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Disaster Risk Financing : Emerging Lessons in Financing Adaptive Social Protection (English)

This paper aims to improve understanding of how disaster risk financing (DRF) enables social protection (SP) systems to respond to and mitigate the impacts of climatic and potentially other shocks. As the relationship between poverty and disasters becomes clearer, many poor and chronically disaster-affected countries are now examining how SP systems can be designed to provide an effective shock response mechanism when disasters hit. In poor countries with limited resources, social assistance interventions such as food aid and cash transfers - often described as safety nets - have formed the primary government SP intervention for vulnerable groups. As disasters become more severe and frequent, more governments are establishing shock-responsive or adaptive SP (ASP) programs to channel temporary assistance in response to crisis. The Coronavirus disease 2019 (COVID-19) crisis is accelerating this trend, with almost every country or territory having planned, introduced, or used ASP measures in response to the pandemic. This paper is structured as follows: section one introduction. Section two explains and defines the key terms discussed in this paper, namely DRF and ASP (or shock-responsive social protection). Section three is divided into three subsections that respectively address three key emerging lessons in using DRF for ASP. Section four considers how the emerging lessons explored in section three can support and further strengthen the current COVID-19 response.


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    Calcutt,Evie Isabel Neall, Maher,Barry Patrick, Fitzgibbon,Catherine Anne

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    The World Region,

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    Disaster Risk Financing : Emerging Lessons in Financing Adaptive Social Protection

  • Keywords

    Human Capital and Economic Growth; Social Protection; national early warning system; high level of accuracy; turks and caicos islands; impact of climate change; disaster-affected population; social protection system; disaster risk financing; safety net program; response to shock; Deferred Drawdown Option; temporary assistance to; drought; delivery mechanism; humanitarian response; access to health; second world war; service and infrastructure; source income; quality of data; sound financial decision; impact of shock; source of income; response to crisis; agricultural production system; chronic food insecurity; time series data; ex ante analysis; disbursement of fund; time and resource; crop and livestock; vulnerability to disaster; global financial crisis; government and business; climate-related disaster; Social Safety Nets; disaster preparedness plan; remote sensing data; labor market program; types of finance; world health organization; extreme weather event; risk transfer instrument; cash transfer program; social assistance interventions; national economic growth; people in poverty; cope with drought; source of funding; per capita income; tropical cyclone; recent years; financing instrument; financial instrument; household level; coping strategy; drought year; food aid; vulnerable household; climatic events; macroeconomic impact; productive asset; climatic shocks; climatic disasters; catastrophe risk; need assessment; recent studies; emergency response; standard definition; fiscal impact; financial cost; humanitarian aid; emergency relief; payment mechanism; affected households; Learning and Innovation Credit; affected communities; severe drought; geographic coverage; child nutrition; children's nutrition; funding source; satellite data; slow-onset disasters; Public Services; vulnerable group; political will; fiscal space; staple food; humanitarian support; response system; financial planning; response cost; climatic risk; market volatility; tax income; temporary support; financial mechanism; insurance payout; appeal process; historical pattern; moral hazard; future event; geographical area; refugee crisis; civil unrest; external shock; beneficiary selection; fiscal policy; Fiscal policies; individual household; fixed budget; aids orphan; social insurance; near poor; horizontal expansion; financing mechanism; relief effort; Political Economy; financial budget; animal industry; idiosyncratic shock; development partner; base indicator; trigger point; political influence; payment amount; extreme drought; several months; cropland area; vulnerable population; government effort; donor support; broad agreement; population rate; exceptional circumstance; exogenous shock; risk pool; sovereign risk; low frequency; local agency; reserve fund; budgetary instruments; financing source; guarantee financing; human benefits; disaster relief; take time; response operation; poor community; information gap; marginal benefit; financial impact; scarce resource; drought response; government use; food assistance; insurance mechanism; consumption need; household consumption; welfare benefit; poor household; Financing plans; geographic area; disaster resilience; water supplies; good road; water source; soil type; labor rate; consumption level; secure financing; modern technology; risk model; historical data; meteorological data; risk exposure; financial resource; response fund; welfare gains; contingent credit; better-off household; overall cost; AS Contingency; global economy; recent evidence; financing package; severe weather; financial resilience; humanitarian crisis; physical destruction; natural catastrophe; emergency payment; limited resources; digital money; national gdp; payment system; global health; modern history; response mechanism; other development; donor resource; quantitative data; measure of use; natural hazard; financial protection; wind speed; core principle



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Calcutt,Evie Isabel Neall Maher,Barry Patrick Fitzgibbon,Catherine Anne

Disaster Risk Financing : Emerging Lessons in Financing Adaptive Social Protection (English). Washington, D.C. : World Bank Group.