The Impact of Disasters to the Economic Growth of a Country a Study Case of Indonesia

Topics: Economic growth, Economics, Central Java Pages: 4 (1278 words) Published: December 8, 2010
Economic growth is defined as the increase of per capita gross domestic product (GDP) or other measure of aggregate income. It is often measured as the rate of change in real GDP and it refers only to the quantity of goods and services produced. As we all know, each country has its own economic development that can be affected both positively and negatively. When a country experiences a negative growth, it can be referred to by saying that the economy is “shrinking” and it is associated with economic recession and economic depression. Let’s bring to focus on Indonesia’s economics growth. With domestic consumption known as the major driving forces behind any country’s economics growth, being a developing country, Indonesia must be able to sustain its economics growth. Ironically, even though Indonesia’s wealth lies on its abundance of natural resources and this has become its pillar for economic growth, poverty still has become a big problem in Indonesia. Why is this so? The answer is natural disasters. Being the top three of most occurrences of natural disasters, Indonesia’s economic growth is greatly affected by it. This is because natural disasters give a big impact on the life of the people in the country. Its impact is like a ripple effect which continued to affect others. During this time of chaos, the government’s decision is needed to solve all the problems that disaster has caused with the help from the people too. Indonesia is a paradox; it is the world's largest archipelago, both a place of natural beauty and natural disasters. The beauty makes it a prime tourist destination, but its failure to provide and maintain road infrastructure or important disaster-management technology may seriously hamper this vital part of the nation's economy. Yet, the disasters make it one of some reasons that cause tourist unwilling or afraid to visit the beauty of Indonesia. Natural disasters are not disasters people do on purpose. It is not because of what someone did,...
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