Paper short abstract:

The Sardoba dam accident led to many economic and social consequences. This paper questioned whether dam failure effected the prices and external trade in the region, if yes, how severe was the impact of the catastrophic event.

Paper long abstract:

The Sardoba dam accident led to many economic and social consequences. In this paper questioned whether dam failure effected the prices and external trade in the region, if yes, how severe was the impact of the catastrophic event. Furthermore, this thesis tries to answer how well-being changed in the damaged area because of the dam accident. In order to evaluate this impact, the paper uses quasi-experimental approach to the questions and uses multiple group interrupted time series analysis, combining conversational interviews in Sardoba district. Navoiy region is selected as a counterfactual to Syrdarya region, as it has the second biggest dam in its territory and demonstrates highest correlation of the pre-intervention data with the Syrdarya. This paper considers using some qualitative tools such as interview and participant observations to explain the Sardoba dam accident effect on well-being of inhabitants. In order to be consistent to quantitative results and counterfactual principles the fieldwork was conducted in Navoiy region too. Findings showed that due to the accident in Sardoba district monthly prices (plov prices) have been increasing by 1217 UZS more than it used to be before the accident. There was no any significant evidence of change in external trade patterns because of the dam failure. Conversational interviews and participant observations disclosed that life in Sardoba changed dramatically after the dam accident. Local victims were provided with new houses or were received free renovations of their old houses. Government distributed financial compensations in the form of 40 million UZS for each family. Moreover, local victims received home appliances for their new houses. One of the most life-changing reforms in Sardoba was provision of natural gas and clean water to each house. Now people can heat their houses in winters not using coal or wood. Children were exposed to better sanitation and women had more time to other activities than keeping house. However, local people in Sardoba repeatedly mentioned about unemployment, which was caused by lack of facilities to keep cattle in new apartments and less peasantry due to not owning land by people. Furthermore, it is worth to mention about the price increase and how people in Sardoba district were facing to several issues related to price increase. This was mostly explained with eater shortage, sand coverage of land because of the flood, lack of land and cattle keeping. Another problem was “sudden urbanization problem”, as people encountered more expenses in order to afford urban life facilities, whereas they were still earning less through rural life. In addition, local people faced to health problems because of the catastrophic event in Sardoba. The fake accident alarm was even more panicking than the actual dam failure. The locals mentioned about how they were witnessing more heart diseases, diabetes and mental issues. Despite the fact that people were open about their challenges due to the dam failure, they were still grateful to everything what they got. They were thankful to government for its support. They were happy