BURMA CYCLONE: USAID/OFDA ASSESSMENT CABLE #6

UNCLAS RANGOON 000650 AIDAC DEPARTMENT FOR EAP, PRM, DRL STATE ALSO PASS TO USAID AID/W FOR DCHA/FFP AND DCHA/OTI AID/W FOR DCHA/OFDA KLUU, ACONVERY, RTHAYER BANGKOK FOR DCHA/OFDA WBERGER AND TROGERS KATHMANDU FOR DCHA/OFDA SMCINTYRE AND MROGERS USMISSION GENEVA FOR NKYLOH USMISSION USUN FOR FSHANKS E.O. 12958: N/A TAGS: EAID SENV KSCA TBIO VM EAGR PREF SUBJECT: BURMA CYCLONE: USAID/OFDA ASSESSMENT CABLE #6 REF: A) RANGOON 0546 -------------- SUMMARY -------------- ¶1. On July 29 and 30, a USAID Office of U.S. Foreign Disaster Assistance (USAID/OFDA) disaster specialist traveled to the Irrawaddy Delta on a U.N. Development Program (UNDP) sponsored assessment trip to highlight early recovery programs instituted by UNDP and the international non-governmental organization PACT. During the two-day assessment, the team visited the villages of Shwe Pyi Aye, Nge Thu, and Kyar Chaung in Bogale township, which had been severely affected by Cyclone Nargis. Although almost completely destroyed, all three villages were making every attempt to reinstitute traditional livelihoods. Aside from the basic assistance provided by humanitarian organizations and the Government of Burma (GOB),the villagers had yet to receive any monetary-based assistance. Villagers interviewed consistently requested help to restart income generating activities and reenergize economic activity. At present, the villagers are largely dependent on outside assistance for basic needs. Residents without any assets, including landless individuals, are left with little or no income generating capacity. End Summary. -------------- ECONOMIC ACTIVITY -------------- ¶2. The GOB instituted public works programs in the initial days of the post-cyclone clean up, but only for a one-week period. The villagers were paid for the collection and burial of dead bodies, debris removal, road and pond cleaning, and reconstruction of primary schools. Prior to Cyclone Nargis, UNDP and PACT had established self-reliance, or micro credit, programs and all verified clients have had program savings returned along with the cancellation of any outstanding debt. After the cyclone, UNDP has provided small grants through PACT to some of the villagers for shelter reconstruction, small trade operations, and farming equipment. Since the initial cash infusion, no other basic economic activities have been carried out at the village level. Comment: See Ref A for additional information on the UNDP/PACT microfinance ;project. USAID/OFDA has provided funding to PACT for the small grants program. End Comment. -------------- FARMING -------------- ¶3. In each of the three villages visited, the assessment team observed rice farmers cultivating fields with power tillers provided by either the GOB or humanitarian organizations. The rapid provision of equipment and seed allowed the farmers from the three villages to plant the majority, if not all, of the local land set aside for rice farming. The initial distribution of assets to cultivate the land did not provide the cash needed to pay laborers and buy additional seed to plant the fields, should the seeds donated by the GOB not germinate, as has occurred on several previous occasions. ¶4. The losses from the cyclone, including water buffalo, savings, and the previous season's seed crop, has altered traditional farming practices with adverse affects for laborers. Farmers have been able to access small loans through the UNDP Early Recovery Basic Service Packages to procure lost equipment. As a condition of the loans, farmers must contribute three to five baskets of seed per acre planted to the seed bank at harvest time. The UNDP loans are only available to individuals with existing assets. -------------- -------------- ECONOMIC IMPACT ON LABORERS AND LANDLESS INDIVIDUALS -------------- -------------- ¶5. Participants in the community discussions at each of the three villages asked for small grants and loans to be given to the landowners to provide the resources to hire the labors to work the fields. Presently, the team noted that farming is being done by immediate and extended members of the landowner's family, and work is moving at a quick pace due to the introduction of large numbers of power tillers. If additional seeds are provided, the land under production would increase, necessitating the hiring of laborers by landowners to plant the additional seeds. Seeds have been provided under a repayment plan by the GOB and through the UNDP and PACT programs, as well as donated by humanitarian organizations. ¶6. Members of the assessment team commented that the change in farming practices could ultimately further economically marginalize laborers due to replacement of lost water buffalo with power tillers. Ultimately, the tillers can cover more land in a day than a team of buffalo and are not as labor intensive. However, with the loss of so many draft animals and the need to plant rice before the end of the planting season, many in the humanitarian community believe that providing power tillers was necessary. -------------- INCOME GENERATING ACTIVITIES -------------- ¶7. UNDP staff indicated the early recovery programs planned for implementation in the coming months will involve small individual investments and grants, small-scale trading, and community infrastructure reconstruction programs. Such programs will include school renovation with a disaster risk reduction component to mitigate the affects of future storms. Before the cyclone, community based organizations were already running small-scale lending programs. UNDP and implementing partners will build on community familiarity with such programs to reenergize the local economy. Villagers present at the time of the assessment team's visit expressed interest in using the loans to begin income generating activities such as chicken, duck, and pig breeding programs. Until the next planting season, non-landowning laborers remain vulnerable and are at present completely dependent on external assistance and income from fishing and day labor. Cash-based programs are essential to preventing landless individuals from falling into a cycle of dependency. VILLAROSA