Credit unions played an important role in post-disaster housing reconstruction in Sri Lanka after the 2004 tsunami. As locally owned and governed cooperative financial institutions, credit unions were able to [1] choose vulnerable families to receive housing, [2] involve members in the construction process to address issues of conflict and corruption, and [3] design culturally appropriate housing that addressed water, sanitation, and land ownership challenges. While credit unions leveraged their local knowledge and networks, oversight from an objective third party was still needed to ensure transparency, quality, and adherence to realistic timelines during the reconstruction process.

1. The Role of Credit
Unions in Post Disaster
Reconstruction
Presented by Sarah Shima, Program Manager
Sustainable Disaster Relief Housing Conference
Thursday, October 27, 2011

2. Presentation Overview
• Introduction to CCA and our international development
work
• What are co-operatives?
• Sri Lankan credit unions after the tsunami
• Housing reconstruction issues
• How working with credit unions solved these issues
• The importance of working with an objective third party to
provide oversight
• Questions
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3. The Canadian Co-operative Association
• Provides leadership to promote, develop, and unite co-
operatives and credit unions for the benefit of people in
Canada and around the world.
• Over 100 years old
• Represents more than nine million co-ops and credit
union members from over 2000 organizations, including
finance, insurance, agri-food and supply, wholesale and
retail, housing, health and the service sector.
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4. CCA’s International Development Experience
• Over 60 years experience
• Expertise in finance, agriculture, and small and medium
enterprises
• Overarching themes of gender equality, climate change,
and youth
• Over 50 countries in Asia, Americas, Eastern Europe, and
Africa
• Funding from CIDA, World Bank, the Canadian Red
Cross, and various Development Banks
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5. What is a co-operative / credit union?
Seven International Co-operative Principles
1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
4. Autonomy and independence
5. Education, training, and information
6. Co-operation among co-operatives
7. Concern for community
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6. December 2004 Tsunami in Sri Lanka
• National death toll –
over 30,000
• Over one million
homeless
• USD 1.5 billion
infrastructure repairs
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7. SANASA Credit Union Movement
• Over 100 years old
• 8500 credit unions
• 850,000 members
across Sri Lanka
• Camps provided
organization, needs
identification, and gave
information to victims
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8. CCA – SANASA Project
Integrated project:
• Housing
• Micro-loans
• Livelihood training
• Risk management
and insurance
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9. Housing Reconstruction Issues
Conflict and Corruption
1. Difficult to target vulnerable populations
2. Inflated costs of materials
3. Poor quality construction
4. Bribes
5. Community conflict
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10. Housing Reconstruction Issues
Conflict and Corruption – Credit Union Solutions
Locally owned and governed, therefore:
1. Chose who received housing
2. Members involved in building
3. Construction completed by local people
4. Members had ownership of process
5. Chose to work with tsunami affected districts, not
just households.
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11. Housing Reconstruction Issues, con’t
Design Flaws
• Location
• Architecture
• Water and
sanitation
• Ownership
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12. Housing Reconstruction Issues, con’t
Design Flaws – Credit Union Solutions
• Members / owners involved in planning and
building
• Two modular house designs
• Included water and sanitation in design
• Chose families with land titles and advocated for
joint entitlement where only male heads of
households were registered.
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13. Why did Credit Unions Work?
Locally owned, democratic institutions:
• Know their members;
• Are transparent and trusted;
• Maintain considerable networks in their
communities;
• Have experience coordinating and organizing; and,
• Are fiscally responsible.
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14. Other Benefits
• Builds local capacity
• Ensures respect of
local customs and
culture
• Decreases donor
dependency
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15. But…Oversight is Still Required
• Objective 3rd party
• Unfair local customs
• Transparency
• Quality assurance
• Realistic timelines
and expectations
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17. Thank you!
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