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The Disaster Profiteers: How Natural Disasters Make the Rich Richer and the Poor Even Poorer

Page 27

by John C. Mutter


  5.“Jury Convicts Blackwater Guards in 2007 Killings of Iraqi Civilians,” Guardian, October 22, 2014, http://www.theguardian.com/us-news/2014/oct/22/us-jury-convicts-blackwater-security-guards-iraq.

  6.Thomas Piketty, Capital in the Twenty-First Century, trans. Arthur Goldhammer (Cambridge, MA: Belknap Press, 2014).

  7.Jim Salter and Jim Suhr, Associated Press, “Ferguson Election Triples Number of Blacks on City Council,” U.S. News & World Report, April 8, 2015, http://www.usnews.com/news/us/articles/2015/04/07/ferguson-voters-go-to-polls-to-elect-3-to-council-members.

  Technical Appendix I: Simplified Socioeconomics of Natural Disaster Shocks and Their Consequences

  1.All illustrations of this style are the author’s original drawings.

  2.Binyamin Appelbaum, “U.S. Economic Recovery Looks Distant as Growth Stalls,” New York Times, June 11, 2014, http://www.nytimes.com/2014/06/12/business/economy/us-economic-recovery-looks-distant-as-growth-lingers.html.

  3.The area is L(Ti–Te)/2, where i is either 1 or 2. Te can be made zero without loss of generality; then it is clear that the lower area is greater than the upper.

  4.Jeremy Ashkenas and Alicia Parlapiano, “How the Recession Reshaped the Economy in 255 Charts,” New York Times, June 6, 2014, http://www.nytimes.com/interactive/2014/06/05/upshot/how-the-recession-reshaped-the-economy-in-255-charts.html?_r=0.

  5.This figure and the previous are similar to those presented by Stéphane Hallegate and Michael Ghil, “Natural Disasters Impacting a Macroeconomic Model with Endogenous Dynamics,” Ecological Economics 68, nos. 1–2 (2008): 582–92. Their work provided significant inspiration for the discussion in this section.

  Technical Appendix II: Disasters in Neoclassical Growth Theory

  1.Robert M. Solow, “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics 70, no. 1 (1956): 65–94; doi:10.2307/1884513; Trevor W. Swan, “Economic Growth and Capital Accumulation,” Economic Record 32, no. 2 (1956): 334–361, doi:10.1111/j.1475-4932.1956.tb00434.x. Robert M. Solow, “Technical Change and the Aggregate Production Function,” Review of Economics and Statistics 39, no. 3 (1957): 312–320, doi:10.2307/1926047.

  2.According to the Encyclopaedia Britannica, in economics, the production function is an equation that expresses the relationship between the quantities of productive factors (such as labor and capital) used and the amount of product obtained. It states the amount of product that can be obtained from every combination of factors, assuming that the most efficient available methods of production are used.

  3.Costas Azariadis and John Stachurski, “Poverty Traps,” in Handbook of Economic Growth, Philippe Aghion & Steven Durlauf, eds. (ed. 1, vol. 1, no. 1, Elsevier, 2005), 326. The Wikipedia entry under “Poverty Traps” is useful and refers to Sachs’s work. Also see Abhijit V. Banerjee and Ester Duflo, Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty (New York: Public Affairs/Perseus Book Group, 2011).

  4.Stéphane Hallegatte and Michael Ghil, “Natural Disasters Impacting a Macroeconomic Model with Endogenous Dynamics,” Ecological Economics 68 (2008): 582–92, doi:10.1016/j.ecolecon.2008.05.022.

  Index

  The index that appeared in the print version of this title does not match the pages in your e-book. Please use the search function on your e-reading device to search for terms of interest. For your reference, the terms that appear in the print index are listed below.

