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Secondary Effects

Secondary impacts depend very much on the structure of economies and on their tenacity. The effects are much worse when many other sectors depend a lot on the affected sector (e.g. tourist hotels are one of the main markets for food or handicraft production); or if there is a huge impact on the government expenditure; or if the government finances are poorly handled and managed. Generally, the more developed economies are more resilient than those economies which are less developed.

Surprisingly, the large scale economic effects of such natural disasters are mostly quite short-lived. It has been proven unusual to find large drops in national income or dips in the annual growth rate from these catastrophes. Sometimes, natural disasters can also have a positive effect, because of increased spending on the rebuilding of infrastructure and more concerns over safety matters.

The refugee camps housing the internally displaced people also had squalid conditions and were unfit for living in. Hence many wounds were only hastily treated as there was a shortage of manpower. Luckily for the injured, many volunteers from over 10 countries joined in the relief efforts to provide adequate healthcare services for them.

References

  • The Indian Ocean Tsunami: what are the economic consequences?. Retrieved March 7, 2005, from http://www.odi.org.uk/tsunami/tsunami.html
  • Coral reefs may take years to recover from tsunamis. The Manila Times Internet Edition. Retrieved March 7, 2005, from http://www.manilatimes.net/national/2004/dec/30/yehey/opinion/20041230opi8.html
  • Tsunami consequences. NewsFromRussia.com. Retrieved March 7, 2005, from http://newsfromrussia.com/world/2005/01/03/57689.html

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