The economic impact of the devastation caused by the earthquake and tsunamis in South Asia is now literally and figuratively in the open.

Clearly the impact is staggering and the fund needed to rebuild the communities is also huge (it currently runs into billions of dollars). The problems brought about by this disaster such as unemployment and poverty will certainly not be solved in a few years. Millions of people in the area will experience difficulties for a long time.

A comprehensive rehabilitation plan for each country has to be set up so that, for instance, those who are going to give aid will be convinced of the need and impact of their assistance.

Paying for the funds that will be borrowed will be a big problem even after the infrastructure is restored. The developed countries will have to provide markets for products from these areas because their own domestic markets will be weak.

However, since these areas are underdeveloped, then the aid will have significant effects on income and employment particularly if viewed over the long-term. Thus, giving their governments the capability to pay the borrowed funds.

The economic situation in the damaged areas is very similar to ours – mainly agri-based with some eco-tourism. They also have internal political problems such as those existing in our region. The kind of rural development strategies they will implement are similar to ours – with a focus on job creation in the agriculture sector.

This is a situation when good planning is needed to address a disaster situation. Without proper planning the resources will just be wasted or misused.

When disaster strikes, those affected have to respond in a manner that will improve their lives. In this sense, the active involvement of the communities is essential to success.