Higher Losses and Slower Development in the Absence of Disaster Risk Management Investments

Bangalore, Mook; Hallegatte, Stephane; Jouanjean, Marie-Agnes

Higher Losses and Slower Development in the Absence of Disaster Risk Management Investments

Autores

Bangalore, Mook

Hallegatte, Stephane

Jouanjean, Marie-Agnes

Editor

World Bank, Washington, DC

Descripción

Global economic losses from natural disasters continue to increase. Yet, investments in disaster risk management are not universal, as they are traditionally seen as in competition with other development and economic priorities. The multitude of benefits from disaster risk management investments are not traditionally accounted for in cost-benefit analyses. This paper contributes to this discussion by highlighting the multiple benefits from disaster risk management investments, focusing on the avoided losses when a disaster occurs, but also on the impacts on economic development even before a disaster strikes. The paper's main message is that disaster risk management investments can provide two dividends: reduced losses when a disaster strikes, and a shift of investment strategies and perhaps even an increase in investment value that would benefit the economy even before a disaster strikes. Providing evidence to policy makers and investors about the existence of both types of dividends can provide a narrative reconciling short-term and long-term objectives, thereby improving the acceptability and feasibility of disaster risk management investments.

Palabras clave

FLOODING, RISKS, CATASTROPHIC LOSSES, ECONOMIC GROWTH, STORM, PRODUCTION, EARLY WARNING, RISK REDUCTION, VALUATION, WIND SPEED, INCOME, INTEREST, SUSTAINABILITY, STORMS, INFORMATION, EXPORTS, NATURAL CATASTROPHES, HEALTH CARE, WELFARE, INCENTIVES, FLOOD PROTECTION, DISASTER, DAMAGES, INPUTS, PAYMENTS, WEALTH, SOCIAL ASSISTANCE, SAVING, RISK AVERSE, INFLATION, EVACUEES, EARTHQUAKES, EXTREME WEATHER, HURRICANES, CATASTROPHES, AGRICULTURAL PRACTICES, DEVELOPMENT, PER CAPITA INCOMES, INFLUENCE, TOTAL FACTOR PRODUCTIVITY, SAVINGS, DISASTER-PRONE COUNTRIES, TSUNAMI, COSTS, DEVELOPMENT ECONOMICS, NATURAL DISASTER, MORAL HAZARD, FLOODS, EARLY WARNING SYSTEM, PRODUCTIVITY, INTEREST RATES, EXTERNALITIES, NATURAL HAZARD, FAILURES, NATURAL DISASTERS, DEBT, MARKETS, LAHARS, RATES, DISASTERS, DIVIDENDS, FARMERS, FAMINE, INVENTORIES, UTILITY, LIGHTING, INVENTORY, FOOD AID, WEALTH CREATION, PREVENTIVE ACTION, FLOOD INSURANCE, UNEMPLOYMENT, TECHNOLOGY, REINSURANCE, EXTERNALITY, PRODUCTIVITY GROWTH, DROUGHTS, CONSUMPTION, ECONOMIC PRIORITIES, HUMAN CAPITAL, TROPICAL CYCLONE, EMERGENCY, EARTHQUAKE, DISASTER REDUCTION, CAPITAL, DISASTER RISK, CLIMATE CHANGE, DROUGHT, INTERNATIONAL TRADE, VALUE, ECONOMIC VALUE, COMPETITIVENESS, LOSSES, BANK, EXTREME EVENTS, MACROECONOMICS, PATENTS, DEMAND, MICROINSURANCE, UTILITY FUNCTION, RISK EXPOSURE, PRODUCTIVE ASSETS, ECONOMY, CONSUMERS, AGRICULTURE, DAMAGE, IMPACT OF DISASTERS, DISASTER INSURANCE, WEATHER DISASTERS, OPPORTUNITY COSTS, ASSETS, DISASTER MANAGEMENT, WARNING SYSTEM, EXPLOSION, FLOOD, ECONOMIC SITUATION, REGULATION, ECONOMICS, RECIPROCITY, ECONOMIC SYSTEMS, INSURANCE, SLUMS, LOSS, TRADE, ECONOMIC INTEGRATION, GDP, GOODS, THEORY, GROWTH RATE, WAR, HURRICANE, INVESTMENT, NATIONAL EMERGENCY, TOTAL FACTOR PRODUCTIVITY GROWTH, RISK, UNINSURED LOSSES, MITIGATION, POSITIVE EXTERNALITIES, TROPICAL CYCLONES, FATALITIES, RISK TAKING, DISASTER RISK REDUCTION, RISK MANAGEMENT, UNDERESTIMATES, FINANCIAL RISK, EXTREME WEATHER EVENTS, INSURANCE COMPANIES, RISK AVERSION, EVACUATION, WEATHER EVENTS, TECHNOLOGIES, OUTCOMES, MARGINAL UTILITY, GROWTH POTENTIAL, NATURAL HAZARDS, RECONSTRUCTION, BENEFITS, RISK MITIGATION, RISK ANALYSIS, DEVELOPMENT POLICY