Measuring Micro-Economic Resilience Post Cyclone Disaster in Case of Bhubaneswar

Abstract

Tropical cyclones continue to threaten urban areas across the world, and more so in prone coastal states such as Odisha, India. Bhubaneswar, being a fast-growing urban centre, is still under threat from the physical as well as economic impacts of such climatic events. This research examines the microeconomic resilience of families against cyclonic activity, with an emphasis on the ability of different income groups to absorb and cope with welfare and consumption shocks. The main aim was to evaluate the extent to which households are able to sustain economic stability in the event of disaster-induced shocks. Employing the World Bank's microeconomic resilience framework, a household survey was undertaken using cluster sampling over various income groups in Bhubaneswar. The approach compared welfare losses prior to and subsequent to the cyclone, immediate economic effects, and the capacity of households to smooth consumption over time. Results show that poor households suffer disproportionately greater welfare losses and have more trouble in economic recovery because of scarce savings, informal livelihoods, and limited access to financial instruments. Wealthier households, on the other hand, showed better coping capacity. The research concludes that while state-level disaster preparedness is on the rise, important gaps still exist at the household level. Improving financial resilience, encouraging inclusive risk-reduction, and integrating micro-level data into urban disaster planning are necessary for constructing long-term economic resilience.