The Interlinkages between Natural Disasters and Economic Development
The Interlinkages between Natural Disasters and Economic Development
This chapter provides an analysis of the interaction between natural disasters and human development. It provides a decomposition of the channels through which “human made disasters with a natural trigger” affect long term growth. It categorizes countries by level of exposure and investigates the approaches which can prevent a vicious cycle between natural disasters and low development. Among highly exposed countries, sustainable development needs to go hand in hand with an increase in resilience through both preparedness and mitigation. The chapter highlights the potential of an adaptive capacity at the institutional level, economic diversification, flexibility in aid disbursement, the use of index micro-insurances, and sustainable agriculture.
Keywords: Natural disasters, Resilience, Mitigation, Preparedness, Poverty trap, Micro-insurance
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