What is required for recovering from disaster: Theoretical and empirical verification

The Great East Japan Earthquake, which occurred on March 11, 2011, had a magnitude of 9.0. The massive tsunami that followed caused extensive damage in coastal districts, resulting in 19,747 deaths and 2,556 missing persons. In terms of reconstruction, there are three main areas of focus: 1) support for the disaster victims (the number of evacuees has been reduced from 470,000 to 43,000 by responding in detail to issues that arise as reconstruction progresses), 2) reconstruction of homes and towns (housing reconstruction is progressing steadily, with most of the construction work completed; the relocation of housing areas to higher ground and the construction of public disaster housing is expected to be completed in FY2020), and 3) revitalisation of industries and livelihoods (production facilities have been mostly restored, production levels in the three affected prefectures have largely recovered, and support for tourism promotion is underway but is currently difficult due to COVID-19). This study examines the necessary and sufficient conditions for proceeding with this recovery, restoration, and revitalisation from an economic theoretical perspective and from public procurement data empirically, exploring their applicability in the post-COVID-19 world. Demand control measures are the first necessary condition to recover from significant damage, including that to infrastructure. Besides, supplier support measures are a sufficient condition to provide more effective and efficient construction services. As a tentative conclusion, an analysis of Japan's public procurement data shows that short-term demand-boosting measures have worked well. However, medium- and long-term supply stimulus measures need further efforts. In Japan, these practices are being applied in response to COVID-19. Specifically, it emphasizes productivity improvement through partnering and the use of new technologies.