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Natural Disasters

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  • Nicole Laframboise
  • Boileau Loko
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    Abstract

    This paper reviews the literature on the macroeconomic impact of natural disasters and presents the IMF’s role in assisting countries coping with natural catastrophes. Focusing on seven country cases, the paper describes the emergency financing, policy support, and technical assistance provided by the Fund to help governments put together a policy response or build a macro framework to lay the foundation for recovery and/or unlock other external financing. The literature and experience suggests there are ways to strengthen policy frameworks to increase resilience to natural disaster shocks, including identifying the risks and probability of natural disasters and integrating them more explicitly into macro frame-works, increasing flexibility within fiscal frameworks, and improving coordination amongst international partners ex post and ex ante.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 12/245.

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    Length: 32
    Date of creation: 09 Oct 2012
    Date of revision:
    Handle: RePEc:imf:imfwpa:12/245

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    Related research

    Keywords: External shocks; Low-income developing countries; Emergency assistance; Risk management; Fund facilities; Fund role; earthquake; reconstruction; tsunami; earthquakes; hurricane; floods; natural catastrophes; risk reduction; disaster risk; disaster assistance; damages; impact of disasters; risk assessment; civil society; hurricanes; natural disaster assistance; emergency needs; disaster recovery; tsunamis; natural disaster insurance; epidemiology of disasters; consequences of disasters; emergency relief; emergency situations; storms; emergencies; type of disaster; environmental destruction; recovery efforts; tornadoes; disaster relief;

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    References

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    1. Fomby, Thomas & Ikeda, Yuki & Loayza, Norman, 2009. "The growth aftermath of natural disasters," Policy Research Working Paper Series 5002, The World Bank.
    2. Rodney Ramcharan, 2005. "Cataclysms and Currencies," IMF Working Papers 05/85, International Monetary Fund.
    3. Tobias N. Rasmussen, 2004. "Macroeconomic Implications of Natural Disasters in the Caribbean," IMF Working Papers 04/224, International Monetary Fund.
    4. Stéphane Hallegatte & Valentin Przyluski, 2010. "The Economics of Natural Disasters," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 11(2), pages 14-24, 07.
    5. Rodney Ramcharan, 2005. "How Big Are the Benefits of Economic Diversification? Evidence From Earthquakes," IMF Working Papers 05/48, International Monetary Fund.
    6. Régis Barnichon, 2008. "International Reserves and Self-Insurance Against External Shocks," IMF Working Papers 08/149, International Monetary Fund.
    7. Melecky, Martin & Raddatz, Claudio, 2011. "How do governments respond after catastrophes ? natural-disaster shocks and the fiscal stance," Policy Research Working Paper Series 5564, The World Bank.
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