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

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is most threatened in Greece, it is social development that is most threatened in the Philippines.
Fiscal resilience
Budgeting for disaster loss based on the AAL is critical but not enough. As the AAL is an annual average, it does not guarantee economic and fiscal resilience against high-level events for countries that lack the fiscal resilience to cope with
extreme but infrequent losses. Fiscal resilience is broadly defined as comprising internal and external savings to buffer against disaster shocks. Once domestic savings are exhausted, a common approach is to divert funding from discretionary budgets, which in some cases may have been previously earmarked for development spending. In other cases, countries utilize loans from international or multilateral financial institutions
(Source: UNISDR with data from Global Risk Assessment and the World Bank.)
Figure 5.1 Countries with high overall ratio of AAL to social expenditure, capital stock and savings and capital investment and reserves
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