It's sometimes hypothesized that after a natural disaster, populations "Build Back Better," meaning that the reconstruction of damaged infrastructure leaves the population better off after the disaster than they were before it struck. There is some economic logic to this hypothesis, since we know that populations don't always update expensive capital investments when they should. If capital is outdated, then an exogenous shock that motivates the population to replace the old capital with new capital might end up increasing the economy's output in the long-run. Many of us are familiar with the example of a cell phone that is old and frustrating, but we don't feel like its worth replacing until we drop it in the pool by mistake -- and then find that upgrading to the latest smartphone makes us much more productive.
Politicians in the US, it seems, are required to tell the local population that they will "build back better" after a disaster strikes. After Hurricane Sandy, we heard a lot of leaders talking about how the tri-state area will be stronger and better than it ever was, probably in part because nobody wants to hear otherwise and in part because this kind of logic is important for obtaining reconstruction funding. Healy and Malhotra have a nice article (
here) demonstrating that obtaining this kind of funding for reconstruction is important for an incumbent's re-election (recall: Hurricane Sandy -> Federal relief funding -> NJ Governor Christie's endorsement -> Obama earns votes in reelection). And just before the Superbowl, I saw
this video about the Superdome's post-Katrina reconstruction, which is not shy about endorsing the BBB hypothesis.
Importantly, though, the BBB hypothesis still remains a
hypothesis, and there is no robust empirical evidence that populations actually do build back better, in aggregate, after catastrophic events. To remind that we shouldn't take the anecdotes and political rhetoric above too seriously,
Amir Jina points us to an interesting
IRIN report that suggests populations affected by Typhoon Bopha are building back worse: