Disaster Risk Financing in Bangladesh
Ozaki, Mayumi | September 2016
Abstract
Disasters pose considerable challenges not only to livelihoods but also to economy. Financial protection from disasters, i.e., disaster risk financing, has increasingly been applied in developed countries. However, the application of ex ante disaster risk financing is very scarce in developing countries including Bangladesh. Bangladesh is disaster-prone, with floods and cyclones being the most frequent and severe danger. Based on historical data, natural hazard events in Bangladesh cost more than $10 billion economic losses from 2000 to 2013, but the total funding available for relief, rehabilitation, and reconstruction for the same period was $2 billion only. It is estimated that Bangladesh will incur a financial impact of about $3.2 billion on average per year due to cyclone and flood, or about 2.2% of gross domestic product. Bangladesh urgently needs to develop ex ante disaster risk financing solutions to minimize economic impacts of catastrophes. Currently, three disaster risk finance solutions are considered effective in Bangladesh: sovereign disaster risk contingent credit, parametric sovereign risk insurance, and disaster risk microfinance portfolio insurance.
Citation
Ozaki, Mayumi. 2016. Disaster Risk Financing in Bangladesh. © Asian Development Bank. http://hdl.handle.net/11540/7597. License: CC BY 3.0 IGO.ISSN
2313-5867 (Print)
2313-5875 (e-ISSN)
Keywords
Project impact
Development projects
Program management
Performance appraisal
Project appraisal
Technology assessment
Results-Based Monitoring And Evaluation
Project Evaluation & Review Technique
Project Evaluation
Program Evaluation
Performance Evaluation
Operations Evaluation
Evaluation Methods
Evaluation
Disaster preparedness
Disaster prevention
Disaster management
Emergency relief
Flood control
Fire prevention
Natural disasters
Man-made disasters
Post-conflict recovery
Fragile states
Cumulative effects assessment
Grievance procedures
Participatory monitoring and evaluation
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