This article discusses the issue of economic costs and consequences of natural disasters experienced the world over and also the economic recovery after the disasters. Several problems faced in estimating disaster losses are explained. Disasters, poverty and development are linked. The economic losses of recent disasters such as Hurricane Katrina, Kutch, Kashmir and Iran earthquakes, Indian ocean tsunami are also mentioned. The article emphasizes the measures to prevent disaster losses like warning system, fishery disaster insurance scheme are suggested and dividends from risk mitigation measures. It also highlights the central role of the environment in disaster reduction.

Natural disasters cause huge damage to the environment and also to the economy. Natural isasters have a significant impact on the development process of developing countries. The poor people in the world are worst affected by natural disasters. In the last four decades, the frequency and intensity of natural disasters have increased, consequently their impact in terms of both human and economic loss is huge. The escalating losses and associated increase in expenditure on post disaster reconstruction has generated worldwide awareness of the potential threat that natural disasters pose to both human life and development. In addition to several negative short run economic impacts, disasters have long-term consequences for economic growth, development and poverty reduction programs.

A study of economic costs and consequences of disasters assumes significance for sustainable development and achievement of Millenium development goals on poverty reduction. It is necessary to correctly estimate the losses from natural disasters, so that the requirements for assistance both from within and outside the country can be determined and necessary policies can be devised. Quantification is critical for designing relief and rehabilitation packages and implementing them. Between 1980 and 2003, the World Bank financed 147 post-catastrophe reconstruction projects worth about $12.5 bn. In the last two decades, India has got the maximum foreign aid for natural disaster relief and rehabilitation. It has secured 43 loans from the World Bank and tops among the world in aid received ($ 8,257 mn) for this cause.

HRM Review Magazine, Natural Disaster, Economi Cost, World Bank, International Red Cross, Global Economy,Gross Domestic Product, GDP, Public Sectors, Hazard Management, International Federation of Red Cross, Disaster Management, International Insurance Company, Environmental Management, Risk Management.