Posts tagged with: disaster

Hurricane IkeAfter 6,712 cyclones, typhoons, and hurricanes the evidence is clear: Bastiat was right all along.

In 1850, the economic journalist Frédéric Bastiat introduced the parable of the broken window to illustrate why destruction, and the money spent to recover from destruction, is not actually a net benefit to society (see the video at the end of this post for an explanation of the broken window fallacy). For most people the idea that destruction doesn’t help society would seem too obvious to warrant mentioning. But some liberal economists argue that destruction can lead to an economic boom, mainly because it provides the government with an opportunity to spend more money.

If the liberal economists are right, then we should find that destructive storms lead to economic growth. But a pair of researchers, Solomon M. Hsiang and Amir S. Jina, have recently published a study that shows the exact opposite. Using meteorological data, they reconstructed every country’s exposure to the 6,712 cyclones, typhoons, and hurricanes that occurred during 1950-2008 and then measured the long-term growth:
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Blog author: jballor
Thursday, January 13, 2011
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Mark Hanlon of Compassion International writes about his experience related to the place of local churches in relief work. Contrary to the belief of some that relief and development groups “couldn’t rely on churches to do the work they needed to do in the third world. They claimed that the needed expertise and skill sets simply weren’t there,” Hanlon writes,

In my three decades of experience in developing nations with Compassion International, I have witnessed the opposite. In the midst of chaos and fear, it is local churches — rooted in the neighborhoods and anchored on the side streets — that are actually some of the most efficient, most compassionate delivery systems available.

He goes on to relate some of the details about Compassion’s work in Haiti following the earthquake last year.

He concludes:

The faithful, hard-working, often unheralded heroes of the Haiti crisis are the ones who were there before the 7.1 earthquake and who will be there for generations after.

They are the local Christian churches — the most efficient, most compassionate delivery systems you may never have heard of.

For more on the response of development and aid groups to the Haiti disaster, see “One Year Report On Transparency of Relief Groups Responding to 2010 Haiti Earthquake” from the Disaster Accountability Project.

Blog author: jwitt
Thursday, January 14, 2010
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If you are looking for a Christian relief organization working in Haiti, let me recommend WFR Relief, located in Louisiana. Led by Don Yelton, WFR has a solid track record for effective compassion in times of disaster, having “provided humanitarian aid and disaster relief in 50 countries since 1981.” They distinguished themselves, for instance, in the wake of Hurricane Katrina.

An article about Yelton and WFR is here. WFR’s donation page is here.

Blog author: jballor
Thursday, January 14, 2010
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I have to admit that my first few reactions to the news of an earthquake in the Caribbean weren’t especially charitable. I thought first that the scale of the reports had to be exaggerated, that things couldn’t be as bad as the media was breathlessly reporting. Then I wondered how long it would take for the environmental movement to make use of the disaster to advance their agenda. Neither of these reactions are particularly noble on my part, obviously. Blame it on my dispositional skepticism, I suppose.

But by all accounts, the human toll in Haiti after the earthquake is vast. In a world of digital media and on-demand news reporting, we can oftentimes see instantaneous first-hand accounts of these kinds of events. Here’s a kind of informal poll for PowerBlog readers: are you planning on donating specifically to address the need resulting from the earthquake in Haiti? And if so, which agencies or charities are you specifically supporting?

One of my favorite charities of first resort, International Aid, closed up shop amidst the economic downturn last year (Update: A commenter notes that International Aid is still making international shipments and actively working in Haiti). My family and I support a child in the Dominican Republic through Compassion International, which is currently accepting donations aimed specifically for Haiti. (I haven’t heard much about the impact on that other nation sharing the island with Haiti, incidentally. Relative to Haiti, of course, the Dominican Republic is markedly more economically stable.)

Put some specific suggestions in the comments for other PowerBlog readers to consider. Do you use denominational ministries, stand-alone aid agencies, something else, or nothing at all? There are the typical guides to disaster giving, which often point to large groups like the Red Cross, to whom my fundamental skepticism also applies.

One curious response has been to send outdated sports apparel to devastated areas.

I haven’t started Marvin Olasky’s new book yet, but here’s a bit from the abstract of a new NBER paper, “Rules Rather Than Discretion: Lessons from Hurricane Katrina,” by Howard Kunreuther and Mark Pauly. Speaking of property owners who suffer severe damage and don’t have the resources to rebuild:

To avoid these large and often uneven ex post expenditures, we consider the option of mandatory comprehensive private disaster insurance with risk based rates. It may be more efficient to have an ex ante public program to ensure coverage of catastrophic losses and to subsidize low income residents who cannot afford coverage rather than the current largely ex post public disaster relief program.

That solution doesn’t sound too promising to me, and it strikes me as a false dichotomy. Are the only two options government action before or after the fact?