Refocusing disaster aid

The coronavirus outbreak calls for epidemic catastrophe insurance: Evidence from China

The COVID-19 shows significant "catastrophe" characteristics. It has put tremendous pressure on various countries' government finances. A few studies have realized that insurance could be applied in the rescue of catastrophic epidemics to relieve government pressure and improve rescue efficiency. However, most of these studies are based on qualitative analysis, with few quantitative calculations to prove whether it is feasible. Therefore, this article discusses the insurability of epidemic catastrophe insurance and proposes a novel quantitative methodology that measures insurance funds, estimates pandemic-induced losses, and integrates reinsurance analysis to evaluate its effectiveness. Based on epidemic loss data collected from public information in China, the empirical study shows that China's epidemic catastrophe insurance fund can reach 50 billion yuan 5 years after its establishment and over 120 billion 10 years later, which can cover the losses caused by mild and severe epidemics. The epidemic catastrophe fund is capable of meeting claims requirements and effectively covering epidemics of varying severities. Furthermore, the reinsurance model demonstrates that insurers can transfer risks at a relatively reasonable cost, thereby covering losses from extreme epidemics. The findings reveal the effectiveness of epidemic catastrophe insurance, suggesting that worldwide countries incorporate epidemics into their catastrophe insurance to aid government in responding to future catastrophic epidemics.

The association of cultural and contextual factors with social contact avoidance during the COVID-19 pandemic

As a first line of defense to the COVID-19 pandemic in 2020, people reduced social contacts to avoid pathogen exposure. Using a panel of countries, this research suggests that this was amplified in societies characterized by high social support and future orientation. People reacted more strongly in dense environments; government orders had more effect in high power distance societies. Conversely, a focus on accomplishments was associated with lower changes. Understanding people’s actual behaviors in response to health threats across societies is of great importance for epidemiology, public health, international business, and for the functioning of humanity as a whole.

Examining the role of dialogic communication and trust in donation-based crowdfunding tasks using information quality perspective

Purpose

The study explores the role of dialogic public communication and information quality (IQ) in evaluating the operational performance of donation-based crowdfunding (DBC) tasks. These tasks are primarily used to support disaster relief operations. The authors also test the influence of cognitive trust and swift trust as moderating variables in explaining the relationship between both IQ and dialogic communication with operational performance.

Design/methodology/approach

The authors used a primary survey to test the hypotheses. A total of 203 responses were collected from multiple crowdfunding platforms. The authors used archival data from task creators on donation-based crowdfunding platforms, and a structured questionnaire is also used to collect responses. Data are analyzed using Warp PLS 6.0. Warp PLS 6.0 works on the principle of partial least square (PLS) structured equation modeling (SEM) and has been used widely to test path analytical models.

Findings

The authors found out that the operational performance is explained significantly by the quality of information and its association with dialogic public communication. The results support the arguments offered by dialogic public communication theory and trust transfer theory in assessing the operational success of DBC. The study also confirms that cognitive trust positively moderates the relationship between IQ and organizational public dialogic communication and operational performance. It is also revealed that the duration of the DBC task has no significant control over dialogic public communication.

Practical implications

The study lays practical foundations for task creators on DBC platforms and website designers as it sets the importance of both IQ and dialogic communication channels. The communication made by the task creator and/or the DBC platforms with the donors and potential donors in the form of timely and appropriate information forms the key to the success of any DBC task. The study also helps task creators choose a suitable platform to improve performance.

Originality/value

The authors propose a unique framework by integrating two theoretical perspectives: dialogic public relation theory and trust transfer theory in understanding the operational performance of donation-based crowdfunding tasks. The authors address DBC tasks catering to disaster relief operations by collecting responses from task creators on DBC platforms. The study uniquely positions itself in the area of information and communication.

A disaster typology towards informing humanitarian relief supply chain design

Purpose

The purpose of this paper is to construct a typology of a disaster that informs humanitarian-relief supply chain (HRSC) design across the stages of disaster relief.

Design/methodology/approach

In addition to an interdisciplinary review of pertinent literature, this paper utilises a typology construction method to propose theoretically and methodologically sound dimensions of disasters.

Findings

Whilst semantic arguments surrounding the concept of a “disaster” are ongoing, the authors propose three typologies based upon six dimensions that serve as interdependent variables informing resultant HRSC design considerations. These are speed of onset, time horizon, spatial considerations, affected population needs, perceived probability of occurrence and perceived magnitude of consequence. These combinational and independent relationships of the variables offer insight into key HRSC design-making considerations.

Research limitations/implications

The study improves conceptual knowledge of disasters, distilling the concept to only the dimensions applicable to HRSC design, omitting other applications. The typologies provide empirical cell types based on extant literature, but do not apply the models towards new or future phenomena.

Practical implications

This paper provides HRSC practitioners with normative guidance through a more targeted approach to disaster relief, with a focus on the impacted system and resulting interactions’ correspondence to HRSC design.

Originality/value

This paper provides three typological models of disasters uniquely constructed for HRSC design across the various stages of disaster relief.

