GAR 2013 Main Report

(Source:

Jose, 2012

Jose, S.R. 2012.,Preliminary examination of Existing Methodologies for Allocating and Tracking National Government Budget for Disaster Risk Reduction (DRR) in the Philippines., Study developed under the ADB supported RETA 6511 (Regional Stocktaking and Mapping of Disaster Risk Reduction Internventions in Asia and the Pacific)..
Click here to view this GAR paper.

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(Source: Mechler et al., 2013

Mechler, R., Hochrainer-Stigler, S. and Nakano, K. 2013.,Modelling the Economic Effects of Disaster Risk in Nepal., In: Amendola et al. (eds.): Integrated Catastrophe Risk Modeling. Advances in Natural and Technological Hazards Research., Springer.,. .

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Figure 5.8 Financing the deficit from disasters in the Philippines (in billions of Pesos)

Figure 5.9 Fiscal vulnerability and financing gap for earthquake and flood risk in Nepal

of major disasters in eight countries in Latin America and the Caribbean. The DDI captures the ratio of resource demands incurred by disasters to a country’s availability of funds to cover these demands.

Figure 5.7 shows the results in the case of a onein-100 year disaster, with any value above 1 on the DDI indicating a financing gap. For example, the DDI indicates that despite an estimated PML of more than US$4 billion, Mexico is well positioned to cover these losses with available resources. In contrast, Honduras would be seriously challenged in spite of a much smaller PML.

The Philippines also has consistently experienced financing gaps owing to disasters since 2000 (Figure 5.8). Although the Philippines has financed part of those gap by domestic and foreign credit, in many countries, sovereign risks are likely to limit borrowing capacity.

The fiscal gap may be even greater in the case of low-income countries and others with high debts and a constrained fiscal space. Nepal, for example, would be unable to finance the costs of even a

one-in-20 year event, and that gap would be greater than US$2 billion (Figure 5.9).