Page 23 - Issue 56

ELITE VOL.1, Issue 56, june 2023
ELITE
VOL.1, Issue 56, june 2023

Countries directly affected by the The degree to which the disaster
disaster will have an immediate affects the global economy depends

effect on their exports and on each country’s contribution to
consumption, leading to a decrease international trade and global GDP.
in their GDP. After the disaster, As mentioned before, low-income

their external and internal trade countries contribute the least to
might still be harmed if logistics

and transportation were damaged, both. This means that it is more
further decreasing their GDP. On practical to finance adaptation in

the long run, their loss in human middle-income countries, in order
capital and capital stock will for developed countries to sustain
decrease their potential and actual their trade and the global economy.

GDP. According to Grantham Moreover, the more mitigation

Research Institute, a think tank, finance delivered to countries that
extreme weather can disrupt supply contribute the most to emissions,

chains, damage the transport the less adaptation in low-income
infrastructure necessary for trade countries will be needed in the long
in goods, and restrict people's run. Unfortunately, low-income

ability to travel. Unfortunately,
low-income countries are the most countries will be the most affected

vulnerable to climate change, by climate change, they either lose
according to IMF.Along with the development aid in the short run, or

harm that will be done to the face a worse nightmare of climate
economy of each country directly change damaging their economy.

because of climate change impacts The former can be faced later, the
on it, each country will be also latter cannot. In short, developed
affected by the impacts of climate countries are in need of middle-

change on other countries. In a income countries which they have

report by The World Bank Group, bigger trade-relationships with that
the assessed indirect impact of a they need to finance adaptation
“perfect storm” on global GDP

under completely free trade would there. And in order to curb climate
be a decrease of 12.43% in case of a change they need to finance

small flood, 12.64 in case of a mitigation there. But they don’t
medium flood, 13.71 in case of a need low-income countries that

large flood. much.

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