Financing Naval Support for Humanitarian Assistance and Disaster Response: An Analysis of Cost Drivers and Cash Flows

Abstract

The United States Department of Defense (DoD) does not budget for contingencies. The DoD does not set aside funds in the expectation of war, disaster, or other unexpected catastrophe, where obligation of those funds is contingent on the event actually occurring. This includes budgeting ahead for possible humanitarian assistance and disaster response (HA/DR) operations. Stability operations are now a core U.S. military mission, and HA/DR is one of six expanded core capabilities for the Navy, Marine Corps, and Coast Guard enumerated in A Cooperative Strategy for 21st Century Seapower. This represents a monumental strategic shift for an establishment traditionally defined by hard-power assets. This thesis uses a disaster categorization method based on the size of the area affected and the speed of disaster onset and employs a multiple, flexible design case study method that analyzes incremental cost data from the responses to the 2004 Indian Ocean tsunami, the 2010 Haiti earthquake, and the 2010 Pakistan floods. Costs are analyzed for both their timing and the associated functional service provided and are presented in graphical format. Despite the variety of HA/DR operations and the common belief that every disaster is different, this research identifies similarities in cost timing and function that exist across three of the four types of disaster. These findings provide insight into expected future demand and highlight the functions that represent the greatest leverage points for future optimization.