Building disaster‐resilient micro enterprises in the developing world

Family‐owned micro enterprises operating within the informal sector of most developing countries provide millions of citizens with a livelihood and are the economic backbone of many communities. Yet, the turbulence that emanates up or down respective supply chains following a disaster can cause these entities to fail. This study develops a model that recognises the relative weakness of micro enterprises to such disaster‐related shocks. The model proposes that micro enterprises can moderate the effect of such shocks by creating resilience through cognitive preparation, continuous learning, and the generation of various forms of social capital (cognitive, relational, and structural). The propositions for the model are established through an extensive literature review, coupled with examples drawn from the documents of humanitarian agencies performing disaster relief work in India. This model also serves as a preliminary basis with which to derive metrics to set benchmarks or to assess the viability of a micro enterprise's ability to survive disaster‐related shocks.     

Thresholds of species loss in Amazonian deforestation frontier landscapes

In the Brazilian Amazon, private land accounts for the majority of remaining native vegetation. Understanding how land‐use change affects the composition and distribution of biodiversity in farmlands is critical for improving conservation strategies in the face of rapid agricultural expansion. Working across an area exceeding 3 million ha in the southwestern state of Rondônia, we assessed how the extent and configuration of remnant forest in replicate 10,000‐ha landscapes has affected the occurrence of a suite of Amazonian mammals and birds. In each of 31 landscapes, we used field sampling and semistructured interviews with landowners to determine the presence of 28 large and medium sized mammals and birds, as well as a further 7 understory birds. We then combined results of field surveys and interviews with a probabilistic model of deforestation. We found strong evidence for a threshold response of sampled biodiversity to landscape level forest cover; landscapes with <30–40% forest cover hosted markedly fewer species. Results from field surveys and interviews yielded similar thresholds. These results imply that in partially deforested landscapes many species are susceptible to extirpation following relatively small additional reductions in forest area. In the model of deforestation by 2030 the number of 10,000‐ha landscapes under a conservative threshold of 43% forest cover almost doubled, such that only 22% of landscapes would likely to be able to sustain at least 75% of the 35 focal species we sampled. Brazilian law requires rural property owners in the Amazon to retain 80% forest cover, although this is rarely achieved. Prioritizing efforts to ensure that entire landscapes, rather than individual farms, retain at least 50% forest cover may help safeguard native biodiversity in private forest reserves in the Amazon. Umbrales de Pérdida de Especies en los Paisajes Fronterizos de Deforestación en el Amazonas Ochoa‐Quintero     

Earthquake insurance pricing: a risk‐based approach

Flat earthquake premiums are ‘uniformly’ set for a variety of buildings in many countries, neglecting the fact that the risk of damage to buildings by earthquakes is based on a wide range of factors. How these factors influence the insurance premiums is worth being studied further. Proposed herein is a risk‐based approach to estimate the earthquake insurance rates of buildings. Examples of application of the approach to buildings located in Taipei city of Taiwan were examined. Then, the earthquake insurance rates for the buildings investigated were calculated and tabulated. To fulfil insurance rating, the buildings were classified into 15 model building types according to their construction materials and building height. Seismic design levels were also considered in insurance rating in response to the effect of seismic zone and construction years of buildings. This paper may be of interest to insurers, actuaries, and private and public sectors of insurance.