  aftershocks, 68, 88

  see also earthquakes

  agriculture

  see farming

  Ambraseys, Nicholas, 97

  American Human Development Project, 160

  Aquino, Benigno Simeon III, 157

  Argentina, 12, 46

  Aristide, Jean-Bertrand, 85, 104–5

  Army Corps of Engineers, 172

  Aronson, Eliot, 172

  Asian Development Bank, 80

  atomic bomb, 25

  Balko, Radley, 215

  Bennett, Drake, 14

  Berube, Alan, 160

  Big Mac Index, 44

  Big Truck That Went By, The (Katz), 83

  Bilham, Roger, 71, 77, 97

  Bío Bío River, 112, 122

  Blanco, Kathleen, 157, 185–87

  Bohr, Niels, 24

  Bonanno, George, 22, 252n14

  BP (British Petroleum), 19

  Brazil, 48, 59, 143

  Bronson, William, 32

  Brookings Institution, 92, 160, 203

  Broussard, Aaron, 163

  Brown, Michael, 165, 173–74, 184, 213, 217

  building assessment and rubble removal (BARR), 90–91

  Bush, George H. W., 184

  Bush, George W., 157, 163–65, 172–74, 176, 178, 184–85, 198, 201

  Campanella, Richard, 206–7

  Canizaro, Joseph, 195, 197–98

  capital losses, 41–46

  Capital in the Twenty-first Century (Piketty), 42, 220

  Caracol, 118–22

  Center for Economic Policy and Research (CEPR), 118

  Center for International Earth Science Information Network (CIESIN), 51

  Center for Research on the Epidemiology of Disasters (CRED), 28, 31, 39

  Centers for Disease Control, 34, 80

  Central Intelligence Agency (CIA), 42, 122, 140

  Chayes, Sarah, 97

  Cheney, Dick, 163, 201

  Chertoff, Michael, 164, 184

  Chess, Caron, 182

  Children’s Blizzard of 1888, 31, 33

  Children’s Blizzard, The (Laskin), 31

  Chile, 6, 12, 60, 65, 88, 109–15, 121–22, 150

  chimeres, 87

  civil rights, 185, 205

  Clarke, Lee, 182

  Clarkson, Jackie, 179

  climate change, 3–4, 25–28, 58–59, 78, 131, 173–74, 213, 222

  Clinton, Bill, 116–19, 174

  Clinton Foundation, 119

  Clinton, Hillary, 118–19

  Colbert, Stephen, 26

  Collier, Paul, 116–17

  Condon, Emmit, 32

  corruption

  death reporting and, 91

  disaster and, 71, 76–77, 97, 122, 137, 202

  Haiti and, 95–96, 99, 109–10

  Hurricane Katrina and, 1

  militarization and, 223

  Myanmar and, 140, 145

  New Orleans and, 162–63, 173

  Philippines and, 157

  poverty and, 26, 48

  Coyle, Diane, 42, 45

  creative destruction, 13–14, 110, 131–32, 154, 192, 205

  Cuba, 49

  Culture of Calamity (Rozario), 193

  cyclones

  Bohla, 64

  death tolls and, 35–37

  measuring, 63

  meteorology and, 61, 63–65

  Nargis, 31, 141, 145–50, 154–56, 158, 163, 217

  poverty and, 77–79

  Saffir-Simpson scale, 63

  Sidr, 64

  Superstorm Sandy compared to, 80–81

