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October/November 2007                                                                                            Volume 13 - Number 1/2

    

 

Perspectives...

     

 


Trends in Disaster Costs
By Thomas Crane


Goal: to find the trends of the costs of disasters within the past three decades.

In 2003, the Independent Evaluations Group of The World Bank reported that disaster costs around the world are greatly increasing. From 1990-1999, the report states that cost of major disasters was over $650 billion. On the contrary, 1980-1989 costs peaked just over $200 billion, preceded by a lesser $125+ billion in costs during the 1970’s. Additionally, the 2000’s is on pace to keep high disaster costs. Hurricane Katrina, the Asian Tsunami and the Pakistan/India earthquake are just a few disasters that will contribute to the great costs.

The Cost of Disaster Damage in Billions

700                                                                                     
                                                                                           *650
600

500

400

300
                                                                          *210
200
                                                      *110
100                               *80

  0       1950-1959  1960-1969  1970-1979  1980-1989  1990-1999

*Numbers are approximations based on IEG’s chart

Source: www.worldbank.org/ieg/naturaldisasters/docs/natural_disasters_fact_sheet.pdf

*World Disasters Report 2006

*Not used as a source but can be purchased and includes data regarding the costs of disasters.