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    A Quantitative Analysis of Disaster Risk Reduction Investment Effects for Sustainable Development: Indonesia Case Study

    Ishiwata, Hiroaki; Wada, Hiroyuki; Suzuki, Koji; Ikeda, Makoto; Tada, Naoto | June 2020
    Abstract
    This paper analyses the long-term impacts of large-scale disasters on the economic growth of developing countries in the Association of Southeast Asian Nations (ASEAN) Community, by the scale of disaster risk reduction (DRR) investments. As a means of quantitatively analysing the optimal level and economic efficiency of DRR investments, a case study was conducted on Indonesia by using a dynamic stochastic macroeconomic model. The results showed that in Indonesia, although greater economic growth is expected when additional DRR investments are made, an excessive DRR investment may contrarily lead to a slowdown in economic growth: an optimal level of DRR investment exists and maintaining its level is essential for sustainable economic growth. Furthermore, it was confirmed that there is a break-even point when the amount of accumulated disaster damage mitigation benefits exceeds the amount of accumulated DRR investment. This demonstrated that the funds invested in DRR could be recovered. Additionally, the results also showed that even if no disaster damage is caused over a long period of time, DRR investments are by no means redundant as the ‘ex-ante risk reduction effect’ will be generated when the optimal level of DRR investment is made. Lastly, it was determined that providing a continuous DRR investment is important in achieving the global target set forth in the Sendai Framework for Disaster Risk Reduction. In addition, it is considered desirable to maintain a higher level of DRR investment than that which is currently being implemented.
    Citation
    Ishiwata, Hiroaki; Wada, Hiroyuki; Suzuki, Koji; Ikeda, Makoto; Tada, Naoto. 2020. A Quantitative Analysis of Disaster Risk Reduction Investment Effects for Sustainable Development: Indonesia Case Study. © Economic Research Institute for ASEAN and East Asia. http://hdl.handle.net/11540/12201.
    Keywords
    Disaster preparedness
    Disaster prevention
    Disaster management
    Emergency relief
    Flood control
    Fire prevention
    Natural disasters
    Man-made disasters
    Post-conflict recovery
    Fragile states
    Governance
    Good Governance
    Political Leadership
    Public Administration
    Business Ethics
    Governance
    Corporate Governance Reform
    Governance Approach
    Governance Quality
    Public Sector Projects
    Public Sector Reform
    Political Leadership
    Political Power
    Institutional Framework
    Government
    Government accounting
    Government
    Institutional Framework
    Public Administration
    Business Ethics
    Political Leadership
    Public enterprises
    Public finance
    Public enterprises
    Localisation
    Bureaucracy
    Cabinet system
    Common good
    Executive power
    Government
    Political obligation
    Public management
    Government accountability
    Transparency in government
    Political ethics
    Government spending policy
    Government services
    Democracy
    Democratization
    Elections
    Local government
    Government business enterprises
    Police power
    Local government
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/12201
    Metadata
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    A-Quantitative-Analysis-of-Disaster-Risk-Reduction-Investment-Effects-for-Sustainable-Development.pdf (909.8Kb)
    Author
    Ishiwata, Hiroaki
    Wada, Hiroyuki
    Suzuki, Koji
    Ikeda, Makoto
    Tada, Naoto
    Theme
    Disaster
    Governance
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise