[Radix] Re: Radix Digest, Vol 70, Issue 1

[Omar Darío Cardona]

Oscar,

Interesting, however it is very dificult to have the evidence (it means too 
much information for the design an acceptable financial mechanism) that you 
are looking for..., because in order to have this informaction it is 
necesary to know, in the most of cases, the evaluation and data collection 
approach defined in advance of disasters. Usually there are not detailed 
information of the economic effects after disasters due to the lack of a 
suitable evaluation tools.

Probably, if a goverment is interested to avoid the price rising
of construction materials or other economic issues after disaster, the 
approach is not indeed, in my opinion, to use the insurance but other 
control measures (such as they use in case of financial shocks or to control 
contingency liabilities to maintain the fiscal sustainability or economic 
shortcomings such as inflation, rate of change, as so on). For example to 
provide banks of materials to aid people for the reconstruction, subsidies, 
continecy credits, compensation funds, among others.

All the best,

Omar

----- Original Message ----- 
From: "oscar guevara" <oscaraato at gmail.com>
To: "Omar Darío Cardona" <ocardona at uniandes.edu.co>
Cc: "Radix" <radix at ecie.org>
Sent: Monday, March 24, 2008 7:18 AM
Subject: Re: [Radix] Re: Radix Digest, Vol 70, Issue 1


> Dear Omar Dario
>
> Thanks for your message. The literature review of your proposed
> authors was made about six months ago.  With very important
> contributions, there is a significant difference between their scope
> of analysis and mine.
>
> My intention is to contribute to the design of economic instruments
> that can cope with the  "additional uninsurable risks", which are the
> consequence of the distortion of markets due to the prices rise after
> natural disasters. This proposition  will be illustrated using case
> studies. As a micro economic approach, it defers from the authors you
> mentioned, but it definitely wants to reinforce the key elements
> necessary to design public and private alternatives to finance the
> cost of future disasters.
>
> As I said before, the huge task now is to compile enough evidence,
> based on the local and first hand experience of the colleagues on this
> list.
>
> Best regards
>
> Oscar Guevara BSc MSc PgDip
> oscaraato at gmail.com
> skype: oscargap
> m: +44 07846574513