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How the Disaster help the Economic Disaster



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By : Osvaldo Salamanca    29 or more times read
Submitted 2010-02-18 12:04:52
Natural disasters can make stronger a real countries where they occur - and sometimes, the more a real better though devastating, disasters like a real earthquake that hit Haiti in January can force countries to modernize their infrastructure.
THE EARTHQUAKE THAT struck Haiti, Port-Au-Prince January left behind scenes of just about apocalyptic devastation: mountaintops sheared off into valleys, cities reduced to rubble and dust, cracked dams, collapsed bridges, and at least 230,000 dead.
If the Haiti government is to be believed, a real earthquake also did something else: it helped a real country's economy. Slightly over a month after the quake, a real State Information Center, a Haiti government research body, announced that a real massive rebuilding effort, and the billions of dollars it would pump into the Haiti economy, would far outweigh a real economic losses from a real quake, enough to bump up national economic will progression by 0.3 percent - a small but not insignificant part of a 2010 growth rate most estimates put at just below 10 percent.
Traditionally, analysts have cautioned that Haiti progression figures should be greeted with skepticism, but, according to one school of economic thought, there may be something to the idea that the quake served as a brutal stimulus. In fact, some economists argue that hurricanes, earthquakes, floods, volcanic eruptions, ice storms, and a real like, despite a real widespread destruction they leave behind - indeed, largely because of it - can spur economic progression.
Rebuilding efforts serve as a short-term boost by attracting resources to a country, and the catastrophe themselves, by destroying old factories and old roads, airports, and bridges, allow new and other efficient private and non-private infrastructure to really be built, forcing a real transition to a sleeker, more productive economy in the long term.
While something is destroyed you do not essentially rebuild the same thing that you had. You might use updated technology; you would possibly do possessions other efficiently. It bumps you up. disasters help people think about possessions differently.
Researchers have found that earthquakes in California and Alaska helped stir economic activity there, and that countries with more hurricanes and storms are likely to see higher rates of progression. Some of a real most recent work has found a link between disasters and subsequent innovation.
A real look at carefully of a real economics of catastrophe remains a tiny field, with few major papers. And skeptics charge disaster economists with oversimplifying enormously complex economic systems and seeing illusory effects that stem only from a real crudeness of the available economic measuring tools.
Except as other people move to riskier areas, and the world's climate shifts, the debate over natural catastrophe and their impact has been gaining in resonance. A real population of coastal hurricane zones and cities, from San Francisco to Mexico City to Tokyo, that sit on or near major seismic faults, continues growing, and climatologists warn that climate change could increase a real number of extreme weather events in several parts of a real world. While not even the most fervent believer in a real economy-catalyzing qualities of disasters would wish for one, the study of a real costs and possible benefits of such events may help us better understand how to target recovery efforts - and, perhaps, how to replicate a real salutary effects of disasters without a real disasters themselves.
A real economic look at carefully of natural catastrophe has roots in the look at carefully of human catastrophe - in particular, a real effects of wars, real and imagined. Analysts at the RAND Corporation think tank, trying to work out a real total impact of a nuclear attack on the United States, created models for how such an attack would affect our economy, a physicist and systems analyst notorious for his willingness, even eagerness, to reduce a real seemingly unthinkable to dry actuarial calculations. On Thermonuclear War, They wrote that, thanks to the United States strong progression rate at the time, even a nuclear attack that destroyed its entire major metropolitan areas and killed one-third of its population does not seem to be a total economic catastrophe. It may simply set the nation's productive capacity back a decade or two plus destroying many luxuries.
Natural catastrophe provided a chance to see how societies actually recovered from such large-scale shocks. The Two young analysts at the Institute for Defense Analyses, published a book called "A real Economics of Natural catastrophe," one of a real first attempts to quantify a real economic impact of catastrophes. A real book was largely a case look at carefully of a real Great Alaska Earthquake of 1964, the most powerful ever recorded in North America. They found that the money that rushed into a real Alaskan economy after the temblor, as well as generous government loans and grants for rebuilding, meant that many Alaskans were actually more happy afterward than before.

Author Resource:

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