mitigation of natural disasters

8/4/2019 Mitigation of Natural Disasters

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A. Description of the issue

According to the 2008 World Disasters Report,natural disasters in 2007 affected more than 200

million people, a 40% increase over 2006.1 Themajority of those affected live in the developing

world. Major natural disaster events can causegreat human and material damage and thus setback economic development in the most vulnerable countries by years.

According to the same report, natural disasters in 2007 inflicted a worldwideeconomic cost of nearly US$ 63.5 billion. The economic damage caused by the2008 Sichuan earthquake is estimated to range between US$ 20-75 billion.

Poor countries are often the most affected by disasters. But when they occur indeveloped countries where the concentration of value is high, economic

consequences can be much more severe, as illustrated in 2005 when hurricaneKatrina hit the United States; this catastrophe remains the most costly disaster in

the history of insurance.2 The mitigation of natural disasters may involve puttingadvanced early-warning systems in place, introducing better risk assessmentmethodologies, understanding key interested parties risk perceptions anddecision processes, investing in protective measures for property andinfrastructure, providing adequate financial coverage and preparing leaders torespond to extreme events.

Although focused on natural calamities, the Council seeks to identify operationaland leadership principles for preventing, mitigating and responding to a host oflarge-scale risks ranging from climate change and international terrorism tofinancial crises and governance failures.

1.125 | Summit on the Global Agenda

Mitigation of Natural Disasters

Environment & Natural Resources


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B. Dimensions

Guiding principles: Creating guiding principles will provide a frameworkfor taking actions to reduce global risks from natural disasters. Theyshould also be relevant to other large-scale risks, whether from climatechange, terrorism, financial crises or governance failures.

Linking pre-disaster measures with post-disaster measures: The

development of early warning systems, the preservation and effectivemanagement of eco-systems, investment in loss reduction measures forproperty and infrastructure, and provision for financial protection throughinsurance-type mechanisms are needed. Many countries lack theresources to effectively monitor disasters and invest in these measures.What lessons can be learned from developed nations to assist developingcountries?

Climate change and natural disasters: We need to better understandwhat scientists can tell us about the relationship between climate change

and future losses from natural disasters and the degree of uncertaintysurrounding the models they have developed. What steps should be takennow?

Innovative risk management strategies: Strategies for reducing risksfrom natural disasters that can be utilized in other contexts through public-private partnerships should be proposed and examined. These strategieswould be guided by the current institutional arrangements of the countryunder consideration and the decision processes of the relevant interestedparties.

Education: Education on responses to natural disasters can greatlymitigate their damage. How can the experience of countries with effectiveeducation programmes best be applied to other nations?

Emergency management/disaster relief/humanitarian assistance in

countries hit by natural disasters: Large-scale disasters can greatlystretch domestic and international relief organizations. How shouldcountries best integrate and coordinate their own efforts with those ofdonors?

Business response to natural disasters: Natural disasters often forcethe mass movement of people, and developing countries may faceparticularly costly recovery and reconstruction processes.3 Business firmscan play an important role in helping rebuild post-disaster communities.What skills, expertise and resources can they provide domestic andinternational organizations?

Crisis leadership: What do public, private and NGO leaders need toknow about risk assessment, behavioural biases, decision-rules, and theirpersonal and organization leadership to prevent, prepare for and respond

to natural disasters?1 IFRC, World Disasters Report, 20082 Katrina damage estimate hits $125B, 9 Sept. 2005, http://www.usatoday.com/money/economy/2005-09-09-katrina-damage_x.htm3The UNHCR estimates that in 2007 the number of people uprooted as a result of natural disasters,conflict, food shortages and other causes reached 67 million.




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List of MembersCo-Chairs

*Howard Kunreuther, Cecilia Yen Koo Professor of Decision Sciencesand Public Policy, The Wharton School, University of Pennsylvania, USA

*Michael Useem, Professor of Management and Director, Center forLeadership and Change Management, The Wharton School, University ofPennsylvania, USA

Members

*Sean M. Cleary, Chairman, Strategic Concepts, South Africa

*Arnold Howitt, Executive Director, Ash Institute for DemocraticGovernance and Innovation, John F. Kennedy School of Government,Harvard University, USA

*Bridget M. Hutter, Director, Centre for Analysis of Risk and Regulation,

London School of Economics and Political Science, United Kingdom*Herminia Ibarra, The Cora Chaired Professor of Leadership andLearning and Professor of Organisational Behaviour, INSEAD, France

*Michel Jarraud, Secretary-General, World Meteorological Organization(WMO), Geneva

Haruhiko Kuroda, President, Asian Development Bank, Manila

*Herman Leonard, Professor of Public Management, John F. KennedySchool of Government, Harvard University, USA

*Thomas E. Lovejoy, President, The H. John Heinz III Center forScience, Economics and the Environment, USA

*Erwann Michel-Kerjan, Managing Director, Center for RiskManagement and Decision Processes, The Wharton School, University ofPennsylvania, USA

Markku Niskala, Secretary-General Emeritus, International Federation ofRed Cross and Red Crescent Societies (IFRC), Geneva

*Kristine Pearson, Chief Executive, Freeplay Foundation, UnitedKingdom

*Detlof von Winterfeldt, Professor, Daniel J. Epstein Department ofIndustrial and Systems Engineering, University of Southern California(USC), USA

mitigation of natural disasters

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