New Delhi, India: Emerging economies like India, China, Philippines and Indonesia face the highest economic risk from natural disasters, according to a report by analysis and mapping firm Maplecroft. These Asian giants are proportionately at greater risk as they lack the capacity to combat the impact of a major disaster.
According to the Natural Hazards Risk Atlas 2011 released by Maplecroft, 196 countries were ranked with respect to their economic exposure to natural hazards like earthquakes, tsunamis, tropical cyclones, floods and drought.
As per the ranking, USA (1), Japan (2), China (3) and Taiwan (4) were categorised as “extreme risk” in terms of their absolute economic exposure to natural hazards. Mexico (5), India (6), Philippines (7), Turkey (8) and Indonesia (9) and Italy (10) were classified as “high risk”.
“The emerging economies, although buoyant with growth, lack the socio-economic conditions to limit their disaster risk. This lack of resilience could threaten their economic growth and the extent to which businesses with operations there hope to flourish,” Maplecroft CEO Alyson Warhurst said.
“Much of the growth of emerging economies is now based on increasing domestic consumption. As their relative purchasing power grows, so too will the absolute economic value exposed to natural hazards,” Warhurst added.
Natural hazards have been more costly to the world economy in 2011 than any other year on record. “The tsunami in Japan, tornadoes in the US, the earthquake and flooding in Australia have all contributed to USD 265 billion for the first six months of the year,” the report said.
Source: Indian Express