On Tuesday, January 17, 1995, at 5:46 in the morning, a massive earthquake rocked the region of Kobe and Osaka in south central Japan. This region is one of Japan's largest population centers, with a total population of approximately ten million people. The region around Kobe is also fairly industrialized with a modern infrastructure. Miles of highways, bridges, plumbing and other forms of infrastructure have been built in the city and surrounding region. The earthquake struck with little warning. It recorded a magnitude of 7.2 on the Richter scale. Although the ground shook for only 20 seconds, the earthquake produced massive devastation. Afterwards, the region resembled a war zone, with crumpled buildings and highways, and debris and fires everywhere. Nearly 5,500 deaths were reported. Over 35,000 people were injured. More than 170,000 buildings were badly damaged or completely destroyed. Local officials estimated that over 300,000 people were homeless after the earthquake.

CS Question #1: What type of damage did Kobe suffer due to the earthquake?

An infrastructure is the base on which a modern city is built. There are many examples of infrastructure in large, complex cities. Highways, local roads, train tracks, power and utility lines, plumbing and sewer lines are all components of a region's infrastructure. The infrastructure allows raw materials, products and people to move about the region. It also brings water and power to the entire region. Without a sophisticated infrastructure, it is very difficult to conduct an economy. The Kobe earthquake caused over $147 billion USD in damage to buildings and the infrastructure. Highways collapsed and were no longer useable. Power failures occurred throughout the region. Fresh water supplies were blocked or contaminated. Railways were bent beyond repair, and bridges collapsed. It was nearly impossible to move through the region. This made it extremely difficult for rescue workers.

When an infrastructure is destroyed, an economy can come to a complete halt. Economies need clear routes of distribution to operate fully. Natural disasters disrupt a region's infrastructure its economy.

CS Question #2: What is an infrastructure?

The costs to repair a region's infrastructure can be immense. The damage estimate of $147 billion USD did not include the loss of equipment or inventory; so the actual damage was much more costly. In order to repair the infrastructure, the Japanese government developed an emergency budget of $10 billion. This money was used to start repairing road, water and sewer systems. The government also announced plans to pay for up to 90 percent of the repair costs for Kobe public facilities. Earthquake victims were eligible for relief grants, low-interest loans and tax breaks. To cover construction costs, the Japanese government issued bonds to construction companies. Although this increased Japan's national debt, it provided funds to help repair the region.

CS Question #3: What components of the region's infrastructure were immediately repaired?

Besides the obvious physical damage, the earthquake also severely injured the region's economy. Many businesses and factories were destroyed. Offices were badly damaged, and water and sewer lines were disrupted. There were difficulties obtaining supplies, and many workers were missing. Most production plants were closed for several weeks while damages caused by the earthquake were repaired. Transportation systems were also closed due to the earthquake. It was impossible to conduct an import-export economy as Kobe has pursued. Workers missed paychecks, and industry owners lost any potential of profit from their investments.

CS Question #4: What were the economic effects of the earthquake?

Further Thought:

1. How can a government help a region affected by a natural disaster?
2. Can a region plan for a possible natural disaster? If so, how?
3. After the earthquake, production in many factories in Japan had to be reduced their due to the loss of products exported from Kobe. How can a natural disaster in one region affect another region's economy?