The orientation of disaster donations: differences in the global response to five major earthquakes

This study analyses the influence of gift giving, geographical location, political regime, and trade openness on disaster donation decisions, using five severe earthquakes that occurred between 2008 and 2012 as case studies. The results show that global disaster donation is not dominated by only philanthropy or trade interests, and that the determinants of donation decisions vary with the scale of the natural disaster and the characteristics of the disaster-affected countries. While gift giving exists in the case of middle-size earthquakes, political regimes play a very important part in the overall donation process. Countries with higher perceived corruption may donate more frequently, but those that are more democratic may be more generous in their donations. Generosity based on geographical proximity to the calamity is significant in the decision-making process for most natural disasters, yet it may have a negative effect on donations in Latin America and the Caribbean.

A methodological framework to operationalize climate risk management: managing sovereign climate-related extreme event risk in Austria

Despite considerable uncertainties regarding the exact contribution of anthropogenic climate change to disaster risk, rising losses from extreme events have highlighted the need to comprehensively address climate-related risk. This requires linking climate adaptation to disaster risk management (DRM), leading to what has been broadly referred to as climate risk management (CRM). While this concept has received attention in debate, important gaps remain in terms of operationalizing it with applicable methods and tools for specific risks and decision-contexts. By developing and applying a methodological approach to CRM in the decision context of sovereign risk (flooding) in Austria we test the usefulness of CRM, and based on these insights, inform applications in other decision contexts. Our methodological approach builds on multiple lines of evidence and methods. These comprise of a broad stakeholder engagement process, empirical analysis of public budgets, and risk-focused economic modelling. We find that a CRM framework is able to inform instrumental as well as reflexive and participatory debate in practice. Due to the complex interaction of social-ecological systems with climate risks, and taking into account the likelihood of future contingent climate-related fiscal liabilities increasing substantially as a result of socioeconomic developments and climate change, we identify the need for advanced learning processes and iterative updates of CRM management plans. We suggest that strategies comprising a portfolio of policy measures to reduce and manage climate-related risks are particularly effective if they tailor individual instruments to the specific requirements of different risk layers.

Catastrophe risk models for evaluating disaster risk reduction investments in developing countries

Major natural disasters in recent years have had high human and economic costs, and triggered record high postdisaster relief from governments and international donors. Given the current economic situation worldwide, selecting the most effective disaster risk reduction (DRR) measures is critical. This is especially the case for low- and middle-income countries, which have suffered disproportionally more economic and human losses from disasters. This article discusses a methodology that makes use of advanced probabilistic catastrophe models to estimate benefits of DRR measures. We apply such newly developed models to generate estimates for hurricane risk on residential structures on the island of St. Lucia, and earthquake risk on residential structures in Istanbul, Turkey, as two illustrative case studies. The costs and economic benefits for selected risk reduction measures are estimated taking account of hazard, exposure, and vulnerability. We conclude by emphasizing the advantages and challenges of catastrophe model-based cost-benefit analyses for DRR in developing countries.

Earthquake Hoax in Ghana: Exploration of the Cry Wolf Hypothesis

This paper investigated the belief of the news of impending earthquake from any source in the context of the Cry Wolf hypothesis as well as the belief of the news of any other imminent disaster from any source. We were also interested in the correlation between preparedness, risk perception and antecedents. This explorative study consisted of interviews, literature and Internet reviews. Sampling was of a simple random nature. Stratification was carried out by sex and residence type. The sample size of (N=400), consisted of 195 males and 205 Females. Further stratification was based on residential classification used by the municipalities. The study revealed that a person would believe news of an impending earthquake from any source, (64.4%) and a model significance of (P=0.000). It also showed that a person would believe news of any other impending disaster from any source, (73.1%) and a significance of (P=0.003). There is association between background, risk perception and preparedness. Emergency preparedness is weak. Earthquake awareness needs to be re-enforced. There is a critical need for public education of earthquake preparedness. The authors recommend developing emergency response program for earthquakes, standard operating procedures for a national risk communication through all media including instant bulk messaging.

Estimating least-developed countries' vulnerability to climate-related extreme events over the next 50 years

When will least developed countries be most vulnerable to climate change, given the influence of projected socio-economic development? The question is important, not least because current levels of international assistance to support adaptation lag more than an order of magnitude below what analysts estimate to be needed, and scaling up support could take many years. In this paper, we examine this question using an empirically derived model of human losses to climate-related extreme events, as an indicator of vulnerability and the need for adaptation assistance. We develop a set of 50-year scenarios for these losses in one country, Mozambique, using high-resolution climate projections, and then extend the results to a sample of 23 least-developed countries. Our approach takes into account both potential changes in countries' exposure to climatic extreme events, and socio-economic development trends that influence countries' own adaptive capacities. Our results suggest that the effects of socio-economic development trends may begin to offset rising climate exposure in the second quarter of the century, and that it is in the period between now and then that vulnerability will rise most quickly. This implies an urgency to the need for international assistance to finance adaptation.