Disaster events impact Asia and the Pacific more than any other region in the world. In light of current and future climate and disaster risks, there is an urgent need to address the region’s underinvestment in disaster risk and reduction. The publication provides an overview of financing opportunities for developing Asia—including instruments and mechanisms—as well as country case studies and practical tips for governments to implement enhanced disaster risk reduction.
To strengthen resilience, disaster risk reduction seeks to (i) prevent new disaster risk, (ii) reduce existing disaster risk, and (iii) manage residual risk. The business case for resilience investments is compelling with an average $1 spent saving $4–$7 in response. Disaster risk reduction is especially relevant in Asia and the Pacific, because it is anticipated that the growth in average estimated annual disaster losses will outpace gross domestic product (GDP) growth in the region. However, the majority of funding has been focused on post-disaster recovery and reconstruction rather than disaster risk reduction. This publication is intended to guide policy makers and administrators in developing member countries and stakeholders interested in financing disaster risk reduction.
It seeks to support countries in addressing the financial underinvestment in disaster risk reduction by (i) setting the scene and confirming the business case for advancing disaster risk reduction finance; (ii) outlining the context of disaster risk reduction and its finance; (iii) conceptualizing approaches, types, and instrument prioritization criteria for disaster risk reduction finance; (iv) explaining instruments and mechanisms that can accelerate the speed and increase the scale of disaster risk reduction finance by the public and private sectors, as well as international development organizations; and (v) outlining key steps for governments to further advance disaster risk reduction finance.