In the 20 years between 1998 and 2017, countries that were hit by disasters tallied direct economic losses of around $2.9 trillion. Climate-related disasters caused $2.25 trillion, or 77%, of the total.

The numbers appear in a new report “Economic Losses, Poverty and Disasters 1998-2017” released October 13 by the United Nations Office for Disaster Risk Reduction. The report's release coincided with the International Day for Disaster Reduction and came within days of Hurricanes Florence and Michael in the United States and a 7.5-magnitude earthquake and tsunami in Indonesia.

An earthquake and tsunami in September 2018 severely damaged this bridge in Indonesia. Source: Antara Foto/Muhammad Adimaja via Reuters/Manila BulletinIn absolute monetary terms, over the last 20 years the U.S. recorded the largest losses, totaling around $945 billion. The size of the loss reflects high asset values in addition to frequent disasters, the report said. By comparison, China suffered more disasters than the U.S. (577 versus 482), but recorded lower total monetary losses (on the order of $492 billion).

'Crippling Consequences'

Fewer data points are available from low-income countries, the report said. While high-income countries reported losses from more than half of disasters between 1998 and 2017, low-income countries reported losses from only around 13% of disasters. As a result, no loss data are available for around 87% of disasters in low-income countries.

“We are acutely reminded that disasters are a combination of hazard, exposure and vulnerability,” the report said. “It is also clear that the economic losses suffered by low and lower-middle income countries have crippling consequences for their future development.”

The report uses georeferencing to calculate that an average of 130 people died per million living in disaster-affected areas of low-income countries. That compared to an average of 18 deaths per million people living in high-income countries.

A lone mosque stands among the damage of a coastal village near Aceh, Sumatra, Indonesia, after a tsunami in 2004. Source: Wikimedia. Source: U.S. Navy photo Jacob J. KirkAlthough most fatalities were due to geophysical events, mostly earthquakes and tsunamis, 91% of all disasters were caused by floods, storms, droughts, heatwaves and other extreme weather events.

“Vulnerability to risk and degrees of suffering are determined by levels of economic development, rather than simple exposure to natural hazards,” the report said.

Resiliency

For example, researchers affiliated with the National Institute of Science and Technology-funded Center for Risk-based Community Resilience Planning are working to develop models that communities in the U.S. and elsewhere can use to plan for and recover from natural disasters. As a benchmark, they are focusing on the town of Lumberton, N.C., which was inundated with more than 12.5 inches of rain as Hurricane Matthew stalled over the area in 2016.

As part of their work, the researchers are developing a computational environment to be used to study community resiliency. The resiliency model is being built in part with data gathered from Lumberton and is intended to help policymakers and planners spend resources most effectively, and adopt sensible codes and regulations. That the model will help planners evaluate a business case that, for example, could call for moving structures out of a flood-prone area.

Their work suffered a setback when Hurricane Florence, which moved through the Carolinas in mid-September 2018, caused extensive and prolonged flooding in Lumberton and other communities.

The UN report said that disasters like hurricanes, floods and tsunamis will continue to be major impediments to sustainable development as long as the economic incentives to develop in locations such as flood plains, vulnerable coasts and earthquake zones continue to outweigh perceived disaster risks.

Integrating disaster risk reduction into investment decisions, the report said, represents the “most cost-effective way” to reduce those risks.