Measuring Disaster Risk
Economic losses caused by natural disasters in Latin America and
the Caribbean 1900-2009 (US$ million)
Over the past century, population growth, unplanned urbanization, overexploitation of natural resources and the effects of climate change
have dramatically increased the economic costs of natural disasters for Latin America and the Caribbean, underscoring the need for
countries to better manage these risks.
50000
45000
43,015
33,964
35000
34,327
30000
25000
19,747
20000
13,038
15000
5,690
10000
5000
9
00
9
19
20
80
00
-1
-2
98
9
96
-1
60
19
19
40
00
-1
-1
94
90
9
9
Source: EM-DAT,
Bureau of Labor
Statistics and IDB
Staff calculations
729
19
Estimated Cost in
2009 US$ million
40000
Note: Disasters considered are earthquakes, floods and storms. All U.S. dollars figures were inflation-adjusted using the U.S. Consumer Price
Index For All Urban Consumers, as reported by the Bureau of Labor Statistics. Latin American and Caribbean countries included in the calculations: Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala,
Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Suriname, Trinidad and Tobago, Uruguay and Venezuela.
Disaster Deficit Index (2008)
8
For a natural disaster event that
can occur once every 100 years
7
7
6
5
1.94
1.53
0.29 0.13
0.1
Ch
a
in
o
ile
0.07 0.03
ge
Tr
Do
in
m
id
in
ad
an
d
Ar
liv
Bo
lo
Co
ag
ia
a
bi
m
aR
ica
ca
st
Co
Ja
Ec
m
ua
ai
do
r
a
al
a
em
m
ica
n
Gu
at
Pa
na
Pe
ru
ic
pu
Re
lv
Sa
El
bl
or
ad
gu
ra
ca
Ni
Ba
rb
ad
ur
nd
a
os
0
nt
0.32
ico
0.77 0.73
0.67
1
To
b
2.42 2.28
2
Ho
Source: IDB
2.8
3
ex
3.15 3.14
M
4
as
Index above 1 shows
economic costs That exceed
state financial capacity
The Disaster Deficit Index (DDI) shows potential economic losses countries can face and their governments’ financial capacity to address
such costs. It measures the state’s capacity to pay in order to recover from the economic losses if a catastrophic event – the type that can
occur once every 50, 100 or 500 years – were to happen in 2008. A DDI greater than 1.0 indicates economic losses would exceed the
state’s financial capacities (the greater the DDI, the greater the financial gap).
Local Disaster Index (2001-2005)
The Local Disaster Index (LDI) evaluates the social and environmental risks stemming from recurrent small-scale disasters, looking at
death tolls, numbers of affected people and damages to housing and crops. It measures a country’s propensity to suffer these types of
disasters and their cumulative impact on development. An index below 20 implies a high concentration of small disasters in a few local
areas. An indicator between 20 and 50 indicates a normal propensity and a number above 50 indicates that a majority of the areas of a
country’s territory suffer small disasters.
71
70
63
60
58
50
48
43
40
37
32
30
27
20
10
2
Ar
ia
liv
Co
ge
lo
Bo
m
nt
bi
in
a
a
r
Ec
M
ua
ex
do
ico
ru
Pe
ad
El
Co
Sa
st
lv
aR
m
na
Pa
Source: IDB
or
ica
0
a
Local Disaster Index
80
Prevalent Vulnerability Index (2007)
60
52
50
51
49
47
46
43
43
40
39
38
37
35
34
33
30
32
31
22
20
10
M
ge
nt
Ch
ile
a
in
o
ex
ic
bi
Ar
Co
Ec
lo
m
Pe
a
ru
r
do
ua
ia
a
liv
Bo
m
na
Pa
rb
ad
os
ca
a
in
id
ad
Ba
st
Co
d
an
an
Ri
e
liz
Be
go
To
ba
ic
bl
Re
pu
or
ad
lv
Sa
Tr
Do
m
in
ic
El
Gu
at
em
al
ca
Ja
m
ai
as
Ho
nd
ur
gu
ra
ca
a
0
Ni
Source: IDB
52
40
a
Prevalent Vulnerability Index
The Prevalent Vulnerability Index (PVI) gauges the fragility and exposure of human and economic activity in disaster-prone areas and the
social and human capacity to absorb the impacts of disasters. The three composite indicators that make up this index consider factors
such as demographic growth, population density, poverty and unemployment levels, soil degradation caused by human action, gender
balance, social expenditures and insurance of infrastructure and housing. An index of 20 or less indicates low levels of vulnerability while
an index between 20 and 40 indicates a medium level. An indicator between 40 and 80 shows high vulnerability.
Disaster Risk Management Index (2008)
50
45
45
43
41
41
38
37
34
35
33
29
30
27
27
26
25
24
23
23
20
15
10
5
go
ba
To
d
in
id
ad
an
El
Sa
lv
ad
or
ia
liv
Bo
do
ua
ru
Pe
Ec
ge
nt
in
a
a
al
Ar
at
em
ic
bl
Gu
r
Tr
Do
m
in
ic
an
Co
Re
pu
a
Ch
Ri
ile
ca
o
ic
st
ex
M
Pa
na
m
a
a
gu
ra
Ni
ca
m
ai
os
Ja
ad
Ba
rb
bi
m
lo
ca
0
Co
Source: IDB
45
40
a
Disaster Risk Management Index
The Risk Management Index (RMI) measures a country’s risk management performance. It combines several measures to evaluate the
capacity to identify and reduce risks, respond and recover from catastrophes as well as to provide financial protection and risk transfer. An
index below 50 is considered unsatisfactory; a number between 50 and 75 is considered safisfactory and an index above 75 is considered
outstanding.
http://www.iadb.org