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Manual for Hydro-Climatic Disasters in Water Resources Management

Manual for Hydro-Climatic Disasters in Water Resources Management

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Published by Wangai Ndirangu

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Published by: Wangai Ndirangu on Mar 01, 2010
Copyright:Attribution Non-commercial

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05/06/2012

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In hazard-prone areas and countries, development potential may be depressed
as a result of increased public expenditure on disaster mitigation.

Disasters can also cause potential declines in revenue due to reduced economic
activity as well as any losses incurred by actual disaster events. This serves to
exacerbate inequalities in economic development.

Disaster proneness may act as a disincentive to new investors, particularly during
reconstruction when perceptions of hazard risks are heightened and the
economy is unstable.

Disasters reduce government’s ability to invest in developmental projects through
lowering the tax base as a result of development opportunities foregone and
production failures, and the additional burdens of hazard mitigation and
preparedness, relief and reconstruction. Another aspect to consider is that
development can itself heighten disaster risk or economic vulnerability.

Serious threats to long-term development result from the reallocation of
expenditure that occurs following a disaster. Ad hoc re-assignment of funds
become frequent if not routine in disaster-prone countries, and even if funds are
well used for disaster reconstruction, a sudden, unplanned reallocation can
destabilise or sacrifice longer-term development objectives.

Responding to disasters also undermines
budgetary planning, investment confidence and
interrupts ongoing projects and reduces the
abilities of communities and governments to
pursue long term development goals.

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