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Extreme weather events are commonplace in the Democratic Republic of Congo (DRC). Agriculture is particularly vulnerable to extreme droughts and flooding — which are expected to increase in frequency and severity due to climate change. But planning and preparing for crises and disasters is difficult in DRC, as in many other developing countries, even for common risks such as weather hazards. Typically, managing agriculture sector risks and emergencies happens after the crisis hits. The World...

On September 10, 2004, Hurricane Ivan devastated Jamaica with its Category 4 winds and rain causing more than US$350 million in damages and taking the lives of 14 people. The scene is far too common, not only in Jamaica but more broadly in the Caribbean, a region notorious for its vulnerability to natural disasters. While governments are getting better at preparing for the economic and human impact of these storms, the ever more serious effects of climate change are making these threats...

With disasters a growing threat, insurance for countries trying to manage climate and disaster risk is becoming increasingly critical. While insight on what works – and what doesn’t – to build resilience is still limited, the experience of the Philippines shows how countries can improve their protection to disasters by working with international insurance markets. The Philippines is expected to incur, on average, $3.5 billion in asset losses each year from typhoons and earthquakes alone, and 74%...

Disasters by their nature present a shock but nonetheless their occurrence can be estimated, as has been done by the insurance industry for years. That is to say the consequences are not so unexpected. However, when trying to account for the implicit contingent liabilities, such as those generated by natural disasters, the impact of the shocks are often not quantified in the government balance sheet. Yet, when they materialize, they place pressure on government finances that may raise interest...

Kur ndodh një fatkeqësi natyrore ose një krizë, burimet e brendshme të financave publike shpesh janë porti i parë të cilit i drejtohen qeveritë për t'iu përgjigjur me shpejtësi nevojave urgjente. Qeveritë përdorin kontigjencën ose fondet rezervë, akumulojnë borxhe ose kryejnë rialokime të fondeve të buxhetit duke i zhvendosur burimet nga qëllimi i tyre fillestar për të financuar reagimin ndaj katastrofave 1. Në mungesë të alternativave të transferimit të riskut apo edhe në prani të tyre...

When a disaster or a crisis hits, domestic public finance is often the first port of call for governments to respond to urgent needs quickly. Governments draw down on a contingency budget or reserve funds, accumulate debt or reallocate the budget by shifting resources away from their original purpose, towards financing disaster response 1. In the absence of risk transfer options or even with such options available, domestic public finance is an important source to mitigate disaster because it is...

In July 2021, catastrophic flooding inundated parts of Germany and Belgium with damage spreading further into neighboring countries. The flooding took the lives of over 200 people and caused devastating damage to homes and businesses; the insurance industry is expecting losses on the scale of billions of EUR. Governments will bear much of the cost of this flooding. Germany has announced an immediate aid package of EUR 472 million to support affected people. The European Union Solidarity Fund...