Saturday, March 16, 2013

Economics of natural disasters

My recent trips to the Philippines made me discover a new part of the world but also opened my eyes on natural disasters. In the Philippines, one should live far from the beach because of the tsunami, somewhere is the valleys to be protected from typhoons, but also not too near to the rivers to avoid flooding. Not talking of earth quake which could happen everywhere... So one is left with living on the slope of a volcano, which activity seems at least for now to be minor :-S.

I just found an interesting video from Aljazeera on the effect of natural disaster on the economy : It discusses that the problem is not only the extreme event, but the effect of the event is much bigger due to the lack of natural resource management such as forests in rural area. Furthermore urbanization leads more people to cities. The poor have to move to the areas where cheaper land which is located in higher risk zones. As the poor also live more densely, a disaster will touch more people and the poorer ones...

Have a look at this interesting movie!

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