Question

conclution for the project of natural disasters

Answer 1

Conclusions and Recommendations

This report has explained the gaps in our knowledge of natural disaster losses and why these gaps should be filled. Poor knowledge of the resulting economic losses hinders implementation of effective disaster mitigation policies and emergency response programs. Better loss estimates would benefit federal, state, and local governments, insurers, scientists and researchers, and private citizens (both as taxpayers and insurance purchasers).

It is clear that data on economic losses of natural disasters to the nation are incomplete and spread widely across the public and private sectors. Information on both direct and indirect costs is lacking. If data on uninsured direct losses are limited, our understanding of indirect losses is even more incomplete. These indirect losses are clearly difficult to identify and measure. However, in large disasters they may be significant and, within the immediately affected regions, potentially greater than the direct losses due to physical destruction, especially in large disasters.

Losses Versus Costs

In generating a national indicator of disaster damage, the focus should be upon the losses resulting from disasters, rather than costs. Losses encompass a broader set of damages than costs. Losses include direct physical destruction to property, infrastructure, and crops, plus indirect losses that are the consequence of disasters, such as temporary unemployment and lost business. Costs typically refer only to cash payouts from insurers and governments. The term "losses," as defined above, better portrays the true economic impacts of disasters.