Govt plans disaster fund to assist local communities

The government is setting up a disaster fund to promptly assist people affected by natural disasters while also fostering economic recovery.
The cabinet’s recent monthly meeting debated a decree relating to the fund, which was drafted by the Ministry of Labour and Social Welfare.
The decree sets out principles and measures for the management and use of the fund as well as mechanisms to mobilise financial support and fast-track emergency response and relief efforts for affected families.
Director General of the Social Welfare Department, Mr Vilaypong Sisomvang, told Vientiane Times on Tuesday the fund will be administered at the district, provincial and central levels.
“Disaster Management Committees at these three levels can make decisions on ways to use the fund promptly to help affected families in the event of weather extremes,” he said.
“We have revised the decree based on recommendations from cabinet members and will soon resubmit it to the government for consideration and approval.”
Laos is vulnerable to climate change and natural disasters such as floods, drought and landslides. Such events have claimed many lives and caused great damage to the economy. 
One of the main problems is that when a flood hits, it takes days or weeks for authorities to collect data concerning the extent of the damage before asking the government for funding support for the affected communities.
Mr Vilaypong said the disaster fund was designed to address this issue and speed up the provision of support. Local authorities will be authorised to directly access a pool of funding based on their actual needs.  
This should enable affected families to get back on their feet quickly and continue to contribute to socio-economic development. 
Mr Vilaypong explained that the fund would help the authorities to better mobilise capital from various sectors such as private enterprise, international organisations and other donors.
“The government will allocate some of its budget to the fund each year and will mobilise more funding from society so that we have sufficient financial resources to fast-track support to people affected by natural disasters,” he said.
Farmers are struggling to increase yields amid flooding and landslides while in some years their crops are affected by prolonged dry spells and delayed rainfall.
In 2018, heavy rains triggered by two tropical cyclones hit the country, compounded by the collapse of a dam in Attapeu province, causing catastrophic flash flooding. This was the most costly flood event in a decade.
According to a World Bank report, the cost of damage caused by flooding that year was estimated at more than US$371 million, equal to 2.1 percent of the country’s projected GDP in 2018.
Over 600,000 people across the country were affected and floods destroyed infrastructure, agriculture, houses and other property.

By Somsack Pongkhao
(Latest Update September 10, 2020)