Mexico: Cost of natural disasters hits US$20bn in last decade

Natural disasters have cost Mexico US$20.2bn over the last decade, according to a new report from the World Bank. The cost of damage in Mexico, caused by droughts, earthquakes, floods and storms, is far higher than any of its Central American or Caribbean neighbors, according to the report "Risk and Opportunity: Managing Risk for Development." The recent passage of storms Manuel and Ingrid is example of the country's vulnerability to natural disasters, with the total cost of the storms estimated at 75bn pesos (US$5.7bn). The report calls for "a sea change in the way risk is managed," according to World Bank Group President Jim Yong Kim. "Our new approach calls for individuals and institutions to shift from being 'crisis fighters' to proactive and systematic risk managers." Better risk management will allow countries to avert economic damages, prevent development setbacks, and unleash opportunities, according to the report. Haiti has suffered the second highest cost of natural disasters, at US$8.36bn during the same period. The 7-magnitud earthquake in January 2010 devastated the country, leaving 230,000 dead, 1.5mn homeless and widespread destruction of infrastructure and water services. El Salvador, Guatemala and Nicaragua have also suffered large losses in the last decade, with damage estimated at US$2.34bn, US$1.91bn and US$1.02bn respectively. Panama has escaped relatively unscathed during the last decade, with damage resulting from natural disasters pegged at just US$17mn.