Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction |
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Part I - Chapter 4
4.1
The production of extensive risk
In-depth analysis of new national disaster loss data confirms a previously recognised and yet regularly ignored truth: accumulated losses from small-scale, highly frequent and localised disaster events approach in magnitude those of major disasters and contribute to declines in social welfare, economic growth and ecosystems. Urban and rural areas alike, particularly in low and middle-income countries, experience regular small disasters that undermine local development as well as national competitiveness.
GAR09 (UNISDR, 2009
UNISDR. 2009.,Global Assessment Report on Disaster Risk Reduction: Risk and poverty in a changing climate., United Nations International Strategy for Disaster Reduction., Geneva,Switzerland: UNISDR.. . over the above processes or contribute to them. Given that not only exposure and vulnerability but also hazards are produced through these underlying drivers, extensive risk is endogenous to and produced by urban and economic development.
Wealthier, better-governed city regions are likely, over time, to successfully manage the processes that generate extensive risk. Rapid urban growth often reflects economic success and major inflows of capital into infrastructure and productive development (Mitlin and Satterthwaite, 2012
Mitlin, D. and Satterthwaite D. 2012.,Urban Poverty in the Global South: Scale and Nature., London,Routledge. . UN-HABITAT (United Nations Human Settlements Programme). 2012.,State of the World’s Cities 2012/2013: Prosperity of Cities., Nairobi,Kenya.. . In contrast, in many low-income countries, growth in urban population has outstripped growth in GDP per capita (Ibid.) in part from population migration owing to declining rural economies and crises. In these cities, a greater proportion of low-income households participate in urbanisation through informal mechanisms of land acquisition (Johnson et al., 2012
Johnson, C., Adelekan, I., Bosher, L., Jabeen, H., Kataria, S., Wijitbusaba, A. and Zerjav, B. 2012.,Private Sector Investment Decisions in Building and Construction: Increasing, Managing and Transferring Risks., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.. Click here to view this GAR paper. Hamdan, F. 2012.,Incentive and Extensive Disaster Risk Drivers and Incentives for Disaster Risk Management in the MENA region., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction. Geneva, Switzerland., Geneva,Switzerland: UNISDR. . Extensive risk is associated with localised, mainly weather-related hazards with short return periods. These highly localised, yet
frequent hazards include surface water and flash flooding, landslides, fires and both
agricultural and hydrological drought. They are exacerbated by badly
managed urban development, environmental degradation and poverty.
An analysis of the scale of economic losses shows that extensive risk continues to be underestimated. The
real cost of these largely human produced risks is rarely highlighted. Although extensive
risk events cause only 13 percent of total mortality, they are responsible for 42 percent or more of total economic losses.
These losses are hidden in largely invisible risk layers that no insurance covers. And yet they can
amount to more than 10 percent or more of annual capital formation.
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