INVESTMENTS and sustainability are essential to the long-term growth of an economy, while employment is a necessary component that will ensure inclusive growth.
These three words—investments, sustainability and employment—apply to the national economy, regardless of other circumstances, like natural calamities. These came to mind after several quiet visits to Tacloban City in Leyte province and other areas devastated by Supertyphoon Yolanda (international code name Haiyan).
Most of the activities in these areas, mainly undertaken by United Nations agencies, other foreign entities, the government and the private sector, continue to focus on immediate relief, like food distribution, health care and the construction of shelters for the poor survivors. Rehabilitation efforts are predicted to last several years, but I wonder: What happens after that?
Even after the last debris from the disaster had been disposed of, and all the damaged roads and buildings had been repaired or replaced, life for the survivors would be an ongoing challenge if there are no jobs, because investments are not coming in to restart businesses or open new ones and ensure sustainable growth.
My previous two-part series focused on some observations about the plight of the Yolanda survivors, which coincided with the annual observance of Halloween. More than a week later, we still watch television shows featuring the survivors of the world’s worst typhoon on record. A beautiful musical video highlighted the common message of these shows: the rise or recovery of the disaster-stricken areas.
The presentations generally appealed to the emotions, but I would like to get down to the brass tacks. Most businesses are still helping the Yolanda survivors through their corporate social responsibility (CSR) activities, like donating cash or goods, including some homes, or planting trees.
However, there’s another way to really help the survivors, and that’s through their businesses. Many businesses, including big housing companies, mall developers, restaurant chains and other industries, can participate by creating more businesses in the areas hit by the typhoon.
For example, banks should not discontinue lending. Instead, they can create a special window for entrepreneurs in Tacloban and other Yolanda-stricken areas.
I was saddened to learn that some banks stopped their lending activities in the disaster areas after the November 2013 calamity struck.
In addition to the free houses that are being built for the marginalized sector of the population, the government can come up with rate-subsidized housing, which will provide almost interest-free housing loans to survivors who are back at their jobs. I believe this will not only help the people, but also encourage them to grow, aside from generating jobs in the construction sector.
Initially, the returns may not be good for the investors, but for the big companies, their business in Tacloban or other typhoon-hit areas will be small, so that, even if they lose or break even in their operations in these areas, it will have a minimal effect on their bottom line.
So the private sector can really help, not so much in terms of cash or in-kind donations or CSR work, but in an honest-to-goodness desire to invest more in the areas. In fact, I will even suggest that the heads or CEOs of these companies frequently visit their units in the Yolanda-stricken areas to encourage other investors to come in. We call this the bandwagon effect: When the tycoons come, other investors will follow.
Incidentally, I believe that rewards should be given to businesses that stayed open, continued to operate and did not abandon the disaster area. Businesses that face difficulties in their operations amid the challenges caused by the typhoon should be assisted financially by the banks. If they all exert a concerted effort to boost their presence in these areas and increase their investments, it will create more jobs and inspire the survivors to move forward.
In the long run, it will be the investments from the private sector that will be sustainable, that can really ensure the sustainability of the rehabilitation of the Yolanda-stricken areas. Only then can we see clearly the success of the rehabilitation and recovery efforts in the Visayas.
To be continued next Tuesday
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