GAR 2015 Main Report

(Source: GAR Global Risk Assessment.)

Figure 3.7 Multi-hazard average annual loss in relation to capital stock by income group

The level of capital investment as a proportion of existing capital stock is very different across income groups, as it accounts for some 30 per cent in low-income countries compared to only 10 per cent in upper middle-income and 5 per cent in high-income countries. Thus the new investments that low-income countries make on an annual basis represent a significant proportion of their total capital stock. A high ratio of AAL to capital investment represents a threat to future development prospects. Prospective risk management then takes on critical importance in order to ensure that new investment does not increase disaster risk.

In terms of geographical regions, capital investment varies from 12 to 33 per cent of GDP,15 and relative AAL varies significantly as a result. In South Asia, AAL is the equivalent of almost 5 per cent of annual capital investment, compared to only 1.23 per cent in Europe and Central Asia (Figure 3.8).

The AAL in Europe and Central Asia represents a lower percentage of annual capital investment than that of East Asia and the Pacific. However, annual capital investment in Europe and Central Asia is currently little more than a quarter of that in East Asia and the Pacific. As mentioned above, this highlights the importance of investing in corrective disaster risk management in countries with sluggish or stagnating economies, as disaster risk can erode what little growth capacity there is.

In other regions, capital investment is also exposed to significant risk. Annual capital investment in Latin America and the Caribbean is currently less than a third of that in East Asia and the Pacific; however, the AAL is equivalent to more than 3 per cent of that investment, compared to 1.89 per cent in East Asia and the Pacific. This acts as a significant brake on future development.

	61 (Source: GAR Global Risk Assessment.) Figure 3.7 Multi-hazard average annual loss in relation to capital stock by income group The level of capital investment as a proportion of existing capital stock is very different across income groups, as it accounts for some 30 per cent in low-income countries compared to only 10 per cent in upper middle-income and 5 per cent in high-income countries. Thus the new investments that low-income countries make on an annual basis represent a significant proportion of their total capital stock. A high ratio of AAL to capital investment represents a threat to future development prospects. Prospective risk management then takes on critical importance in order to ensure that new investment does not increase disaster risk. In terms of geographical regions, capital investment varies from 12 to 33 per cent of GDP,15 and relative AAL varies significantly as a result. In South Asia, AAL is the equivalent of almost 5 per cent of annual capital investment, compared to only 1.23 per cent in Europe and Central Asia (Figure 3.8). The AAL in Europe and Central Asia represents a lower percentage of annual capital investment than that of East Asia and the Pacific. However, annual capital investment in Europe and Central Asia is currently little more than a quarter of that in East Asia and the Pacific. As mentioned above, this highlights the importance of investing in corrective disaster risk management in countries with sluggish or stagnating economies, as disaster risk can erode what little growth capacity there is. In other regions, capital investment is also exposed to significant risk. Annual capital investment in Latin America and the Caribbean is currently less than a third of that in East Asia and the Pacific; however, the AAL is equivalent to more than 3 per cent of that investment, compared to 1.89 per cent in East Asia and the Pacific. This acts as a significant brake on future development.	Page 1 Page 10 Page 20 Page 30 Page 40 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 ->Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 80 Page 90 Page 100 Page 110 Page 120 Page 130 Page 140 Page 150 Page 160 Page 170 Page 180 Page 190 Page 200 Page 210 Page 220 Page 230 Page 240 Page 250 Page 260 Page 270 Page 280 Page 290 Page 300 Page 310