In the absence of before-and-after data on the same community, the goal of this study is
to infer, through contemporaneous comparisons of two study areas differentially affected
by cyclone Nargis, the impacts of the cyclone on well-being, happiness and social capital.
Profiles and characteristics of 302 small farm households using data collected 27 months
after the catastrophe were compared against an exact poverty line developed through the
Cost of Basic Needs Method. The Gini measure of relative inequality was used to measure
the extent and distribution of poverty. T-tests, correlation matrices, and regressions were
used test for the significance of differences between the slightly- and heavily-affected
areas. Recommendations must be made to local and national governments, to NGOs,
and to the affected communities themselves as to how to reduce absolute poverty; and
to anticipate, protect against, and reduce the economic and mental impacts of natural
disasters. State and local economic development officials should focus their efforts on
encouraging education and retaining and attracting better educated residents. The resulting
social capital will be the best gauge of the continued rehabilitation of the victims and
the creation of individual and social resilience in case of any such event in the future.