Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction

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Chapter 1
hinterland and growing consumer markets (Containerisation International, 1998

Containerisation International. 1998.,Japanese port study initiated., Containerisation International, 1 August 1998.. .
a). Busan, Republic of Korea’s second largest city, in particular, stood to gain substantially (OECD, 2009

OECD (Organisation for Economic Co-operation and Development). 2009.,OECD Territorial Reviews: Trans-border Urban Co-operation in the Pan Yellow Sea Region., Paris,France: OECD Publishing.. .
Booming business never returned to the port despite efforts to improve competitiveness—efforts included reducing harbour dues, wharfage and land rental fees, and operating around the clock. It was like “pouring water into a bamboo basket” said Rinnosuke Kondoh, former deputy secretary general of the Tokyo-based International Association of Ports and Harbours (Containerisation International, 2003

Containerisation International. 2003.,The great cull., Containerisation International, 1 September 2003.. .
). Even without the earthquake, the port would have most likely gradually lost market share; but there is no doubt that its competitiveness was fatally weakened by the quake.
An investment of US$163 billion in rebuilding Kobe meant that its damaged infrastructure was quickly reconstructed. But this did not lead to sustainable economic recovery. Until 1995, Hyogo Prefecture was growing roughly in line with Japan as a whole. Except during the post-earthquake stimulus, when reconstruction spending gave a temporary boost, its economy then slid into a long decline (Hayashi, 2011).
Dimensions of disaster
The increasing frequency and scale of disasters is demonstrated by how businesses today suffer direct and indirect losses and a series of wider impacts and macroeconomic effects.
Businesses are increasingly concerned with disaster-related direct losses to their assets or indirect losses in their supply chain causing a fall in output and revenue, thereby affecting profitability. But business is affected not only as a consequence of these losses but also owing to wider impacts and macroeconomic effects i (Figure 1.1).
Businesses suffer direct losses when they have invested in locating factories, offices, plant, warehouses and other facilities in locations exposed to hazards such as floods, cyclones, earthquakes or tsunamis and without adequate investments to reduce risks.
But there are critical differences regarding how these losses affect business, depending on the kind
Figure 1.1 The different dimensions of disaster losses, impacts and effects on businessii
(Source: UNISDR, adapted from PwC)
Great East Japan Earthquake
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