The Economics of Disaster: Reduction, Mitigation, and Mainstreaming

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An overview of consequences of natural disaster and methods to reduce vulnerability. Risk management, mitigation, and preparedness through risk mapping and infrastructure design are highlighted.

An overview of consequences of natural disaster and methods to reduce vulnerability. Risk management, mitigation, and preparedness through risk mapping and infrastructure design are highlighted.

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  • 1. The Economics of Disaster: Reduction, Mitigation and Mainstreaming
  • 2. Natural Hazards Earthquakes Volcanic Activity Landslides Tsunamis Tropical Cyclones Severe Storms Tornadoes High Winds River Floods Coastal Floods Wildfires Drought Sand Storms Dust Storms
  • 3. Natural Hazards Earthquakes Volcanic Activity Landslides Tsunamis Tropical Cyclones Severe Storms Tornadoes High Winds River Floods Coastal Floods Wildfires Drought Sand Storms Dust and Sand Storms Dust Storms
  • 4. Natural Hazards Earthquakes Volcanic Activity Landslides Tsunamis Tropical Cyclones Severe Storms Tornadoes High Winds River Floods Coastal Floods Wildfires Drought Sand Storms Earthquakes Dust Storms
  • 5. Natural Hazards Earthquakes Volcanic Activity Landslides Tsunamis Tropical Cyclones Severe Storms Tornadoes High Winds River Floods Coastal Floods Wildfires Drought Sand Storms Tornadoes & Storms Dust Storms
  • 6. Natural Hazards Earthquakes Volcanic Activity Landslides Tsunamis Tropical Cyclones Severe Storms Tornadoes High Winds River Floods Coastal Floods Wildfires Drought Sand Storms High Winds Dust Storms
  • 7. Natural Hazards Earthquakes Volcanic Activity Landslides Tsunamis Tropical Cyclones Severe Storms Tornadoes High Winds River Floods Coastal Floods Wildfires Drought Floods Sand Storms Dust Storms
  • 8. Natural Hazards Earthquakes Volcanic Activity Landslides Tsunamis Tropical Cyclones Severe Storms Tornadoes High Winds River Floods Coastal Floods Wildfires Drought Sand Storms Drought Dust Storms
  • 9. Natural Hazards Earthquakes Volcanic Activity Landslides Tsunamis Tropical Cyclones Severe Storms Tornadoes High Winds River Floods Coastal Floods Wildfires Drought Sand Storms Landslides Dust Storms
  • 10. Natural Hazards Have the Potential to Cause Harm or Loss
  • 11. Natural Disasters The Occurrence of a Natural Hazard That Causes Substantial Damage & Disruption
  • 12. Vulnerability to Disasters • The degree to which society is threatened • Results from human action • Results from situations, i.e. poverty
  • 13. Degree of Vulnerability Depends On: • Existing Infrastructure • Condition of Human Settlements • Public Policy and Disaster Management • Information and Education
  • 14. Consequences of Vulnerability Significant Loss of Life
  • 15. Consequences of Vulnerability Damage to Infrastructure
  • 16. Consequences of Vulnerability Economic Loss
  • 17. Consequences of Vulnerability Poverty
  • 18. What Can Be Done? Disaster Reduction Mainstreaming • Prevention • Disaster Strategies • Mitigation • Risk Management • Preparedness • Economic Management
  • 19. Disaster Reduction Measures undertaken to reduce the vulnerability of a socio-economic system to natural disasters
  • 20. Definitions • Disaster Reduction – measures designed to avoid or limit adverse impacts through: • Prevention – avoidance of the adverse impact • Mitigation – measures taken to limit the adverse impact • Preparedness – measures taken in advance to ensure effective responses
  • 21. Disaster Reduction Prevention Mitigation • Planning • Retrofitting existing • Avoidance measures buildings • Zoning • Flood-control measures • Training Preparedness • Legislation • Effective evacuation system • Regular testing of warning systems
  • 22. Risk Mapping • Mapping the community or area of risk • Includes schools, hospitals, churches, fire stations, police stations, municipal buildings • Shows hazardous buildings • Uses distinctive symbols • May include significant infrastructure and disaster prone features
  • 23. EMPHASIS IS CHANGED DISASTER RISK RESPONSE MANAGEMENT SUSTAINABLE DEVELOPMENT
  • 24. Mainstreaming • Considers risks when planning development • Considers risks when allocating financial resources • Sustainability
  • 25. Disaster Strategies • Infrastructure Design – roads, utilities, health facilities, schools • Retrofitting Existing Structures • Siting of buildings and infrastructure • Building codes and regulations
  • 26. Risk Management • Education of the public and government officials • Effective disaster management • Improving vulnerability factors: Reforesting, improving soil conditions, sustainable human settlements
  • 27. Economic Management • Disaster Contingency Plans – Declining aid/Increasing losses • Annual Calamity Funds – When disaster occurs regularly • Financial Risk Transfer Instruments – Conventional insurance, reinsurance, derivatives
  • 28. Reallocation of Public Resources • Policy Framework – Careful planning minimizes delays – Minimizes disruption – Developed prior to disaster = rapid response • Prioritized Investment Projects – Allows for reallocations away from lower-priority projects
  • 29. Reallocation of Public Resources • Current and Reliable Information – Availability of Resources – Information on financial status of agencies – Financial impact on planned spending and revenue as a result of disaster – New revenue requirements as a result of disaster
  • 30. Understanding Economic Vulnerability • Macroeconomic Risk Assessment – National – Understanding linkages overall – Minimizing adverse impacts on priority areas – Protecting the poor; Poverty reduction caused by disaster • Regular Re-assessment of Hazard Risk – Needs change due to rapid growth and development
  • 31. Understanding Economic Vulnerability • Improved Impact Assessment – Future risk reductions – Better management – Understanding of public costs for future initiatives • Improved Documentation of Expenditures – Provides better information on required spending for mitigation and preparedness.
  • 32. Climate Change is Real
  • 33. Effect of Climate Change • Increasing Temperatures • Decrease in Snow Cover • Retreat of Glaciers • Rising Sea-levels • Diminishing Water Flows • Frequent and Intense Rainfall
  • 34. Effect of Climate Change • Increased Flooding • Increasing Direct and Indirect Costs • Human Lives at Risk • Severe Property Damage • Disrupted Services • Human Suffering
  • 35. Resources • ISDR (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