THE EFFECTS OF NATURAL DISASTER ON GLOBAL

ECONOMIC S
NAME : 1. RUSMIRA BINTI YUSOH (026209) 2. SITI KHADIJAH BINTI JAMALUDIN (026564) 3. ZUFATIHAH BINTI ZULKIFLI (026522) 4. SUZIELA BINTI AZIZ (025924)

CONTENTS

TITTLE

PAGES

1) INTRODUCTION 2) TYPES OF NATURAL DISASTER 3) EFFECT HURRICANE KATRINA TO ECONOMICS 4) CONCLUSION

2 3-4 5-7 8

INTRODUCTION
DEFINATION OF NATURAL DISASTER NATURAL MEANS EXISTING IN OR DERIVED FROM NATURE OR PROCESSED BY HUMANKIND. DISASTER MEANS A SUDDEN ACCIDENT OR A NATURAL CATASTROPHE THAT CAUSES GREAT DAMAGE OR LOSS OF LIFE NATURAL

DISASTER MEANS ANY NATURAL PHENOMENON THAT CAUSES GREAT DAMAGE AND LOSS OF LIFE. SOMETHING THAT HAPPENS IN NATURE ANAD CAUSES A LOT DAMAGE OR KILL A LOT OF PEOPLE(MARRICANE DICTIONARY)

TYPES OF NATURAL DISASTER 1) HURRICANE KATRINA The economics effect of Hurricane Katrina, which hit Louisiana, Texas and Mississippi in late August 2005. One of the natural disaster that effect the movement of goods and services, world prices for energy, building materials,

individual spending choices and company profitAnd this does not account for damage to the economy caused by potential interruption of the oil supply and exports of commodities such as grain. Also, before Hurricane Katrina, the region supported approximately one million non-farm jobs, with 600,000 of them in New Orleans. As such, the total economic impact to Louisiana and Mississippi may exceed $150 billion.

2) TSUNAMI The tsunami was happened in December 2004.The Tsunami hit world on 26 December. The tsunami causes many people death and an unemployment increasing. More than 120,000 people in India, Sri Lanka, Thailand, Indonesia and other South Asian country.

3) FLOODING Bangladesh lost more than 130000 people in the year 1991.From flooding brought on by a cyclone.

4) VOLCANO The eruptions of a volcano in Colombia at 1985. Resulted in a massive mudflow that left 23,000 people dead.

5) HARRICANE MITCH

In 1998 Hurricane Mitch left 2million people homeless and 10,000 people dead in Nicaragua and Honduras.

6) EARTHQUAKE In 1976, an earthquake in china killed 255,000.

THE EFFECTS OF HURRICANE KATRINA 1) Oil production The storm interrupted oil production, importation, and refining in the Gulf area, thus having a major effect on fuel prices. Before the storm, one-tenth of all the crude oil consumed in the United States and almost half of the gasoline produced in the country came from refineries in the states along the Gulf's shores. Power outages in the wake of Katrina have also caused distribution problems for oil and natural gas. Pipelines which move petroleum products from places like Houston to areas of the east coast have had their flows interrupted because power outages shut down the pumps that kept materials flowing.

2) Highest Unemployment Rates The storm will affect the country unemployment. If people no jobs means that no money was being spend. The lacks of revenue will the resources of the effected communities and states for the year to come. No taxes were being collected by the government.

3) Agriculture and Forestry -The United States Department of Agriculture (USDA), the national impact of Hurricane Katrina on Gulf Coast crops was minimal, with most of the damage borne by minor producers of major crops (corn, soybeans, and cotton). -The main impact of the storm on agriculture is likely to involve ocean shipping and exports. In 2004, 22% of U.S. wheat exports, 71% of corn exports, and 65% of soybean exports passed through Gulf ports. -Forestry constitutes a major industry in southern Mississippi. The Mississippi Forestry Commission, Hurricane Katrina caused significant damage to 1.3 million acres (5,300 km) of forestland in the state. -The greatest damage occurred from the coastal counties northward to Laurel, with heavy damage to pine forests in Hancock, Harrison, and Pearl River counties.

4) Utilities -The local electrics utility Entergy Corporation was impacted severely, and Entergy New Orleans filed for bankruptcy protection on September 23, 2005. -The company cited lower revenue and storm restoration costs as the primary cause. Parent company Entergy Corporation promptly arranged $100 million in financing.

5) Entertainment

-Katrina forced many casinos along the Mississippi Gulf Coast to close and evacuate. The Hard Rock Hotel & Casino was scheduled to open the first week of September, but did not open until June 30, 2007. -The Beau Ravage was severely damaged by water that reached the third floor, but seems to have suffered the least damage of the beachfront casinos

CONCLUSION

Nature disasters give highest effect to the economics. The government should take precaution so that nature disasters not give the large impact for the

economics. The governments have to prepare early to prevent the stable economics. Natural disasters give more bad impact than good.