IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2012-245.html
   My bibliography  Save this paper

Natural Disasters: Mitigating Impact, Managing Risks

Author

Listed:
  • Ms. Nicole Laframboise
  • Mr. Boileau Loko

Abstract

This paper reviews the literature on the macroeconomic impact of natural disasters and presents the IMF’s role in assisting countries coping with natural catastrophes. Focusing on seven country cases, the paper describes the emergency financing, policy support, and technical assistance provided by the Fund to help governments put together a policy response or build a macro framework to lay the foundation for recovery and/or unlock other external financing. The literature and experience suggests there are ways to strengthen policy frameworks to increase resilience to natural disaster shocks, including identifying the risks and probability of natural disasters and integrating them more explicitly into macro frame-works, increasing flexibility within fiscal frameworks, and improving coordination amongst international partners ex post and ex ante.

Suggested Citation

  • Ms. Nicole Laframboise & Mr. Boileau Loko, 2012. "Natural Disasters: Mitigating Impact, Managing Risks," IMF Working Papers 2012/245, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2012/245
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=40044
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stéphane Hallegatte & Valentin Przyluski, 2010. "The Economics of Natural Disasters," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(02), pages 14-24, July.
    2. Thomas Fomby & Yuki Ikeda & Norman V. Loayza, 2013. "The Growth Aftermath Of Natural Disasters," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(3), pages 412-434, April.
    3. Raddatz, Claudio, 2009. "The wrath of God : macroeconomic costs of natural disasters," Policy Research Working Paper Series 5039, The World Bank.
    4. Mr. Rodney Ramcharan, 2005. "Cataclysms and Currencies: Does the Exchange Rate Regime Matter for Real Shocks?," IMF Working Papers 2005/085, International Monetary Fund.
    5. Régis Barnichon, 2008. "International Reserves and Self-Insurance against External Shocks," IMF Working Papers 2008/149, International Monetary Fund.
    6. Mr. Rodney Ramcharan, 2005. "How Big Are the Benefits of Economic Diversification? Evidence from Earthquakes," IMF Working Papers 2005/048, International Monetary Fund.
    7. Melecky, Martin & Raddatz, Claudio, 2011. "How do governments respond after catastrophes ? natural-disaster shocks and the fiscal stance," Policy Research Working Paper Series 5564, The World Bank.
    8. Hochrainer, Stefan, 2009. "Assessing the macroeconomic impacts of natural disasters : are there any ?," Policy Research Working Paper Series 4968, The World Bank.
    9. Goetz von Peter & Sebastian von Dahlen & Sweta C Saxena, 2012. "Unmitigated disasters? New evidence on the macroeconomic cost of natural catastrophes," BIS Working Papers 394, Bank for International Settlements.
    10. Hallegatte, Stephane & Przyluski, Valentin, 2010. "The economics of natural disasters : concepts and methods," Policy Research Working Paper Series 5507, The World Bank.
    11. Mr. Tobias N. Rasmussen, 2004. "Macroeconomic Implications of Natural Disasters in the Caribbean," IMF Working Papers 2004/224, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miles Parker, 2018. "The Impact of Disasters on Inflation," Economics of Disasters and Climate Change, Springer, vol. 2(1), pages 21-48, April.
    2. KeumJi Kim & SeongHwan Yoon, 2018. "Assessment of Building Damage Risk by Natural Disasters in South Korea Using Decision Tree Analysis," Sustainability, MDPI, vol. 10(4), pages 1-22, April.
    3. K. Mukherjee & B. Ouattara, 2021. "Climate and monetary policy: do temperature shocks lead to inflationary pressures?," Climatic Change, Springer, vol. 167(3), pages 1-21, August.
    4. Palmer, Carolyn, 2014. "'Flood and fire and famine': Tax policy lessons from the Australian responses to natural disasters," Working Paper Series 18858, Victoria University of Wellington, Chair in Public Finance.
    5. Giulia Bettin & Alberto Zazzaro, 2018. "The Impact of Natural Disasters on Remittances to Low- and Middle-Income Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 54(3), pages 481-500, March.
    6. Capuno, Joseph & Corpuz, Jose & Lordemus, Samuel, 2024. "Natural disasters and local government finance: Evidence from Typhoon Haiyan," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 869-887.
    7. Ezequiel Cabezon & Leni Hunter & Patrizia Tumbarello & Kazuaki Washimi & Yiqun Wu, 2019. "Enhancing macroeconomic resilience to natural disasters and climate change in the small states of the Pacific," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 33(1), pages 113-130, May.
    8. International Monetary Fund, 2015. "Haiti: Ex Post Assessment of Longer-Term Engagement," IMF Staff Country Reports 2015/004, International Monetary Fund.
    9. Floriza Gennari & Diana Arango & Anne-Marie Urban & Jennifer McCleary-Sills, 2015. "Violence Against Women and Girls : Disaster Risk Management Brief [Guía de recursos sobre la violencia contra las mujeres y las niñas : nota sectorial de gestión del riesgo de desastres]," World Bank Publications - Reports 21093, The World Bank Group.
    10. Andrea Filippo Presbitero, 2013. "Aid and Vulnerability," Mo.Fi.R. Working Papers 88, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    11. Lee H. Endress & James A. Roumasset & Christopher A. Wada, 2020. "Do Natural Disasters Make Sustainable Growth Impossible?," Economics of Disasters and Climate Change, Springer, vol. 4(2), pages 319-345, July.
