Syndicate content

flooding

Cat DDOs: More than emergency lending for disaster relief

Ede Ijjasz-Vasquez's picture
Disasters can strike anywhere and anytime. As climate change intensifies, extreme weather events, for example, are on the rise around the world, and countries are increasingly seeking to improve both their physical and financial resilience to all kind of disasters. An important dimension of sustainability in urban and rural areas is resilience–resilience for the natural disasters of today and those of tomorrow.   

One way to better prepare for disasters is securing access to financial resources before a disaster strikes through financial instruments such as the Cat DDO. 

Cat DDO stands for “Catastrophe Deferred Drawdown Option.” It is an innovative contingent line of credit that can provide immediate liquidity to countries in the aftermath of a disaster resulting from an adverse natural event. The World Bank has made it available to countries since 2008, to make it possible for them to have quick access to financial resources upon the declaration of state of emergency in the aftermath of a disaster, following an adverse natural event and in accordance with local legislation. The funds that provide liquidity to the countries are preapproved based on a sound disaster risk management program and an adequate macroeconomic framework. 

[Read: Disasters, funds, and policy: Creatively meeting urgent needs and long-term policy goals]

Why are Cat DDOs an important disaster risk financing instrument for countries?
  • It serves as an early financing tool while funds from other sources such as government reallocations, bilateral aid, or reconstruction loans/credits become available.
  • It allows the countries to address the emergency without distracting resources from their social and development programs.
  • It enhances the countries’ financial capacity to prepare for disasters.
  • It also generates or consolidates a dialogue on disaster risk management between the countries and the World Bank to learn from experience and apply good practices.

What are some of the examples of “Cat DDOs in action”? How will this innovative tool evolve to better manage increasing disaster risks? Watch a video with World Bank Senior Director Ede Ijjasz-Vasquez (@Ede_WBG) and Senior Disaster Risk Management Specialist Armando Guzman to learn more. 


 

What El Niño has taught us about infrastructure resilience

Irene Portabales González's picture
Also available in: Español
Photo: Ministerio de Defensa del Perú/Flickr
The rains in northern Peru have been 10 times stronger than usual this year, leading to floods, landslides and a declaration of a state of emergency in 10 regions in the country. Together with the human and economic toll, these downpours have inflicted tremendous damage to transport infrastructure with added and serious consequences on people’s lives.

These heavy rains are blamed on El Niño, a natural phenomenon characterized by an unusual warming of the sea surface temperature in the central and eastern equatorial Pacific Ocean. This phenomenon occurs every two to seven years, and lasts about 18 months at a time. El Niño significantly disrupts precipitation and wind patterns, giving rise to extreme weather events around the planet.

In Peru, this translates into rising temperatures along the north coast and intense rainfall, typically shortly before Christmas. That’s also when “huaicos” appear. “Huaico,” a word that comes from the Quechua language (wayq’u), refers to the enormous masses of mud and rocks carried by torrential rains from the Andes into rivers, causing them to overflow. These mudslides result from a combination of several natural factors including heavy rains, steep slopes, scarce vegetation, to name a few. But human factors also come into play and exacerbate their impact. That includes, in particular, the construction of human settlements in flood-prone basins or the absence of a comprehensive approach to disaster risk management.

This year’s floods are said to be comparable to those caused by El Niño in 1997-1998, one of the largest natural disasters in recent history, which claimed the lives of 374 people and caused US$1.2 billion worth of damages (data provided by the Peruvian National Institute of Civil Defense).

Climate and disaster risk in transport: No data? No problem!

Frederico Pedroso's picture
Development professionals often complain about the absence of good-quality data in disaster-prone areas, which limits their ability to inform projects through quantitative models and detailed analysis.
 
Technological progress, however, is quickly creating new ways for governments and development agencies to overcome data scarcity. In Belize, the World Bank has partnered with the government to develop an innovative approach and inform climate-resilient road investments through the combination of creativity, on-the-ground experience, and strategic data collection.
 
Underdeveloped infrastructure, particularly in the transport sector, is a key constraint to disaster risk mitigation and economic growth in Belize. The road network is particularly vulnerable due to the lack of redundancy and exposure to natural hazards (mostly flooding). In the absence of alternative routes, any weather-related road closure can cut access and severely disrupt economic and social movement.
 
In 2012, the government made climate resilience one of their key policy priorities, and enlisted the World Bank’s help in developing a program to reduce climate vulnerability, with a specific focus on the road network. The institution answered the call and assembled a team of experts that brought a wide range of expertise, along with experience from other climate resilience interventions throughout the Caribbean. The program was supported by Africa, Caribbean and Pacific (ACP) European Union funds, managed by the Global Facility for Disaster Reduction and Recovery (GFDRR).
 
Our strategy to address data scarcity in Belize involves three successive, closely related steps.

Water, the economy, and development: New insights on a complex challenge

Scott Michael Moore's picture
In the World Bank Water Practice, we often talk about how issues like flooding and droughts threaten our mission to end poverty and boost shared prosperity. But how much do we actually know about how these floods and droughts — "water shocks" — impact farmers, firms, and communities? Perhaps adaptation in the economy has limited such impacts. Or maybe policies have led to economies being more vulnerable to such shocks.

