I can relate and describe how painful and how bad economically these disasters can be; destroying each and everything coming in its way. There are two types of economic impacts due to natural disasters: 1. Direct Economic impact. This includes lifelines such as water, sanitation system, gas, electricity, telecommunication and transportation which are vulnerable to all types of natural disasters which are included in public infrastructure and community facilities. Other than this business enterprise, households & residents are also part of direct impact.
Indirect economic impact. Indirect economic impact includes disruption and clean up. These impacts are incurred due to consequence of the disaster. Australia has always been facing these kinds of disasters which made a huge loss for Australia and a lot of time and money was spent to bring Australia back in its kind of original form. If we go through the history of Australia we can read that from the year 1967 till 1 999 there have been 265 such disasters costing more than $10 million dollars each.
The total cost of most disasters is ranging from $10 to $50 million which is a huge amount. Among the entire starters, floods were most common and most costly. Floods have always been on number one causing destruction on a high level, contributing $10. 4 billion or 29 percent to the total cost followed by Storms and Cyclones making 26 and 24 percent of the total cost. The bushfire crisis in Victoria is Australia’s worst-ever bushfire disaster. It’s also Australia’s worst natural disaster in 1 10 years which so far has claimed 131 lives.
If we analyze the currently available data then we come up with a statement that total cost of natural disasters in Australia between the years 1967 and 999 is approximately 536. 4 billion, which is easy to say and hard to believe. If we integrate deaths and injuries into this data then the total cost Increases to $37. 8 billion or approximately $85 per person compared to prices in 1999. This estimation brings to an average annual total cost of natural disasters to $1. 14 billion since 1967 or $1. 17 since 1980 and $1. 1 billion prices are subjected to year 1999.
An organization called “The Natural disaster Relief and Recover Arrangements (ANDREA) is an organization that provides Commonwealth and States which hare costs in rebuilding the assets of states that are damaged by the natural disaster. By which the states are able to get a little part of the total cost from the Common wealth used in reconstructing state government assets. Every state in Australia has some self-insurance or some form of managed fund which helps in insuring states assets.
It is recommended by many that the formula used under Natural Disaster Relief and Recovery Arrangements” should be changed to expenditure method before the State or Territory gets any insurance recovery. Natural disasters cause so much heavy burden on the economy of Australia that at some stage it becomes so hard for the government to deal with the outcomes of that disaster. There are many ways which can help the government getting over these disasters and make plans or organizations which can work on these disasters as these disasters are unavoidable part of Australia. Nothing much can be done besides what has always done on such events.