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Disaster Impacts: immediate damage | health | basic needs | environmental damage | economic impacts

 

 

Compared to the human impacts of the disaster, the economic impacts are relatively minor on a global scale. Because most of the areas hit hardest are undeveloped and developing, most of the buildings were not insured. Most of the insured structures were office buildings or resorts owned by multi-nationals. Consequently, compared to the $20 billion spent to rebuild after the 2004 hurricanes in Florida, it is estimated that only around $2 billion will be spent on reconstruction. Also, natural gas is one of the major industries of Indonesia, (the hardest hit country). Most of the facilities are located on the east coast of the island and as a result were unharmed by the event. As an indicator of the relatively low global economic impact, while some stocks fell, the market didn’t fall significantly.

On a more local level the economic impacts are much greater. According to MSNBC, damaged areas have 1/10th the economic output per person. While this caused insurable damage to be low, it will make for a longer, more difficult and more expensive cleanup. Also, while tourist industries may recover soon, fisheries and agriculture may take much more time to become viable again. On the other hand, MSNBC reports that a strong recent economy may help Indonesia recover more quickly. Furthermore, they report that in the long run the global outpouring of support may actually cause impacted countries’ economies to rise, offsetting losses.
...........Image credit: MSNBC.com
Above, from left to right, The destruction in the district of Meulaboh, Indonesia, demonstrates the immense economic loss in the Aceh region. A fisherman returns to sea for the first time after the tsunami. A heap of letters hold donations to aid tsunami victims.

 

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