Financing for disaster risk management should be anticipatory and shared by government and other concerned parties, the World Bank said, as it noted that the country loses about P20 billion yearly due to natural calamities, reported Business World online.
In a special section of its Philippine Quarterly Update released yesterday, the Bank’s Manila office said improved management of disaster risk funds could reduce overall fiscal burden caused by natural calamities such as typhoons, floods, earthquakes and volcanic eruptions.
The World Bank report recommended the implementation of a risk layering approach to adjust financing instruments according to risk exposure. 'It would be advisable for the government to first put in place a reliable and well-functioning disaster risk financing mechanism for frequent but relatively small catastrophic events before moving forward with the plans to deal with less frequent highly catastrophic events,' the World Bank report said.