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www.unisdr.org
14 May 2011
4 May, 2011, Brussels
Marc GordonHead, Donor & Business Partnerships
United Nations International Strategy for Disaster Reduction
4th STAKEHOLDERS MEETING OF THE BELGIAN DEVELOPMENT COOPERATION
Bridging Humanitarian and Development Aid:
Risk, Resilience and the International Strategy for Disaster Reduction (ISDR)
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24 May 2011
What is Disaster Risk Reduction (DRR) ?DRR:
• is a framework that minimizes vulnerabilities and disaster risks throughout a society,
• avoids (prevention) or limits (mitigation and preparedness) the adverse impacts of natural hazards,
• may inform emergency or humanitarian responses (prevention, adaptation, reconstruction),
• is nevertheless concretely situated across the sustainable development spectrum.
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34 May 2011
Loss accounting, risk assessment and identifying cost-effective risk management strategies is better than absorbing disaster losses.
Applied systematically and rigorously ex ante and ex post it will reduce future losses in lives and assets, by:
• ex ante investments to diminish humanitarian impact of future hazards;
• assuring build-back-better principles of effective reconstruction, rehabilitation, and recovery (‘window of opportunity’);
• playing a central role in assuring the sustainability and cost-effectiveness of development investments (ex ante and ex post).
Why reduce risk?
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44 May 20112011 Global Assessment Report on Disaster Risk ReductionRevealing Risk, Redefining Development
More and more people and economic activitiesare locating in hazard prone areas
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54 May 2011
• 2010 - a record year for disaster losses (US$ 218 billion); damages tripled compared to 2009.
• In Haiti, an estimated $8 billion was wiped out in a few seconds (equivalent to 40 years of US aid to Haiti).
• Only $20 million insured; rebuilding Haiti may cost as much as $13.9 billion.
• 2011 worse; with 50 disasters reported in Q1, killing nearly 30,000 people and affecting 8 million others, and est. losses already in excess of US$ 315 billion.
Why is DRR important?
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• The stuttering economic recovery of Japan, and other key sectors of the global economy, have been slowed as a result of the Great East Japan Earthquake earthquake and tsunami. Damage is estimated at US$300 billion.
• Damage from the earthquake in New Zealand is estimated at US$8.5 billion.
• Flood damage in Australia of US$9.5 billion caused a deficit in the Australian trade balance of February.
• Socio-economic and demographic impact – the changed the make-up of New Orleans following Hurricane Katrina, whose population is now 30% smaller, and richer and whiter.
..however not restricted to low income countries only.
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So…….the development of a global approach to reducing risk.
• Prevention, mitigation and preparedness emerge in 1970s, as droughts and famine in particular prompted scrutiny of the underlying socio-environmental causes of vulnerability.
• The International Decade for Natural Disaster Reduction in the 1990s.
• UNGA resolution 54/219, creates the International Strategy for Disaster Reduction (ISDR) and the secretariat to ensure implementation, in December 1999.
• The Hyogo Framework for Action 2005-2015 (HFA), adopted by 168 governments, as the comprehensive approach to reduce disaster risks and disaster losses.
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94 May 2011
Hyogo Framework 2005-2015:Building the resilience of nations and communities to disasters
World Conference on Disaster Reduction, 2005
1. Policies, institutional and legal frameworks: ensure that disaster risk is a national and a local priority with a strong institutional basis for implementation.
2. Risk identification: Identify, assess and monitor disaster risks and enhance early warning.
3. Knowledge management: Use knowledge, innovation and education to build a culture of safety and resilience at all levels.
4. Reduce the underlying risk factors(environmental mgt, food security, gender approach, land-use planning, etc.).
5. Strengthen disaster preparedness
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104 May 2011
The integration of disaster risk reduction into sustainable development policies and planning
The development and strengthening of institutions, mechanisms and capacities to build resilience to hazards
The systematic incorporation of risk reduction approaches into the implementation of emergency, response and recovery programs
Strategic goals of the HFA 2005-2015I
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114 May 2011
Ten years of the ISDR towards resilient nations and communities
• Governments acting (taking DRR seriously, implementing the HFA, investing domesitcally and in bilateral aid, developing regional strategies,…)
• Mainstreaming in development (national planning, GFDRR, UNDAF processes / UN RCs, progress UNDP,…)
• Platforms for global action in support of local needs(IATF, WCDR, inter-agency collaboration, civil society engagement, regional ministerial/platforms, Global Platform, regoinal offices, thematic platforms,….)
