-up, some NGOs are
working directly with community leaders rather than continue
searching for local partners:


10. ACTED: Providing CFW for individuals to clear debris,
salvage reusable materials, and engage in basic
reconstruction of the infrastructure.


11. American Refugee Committee (ARC): Providing
opportunities for 7,000 heads of households to rebuild homes
with professional assistance, and is hiring skilled
carpenters to supervise the building process.


12. Catholic Relief Services (CRS): Focusing programs on
debris clearing, rehabilitation of public spaces and shelter
rehab/reconstruction are currently underway.


13. GOAL: Providing non-agricultural workers with employment
on civil and public works rehabilitation.


14. International Rescue Committee (IRC): Thus far, IRC is
engaging in limited CFW activities to assemble emergency
household shelter kits.


15. Mercy Corps: Employing local residents to clear rubble,
prepare sites, and undertake shelter reconstruction and
rehabilitation at a rate of 100 per day.


16. Save the Children/US (SC/US): CFW activities to improve
Mehra camp have begun and SC/US plans to undertake CFT
activities to promote seismic building guidelines.


17. In total, CFW and CFT programs funded by USAID will
directly benefit approximately 45,000 people and indirectly
benefit an additional 250,000 people. The USAID/DART will
continue engaging in discussions and sharing information
regarding the implementation of livelihoods programs with
its implementing partners. This dialogue allows
implementing partners to increase their implementation pace
and efficacy.

--------------
Transition to USAID/Pakistan
--------------


18. The USAID/DART has collaborated closely with
USAID/Pakistan throughout the earthquake response and is
developing a program to transition livelihoods activities to
USAID/Pakistan. The USAID/DART will fund proposals that
both address immediate opportunities for livelihoods and
market revitalization, while transitioning to longer-term
reconstruction activities in support of the Mission
reconstruction program. Proposed activities under review
and development include community-based earthquake-resistant
shelter construction training, which will eventually bridge
to mission-supported earthquake-resistant construction of
schools and hospitals. The USAID/DART is also exploring the
possibility of revitalizing local markets through activities
to support micro-finance and/or promotion of business
development skills.



CROCKER