Introducing PEARL

Abstract

Purpose – The need in disaster response to assess how reliably and equitably funding was accounted for and distributed is addressed by a standardized report and index applicable to any disaster type. The paper aims to discuss this issue. Design/methodology/approach – Data from the Nepal earthquake (2015), Typhoon Haiyan (2013), the Haiti earthquake (2010), Sri Lankan flood (2011), and Hurricane Sandy (2012) illustrate uses of a public equitable allocation of resources log (PEARL). Drawing from activity-based costing and the Gini index, a PEARL spreadsheet computes absolute inequity sector by sector as well as a cumulative index. Response variations guide index value interpretation. Findings – Index values indicates major inequity in Nepal hygiene kit distribution and Haiti earthquake (both PEARL indices near 0.5), moderate inequity for the Sri Lankan flood (index roughly 0.75) and equitable distributions for Typhoon Haiyan and Hurricane Sandy (both indices approximately 0.95). Indices are useful to approximate proportions of inequity in the total response and investigate allocation under uncertainty in sector need specification. Originality/value – This original tool is implementable using a website containing a practice PEARL, completed examples and downloadable spreadsheet. Used across multiple sectors or for a single sector, PEARL may signal need for additional resources, correct inequitable distribution decisions, simplify administrative monitoring/assessment, and foster greater accounting transparency in summary reports. PEARL also assists historical analysis of all disaster types to determine completeness of public accounting records and equity in fund distribution.