Financial implications of disaster management Case Study

Financial implications of disaster management - Case Study Example This paper discusses all the financial aspects of disaster management in the context of organizational settings. Donor Fatigue – with the global economy still in the doldrums and recovery mostly uncertain, major donor countries are now often reluctant to give bigger amounts although the said countries pledge much larger donations but come up short with the actual monies. Series of successive natural calamities had likewise depleted the financial resources of most donors and there is a feeling of fatigue among them, of constantly sending aid with little results. The governmental aid sent by developed countries are now often supplemented by private donors. Non-governmental organizations which are mostly private initiatives must now realize that a fountain of goodwill is not unlimited and must therefore spend their financial resources well. When the next disaster strikes, there might not be enough money for an adequate response. A consequence of donor fatigue is worsening of the situation and drop in funding due to apathy. Politics – humanitarian assistance is the usual international response whenever there is a natural calamity or a man-made disaster (such as regional conflicts and genocidal wars).