The Initiative
After the 2001 Gujarat earthquake, AIDMI started to help disaster-affected people in 14 communities with the Bhuj Reconstruction Project by providing them with different types of relief. The subsequent suffered disasters in the region caught the need to optimise the work within these spread-out communities, through the creation of an institution that could handle further disaster risk mitigation measures leading to economic progress. As a result, the Chamber of Commerce and Industry for Small Businesses (CCISB) was born in 2004 as an initiative of the affected communities themselves.

Based on the belief that economic development remains the most effective way to reduce household vulnerability, CCISB aims to mitigate disaster risk through better livelihoods and stronger inter-community networks. By incorporating DRR into their livelihood, the beneficiaries are expected to restore their economic framework in a sustainable way. To fulfil this purpose, AIDMI plays a major role by providing full support, whether through managing the financial tools or supplying trainings.

Muliben a CCISB member benefitted from microcredit loans from the Revolving Fund over the last year.

Outcome
In order to promote entrepreneurship and capacity building, CCISB offers some important services, eight trainings on business recovery have been held. Three exposure visits were done with the aim to link tsunami-affected, and earthquake affected people from both Gujarat and Kashmir so that they can share their experiences and knowledge.

The first financial tool is the Revolving Fund, which is a microcredit loan without interest rates, targeted at economic recovery and business development. To be eligible for a loan, the applicant must be a CCISB member, come from a poor disaster-affected household and have an economically active profile. The Revolving Fund should be repaid within 12 months, although there are exceptions whenever justifiable. The proper repayment allows the beneficiary to continue to be an active CCISB member and to apply for more loans at some point later on. Reapplication occurs frequently until the beneficiary reaches the possible limit, which is currently corresponding to Rs. 10,000. This fund is therefore a subsequent step to develop restored markets, previously achieved through the Livelihood Relief Fund.

The second financial tool CCISB provides is the disaster insurance known as Afat Vimo. This is a life and non-life disaster insurance scheme for low-income beneficiaries of AIDMI's Livelihood Relief Fund. As CCISB members are also receivers of this fund, they are eligible to apply for the Afat Vimo, which currently covers 4251 members. This initiative is also explained in another chapter of this report.

The effectiveness of such devices explains the big expansion CCISB had in a short period of time: starting with barley 1200 members, it has now more than 4000 members as it has been expanded to other affected areas. This expresses new applications and a big percentage of membership renewals, showing the demand for and satisfaction with this kind of support. Considering these outcomes, CCISB has been transferred from Buhj to other disaster-affected areas of Gujarat, like Ahmedabad, where it provides secondary livelihood and shelter support to the 2002 riot victims. In addition, the Chamber of Commerce is also present in Kashmir and Tamil Nadu and is initiating its work in flood-affected Bihar.

Inclusiveness
CCISB is another effort that is fully focused on relieving the most vulnerable. Its intervention relies on a process of needs assessment, through which the poorest of the poor are prioritised. Due to CCISB's limited resources, initial relief considering shelter construction and primary livelihood is beforehand provided to those that through evaluation are considered to be the most needy. By revitalising small businesses, these communities are given the opportunity to properly recover and better prepare themselves for eventual crisis.

Lessons learned
The good practice of CCISB lies in the fact that this organisation is an initiative of the community itself, who previously lost the conditions to run their lives as they used to, but currently acquired an effective sense of ownership and empowerment. In April 2007, a review of the CCISB was carried out by AIDMI and it showed that all the 30 interviewed CCISB members now have a higher monthly income and better living standard than before8. Furthermore, disaster risk reduction proved to be incorporated into the beneficiaries' livelihood. Hence, CCISB has been revitalising local disaster-stricken markets, by creating and enhancing an inclusive economic development whose sustainability is only possible through a community-based approach.

All these outcomes contribute to CCISB being increasingly recognised as one of the key innovative and all-encompassing initiatives taken in the risk mitigation sector. However, due to the fact that its success lies in financial tools that should be applied in a sustainable approach, the dependency on funding may be a challenge. Also, Afat Vimo can imply some specific challenges, adequately.

Risk Transfer Initiatives

Including Offspring

Including Small Businesses

Risk Reduction

Knowledge Management

Disaster Response

Policy Advocacy