91891 THE WORLD BANK Disaster Risk Management - Building a Safe and Resilient Future for All SYNOPSIS The World Bank has emerged as a leading partner of disaster-prone countries in their efforts to manage the risk of disasters, and respond to their impacts when they hit. Investments are helping to safeguard growth in sectors like urban, water, transport, agriculture and rural development, and protect millions from the loss of lives and livelihoods in disasters. To leverage new investment, generate knowledge and expertise and build a global partnership for Disaster Risk Management (DRM), the Global Facility for Disaster Reduction and Recovery (GFDRR) was established in 2006. As a World Bank-hosted facility, GFDRR provides grant financing and offers a range of analytical and advisory services that are directly impacting on the ability of high-risk, low income countries to understand and act on the hazards they face, helping them adapt to a changing climate. Challenge Climate change further complicates the picture. Disasters caused more than 3.3 million deaths Climate-change induced tropical cyclones could add and US$2.3 trillion in damage (in 2008 US between US$28 billion and US$68 billion to annual dollars) between 1970 and 20101. Looking to the damages by 2100. There is great uncertainty with future, as the 2010 World Bank / United Nations these long-range forecasts, which are sensitive to (UN) report Natural Hazards, UnNatural Disasters: assumptions about the future, but the fact remains: the Economics of Effective Prevention found, large to achieve lasting social and economic resilience to cities already exposed to cyclones and earthquakes disasters requires a fundamental step change in how will more than double their population by 2050 planners and policy makers from all sectors consider (from 680 million in 2000 to 1.5 billion in 2050). disaster risks in the everyday business of This trend will differ by country and region. If cities development. are well managed, disaster impacts need not increase, but the projected increase in numbers of Natural disasters affect low- and middle- people living at risk in cities highlights the challenge income countries disproportionately. Natural ahead. Furthermore, the report finds that economic Hazards, UnNatural Disasters (2010) reports that, development and population growth are expected to of the disaster-related deaths reported during the result in increasing damages from extreme events period 1970 to 2010, poor countries withstand the and that, without policy change, these costs are worst, while middle-income countries incurred the expected to triple to US$185 billion annually by the greatest proportional economic burden of damage turn of the century. This scenario is without taking (as a proportion of gross domestic product (GDP). into account any change in the climate. 1 Source: World Bank (2010) Natural Hazards, UnNatural Disasters: The Economics of Effective Prevention. September 2011 2 DISASTER RISK MANAGEMENT Approach National Cyclone Mitigation Project; multi- sector investment programs that address DRM was universally endorsed as a disaster risk as a core component. development priority through the Hyogo Framework for Action (HFA) in 2005. This  Innovation and application of new framework is a compact of 168 governments and technologies: innovative risk financing international organizations, including the World instruments such as the Caribbean Catastrophe Bank and the UN, focused on building resilience to Risk Insurance Facility (CCRIF) and the Pan- disasters for all nations. The HFA has three strategic African Drought Insurance Pool; remote goals: to integrate DRM in development policies, sensing and geospatial analysis for mapping strategies and planning; to strengthen institutions risks, analyzing intervention options and responsible for DRM at all levels, and; to build a assessing post-disaster impacts; leveraging culture of disaster resilience in response and public-private partnerships and volunteer recovery operations. technology communities to identify innovative practical solutions to DRM challenges. In line with these goals, the World Bank is responding to the growing demand from its  Global knowledge solutions and building clients for assistance after natural disasters and access to data: actively informing the global support to prepare for future disasters and disaster risk management and climate change reduce risks, including those resulting from adaptation agenda with cutting-edge knowledge climate change. This response is based on the products, such as the Housing Reconstruction knowledge that - if done right - preventative Handbook, the seminal study on the economics measures not only save lives, they are cost effective of prevention Natural Hazards, UnNatural too. The establishment of GFDRR has leveraged Disasters (see Box 1), the Climate Change, Disaster the Bank’s role, leadership, and performance on Risk, and the Urban Poor report launched at the global knowledge creation, innovation and C40 Large Cities Climate Summit, and the partnerships in DRM. Currently, the World Bank’s upcoming Urban Risk Assessment report. DRM practice operates across five strategic pillars Catalyzing global knowledge sharing through of action: high-level events such as the Understanding Risk Conference or the 2011 World