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By Michael Gordy

This brief manuscript is either a distillation of a few of the newest paintings on catastrophe threat aid and an interpretation of this distillation from the author's political financial standpoint. it really is according to details present in the flagship stories on catastrophe danger relief of the United Nations.
The e-book sums up and translates problems with catastrophe probability aid and makes them available to specialist and non-professional readers alike, together with governmental coverage makers.

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Example text

This monetary increase, this profit, is calculated as a percentage of the entire investment. For instance, a product that costs $100 to make, all costs included, and is then sold for $110, will have generated an absolute gain of $10, or a ten percent profit. , if the entire $110 is put back into a new production cycle, then the output must generate an increase of $11 in order to maintain the same profit margin of 10 %. It is in the interest of maintaining or increasing this rate of profit that capitalists try to keep the costs of production as low as possible.

For example, recurring extensive disasters like extreme drought or flooding can destroy food security to the extent that extreme hunger increases in a community. Deaths from starvation are not considered to be the direct result of these disasters, but they are real nonetheless and would not have occurred if the disasters had not taken place. The same accounting problem faces intensive disasters. At Fukushima, © The Author(s) 2016 M. 1007/978-3-319-41667-0_8 39 40 8 The Importance of Extensive Risk for example, deaths from radiation exposure and its associated cancers will not necessarily all appear in the short run, nor will mortality from food sources poisoned by the nuclear meltdown.

Many of these investments are hidden behind complex and aggregated corporate loans, financed by large funds or banks whose individual investors rarely know what specific activities are being financed. Beneficiaries in high income countries with well-established pension funds may unknowingly be benefitting from disaster risk transfer, for example by investing in agricultural practices that increase drought risk. Likewise, investors tend to underestimate or ignore systemic risk, in part 30 6 Global Capitalism and Disaster Risk because they are so far removed from the site of the actual investment.

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