LASA 2 - The Case For or Against New Orleans Study

LASA 2 - The For or Against New Orleans - Case Study Example Objectives This research and case study aims to establish the facts about the damages caused by Hurricane Katrina, considering both the short-term losses as well as the long-term potential losses in the event that nothing or little is done to reconstruct and prevent a similar calamity. On the basis of facts, it also aims to discover advantages and disadvantages, risks and opportunities of substantial investments which will be required to allow New Orleans to prevent another level-5 disaster. Finally, a Cost-Benefit Analysis will be formulated to arrive at a recommended decision about the budget that should be allocated for the reconstruction. Alternative Courses of Action A. Proceed with funding the ongoing development of New Orleans until Level 5 standards are achieved. B. Cut down the funding and stagger developments in New Orleans. C. Stop funding the NOLA development. Areas of Consideration and Analysis Risks Involved By reconstructing the levee with a standard capable of withsta nding a Level 5 hurricane similar to Katrina, the substantial productivity of New Orleans will not be stopped as it did when 400,000 people evacuated the place and 124,000 lost their jobs. ... Costs and Benefits What are the costs and benefits of the New Orleans Flood Protection System, according to Hallegatte, Stephanie (2005)? As to the effects of climate change, it includes the increase of intensity in the power of hurricanes (p.5). This implies a greater need for stronger and higher levees to protect New Orleans against another major flood. The estimated cost from the viewpoint of local officials was $ 32 billion. Another estimate which considered loss of human lives and the views of insurance companies amounted to $ 30 billion. Hallegatte admitted that the basis for calculating the justifiable budget was not solidly grounded (p.4). This was apparently due to a failure to consider the productivity of people in the area which would cease to be delivered if the workers of New Orleans decide not to be established in New Orleans. In a study of workers’ productivity, the report cited that Americans are most productive on the average per worker. Each one can produce à ¢â‚¬Å"$63,885 of wealth per year, more than their counterparts in all other countries, the International Labor Organization said in its report. Ireland comes in second at $55,986, followed by Luxwmbourg at $55,641, Belgium at $ 55,235 and France at $ 54,609.† according to Klapper, Bradley S. (2007) of Associated Press. This opportunity loss should be the major basis for deciding to what extent New Orleans should be rebuilt, for the simple reason that $63,885 x 124,000 people who lost their jobs = $ 7.9 billion per year. In 130 years, which is the number of years it might take before another major flood tries to destroy a reconstructed New Orleans, the workers of New Orleans will have produced $ 1.027 Trillion worth of wealth for the USA. In another report about