Global Assessment Report on Disaster Risk Reduction 2015
Making development sustainable: The future of disaster risk management

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As the economy becomes more global, investment tends to flow to locations that offer comparative advantages, including low labour costs, access to export markets, infrastructure and stability. Investment decisions rarely take into account the level of hazard in those locations, and opportunities for short-term profits continue to outweigh concerns about future sustainability. As a consequence, large volumes of capital continue to flow into hazard-prone areas, leading to significant increases in the value of exposed economic assets.
Over the last 10 years, there has been significant progress in strengthening disaster preparedness, response and early warning capacities and in reducing specific risks, according to the HFA Monitor. However, progress has been limited in most countries when it comes to managing the underlying risks. ( → Part II )
The continuous mispricing of risk means that consequences are rarely attributed to the decisions that generate the risks. This lack of attribution and accountability creates perverse incentives for continued risk-generating behaviour, as those who gain from risk rarely bear the costs. As such, new risks have been generated and accumulated faster than existing risks have been reduced. ( → Chapter 10)
An enormous volume of capital is expected to flow into urban development in the coming decades, particularly in South Asia and sub-Saharan Africa. Some 60 per cent of the area expected to be urbanized by 2030 remains to be built. Much of the growth will occur in countries with weak capacities to ensure risk-sensitive urban development. ( → Chapter 11)
The continuous “mispricing of risk” threatens
our future
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