Are remittances a source of finance for private adaptation strategy? Evidence from the Cyclone Sidr hit regions in southern Bangladesh
Description
Coastal communities in developing countries face considerable challenges regarding how to manage their response to actual and anticipated damage from major storm events. However, private defensive strategies to avert and mitigate storm-inflicted damages might be influenced by the presence of public sponsored storm mitigation programs, such as embankments, dams, cyclone shelters, etc. and access to remittances – both domestic and foreign. Given the possible nexus among these variables, we explore the dynamics of the household storm protection behavior by proposing a theoretical model. We, then, empirically tested our model based on data collected from a recently concluded household survey along the coastal areas of Bangladesh that have been frequently exposed to cyclones during 2007-2015 period. Using the household survey data, our goal is to find whether publicly sponsored storm mitigation programs and access to remittances influence the economic behavior of the coastal communities by partially or fully crowding out private storm-protection actions. From policy perspectives, our theoretical and empirical findings will be particularly relevant for developing countries with poor coastal-based communities in two areas: (1) coordination between international and local or indigenous resources for emergencies and humanitarian purposes once exposed to a major storm event; and, (2) coordination with the affected economies to reserve development aid (not humanitarian aid) to enhance long-term capacity of coastal communities to reduce the likelihood of facing extensive storm-inflicted damages in future.
Are remittances a source of finance for private adaptation strategy? Evidence from the Cyclone Sidr hit regions in southern Bangladesh
Coastal communities in developing countries face considerable challenges regarding how to manage their response to actual and anticipated damage from major storm events. However, private defensive strategies to avert and mitigate storm-inflicted damages might be influenced by the presence of public sponsored storm mitigation programs, such as embankments, dams, cyclone shelters, etc. and access to remittances – both domestic and foreign. Given the possible nexus among these variables, we explore the dynamics of the household storm protection behavior by proposing a theoretical model. We, then, empirically tested our model based on data collected from a recently concluded household survey along the coastal areas of Bangladesh that have been frequently exposed to cyclones during 2007-2015 period. Using the household survey data, our goal is to find whether publicly sponsored storm mitigation programs and access to remittances influence the economic behavior of the coastal communities by partially or fully crowding out private storm-protection actions. From policy perspectives, our theoretical and empirical findings will be particularly relevant for developing countries with poor coastal-based communities in two areas: (1) coordination between international and local or indigenous resources for emergencies and humanitarian purposes once exposed to a major storm event; and, (2) coordination with the affected economies to reserve development aid (not humanitarian aid) to enhance long-term capacity of coastal communities to reduce the likelihood of facing extensive storm-inflicted damages in future.