Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience

Mechler, Reinhard ; Mochizuki, Junko ; Hochrainer-Stigler, Stefan

World Bank, Washington, DC

关键词: ALLIANCE;    RISK PROFILES;    CONTINGENT LIABILITIES;    RISKS;    CAPITAL MARKETS;   

DOI  :  10.1596/1813-9450-7635
RP-ID  :  WPS7635

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper addresses the questionwhether and how co-benefits, through disaster resiliencebuilding, can be further promoted.Co-benefits are definedas positive externalities that arise deliberately as aresult of a joint strategy that pursues several objectivessynergistically at the same time, such as disaster riskmanagement and development goals, or disaster riskmanagement and climate change adaptation. Of particularinterest is the question of how the economic and broaderbenefits of disaster risk management can be recognized andrealized by those in charge of fiscal policy decisions. Thepaper considers the interplay between public disaster riskmanagement investment and fiscal policy, and provides anoverview of the current debate as well as assessmentmethods, tools, and policy options. In fiscal budgeting, ithas been standard practice to focus on direct liabilitiesand recurrent spending. Costs of disasters are often dealtwith after the fact only, rather than being considered ascontingent liabilities. As a consequence, the full costs ofdisasters have often not been budgeted for, and, with aprice signal missing, there is lack of clear incentives forinvesting in disaster risk management. Overall, the paperidentifies four steps and three dividends to be harnessed:(i) understanding fiscal risk; (ii) protecting publicfinance through risk financing instruments, the firstdividend; (iii) managing disaster risk comprehensively, thesecond dividend; and (iv) pursuing a synergistic,co-benefits strategy of concurrently managing disaster risksand promoting development, the third dividend.