From Principles to Practice: Financing Disaster Risk Reduction and Residual Risk
The G20 and OECD now agree that reducing disaster risk and pre-arranging finance for the risk that remains should be planned together. National policy hasn’t caught up.
This report reviews disaster risk management laws, strategies and plans in South Africa, Pakistan and Tonga, alongside disaster risk financing strategies from 10 more countries. It asks whether the two sides are coordinated, based on quantified risk, costed, and backed by clear funding roles.
The link is widely recognised but rarely used. Strategies are written at different times by different ministries, few are costed, and none factor risk reduction into how they choose financing instruments. Recommendations are addressed to governments and development partners.
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Rewriting the rules of disaster finance
On #DRRDay, UNDRR and the Centre look at why disaster finance needs to cover disaster prevention, not just the cost of recovery.
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disaster risk financing strategies reviewed include risk reduction options when deciding which financing instruments to use
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disaster risk financing strategies make any attempt to estimate the government’s contingent liability
Key Terms Used In This Report
Financing approved before crises that is released automatically when agreed triggers are met.
The disaster risk that remains even after effective measures to reduce it, which must be managed through preparedness, response and financing.
Possible financial obligations that only become real if specific future events occur.
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