Boosting Financial Resilience to Disaster Shocks : Good Practices and New Frontiers

World Bank Group

World Bank, Washington, DC

关键词: ECONOMIC SHOCKS;    NATURAL DISASTER;    FINANCIAL RESILIENCE;    CATASTROPHE RISK;    DISASTER RISK FINANCE;   

RP-ID  :  137550

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Governments face growing contingentliabilities from disasters as they tend to shoulder asignificant share of disaster response and recovery costs.Disaster shocks increase government expenditure and hampereconomic activities.An increasing number of countries aredeveloping financial protection strategies - a suite ofpolicies and financial instruments - as part of theirmacro-fiscal policy to secure access to pre-arrangedfinancing and protect the fiscal balance and budget whendisasters strike.Investments in physical and socialresilience complement and reinforce financial resilience.Pre-arranged risk financing can help governments reduce thefiscal cost of disasters.Sovereign catastrophe risk pools,established to help especially low-capacity countries betteraccess financial markets, are evolving towardmultifunctional platforms to strengthen financial resiliencein their region.Governments are moving toward adoptingmore sophisticated risk financing strategies that bettermatch financial instruments to their liabilities, especiallyfor public assets (including infrastructure),national-subnational cost sharing, and social safety nets.New technology and innovations such as Earth ObservationData, Fintech, and big data have the potential tosignificantly enhance and boost systems for financialresilience against disaster shocks.Development partnerscontinue to play a critical role in helping developingcountries improve their financial protection strategies.Recent experiences of G20 countries and others have led tothree new frontiers on innovative crisis and disaster riskfinance.Although significant progress has been achieved indisaster risk finance, some limitations and challengesremain.All successful reforms start with concrete firststeps and an ongoing focus on enhancing fundamental systemsand institutions.Financial resilience requires theleadership of ministries of finance in coordination withother public agencies and the private sector. At the requestof G20 Finance Track members, this discussion note wasprepared to: (i) take stock of the developments in fiscalmanagement of disaster risks within the broader macro-fiscalframework; (ii) highlight recent progress by individualcountries and the international community; and (iii) presentnew frontiers in disaster risk finance.