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close this bookDisaster and Development - 2nd edition (Department of Humanitarian Affairs/United Nations Disaster Relief Office - Disaster Management Training Programme - United Nations Development Programme , 1994, 60 p.)
close this folderPART 2. Understanding and exploiting disaster/development linkages
View the document(introduction...)
View the documentThe impact of disasters on development programs
View the documentLoss of resources
View the documentShifting resources
View the documentImpact on investment climate
View the documentImpact on the non-formal sector
View the documentCASE STUDY
View the documentDevelopment programs can increase vulnerability
View the documentCASE STUDY
View the documentDevelopment programs can decrease vulnerability
View the documentCASE STUDY
View the documentDisasters as opportunities for development initiatives
View the documentCASE STUDY
View the documentSUMMARY

Shifting resources

Development activity can also be negatively impacted by interrupting ongoing programs to allow a shift in resources from long-term programs to highly visible short-term recovery and emergency response programs.

The secondary effects of a major disaster also disrupt the development process. These secondary effects of direct economic impact include inflation, balance of payment problems, increase in fiscal expenditures and decreases in monetary reserves. An increase in the country’s debt means that as the debt service burden increases, countries have fewer resources available to invest in productive enterprises. The outcome is usually the lowering of economic growth, delays to development programs, cancellation of programs and disincentives to new investment.