Fresh estimates have put the cumulative cost of the California wildfires, the Israel-Hamas war, and the Russia-Ukraine war at between $688 billion and $703 billion. In comparison, India’s social sector budget for 2024 is around ₹39.4 trillion ($480 billion), which covers some key initiatives like PM Gati Shakti and Ayushman Bharat. It is estimated that this cost is roughly 1.4 to 1.5 times the entire annual social welfare budget of India.
This translates into $486 billion needed for the reconstruction of Ukraine, between $135 and $150 billion for the California wildfires, while a mere $67.57 billion is invested in the Israel-Hamas conflict. These jarring contrasts go to show how global crises can easily eclipse investments within a nation.
In California, the wildfires have destroyed more than 22,000 acres and killed at least 24 people. The economic damage could reach $150 billion, analysts say, a number far beyond previous disaster costs. Federal responses to disasters are essential, but funding is complicated by political disputes.
The war between Israel and Hamas has caused huge economic losses, whose cost is estimated to reach $67.57 billion by the end of 2024. That includes direct military expenditure and lost revenues, besides growing defense spending impelled by security policies.
Meanwhile, direct damages from the Russia-Ukraine conflict have reached about $152 billion. With Ukraine’s economy, which contracted by nearly a third in 2022, recovering only gradually, it operates at only 78% of its capacity before the conflict. The cost of reconstruction is estimated at $486 billion, with much impact on world food and energy markets.
These crises underline the immense financial pressure governments and societies are undertaking to reshape national policies and priorities. The long-term reverberations of such an event would have taken place over a few years and hence created the dire need for responses towards natural and geopolitical challenges.
