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The Economics of Disaster: Reduction, Mitigation and Mainstreaming
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Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust Storms
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Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsDust and Sand Storms
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Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsEarthquakes
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Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsTornadoes & Storms
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Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsHigh Winds
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Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsFloods
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Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsDrought
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Natural HazardsEarthquakesVolcanic ActivityLandslidesTsunamisTropical CyclonesSevere StormsTornadoesHigh WindsRiver FloodsCoastal FloodsWildfiresDroughtSand StormsDust StormsLandslides
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Natural HazardsHave the Potential to Cause Harm or Loss
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Natural DisastersThe Occurrence of a Natural Hazard That Causes Substantial Damage & Disruption
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Vulnerability to Disasters
The degree to which society is threatened
Results from human action
Results from situations, i.e. poverty
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Degree of Vulnerability Depends On:Existing Infrastructure
Condition of Human Settlements
Public Policy and Disaster Management
Information and Education
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Consequences of Vulnerability
Significant Loss of Life
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Consequences of Vulnerability
Damage to Infrastructure
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Consequences of Vulnerability
Economic Loss
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Consequences of Vulnerability
Poverty
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What Can Be Done?Disaster Reduction
Prevention
Mitigation
Preparedness
Mainstreaming
Disaster Strategies
Risk Management
Economic Management
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Disaster Reduction Measures undertaken to reduce the vulnerability of a socio-economic system to natural disasters
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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
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Disaster ReductionPreventionPlanningAvoidance measuresZoning
PreparednessEffective evacuation systemRegular testing of warning systems
MitigationRetrofitting existing buildingsFlood-control measuresTrainingLegislation
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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
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EMPHASIS IS CHANGED
DISASTER RISK RESPONSE MANAGEMENT
SUSTAINABLE DEVELOPMENT
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MainstreamingConsiders risks when planning development
Considers risks when allocating financial resources
Sustainability
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Disaster StrategiesInfrastructure Design roads, utilities, health facilities, schools
Retrofitting Existing Structures
Siting of buildings and infrastructure
Building codes and regulations
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Risk ManagementEducation of the public and government officialsEffective disaster managementImproving vulnerability factors:
Reforesting, improving soil conditions, sustainable human settlements
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Economic ManagementDisaster Contingency PlansDeclining aid/Increasing lossesAnnual Calamity FundsWhen disaster occurs regularlyFinancial Risk Transfer InstrumentsConventional insurance, reinsurance, derivatives
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Reallocation of Public ResourcesPolicy FrameworkCareful planning minimizes delaysMinimizes disruptionDeveloped prior to disaster = rapid responsePrioritized Investment ProjectsAllows for reallocations away from lower-priority projects
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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
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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
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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.
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Climate Change is Real
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Effect of Climate ChangeIncreasing TemperaturesDecrease in Snow CoverRetreat of GlaciersRising Sea-levelsDiminishing Water FlowsFrequent and Intense Rainfall
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Effect of Climate ChangeIncreased FloodingIncreasing Direct and Indirect Costs Human Lives at RiskSevere Property DamageDisrupted ServicesHuman Suffering
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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
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