Financial Implications of Natural Disaster in Pakistan

3.1. Introduction

In order to follow a controlled research process it is essential for a researcher to understand type of his research, and identify the material (data) that he will need to collect, and analyse, to answer his research questions and achieve research objectives (Dawson, 2002). Research methodology is a systematic way to solve research problems and achieve on some result and draw the conclusions. It is not limited to use different techniques and methods to achieve research objectives, but in fact it includes a broad study of logic behind the use of a particular method to find the answer of research questions. Research methodology is a broad concept that emphasis on deep study of the research topic and different issues regarding that. In general research methodology is set of general principles that will guide the researcher throughout his research. In simple words research methodology guides the researcher to select a particular design for his research depending upon the objectives of his research and follow particular research method(s). Research methodology, also guides the researcher about data type that he should use, and how that data should be collected from various sources (Dawson, 2002, Kumar, 2011, Schindler and Cooper, 2011).

This chapter starts with providing justification for carrying this research and developing research questions to achieve research objective. Further, this chapter will describe how the study is designed (i.e. why particular; case study design, is chosen) and carried out. This chapter also includes information about data sources used and explains the reason of selecting these particular source(s). This chapter also explains the method for extracting the data from these sources (i.e. content analysis). In simple words this chapter of the research briefly explain how research was carried out; it explains all the strategies used to achieve the desired objectives of research.

3.2. Research Justification

CRED has reported an increase in frequency of natural disasters in last two decades (EM-DAT, 2011). These natural disasters incur huge financial losses and leave on-going economic impacts. Study about the consequences of natural disaster is, of much interest nowadays, because countries all around the world are putting more efforts and investing millions of dollars in disaster management techniques. Although natural disasters occur all over the world, the reason the Pakistan was chosen is that, Pakistan is an agricultural country and climate disasters (like, flood) can put direct economic impacts (both negative and positive) on the development of the country depending upon disaster management policies used (Toya and Skidmore, 2007). Furthermore, Political conditions of Pakistan have been very unstable so disaster management has always been neglected by the GoP (Shamsie, 2010, Makamaka, 2010). Through this study researcher wanted to analyse that despite of unstable political conditions, how GoP managed this disaster. Researcher was also one of the victims of this disaster, so to analyse the overall impact on the country was one was personal interest of the researcher.

3.3. Research Questions

The objective of the research were outlined in chapter one. In particular this research revolves around, the financial and economic implications of natural disaster in Pakistan in 2010 and disaster management techniques adopted by GoP and other humanitarians to recover from that disaster. In chapter two literature regarding economic and financial costs associated with disasters; around the world and Pakistan, and disaster management policies of Pakistan were reviewed. From chapter two it can be concluded that with the development of technology and higher investments in disaster management techniques, financial and economic cost of natural disasters are increased; especially in developing countries (Benson and Clay, 2004). Pakistan had always lacked in disaster management policies and most of relief and recovery tasks were performed by military and local and international NGOs (Jr et al., 2009). Based on the literature review and keeping research objectives in mind following research questions were developed.

1. What were the financial and economic impacts of the natural disaster of 2010, in Pakistan?

2. To what extent did NGOs (both, local and international) participate in the recovery from the disaster of 2010?

3. What were disaster management techniques adopted by the Pakistan government to recover from the disaster?

3.4. Research Design

Research design is strategic plan that will guide the researcher to solve his research problems or answer his research questions. It provides a detailed guideline for collecting and analysing the data. Research design can be defined as “. a blue print or detailed plan for how a research study is to be completed-operationalizing variables so they can be measured, selecting a sample of interest to study, collecting data to be used as a basis for testing hypotheses, and analysing the result. ” ( Thyer 1993: 49 cited in Kumar, 2011: 94). A more simplified and short definition of research design is cited in Ghauri and Grn haug (2010), that says “research designs are master techniques…….” (Kornhauser and Lazarsfeld, 1955: 396 cited in Ghauri and Grn haug, 2010: 54). These two definitions suggest that research designs are master plans and are not same as research methods. Research design helps the researcher in communicating his decision and actions regarding the research to others. Research design explains the type of the study and priorities of the researcher. Bryman and Bell (2011), have identified five different research designs, table 3.1 list these five research designs and provides a brief introductions to these designs.

Research Design Explanation

Implemented in this research Experimental Design In management science experimental designs are very rarely used. This design is often used as a yardstick against other non-experimental designs to conform the validity of findings. No Cross sectional or Social survey Design This research design tends to collect data on two or more than two objects/variables; usually from wide range of sources, than the data is analysed to identify pattern of association. No Longitudinal Design Longitudinal designs are used to highlight changes in an on-going pattern. These designs incur huge costs and consume lots of time, and very rarely used in business. Mostly these designs are used as an extension to social survey designs. No Case study Design This research design involves a comprehensive and details study of a single object. The case study design entails to analyse an event/object; mostly after occurrence of some unusual pattern, which might have brought some changes to normal performance of the object (Ghauri and Grn haug, 2010). Case studies are proved very help full in understanding certain phenomena and develop theories regarding the changes due to that phenomenon. Case study design is widely used in management sciences. Yes Comparative Design This study design compares the data from two or more similar cases. This design suggests that comparing data from similar cases will help the researcher to understand the phenomenon in better way. No Source: (Bryman and Bell, 2011)

