• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Macro-Economic Consequences Of The Tsunami In South-Eastern Asia

Extracts from this document...


The Macro-Economic Consequences Of The Tsunami In South-Eastern Asia The Macro-Economic Consequences Of The Tsunami In South-Eastern Asia During the course of this essay I will illustrating the macro-economic consequences of the catastrophic tsunami that hit South-Eastern Asian coastlines in December 2004. Figure 1: The Indian Ocean earthquake was an undersea earthquake that occurred on December 26, 2004. The earthquake generated a tsunami that was among the deadliest disasters in modern history. At a magnitude of 9.0, it was the largest earthquake since 1964. The earthquake originated in the Indian Ocean, off the western coast of northern Sumatra, Indonesia. The resulting tsunami devastated the shores of 11 countries in South-Eastern Asia (refer to figure.1) with waves reaching 50 feet high. At least 160,000 people are known to have died as a result of the tsunami, and the count not yet complete. The true final toll may never be known due to bodies being swept out to sea. Relief agencies warn of the possibility of more deaths to come as a result of epidemics caused by poor sanitation. Natural disasters on this scale have less visible, but critically important, economy-wide (macro-economic) effects. This is the consequence of the impact of damage to productive sectors (fishing and tourism for example) ...read more.


The tsunami is what insurers fear most: a low-frequency, high-consequence incident that causes extensive, costly damage with very little way to predict where and when it will occur. The insurance industry was not having a good year to begin with, following four hurricanes in Florida. However, since the insurance market is not as well developed in the areas affected by the tsunami, and because property values are lower, the industry will not suffer as it has for other major disasters. For example, Hurricane Andrew cost insurers $18 billion to $19 billion; the terrorist attacks on the World Trade Centre could cost more than $40 billion. Early estimates indicate insurers may be liable for about $10 billion as a result of the tsunami. (See Appendix.) However all is not bad news as many of the large global companies were paid premiums in dollars at a time when the currency was valued higher than it is now. Appendix 1. The Bank of Thailand (Central Bank) has released some preliminary estimates on the economic impact of tsunami: - Tourism business of the six affected provinces normally worth about 78 billion Baht (USD 2,000 millions) per year, or 1.3 % of GDP. The impact of the disaster on the GDP could stand at around 0.1 % per month. ...read more.


Bangkok Joe's Dumpling Bar and Caf´┐Ż owners Mel Oursinsiri and Aulie Bunyarataphan, both from Thailand, are offering customers a tasty way to aid the millions affected by the recent tsunami in Asia. For a three week period, for every three-course lunch and dinner menu ordered, the restaurant will donate five dollars to the Royal Thai Embassy, Washington, DC's tsunami relief fund. T.H.A.I. in Shirlington, Bangkok Joe's sister restaurant, will donate five dollars to the relief fund every time a guest orders the restaurant's monthly special during January. 2. On 9 January 2005 at 4 p.m., the American Jewish Committee is joining with local civic religious and ethnic leaders, as well as diplomatic representatives, for a special prayer service. "A Jewish Memorial Service for Tsunami Victims" at Adas Israel Congregation, 2850 Quebec Street, NW. Attendees include Deputy Defense Secretary Paul Wolfowitz, a former ambassador to Indonesia; Ambassador Soemadi Djoko M. Brotodiningrat of Indonesia; Ambassador Ronen Sen of India; Ambassador Devinda Rohan Subasinghe of Sri Lanka; Ambassador Kasit Piromya of Thailand; and Ambassador Danny Ayalon of Israel. Prayers will be led by religious leaders from the Jewish, Muslim and Buddhist faiths. 3 3. On 9 January 2005 at 16.00 hrs., the Royal Thai Embassy and Thai Christian Community, Washington D.C. will hold a memorial service for the tsunami victims. 4. On 8 January 2005, the Thai Community in Dallas, Texas will organized a fundraising event to help the tsunami victims at Sterling Hotel, Dallas, Texas. ************************* ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Free essay

    The Economic Impact of the London 2012 Olympics

    will l??d t? ?dditi?n?l priv?t? c?n?umpti?n, th?r? ?r? ?th?r v?ri?bl?? th?t will ch?ng? in ?n ?c?n?mic ?y?t?m ?? w?ll, ?uch ?? w?g??, pric?? ?nd th? ?xch?ng? r?t?. Th? inclu?i?n ?f th??? v?ri?bl?? l??d? t? ? f?rm ?f m?d?lling kn?wn ?? c?mput?bl? g?n?r?l ?quilibrium m?d?lling, m?r? ?f which will b?

  2. Retailing In India - A Government Policy Perspective

    All investments, foreign and domestic are made under the expectation of future profits. The economy benefits if economic policy fosters competition, creates a well functioning modern regulatory system and discourages 'artificial' monopolies created by the government through entry barriers. A recognition and understanding of these facts can result in a more positive attitude towards FDI.

  1. An Empirical Investigation into the Causes and Effects of Liquidity in Emerging

    The start of 2004 saw strengthening fundamentals in emerging economies, with surging commodity prices, fiscal consolidation in key countries, increased foreign reserve holdings and shifts to floating exchange rates. This was reflected in a number of credit rating upgrades in significant members of the EMBI-G: Indonesia, Russia, South Africa and Turkey.

  2. The Japanese Occupation - Concept of Great East Asia Co-Prosperity Sphere

    Men were conscripted for military and paramilitary service or for the Indian National Army Japanese 'divide and rule' policy as in Malaya and Singapore or in Burma aggravated the hostility between ethnic communities that had been latent before the occupation period, such as ill feelings between Chinese and Malays or Burmans and Karens.

  1. This report will establish the opportunities and threats presented to Sony by the EU ...

    But the problem with this is that Sony ignores cultural differences when using the same advert in each country. Sony can now realise they are gaining economies of scales through buying in bulk due to Sony producing TV's. Standardisation means for Sony that they don't have to employ many workers

  2. Economic growth in South Korea

    and United States into South Korea to industrialize the country and to promote the economics' growth * The Park Chung Hee regime was the turning point and all the Economic Development Plan that was created since 1961 to late 1980s had a wide effort to develop South Korea's economic growth

  1. The Economic Consequences of September 11th

    "Numerous restaurants were forced to close and others cut staff due to the spill-over effects." (Fiscal Policy Institute, Sept 28 2001, Economic Impact of the September 11 World Trade Center Attack) "An estimated 125,000 New York jobs will be lost in the fourth quarter of 2001 as a direct result of the attack.

  2. The Causes and Consequences of Economic Growth - Why do some countries grow faster ...

    These can be addressed by use of government intervention. The minimum wage and progressive income tax system in thy UK are designed to attract people to work, (therefore addressing the first and second objectives) while by providing benefits and bonuses to those who work longer will address the third.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work