Tsunami Evacuation Structure

 

Commission Grantee – San Jose State University

Learning from Japan – Post Earthquake Business Recovery: Learning from Japan’s Experience

 

At the January 2018 Seismic Safety Commission meeting, Professor Guna Selvaduray of San Jose State University presented the results of his work on what California business can learn from Japan’s experience before, during and post earthquakes. His presentation covered the post-earthquake economic recovery measures implemented by the Japanese national and local governments.

This report focused on the 2012 creation and activities of the Reconstruction Agency, which was established after the M9.0 Great East Japan Earthquake on March 11, 2011, and the resulting tsunami. More than 19,700 people died, 3,591 from the earthquake and the rest from the impacts of the tsunami. More than 100,000 buildings were totally destroyed and another million partially destroyed or damaged, with a total estimated economic loss of over $169 billion.

The Reconstruction Agency, which is supposed to operate for 10 years, has more than 1,000 personnel and provides a range of assistance to citizens and businesses, including housing assistance, rebuilding communities with improved disaster resilience, rebuilding homes, and health care including mental health. This is similar to what is done in the US, but Japan also has programs specifically targeted to businesses with an approach in line with Japanese business culture. Businesses with a focus on small and medium enterprises (SMEs) that are interdependent on each other can form a “group” and apply for funding to enable/accelerate their recovery.

The local government works with the group to prepare their application to the national government, which funds 50% (the group must provide a 12.5% match), and the grants have a $30 million maximum. Other requirements include that the group must be essential for regional recovery or the national economic supply chain. The groups can also be essential for rebuilding the regional community, such as shopping areas, or the groups can have a mutual inter-dependence and need to be supported together. Single businesses are not eligible.

As of last August, almost 700 groups representing more than 7,000 businesses had been funded and received $5 billion in support. This group approach is credited with being instrumental in accelerating economic recovery after the earthquake and tsunami and was presented by Professor Selvaduray as a model that California and the US can learn from.