1 Dealing with Disasters: The Global Facility for Disaster Reduction and Recovery Dr. Josef Leitmann Disaster Management Coordinator World Bank/Indonesia ASEAN REGIONAL FORUM 6 December 2008, Banda Aceh, INDONESIA

2 Evolution of GFDRR Overview of GFDRR’s operational structure Financing disaster recovery Q & A Outline of Presentation

3 Evolution of GFDRR

4 Disaster Risk Reduction Disaster are increasing – Main driver is growing social, economic and environmental vulnerability – Disasters impact economic growth – Average GDP loss in disasters: 2-15% (WB case studies)‏ Poverty link – Vulnerability to disasters is at the core of the fight against poverty, as poor are consistently most affected – Poverty outcomes not met in disaster-prone countries (WB case studies)

5 Disasters and Climate Change Climate change effects occurrence of natural hazards and vulnerability to disasters Early impacts of climate change felt in least developed countries through increase in extreme climate events Global agenda driven by climate change while national concerns grounded in disaster events and climate variability

6 Strategic Framework for risk reduction and sustainable recovery Drivers of Bank’s Strategic Framework - Analytical studies demonstrate evidence of disaster-development- environment nexus - Lessons of experiences (more than 605 projects with $32 billion in disaster recovery and mitigation)‏ - IEG evaluation of natural disasters assistance ( )‏ -Hyogo Framework for Action ( )‏ -EC-WB-UN Joint Declaration on Post-Crisis Assessment and Recovery Planning (Sept 2008) -UN-WB Partnership Framework for Crisis and Post-Crisis Situations (Oct 2008)

7 Client-Centric Framework Speedy, flexible and innovative financing – For disaster recovery and risk mitigation – New Operations Policy (Board approval in March 07)‏ – Longer term approach to vulnerability reduction Technical assistance for client countries Serve borrowers’ needs Forging stronger partnerships

8 Client-Centric Framework Speedy, flexible and innovative financing Technical assistance for client countries – To identify risks, and to develop and implement disaster risk reduction strategies – Upstream attention through CASs and PRSPs – Focus on Current and Emerging Risks Serve borrowers’ needs Forging stronger partnerships

9 Client-Centric framework Speedy, flexible and innovative financing Technical assistance for client countries Serve borrowers’ needs – Benefit from Bank’s expertise in disaster needs assessment and reconstruction planning – Catastrophe Risk Financing (e.g. CAT DDO ) – Quick Reaction Team for Natural Hazards Forging stronger partnerships

10 Client-centric framework Speedy, flexible and innovative financing Technical assistance for client countries Serve borrowers’ needs Forging stronger partnerships - Support global and regional functions of the ISDR system to make Hyogo Framework a core development agenda - Closer cooperation with donors, UN, IFRC and CSOs

11 Launched in September 2006 DFID, SDC, Sweden, Australia, UNISDR and WB are founding partners Make DRR central to global fight against poverty Unique financing mechanism to meet this global change at all levels Opportunities to identify climate change impacts and to develop adaptation strategies Global Facility for Disaster Reduction and Recovery (GFDRR) established to mainstream disaster risk reduction and climate change adaptation in country development strategies

12 GFDRR’s operational structure

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14 3 Tracks of GFDRR Integrated package of support – Support ISDR system to develop a coherent and coordinated approach to risk reduction thru partnerships and increased cooperation (TRACK I)‏ – Assist natural disaster hotspot countries to mainstream disaster risks in development strategies (TRACK II)‏ – Speedy and predictable financing for disaster recovery in low income countries (TRACK III)‏

15 Update on GFDRR Tracks Track I –Supports Global and Regional Cooperation in DRR –Development of tools and methodologies for DRR –Fully developed and operational; $ 5 million in ’07 and additional $ 5 million in ’08 –WB is the donor –Managed by UN ISDR Sec. Track II Track III (SRFF)‏

16 Update on GFDRR Tracks Track I Track II – Fund for Mainstreaming DRR and CCA in PRSPs Fully developed and operational; $ 65 million in Technical Assistance contributed by donors; Programs in 51 hotspot countries planned for FY – Fund for South-South Cooperation in DRR and CCA Sharing expertise and resources Fund established Work program for inter-country partnerships Track III (SRFF)‏

17 Update on GFDRR Tracks Track I Track II Track III (SRFF)‏ – Standby fund for bridging relief and development – A global recovery fund- Standby Recovery Financing Facility – Fund operational

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19 Financing Disaster Recovery

20 SRFF – Standby Recovery Financing Facility (Track III of GFDRR) The Global Need – There is no financing window that links the humanitarian phase to the long-term reconstruction phase The Global response – A global disaster recovery fund for low–income countries that is: Quick, Predictable, Effective and Reduces Future Risks Management – A partnership between World Bank, UN, Donors and Recipient Countries

21 SRFF Operations 1. Technical Assistance Fund Global Disaster Recovery Protocols and Coordination Tool, Knowledge and Capacity Development Country level support for disaster recovery planning, this includes deployment of a Standby Recovery Team 2. Callable Fund Fund in readiness that is activated when disaster strikes Finances post-disaster recovery and risk reduction projects

22 SRFF Applications 1.Technical Assistance Fund Finances activities that strengthen preparedness and contingency planning 2.Callable Fund Is activated in case of a major disaster Supports post disaster recovery and financing plans Finances disaster recovery and risk reduction projects Applications (both funds) and Applicants Through project proposals using SRFF Application Guidelines and Format ( Governments, World Bank, IFI, Regional Organizations, UN

23 Examples of Recovery Assistance Supporting damage and loss assessments following cyclones (Myanmar, Madagascar, Bangladesh, Haiti), floods (Ghana, Bolivia, India, Nepal, Lao PDR), and the earthquake in China Deploying experts and specialists to support the ASEAN field office in Yangon after Cyclone Nargis Preparing “good practice” notes on damage and loss assessment, recovery and earthquake reconstruction to help government of China develop its recovery plan

24 Thank you/Terima kasih