Social and economic impacts of natural disasters

Economic and social development throughout the world is frequently interrupted by extreme events. The Pacific Rim is particularly vulnerable to natural disasters, thus to social and economic losses. Although disaster events impact both developed and developing countries, in the latter, they can cause a sharp increase in poverty. As disasters pose an important challenge to the development of the Pacific Rim, it is important to assess their global, regional, economic, and social impacts. Most economic assessments of the impacts of disasters have concentrated on direct losses-that is, the financial cost of physical damage. Equally important are indirect and secondary impacts of disasters, including the destruction of communities and their negative impacts on families. The challenges posed by potential disasters in the Pacific Rim countries require rapid action, and also an energetic risk-management strategy. To help reduce those negative impacts, countries need an overall evaluation of their risks, including: (i) risk identification, (ii) risk reduction, and (iii) risk transfer. It is expected that concerted action on risk management will help create an increased awareness of the economy-wide significance of natural disaster,, and the problems they pose for long-term development. Accordingly, this growing awareness will lead to an increased resilience in the countries of the Pacific Rim.