• Information bases (guidance, publications, GAR, PreventionWeb, terminology, IPCC-SREX,….)
• Global awareness (DRR in UNFCCC, in donor and UN agency policies, UN Sec. Gen. commitment, biennial campaigns, SRSG, media adoption of DRR messages,….).
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• Progress in national accounts, as well as in ODA, is mixed.
• Some countries have made great advances in creating the legislative and fiscal basis for sustained multi-sectoral risk reducing investments.
• …and have budgeted and are tracking domestic investment, e.g. Indonesia, Japan, Peru, Philippines, Switzerland,…
• Major or mega-disasters can be the catalyst for countries (from high to low income) to initiate a comprehensive risk management approach in the aftermath.
Experience so far.
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134 May 2011
Progress is being made: mortality risk is decreasing…..
• Some success in reducing mortality risk (weather related hazards - floods and tropical cyclones).
• Why? improved development conditions, investments and improvements in disaster preparedness, response and early warning.
• Despite increases in populations in hazard prone areas, vulnerability is reducing faster than this increase in exposure - therefore risk is going down.
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144 May 2011
Weather related mortality risk is falling
Flood mortality risk Cyclone mortality risk
2011 Global Assessment Report on Disaster Risk ReductionRevealing Risk, Redefining Development
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154 May 2011
..but economic loss risk is increasing.• Vulnerability is going down, but not fast
enough to compensate for rapid increases in exposure that have accompanied economic growth.
• Economic loss risk globally is rising in all regions.
• Most economic loss risk concentrated in wealthier countries, and is increasing faster than GDP per capita.
• The risk of losing wealth is increasing faster than that wealth is being created.
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164 May 2011
…. economic loss risk is rising
Flood economic loss risk
2011 Global Assessment Report on Disaster Risk ReductionRevealing Risk, Redefining Development
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174 May 2011
Findings:
• Disaster exposes the cumulative implications of many earlier decisions.
• Prevention is often possible and cost-effective.
• Many measures – private and public – must work well together for effective prevention.
• Exposure to hazards will rise in cities, but greater exposure need not increase vulnerability.
WB/UN Study ‘Natural Hazards, UnNaturalDisasters – the Economics of Effective Prevention’
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Policy Implications:
• Governments can and should make information more easily accessible.
• Governments should permit land and housing markets to work, supplementing them with targeted interventions when necessary.
• Much prevention is embedded in infrastructure, but effectiveness depends on quality and maintenance.
• Robust institutions (solid risk governance) must develop to assure public oversight.
WB/UN Study ‘Natural Hazards, UnNaturalDisasters – the Economics of Effective Prevention’
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DRR InterventionsInclude:
• Reducing exposure to hazards;
• Lessening vulnerability of people and property;
• Protecting socio-economic developmental gains, including critical infrastructure;
• Informed / wise management of land and the environment, including environmental buffers;
• Improving preparedness for adverse events, including early warning systems;
• Adapting to and limiting the effects of climate change and other factors that trigger hazard.
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204 May 2011
The Mid-Term Review Hyogo Framework for Action 2005-2015
To accelerate implementation of the review suggests inter alia:
• targets and accountability mechanisms,
• national and regional quality standards,
• common tools and guidance.
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214 May 2011
Additional findings• Making disaster risk reduction a national and local
priority requires sustained political commitment, with strong support from legislatures.
• HFA Monitor: 133 countries undertook self-assessment of progress in implementing HFA, but analysis of DRR spend in national and local accounts limited (positioning of DRR governance mechanisms?).
• To support efforts, donors and partner countries therefore seek greater understanding where resources directed and what constitutes effective investment - hence the DRR Financing Initiative.
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224 May 2011
Bi- and Multi-lateral ODACommitments to DRR
• USAID / OFDA instiutional commitment – approx. US$ 122m p.a.
• DG Humanitarian Aid & Crisis Response, EC – approx €80m p.a.
• EU / Intra-ACP Natural Disaster Facility - € 120m.
