Impact of Natural Disasters on Production Networks and Urbanization in New Zealand

Abstract

This chapter summarizes New Zealand’s vulnerability to various types of disaster along with highlighting its disaster management structures. It uses the series of earthquakes that affected Christchurch, New Zealand’s second largest city, between September 2010 and early 2012 a case study. I describe the significant effects of the events on the population, labor market, reported crime, urbanization and location of businesses and production of the region. The case study suggests that New Zealand’s arrangements for natural disasters worked well in most regards. The case study also highlights the advantage of international co-operation in the response to natural disasters. It also suggests that while high rates and levels of disaster insurance ameliorate the financial impact, they can complicate achieving effective recovery. The lag before insurers will accept new risks can also create delays and impede the momentum to recovery. The final section of the paper draws from New Zealand’s recent disaster experience in Christchurch to present some policy recommendations relevant to New Zealand and the East Asia region.