|Disasters and Development (Department of Humanitarian Affairs/United Nations Disaster Relief Office - United Nations Development Programme , 1994, 55 p.)|
|PART 2 - Understanding and exploiting disaster/development linkages|
Repeated disasters, in particular, have a negative impact on the incentive for further investment. A climate of stability and certainty is needed to encourage investors. At the individual level, repeated losses from hazardous events can discourage creative investment. Under conditions of uncertainty, both foreign and domestic investors will generally be very cautious about supporting entrepreneurial activity.