• Federal Foreign Office, Germany – 10% of humanitarian aid.
• The Disaster and Emergency Assistance Policy of the Asian Development Bank (ADB).
• The Department for International Development 2006 policy paper on DRR: 10% of (ex post) humanitarian aid budget and integrating in sustainable development instruments.
• Ministry of Foreign Affairs, Finland: strategy on Disasters, Poverty and Climate Change, and 10% of humanitarian aid budget and integrating in sustainable development instruments
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234 May 2011
Amount spent on disaster prevention and preparedness (CRS)
Currently the purpose code for disaster risk reduction activities falls within the codes for humanitarian aid under Disaster prevention and preparedness (74010)
Investment in Prevention and Preparedness
Courtesy of:
Global Humanitarian Assistance A Development Initiative
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244 May 2011
Bi- and Multi-lateral ODACommitments to DRR
• The 2007 Inter-American Development Bank (IDB) Disaster Risk Management Policy – 2009-2011: Disaster Risk Financing > US$600 million in lending and technical support.
• The World Bank 2007 revision of the Operational Policy on Rapid Response to Crises and Emergencies (OP 8.00).
• The World Bank’s Innovative Development Financing in Disaster Risk Management – risk financing and catastrophe insurance products: > US$ 510 million lending operaiton.
• The Swiss Agency for Development Cooperation, 2008 revised Guidelines on Disaster Risk Reduction.
• The European Commission’s two strategies (Communications) for disaster risk reduction and prevention within EU member states and in developing countries (driven by the development instrument).
• The Australian Agency for International Development: 2009 disaster risk reduction policy.
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Commitments to DRR by International Organisations and NGOs (largely uncharted)
• UNDP global portfolio: between US$ 200-350 million (including support provided by BCPR).
• The Global Facility for Disaster Risk Reduction, World Bank – US$ 241 million
• UNISDR secretariat – biennial budget US 68m.
• Tracking to continue, including of other innovative risk financing mechanisms.
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Risk transfer……..insurance,the silver bullet?
• Insurance transfers risk to those willing to bear it….
• …..but in so doing dilutes the incentive to prevent.
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Risk Reduction and Business
• Private sector entities engaged in Public-Private Partnerships to promote disaster risk reduction and mobilise resources through:
a. Core business arrangements for joint actions;b. Sustainability/corporate social responsibility (CSR)
and philanthropy;c. Knowledge transfer;d. HFA for business on voluntary industry standards.
• UNISDR Private Sector Advisory Group = 11 Members covering most DRR related fields
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• Theme `Invest Today for Safer Tomorrow: Increased Investment in Local Action’
• Topics:– Recovering and Reducing Risks after Disasters, – Economics of Disaster Risk Reduction; and – Alliances with Climate Adaptation and
Development.
• Innovation, 2011 includes:
http://www.preventionweb.net/globalplatform/
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Reporting dilemma:
• Donors challenged in defining their own financing, particularly for development instruments; in part issue of disaggregation.
• OECD ODA tracking only under humanitarian aid & cross cutting (flood prevention) purpose codes.
• Historically, DAC Purpose Codes unable to track DRR spend in development investments.
• Gradual appreciation of the rise in prominence of DRR (OECD guidance on DRR for climate change and environmental assessment).
Why Track DRR ODA Investments?
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• To fuel discussions on DRR contribution to sustainability and aid effectiveness.
• Facilitate shortfall analysis against growing dB on disaster losses and cost of risk.
• To input to (contextualised) evaluations of economic costs and benefits of DRR.
• Facilitate institutional burden share and assist mainstreaming.
• Contribute to domestic repositioning and strengthening of governance structures (centrally).
• Complementarity and coherence.
To Achieve What?
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1. Comprehensive analysis of resilience to natural hazards of Belgian development and humanitarian investment strategies and programmes.
2. Review and/or develop risk-proof policy framework(s) and strategies to reinforce durable impact and minimise vulnerability.
Recommendations for Belgian Development Cooperation
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3. Systematic inclusion of risk identification and assessment in priority sectors / countries.
4. Examine risk governance arrangements within Belgian development cooperation and use this as the vehicle to synergise impact of converging humanitarian and development agendas.
Recommendations for Belgian Development Cooperation
