How preparedness pays off: Evolution, costs, benefits and prospects of disaster risk management in Georgia

This report summarizes a cost benefit analysis study in Georgia in November-December 2015. It highlights the cost effectiveness of the Georgia Red Cross Society’s work on disaster risk reduction and building community resilience. The GRCS program was launched in 2010 and has paid off extremely well, the three surveyed areas the identified benefit-cost ratios range between USD 12.51 and USD 54.54.

The study identifies avoided hazard losses as the main benefit and analyses the various channels that lead to loss avoidance, but also discusses the various mechanisms behind loss avoidance, and puts more emphasis on the economic, organisational and governance co-benefits.

Based on a survey amongst target households, interviews and document review, it finds that disaster risk reduction is even more valuable than commonly acknowledged. The study concludes with recommendations and an outlook concerning DRM structures and foci, future scenarios, a move towards resilience programming, and the future use of cost-benefit analyses.