The normalisation of terror: the response of Israel's stock market to long periods of terrorism

Man‐made disasters such as acts of terrorism may affect a society's resiliency and sensitivity to prolonged physical and psychological stress. The Israeli Tel Aviv stock market TA‐100 Index was used as an indicator of reactivity to suicide terror bombings. After accounting for factors such as world market changes and attack severity and intensity, the analysis reveals that although Israel's financial base remained sensitive to each act of terror across the entire period of the Second Intifada (2000–06), sustained psychological resilience was indicated with no apparent overall market shift. In other words, we saw a ‘normalisation of terror’ following an extended period of continued suicide bombings. The results suggest that investors responded to less transitory global market forces, indicating sustained resilience and long‐term market confidence. Future studies directly measuring investor expectations and reactions to man‐made disasters, such as terrorism, are warranted.     

Study on Assessing Economic Vulnerability of Small Island Regions

The main purpose of this study is to assess economic vulnerability of small island development regions as part of their sustainability constraints. By combining economic and environmental time series data, we assessed a composite index of economic vulnerability which is constructed from three exogenous variables, namely economic exposure, economic remoteness, and economic impact of environmental and natural disasters. We used the Amami Islands, Kagoshima Prefecture, Japan as the case studies for this paper.The results indicated that using a gross island products based valuation index, Kikaijima is the most vulnerable island in the Amami Islands with a composite economic vulnerability index (CEVI) value of 0.678, while by using a per capita based index, Okinoerabujima is considered the most vulnerable island with a CEVI value of 0.680. From the results we also revealed that smaller islands have relative higher vulnerability than the bigger one, which also confirms some previous country-level vulnerability studies.However, it is matter of fact that some islands that have relatively high vulnerability also have good economic performance as shown by their per capita income. In this regard, it can be argued that the success of these small islands could have been achieved in spite of and not because of their inherent vulnerability conditions as an indicator of sustainability constraint. Regarding these findings, we also examined a comparison between vulnerability results and the preliminary concept of an island's resilience in order to capture another perspective on sustainability assessment in a small island region.     

The impact of the 2004 tsunami on coastal Thai communities: assessing adaptive capacity

The suddenness and scale of the 26 December 2004 tsunami and the challenges posed to affected communities highlighted the benefits of their members having a capacity to confront and adapt to the consequences of such a disaster. Research into adaptive capacity or resilience has been conducted almost exclusively with Western populations. This paper describes an exploratory study of the potential of a measure of collective efficacy developed for Western populations to predict the capacity of members of a collective society, Thai citizens affected by the 2004 tsunami, to confront effectively the recovery demands associated with this disaster. Following a demonstration that this measure could predict adaptive capacity, the role of religious affiliation, ethnicity and place of residence in sustaining collective efficacy is discussed. The implications of the findings for future research on, and intervention to develop, adaptive capacity among Thai citizens in particular and collectivist societies in general are discussed.     

Food Security in Complex Emergencies: Enhancing Food System Resilience

This paper explores linkages between food security and crisis in different contexts, outlining the policy and institutional conditions needed to manage food security during a crisis and to rebuild the resilience of food systems in periods of relative peace. The paper reviews experiences over the past decade of countries in protracted crisis and draws lessons for national and international policy. It assesses the different alternatives on offer in fragile countries to address, for example, the disruption of institutional mechanisms and the decreasing level of support offered by international donors with respect to longer-term expectations. It proposes a Twin Track Approach to enhance food security resilience through specific policies for protracted crises that link immediate hunger relief interventions with a long-term strategy for sustainable growth. Finally, the article analyses policy options and the implications for both short- and longer-term responses vis-à-vis the three dimensions of food security: availability; access; and stability.     

A review of coastal community vulnerabilities toward resilience benefits from disaster reduction measures

The coast has always been an area of significant hazards. In situations of community self-sufficiency, consequences of coastal hazards might be isolated to regions directly affected by the hazard. But, in the current global economy, fewer and fewer communities are isolated; damage to one location frequently has consequences around the globe and coastal community resilience can have broad-reaching benefits. Hazard responses for the built coastal environment have typically been resistance: constructing stronger buildings, enhancing natural barriers or creating artificial barriers. These approaches to hazard reduction through coastal engineering and shoreline defence efforts have been crucial to sustained coastal development. However, as coastal forces continue or magnify and resources become scarcer, resistance alone may be less effective or even unsustainable, and interest in resilience has grown. Resilience is a community's ability either to absorb destructive forces without loss of service or function, or to recover quickly from disasters. Community resilience encompasses multiple elements, ranging from governance to structural design, risk knowledge, prevention, warning systems and recovery. This paper focuses on hazards of coastal communities, and provides a review of some recent engineering efforts to improve the resilience elements of risk knowledge and disaster warnings for coastal disaster reduction.     

Exploring system interactions for building resilience within coastal environments and communities

This paper focuses on identifying examples of first-order system interactions, which make important contributions to building coastal resilience for coastal zone management. This discussion is based on an application of the Institutional Analysis and Development Framework to a case-study analysis of coastal management in South Australia. The study suggests that cross-scale interactions and informal relationships within and between users and managers are key interactions defining resilience outcomes within the current system. A significant constraint on improving resilience was the lack of evaluative criteria for identifying sustainable forms of system behaviour. The paper argues that resilience is a function of a normative statement on the characteristics desirable in the functioning system. Analyses of coastal resilience, which facilitate greater understanding of the range of complexities in coastal behaviour, are therefore central to gaining the most useful insights into the options and pathways for building more sustainable coastal futures.     

Disaster risk from a macroeconomic perspective: a metric for fiscal vulnerability evaluation

The Disaster Deficit Index (DDI) measures macroeconomic and financial risk in a country according to possible catastrophic scenario events. Extreme disasters can generate financial deficit due to sudden and elevated need of resources to restore affected inventories. The DDI captures the relationship between the economic loss that a country could experience when a catastrophic event occurs and the availability of funds to address the situation. The proposed model utilises the procedures of the insurance industry in establishing probable losses, based on critical impacts during a given period of exposure; for economic resilience, the model allows one to calculate the country's financial ability to cope with a critical impact. There are limitations and costs associated with access to resources that one must consider as feasible values according to the country's macroeconomic and financial conditions. This paper presents the DDI model and the results of its application to 19 countries of the Americas and aims to guide governmental decision‐making in disaster risk reduction.