Dealing with Natural Disaster: Role of the Market

Abstract

Ces dernieres annees, il y a eu de nombreuses discussions a propos des couts croissants des risques naturels. Jusqua present, pour la premiere fois dans lhistoire lhumanite a pu se premunir contre les caprices de la nature de maniere significative. Le developpement economique a fourni la meilleure protection contre les cataclysmes naturels. Lintervention du gouvernement dans leconomie a contrarie la croissance economique et retarde la possibilite pour les gens de prendre des mesures efficaces afin dattenuer limpact des sinistres naturels. Dans la mesure ou les forces du marche ont pu operer, toute une serie doptions ont permis de predire, prevenir et dedommager les couts de ces risques.In recent years, there have been a lot of discussions about the increased costs of natural hazards. Yet, the fact is that for the first time in history mankind has been able to insulate themselves from the vagaries of nature to a significant extent. Economic development has provided the best protection against natural cataclysms. Government intervention in the economy has adversely affected economic growth and retarded the ability of the people to take effective measures to mitigate the impact of natural hazards. To the extent the market forces have been allowed the space to operate, a whole range of options has evolved to predict, prevent and offset the costs of these hazards.