Saturday, May 24, 2008

The economics of natural disasters


As China and Myanmar’s (Burma’s) death tolls from the recent calamities continue to climb, Will Wilkinson of the Cato Institute offers an interesting perspective on the role that a human hand has in the extent of damage caused by natural disasters. Of course nobody can stop a cyclone or prevent an earthquake. But the high number of casualties in the aftermath of such disasters is at least to some degree man-made.

China’s death toll stands at 41,000 and Burma now has staggering 134,000 people dead or missing. Some part of those figures can obviously be attributed to the shortcomings in the government-managed rescue efforts. But longer-term governmental policies may be as much – if not more – to blame.

See full Article.