Bangladesh economy has highest risk from natural hazards: Maplecroft
Reported by: UNBConnect
Reported on: Aug 15, 2012 07:35 pm
Reported in: National
Dhaka, Aug 15 (UNB) - The economy of Bangladesh has the highest risk from natural hazards, according to the 2nd Natural Hazards Risk Atlas released by UK-based Maplecroft on Wednesday.
The report said some of Asia’s most important growth economies -- Bangladesh, the Philippines, Myanmar, India and Vietnam -- have the highest risk from natural hazards due to the high exposure of their cities and trading hubs to events such as flooding, earthquakes and tropical cyclones.
Bangladesh, the Philippines, Myanmar, India and Vietnam are among the 10 countries with the greatest proportion of their economic output exposed to natural hazards. “In addition, they demonstrate poor capability to recover from a significant event exposing investments in those countries to risk of supply chain and market disruptions,” according to the report.
It says this could lead to sizable business interruption costs in addition to material damage to essential infrastructure.
Maplecroft’s research also shows that it could exacerbate other risks like societal unrest, food security, corruption and the rule of law even leading to increased political risk.
“High exposure to natural hazards in these countries are compounded by a lack of resilience to combat the effects of a disaster should one emerge,” explains Maplecroft’s Head of Maps and Indices Helen Hodge.
“Given the exposure of key financial and manufacturing centres, the occurrence of a major event would be very likely to have significant impacts on the total economic output of these countries, as well as foreign business.”
The Natural Hazards Risk Atlas has been developed by Maplecroft to help companies assess and compare natural hazards risks across 197 countries and build on research undertaken by Maplecroft with UN OCHA. It includes 29 risk indices and interactive maps that measure physical exposure to 12 different natural hazards, in addition to calculating overall economic exposure and socio-economic resilience to large events.