1. LEARNINGS FROM THE MARCH 11
CATASTROPHE IN JAPAN
“AN OVERVIEW ON POLICY
IMPLICATIONS AND
DEVELOPMENT STRATEGIES

2. Short term impact over
the Long TERM Impact

3. Introduction:
 After the 9.0 magnitude earthquake resulted
the 10 meter tsunami wave.
 Regional output of prefectures areas
(damaged) is about 4-6 % of Japan’s GDP
 Kobe Earthquake last 1995 experience
 1994 (17.9 % of the world’s GDP)
 2010 (8.7 % of the world’s GDP)
 Export led economy

4.  Inadequate natural resources
 Japan’s GDP will decline (JP Morgan and
Merrill Lynch)
 Japan is one of the nations that has a high
agricultural tariff
 Japan didn’t ask for any help

5. Japan’s Top Priorities
 Humanitarian Aid
 Resolving nuclear catastrophe
 Building infrastructures

6. Basics of Nuclear Reactors
 Attitudes towards safety
 Reactors design inherent safety
 Reactor applied safety
 Engineered safeguards
 Containment, another engineered safeguard
 Design features for normal operation
Note: Nuclear plants are not insured
commercially

7. Results:
 US $ 309 B or 16-25 trillion yen cost of
damaged
 More than 9, 408 death toll and 14, 716
missing
 From 1.5 % to -0.4% GDP growth rate
 6 Sony Factories were closed
 Exportation of food (milk) were banned

8. Economic effects:
 Higher energy prices
 Infrastructural renewal project
 Will push up Japan’s public debt
 Banking and insurance losses
 Environmental perceptions on nuclear energy
 Money market (yen depreciation)
 Short term decline of Asian Pacific Economy

9.  Water crisis
 Destroyed crops
 Negative spillover in the manufacturing
industries
 Short supply of gasoline
 Global supply lines at risk

10. Policies Implemented:
 Rationing of electricity/rolling blackouts
(Tokyo electric Power Co.)
 EU FTA were enacted to help Japan
 Earthquake Reinsurance Account
 Budgetary funding
 Reduced public debt (tax reform)
 Bank of Japan pumped billions of yen (quake
budget)

11.  Advance soft loans to commercial banks –
cash supply ( to stop yen from rising too
much)
 10 trillion yen ($127B) crisis lending
 Free transportation for evacuees
 Testing of specific crops
 They have their nuclear safety commission

12. Conclusion:
 Global Growth:
 Japan
Middle East
Market Inflation in China

13. Recommendation:
 The first and most fundamental lesson from
other natural disasters is that the economy is
the least important thing to worry about.