Economic recovery after natural disasters: Lessons from around the world

The Governor of Bank Al-Maghrib (BAM), Mr. Abdellatif Jouahri, stated on Tuesday in Rabat that it is still too early to assess the actual impact of the Al Haouz earthquake on the national economy. A thorough analysis is currently being conducted to assess the impact of the earthquake on various sectors of activity. Currently, the importance lies on taking the necessary step back to identify the most suitable financing component.

The Governor of BAM concluded that the experiences of other countries that have been struck by natural disasters have shown a recovery in their economic activity through the launch of certain sectors such as construction and tourism.

Catalyst sectors for recovery

Certainly, in the aftermath of natural disasters, the construction and public works (BTP) sector often takes center stage in the recovery process. This sector encompasses infrastructure development, rebuilding damaged structures, and creating new ones.

History has shown us that from the rubble and destruction, economic revival is possible. For instance, Japan, a country frequently susceptible to earthquakes, has consistently invested in earthquake-resistant building technologies. After the devastating Kobe earthquake in 1995, the Japanese government launched a massive reconstruction effort, injecting significant funds into the BTP sector.

In the United States, after Hurricane Katrina struck in 2005, billions of dollars were allocated for the reconstruction of New Orleans. This investment led to the employment of tens of thousands of workers in various BTP-related roles, offering a lifeline to those affected by the disaster.

Another sector that often proves instrumental in post-disaster economic recovery is tourism. Countries relying heavily on tourism, such as Thailand, have demonstrated remarkable resilience following natural disasters. In 2004, the Indian Ocean earthquake and tsunami struck Thailand’s coastlines, causing widespread destruction. However, Thailand’s tourism sector made a remarkable comeback within a few years. By investing in infrastructure and promoting the country as a safe and attractive destination, Thailand managed to attract tourists once again.

Similarly, Greece, which faces frequent earthquakes and wildfires, has been leveraging its rich cultural heritage and picturesque landscapes to boost tourism after disasters. The Greek government’s efforts in marketing and infrastructure development have helped the country bounce back economically.

The role of government support and investment

Incorporating lessons from international examples, governments can develop comprehensive post-disaster recovery plans that prioritize these key sectors. By investing in infrastructure, creating job opportunities, and implementing successful marketing strategies, countries can rebuild and even thrive in the face of adversity.

Morocco has demonstrated various lessons to the world that exemplify the human spirit of resilience, solidarity, and effective management in times of disaster.

Established on high royal instructions and decided two days after the earthquake that struck Morocco on September 8, Special Fund 126 for managing the effects of the earthquake that affected the Kingdom has totaled, as of Tuesday, September 26, donations amounting to approximately 10 billion dirhams, according to a statement from the Governor of BAM. We can only be proud of this great solidarity campaign.