Financing disaster risk reduction for sustainable development in Asia and the Pacific
This paper discusses - in light of investing in disaster risk reduction for resilience, one of four priorities for action as stipulated by the Sendai Framework for Disaster Risk Reduction 2015 – 2030 - how resources are used, and looks at two specific financing tools - parametric insurance and international risk pooling mechanisms - for countries to consider for DRR purposes. Both tools have the potential to significantly reduce disaster risks at multiple levels of society.
The first chapter briefly looks at the impacts of natural disasters on sustainable development in Asia and the Pacific as well as the effectiveness of DRR investments. This is followed by an overview of current DRR efforts made by governments and international donors from a financing perspective. The third and fourth chapters give detailed descriptions and analysis of parametric insurance schemes and international risk pooling mechanisms respectively.
The publication is meant as a discussion paper for the forthcoming Third International Conference on Financing for Development, Addis Ababa, Ethiopia, 13-16 July 2015.
Working Paper WP/15/09
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