3.4.1 Case Study Design

This research is based on the case study design through this study the researcher is willing to access the impacts of natural disaster of 2010, in Pakistan. And, highlight the response of government and other institutes to that disaster. Case study design fits best to the requirement of the researcher. As, the case study design is about the care full study of a particular event (flood, 2010 in this research) regarding a specific object (Pakistan). According to Bryman and Bell (2011), a case can be anything, for example a particular location, specific organisation, individual or an event and researcher is interested in elucidating the unique feature(s) of the case, or explaining the events related to the case in a specific time period. In this research, the case of Pakistan is highlighted and the phenomenon that is studied through this research is the natural disaster that occurred in Pakistan during July 2010- September 2010. A case study requires data to be gathered by wide range of sources, because most of the analysis depends upon the researcher personal observation (Gummesson, 2000). Swanborn (2010), suggested that it is difficult to define case study design, and it will be better to elaborate the characteristics of this broad research design than just giving it simplified definition. Based on the characteristics of the case study design, this design was chosen for conducting the research.

Characteristics of Case Study Design

Resemblence with this research Case studies are carried out within the boundaries of one event/ object/ social system (i.e. case studies are limited to specific object). This research is limited to Pakistan. This design emphasis on the study of phenomenon that enrols in the case’s context The study revolves around the flood 2010, which Pakistan (the case) experienced. The case study focuses on the phenomenon during certain time period and tends to collect the information, before and after the phenomenon to develop a better understanding of the phenomenon or its impact. As, mentioned above the focus of the study is on the natural disaster from July 2010 to September 2010. And, the data is collected on the basis of pre-post disaster basis to highlight the impacts on the Pakistan In a case study researcher has a concept is his mind and develops research questions after the study of the case and availability of data. Case study uses wide range of data sources; mostly secondary being more prominent, relating to the case and the phenomenon under study. The data is selected from various sources (to be discusses in section 3.6), highlighting the impacts of flood in Pakistan. Source: (Swanborn, 2010)

The case study is different from other research design because it focuses on bounded situation. This characteristic of the design allows researcher to study the case more deeply to conform the validity of findings. The emphases of the design tend to be upon serious analysis of setting, changes and the collected data. It has been often observed that this particular design favours the qualitative methods to research. It has been found that qualitative methods are very helpful in examining a case on more detailed in intensive way (Bryman and Bell, 2011). Use of data type and data collection in case study design totally depends upon the research questions. In general, when the qualitative data is used in a case study design, the study tends to follow an inductive approach and when the quantitative data is utilised the case study tend to take a deductive approach to highlight the relationship between theory and research (Bryman and Bell, 2011, Swanborn, 2010).

3.5. Research Approach

Research approach helps the researcher to control the flow of information that he will need to conduct his study. Once the researcher is aware of his aims and objectives and nature of data that is needed to achieve these objectives, research approach will guide him to build a strategy to control the flow of data and achieve and desired conclusion (Saunders et al., 2009). There are two widely used research approaches, deductive and inductive.

3.5.1. Deductive Approach: Deductive approach to study, allows the researcher to formulate a theory of hypothesis in the start of research and then design a strategy to examine the collected data in order to test the pre-formulated hypothesis. This approach emphasis on scientific principles and enables the researcher to move from theory to data. Mostly qualitative data is used in this approach and it follows a highly structured format (Saunders et al., 2009).

3.5.2. Inductive Approach: Inductive approach is one in which, the researcher collects the data, analyse that data and formulates a conclusive theory based on his findings. This approach mostly entails the use of qualitative data, and enables the researcher to gain better understanding of the research object. This research approach is more flexible and researcher can change its emphasis during the research (Saunders et al., 2009).

In above section it was identified that selection of particular approach to research depends upon the design of the study and the data type used. However, Saunders et al. (2009), argue that the research approach should be selected before choosing a particular design of study. They further argued that mostly, every research involves a theory in it and that theory might not be clearly put forward in research design so, deciding an approach prior to design might be helpful to the researcher. About choosing a particular research approach Bougie and Sekaran (2010), suggested that nature of research and research topic are most influencing factors. If there is adequate literature available on the topic and one can define theoretical framework and hypotheses than he should adopt deductive approach. And if, the research topic is new and there is limited literature available, than it is better to gather data, analyse it and explain what theoretical theme findings are reflecting, i.e. to follow inductive approach (Bougie and Sekaran, 2010). In fact, this study follows Bryman and Bell, (2011) and Swanborn (2010), and will decide on approach depending upon the requirements of the design. Depending upon the research question and data type used, this research will follow a mixed approach. As, in this research both qualitative and quantitative data will be used so this study will follow the characteristics of both the approaches.