Improving the Assessment of Disaster Risks to Strengthen Financial Resilience : A Special Joint G20 Publication by the Government of Mexico and the World Bank
Rising losses from adverse natural events are compelling leaders of countries to develop more proactive approaches to risk management. In 2011 the world witnessed record losses from disasters caused by natural hazards with estimated costs of up to...
| Main Authors: | , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/606131468149390170/Improving-the-assessment-of-disaster-risks-to-strengthen-financial-resilience http://hdl.handle.net/10986/26784 |
| Summary: | Rising losses from adverse natural
events are compelling leaders of countries to develop more
proactive approaches to risk management. In 2011 the world
witnessed record losses from disasters caused by natural
hazards with estimated costs of up to US$380 billion. Events
in both developed and developing countries have shown that
this is not a threat facing just one part of the world. In
this context, the Mexican G20 Presidency included this
growing threat to sustainable development on the
group's agenda, a decision which was welcomed by G20
finance ministers and central bank governors. The economic
costs of disasters complicate public financial management
for many countries. Natural hazards are nondiscriminatory,
potentially affecting all countries irrespective of economic
status. The negative fiscal impacts of disasters can hamper
longer-term growth and economic development. While lower
income countries bear the brunt of the human impact from
disasters, middle income countries experience the largest
economic impact relative to GDP. Responding to a G20
mandate, this publication brings together the experiences of
G20 countries in protecting their populations and assets
against natural hazards. Prevention is better than cure;
there is a need to raise awareness about disaster risks and
their potential financial consequences. Increased resilience
and sustainable development will require a more proactive
approach to tackle risk at its roots. Preparedness measures
to cope when disasters strike need to be combined with ex
ante measures to avoid disasters in the first place. The
need for better information on adverse natural events and
associated economic, fiscal and social impacts emerges as a
key message. Countries can strengthen their financial
resilience to disasters. Governments should stimulate
innovative financial solutions with and leverage the
technical and financial capacity of the reinsurance and
capital markets through public private partnerships. |
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