The Economics of Disaster: Reduction, Mitigation and Mainstreaming

*

Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust Storms

*

Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsDust and Sand Storms

*

Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsEarthquakes

*

Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsTornadoes & Storms

*

Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsHigh Winds

*

Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsFloods

*

Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsDrought

*

Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsLandslides

*

Natural HazardsHave the Potential to Cause Harm or Loss

*

Natural DisastersThe Occurrence of a Natural Hazard That Causes Substantial Damage & Disruption

*

Vulnerability to Disasters

The degree to which society is threatened

Results from human action

Results from situations, i.e. poverty

*

Degree of Vulnerability Depends On:Existing Infrastructure

Condition of Human Settlements

Public Policy and Disaster Management

Information and Education

*

Consequences of Vulnerability

Significant Loss of Life

*

Consequences of Vulnerability

Damage to Infrastructure

*

Consequences of Vulnerability

Economic Loss

*

Consequences of Vulnerability

Poverty

*

What Can Be Done?Disaster Reduction

Prevention

Mitigation

Preparedness

Mainstreaming

Disaster Strategies

Risk Management

Economic Management

*

Disaster Reduction Measures undertaken to reduce the vulnerability of a socio-economic system to natural disasters

*

DefinitionsDisaster Reduction measures designed to avoid or limit adverse impacts through:Prevention avoidance of the adverse impactMitigation measures taken to limit the adverse impactPreparedness measures taken in advance to ensure effective responses

*

Disaster ReductionPreventionPlanningAvoidance measuresZoning

PreparednessEffective evacuation systemRegular testing of warning systems

MitigationRetrofitting existing buildingsFlood-control measuresTrainingLegislation

*

Risk MappingMapping the community or area of riskIncludes schools, hospitals, churches, fire stations, police stations, municipal buildingsShows hazardous buildingsUses distinctive symbolsMay include significant infrastructure and disaster prone features

*

EMPHASIS IS CHANGED

DISASTER RISK RESPONSE MANAGEMENT

SUSTAINABLE DEVELOPMENT

*

MainstreamingConsiders risks when planning development

Considers risks when allocating financial resources

Sustainability

*

Disaster StrategiesInfrastructure Design roads, utilities, health facilities, schools

Retrofitting Existing Structures

Siting of buildings and infrastructure

Building codes and regulations

*

Risk ManagementEducation of the public and government officialsEffective disaster managementImproving vulnerability factors:

Reforesting, improving soil conditions, sustainable human settlements

*

Economic ManagementDisaster Contingency PlansDeclining aid/Increasing lossesAnnual Calamity FundsWhen disaster occurs regularlyFinancial Risk Transfer InstrumentsConventional insurance, reinsurance, derivatives

*

Reallocation of Public ResourcesPolicy FrameworkCareful planning minimizes delaysMinimizes disruptionDeveloped prior to disaster = rapid responsePrioritized Investment ProjectsAllows for reallocations away from lower-priority projects

*

Reallocation of Public ResourcesCurrent and Reliable InformationAvailability of ResourcesInformation on financial status of agenciesFinancial impact on planned spending and revenue as a result of disasterNew revenue requirements as a result of disaster

*

Understanding Economic VulnerabilityMacroeconomic Risk Assessment NationalUnderstanding linkages overallMinimizing adverse impacts on priority areasProtecting the poor; Poverty reduction caused by disasterRegular Re-assessment of Hazard RiskNeeds change due to rapid growth and development

*

Understanding Economic VulnerabilityImproved Impact AssessmentFuture risk reductionsBetter management Understanding of public costs for future initiatives

Improved Documentation of ExpendituresProvides better information on required spending for mitigation and preparedness.

*

Climate Change is Real

*

Effect of Climate ChangeIncreasing TemperaturesDecrease in Snow CoverRetreat of GlaciersRising Sea-levelsDiminishing Water FlowsFrequent and Intense Rainfall

*

Effect of Climate ChangeIncreased FloodingIncreasing Direct and Indirect Costs Human Lives at RiskSevere Property DamageDisrupted ServicesHuman Suffering

*

ResourcesISDR (N.D.) Countering Disasters, Targeting Vulnerability. International Strategy for Disaster Reduction. United Nations.ODI (2005) Aftershocks: Natural Disaster Risk and Economic Development Policy. ODI Briefing Paper, November 2005. Overseas Development Institute, London. Images accessed through Google Images

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*