Reconstruction Conference. Promotion of open  Post-Disaster Needs Assessment (PDNA) data and open source technology through the and Emergency Reconstruction & Recovery Open Data for Resilience Initiative (OpenDRI); Projects: large-scale emergency recovery supporting in-country capacity to source, create, programs such as those after the Aceh tsunami open and share data. in Indonesia, the 2005 earthquake in Pakistan and the Wenchuan earthquake in China in 2008;  Partnership development and donor 26 PDNAs to date, supported by rapid mapping coordination: through the GFDRR, building and damage validation through remote sensing strategic and operational alliances with technical and earth observation, such as the assessment and political leaders in the DRM field (see conducted in Haiti in 2010. Sector-specific ‘Partners’ section). knowledge products and toolkits improve the way lessons are captured from disasters, increasing the chances of building a more Results resilient future for all. The growing strategic commitment of the  Disaster risk mitigation and related climate World Bank to DRM is reflected in the number adaptation investment programs and multi- of Country Assistance and Partnership sector mainstreaming of DRM: risk Strategies (CASs/CPSs) that now build disaster mitigation programs, including those focusing risk into their approach. As of July 2011, out of on climate-related hazards, such as the India 90 CASs/CPSs reviewed in the last two years, 65 DISASTER RISK MANAGEMENT 3 Box 1: Natural Hazards, UnNatural Disasters: The earthquake, CCRIF transferred US$8 million to Economics of Effective Prevention provide immediate liquidity to the government. The GFDRR was tasked with producing the first joint World Bank – United Nations report on the Following the 2005 earthquake in Pakistan, the economics of disaster prevention. The goal was to World Bank (IDA/IBRD) committed about US$1 provide the necessary economic evidence to justify billion to recovery and reconstruction efforts. investments in disaster risk reduction, shifting the Achievements include the provision of timely focus from relief, recovery and reconstruction to shelter support to 550,000 people and the recon- prevention and preparedness. In November 2010, struction of more than 400,000 earthquake-resistant the report Natural Hazards, UnNatural Disasters: houses. The Economics of Effective Prevention - the culmination of original research done by over 70 experts from over two-dozen institutions - was PDNA is increasingly an internationally launched. The report has been presented in a accepted standard for government-led needs series of high-level events around the world, assessment. In Haiti after the 2010 earthquake, the shaping and catalyzing policy dialogue at the assessment served as a blueprint for international highest levels, and contributing to making disaster cooperation in the reconstruction effort, drastically risk reduction a development issue. The team reducing the coordination burden on the strained responded to requests from very different audiences, including academic institutions and resources of the Haitian Government. To date over think tanks, international organizations, and directly 2,300 officials have been trained in PDNA and from governments, of both developing and damage and loss assessment methodology, developed countries, confirming that preventing increasing the capacity of national authorities to death and destruction from disasters is plan and prepare themselves, thus reducing reliance everybody’s business. on international assistance. The PDNA has catalyzed major reform in the way at-risk countries recognized disasters as a challenge to the manage and plan financing for reconstruction and implementation of the strategy, 45 identified DRM recovery. National disaster funds have been as a cross-cutting strategic issue, and 15 established established in Yemen, Madagascar and Indonesia as DRM as a distinct pillar of their strategy. This a result of World Bank assistance. strategic recognition of DRM within World Bank strategies is leading to major investment in disaster In middle-income economies, IBRD loans have and climate resilient development, with real results enabled high-risk countries to assess and on the ground, including these examples that follow. manage disaster risks comprehensively. In 2005, the Bank supported Colombia with a US$260 Through innovative instruments and million loan to strengthen the capability of the investment, IDA assistance has provided national disaster risk management system in about critical support for countries exposed to adverse 1,000 municipalities. The second phase of this natural events. For example, the world’s first program started in 2006 with an additional US$80 regional disaster financing facility, the Caribbean million loan to support the city of Bogota to Catastrophe Risk Insurance Facility strengthen its capacity to manage disaster risks and (CCRIF)―which includes IDA countries among its reduce vulnerability in key sectors. Results of this members―was established in 2007 to provide access project include the resettlement of 5,000 households to short-term liquidity for Caribbean governments living in high-risk areas to permanent housing in in the aftermath of disasters. In addition to technical safe areas; retrofitting of 201 schools and