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Research Papers, Lincoln University

Orientation: Large-scale events such as disasters, wars and pandemics disrupt the economy by diverging resource allocation, which could alter employment growth within the economy during recovery. Research purpose: The literature on the disaster–economic nexus predominantly considers the aggregate performance of the economy, including the stimulus injection. This research assesses the employment transition following a disaster by removing this stimulus injection and evaluating the economy’s performance during recovery. Motivation for the study: The underlying economy’s performance without the stimulus’ benefit remains primarily unanswered. A single disaster event is used to assess the employment transition to guide future stimulus response for disasters. Research approach/design and method: Canterbury, New Zealand, was affected by a series of earthquakes in 2010–2011 and is used as a single case study. Applying the historical construction–economic relationship, a counterfactual level of economic activity is quantified and compared with official results. Using an input–output model to remove the economy-wide impact from the elevated activity reveals the performance of the underlying economy and employment transition during recovery. Main findings: The results indicate a return to a demand-driven level of building activity 10 years after the disaster. Employment transition is characterised by two distinct periods. The first 5 years are stimulus-driven, while the 5 years that follow are demand-driven from the underlying economy. After the initial period of elevated building activity, construction repositioned to its long-term level near 5% of value add. Practical/managerial implications: The level of building activity could be used to confidently assess the performance of regional economies following a destructive disaster. The study results argue for an incentive to redevelop the affected area as quickly as possible to mitigate the negative effect of the destruction and provide a stimulus for the economy. Contribution/value-add: This study contributes to a growing stream of regional disaster economics research that assesses the economic effect using a single case study.

Research Papers, Lincoln University

There is a critical strand of literature suggesting that there are no ‘natural’ disasters (Abramovitz, 2001; Anderson and Woodrow, 1998; Clarke, 2008; Hinchliffe, 2004). There are only those that leave us – the people - more or less shaken and disturbed. There may be some substance to this; for example, how many readers recall the 7.8 magnitude earthquake centred in Fiordland in July 2009? Because it was so far away from a major centre and very few people suffered any consequences, the number is likely to be far fewer than those who remember (all too vividly) the relatively smaller 7.1 magnitude Canterbury quake of September 4th 2010 and the more recent 6.3 magnitude February 22nd 2011 event. One implication of this construction of disasters is that seismic events, like those in Canterbury, are as much socio-political as they are geological. Yet, as this paper shows, the temptation in recovery is to tick boxes and rebuild rather than recover, and to focus on hard infrastructure rather than civic expertise and community involvement. In this paper I draw upon different models of community engagement and use Putnam’s (1995) notion of ‘social capital’ to frame the argument that ‘building bridges’ after a disaster is a complex blend of engineering, communication and collaboration. I then present the results of a qualitative research project undertaken after the September 4th earthquake. This research helps to illustrate the important connections between technical rebuilding, social capital, recovery processes and overall urban resilience.