study conducted by the World Bank
2001which has estimated India
losing 2 percent of the GDP and 12
percent of the revenue per annum
due to natural disasters.
The new dimension of disaster
loss in global economy
It is being observed that in
the time of globalization, disaster
happening in one country is leading
to huge loss in other countries. The
damages of stock (infrastructure)
are determining the flow (revenue)
of either neighbouring or distantly
located countries. For example,
during the recent flood in Thailand,
the Federation of Thai Industries
estimated that the damage of the
record flooding to industry will total
$6.2 billion. Disruptions were felt
in Japan and to a lesser extent, in
United States because the closed
industrial estates host high-tech
and automotive manufacturers like
Western Digital, Seagate, Nissan,
Toyota, Isuzu, ON Semiconductor,
and TDK Magnecomp. Four
automotive factories, accounting
for 630,000 Toyotas and 240,000
Hondas annually, have closed.
Over 300 Japanese companies
were directly affected by the
disaster and estimates suggest
they will take months to recover.
In consumer electronics, the hard
disk drive (HDD) industry also
felt the flood’s effects. Californiabased Western Digital is expected
to see a 40 percent decline in its
exports from Thailand, which is
worth $6.5 billion a year, as two
of its plants in Bang pa-in have
been forced to close. Western
Digital produces 33 percent of the
world’s HDDs and sells to