Many US communities have been devastated by Hurricanes Harvey and Irma. With natural disasters seemingly increasing in frequency and intensity, societies everywhere need to draw definitive lessons on disaster relief from their experiences in dealing with them.
Last week's article looked at the Chicago fire of 1871; this week, we examine what lessons policymakers can learn from the response to Hurricane Katrina, which struck New Orleans in 2005.
This was the goal of a research project lead by Peter Boettke at the Mercatus Center at George Mason University. Boettke and a team of scholars spent considerable amounts of time in Louisiana operating as hybrid economists-anthropologists, documenting what did and did not work, and synthesizing their findings into valuable scholarly contributions.
One of those works was a book by Virgil Storr, Stefanie Haeffele-Balch, and Laura Grube, entitled Community revival in the wake of disaster. The 19th century English philosopher, John Stuart Mill, offers a useful prologue:
“What has so often excited wonder, the great rapidity with which countries recover from a state of devastation; the disappearance, in a short time, of all traces of the mischiefs done by earthquakes, floods, hurricanes, and the ravages of war… in a few years after, everything is much as it was before.”
Mill was writing at a time when where were no government organisations charged with coordinating disaster relief, such as the Federal Emergency Management Agency (Fema). His observation should cast doubt on the mainstream view that central governments are the only vehicle capable of organising effective disaster relief. Storr, Haeffele-Balch and Grube’s investigation into Katrina confirmed the pivotal role played by bottom-up recovery effects, and highlighted some of the problems with centralisation.
Before delving into the details of disaster relief, it is worth understanding the pros and cons of centralisation in general.
Broadly speaking, the key advantage of managing things centrally is economies of scale: when activity is organised at a larger scale, there can be huge efficiency gains. For example, national air defenses, water infrastructure, or anti-global warming efforts are highly inefficient and possibly even futile at the local governmental level, requiring a national scale for effectiveness.
Centralising has several downsides, however. First, central management creates information bottlenecks, whereby important, local information does not reach the central bureaucrats stuck applying a one-size-fits-all policy. Second, de-centralised management involves key stakeholders in the decision-making process, increasing the likelihood that their interests are accounted for, and diminishing the likelihood of corruption stemming from having no stake in the outcome. That is why issues such as local pollution, traffic congestion, and certain types of law enforcement are best organised at the municipal rather than national level, in spite of the foregone economies of scale.
In the context of natural disaster relief, experts and lay people fixate on the economies of scale benefits associated with centralisation, and conclude that decentralised responses are ineffective. An important theme in the Community Revival book is that while natural disasters are associated with an amplified need to exploit economies of scale, they are also characterised by an even stronger need to exploit local knowledge, and to engage local stakeholders.
A key post-disaster challenge is the “coordination problem” faced by evacuating residents: the baker wants to return, but only if there are enough customers; the teachers want to return, but only if there are enough students; the doctor wants to return, but only if there are enough patients; and so on. Monoliths such as Fema are poorly placed to solve this problem, since they have no preexisting relationships with the people involved; and they are poorly positioned to assess people’s interests, and to coordinate the decision to move back and rebuild.
Moreover, they have comparatively little background knowledge on the area, so when things change quickly—which often happens in a disaster—their information deficit puts them at a massive disadvantage compared to locals when it comes to responding. This reflects a deeper problem with bureaucrats: they are programmed to systematise, and are inherently anti-dynamic and unresponsive to rapidly evolving scenarios.
Storr and his colleagues demonstrated how federal efforts at recovery were relatively ineffective, and sometimes actively disruptive. In contrast, local commercial and social entrepreneurs were instrumental in assessing people’s interests accurately, in allocating resources to where they were most needed, and in coordinating people’s actions to maximise their effectiveness.
School principals, church leaders and local business leaders in New Orleans become entrepreneurs and led the way in organising the relief and rebuilding effort, making sure that the evacuees could quickly come back, and find something resembling a normal economy waiting for them.
In light of the research produced by the Mercatus Center and others, Fema’s performance has improved post-Katrina. However, there remains a fundamental underappreciation among policymakers and the general public of the role of local entrepreneurs. That is why during every natural disaster, we must reread Mill’s quote and remember what the world looked like when he wrote it.
Omar Al-Ubaydli is the program director for International and Geo-Political studies at Derasat, Bahrain. We welcome economics questions from our readers via email (omar@omar.ec) or tweet (@omareconomics)
The specs: 2019 Infiniti QX50
Price, base: Dh138,000 (estimate)
Engine: 2.0L, turbocharged, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 268hp @ 5,600rpm
Torque: 380Nm @ 4,400rpm
Fuel economy: 6.7L / 100km (estimate)
'THE WORST THING YOU CAN EAT'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
Day 1, Abu Dhabi Test: At a glance
Moment of the day Dimuth Karunaratne had batted with plenty of pluck, and no little skill, in getting to within seven runs of a first-day century. Then, while he ran what he thought was a comfortable single to mid-on, his batting partner Dinesh Chandimal opted to stay at home. The opener was run out by the length of the pitch.
Stat of the day - 1 One six was hit on Day 1. The boundary was only breached 18 times in total over the course of the 90 overs. When it did arrive, the lone six was a thing of beauty, as Niroshan Dickwella effortlessly clipped Mohammed Amir over the square-leg boundary.
The verdict Three wickets down at lunch, on a featherbed wicket having won the toss, and Sri Lanka’s fragile confidence must have been waning. Then Karunaratne and Chandimal's alliance of precisely 100 gave them a foothold in the match. Dickwella’s free-spirited strokeplay meant the Sri Lankans were handily placed at 227 for four at the close.
