DISASTER MITIGATION AND ECONOMIC DEVELOPMENT

DISASTERS AND DEVELOPMENT ARE INHERENTLY LINKED

• IN AREAS SUBJECT TO NATURAL HAZARDS, DEVELOPMENT PUTS INFRASTRUCTURE, HOUSES, COMMERCIAL BUILDINGS, AND OTHER STRUCTURES IN HARM’S WAY
  
  
• IN HAZARD PRONE AREAS, THE SITING, DESIGN AND CONSTRUCTION OF BUILDINGS AND INFRASTRUCTURE LARGELY DETERMINE THE RISK OF DAMAGE
  
  
• EXPERIENCE HAS SHOWN THAT UNLESS CONSCIOUS STEPS ARE TAKEN TO MITIGATE THE RISK, DEVELOPMENT WILL INCREASE THE FREQUENCY AND SEVERITY OF DISASTERS AND THEIR COST
  
  
• WITHOUT MITIGATION BUILT INTO REGULATORY SYSTEMS IN HAZARD PRONE AREAS, EVERY LAND USE DECISION, BUILDING PERMIT ISSUED, AND DOLLAR SPENT ON INFRASTUCTURE INCREASES THE DISASTER RISK

IN THE LATE 1980s, PERCEPTIONS ABOUT THE RISK OF NATURAL DISASTERS IN THE UNITED STATES STARTED TO CHANGE

INSURANCE LOSSES FROM DISASTERS IN THE US SKYROCKED IN THE LATE 1980s AND EARLY 1990s:

• HURRICANE HUGO=$4.9 BILLION
  
  
• HURRICANE ANDREW=$15.5 BILLION
  
  
• THE 1993 NORTHEAST WINTER STORM=$1.8 BILLION
  
  
• NORTHRIDGE EARTHQUAKE=$7 BILLION
  
  
• HURRICANE INIKI=$1.6 BILLION

FEDERAL GOVERNMENT DISASTER COSTS HAVE ALSO INCREASED:

• TOTAL FEDERAL SPENDING FOR HURRICANE INIKI=$2.4 BILLION
  
  
• FEMA OBLIGATIONS (ALONE) FOR HURRICANE ANDREW TOTALED ALMOST $1.8 BILLION
  
  
• FEMA OBLIGATIONS FOR THE NORTHRIDGE EARTHQUAKE TOTALED ALMOST $2.5 BILLION
  
  
• IN 1994, FEMA DISASTER AID TOTALED $3.4 BILLION
  
  
• DURING THE FIRST SIX WEEKS OF 1996 , THERE WERE MORE FEDERALLY DECALRED DISASTERS (25) THAN FOR THE FIRST SIX WEEKS OF THE PREVIOUS 20 YEARS. ONLY 45 DISASTERS DECLARED IN 1992

THE INSURANCE INDUSTRY AND THE FEDERAL GOVERNMENT AND HAVE INDEPENDENTLY DECIDED SOMETHINGS HAS TO CHANGE

• THE INSURANCE AND THE REINSURANCE INDUSTRY HAVE PULLED OUT OF MANY MARKETS AND THE COST OF REINSURANCE HAS INCREASED MARKEDLY—IN SOME AREAS INSURANCE FOR CERTAIN HAZARDS IS NOT AVAILABLE
  
  
• THE FEMA DIRECTOR HAS MADE MITIGATION A CORNERSTONE OF HIS ADMINISTRATION AND A NATIONAL DISASTER MITIGATION STRATEGY HAS BEEN DEVELOPED
  
  
• THE CONGRESS HAS BEEN DEBATING THE NATURAL
  DISASTER PROTECTION AND INSURANCE ACT, A MAJOR PART OF WHICH WAS DISASTER MITIGATION.

