Global Facility for Disaster Reduction and Recovery

1
Global Facility for Disaster Reduction and
Recovery
mainstreaming disaster resilience and adaptation
in poverty reduction
Click on the map to access the Hotspots Mapping
Tool
Risk levels? Top 30Red Middle 30yellow
Lowest 40 Blue

• Saroj Kumar Jha
• Task Manager, GFDRR
• The World Bank

List of Pipeline Hotspot Countries
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All disaster statistics suggest that disaster
risks to development are increasing
Global Facility for Disaster Reduction and
Recovery
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Natural disasters are increasing due to increased
human-induced vulnerabilities and climatic
uncertainties
F
Number of disasters
W
E
types of triggering hazards
SourceEMDAT
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world is experiencing greater impact of hazards
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Number of natural disasters by origin regional
distribution1995 - 2004
Regional distribution of disasters by triggering
hazards 1995 - 2004
Source EMDAT/ISDR
6
Global Facility for Disaster Reduction and
Recovery
Climate-related hazards( windstorms, surges, and
floods) are affecting more people now
hazards Mean number of persons affected for one killed(1974-88) Mean number of persons affected for one killed(1989-2003) Proportion of change between the two periods
Drought 119,883 44,748 -63
Earthquake 20,780 8,143 -61
Heatwave 2,545 14,915 486
Flood 9,503 11,763 24
Slides 1,193 335 -72
Volcano 5,395 11,960 121
Wave/surge 61 3,096 4975
Wildfire 995 2,523 153
Windstorm 5,977 21,225 255
total 11,526 13,706 19
SourceEMDAT
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Natural disasters can make a difference in the
economic development of poor countries
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More than four-fifths of GDP is located in areas
of relatively high economic risk subject to one
or more hazards and more Hotspots Study by
World Bank and Columbia Univ

• Economic loss risks are increasing

9
Highest hazard areas have higher than average
population density, GDP, agriculture GDP density
and transportation length
Source Hotspots Study( WB)
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But underdeveloped economies have limited
capacities to cope with disasters
Largest historical losses due to disasters
compared to economic indicators
USA Argentina Hondurras Nicaragua
GDP(millions) 7834000 293005 4725 2024
GDP/percapita 29267 8214 790 433
Aid/GDP - 0.03 6.3 20.3
Largest historical loss 45181 2432 1951 2318
Loss/capita 168.8 68.2 326.1 495.5
Loss/GDP 0.6 0.8 41 115
Loss/tax revenue 2.9 6.7 293 499
Loss/GD Savings 3.6 4.1 189 4044
Loss/Net domestic credit 0.7 2.8 166 71
WDI 2000 IADB 2001 MunichRe 1998, ECLAC, 2000
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Uninsured exposure is very high in underdeveloped
economies
Percentage of total losses insured by wealthy
versus poor countries Ratio of insured to total
losses according to country income groups for the
period 1985-1999
Source MunichRe, 2000
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Fiscal and Economic Effects of Disasters
higher is the uninsured economic loss as of GDP
and Government Revenues
Uninsured Economic Loss as
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There is ample evidence that poverty is the most
important trigger which turns hazards into
disasters
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Undernourished Population (2000 - 2002)
Global hunger map
Almost 50 of food emergencies have been caused
by natural disasters
Natural disaster-related mortality risks are
higher in area experiencing food emergencies
GDP risk hotspots
Mortality risk hotspots
Risk levels? Top 30Red Middle 30yellow
Lowest 40 Blue
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Poverty-related policy objectives cant be met if
disaster risks are not taken into account
Projected number of people in poverty,
considering disproportionate impacts on the poor
(Nicaragua case study)
Household model based on NLSMSS by WB/UNDP/GON
Source IIASA/Provention/World Bank, 2002
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Climate change and variability will exacerbate
the hazard and vulnerability in countries prone
to multiple disaster risks
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Climate change is with us

• Global average surface
• temperature increase
• 0.6?C over 20th Century
• Predicted 1.4 to 5.8?C
• increase in global avg surface temp by 2100
• Global mean sea level
• Projected to rise by 0.09 0.88 m between 1990
  to 2100

SourceRafik Hirji, World Bank
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Kenya variability and growth
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Ethiopia GDP highly correlated to rainfall

• Impact of historical levels of variability on
  2003-2015 growth projections
• 38 decline in avg. GDP growth
• 25 increase in poverty

SourceRafik Hirji, World Bank
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More than 40 area becomes unfit for tea growing
with 2 degrees increase in temperature
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Unplanned development is adding to existing high
risk levels of the society
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Rapid urbanization could be the single most
impact factor contributing to rapidly increasing
complex risk profile of modern societies
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And, when disasters do occur..
Despite donor support and reallocation of ongoing
development portfolio, recovery has been under
funded with detrimental impact on development.

