Much of the field of political sociology is defined by a confrontation between state- and society-centered theories of policy making. State-centered theories (Evans, Rueschemeyer and Skocpol 1985; Finegold 1995; Orloff, Orloff and Skocpol 1988; Shefter 1994; Skocpol 1979; Skocpol 1992; Skowronek 1982) emphasize the effects of autonomous political actors, institutions, or opportunities on the outcomes of policy- making processes, whereas society-centered approaches (Baldwin 1990; Dahl 1961; Domhoff 1983; Domhoff 1996; Esping-Andersen 1990; Lipset 1963; Moore Jr. 1966) focus on the interests and motivations of collective actors in civil society. Research has benefited greatly from the insights generated by both schools, yet current scholarship suggests that the distinction between state and society can be misleading (Somers 1995).

This paper identifies the impacts of the Lorna Prieta earthquake on the economy of the San Francisco Bay Area as a whole and specifically for small businesses. Findings are based on an analysis of published agrg egate economic data and a survey of small businesses in two cities. The paper finds that the economy showed a great deal of resistence, and concludes by outlining three lessons for future disaster planning in all areas prone to natural disasters.

On October 17, 1989, an earthquake of 7.1 magnitude on the Richter scale shook northern California. Centered in the Loma Prieta area of the Santa Cruz mountains, south of the San Francisco Bay Area, the quake caused significant damage not only in nearby cities such as Santa Cruz and Watsonville but also in major urban centers such as Oakland and San Francisco (see Figure 1). For a region long aware of earthquake risks, the quake was a sharp reminder of vulnerability. As history has shown, the area faces the potential risk of an earthquake of ten to fifteen times the magnitude of the October 17th quake, possibly centered much closer to urban centers, any time in the next few decades. The most recent major quake, then, has provided an opportunity to examine the regions economic vulnerability to the damage and disruption caused by earthquakes.