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Hurricane Mitch resulted in billions of dollars in damages and thousands of lives lost. Flooding and landslides, amplified by poor environmental and land use management, were a main cause of devastation. Hurricane Mitch made clear the interrelationship between management of watersheds' upper reaches and impacts downstream. The impacts of inappropriate land management, poor agricultural practices, overgrazing, deforestation, poorly sited housing developments, and inadequate pollution control in the upper watershed are manifested in the lower basin by extremes in availability and quality of water supplies, greater vulnerability of populations and economic assets to natural disasters, reduced power-generating capacity due to increased-sediment water courses, and damaged coastal ecosystems. Hurricane Mitch also demonstrated the nexus between poverty, environmental degradation, and vulnerability to natural disasters, resulting in yet greater poverty.

In The Caribbean, it is estimated that Hurricane Georges caused 400 casualties and over $180 million total damage including indirect and secondary losses in Haiti. The perverse synergy of overwhelming poverty, degraded environment, and lack of infrastructure makes Haiti a "disaster-prone" country. Nearly every year large segments of the population suffer from either prolonged drought, frequent floods, or mud slides. An effective reconstruction strategy should deal specifically with increasing local capacity within Haiti to deal with recurring disasters.