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Gap between end of humanitarian phase and
initiation of medium/long-term recovery needs
urgent attention of development community.
Recovery slows down due to termination of relief
phase and insufficient funds for immediate
recovery
Standby financing facility can accelerate
immediate recovery
Post-disaster gaps in recovery
Flash appeal by OCHA
0
12
18
4
months
End of relief phase
Disaster occurs
IFIs Recovery projects begin
End of immediate recovery phase
Source IRP paper
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But global disaster landscape is changing

• Greater recognition that disasters are a
  development issue..

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Hyogo Framework for Action (HFA) adopted by 168
governments and international system is the
framework for disaster reduction

• Growing consensus on vulnerability reduction by
  building disaster-resilience and adaptive
  capacity to changing climate
• Consensus on pro-active approach to manage and
  reduce risks (HFA, Tsunami, Changing climate..)

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Priority setting in resource constraint
environment is a challenging task

• Disaster reduction requires multidisciplinary and
  multi-institutional intervention
• Interventions need to be affordable, feasible,
• socially acceptable, and effective
• Stakeholders have different priorities
• Approaches need to be tailored to local
  conditions
• Soft factors and consultation are critical for
  success
• Challenge of developing focused and effective
  mitigation program

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Coordination among all partners is the key to
success

• Lack of coordination internal as well as
  external
• Lack of country frameworks that create win-win
  situation and are complementary
• Guided by principle of comparative advantage
• Countries should be in the driving seat
• However, not every country has capacity to
• coordinate

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Capacity and drive of private sector is not
fully utilized

• Provides highly specialist knowledge
• Can contribute to risk financing
• Potential partner as target group for
• introducing change in the country
• More focus needs to be given to partnerships
  between public and private sector

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Countries are increasingly willing to invest into
disaster mitigation and emergency preparedness

• Many development partners have success stories
• WB success stories in Colombia, Turkey, and
  Romania
• ?? 100 risk mitigation projects
• ?? Prior to a catastrophic event
• ?? Using own funds and external financing
  (no grants)
• Demand for risk mitigation investments can be
  further stimulated through
• ?? Knowledge creation and sharing
• ?? Analytical work
• ?? Financial incentives
• ?? Successful programs in other countries

GFDRR
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Increasing trend in vulnerability and consequent
disaster losses must be reversed quickly through
strategic interventions and optimal investment in
preparedness and mitigation

• Targeted interventions in 86 natural disaster
  hotspot countries through PRSPs/SEDPs

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Global Facility for Disaster Reduction and
Recovery designed as a partnership between
UN/ISDR and World Bank embedded in the ISDR
system
Building on good practices and global consensus

• bridges knowledge gap,
• fosters coordination and partnerships at all
  levels
• increases level of cooperation,
• helps to stimulate demand for disaster
  mitigation, vulnerability reduction and
  adaptation to climate change
• provides funds for analytical work and
  facilitates knowledge sharing

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Vulnerability reduction is the core of GFDRR and
mandated to reverse the rising trend in disaster
losses in developing countries by 2015

• Support ISDR to develop a coherent and
  coordinated approach to risk reduction ( TRACK 1)
• Assist natural disaster hotspot countries to
  mainstream disaster risks in development
  strategies (TRACK 2)
• Speedy and predictable financing for disaster
  recovery in low income countries (TRACK 3)