    12. Tom Deweerdt & Kristin Caltabiano & Paul Dargusch, 2022. "Original Research: How Will the TNFD Impact the Health Sector’s Nature-Risks Management?," IJERPH, MDPI, vol. 19(20), pages 1-10, October.
    13. Lanxi Li & Alan Woodley & Timothy Chappell, 2024. "Mapping Urban Floods via Spectral Indices and Machine Learning Algorithms," Sustainability, MDPI, vol. 16(6), pages 1-26, March.
    14. Oscar Rodríguez-Espíndola & Juan Gaytán, 2015. "Scenario-based preparedness plan for floods," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 76(2), pages 1241-1262, March.
    15. José Armando Cobián Álvarez & Budy P. Resosudarmo, 2019. "The cost of floods in developing countries’ megacities: a hedonic price analysis of the Jakarta housing market, Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 555-577, October.
    16. Xiaojia Bao & Jianan Li & Puyang Sun, 2019. "Typhoon, Earthquake and Food Price: Evidence from China," Working Papers 2019-07-08, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    17. Palmer, Carolyn, 2014. "'Flood and fire and famine': Tax policy lessons from the Australian responses to natural disasters," Working Paper Series 3718, Victoria University of Wellington, Chair in Public Finance.
    18. Mr. Olumuyiwa S Adedeji & Mrs. Jana Bricco & Ms. Vera V Kehayova, 2016. "Natural Disasters and Food Crises in Low-Income Countries: Macroeconomic Dimensions," IMF Working Papers 2016/065, International Monetary Fund.
    19. Mr. Sebastian Acevedo Mejia, 2014. "Debt, Growth and Natural Disasters A Caribbean Trilogy," IMF Working Papers 2014/125, International Monetary Fund.
    20. Ionela-Daniela Găitan (Botezatu), 2020. "Comparative Analysis of Post-event Funding Sources," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 333-339, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johanna Choumert-Nkolo & Anaïs Lamour & Pascale Phélinas, 2021. "The Economics of Volcanoes," Economics of Disasters and Climate Change, Springer, vol. 5(2), pages 277-299, July.
    2. Felbermayr, Gabriel & Gröschl, Jasmin, 2014. "Naturally negative: The growth effects of natural disasters," Journal of Development Economics, Elsevier, vol. 111(C), pages 92-106.
    3. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
    4. Ilan Noy & Christopher Edmonds, 2016. "The Economic and Fiscal Burdens of Disasters in the Pacific," CESifo Working Paper Series 6237, CESifo.
    5. Dieppe,Alistair Matthew & Kilic Celik,Sinem & Okou,Cedric Iltis Finafa, 2020. "Implications of Major Adverse Events on Productivity," Policy Research Working Paper Series 9411, The World Bank.
    6. Peter A. G. van Bergeijk & Sara Lazzaroni, 2015. "Macroeconomics of Natural Disasters: Strengths and Weaknesses of Meta‐Analysis Versus Review of Literature," Risk Analysis, John Wiley & Sons, vol. 35(6), pages 1050-1072, June.
    7. Stéphane Hallegatte, 2014. "Modeling the Role of Inventories and Heterogeneity in the Assessment of the Economic Costs of Natural Disasters," Risk Analysis, John Wiley & Sons, vol. 34(1), pages 152-167, January.
    8. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).
    9. Eduardo Cavallo & Ilan Noy, 2009. "The Economics of Natural Disasters - A Survey," Working Papers 200919, University of Hawaii at Manoa, Department of Economics.
    10. Hallegatte, Stephane, 2012. "Modeling the roles of heterogeneity, substitution, and inventories in the assessment of natural disaster economic costs," Policy Research Working Paper Series 6047, The World Bank.
    11. -, 2015. "La economía del cambio climático en América Latina y el Caribe: paradojas y desafíos del desarrollo sostenible," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37310 edited by Cepal, September.
    12. John Sseruyange & Jeroen Klomp, 2021. "Natural Disasters and Economic Growth: The Mitigating Role of Microfinance Institutions," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    13. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2015. "Natural Disasters, Industrial Clusters and Manufacturing Plant Survival," Discussion papers 15008, Research Institute of Economy, Trade and Industry (RIETI).
    14. Swenja Surminski & Paul Hudson & Jeroen Aerts & Wouter Botzen & M.Conceição Colaço & Florence Crick & Jill Eldridge & Anna Lorant & António Macedo & Reinhard Mechler & Carlos Neto & Robin Nicolai & Di, 2015. "Novel and improved insurance instruments for risk reduction," GRI Working Papers 188, Grantham Research Institute on Climate Change and the Environment.
    15. Rio Yonson & Ilan Noy, 2020. "Disaster Risk Management Policies and the Measurement of Resilience for Philippine Regions," Risk Analysis, John Wiley & Sons, vol. 40(2), pages 254-275, February.
    16. Ouattara, Bazoumana & Strobl, Eric, 2013. "The fiscal implications of hurricane strikes in the Caribbean," Ecological Economics, Elsevier, vol. 85(C), pages 105-115.
    17. Loayza, Norman V. & Olaberría, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2012. "Natural Disasters and Growth: Going Beyond the Averages," World Development, Elsevier, vol. 40(7), pages 1317-1336.
    18. Matthew Ranson & Lisa Tarquinio & Audrey Lew, 2016. "Modeling the Impact of Climate Change on Extreme Weather Losses," NCEE Working Paper Series 201602, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2016.
    19. Breckner, Miriam & Englmaier, Florian & Stowasser, Till & Sunde, Uwe, 2016. "Resilience to natural disasters — Insurance penetration, institutions, and disaster types," Economics Letters, Elsevier, vol. 148(C), pages 106-110.
    20. Sujan R Adhikari & Dileep K Adhikary, 2019. "An account of Nepal disasters and economic fallout," Working Papers hal-01995386, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2012/245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.