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Central America is exposed to a variety of natural hazards such as earthquake, volcanic eruption, landslides, and floods. This study considers Central America as a group of six countries: Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama, on the basis of their geographical, cultural, historical, and geopolitical backgrounds. The region, located on four conjunct tectonic plates, with 24 active volcanoes, and in the path of hurricanes, has experienced 348 disasters in the last 40 years (from 1980 to 2010), resulting in 29,007 deaths (725 on an average per year) and US$16.5 billion in economic losses (US$400 million per year) (Emergencies Disasters Data Base (EM-DAT), 2009). This amount of US$16.5 billion in economic losses is nearly three times greater than Nicaragua's GDP in 2009 (US$6.14 billion), according to Central Intelligence Agency (CIA) (2010) data. High disaster risk in the region is also demonstrated from the World Bank (2005) indicating that all six Central American countries rank among the top 35 countries in the world at high mortality risk from multiple hazards.

Cartago City is located in the central valley of Costa Rica. Situated at the southern foot of the Irazu volcano and characterized by rugged mountainous topography, the city in general is exposed to multiple natural hazards including floods, volcanic eruption, and pyroclastic flows. Indeed, the city has experienced catastrophes in 1724, 1861, 1891, 1928, and 1951. The most recent one was a combination of pyroclastic flows and several floods in 1963–1964. This catastrophe caused US$3.5 million of economic damage as well as 20 deaths (ICE, 1966).