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Global Facility for Disaster Reduction and
Recovery
Ex-ante
Global and regional deliverables
Track 1Partnership and Advocacy
ISDR Sectt Advocacy, standardizations
dissemination
WB DGF funding 5 million per year
Risk assessment, Risk Management strategies,
Capacity building Private-public partnerships
Track 2Prevention
UN, WB, other IFIs, IFRC, NSAs etc
Multi-donor Trust Funds
Country level deliverables
Global Facility for Disaster Reduction and
Recovery
Disaster Mitigation project Development,
disaster recovery Financing strategy
Track 3 Recovery Financing
standby financing facility for disaster
recovery
Ex-post recovery financing Facility for low
income countries (integral to IDA)
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TRACK I A partnership between the World Bank and
the Inter-agency Secretariat of the International
Strategy for Disaster Reduction (UN/ISDR)

• To enhance global and regional advocacy,
  partnerships and knowledge management for
  mainstreaming hazard risk management in low and
  middle-income countries at risk.
• To promote the standardization and harmonization
  of hazard risk management tools, methodologies
  and practices.

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How does Track 1 operate?

• Only regional and global programs are eligible
• Program partners are ISDR system members at
  global and regional levels
• Regional intergovernmental organizations are the
  key partners for implementation of these
  initiatives
• Under the overall framework approved by
  Consultative Group
• Proposals prepared by ISDR and
• reviewed by GFDRR Secretariat
• GFDRR Steering Committee approves the Work
  Program
• Proposals can be initiated by
• Governments, UN system, IFIs, bilaterals, NGOs,
  private sector
• Endorsed by Regional Intergovernmental
  organizations for all regional programs
• Endorsed under the ISDR system joint workprogram
• ISDR Sectt manages the Track 1 programs

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Track 1 will support regional and sub-regional
strategies for disaster reduction

• Track I will allocate almost three-quarters of
  its annual resources, of around US 5 million,
  to regional activities, in partnership with
  regional inter-governmental organisations.
• World Bank provides this resource to ISDR

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Priority results in FY 07 under Track 1Regional
level (in partnership with regional
inter-governmental organizations)

• Regional Risk Reduction programmes
• South Eastern Europe feasibility study in 10
  countries on regional cooperation in weather
  forecasting and an early warning system, disaster
  response coordination and a regional risk
  transfer pool.
• Middle East and North Africa Study for
  identification of potential risks for natural
  hazards and mapping of institutional capacities.
  
• South Asia knowledge networks for the exchange
  of good practices in emergency reconstruction and
  hazard risk management.
• Africa a regional cooperation programme on
  drought risk reduction and climate change
  adapttaion, anchored in regional economic
  commissions.
• Central America Regional study on risk exposure
  and financial response capacity of financial
  institutions

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Priority results in FY 07 under Track 1Global
level

• Global Information Platform established ,
  consisting of PreventionWeb to serve as virtual
  clearing-house for disaster risk reduction .
• Global partnerships with research institutions,
  parliamentarians, media and the private sector to
  support implementation of the Hyogo Framework .
• Contributing to the development of a global
  report on risk benchmarking and emerging risks
  (available in 2008).
• A global report on progress made towards reducing
  disaster losses through the implementation of the
  Hyogo Framework for Action through the collation
  and aggregation of regional reports.
• Guidelines on (a) implementing the Hyogo
  Framework for Action and (b) Disaster Proofing
  Millennium Development Goals through poverty
  reduction strategy papers (PRSPs).(c) Integrating
  disaster reduction in MDG of Reversing
  Environmental losses and in adapting to climate
  change.

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Track 1will promote global Private-Public
dialogue on disaster risk reduction

• A joint initiative of WEF, ISDR and WB
• A. Overall Goal To foster and facilitate the
  engagement of the global private sector in
  disaster risk reduction activities
• B. Main Activities
• Insight Building
• studies on role of private sector in disaster
  risk reduction
• Multi-stakeholder workshops( e.g. economic
  summits)
• Partnership development
• Biletarel discussions,
• Biletaral partnership development
• Development of business alliances
• Clearinghouse for PPP in disaster risk reduction

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Global Facility for Disaster Reduction and
Recovery
Ex-ante
Global and regional deliverables
Track 1Partnership and Advocacy
ISDR Sectt Advocacy, standardizations
dissemination
WB DGF funding 5 million per year
Risk assessment, Risk Management strategies,
Capacity building Private-public partnerships
Track 2Mitigation
UN, WB, other IFIs, IFRC, NSAs etc
Multi-donor Trust Funds
Country level deliverables
Global Facility for Disaster Reduction and
Recovery
Disaster Mitigation project Development,
disaster recovery Financing strategy
Track 3 Recovery Financing
standby financing facility for disaster
recovery
Ex-post recovery financing Facility for low
income countries (integral to IDA)
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Track 2Mainstreaming disaster reduction in
development processes to ensure preparedness
becomes routinely mainstreamed into dimensions of
responsible public management in all planning
processes.

