Post - Disaster Reconstruction Community Currency

by John Rogers, WICC, 2005




Purpose: to underwrite the post emergency 'reconsolidation phase' of a disaster situation.

Mechanism: Currency issued by agency working closely with communities rebuilding their lives after a disaster has occurred.


The World Health Organisation identifies two main stages in emergency situations of extreme stress caused by man-made or natural disasters: 'acute emergency phase' and 'reconsolidation phase'.

The 'acute emergency phase' is defined as "the period where the crude mortality rate is substantially elevated because of deprivation of basic needs (i.e. food, shelter, security, water and sanitation, access to PHC, management of communicable diseases) due to the emergency." The 'reconsolidation phase' is defined as the period "when basic needs are again at a level comparable to that before the emergency or, in case of displacement, are at the level of the surrounding population."
'Mental Health in Emergencies - Mental and Social Aspects of Health of Populations Exposed to Extreme Stressors'
Department of Mental Health and Substance Dependence, World Health Organisation, 2003

The WHO document neatly summarises the combination of psychological and social interventions required in emergency situations: “It is acknowledged that social interventions have secondary psychological effects and that psychological interventions have secondary social effects as the term psycho-social suggests.”

For the purpose of this paper we assume that an 'emergency currency' can be designed for the second ‘reconsolidation phase’ of a disaster. The WHO goes on to identify desirable social intervention activities in the 'reconsolidation phase' including "over time, if poverty is an ongoing issue, encourage economic development initiatives. Examples of such initiatives are (a) micro-credit schemes or (b) income-generating activities when markets will likely provide a sustainable source of income." A viable community currency for reconsolidation and reconstruction of shattered communities would fit into this category.


The principal purpose of a community currency in an emergency situation is to encourage participation of those affected, to build self-confidence and co-production with professional helping and coordinating agencies. The effects of this are to speed up the recovery of shattered communities, sow the seeds of future economic development and grow genuine partnerships of exchange. The power of collective self-help in psycho-social recovery cannot be overemphasized.

How it works

The following is the likely pattern for establishing a community currency to underwrite the post emergency 'reconsolidation phase' of a disaster situation:-

• A man-made or natural disaster occurs causing distress, trauma and displacement of people.

• Emergency relief work during the initial 'acute emergency phase'.

• Post emergency psycho-social programmes are established including: work activities such as sorting donated items, clearing rubble, rebuilding etc.; counseling and befriending services for those experiencing prolonged trauma; occupational counseling for those who have lost their livelihood; legal advice for those who have lost property. People earn 'time credits' for each hour of participation in these programmes which they can spend on choices from a 'reconstruction menu' of items provided by donor organisations such as tools, seeds, equipment, building materials etc. or on purchasing services from other local people. Time Credits are issued in the form of printed notes by an organizing agency and received back as items are redeemed from the 'reconstruction menu.' Rewarding people for their participation in this way doubly underlines their commitment to their own welfare and establishes the basis for a genuine community currency.

• The currency establishes itself for the duration of the reconsolidation phase then is gradually phased out as new communities reestablish themselves with new locally organised community currencies.

1. DISASTER

2. EMERGENCY RELIEF EFFORTS

3. PSYCHO-SOCIAL PROGRAMMES ESTABLISHED. PARTICIPANTS REWARDED IN TIME CREDITS TO SPEND ON MENU OF ITEMS.

4. CURRENCY PHASED OUT AS NEW LOCAL COMMUNITY CURRENCIES ESTABLISHED FOR LONGTERM CAPACITY BUILDING.

Identifying key players

Early analysis of the situation in refugee camps following the Asian tidal wave of 2004 by the Sri Lankan NGO Sarvodaya indicated that camp occupants fell into three groups:
• actual victims with no houses or resources
• unaffected physically but fearing to return home
• freeloaders coming to the camps from their homes each day to claim handouts and sometimes sell them to traders on the way home.

The prospects of establishing a successful emergency reconstruction community currency will be enhanced by effective camp management, focusing on the most able bodied and least traumatized members of the camps initially, gently encouraging the worst affected to participate on their own terms and challenging the freeloaders to take part constructively.

Emergency reconstruction community currency kit

The following is recommended as a minimum necessary to establish an emergency currency:
• One trained organizer to carry out overall organization and recruitment of participants
• 500,000 ‘time credit’ printed notes in 10, 5 and 1 hour denominations
• Tent and basic office furniture
• Solar powered laptop computer, printer and mobile phone
• Whiteboards and pens
• Laminated Reconstruction Standard Menus for earning activities and redeemable items in Sinhala/Tamil/English with clear symbols or pictures for each item

Establishing the reconstruction earning and spending menus

The initial menus of desirable activities and redeemable items to encourage participation in psycho-social programmes will be established by the coordinating agency, social movement or NGO according to an analysis of typical needs in a disaster situation. Further items can be added to the menus in negotiation with participants as the situation evolves

Reconstruction Currency Standard Earning Menu

NOTE: None of the following activities are assumed to be gender specific. However, local cultural sensitivities around gender roles should be respected.

Physical labour
• clearing rubble
• building shelters
• digging
• driving
• maintaining toilets
• distributing food and medicines
• rubbish disposal and recycling
• sorting aid supplies

Domestic activities
• food preparation and cooking
• childcare
• healthcare
• visiting traumatized and injured

Educational activities
• teaching
• mentoring
• attending training sessions in: nutrition, food preparation, personal hygiene, camp maintenance, sexual health

Psychological, social and spiritual activities
• attend counseling sessions
• organize entertainment, play and sports
• organize meditation, prayer, worship

Management
• camp management
• counting and listing needs
• translation services
• planning for reconstruction
• inventory record maintenance for aid supplies

Reconstruction Currency Standard Spending Menu
Items to be funded by aid agencies
• seeds
• tools
• building materials
• toys
• clothes
• cooking pots
• utensils
• furniture
Other redeemable items
• any services offered by other camp residents on the earning menu

Proposed pilot project

It is recommended that the idea is piloted with a smaller refugee camp of, say, 1000 families and the progress carefully monitored and evaluated by a responsible agency.