GAR 2015 Main Report

Most disasters that could happen have not

happened yet.

Countries face a financing gap if they do not have the resources to buffer against infrequent but severe disaster losses. Many countries, including Algeria, Chile, Indonesia, Iran, Madagascar, Pakistan, Peru and many SIDS, would not pass a stress test of their fiscal resilience to a 1-in-100-year loss. Their limited ability to recover quickly may increase indirect disaster losses significantly. (→Chapter5)

The mortality and economic loss associated with extensive risks (minor but recurrent disaster risks) in low and middle-income countries are trending up. In the last decade, losses due to extensive risk in 85 countries and territories were equivalent to a total of US$94 billion. ( → Chapter 4 )

Extensive risks are responsible for most disaster morbidity and displacement, and represent an ongoing erosion of development assets, such as houses, schools, health facilities, roads and local infrastructure. However, the cost of extensive risk is not visible and tends to be underestimated, as it is usually absorbed by low-income households and communities and small businesses.

Economic losses from disasters such as earthquakes, tsunamis, cyclones and flooding are now reaching an average of US$250 billion to US$300 billion each year. Future losses (expected annual losses) are now estimated at US$314 billion in the built environment alone. This is the amount that countries should set aside each year to cover future disaster losses. ( → Chapter 3 )

For small island developing states (SIDS), future disaster losses represent an existential threat. For example, compared to Europe and Central Asia, SIDS are expected to lose on average 20 times more of their capital stock each year in disasters. The expected annual losses in SIDS are equivalent to almost 20 per cent of their total social expenditure, compared to only 1.19 per cent in North America and less than 1 per cent in Europe and Central Asia. ( → Chapter 3 )

	iv Most disasters that could happen have not happened yet. Countries face a financing gap if they do not have the resources to buffer against infrequent but severe disaster losses. Many countries, including Algeria, Chile, Indonesia, Iran, Madagascar, Pakistan, Peru and many SIDS, would not pass a stress test of their fiscal resilience to a 1-in-100-year loss. Their limited ability to recover quickly may increase indirect disaster losses significantly. (→Chapter5) The mortality and economic loss associated with extensive risks (minor but recurrent disaster risks) in low and middle-income countries are trending up. In the last decade, losses due to extensive risk in 85 countries and territories were equivalent to a total of US$94 billion. ( → Chapter 4 ) Extensive risks are responsible for most disaster morbidity and displacement, and represent an ongoing erosion of development assets, such as houses, schools, health facilities, roads and local infrastructure. However, the cost of extensive risk is not visible and tends to be underestimated, as it is usually absorbed by low-income households and communities and small businesses. Economic losses from disasters such as earthquakes, tsunamis, cyclones and flooding are now reaching an average of US$250 billion to US$300 billion each year. Future losses (expected annual losses) are now estimated at US$314 billion in the built environment alone. This is the amount that countries should set aside each year to cover future disaster losses. ( → Chapter 3 ) For small island developing states (SIDS), future disaster losses represent an existential threat. For example, compared to Europe and Central Asia, SIDS are expected to lose on average 20 times more of their capital stock each year in disasters. The expected annual losses in SIDS are equivalent to almost 20 per cent of their total social expenditure, compared to only 1.19 per cent in North America and less than 1 per cent in Europe and Central Asia. ( → Chapter 3 )	Page 1 Page 1 Page 2 Page 3 Page 4 Page 5 ->Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 30 Page 40 Page 50 Page 60 Page 70 Page 80 Page 90 Page 100 Page 110 Page 120 Page 130 Page 140 Page 150 Page 160 Page 170 Page 180 Page 190 Page 200 Page 210 Page 220 Page 230 Page 240 Page 250 Page 260 Page 270 Page 280 Page 290 Page 300 Page 310