Summary

Research report: Two volumes that describe the economic impact of disasters in the Pacific and tools to assess the costs and benefits of Disaster Risk Management measures in the Pacific.

Description

Authors: Emily McKenzie Resource Economist, South Pacific Applied Geoscience Commission; Dr. Biman Prasad Associate Professor & Head of Economics Department, University of the South Pacific Team leader; Atu Kaloumaira Disaster Risk Management Advisor, South Pacific Applied Geoscience Commission.

This report describes the findings of a research project examining 'The Economic Impact of Natural Disasters on Development in the Pacific', which was undertaken between October 2004 and April 2005. The research was commissioned and funded by AusAID. It was jointly conducted by the South Pacific Applied Geoscience Commission (SOPAC) and the University of the South Pacific (USP).

Volume 1 contains the Research Report, while Volume 2 contains the practical guide for estimating the direct, indirect and macroeconomic impacts of natural disasters, both in the short and long term, on development in the Pacific.
The first phase of the project involved development of a framework to assist decision-making on the efficient and effective allocation of resources for Disaster Risk Management (DRM). Two tools were developed. First, a set of guidelines was compiled for estimating the economic impact of natural disasters on development in the Pacific. Second, a toolkit was developed for assessing the costs and benefits of DRM measures in the Pacific.

In the second phase of the project, using the methodology developed in the guidelines and toolkit, the research team used data available in Fiji, Niue, Tuvalu and Vanuatu to assess the economic impact of a selection of natural hazards on particular sectors, and the impact and cost-effectiveness of a range of DRM measures.

The experiences of the selected sectors in Fiji, Niue, Tuvalu and Vanuatu demonstrate that past natural hazards have resulted in significant short-term and long-term direct, indirect and intangible impacts. On the basis of the findings from the case studies, natural hazards have a considerable economic impact on development in the Pacific and often lead to deterioration in the quality of life of Pacific Island communities. The limited analysis that was undertaken suggests that greater emphasis on hazard and risk management can reduce the negative impacts of disasters, and thereby reduce the costs of disaster response and recovery.

Volume 1: Research Report [PDF 381KB]

Volume 2: Economic Assessment Tools [PDF 518KB]

Available: Electronic version only

This report was commissioned by AusAID. The findings, interpretations and conclusions expressed in the report are those of the authors and do not necessarily reflect the views of AusAID or the Australian Government.

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