ABSTRACT
The world has witnessed an alarming increase in the frequency and severity of disasters. According to the report of Emergency Events Database (ED-MAT),1 a total of 196 natural disasters occurred in 2012 that killed about 10,783 people and affected over 104 million people in the world. The estimated amount of economic damage was US$290 billion. In most disasters, the bulk of immediate damage is caused by destroyed assets, such as buildings, infrastructure, inventories, and growing crops. Disasters also generate short-and long-term losses in economic activity and income in the affected area, as people and companies lose their means of production and access to markets.
