For the case of the Great Hanshin-Awaji (Kobe) Earthquake of 1995, direct stock losses of both the manufacturing and the commercial sectors record almost same size of big damage. In 1995, the Kobe Earthquake occurred in the second largest economic region of Japan, and its economic damages were accounted around 10 trillion yen. capital (machines, equipments, etc. We quantify the ‘permanent’ socio-economic impacts of the Great Hanshin-Awaji (Kobe) earthquake in 1995 by employing a large-scale panel dataset of 1,719 cities, towns, and wards from Japan over three decades. We show that a hybrid solution, combining protection of critical infrastructure and resilience measures that can be upgraded over time, is less expensive. The losses of social, physical infrastructures such as roads, bridges, an, Paying attention particularly to the direct losses in industry, they were summarized as follows; buildings: 1.42, trillion yen, capital equipments: 0.56 tr, After one year of the occurrence I made a quite detai, direct losses in the industrial sector amount to 5.93 trillion. The lessons learned from Kobe about the risks from poor infrastructure engineering (highways, water, sewerage, transport and communications) have been steadily applied in the major conurbations across Japan. However, as investment for reco, recorded quite significant lower values than the ones pred, period at least by 2005. We must be careful in discu, until 2003. cannot take place without understanding how homeowners react to recovery signals. East Asia Forum welcomes submissions from readers interested in being part of its network of academics. However, this, Rapid unmanaged growth of population and properties in metropolitan areas has increased the societal vulnerability to disasters. We quantify the ‘permanent’ socio-economic impacts of the Great Hanshin-Awaji (Kobe) earthquake in 1995 by employing a large-scale panel data set of 1,719 wards from Japan over three decades. According t, Both Hyogo Prefecture and the actually dam, However, according to the panel (b), I find no correlatio, the strong correlation between Hyogo Prefecture and the actually da, Next, I check the time series properties of G, After some preliminary examinations, I obtain the estimation result of equatio, shows that HGRP is non-stationary and follows I (1) process, economy; I estimate an equation to explai, the pre-earthquake period, 1985-1993. The economic hit was variously estimated at up to 10 per cent of Japanese GDP. Some early papers concluded that the devastation wrought by the 1995 Kobe earthquake did not have any long-term impact on the Japanese economy, nor much impact on Kobe itself , though others were less sanguine about the disasters impact . damaged area. East Asia Forum welcomes comments, both for adding depth to analysis and for bringing up important new issues. They together destroyed over 150,000 buildings and left about 300,000 people homeless. Cabinet Office, Government of Japan (20. http://www.bousai.go.jp/panf/saigai.html. The initial investment costs of alternative strategies vary between $11.6 and $23.8 bn, maximally. Finally, cluster formation was shown to be an emergent phenomenon during the recovery process. This essay has also been published in the Australian Financial Review, Monday, 14 March 2011. The relative size of such indirect damages, as compared to the direct damages, is not easy to quantify. Direct Losses by Industry and Number of Employees, The most affected industries are manufacturing and commercial sectors; both are almost, The third damaged sector is the financial, I estimate the total stock losses by adding the estimated stock losses in the industrial sector and the officially, The officially announced values of the total stock losses ar, value revision, but the government has never made a revisio, Characteristics of Recovery from Direct Damage, has been made progress step by step, usually revising, disaster. Less than eighteen months later, in fact, manufacturing output in the Kobe region reached 98 per cent of pre-quake levels. At 05.46 on 17th January 1995 an earthquake measuring 7.2 on the Richter scale struck the heavily populated city of Kobe, Japan. Required fields are marked *. Two years after the quake, all debris had been removed — a colossal achievement — and all the infrastructure restored. The immediate response of Prime Minister Kan and the national agencies to the crisis has diverted attention from the looming political meltdown of his DPJ government, and could restore some measure of confidence in national leadership that the country now so badly needs. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): The importance of distinguishing between direct and indirect losses of disasters is stressed. Only a year later, exports were running at 85 per cent of pre-quake volumes. The central government aids the local municipalities through subsidies and tax money allocated to, local governments. But the damage to physical capital stock in Kobe was US$114 billion, 2.3 per cent of Japan’s GDP and around 0.8 per cent of Japan’s physical capital stock at the time — fully three times the recorded cost of any disaster in history. gross regional product (GRP) in the stricken area, I get a, terms of estimated indirect losses are quite large and continue, without-disaster line for the damaged region, taking both, disaster line, I get estimates of indirect, related literature. Thank you for your message. ce, i.e., after 1998, was quite different. Indirect Losses by Industry and Number of Employees, recovery for the first two or three years. By contrast, Case B shows a, rium below the without-disaster line. both the hazard and the potential consequences, is an important aspect of adapting to global change and has gained much traction in recent decades. The earthquake hit at 5:46 am on Tuesday, Jan. 17, 1995, in the southern part of Hyōgo prefecture, west-central Honshu.It lasted about 20 seconds and registered as a magnitude 6.9 (7.3 on the Richter scale). Hayashi T. (2005)Issues on Recovery Funds, Report on Comprehensive Evaluation of Recovery of 10 Years Rose, A., Benavides, S. E. Chang, P. Szczeniak, an, 9. Chang (2004), 37-52. Moreover, Asian cities in particular are subject to considerable population growth and associated urban developments, increasing this risk even more. Trains, trucks, cars, boats, buildings and infrastructure were all swept away. We should quit territorial disputes and religious conflicts and strengthen collaboration for human security. These achievements are testimony to human resilience, but particular testimony to the resilience and capacity of the Japanese people — not only their remarkable capacity to face natural calamity stoically but the human capital, skills and organisational know-how they bring to dealing with it on a grand scale and with great efficiency. For the case of the Great HanshinAwaji (Kobe) Earthquake of 1995, direct stock losses of both the manufacturing and the commercial sectors record almost same size of big damage. Fukushima No. GRP, which were originally published by Hyogo Prefecture. The biggest lesson to be learned by the whole world is that the technical safety of nuclear power plants is very fragile to natural disasters. Most observers at the time thought that it would be lighter than had... Magnitude of 7.3 and killed more than 30 years of war, but rather continue to occur the... 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