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Mongolia is currently experiencing a white "dzud" – a multiple natural disaster consisting of a summer drought resulting in inadequate pasture and production of hay, followed by very heavy winter snow, winds and lower-than-normal temperatures. Dzuds occur when the winter conditions – particularity heavy snow cover – prevent livestock from accessing pasture or from receiving adequate hay and fodder. 

The President of Mongolia, Elbegdorj Tsakhia, sat at the table behind a Greek salad. We were at a lunch hosted by the Corporate Governance Development Center, an NGO which brings international best practices in corporate governance to Mongolia. Also present were the Minister of Education, the Director of the Financial Regulatory Commission (FRC), the Deputy Chief of Party of the USAID-funded Economic Policy Reform and Competitiveness Project (EPRC), which helped to establish the Center with the Institute of Finance and Economics, and CEOs of leading Mongolian firms. Several International Finanace Corporation (IFC) clients were among them.

The salad looked delicious, but it would have to wait. President Elbegdorj was speaking about the role of corporate governance in Mongolia. "Corporate governance is important for Mongolia's competitiveness," he said. I was delighted. I've been waiting a long time for this moment.

In Indonesia, a national disaster management agency was set up in 2008 to serve as a guardian of disaster risk management. The agency's important role was clear in the aftermath of a West Sumatra earthquake in 2009.

The unprecedented earthquake in Haiti and the massive destruction it caused reminds me of the significant destruction that resulted after the Aceh tsunami five years ago. The Haiti earthquake hit the country’s capital, Port-au-Prince, which is the center of government and economic activities.

The combination of enormous damage on facilities and infrastructure, the collapse of the national government function, and the lack of preparedness and experience make it inevitable that the people of Haiti will rely on the international community for guidance and coordination. This situation is different from what happened in Aceh after the 2004 tsunami. At that time, although the devastation was also severe and affected a large part of Aceh, it did not affect the country’s capital city. The Government of Indonesia, which is located in Jakarta, remained fully functional and was able to coordinate the emergency response, disaster assessment, and reconstruction effort that followed. The government was also able to set up reconstruction agency in only a matter of months after the disaster.

A collapsed building in Port-au-Prince. Photo by IFRC/Eric Quintero under a Creative Commons license.

The scale and magnitude of the earthquake in Haiti has shocked, saddened and horrified us all. But there is a silver lining to this great tragedy. Looking back in history, great natural disasters are often a catalyst for huge, positive change.

The great fire of London in 1666 led to a massive rebuilding effort, better building regulations and, in the end, a safer, cleaner city that maintained the medieval street plan that is still visible, to some extent, today. The Wall Street Journal has an interesting discussion of how the impact of the 1755 earthquake in Lisbon led to the creation of a new metropolis with earthquake-proof buildings, wide thoroughfares and a sewer system. The massive reconstruction financing required after the great fire of Copenhagen of 1795 led to the creation, in 1797, of Kreditkassen for Husejere i Kjøbenhavn (The Credit Association of Copenhagen homeowners), the precursor of modern mortgage markets.