PDF_logo Loss and Damage, Caused by Cyclones Sidr, Aila and Mahasen: Coping Strategies, Adaptation and the Role of Microfinance

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Loss and Damage, Caused by Cyclones Sidr, Aila and Mahasen: Coping Strategies, Adaptation and the Role of Microfinance

Paper No:40

Author:Md. Tareq Ferdous Khan, M. A. Baqui Khalily, and Henry Scheyvens



Climate change results recurrent natural disasters which cause an enormous loss in the household as well as in the community levels. This study is designed to meet two major objectives. Firstly, assessment of the household level loss and damage incurred from super cyclones Sidr and Aila and tropical storm Mahasen in three districts namely Khulna, Patuakhali and Satkhira. Secondly, coping strategies adopted by the affected households in the post-cyclone situation and the role of microfinance in the process of adaptation. The itinerary of the catastrophic cyclone Sidr and storm Mahsen includes Patuakhali district, whereas super cyclone Aila has gone through the districts Khulna and Satkhira. As expected, highest proportions of households of these areas were affected by the respective cyclones and storm and their total amount of loss and damage was higher compared to others. The average size of loss and damage studied in terms of loss of assets, from direct income, reconstruction expenses or increased expenditure are also evident to be larger by the itinerary of the disasters. However, the amount of loss and damage in all forms and average size per households resulted from Aila was substantially higher than that resulted from Sidr and Mahasen.

In focusing the second major objective, the adopted coping strategies are broadly classified as current income or savings, sale of assets, informal loan and government support. It is evident from the bivariate analysis that more of the program households choose current income or savings for adaptation purpose than their counterpart. Conversely, the percentage of households taken loan from informal market among control households was higher than that of program group households. In most of the cases higher percentage of program households received government support than control households. The variation in the percentage of households adopted different coping strategies over household characteristics is observed. Endogenous switching regression models with full sample and samples with counterfactual evaluate that the expected amount of coping from current income or savings was significantly higher for program group households than their counterpart in three cyclone cases and on the contrary, informal loan was significantly lower than that of control group households in the cases of Sidr and Aila, but reverse in case of Mahsen. The model of government support is only convergent for the case of Sidr and evident that the expected amount received by the affected households was lower for the program households. But, due to insufficient number of households the models for sale of assets do not converge. This study recommends some interventions to the households in climate vulnerable areas, further study to identify why more inclination towards informal loan to cope in the aftermath, a way to implement a comprehensive strategy and make justification on detailed assessment of loss and damage.

Keywords: Loss and Damage, Coping Strategies, Adaptation, Role of Microfinance

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