Hazards, Disasters And Your Community - United Nations ...

CHAPTER 11
EFFECTS OF NATURAL HAZARD ON ECONOMY &
DEVELOPMENT
700
Earthquake, Gujarat
26 Jan 2001, 13805
lives lost
Tsunami, 26 Dec 2004,
more than 10000 lives lost
Losses in US dollars (2002 values)
Locations of some major Natural Disasters in India
600
500
400
300
While no country in the world is entirely
safe, lack of capacity to limit the impact of
hazards remains a major burden for
developing countries. An estimated 97% of
natural disaster related deaths each year
occur in developing countries and, although
smaller in absolute figures, the percentage
of economic loss in relation to the Gross
National Product (GNP) in developing
countries far exceeds the ones in developed
countries.
Natural disasters are a potentially serious
shock to an economy. The United Nations
estimated the total cost of disasters
worldwide during the 1980s at $120 billion
(in constant (1990) US dollars). Moreover,
there is clear evidence of a rising trend, with
total costs increasing from $70 billion in the
1970s and $40 billion in the 1960s.
These figures are typically based on only
the direct, visible, financial impacts of a
disaster such as damage to homes,
hospitals, schools, factories, infrastructure
and crops.
The true costs of disasters, taking into
account less quantifiable effects such as the
loss of personal belongings or jobs, widening
trade or government budget deficits, or the
increasing scale & depth of poverty, are
even higher.
200
100
0
1950-1959 1960-1969 1970-1979 1980-1989 1990-1999
Source: Munich Re
VULNERABILITY
Vulnerability to disasters is a function of
human action and behavior. It describes
“ t o w a r d s s a f e r I N D I A ” 51
Economic Losses due to Natural Disasters from 1950 -2000