  study of, 30, 35–37, 58–59

  tracks of, 58–59

  Dacy, Douglas, 14

  Daley, Richard M., 31, 150

  Davis, Mike, 196–97

  De Bernardinis, Bernardo, 69–70

  death tolls

  Cyclone Nargis and, 146–48

  disaster recovery and, 19

  economic loss and, 16

  Haiti earthquake and, 89–90, 101, 109, 122

  Hurricane Katrina and, 166–68, 171, 197

  Indian Ocean tsunami and, 128

  poverty and, 8
1, 101, 136–37

  reporting, 30–34, 37, 39–41

  Superstorm Sandy and, 208

  Deep Water Horizon, 17

  Denial of Disaster (Hansen and Condon), 32

  disease, 34–36, 59, 80

  disaster risk reduction (DRR), 4, 23, 30, 220

  displacement, 37–39, 64–65, 103, 125, 135, 156, 219

  DMORT (Disaster Mortuary Operational Response Team) facilities, 89

  Doctors Without Borders, 35, 89

  Dominican Republic, 54, 120

  donations, relief efforts and, 92, 117, 122, 129, 131, 137

  drought, 12, 19, 35, 37–38, 45, 59, 222, 256–7n29

  Duvalier, Papa Doc, 87, 104, 117, 141–42

  Earth Shook, the Sky Burned, The (Bronson), 32

  earthquakes

  death tolls Haiti and, 89–90, 101, 109, 122

  GDP and, 42, 86, 110, 116, 121

  Japan and, 28, 64–65, 74–75, 132–38

  predicting, 2–3, 61, 64–70, 77, 94, 97–98

  wealth and, 56–58, 64–77

  see also Haiti; seismology

  Ebola, 17, 36, 48

  economic loss, 16–17, 39–40, 42, 231

  Einstein, Albert, 24

  Eisenhower, Dwight, 185

  elite panic, 182–83

  Emergency Events Database (EM-DAT), 28

  famine, 19, 26, 35, 252n29

  farming

  China and, 96

  Cyclone Nargis and, 147

  drought and, 38

  Haiti and, 85–86, 119

  Japan and, 134

  Myanmar and, 147, 155–56

  New Orleans and, 161, 210

  Okeechobee hurricane and, 166–67

  recovery and, 96, 219

  Farmland Law, 155

  faults, 66–70, 75, 93, 98, 135–36

  Enriquillo-Plantain Garden Fault, 66, 119–20

  Paganica Fault, 98

  San Andreas Fault, 66

  Septentrional Fault, 119–21

  Federal Emergency Management Agency (FEMA), 18, 30, 164–66, 174–78, 194, 202, 209

  Ferguson, Missouri, 213–15, 221

  Ferris, Elizabeth, 92

  Feynman, Richard, 2, 5, 24–26, 224

  floods

  cyclones and, 63, 157

  death tolls and, 33–35

  disasters and, 17–19, 21, 45, 59, 221

  displacement and, 37–38

  Haiti and, 121

  Hurricane Katrina and, 161–62, 165–72, 175, 179, 182–83, 199–200

  injuries and, 35

  Pakistan and, 92

  positive aspects of, 10, 12–13, 59, 147

  Superstorm Sandy and, 208–9

  foreshocks, 68–69

  Fraiman, Keren, 173

  French Quarter, 1, 179, 196, 203–4

  Fukushima nuclear power plant, 132–34

  Galveston Flood, 167, 170–71

  GDP (gross domestic product)