Let’s build the infrastructure that no hurricane can erase

Luis Triveno's picture
Hati after Hurrican Matthew
Hurricane Matthew destroyed an estimated 90% of homes in Haiti's Grande Anse department. Stronger public knowledge infrastructure can help better facilitate post-disaster recovery.
(Photo: EU Delegation to the Republic of Haiti)
The news from Haiti about the aftermath of Hurricane Matthew is a familiar story: more chaos, rubble, and loss of life from another natural disaster. Though recent improvements to Haiti’s infrastructure at the local level kept the death toll at 534—3,000 died in the 2004 hurricane; more than 200,000 in the 2010 earthquake—the number is still way too high.
 
Worldwide, natural disasters claimed 1.3 million lives between 1992 and 2012, with earthquakes accounting for 60%of disaster deaths in low- and middle-income countries, where the preponderance of sub-standard housing increases the risks. Today, 1.2 billion people live in substandard housing. By 2030, this figure will almost triple.
 
The good news is that most of those deaths and property losses can be prevented. In 2003, for example, within three days of each other, earthquakes of similar magnitude struck Paso Robles, California and Bam, Iran. The death toll in Bam was 40,000—nearly half the city’s population. Two people died in Paso Robles.
 
Even when destruction does take place, proper planning and measures can ensure a speedy recovery.

Watching Tanzania leapfrog the digital divide

Boutheina Guermazi's picture
 
Digital opportunities are the fuel of the new economy. They have significant impact on both the economy and society. They contribute to growth, create jobs, are a key enabler of increased productivity, and have significant impact on inclusion and poverty reduction. They also provide the ability to leapfrog and accelerate development in key sectors like health and education.
 
Why is this important?  It is important because “going digital” is not a temporary phenomenon. It is a revolution—what the World Economic Forum calls “the 4th industrial revolution”. It is happening before our eyes at a dizzying pace, disrupting every aspect of business, government and individuals’ lives. And it is happening in Tanzania.

How Ho Chi Minh City got a facelift: sustainable development solutions are changing a city

Madhu Raghunath's picture



When I visited Vietnam for the first time three years ago, I imagined a Ho Chi Minh City out of Hollywood movies, with panoramic buildings of French architecture, tree-lined, long boulevards and the melting pot of Indochine cuisine.

After I began working in the city as an urban professional in 2012, I quickly learned to see it as much more: a vibrant, young, hip and energetic city with a vision and determination to become a leading metropolis in East Asia, not just in Vietnam, one of the fastest-growing emerging economies in the region.

And it has taken all the right steps just to do that, combining infrastructure development with social services to make sure the city is more livable and growth more sustainable. As the World Cities Day approaches, I thought it would be useful to share the city’s experience with the world. 
 

What does a world champion boxer have to do with saving lives in a disaster?

Yann Kerblat's picture
For Project NOAH, flood hazard maps are more “punchy” and effective when they are accessible and easy to read. Shown above is a flood map of the city of Manila during typhoon Ondoy (international name: Ketsana) in 2009.

World Champion boxer Manny Pacquiao is a living icon in the Philippines, his legendary battles are well known and brought him considerable fame. This fame and recognition is being used by the Philippine government (through Project NOAH) to save lives and minimize losses from disasters—where an infographic gradient links flood depth to Pacquiao’s famous height. In other words, to encourage adoption of early warning advisories and make flood hazard projections more interesting, yellow colors on interactive flood hazard maps equate to flood levels up to Pacquiao’s knees, while a dangerous, bright red color corresponds to high flood levels that are taller than Pacquiao himself.

Left unattended, 5.3 million of Bangladesh’s poor will be vulnerable to the effects of climate change in 2050

Susmita Dasgupta's picture

Currently around 43.2 million people or 30% of the population of Bangladesh live in poverty. Alarmingly, this figure includes 24.4 million extremely poor who are not even able to meet the basic needs of food expenditure. These numbers will be even higher if we do not address climate change. Preparation for climate change is essential for poverty alleviation to be sustainable.

Concentration of poor in climate-vulnerable coastal region

In densely populated and land scarce Bangladesh, poor households are disadvantaged with regards to land access, and many end up settling in low-lying regions close to the coast. The poverty map developed by the Bangladesh Bureau of Statistics, World Food Program and the World Bank identifies a high incidence of poverty near the coast, where 11.8 million poor are located in 19 coastal districts in 2010. 

Increasing Flood Risks Create Major Challenges for World’s Coastal Cities

Stéphane Hallegatte's picture

Increasing flood risks create a major political and institutional challenge for the world’s coastal cities as ambitious and proactive action at the local level over the next decades will be needed to avoid large-scale flood disasters. However, the implementation of flood risk management policies meets many obstacles. 

In a recent study written with colleagues Colin Green, Robert Nicholls and Jan Corfee-Morlot as part of an OECD project on urban vulnerability, we estimate how flood risks could change in the future in 136 coastal cities, in response to increasing population and wealth, local environmental change, and climate change. We find that because current flood defenses and urbanization patterns have been designed for past environmental conditions, even a moderate change in sea level is sufficient to make them inadequate, thus magnifying flood losses to catastrophic levels. If no action is taken to reduce flood vulnerability, most coastal cities would become inhospitable and dangerous places to live, with annual losses in excess of $1 trillion dollars.
 


Pages