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Scheme of presentation
I. Gujarat : Disaster on a day of celebration
II. Economic consequences of the earthquake
III. India: Natural Disaster Management
Background
Gujarat: an advanced state on the west coast of
India.
On 26 January 2001, an earthquake struck the
Kutch district of Gujarat at 8.46 am.
Epicentre 20 km North East of Bhuj, the
headquarter of Kutch.
The
Indian
Meteorological
Department
estimated the intensity of the earthquake at 6.9
Richter. According to the US Geological Survey,
the intensity of the quake was 7.7 Richter.
The quake was the worst in India in the last 180
years.
What earthquakes do
Casualties: loss of life and injury.
Loss of housing.
Damage to infrastructure.
Disruption of transport and communications.
Panic
Looting.
Breakdown of social order.
Loss of industrial output.
Loss of business.
Disruption of marketing systems.
A summary
The earthquake devastated Kutch. Practically all
Loss classification
Deaths and injuries: demographics and
labour markets
Effects on assets and GDP
Effects on fiscal accounts
Financial markets
Disaster loss
Initial estimate Rs. 200 billion.
Came down to Rs. 144 billion.
No inventory of buildings
Non-engineered buildings
Land and buildings
Stocks and flows
Reconstruction costs (Rs. 106 billion) and loss
Impact on GDP
Applying ICOR
Rs. 99 billion deduct a third as loss of current
value added.
ICOR of 4
Get GDP loss as Rs. 23 billion
Adjust for heterogeneous capital, excess capacity,
loss Rs. 20 billion.
Reconstruction efforts.
Likely to have been Rs. 15 billion.
Fiscal accounts
Differentiate among different taxes: sales tax,
Impact on Revenue
Sales tax losses for February and March 2001
Impact on Expenditure
Total relief expenditure (food supplies, medical
A Participatory Approach
Disaster management is primarily responsibility
of State Governments.
The Government of India supplements state
through policy and administrative response.
Policy
response comprises of activating
administrative machinery for assisting relief
measures and monitoring progress.
Administrative response comprises of primary and
secondary relief functions.
Secondary :
Rehabilitation through
military aid to civil
authorities
Coordinating activities of
state and voluntary
agencies
Preparing contingency
plans for crops, cattle
preservation, nutrition and
health measures.
Providing technical and
technological inputs for
drinking water.
Financial arrangements
Calamity Relief Fund (CRF) in each state.
The CRF allocation during the period 2000-
Thank You.