DISASTERS PROVIDE OPPORTUNITIES FOR BOTH MITIGATION AND DEVELOPMENT

WHEN BUILDINGS AND INFRASTRUCTURE ARE DESTROYED, GOVERNMENTS, BUSINESSES, AND INDIVIDUALS HAVE OPPOTUNITIES FOR RELOCATION AND BUILDING TO A HIGHER STANDARD

• PEOPLE ARE MORE MOTIVATED TO SPEND MONEY TO REDUCE THE RISK OF FUTURE DAMAGE WHEN THEY ARE LIVING WITH THE AFTERMATH OF A DISASTER
  
  
• INSURANCE SETTLEMENTS MAY NOT PAY THE FULL COST OF BUILDING TO A HIGHER STANDARD OR RELOCATING BUT THEY PROVIDE FUNDS FOR RECONSTRUCTION
  
  
• FEMA PROVIDES MITIGATION FUNDING FOLLOWING FEDERALLY DECLARED DISASTERS
  
  
• EDA PROVIDES SUDDEN AND SEVERE ECONOMIC DISLOCATION GRANTS THAT CAN SUPPLY FUNDS TO REDUCE THE RISK OF FUTURE DAMAGE
  
  
• STATE AND LOCAL GOVERNMENTS SPEND MONEY ON REBUILDING THAT CAN BE DEDICATED TO MITIGATION
  
  
• RETROFITTING BUILDINGS AND INFRASTRUCTURE TO REDUCE THE RISK OF FUTURE LOSSES IS OFTEN LESS EXPENSIVE THAN RETROFITTING UNDAMAGED STRUCTURES

IN THE PACIFIC ISLANDS REGION THERE ARE SOME EXAMPLES OF SEVERAL MITIGATION ACTIVITIES THAT CONTRIBUTED TO SOCIAL AND ECONOMIC DEVELOPMENT

FOLLOWING CYCLONE TUSI IN AMERICAN SAMOA, PBDC CONDUCTED AN SSED THAT FOCUSED ON

• REDUCING THE RISH OF FUTURE DAMAGE TO HOUSES IN THE MANU’A ISLANDS THROUGH IMPROVED DESIGN AND SITING
  
  
• DEVELOPMENT OF MARKET INFRASTRUCTURE OF GARDEN VEGETABLES TO GENERATE CASH INCOME; AND
  
  
• BUSINESSES ASSISTANCE TO SMALL STORE AND HOTEL OPERATORS

FOLLOWING CYCLONE VAL IN AMERICAN SAMOA, FEMA FUNDED A SELF-HELP DISASTER RESISTENT HOUSING RECONSTRUCTION PROGRAM THAT IMPROVED THE OVERAL QUALITY OF HOUSING

THE FEDERATED STATES OF MICRONESIA HAVE PROPOSED TO BURY THE POWER LINES TO REDUCE THE RISK OF FUTURE HURRICAN DAMAGE

FOLLOWING HURRICANE INIKI, TWO PRIVATE SECTOR BUSINESSES HAVE BEEN DEVELOPED TO PROVIDE HURRICANE PROTECTION:

• A CABLE TIE DOWN SYSTEM WAS DEVELOPED BY AN ENTREPRENEUR THAT IS NOW SELLING SYSTEMS IN HAWAII AND FLORIDA
  
  
• HURRICANE HAWAII IS RETROFITTING BUILDINGS WITH HURRICANE CLIPS AND FASTENER

DURING THE PERIOD FROM 1983 TO 1992, WHEN GUAM’S ECONOMY WAS GROWING AT AN AVERAGE RAGE OF 10% PER YEAR, THEY MADE SUBSTANTIAL IMRPOVEMENTS IN THEIR BUILDING CODES

• WHEN GUAM SUFFERED A 8.2 RICHTER SCALE EARTHQUAKE IN 1993, ONLY THREE OUT OF 22 MAJOR HOTELS SUFFERED DAMAGE
  
  
• ONLY ONE GOVERNMENT BUILDING SUFFERED MAJOR DAMAGE AND THREE BRIDGES REQUIRED REPAIRS