Economic assessment of drought risk management

The report investigates the broad concept of the economics of drought management, provides a conceptual, two-tier framework for the assessment of proactive and reactive actions, and disseminates case studies for the implementation of the framework in decision-making processes. This report aims to assist decision-makers, policymakers, planners, and national authorities responsible for planning and programming to conduct an exhaustive economic assessment related to drought. 

The results of the investigation provide clarity on the classifications of costs and benefits and enable a better understanding of what compose each type of cost or benefit. With these, a more extensive coverage for comparing benefits of action and costs of inaction is envisioned. Whereas the cost items of inaction are extensively identified in economic assessments, accounting those related to proactive drought measures needs improvement. The report proposes a classification of costs based on the timing or timelines by which costs are incurred.