• Through Track 2 of the Facility, the World
  Bank in partnership with development partners
  will mainstream hazard risk reduction and
  mitigation into its clients Country Assistance
  Strategies (CAS) and Poverty Reduction
  Strategies
• Resources needed - 350 million over 10 years

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Track 2A. Pre-disaster risk management strategy
and institutional development including early
warning systems and emergency preparedness in low
and middle income countries

• (e.g., National strategies for risk reduction,
  institutional frameworks for risk management,
  including policy, legal, and organizational
  elements, National plans for multi-hazard early
  warning systems, National incident management
  system for emergency response, etc.)

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Track 2B. Supporting innovative projects to
demonstrate cost-effective hazard risk mitigation
to reduce risks associated with critical
infrastructure

• (e.g., as and where demand is articulated by
  client governments for specific initiatives like
  strengthening education and health infrastructure
  in hazard prone areas through community-based
  initiatives, promoting use of traditional
  construction techniques for disaster-resilient
  housing, etc.)

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Track 2C. Learning, research, and knowledge
management for current and future risks

• (e.g., documenting lessons from national
  experiences in disaster recovery and
  dissemination research in management of current
  and emerging risks documenting traditional
  coping mechanism scientific research in climate
  change management and adaptation managing the
  risks due to sea level rise, etc.)

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Track 2D. Developing frameworks to catalyze
investment in hazard prevention, mitigation and
preparedness

• (e.g., National Hurricane, Cyclone or Typhoon
  Risk Mitigation Program, National Earthquake Risk
  Mitigation Program, National Catastrophic Risk
  Financing Program, National Disaster Risk
  Communication Program, etc.)

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Track 2E. Pre-disaster Recovery Financing
Strategy and Plans established in low and middle
income countries
Insurance
Cum. Prob.

• (e.g. pre-disaster plans for damage and needs
  assessment and coordination for immediate,
  short-term and long term recovery developing
  risk financing and transfer options including
  insurance and reinsurance, catastrophe bonds,
  weather derivatives, contingent credit, reserve
  fund, etc )

Smoothing Mechanisms Credit, Reserve Funds
Retained Risk Self Funded
Size of Loss
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Track 2 will promote private-public partnership
for mainstreaming disaster reduction

• To establish economic incentives, both regulatory
  and market-driven, for improved risk-based
  monitoring and maintenance of key physical
  infrastructures (both publicly and privately
  owned and operated).
• To put in place a cross-industry and
  public-private partnership with responsibility
  for this monitoring and maintenance.
• Key issues
• Identification of key infrastructures and
  relevant risk exposure
• Insurance establishing risk-based rates
• Incentives (market and regulatory) for highest
  standards in frequency and quality of maintenance
  and retrofitting. Discuss the role of government
  grants industry standards nationalized building
  codes other incentives
• Taxation policy taxing property based on risk
• Others

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Phasing of countries for mainstreaming initiative
under Track II
 Year Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12  
 Phase 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018  
P1 10                       10
P2   10                     10
P3     10                   10
P4       10                 10
P5         10               10
P6           10             10
P7             10           10
P8               10         10
P9                 10       10
P10                         90
3-yr TA
Ten countries enter planning cycle each year
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How does Track 2 operate?

• Countries lead the process
• Selection of countries
• Pipeline PRSPs/UNDAF/CASs/SEDPs are eligible
• National governments may also request to develop
  a disaster reduction strategy
• Proposals are routed thru WB Country Offices
• Any partner of ISDR system at country level can
  initiate a proposal for mainstreaming,
• however proposal has to be endorsed by national
  governments
• CG approves final selection of countries (if more
  countries request than the resources permit)
• GFDRR Sectt prepares consolidated proposals

