Privatizing Emergency Assistance: China’s Emerging Model Eva Lerner-Lam, President Palisades Consulting Group, Inc. Prepare, Mitigate, Respond and Recover: Engineers’ Involvement with Local Disasters ASCE Committee on Critical Infrastructure November 1, 2007 Orlando, FL

Disasters are a Big Problem in China China estimates that natural and man-made disasters account for a six percent loss in Gross Domestic Product (GDP) every yearChina estimates that natural and man-made disasters account for a six percent loss in Gross Domestic Product (GDP) every year

Developing Advanced Emergency Assistance Capacity Developing Advanced Emergency Assistance Capacity China is emerging from 150 years of isolation.China is emerging from 150 years of isolation. Research & development, manufacturing and distribution capabilities, which would support civil self-rescue, are just beginning to developResearch & development, manufacturing and distribution capabilities, which would support civil self-rescue, are just beginning to develop

Innovative Base of Emergency Industry (IBEI) To promote industrial development, China has established the China Emergency Assistance Investment Co., Ltd.To promote industrial development, China has established the China Emergency Assistance Investment Co., Ltd. One example: A new, national, Innovative Base of Emergency Industry (IBEI)One example: A new, national, Innovative Base of Emergency Industry (IBEI)

IBEI will: Be global in scopeBe global in scope Develop advanced technologies and equipment for emergency assistanceDevelop advanced technologies and equipment for emergency assistance Seek joint ventures with multinational corporationsSeek joint ventures with multinational corporations

IBEI will be China’s National Center for: Production research and developmentProduction research and development Production manufacturingProduction manufacturing Production tradeProduction trade Production logisticsProduction logistics Production storageProduction storage Education and trainingEducation and training Support for industrial business and international exchangeSupport for industrial business and international exchange

IBEI Products and Services Digital rescue productsDigital rescue products Information exchange platform for emergency assistance industryInformation exchange platform for emergency assistance industry Integrated marketing platform for emergency assistance productsIntegrated marketing platform for emergency assistance products Logistics and storage platform for manufacturers and distributorsLogistics and storage platform for manufacturers and distributors Vocational education and training platformVocational education and training platform Industrial regulationIndustrial regulation Standards development and enforcementStandards development and enforcement

Future Plans for Growth IBEI will be built as a Headquarters-BaseIBEI will be built as a Headquarters-Base It will be connected to other regional, specialized Branch-BasesIt will be connected to other regional, specialized Branch-Bases

Location of Headquarters-Base Will be in the area between the fourth and fifth Ring Road of Beijing.Will be in the area between the fourth and fifth Ring Road of Beijing. 1,000,000 sq meters1,000,000 sq meters Total investment is approximately RMB 1 billion (US $133 million).Total investment is approximately RMB 1 billion (US $133 million).

IBEI Benefit Analysis Presently, China has 683 cities, 2400 countryside, nearly 80,000 communities, 25,000 villages and towns, 800,000 large-medium enterprises, 400,000 foreign enterprises, 261 coast ports, 21,000,000 meter long, 500,000 professional safeguard.Presently, China has 683 cities, 2400 countryside, nearly 80,000 communities, 25,000 villages and towns, 800,000 large-medium enterprises, 400,000 foreign enterprises, 261 coast ports, 21,000,000 meter long, 500,000 professional safeguard.

IBEI Benefit Analysis The estimated fund investment for emergency rescue equipment will beThe estimated fund investment for emergency rescue equipment will be –60,000,000 RMB(US$ 8,000,000)/city –500,000 RMB(US$ 66,667)/community –250,000 RMB(US$ 33,334)/town –500,000 RMB(US$ 66,667)/enterprise –30,000 RMB(US$ 4,000)/safeguard –5,000,000 RMB(US$ 666,667)/coast port –10,000 RMB(US$ 1,333)/pipe-line Subtotal: billion RMB(US$ 108 billion)Subtotal: billion RMB(US$ 108 billion)

First Domestic, then Global China has US$ 416 million potential exports for UN stockChina has US$ 416 million potential exports for UN stock Other private enterprise products and services for international customersOther private enterprise products and services for international customers

In Summary China seeks to enhance policies, technological equipment, production types and quality for emergency assistance by establishing the IBEI.China seeks to enhance policies, technological equipment, production types and quality for emergency assistance by establishing the IBEI. The cost effectiveness of emergency industry can be realized both from domestic market and international emergency market.The cost effectiveness of emergency industry can be realized both from domestic market and international emergency market.

In Summary Disaster and emergency events caused the huge economic loss on economic loss and spirit loss for human being.Disaster and emergency events caused the huge economic loss on economic loss and spirit loss for human being. From 1996 to 2000, the total economic loss around the world with 235 billion US dollar was paid out by disaster and emergency events.From 1996 to 2000, the total economic loss around the world with 235 billion US dollar was paid out by disaster and emergency events. Through the establishment of IBEI, the national production R&D, manufacture and circulation capability for the emergency assistance industry will be promoted rapidly, thus benefiting societies both in China and internationally.Through the establishment of IBEI, the national production R&D, manufacture and circulation capability for the emergency assistance industry will be promoted rapidly, thus benefiting societies both in China and internationally.