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Japan Tsunami Damage Cost Could Top $300 Billion

   Henry Ridgwell | Tokyo  March 25, 2011
   A  stuffed  toy is seen amidst rubble at an area hit by earthquake and
   tsunami in Kesennuma, north Japan, March 17, 2011

Photo: Reuters

   A  stuffed  toy is seen amidst rubble at an area hit by earthquake and
   tsunami in Kesennuma, north Japan, March 17, 2011

   Japanâs  government  says  the  total cost of the damage caused by the
   tsunami could reach 25 trillion yen â or U.S. $309 billion.

   Reconstruction could boost economy

   Entire towns were wiped out when the wave hit on March 11.

   Farms,   factories,   roads,   railways  and  electricity  lines  were
   destroyed, while almost half a million people have been made homeless.
   Despite  the destruction, many Japanese people hope the reconstruction
   effort might turn out to help the Japanese economy.
   If  the  governmentâs  estimate  proves  correct,  it  would  make the
   earthquake  and  tsunami  that devastated the northeast coast of Japan
   one of the costliest natural disasters in history.
   The  predicted cost â up to US $309 billion â includes the destruction
   to  housing,  businesses  and  infrastructure  in  the seven worst-hit
   prefectures. But that may only be part of the story.
   Tokyo  is the beating heart of the worldâs third-largest economy. This
   global  financial  hub is enduring rolling blackouts because of damage
   to  the Fukushima nuclear power plant. The business costs of the power
   disruptions are not counted in this estimate.

   All facets' of economic life affected

   Former  Japanese finance minister Makoto Utsumi â now president of the
   Japan Credit Rating Agency â says the coming months will be tough.
   âAs  far  as  the short term is concerned, of course we have a serious
   challenge  before  us,â Utsumi said. âSo probably we would suffer one,
   two  or  three  quarters  of  negative  growth. But in the long term I
   believe this will be good for the Japanese economy, through the active
   reconstruction, the stimulus for the economy, would push up our growth
   for the coming 3 or 4 years.â
   The tsunami's aftermath is affecting every facet of economic life.
   Tokyoâs Tsukiji-shijo is one of the largest fish and vegetable markets
   in  the  world.  Every  day  tens of thousands of tons of produce from
   Japan and around the world are traded in these vast warehouses.
   The  United  States  and  several  other  countries  have  banned some
   Japanese   produce   imports   because   of  concerns  about  possible
   contamination from the nuclear plant.
   Stallholders here worry that there could be far wider consequences for
   their businesses.
   âItâs  not just Fukushima. Other places like Chiba [next to Tokyo] and
   other  prefectures  are  affected  by the radiation, places where I do
   business. Iâm really worried.â

   International companies fleeing Tokyo

   On  the  edge of the market, Hiro Masamoto runs a knife store catering
   to the fish traders. He is concerned about the future.
   âI  am  worried.  I  donât  think  weâve seen the full effects yet. If
   customers stop coming, weâll be in real trouble.â
   Japanâs  famous  bullet trains are once again running from the capital
   to  the  tsunami-hit Tohoku region. Freeways heading north are opening
   up again to normal traffic.
   But  many  international  companies  have  moved  staff  out of Tokyo,
   fearing  a  potential  catastrophe  at  the  Fukushima  nuclear plant.
   Countless  seminars,  meetings and events have been cancelled. Tourist
   numbers have plummeted.

   Sun will rise again

   Growth  remains  weak  â  Japanâs  economy  only recently emerged from
   recession, in 2009.
   But  former  Japanese  Finance Minister Makoto Utsumi insists this sun
   will rise once more for the Japanese economy.
   âFor   the   reconstruction   of   our   economy,  not  only  regional
   reconstruction  but national reconstruction, I think we have money, we
   have know-how, we have technology, capability, and we have the courage
   to  face  these difficulties and finally we will succeed in making the
   region and the country brilliant again,â Utsumi said.
   Like  Utsumi,  many  Japanese  are  determined  that their country can
   repeat  the  economic  miracle  of  the  1980s  â  this  time  turning
   catastrophe into growth.
   With an estimated 25,000 people dead or missing, the human cost of the
   disaster is tragically clear.
   It  will  be  many  months, if not years before the full extent of the
   damage to Japanâs economy is known.

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