assistance in the establishment of the facility, the kindergartens to seismic-resistant standards between World Bank financed the cost of joining the facility 2005 and 2008; and the reduction of the population for a number of Caribbean Community at risk in public buildings from 575,000 to 252,000. (CARICOM) countries, including Haiti, and contributed to the Multi-Donor Trust Fund, which IBRD loans have also assisted in the served as the initial supporting capital for the sustainable and disaster-resilient recovery of facility. Within two weeks of the 2010 Haiti disaster-affected communities. The World Bank 4 DISASTER RISK MANAGEMENT Some of the key highlights of results achieved in County High, was re-opened in March 2011. The IDA supported projects aforementioned above are construction of all new buildings is subject to high as follows: seismic and flood risk standards and experts are supervising every step to ensure lives are not lost in Sri Lanka: A significant share of the IDA support from the Tsunami Emergency Reconstruction the future. In addition, the GFDRR is supporting Program I and II, with US$75 million each, helped the Ministry of Finance to conduct a review of the to restore livelihoods of nearly 100,000 families National Master Plan for Rehabilitation and and to reconstruct about 44,000 damaged houses. Reconstruction and six sector recovery plans. More than 100,000 Sri Lankan families benefited from livelihood cash grants, with the first The Catastrophe Risk Deferred Draw-down installment paid within three months of the tsunami. Option (CAT DDO) is an IBRD innovation that Ethiopia: 7.8 million rural inhabitants received allows countries to access liquidity immediately support under the IDA Productive Safety Net after a disaster. Since the start of CAT-DDO Adaptable Program Loan (APL) II Program through operations in March 2008, Colombia, Guatemala workfare or grants in response to localized and Costa Rica have drawn down funds from the intermediate or severe drought 2007-09 instrument, in payouts of US$150 million, US$85 Bangladesh: 1.7 million households have been million and US$24 million respectively. These supported through the construction of payouts have provided fast, flexible funds to approximately 50 new shelters and repairs to governments to enable them to respond quickly to another 250 existing multi-purpose shelters, and the needs of their affected citizens, and to reduce rehabilitation of over 100 kilometers of embankments after Cyclone Sidr in 2007 dependence on donor aid and borrowing. Togo: Over 52,000 people in poor neighborhoods were protected against the 2010 floods through the Emergency Urban Infrastructure Rehabilitation Bank Contribution Project. The project cleared over 70 kilometers of storm drains in flood risk areas, which allowed rainwater to flow where previously it would flood, Between fiscal years 2006 and 2011, IBRD and rehabilitated roads, provided a 1,000-bed IDA committed an estimated $10.5 billion to emergency center and connected underserved projects or project elements related to disasters2. communities to the electricity network Typically, in the urban, water, agriculture or rural Vietnam: Over 210,000 people living across 30 development sectors, these operations have built-in villages are now prepared for disaster, having DRM as a core component of their design and developed local early warning and evacuation together they represent ‘DRM mainstreaming’ in systems, disaster action plans, 12 new or action. New IDA investment has been triggered by upgraded storm shelters and 165 safe schools and the large-scale disasters the world has witnessed in health care facilities that had been damaged by recent times. Furthermore, emergency recovery recent storms loans financed by both IDA and IBRD have been approved to restore public services and infrastructure in the wake of recent disasters. is supporting China with a US$710 million IBRD loan to restore infrastructure, health and education services in several counties and municipalities in Partners Sichuan and Gansu that were damaged or destroyed after the 2008 Wenchuan earthquake. Although the In the disaster-prone countries, the World Bank project runs to 2014, construction of 26 hospitals often plays a role in coordinating donor efforts and clinics in Sichuan is already underway. In both in ex-ante investment and ex-post Gansu, three wastewater treatment facilities, two assistance for reconstruction and recovery. The wastewater pipelines and one water supply pipeline World Bank develops partnership through technical are under construction. Six schools are being and financial assistance to national governmental constructed and will be open before the next school year begins, while one damaged high school, Hui 2 Source: GFDRR Disasters Portfolio Database (data as of June 30, 2011) DISASTER RISK MANAGEMENT 5 and non-governmental agencies tasked with the together 150 government, private sector and civil challenge of protecting their country from the threat society partners supporting the initiative at a local of disasters. level around the globe. The GFDRR is a partnership financing Moving Forward mechanism co-chaired and hosted by the World Bank that aims to mainstream disaster risk Building on success, the World Bank as a management into development policy and global institution commits