  calculating, 42

  disasters and, 10–11, 14, 47, 226

  flaws as measurement tool, 45

  Haiti earthquake and, 42, 86, 110, 116, 121

  inequality and, 42–46

  Japan and, 133

  maps and, 51, 53, 55, 57

  Sri Lanka and, 131

  wealth and, 140

  U.S. and, 228–29, 233

  World Bank assessment of, 122

  GDP: A Brief but Affectionate History (Coyle), 42

  genetically modified organisms (GMOs), 3

  Global South, 53

  Greatest Hoax, The (Inhofe), 27

  Greely, Adolphus, 32

  Gregory, Jesse, 201

  Haiti

  2010 earthquake and, 88–99

  aftermath of earthquake, 102–9

  building codes in, 94–97

  Cité Soleil, 85–88

  class and, 83–85

  compared to earthquake in Chile, 109–16, 121–23

  death toll in wake of 2010 earthquake, 88–90

  donations to, 92–93

  factors contributing to post-quake disaster, 99–102

  fault lines and, 119–21

  NGOs and, 87–88

  profiteering and, 83–85

  recovery, 116–19

  social inequality, 88

  unemployment and, 86

  variation in damage from earthquake, 97–99

  Halliburton, 201

  Hansen, Gladys, 32

  hazard, 23

  High Plains blizzard of 1888

  see Children’s Blizzard

  Human Development Index (HDI), 111, 140, 160, 226

  Hurricane Andrew, 14, 166

  Hurricane Andrew: Ethnicity, Gender, and the Sociology of Disaster (Morrow), 14

  Hurricane Katrina

  accountability and, 157

  disasters and, 1–2, 5, 147

  evacuation and, 149

  militarization and, 113

  poverty and, 149

  rebuilding after, 131

  victims, 37, 39, 41, 81, 89

  violence and, 104–5, 113

  see also New Orleans

  India, 46, 48, 63, 67, 71, 79, 148, 227, 252n29

  Indian Ocean, 89, 127–28, 132

  Inhofe, James, 27

  Institute for International Economic Studies, 29

  Institute for Seismic Research, 80

  Institute of Behavioral Science at the University of Colorado, 178

  Insurrection Act, 184–85

  Inter-American Development Bank (IDB), 119

  Intergovernmental Oceanographic Commission (IOC), 127

  International Monetary Fund (IMF), 42

  Italy, 43, 69, 94, 98

  Jackson, Alphonso, 196, 200, 204

  Japan

  disasters and, 6, 11–12

  earthquakes and, 28, 64–65, 74–75

  growth, 46

  Kanto earthquake, 188

  Korea and, 188–89

  Myanmar and, 80, 140–41

  “the Thing” and, 215, 218

  Tohoku earthquake, 132–38

  tsunamis and, 60, 123, 126

  Typhoon Warning Center, 145

  Kahneman, Daniel, 4, 178

  Karan, Donna, 120

  Katz, Bruce, 160

  Katz, Jonathan, 83, 86, 94–95

  Kellogg Brown & Root (KBR), 201–2, 216

  Kennedy, John F., 185

  King, Rodney, 184–85, 213

  Klinenberg, Eric, 31, 41

  Kouchner, Bernard, 154

  Kunreuther, Howard, 14, 116

  L’Aquila earthquake, 69–70, 72, 98, 103

  LA riots, 184–85, 213

  Larkin, Emma, 150

  Laskin, David, 31

  Leadership Dispatches (Urseem, Kunreuther, and Kerjan), 116

  liquefaction, 74–75

  Lisbon earthquake of 1755, 99, 186, 193

  Logan, John, 194–95, 198, 202, 204

  Loma Prieta earthquake, 35, 74, 101, 104

  looting, 18, 20, 105–9, 111, 113–15, 178–84, 186–88, 209, 217–19

  Louisiana Department of Wildlife and Fisheries (LDWF), 176

  LTL Strategies, 90–91

  Manhattan Project, 25

  McClelland, Mac, 101

  Meigs, Montgomery, 30–32, 39

  meteorology, 13, 27–28, 33, 61, 80, 148, 171

  militarization

  Ferguson and, 213–14


  Rodney King riots and, 213

  Mill, John Stuart, 21

  MINUSTAH, 87–88

  Mismeasuring Our Lives (Stiglitz), 42

  Mississippi River Gulf Outlet (MRGO), 169–71

  moral hazard, 23, 252n16

  Morial, Marc, 197

  Morrow, Betty Hearn, 14

  Mother Jones magazine, 101, 196

  Myanmar

  Cyclone Nargis and, 145–48

  economic situation, 143–45

  history, 154–55

  land management, 154–56

  military government, 150–52

  overview, 139–43

  poverty and, 149–50

  reaction to Nargis, 148–54

  Nagin, Ray, 157, 162–63, 165, 180, 195, 197

  National Guard, 180–81, 184–84, 214

  National Oceanographic and Atmospheric Administration (NOAA), 30, 32, 147

  National Public Radio (NPR), 96

  natural disasters

  analysis of, 17–21

  capital losses and, 41–46

  defined, 15–16

  economy and, 11–15

  efforts to predict, 9–10, 22–24

  fatalities and, 29–32

  GDP and, 10–11

  hazard and, 23

  individuals “affected” by, 38–39

  injuries and, 35–38

  overview, 9, 48–49

  phases of 17–21

  politics and, 30–34

  rebuilding following, 21–22

  science and, 22–24

  social change and, 15–17

  social harm and, 39–48

  statistics on, 27–29

  study of, 24–27

  Natural History of Destruction, The (Sebold), 22

  Nemcova, Petra, 120

  neoclassical growth theory, 46

  Nepal, 87, 118

  New Orleans

  corruption, 162–63

  elite panic and, 182–87

  FEMA and, 174–76

  framing of disaster, 176–78

  impact of Katrina on, 167–72

  Katrina and, 162–72

  media coverage of, 178–82

  Myanmar and, 172–74

  overview, 159–60

  poverty and, 160–62

  race and, 187–90

  waterways, 169–72

  see also Hurricane Katrina

  New Zealand, 74, 76, 207

  night light maps, 53–57

  nongovernmental organizations (NGOs), 10, 33, 87, 103, 129–30, 144, 151–52

  Nordhaus, William D., 53, 78

  North Korea, 31, 54, 256–7n29

  Obama, Barack, 214, 273n2

  Okeechobee hurricane, 166–67

  Other Side of Sadness, The (Bonanno), 22

 

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