Natural Disaster Risk Hotspots: Practical Application Margaret Arnold Hazard Risk Management Team World Bank

WB Disaster Mgmt Portfolio International Bank for Reconstruction and Development Largest provider of reconstruction and development assistance Disaster management has been a key part of the Bank’s activities since its establishment More than 550 projects amounting to over $43 billion since 1980

Towards a More Strategic Approach Working since 1998 to: 1. document links between poverty and disasters 2. improve response to disaster emergencies 3. build HRM capacity through training 4. develop country case studies and AAA work leading to investments in HRM 5. facilitate integration of HRM into more CASs and PRSPs

Framework for Disaster Risk Mgmt Systematic treatment of HRM at policy and operational levels Provide a framework for: 1. Making disaster risk a standard feature of relevant CASs and PRSPs 2. Addressing disaster risk reduction through standard sector investments 3. Assisting clients to develop proactive, national strategies for HRM 4. Introducing more effective financing and risk transfer mechanisms

Aim to influence 3 main areas  Bank policy  Knowledge management, including skills training  Lending instruments

Hotspots role in Risk Mgmt Framework Policy/Strategy Level  Country Assistance Strategies  Poverty Reduction Strategy Papers Project/Operational Level  Standard Sector Investments  Risk Reduction Projects  Pre-planning for Emergency Recovery

Policy/strategy level “Flag” countries with highest vulnerability  Country Assistance Strategy  Poverty Reduction Strategy Papers

Sl no.Name of the country% of total area at risk**% of population in Areas at risk** Percent of GDP in areas at risk** 1Vietnam Albania Colombia Bangladesh Turkey Dominica Nicaragua Honduras Haiti Chile Iran Indonesia Venezuela Uzbekistan South Africa Target countries fy06-07

16China Kyrgyz Rep Pakistan Uganda Somalia Ethiopia Sri LankaHighly prone to floods, cyclones and tsunamis(source EM-DAT) 23Afghanistan BrazilProne to floods and landslides(source :EM-DAT) 25YemenProne to flood and landslides(source: EM-DAT) 26India Madagascar Tanzania Argentina Romania Algeria Azerbaijan

Operational/project level Sector Investment Operations Risk Reduction Operations Contingency Financing Mechanisms

Sector Investment Operations protection of investments in high risk areas Terms of Reference for risk assessment as part of project preparation  initial hazard identification  methods risk management throughout project design and implementation  evaluation of loss risks in expected rate of return  adherence to hazard resistant standards

Risk Reduction Operations countries with high disaster risks  frequent disasters, significant losses  frequent emergency reconstruction projects project components may include:  risk assessment  policy review/reform  institutional strengthening  funds for high-priority risk reduction measures  risk transfer mechanisms (insurance, contingency funds, catastrophe bonds, commodity hedging, etc.) e.g., Columbia, Vietnam

Emergency Recovery Projects: Contingency Arrangements advance planning for recovery and resource allocation emergency reconstruction standards and procedures pre-identified reduced interest rates, expedited approval for certified countries pre-identification of risk reduction measures for post-emergency funding

Next steps World Bank to publish Volume 2 (case studies) create internet access to Hotspots input data continue to improve data quality (on hazards and economic losses) begin to move from static to dynamic risk assessment for disaster early warning Integrate into WB Hazard Risk Management Framework “portal”