News Column

World Bank issues advice based on 2011 Japan quake-tsunami

July 3, 2014

The World Bank recommended Thursday, in a joint report with the Japanese government, disaster reduction and crisis management measures based on lessons from the March 2011 earthquake-tsunami disaster in Japan.

The report gave high ratings to the Japanese government's immediate decision for fiscal spending and the Bank of Japan's massive liquidity injections after the disaster.

"Japan has an advanced DRM (disaster risk management) system that has evolved over nearly 2,000 years as the country has coped with natural risks and hazards," World Bank Vice President Sanjay Pradhan said in the report.

"The loss of life and property during the Great East Japan Earthquake might have been much greater if the nation' policies and practices had been less effective," he said.

The report also noted the Group of Seven industrial countries undertook a concerted effort to stabilize the Japanese yen amid its appreciation to avoid repercussions for the rest of the world.

"Coordination among countries is fundamental in mitigating potential impacts of large-scale disasters," it said.

The report proposed the prior preparation of government bond issuance and tax raising plans to promptly raise funds for post-disaster reconstruction.

It also called for expanding the private insurance market to prepare for disasters.

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Source: Japan Economic Newswire

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