Right now, the entire world economy is engulfed into a financial crisis of sorts. The western world is paying the price for living beyond its means while emerging economies are facing a confidence/liquidity crisis as investors are seeking protection in safe haven assets. Deeming that prolonged existence of this crisis would threaten the world economy, policymakers across the world are busy chalking out a solution for the same. But if a London-based institute for international affairs is to be believed poor disaster management policies against natural calamities and not financial irregularities are the biggest threats to the world economy. The report goes on to say that the world economy is severely under-prepared for dealing with natural calamities putting human welfare at significant risk.
While it is true that preparing for extreme cases like tsunami and earthquake require greater scientific know-how and huge investment support which all countries can't afford. But what seems to be surprising is that many countries across the world are vulnerable to even predictable natural disasters and extreme weather conditions.
Take the case of cyclone Thane for instance that hit the coast of Tamil Nadu recently. While the rescue operations are being conducted and various relief packages too have been announced the administrative machinery has failed miserably in reaching out to the people on time. Restoration to normalcy may also take longer than usual as post disaster management services are progressing at a snail pace.
We believe that in order to deal with such events a clear contingency schedule is required. However, considering that such schedules don't happen to be on the priority list of the government they get discarded at the base level itself. True that Government's are engaged in various other political and budgetary obligations but, it's high time a serious consideration is given to disaster management services as well. And if not it can prove to be a major crisis for the world economy, far bigger than the current financial crisis, threatening the very existence of mankind on this planet.