THE CASE of TABASCO Public Disclosure Authorized Public Disclosure Authorized
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ASSESSMENT OF THE ECONOMIC IMPACT OF INVESTMENTS Public Disclosure Authorized IN DISASTER RISK REDUCTION AND PREVENTION: THE CASE OF TABASCO Public Disclosure Authorized Public Disclosure Authorized Oscar A. Ishizawa, Juan José Miranda and Itzel de Haro Contributions: Xijie Lv (World Bank), Adrián Pedrozo (UNAM) and CONAGUA officials Public Disclosure Authorized Funded by Authors: Oscar A. Ishizawa, Juan José Miranda and Itzel de Haro Contributions: Xijie Lv (World Bank), Adrián Pedrozo (UNAM) and CONAGUA officials © 2017 The World Bank. 1818 H St. NW Washington, DC, 20433 USA Telephone number: 202-473-1000 Web site: www.worldbank.org This work has been carried out by World Bank staff, with external contributions. The opinions, interpretations, and conclusions expressed herein do not necessarily reflect the views of the World Bank, its Board of Executive Directors or the countries represented by it. The World Bank does not guarantee the accuracy of the data contained in this publication. The boundaries, colors, names, and any other information shown in the maps of this document do not imply the expression of any opinion whatsoever on the part of the World Bank concerning the legal status of any territories, nor the endorsement or acceptance of such boundaries. Rights and Permissions The material contained in this work is copyrighted. The World Bank encourages the dissemination of its knowledge, and authorizes the partial or total reproduction of this report for non-profit purposes, provided the source is cited. All queries on rights and licenses, including subsidiary rights, should be addressed to: World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax number: 202-522-2625; e-mail address: [email protected]. 3 EXECUTIVE SUMMARY ...........................................................6 1. INTRODUCTION ........................................................................8 2. HYDROMETEOROLOGICAL CHARACTERIZATION OF THE 2007 AND 2010 EVENTS .......................................... 12 2.1. ESTIMATED DAMAGES AND LOSSES: 2007 AND 2010 EVENTS ............................................................................... 18 2.2. COMPREHENSIVE WATER PLAN OF TABASCO (PHIT) .....19 3. DATABASES ...............................................................................20 3.1. SCHOOL DROPOUT RATE .......................................................21 3.2. NIGHTTIME LIGHTS (NTL) .....................................................24 3.3. FLUVIAL FLOODING MODEL (GLOFRIS) ..........................26 3.4. INVESTMENTS IN PROTECTION INFRASTRUCTURE .......................................................................... 27 4. METHODOLOGY ......................................................................30 4.1. METHODOLOGY FOR THE ESTIMATION OF THE EFFECT ON SCHOOL DROPOUT ................................34 4.2. METHODOLOGY FOR THE ESTIMATION OF THE IMPACT ON NIGHTTIME LIGHTS ................................35 5. RESULTS ....................................................................................36 5.1. RESULTS RELATED TO SCHOOL DROPOUT ........................................................................37 5.2. RESULTS RELATED TO NIGHTTIME LIGHTS ...................40 TABLE OF 6. CONCLUSIONS .........................................................................44 BIBLIOGRAPHY .......................................................................48 CONTENTS ANNEXES .................................................................................. 50 5 EXECUTIVE SUMMARY This study assesses the role of the investments made For that purpose, estimations were made of the impact in disaster risk reduction (DRR) and prevention in the on the school dropout rate for Basic Education students actual reduction of the impact of floods in the state of (primary and secondary levels), and of the effect on Tabasco between 2007 and 2010. the economic activity of the state (measured through changes in the intensity of nighttime lights [or NTL]). This, Based on a previous study conducted within the together with georeferenced information on the location framework of the Technical Assistance Agreement of the investments in DRR and the flood level present between the Mexican Government and the World Bank, during each of the events—estimated through a fluvial it was found that the intense rainfall events occurring flooding model called GLOFRIS (GLObal Flood Risks in Tabasco in 2007 and 2010 were similar in terms of with IMAGE Scenarios)—, made it possible to obtain their hydrometeorological characteristics (rainfall) and estimates with a spatial disaggregation level of 1 km2. spatial distribution (rainfall fields). When