The Middle East and North Africa is home to 6% of the world’s population and less than 2% of the world’s renewable water supply. In fact, it is the world’s driest region with 12 of the world’s most water scarce countries: Algeria, Bahrain, Kuwait, Jordan, Libya, Oman, the Palestinian Territories, Qatar, Saudi Arabia, Tunisia, the United Arab Emirates, and Yemen.
Each year on March 22 we mark World Water Day. It is an opportunity to keep the urgent water issues – from lack of sanitation to transboundary water to climate change -- top of my mind for practitioners, decision makers and the global public. In the coming days we will post here updates and stories from the field, as well as links to some of our partners’ content. But, more importantly, this is an opportunity to hear from you, too.
Actually I talk, and she goes "okay, okay" looking out the window.
She and I have learned a few new facts to share: one is the linkage of irregular precipitation associated with global climate change.
Chris Mooney, the environment and climate change writer for the Washington Post, recently wrote a great article explaining why more snow is another result of climate change. D.C. is on the south border of the NE of the United States, where, as you can see from the map, (provided by the US National Climate Assessment), extreme rain/snow events have increased dramatically. Similarly, in Jerusalem three weeks ago, the snow came with sleet, blueberry-size hailstones (see below) and lightning.
As the people of Vanuatu begin the painstaking task of assessing the damage to their homes, businesses, and their communities in the wake of Cyclone Pam, another assessment is underway behind the scenes.
Given the intensity of the category 5 storm and the reports of severe damage, the World Bank Group is now exploring the possibility of a rapid insurance payout to the Government of Vanuatu under the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI).
The Pacific catastrophe risk insurance pilot stands as an example of what’s available to protect countries against disaster risks. The innovative risk-pooling pilot determines payouts based on a rapid estimate of loss sustained through the use of a risk model.
The World Bank Group acts as an intermediary between Pacific Island countries and a group of reinsurance companies – Mitsui Sumitomo Insurance, Sompo Japan Insurance, Tokio Marine and Nichido Fire Insurance and Swiss Re. Under the program, Pacific Island countries – such as Vanuatu, the Cook Island, Marshall Islands, Samoa and Tonga – were able to gain access to aggregate risk insurance coverage of $43 million for the third (2014-2015) season of the pilot.
Japan, the World Bank Group, and the Secretariat of the Pacific Community (SPC) partnered with the Pacific Island nations to launch the pilot in 2013. Tonga was the first country to benefit from the payout in January 2014, receiving an immediate payment of US $1.27 million towards recovery from Cyclone Ian. The category 5 cyclone hit the island of Ha’apai, one of the most populated of Tonga’s 150 islands, causing $50 million in damages and losses (11 percent of the country’s GDP) and affected nearly 6,000 people.
Globally, direct financial losses from natural disasters are steadily increasing, having reached an average of $165 billion per year over the last 10 years, outstripping the amount of official development assistance almost every year. Increasing exposure from economic growth, and urbanization—as well as a changing climate—are driving costs even further upward. In such situations, governments often ﬁnd themselves faced with pressure to draw funding away from basic public services, or to divert funds from development programs.
Investing in Innovative Financial Solutions
The World Bank Group and other partners have been working together successfully on innovative efforts to scale up disaster risk finance. One important priority is harnessing the knowledge, expertise and capital of the private sector. Such partnerships in disaster risk assessment and financing can encourage the use of catastrophe models for the public good, stimulating investment in risk reduction and new risk-sharing arrangements in developing countries.
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) is another good example of the benefits of pooled insurance schemes, and served as the model for the Pacific pilot. Launched in 2007, this first-ever multi-country risk pool today operates with sixteen participating countries, providing members with aggregate insurance coverage of over $600 million with 8 payments made over the last 8 years totaling of US$32 million. As a parametric sovereign risk transfer facility, it provides member countries with immediate liquidity following disasters.
We also know that better solutions for disaster risk management are powered by the innovation that results when engineers, sector specialists, and financial experts come together to work as a team. The close collaboration of experts in the World Bank Group has led to the rapid growth of the disaster risk finance field, which complements prevention and risk reduction.
- disaster recovery; Aceh; tsunami
- disaster response
- disaster relief
- disaster recovery
- disaster preparedness
- Disaster management
- Disaster Funding
- disaster coverage
- Disaster Risk Financing and Insurance Program
- catastrophic risk; livestock; disaster risk management
- Public Sector and Governance
- Private Sector Development
- Financial Sector
- Climate Change
The Latin America and the Caribbean region is crying out for infrastructure improvements. An investment estimated at 5 percent of the region’s GDP — or US$250 billion per year — is required to develop projects that are fundamental for economic development. This includes not only improving highways, ports and bridges, but also building hospitals and creating better transport, public transit and other mobility solutions for smarter cities. Rising demand for infrastructure also is prompting countries to redouble efforts to attract greater private investment
At the Multilateral Investment Fund (MIF), as at the World Bank Group, we believe that public-private partnerships (PPPs) can help governments fill this infrastructure gap. However, the projects must be implemented effectively and efficiently to achieve social and economic objectives.
Governments in the Latin America and the Caribbean region not only lack financing to address the infrastructure gap, but also face challenges in selecting the appropriate large infrastructure projects, planning the projects, managing and maintaining infrastructure assets — and gaining public support for private investment in public infrastructure.
However, PPPs are gaining ground in Latin America and the Caribbean. Beyond the larger economies of Brazil, Colombia and Mexico, assistance from the MIF and the Inter-American Development Bank (IDB) has enabled countries such as Paraguay to develop laws that pave the way for PPP projects. Just this week, Paraguay announced its first such project, which involves an investment of US$350 million to improve and build more than 150 kilometers of roads.
PPPs have been moving beyond classic interventions in public infrastructure, which have typically included roads, railways, power generation, and water- and waste-treatment facilities. The next wave of PPPs increasingly involves and provides social infrastructure: schools, hospitals and health services. In Brazil, IFC, the private sector arm of the World Bank Group, helped create the Hospital do Subúrbio, the country’s first PPP in health, which has dramatically improved emergency hospital services for one million people in the capital of the state of Bahia.
While many impacts of climate change are already evident around the world, the worse is still to come. Having a clear picture of future risks is essential to spur action now on a scale that matches the problem. The World Bank has prepared the following infographic to communicate the risks for one of the world’s most vulnerable countries—Bangladesh.
The data comes from the 2013 World Bank report Turn Down the Heat: Climate Extremes, Regional Impacts, and the Case for Resilience. This report combines a literature review and original scientific modeling to build on a previous effort that found that the world will become 4°C (7.2°F) hotter during this century in the absence of deep and fast cuts to global carbon emissions. In this scenario, hotter local temperatures, greater water challenges, higher cyclone risks, and lower crop yields will create a hotspot of risks for Bangladesh.
Bangladesh already has a hot climate, with summer temperatures that can hit 45°C. Heat waves will break new records in a 4°C hotter world, with 7 out of 10 summers being abnormally hot. Northern Bangladesh will shift to a new climatic regime, with temperatures above any levels seen in the past 100 years and monthly deviations five to six times beyond the standard.