This page is part of the Guide to Disaster Recovery Capitals. The seven recovery capitals are deeply interrelated – click through to explore them all.
WHAT WE KNOW
Financial strain after disasters may contribute to reduced wellbeing and mental health(3–5) and increased risk of experiencing violence for women(6,7).
It can also create disputes over funding allocation leading to community conflict(8). Financial assistance from governments, charities and insurance is often helpful and necessary for people and communities to recover, yet it is not always accessible, timely and adequate(9,10).
For example, application processes often fail to accommodate for people with disabilities, who may have urgent support needs(11). Funding opportunities often come with timing and reporting requirements for accountability purposes, yet these are often difficult for community groups to meet, which can impede community-led recovery efforts(10).
WHAT WE KNOW
What people, communities and countries had before a disaster tends to shape what they can access afterwards(12–16). Income gaps often widen after disasters(16).
WHAT WE KNOW
Significant financial resources for recovery come from outside affected communities, flowing through social and political ties(17). This means that financial capital at the regional or national level influences the amount of money that can flow to people and communities to support recovery.
WHAT WE KNOW
Distribution of funds following disasters can be inequitable(16,18), and perceived inequities can contribute to a negative social environment(8,12). People most likely to lose income include part-time and casual workers and women(73)(16,19).
WHAT WE KNOW
Businesses can be heavily impacted by disasters(20,21), particularly when multiple events cascade(22). This can lead to financial strain, loss of employment and training opportunities, relocation and reduced community cohesion(20,23). Business impact and recovery is linked to the size, capacities and sector of the business(20,21,24,25).
WHAT WE KNOW
Financial investments prior to disasters, such as insurance, can play a key role in the recovery of households, businesses and communities(26,27). However, access to these investments is inequitable(28,29), and non-insurance or underinsurance are major problems that can hinder recovery(30).
This resource has been developed through the Recovery Capitals (ReCap) project.
Artwork on this page by Oslo Davis and Frances Belle Parker.
Please contact Phoebe Quinn with any comments or enquiries: (03) 8344 3097, phoebeq@unimelb.edu.au or info-beyondbushfires@unimelb.edu.au.
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