to provide timely, programs, before and after a disaster. The cutting-edge DRM knowledge and expertise to partnership includes 38 country governments from partner countries, and to continue to developed, emerging and developing countries and mainstream DRM across all sectors of seven international organizations, including the investment. Through targeted support, at-risk United Nations International Strategy for Disaster countries themselves will be the driving force for Reduction (UNISDR), the Secretariat real results. Risks cut across national boundaries, of the African, Caribbean and Pacific Group of and the World Bank will continue to support south- States (ACP), the European Commission, the south exchange of officials and technical leaders in United Nations Development Programme (UNDP), the field to facilitate the flow of knowledge and the Arab Academy for Science, Technology and learning. Maritime Transport, and the International Federation of Red Cross and Red Crescent (IFRC). Through the GFDRR partnership, outreach to a more diverse set of DRM partners is ongoing Recognizing the need for partnership and and must increase, including with the private synergy in the post-disaster context, the World sector, regional organizations and civil society. Bank, the United Nations and the European The World Bank supports the opening up of risk Commission entered into a Joint Declaration on and climate data and the development of decision Post-Crises Assessments and Recovery support systems so that responsible officials, policy Planning in 2008 to improve the coordination of makers and practitioners no longer need to operate support offered to governments affected by in the dark, and can have access to innovation in disasters. This declaration promotes a harmonized emerging fields like disaster risk financing, to meet approach to the PDNA, in which a multi- the growing challenges they face. The culture of disciplinary team—led by the government and innovation in the field must continue, particularly comprising members from World Bank, UN, on instruments for risk finance. donors and others—typically guides post-disaster recovery strategy in partnership. IDA has stepped up its support to manage disasters and disaster risks, both ex-ante and Increasingly, partnership is taking on new and ex-post. The Crisis Response Window (CRW) has innovative forms, including through ‘volunteer been institutionalized in IDA16 to assist low- technical communities. These expert income countries to respond better to disasters and communities—who are most often technical adopt preventive measures to minimize the adverse professionals with deep expertise in geographic consequences of future catastrophes. This funding information systems, database management, social window is a major step forward and provides media, and/or online campaigns—apply their skills greater availability and predictability of additional to some of the hardest elements of the disaster risk concessional assistance for post-disaster recovery management process, like mapping risk and and reconstruction in low-capacity, high-risk identifying mitigation options. The GFDRR Labs countries. IDA and IBRD will increase support for hosts the Random Hacks of Kindness (RHoK), a innovative and customized financial solutions for public-private-people partnership, which includes both low- and middle-income countries that build the World Bank, Google, Microsoft, Yahoo! fiscal and economic resilience to natural hazards. National Aeronautics and Space Administration (NASA), and Hewlett-Packard (HP). RHoK brings 6 DISASTER RISK MANAGEMENT During the year, the primary school bustles with Beneficiaries children – but during cyclones and other natural disasters, the building doubles up as a shelter. In Counting DRM in lives saved 2007, this cyclone-shelter alone had helped save more than 800 people. “I still remember Cyclone Sidr in 2007,” said Hasina Begum, Headmistress of Paschim Napitkhali With the effects of climate change likely to increase Primary School in Barguna, Bangladesh. “There were the frequency and severity of natural disasters, warnings, but nothing could really prepare us for what Bangladesh needs to adapt to increased uncertainty happened. Cyclone Sidr hit my hometown, Barguna with and be prepared. With this in mind, around 700 ferocious intensity. Powerful gusts of winds and heavy cyclone shelters are in the process of being rainfalls frightened the helpless people, many of whom had left constructed or upgraded with better designs with their homes and possessions to seek the protection of cyclone- support from the World Bank to protect the shelters, like my school.” The Paschim Napitkhali country’s coastal population. Approximately 480 Primary School, a non-descript two storied building kilometers of embankment are also being repaired played a life-saving role in 2007, when Barguna and and reconstructed through the same initiative. other coastal regions were hit hard by the storm Hasina’s school-cum-cyclone-shelter received funds surge of over 5 meters (16 ft). Initially established by to repair portions of the wall and the ceiling, which Hasina’s father, the school was later rebuilt and was badly damaged in the 2007 cyclone. converted into a school-cum-cyclone-shelter. LEARN MORE Web Sites – GFDRR website: http://www.gfdrr.org/gfdrr/