analyzing the accumulated rainfall recorded for both events, it was On the one hand, the results show that the fluvial found that the magnitude of the 2010 floods was greater flooding level (GLOFRIS) indeed has a negative effect than that of the 2007 floods. However, damages and on the level of school dropout and on the changes in losses estimations recorded by the National Center NTL. Specifically, a higher negative impact is observed for Disaster Prevention (CENAPRED) show an 80% in 2007 compared to 2010—in the latter year, the reduction in 2010, compared to 2007 (World Bank, 2014). estimation is controlled for the presence of investments The similarity between these two events provides an in protection infrastructure. In 2007, it was found that ideal “natural experiment” scenario to evaluate the one additional decimeter of flood (1 dm) generated an benefits of the investments in DRR made between increase in the school dropout rate of almost 0.1%, while 2008 and 2010. the impact in 2010 barely amounted to 0.023%. Likewise, NTL show a decrease of 30% in light intensity after the Motivated by the devastating floods that occurred 2007 floods, compared to 5.4% in 2010. in October 2007, the Mexican Federal Government, together with the Government of the State of Tabasco, On the other hand, no robust results were found for the designed the Comprehensive Water Plan of Tabasco effect of the investments in DRR, even after correcting (PHIT, Plan Hídrico Integral de Tabasco) and began its a possible bias resulting from their location. Therefore, implementation. The aim of the PHIT was to come up our estimations may lack accuracy due to the lack with a set of solutions that guaranteed the population’s of information concerning the exact extent of the safety, as well as the performance and continuity of investments, as well as because of problems related economic activities and the balance of ecosystems to the time frame of school dropout data available and in the occurrence of floods. The PHIT provides for the lack of NTL information for the months before the the implementation of structural measures (physical 2010 floods. investments, such as embankments and reinforcements) and non-structural measures (non-engineering In conclusion, the results obtained in this study measures, such as workshops, trainings, development of reinforce those found in the previous one (World Bank, early warning systems and drawing of risk maps, among 2014): the impact of the 2007 floods was greater than others). As part of the PHIT, a total of USD 753,613,871 that of the 2010 floods, even though the latter year was (MXN 9,518 million)1 were invested in DRR measures characterized by rainfall events of a greater magnitude. between 2008 and 2010, which amounts to 2.18% of As regards investments in DRR, the assessment of the state’s GDP in 2010. About 84% of these resources their impact would require more accurate spatial and were invested in infrastructure for the protection of the time frame data. population and productive areas (amounting to 56% of the overall investment), as well as in the reconstruction of protective hydraulic infrastructure (approximately 27% of the overall investment) (World Bank, 2014). The aim of this analysis is to assess the impact caused by the floods and the investments in DRR on the socioeconomic wellbeing of the population of Tabasco. 1 For the purpose of this document, all figures in United States dollars (USD) have been calculated at the average exchange rate for 2010 according to the Banco de México, which equals to 12.62981 Mexican pesos (MXN) per US dollar. (Source: http://www.banxico.org.mx/ SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuadro=CF373&locale=en, checked on August 1st 2017). 7 1 INTRODUCTION Consisting of 17 municipalities and 1,456 localities, the After the devastating floods that occurred in October state of Tabasco is situated in Southeastern Mexico. and November 2007, the Mexican Federal Government, According to the National Institute of Statistics and together with the Government of the State of Tabasco, Geography (INEGI), 42.6% of the population lives in decided to dramatically increase the investments in rural areas2. Out of the economically active population, DRR at the state through the implementation of the 19.65% work in the primary sector, while the largest Comprehensive Water Plan of Tabasco (PHIT). Given proportion of the population works in the secondary that most of the investments in DRR were made sector and accounts for 59% of the state’s GDP (mostly between 2008 and 2010, and that the floods that took coming from oil production). place on September 2010 had similar characteristics to those of the 2007 floods —both in hydrological terms Due to its location and hydrological characteristics, and in terms