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disaster relief

Disaster risk and climate threats: Taking action to create better financial solutions

Olivier Mahul's picture

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. 
 

#4 from 2014: How User-Generated Crisis Maps Save Lives in Disasters

Jing Guo's picture
Our Top Ten blog posts by readership in 2014.
This post was originally posted on February 26, 2014

 

YouTube, Wikipedia, Facebook, LinkedIn, Instagram, Twitter, blogs… This list could easily go on and on for paragraphs. Today, we are so immersed in social media that we can hardly go a day without reading or watching user-generated online content. Videos like “Charlie Bit My Finger” make us laugh. Free lessons on Khan Academy, which were originally started by a hedge fund analyst at home, help us learn.

But user-generated online content is not all about entertainment and free classes. Crisis maps on crowd-sourcing platforms like OpenStreetMap and Ushahidi have demonstrated a less expected yet significant capacity of user-led content creation online:  it saves lives in disasters.

Weekly Wire: The Global Forum

Roxanne Bauer's picture
 
These are some of the views and reports relevant to our readers that caught our attention this week.
 
2014 Corruption Perceptions Index
Transparency International
Poorly equipped schools, counterfeit medicine and elections decided by money are just some of the consequences of public sector corruption. Bribes and backroom deals don’t just steal resources from the most vulnerable – they undermine justice and economic development, and destroy public trust in government and leaders. Based on expert opinion from around the world, the Corruption Perceptions Index measures the perceived levels of public sector corruption worldwide, and it paints an alarming picture. Not one single country gets a perfect score and more than two-thirds score below 50, on a scale from 0 (highly corrupt) to 100 (very clean).
 
The Fall of Facebook
The Atlantic
Facebook has won this round of the Internet.  Steadily, grindingly, it continues to take an ever greater share of our time and attention online. More than 800 million people use the site on an average day. Individuals are dependent on it to keep up not just with their friends but with their families. When a research company looked at how people use their phones, it found that they spend more time on Facebook than they do browsing the entire rest of the Web.  Digital-media companies have grown reliant on Facebook’s powerful distribution capabilities. They are piglets at the sow, squealing amongst their siblings for sustenance, by which I mean readers.

How User-Generated Crisis Maps Save Lives in Disasters

Jing Guo's picture

YouTube, Wikipedia, Facebook, LinkedIn, Instagram, Twitter, blogs… This list could easily go on and on for paragraphs. Today, we are so immersed in social media that we can hardly go a day without reading or watching user-generated online content. Videos like “Charlie Bit My Finger” make us laugh. Free lessons on Khan Academy, which were originally started by a hedge fund analyst at home, help us learn.

But user-generated online content is not all about entertainment and free classes. Crisis maps on crowd-sourcing platforms like OpenStreetMap and Ushahidi have demonstrated a less expected yet significant capacity of user-led content creation online:  it saves lives in disasters.

Weekly Wire:the Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Infographic: The Decline of Global Internet Freedom
PC Mag
Two years after the Internet went dark in protest of a proposed U.S. Internet censorship bill, four out of five people worldwide still don't have access to an uncensored Web. In celebration of the second annual Internet Freedom Day, Golden Frog released an infographic (below) chronicling the worldwide struggle for Internet freedom. "Everything you love about the Internet is at risk," the software firm said, painting a bleak picture of global Web sovereignty. Few countries can claim "mostly unrestricted" access; the U.S., U.K., Australia, and bits of South America, Western Europe, Africa, and Asia (specifically Japan) can freely roam the World Wide Web, without fear of government oppression or censorship. Almost half of the world, however, falls under heavy restrictions READ MORE

Rescuers Sift Through Social-Media Noise to Direct Typhoon Response
Wall Street Journal
In disasters like the typhoon that slammed into the Philippines, sifting through a barrage of confusing and conflicting on-the-ground reports is one of the first problems facing rescue teams. Social-media sites such as Twitter and Facebook can make matters worse. All too often, users recycle what others have posted or retweeted without adding any fresh information. Sorting through all the noise is too much for individual agencies to handle on their own. So Swiss-born Patrick Meier is gearing up to attack the problem with a new approach called social mapping: Using a combination of volunteers and algorithms to filter the chaos and to provide rescue teams with a detailed, data-driven map of what they should be doing, and where. READ MORE

The Tale of Minara Begum

Jahirul Islam's picture

Minara Begum is a very special lady in Amtoli Upazila of Barguna district, well known for her courage and hard work. Her determination to lift herself out of extreme poverty to a stable financial position has drawn the attention of many people in the locality. Her strength and resilience is evident in how she survived the devastating cyclone ‘Sidr’, which hit the coast of Bangladesh in 2007, and rebuilt her life afterwards.

