A WITCH OVER THE WEATHER The weather this spring around the world has been something to behold. From the numbers and sizes of tornadoes in the United States, to the flooding of southeastern Europe and especially the Danube River Basin, to the flooding of Fort McMurray in Alberta and the heavy rain events in Nova Scotia,the landslides in Bududa Uganda, there seems to be a change in the climate and we need you to take notice of this. In fact, as I sit and write this on August 28 2013, states of emergency have been declared in many parts of the world from Africa to communities in the west and East due to weather changes. Events like these happen every year, somewhere on the planet. But so many wild events have occurred in such a short period of time, it does make one wonder. Insurance companies have certainly taken notice. In some cases they’re denying coverage for some types of disasters while in others the cost of insurance is creeping higher. It may be out of reach for some people and businesses already. And while governments that are able and responsible are expected to provide some financial support to those affected, the increasing costs mean this support is likely to become harder to obtain. In 1975 losses amounted to $10 billion while in 2010, they had increased to $400 billion. The value of infrastructure has obviously increased over that period, but this reflects a forty percent increase from 1975. In a recent article in Environmental Leader, the United Nations was quoted as indicating, “economic losses linked to natural disasters are out of control, soaring past $100 billion annually for three consecutive years.” In fact, in the 21st century so far, the direct losses from natural disasters such as floods, earthquakes, drought, cyclones, etc. are estimated at $2.5 trillion. That is a significant percentage of the total economic activity of the globe. There have been in excess of 4,000 disasters since 2000. This assessment is based on a UN report entitled: Global Assessment Report on Disaster Risk Reduction, which considered events in 56 countries around the world. The UN report notes that small and medium enterprises are particularly at risk. They surveyed 1,300 businesses in six major and worlds leading cities in the U.S, of which three-quarters reported disruptions in electricity supply, telecommunications breakdowns, disruptions in water and sewer services. Only 14 per cent of the companies surveyed had embarked on basic emergency or contingency planning. We in Africa and ASEAN Economies may think we’re relatively immune to the situation that largely affects America, although I would remind everyone of Hurricanes whether in Africa Asia or even in snow capped areas. But with increasing global supply chains, many companies here as elsewhere can be negatively affected. The same article reported that Toyota had losses of $1.2 billion attributed to parts shortages due to the Japanese earthquake and tsunami. What happens if your suppliers have serious disruptions due to an earthquake or killer typhoon that last weeks or months? What plans have you made to mitigate problems due to natural disasters in your key market areas if they become more common? Have you explored what your government is thinking about if the climate continues to change and weather-related events intensify? We don’t know for certain that these events will increase and intensify, but the predictions are that this will be the case and even more severe. Are you prepared for what the future will bring as it relates specifically to natural disasters?Get ready because, this is all our making.We shall have to adapt to these disaters or do everything within your power to protect mother Earth and its inhabitants.
Posted on: Wed, 28 Aug 2013 11:13:12 +0000