Abstract:
Apart from the economic and structural losses associated with a natural
disaster, the communities it affects also undergo a loss in social capital,
which can affect perceptions, levels of trust, and social cohesion. This
working paper examines the impact of a severe natural disaster (the heavy
floods that affected large parts of Pakistan in 2010) on the social capital
of disaster-stricken communities by conducting a series of behavioral
experiments and household surveys three years afterward. It contributes
to the current literature by combining household-level information with
behavioral games and testing the impact of individual characteristics,
perceptions, and external assistance on people’s private contribution
toward a pool of public goods in a post-disaster setting.
We find that social capital, measured by respondents’ contribution toward
a public good, is positively associated with a higher number of floods
experienced. However, for individuals living in the 2010 flood-affected
communities, contributions decline with each successive experience.
This suggests that the experience of a severe natural disaster has a
negative effect on social capital compared to frequent experiences of mild
natural disasters where social capital is positively affected.
