By Francis Ghesquiere and Olivier Mahul
This week, the Resilience Dialogue, bringing together representatives from developing countries, donor agencies and multilateral development banks, will focus on financing to build resilience to natural disasters.
There is growing recognition that resilience is critical to preserving hard won development gains. The share of development assistance supporting resilience has grown dramatically in recent years. New instruments have emerged in particular to help client countries deal with the economic shock of natural disasters. In this context, an important question is which financial instruments best serve the needs of vulnerable countries? Only by customizing instruments and tools to the unique circumstances of our clients, will we maximize development return on investments. Clearly, low-income countries with limited capacity may not be able to use financial instruments the same way middle-income countries can. Small island developing states subject to financial shocks where loss can exceed their annual GDP face vastly different challenges than large middle-income countries trying to smooth public expenditures over time or safeguard low-income populations against disasters.
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Standing atop a disused amphitheater in a disused airforce base, we could see over the surrounding area. On the right, a sea of shacks nuzzled together in hope and desperation. On the left, stretches of cracked concrete with just one shack here, one shack there.
The emptying expanse to the left was the story of success. More than three years after the massive earthquake that shattered so much of Port-au-Prince, Haiti, rental subsidies were moving households quickly out of camps to houses in the community.
These are exciting days at the World Bank Group. We are getting ready to receive delegates from our 188 member countries, who will gather in Washington for the WBG-IMF Spring Meetings.
It is an especially important time for the Global Facility for Disaster Reduction and Recovery (GFDRR) and the disaster risk management team at the World Bank, as we prepare to host – together with the European Union, the Government of Japan, and USAID – the fourth round of the Resilience Dialogue. This round we are focusing on the role disaster and climate resilience can play in the post-2015 development framework.
Disaster and climate risks were not addressed as part of the original framework of the Millennium Development Goals (MDGs). Recent experience has provided countless examples of the devastating impacts of disasters – impacts that go well beyond dollar signs or GDP statistics. It has become evident that disaster and climate risks are impediments to the achievement of poverty reduction and sustainable development goals, and should therefore be integrated in the development framework that will replace the MDGs.