Global Assessment Report on Disaster Risk Reduction 2015
Making development sustainable: The future of disaster risk management

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professionals will not be able to accumulate wealth in the same way as those with financial capital (Piketty, 2014

Piketty, Thomas. 2014,Capital in the Twenty-First Century, First Edition edition. Belknap Press.. .
At the household level, the middle class will continue to hold the majority of their assets in the form of property (houses) and labour (investments in education and skills). This increases their relative exposure and vulnerability to hazards disproportionately compared to those whose wealth depends on financial capital. As a result, growing income inequality will manifest itself as growing disaster risk inequality.
For example, the home of a typical middle-class family in the United States of America represents more than 50 per cent of the total value of the family’s assets (Trawinski, 2013

Trawinski, L. 2013,Assets and debt across generations: the middle-class balance sheet 1989-2010, Washington, DC: AARP Public Policy Institute.. .
). In the absence of insurance, damage to or loss of this asset in a disaster could halve the family’s wealth and constrain its ability to accumulate assets in the
future, as its members would be forced to spend their savings on alternative accommodation. The percentage of homeowners with flood insurance in Louisiana at the time of Hurricane Katrina was as low as 7.3 per cent in some of the most severely affected counties (Kunreuther and Pauly, 2006

Kunreuther, H. and Pauly, M. 2006,Rules rather than discretion: Lessons from Hurricane Katrina, Journal of Risk and Uncertainty, Vol. 33, Issue 1-2: 101-116.. .
Figure 9.10 Minimum wealth of top 50%, 10% and 1% of global wealth holders (base year 2008 = 100)
(Source: Credit Suisse, 2014

Credit Suisse. 2014,Global Wealth Report 2014, October 2014. Zurich: Credit Suisse Research Institute.. .
(Source: Piketty, 2014

Piketty, Thomas. 2014,Capital in the Twenty-First Century, First Edition edition. Belknap Press.. .
Figure 9.11 Economic growth vs income from capital
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