Cost benefit studies on disaster risk reduction in developing countries

EAP DRM knowledge notes, working paper series no 27:

This note briefly surveys existing evidence in developing countries with regard to the benefits and costs of various disaster risk reduction interventions so as to provide some general lessons for disaster risk reduction (DRR) practitioners on the strengths and limitations of such existing work. In doing so, the note examines evidence on the economics of DRR in developing countries.

The note begins by providing a comparative guideline for analysis. This is followed by a summary diagnostic of seventeen case studies along five key dimensions comprising the guideline as follows: (1) metric and methodology, (2) sources of uncertainty, (3) measuring fatalities and injuries, (4) results obtained and, and (5) disaggregated impacts. In the concluding section that follows, the note discusses the overall trends in the field of performing cost and benefit analysis of DRR measures and offers some recommendations for ways forward.

Of the seventeen disaster cases that were examined, eight are from Asia and Pacific (Fiji, India, Indonesia, Philippines, Taipei City), four are from the Caribbean (Dominica, Jamaica), two from Eastern Europe (Romania, Turkey) and three from South America (Argentina, Bogota City/Colombia, Peru). Hazard wise these studies deal with floods (Argentina, Fiji, India, Indonesia, Peru, Philippines and Romania), hurricane/typhoon/cyclone (Dominica, India, Jamaica, Vietnam), and earthquakes (Bogota City, Istanbul, and Taipei City).

This working paper series is produced by the East Asia and Pacific Disaster Risk Management Team of the World Bank, with support from the Global Facility for Disaster Reduction and Recovery (GFDRR). The series is meant to provide just-in-time good practice examples and lessons learned from projects and programs related to aspects of disaster risk management.