Dead Capital and the Sea: Post-Tsunami Relief for the Souteast Asian Informal Economy

Abstract:     
This paper addresses the effects of natural disaster on areas that are inhabited by citizens without formal property rights. This is an issue that must be addressed in the context of the tsunamis that devastated Southeast Asia in December 2004. When large portions of these communities are washed away and no formal titles exist to protect property rights, foreign investors are likely to face fewer barriers to entering local markets, leaving erstwhile informal property holders worse off economically and driving poverty levels to new heights. The paper suggests that governments in Southeast Asia should begin to implement a set of policies that will address these concerns and build a foundation for future economic growth based on formal property markets.

Keywords: informal economy, tsunami, southeast asia, property rights, natural disaster

JEL Classifications: O17, K11, D23, O11, Q32, K20, K23

Accepted Paper Series