Potentially catastrophic natural events (such as the major earthquakes affecting the Chilean territory from time to time) and international economic crises share one characteristic: they are both exogenous events for a small open economy. In both cases, the vulnerability of the socioeconomic system is largely determined by preventive measures and the level of emergency preparedness. These activities reach high levels of public interest and support immediately following a major event, but this tends to weaken as the event recedes in time. For the Chilean case, the hypothesis that recurrence of potentially disastrous events strengthens preventive measures and preparedness, thereby reducing system vulnerability, is confirmed. Nevertheless, vulnerability may vary greatly depending, to a considerable degree, on structural heterogeneity.
Landerretche Gacitúa, O. (2010). Exogenous threats and vulnerabilities: earthquakes, international crisis and development in Chile, 1930-2010. Estado, Gobierno Y Gestión Pública, 8(15-16), pp. 39 / 67. https://doi.org/10.5354/0717-8980.2010.11221
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