The Economic succeed of Japan's Earthquake, Tsunami and Nuclear Disaster

On Friday, March 11, 2011 at 2:46 pm, a 9.2 earthquake struck off the coast of Japan. This lead to a chain reaction of events foremost to a tsunami, and a nuclear disaster as one of Japan's power stations leaked radiation. What are the global effects of these three disasters?

1. Higher power Prices

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Energy prices are soaring because of the fear that the current unrest in the Middle East is affecting the global furnish of oil. The disaster in the Fukusima power center highlights the need for Japan to now import original power sources to replace any power produced straight through its nuclear facilities- which will add to more examine for natural gas, and oil.

2. Infrastructural renovation Projects

Both the earthquake and the tsunami have badly damaged much of Japan's infrastructure. Obviously a rebuilding phase would mean a government with a high debt problem, would have to invest in the reconstruction of those areas affected by this triple disaster. This could come to be the responsibility of the corporate sector, who dominate Japan's economy.

3. Banking and guarnatee Losses

Whether guarnatee companies pay out billions of dollars of claims due to the the earthquake and tsunami, remains to be seen, but the "man-made" nuclear disaster could come to be their liability. Japan's global banking and guarnatee industries may be forced to reinvest at home, depleting any global investments outside the nation.

4. Convert of Government?

Before these three disasters, lowly Japanese had lost their reliance in someone else scandal hit government. How the government reaction to these three disasters, and the subsequent rebuilding process, could Convert the communal perceptions of their leaders- but in the long term, we could see more changes inside the top echelon of the Japanese government.

5. Environmental Perceptions

After the nuclear disaster in Fukusima, many people are questioning the wisdom of construction nuclear power plants in a quake zone. Depending on the radiation levels, and the area contaminated, a worldwide reaction to the use of nuclear power could supervene in the ending of the Obama nuclear power program in the Usa, and even France's ambitious power program.

6. Money Markets

Japan remains the worlds third largest economy, but also like the United States, one of its biggest debtors. The value of the yen could fall, as banks spend on reconstruction projects, whilst the Government may be forced to raise taxes to pay for them. Some large Japanese corporations may cancel or put on hold overseas projects, re-investing these funds in rebuilding the areas affected by the earthquake.

7. Asian-Pacific Growth

China has the money and the cheaper in this region, but Japan is a second player in economic terms. Japanese companies invest in much of South East and North Asia, whilst the government often sponsor education & training programs in the region. Japan's contributions in the area, could shrink, foremost to some fears of reduced growth.

The natural disasters of the earthquake and tsunami, have led to the man made nuclear disaster, and destruction of part of a high tech nation.. Japanese are resilient, inventive and industrious people, and should overcome the hurdles of reconstruction. However this does have a short term supervene on the global economy, and a long term supervene on the time to come of the nuclear power industry.

The Economic succeed of Japan's Earthquake, Tsunami and Nuclear Disaster

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