The article reviews the macroeconomic consequences of natural disasters based on the ECLAC methodology, which separates direct physical
damage from indirect damage and additional or secondary effects.
A study of the impact of natural disasters on long-term economic growth and development has shown that the scarcity of financial resources
after a natural disaster reduces future growth and requires the disclosure of risks associated with dangerous natural phenomena for three reasons.
Firstly, there are large opportunity costs associated with diverting scarce financial resources into relief and disaster recovery efforts.
Secondly, natural disasters can damage an already complex budgeting process. Thirdly, natural disasters place high demands on international
aid resources, diverting resources from development. Natural disasters have a negative impact on both the short and long term. These developments
refute the somewhat simplistic notion of a general decline in vulnerability to natural disasters as the economy grows. Instead, a more sophisticated
perspective needs to be adopted and applied when conducting detailed macroeconomic risk assessments. Based on the results of such assessments,
the risks associated with natural hazards should be included in general development policies and plans.
Risk management strategies should also reflect the fact that disasters occur in different hazard categories (climatic, geophysical or epidemic)
and entail different risk reduction options.
It is also necessary to assess the experience gained from specific events and, if necessary, take appropriate action. Disasters can cause policy
and institutional innovation changes that ultimately benefit, in some cases, not only in reducing vulnerability but also in supporting economic growth
and development: deregulating agricultural investment, applying climate forecasting to reduce the impact of climate variability, financial risk
management mechanisms.
In order to manage risks and mitigate the effects of natural disasters by informing users of financial statements about possible side effects of
the pandemic, the issue of disclosure and recalculation of financial statements was considered to reflect the effects of coronavirus on companies
and assess financial risks.
Institutional obstacles to Brazil’s economic growth and development