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
It's Monty Python's Crashing Rocket Circus
To the theme tune of the famous zany British comedy TV show, SpaceX has shown exactly what can go wrong when you try to land a rocket.
The two minute video posted on YouTube is a compilation of crashes and explosion as the company, created by billionaire Elon Musk, refined the technique of reusable space flight.
SpaceX is able to land its rockets on land once they have completed the first stage of their mission, and is able to resuse them multiple times - a first for space flight.
But as the video, How Not to Land an Orbital Rocket Booster, demonstrates, it was a case if you fail, try and try again.
Profile of Udrive
Date started: March 2016
Founder: Hasib Khan
Based: Dubai
Employees: 40
Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed+ round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.
Company profile
Name:+Dukkantek
Started:+January 2021
Founders:+Sanad Yaghi, Ali Al Sayegh and Shadi Joulani
Based:+UAE
Number of employees:+140
Sector:+B2B Vertical SaaS(software as a service)
Investment:+$5.2 million
Funding stage:+Seed round
Investors:+Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
UAE currency: the story behind the money in your pockets
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
The years Ramadan fell in May
Bridgerton season three - part one
Directors: Various
Starring: Nicola Coughlan, Luke Newton, Jonathan Bailey
Rating: 3/5
SPAIN SQUAD
Goalkeepers Simon (Athletic Bilbao), De Gea (Manchester United), Sanchez (Brighton)
Defenders Gaya (Valencia), Alba (Barcelona), P Torres (Villarreal), Laporte (Manchester City), Garcia (Manchester City), D Llorente (Leeds), Azpilicueta (Chelsea)
Midfielders Busquets (Barcelona), Rodri (Manchester City), Pedri (Barcelona), Thiago (Liverpool), Koke (Atletico Madrid), Ruiz (Napoli), M Llorente (Atletico Madrid)
Forwards: Olmo (RB Leipzig), Oyarzabal (Real Sociedad), Morata (Juventus), Moreno (Villarreal), F Torres (Manchester City), Traore (Wolves), Sarabia (PSG)
DUNGEONS & DRAGONS: HONOR AMONG THIEVES
Directors: John Francis Daley and Jonathan Goldstein
Stars: Chris Pine, Michelle Rodriguez, Rege-Jean Page, Justice Smith, Sophia Lillis
Rating: 3/5
Where can I submit a sample?
Volunteers can now submit DNA samples at a number of centres across Abu Dhabi. The programme is open to all ages.
Collection centres in Abu Dhabi include:
- Abu Dhabi National Exhibition Centre (ADNEC)
- Biogenix Labs in Masdar City
- Al Towayya in Al Ain
- NMC Royal Hospital in Khalifa City
- Bareen International Hospital
- NMC Specialty Hospital, Al Ain
- NMC Royal Medical Centre - Abu Dhabi
- NMC Royal Women’s Hospital.
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
Everton Fixtures
April 15 - Chelsea (A)
April 21 - N. Forest (H)
April 24 - Liverpool (H)
April 27 - Brentford (H)
May 3 - Luton Town (A)
May 11 - Sheff Utd (H)
May 19 - Arsenal (A)
Company profile
Date started: May 2022
Founder: Husam Aboul Hosn
Based: DIFC
Sector: FinTech — Innovation Hub
Employees: eight
Stage: pre-seed
Investors: pre-seed funding raised from family and friends earlier this year
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
Dr Amal Khalid Alias revealed a recent case of a woman with daughters, who specifically wanted a boy.
A semen analysis of the father showed abnormal sperm so the couple required IVF.
Out of 21 eggs collected, six were unused leaving 15 suitable for IVF.
A specific procedure was used, called intracytoplasmic sperm injection where a single sperm cell is inserted into the egg.
On day three of the process, 14 embryos were biopsied for gender selection.
The next day, a pre-implantation genetic report revealed four normal male embryos, three female and seven abnormal samples.
Day five of the treatment saw two male embryos transferred to the patient.
The woman recorded a positive pregnancy test two weeks later.
Favourite things
Luxury: Enjoys window shopping for high-end bags and jewellery
Discount: She works in luxury retail, but is careful about spending, waits for sales, festivals and only buys on discount
University: The only person in her family to go to college, Jiang secured a bachelor’s degree in business management in China
Masters: Studying part-time for a master’s degree in international business marketing in Dubai
Vacation: Heads back home to see family in China
Community work: Member of the Chinese Business Women’s Association of the UAE to encourage other women entrepreneurs
How Voiss turns words to speech
The device has a screen reader or software that monitors what happens on the screen
The screen reader sends the text to the speech synthesiser
This converts to audio whatever it receives from screen reader, so the person can hear what is happening on the screen
A VOISS computer costs between $200 and $250 depending on memory card capacity that ranges from 32GB to 128GB
The speech synthesisers VOISS develops are free
Subsequent computer versions will include improvements such as wireless keyboards
Arabic voice in affordable talking computer to be added next year to English, Portuguese, and Spanish synthesiser
Partnerships planned during Expo 2020 Dubai to add more languages
At least 2.2 billion people globally have a vision impairment or blindness
More than 90 per cent live in developing countries
The Long-term aim of VOISS to reach the technology to people in poor countries with workshops that teach them to build their own device
The five pillars of Islam
Genesis G80 2020 5.0-litre Royal Specs
Engine: 5-litre V8
Gearbox: eight-speed automatic
Power: 420hp
Torque: 505Nm
Fuel economy, combined: 12.4L/100km
Price: Dh260,500
The biog
Name: Greg Heinricks
From: Alberta, western Canada
Record fish: 56kg sailfish
Member of: International Game Fish Association
Company: Arabian Divers and Sportfishing Charters
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.