Nepal’s Economy Has Few Ways to Absorb the Cost of Flood Damage

Tragedy to business: Economy blooms in flood-hit Nepal, but locals are left in the mud

Devastating flash floods have created a booming disaster economy in Nepal. International journalists and aid workers have overwhelmed local infrastructure and services. Hotels and guesthouses are charging premium rates for basic shelter and accommodation. Transport costs have soared due to destroyed roads and bridges. Bilingual fixers and translators are earning significantly higher wages.

Nepal’s economy has few ways to absorb the cost of flood damage

The country’s government estimates that the recent catastrophic floods caused $8.48 billion in damage. That’s one-tenth of Nepal’s entire economy. Nepal’s...