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close this bookDisasters and Development (Department of Humanitarian Affairs/United Nations Disaster Relief Office - United Nations Development Programme , 1994, 55 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

Impact on the non-formal sector

Disasters have special negative impacts on the non-formal sector. The costs of disasters are often underestimated because disruption in this part of the economy is not usually taken into account. In many societies the non-formal economy, while not usually included in national economic statistics, can involve a substantial portion of the total population. The non-formal sector is especially vulnerable to housing damage because houses often serve as sites of business activity. Once local business is disrupted, there will be indirect costs from lost employment and income. Small business in this sector may be especially sensitive to price increases. In addition, relief efforts can themselves inhibit recovery in this sector. For example, import of relief items can create disincentives to small producers, particularly in the agricultural and personal and household goods sector.

Hurricane damage

UNDRO/U. Tomblin