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Track 2 in FY 07

• Work has commenced in Mozambique, Malawi,
  Nicaragua, Nepal and Vietnam with DFID funding
• To be expanded to 10 more countries in the next
  few months
• Close collaboration with all development partners
  in the country
• Spain, Sweden, Switzerland, Australia, UK,
  Denmark and Japan have already pledged financial
  support
• Canada, EC, Germany, Norway and Finalnds support
  being discussed
• Many Recipient countries keen to contribute

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Track 2-work in progress

• Design of different funds to support
  mainstreaming through partnership
• Multi-donor fund for Mainstreaming Disaster
  Reduction in development strategies
• In pipeline
• Knowledge and Technology Transfer Fund
• Space Application in disaster reduction Fund
• Catalytic fund for Private-Public Partnership in
  disaster reduction and recovery

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Global Facility for Disaster Reduction and
Recovery
Ex-ante
Global and regional deliverables
Track 1Partnership and Advocacy
ISDR Sectt Advocacy, standardizations
dissemination
WB DGF funding 5 million per year
Risk assessment, Risk Management strategies,
Capacity building Private-public partnerships
Track 2Mitigation
UN, WB, other IFIs, IFRC, NSAs etc
Multi-donor Trust Funds for Mainstreaming
Country level deliverables
Global Facility for Disaster Reduction and
Recovery
Disaster Mitigation project Development,
disaster recovery Financing strategy
Track 3 Recovery Financing
standby financing facility for disaster
recovery
Ex-post recovery financing Facility for low
income countries (integral to IDA)
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Track III

• A Standby Recovery Financing track is under
  design, proposed to be operated through a
  mechanism linked to the International Development
  Association (IDA).

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TRACK III Features

• A Standby Recovery Financing Facility to support
  low-income countries
• Phase I
• Enhance global preparedness for recovery
• Phase II
• An incentive-based financing mechanism for low
  income countries to invest in ex ante risk
  management

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Track III ResultsTo be implemented in close
consultation with the UN and IFIs

• Phase I ( 50 million)
• Greater institutional preparedness and
  coordination among all stakeholders for
  accelerated recovery
• Pre-disaster Coordination among all stakeholders
• Pre-disaster agreements on tools, co-financing
  etc
• Phase II (to be estimated)
• An incentive-based financing mechanism for low
  income countries to invest in ex ante risk
  management
• Linked to ex ante investments
• Rapid and predictable financing available for a
  sustainable disaster recovery operation

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Building resilient communities and nations
Measuring Results in GFDRR
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Governance and Management of GFDRR is in support
of ISDR arrangements
Global agenda setting in disaster reduction

Policy setting, strategic advice and goal setting
for the Facility
Global Platform for DRR
Consultative Group (GFDRR) Chair SDN
VP Co-chair Donor Govt (1-largest donor) Member
Donor Govts (3), Recipient Govts (4), Private
Sector donors (2), Chairperson, GPDRR of ISDR,
MDBs, Industry/Academic/Professional bodies(5)
Management Oversight Board
ISDR Sectt
System members
Technical Advisory Group (GFDRR) Experts and
professionals drawn from developed and developing
countries to advise on technical, quality and
monitoring issues,
Approval of work programme and budget, review and
monitoring
Steering Committee (GFDRR) Chair SDN VP/Director
(TUD) Members Reg Sector Directors, Director
(OPCS), Director (OPD), Director, ISDR Sectt,
Reps of regional organizations, Experts
Secretariat of the Global Facility
Operations Charter being developed will define
the TORs of all bodies
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Operations Charter and financial structure of
GFDRR

• Interim Operations Charter adopted on 29 Sept
• constituting
• Ad-hoc Steering Committee
• Ad-hoc Consultative Group
• Approved
• Track 1 work program and results framework
• Track 2 work program in five countries
• Authorized GFDRR Sectt to develop detailed
  Operations Charter
• Operations Charter being drafted for wider
  consultations and will be placed before next
  GFDRR meetings on 23 Feb 2007
• Financial structure
• Track 1
• Bank contributes 5 million per year
• Track 2 (donor contributions)
• 350 million needed
• 20 million in Y1 to 40 million in Y3 onwards
• Core fund (minimum 5 million over 3-Yr period
  to be a CG member)
• Non-core fund (earmarked contributions, no
  minimum)

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Thank you sjha1_at_worldbank.org www.worldbank.org/ha
zards/gfdrr