Progress: In Banda Aceh, Indonesia, a woman and her child have a new home.
Progress: In Banda Aceh, Indonesia, a woman and her child have a new home.
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  • Progress: In Banda Aceh, Indonesia, a woman and her child have a new home.
  • In Madras, India, A. Muttama and her husband, who lost three children, have a new apartment.
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In tsunami-affected countries, governments and individuals stay focused on the future

An unprecedented $13.6 billion in aid has boosted rebuilding, but political and economic challenges remain three years later.

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Reporter Simon Montlake is optimistic about the aftermath of the Tsunamis and the steady rebuilding process.

To avoid a post-aid bump, planners in Aceh are looking to investors to help revive a private economy that was based on agriculture, fishing, and revenues from a depleted gas field operated by ExxonMobil. But investors are waiting for signs that a landmark 2005 peace deal with the armed Free Aceh Movement, or GAM, that has devolved power to the province, won't sour.

The deal ended three decades of fighting and led to the demobilization of thousands of combatants and the election of a GAM member as provincial governor. Many Acehnese fear a return to conflict as GAM fighters turn to petty extortion and factions battle over the spoils of peace, warns the International Crisis Group, a Brussels-based think tank.

That view is shared by Iqbal, a farmer and drugstore owner who spent two years living in a refugee camp. "Nothing's changed," he complains. "Rebels still ask for money."

Yet such gloom overlooks the sense of renewal in Aceh, says Damien Kingsbury, an associate professor at Deakin University in Melbourne, Australia, and an adviser to GAM on peace negotiations. Acehnese are finally exercising political freedoms in a post-tsunami atmosphere of opportunity, despite hardships. "The people of Aceh appear to feel as though they have recaptured some of their pride. They have survived a devastating tsunami and a horrible and destructive war and have come out on top," he says.

A sense of renewal is also palpable in Tamil Nadu, though the pace of rebuilding is slow and dogged by controversy over where survivors should live. Of the 53,323 houses due to be built during the first phase, only 29,446 have been completed, and thousands of families are stuck in temporary relief camps.

Much of the new stock is going up away from the coast where survivors made their living. State authorities have designated a half-mile exclusion zone from the sea on grounds of safety. Some aid agencies call this a ploy to grab beachfront land for resorts and hotels.

"Removing people from their original habitation will negatively impact livelihoods of people," says Babu Matthew, director of Action Aid India. "The safety of people can be assured through better early-warning systems and other disaster risk-reduction measures."

Other countries have backed off similar proposals. In Thailand, that spurred hoteliers to rebuild resorts. The province of Phang-Nga, where foreign vacationers were among more than 8,000 dead, expects tourist income to return to pre-2004 levels within three years.

In Aceh, 100,000-plus homes have been built, along with 1,240 miles of road, 800 schools, and 600 hospitals and clinics, according to the agency BRR. But some 3,000 families still live in shelters around Banda Aceh, and some international agencies have drawn flack for building substandard houses. In areas, homes stand empty as recipients have gone elsewhere, a symbol of wasted resources.

In Sri Lanka, a government reconstruction agency has wound down operations, falling short of a target of more than 100,000 new homes. Rising military spending on the civil war is inflating prices for cement and other materials. A local newspaper reported Sunday that only $1.7 billion of $3.1 billion pledged by foreign donors had been dispersed.

Tom McCawley in Jakarta, Indonesia, and Anuj Chopra in Madras, India, contributed.

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