Minara’s life had never been easy. Her first husband divorced her for not being able to bear children and her second husband was too ill to earn much. So she had to take up most of the burden of the family. With money she had received from her first husband, Minara bought a cow and slowly she was able to increase her livestock up to nine, which she sold in order to buy land. But misfortune struck her when cyclone Sidr destroyed her standing crops and smashed the roof of her house, which fell on her husband. Since then her husband has been suffering from back pain, unable to work as a day laborer in the field and has become totally dependent on Minara’s income.

Cyclone Sidr left Minara in a hopeless state - she had lost everything she had worked so hard for. She had no clothes; she could afford only one meal a day. Fortunately, she was selected as a beneficiary of the Livestock subcomponent of the Emergency Cyclone Recovery and Restoration Project (ECRRP) in 2010 and given training in the Livestock Farmers’ Field School (L-FFS). She received a livestock package of ten ducks, poultry feed and an improved poultry shed. At the time of delivery of the package, she had no livestock and the yearly income of her family was only Tk. 12,000 ($150) mostly from her wages as a day laborer. She had only 40 decimals of land, including her homestead.

General Aviation and Disaster Relief

Charles E. Schlumberger's picture

When a disaster strikes, such as a hurricane or a major earthquake, relief efforts are often hampered by destroyed or damaged ground infrastructure, mostly roads, bridges, and railway networks. In the days following such a disaster, relief efforts hinge on air transport capacity, which only depends on a clear runway or landing sites for helicopters. First responders, who focus on saving lives, are primarily aviation units of the armed forces or law enforcement.

Using Geo Mapping to Alter the Bank – CSO Political Landscape

John Garrison's picture

Can the sharing of technical mapping tools and datasets help to change longstanding political relations?  This is exactly what’s happening between the World Bank and some of its longstanding advocacy CSO interlocutors.  Several recent training sessions and technical workshops co-organized with CSOs on the Bank’s open data tools, are leading to increased collaboration around a common transparency and accountability agenda.

One example is a hands-on training workshop co-organized by the World Bank and the Bank Information Center (BIC) on the Bank’s Open Development Programs on March 7, 2012. Some 20 representatives of well known policy advocacy CSOs from the Washington area (see photo) participated in the two-hour session which featured presentations on a number of Bank data platforms and search tools: Projects and Operations, Open Data, Mapping for Results, and Open Finances.  With individual computers stations and Internet access, participants were able to carry out individualized exercises and interactive tutorials. Building on the positive feedback received from this session, an extended 4-hour training session was held during the Spring Meetings on April 18.  Some 25 CSO and Youth leaders from developing countries participated in this second session. (see Summary)

weDevelop: Can We Create an Empowering Web of Development with the Individual at the Center?

Tanya Gupta's picture

Development organizations operate at the global level, partnering both with countries to implement country strategies, and within sectors to tackle sectoral challenges.  NGOs on the other hand, operate at the grassroots level, working with individuals towards the betterment of communities.  Development organizations have the advantage of resources, many years of experience and knowledge but are generally several degrees removed from the individual.  NGOs are in touch with the needs of citizens and are able to respond quickly to challenges but unable to scale up.  The two have worked together, but so much more can be done.  Over the last several years the dynamic has undergone a fundamental change.  Cue to technology, which is fast emerging as a game changer in the world of development.  Technology enables linkages based on mutual agreement (e.g. development institutions-NGOs) as well as linkages that evolve organically (e.g. a grassroots human rights group in Kenya that builds a relationship with a Swedish development institution focused on social inclusion). 

Avoiding Disaster After the Disaster

Paul Mitchell's picture

If the earthquake in Haiti and the tsunami off Indonesia in 2004 have shown us anything it is that large scale natural catastrophes are not rare. Calamities that claim tens of thousands of lives happen with regularity (about every four years on average). Many others claim a smaller number of lives but are equally devastating to local communities. The claims that these disasters are unique “100 year events”, which cannot be predicated and therefore cannot be planned for, are increasingly hollow.


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