Financial services and disaster risk finance: Examples from the community level

Increased attention has recently been given to the possible role of financial services in the management of natural disaster risk. Local communities have been at the forefront of developing innovative disaster risk finance strategies and implementing risk-oriented incentive programs. In view of increasing risks, including the impacts of climate change, such programs will become more important. This paper examines four models and some recent experiences in using financial services at the community level. The paper offers an overview of advantages and limitations of each model to manage disaster risk in communities. Examples include a federal government initiated scheme of social protection funds, a local government risk reduction scheme, an insurance product provided by a non-governmental organization , and a micro-insurance scheme. Finally, the paper offers some directions about specific ways that the public and private sectors, in collaboration with other partners can improve finance alternatives for disaster management at the community level. It appears that a range of follow-up studies and further dialogue is needed, in order to expand the knowledge on what types of risk finance models can help manage and reduce the financial impacts of natural disasters.     

A policymaking perspective on disaster risk reduction in Mozambique

Academics and practitioners alike emphasise that public policy plays a key role to support efforts to reduce disaster risks and to buffer the impacts of natural hazards when they occur. This involves developing public policies to promote disaster risk reduction (DRR). However, the public policy dimension has only recently begun to receive attention in empirical research on DRR. Processes of policy change are discussed, yet less often studied, and more empirical research is needed to advance the understanding of the conditions for DRR policy change. Combining insights from adaptation research and public policy theory, this study investigates the long-term development of DRR policy in Mozambique as perceived by multiple stakeholders. The study identifies barriers and enabling factors influencing the DRR policy process over time. Using data from 37 semi-structured interviews, the study finds six main enabling factors supporting DRR policy change. Among the most important enabling factors are past disasters and broad stakeholder involvement. The study also unveils several barriers to DRR policy change, including resource insufficiency and lack of coordination among stakeholders. The study concludes with suggestions for integrating DRR and policy process research and lessons for policymaking in support of DRR over time.     

The interplay between climate change and disaster risk reduction policy: evidence from Mexico

Mexico gained worldwide reputation for its efforts to develop both climate change (CC) and disaster risk reduction (DRR) policies at the national and international levels. However, the integration of agreements such as the Kyoto Protocol and the Hyogo and Sendai Frameworks into the national institutional setting has been challenging in terms of creating a coherent national risk reduction policy. The purpose of this paper is to analyse the interplay between DRR and CC domains; it provides evidence for the situation in Mexico by comparing the institutions and main actors in both fields as well as the financial and operational instruments currently in force. The comparison is based on institutions’ jurisdictions, priorities and lines of action. This paper synthesises the most important policy instruments, their meeting points and their contradictions and discusses the implications of such policy setting for the implementation of effective CC risk policies. The study depicts a fragmented policy interface with serious shortcomings in terms of the institutional design necessary to coordinate actions. The article concludes that, despite the multiple conceptual and political intersections between both policy fields, the implementation of specific, shared actions would hardly overcome the difficulties imposed by the current, fragmented normative frameworks and jurisdictions.     

Integrating disaster risk reduction in national development planning: experience and challenges of Jamaica

It is generally recognised by the disaster risk management and development communities that disasters have a negative impact on development, and indeed can set back development by years. This realisation led to a new paradigm for the management of hazards and their impacts, namely an integrated approach which emphasises disaster risk reduction being incorporated into national development planning. Awareness, however, does not necessarily translate into implementation. ‘Reduce the underlying risk factors’, Priority for Action 4 of The Hyogo Framework for Action 2005–2015, reported the lowest average score for progress of the five priority areas. Challenges to progress, as reported by Governments included inappropriate development practices, high levels of poverty and other factors which increase vulnerability. Various authors have recognised the difficulty of consistently and successfully integrating disaster risk reduction into development planning. This integration is particularly challenging for Small Island Developing States (SIDS) which face high exposure to hazards, vulnerable populations and limited resources, often both human and financial. The efforts of Jamaica, a Caribbean SIDS, at integrating disaster risk reduction into national development, and some factors which proved to be important in making progress are presented here. This retrospective paper is written from the perspective of a participant observer and traces developments in disaster risk management over three decades, 1980–2010. Integration and inclusiveness, use of quantitative methods and application of risk assessments are identified as being important in gaining acceptance for disaster risk reduction.     

Sovereign financial disaster risk management: The case of Mexico

In 2006, Mexico became the first transition country to transfer part of its public-sector natural catastrophe risk to the international reinsurance and capital markets. The Mexican case is of considerable interest to highly exposed transition and developing countries, many of which are considering similar transactions. Risk financing instruments can assure governments of sufficient post-disaster capital to provide emergency response, disaster relief to the affected population and repair public infrastructure. The costs of financial instruments, however, can greatly exceed expected losses, and for this reason it is important to closely examine their benefits and alternatives. This paper analyzes the Mexican case from the perspective of the risk cedent (the Ministry of Finance and Public Credit), which was informed by analyses provided by the International Institute for Applied Systems Analysis (IIASA). The rationale for a government to insure its contingent liabilities is presented along with the fiscal, legal and institutional context of the Mexican transaction. Using publicly available data, the paper scrutinizes the choice the authorities faced between two different risk-transfer instruments: reinsurance and a catastrophe bond. Making use of IIASA's catastrophe simulation model (CATSIM), this financial risk management decision is analyzed within the context of a public investment decision.     

Sovereign financial disaster risk management: The case of Mexico

In 2006, Mexico became the first transition country to transfer part of its public-sector natural catastrophe risk to the international reinsurance and capital markets. The Mexican case is of considerable interest to highly exposed transition and developing countries, many of which are considering similar transactions. Risk financing instruments can assure governments of sufficient post-disaster capital to provide emergency response, disaster relief to the affected population and repair public infrastructure. The costs of financial instruments, however, can greatly exceed expected losses, and for this reason it is important to closely examine their benefits and alternatives. This paper analyzes the Mexican case from the perspective of the risk cedent (the Ministry of Finance and Public Credit), which was informed by analyses provided by the International Institute for Applied Systems Analysis (IIASA). The rationale for a government to insure its contingent liabilities is presented along with the fiscal, legal and institutional context of the Mexican transaction. Using publicly available data, the paper scrutinizes the choice the authorities faced between two different risk-transfer instruments: reinsurance and a catastrophe bond. Making use of IIASA's catastrophe simulation model (CATSIM), this financial risk management decision is analyzed within the context of a public investment decision.     

Reflections: Resolving conflicting demands within disaster risk and recovery

This ‘reflection’ describes conflicting experiences, drawn from the author’s career in varied aspects of disaster risk management and recovery (1973–2016) delving into his memory, Ian Davis explores conflicts he has felt in four parallel roles he has adopted as architect, NGO board member, academic and the personal challenges he has faced working within the humanitarian sector. After describing these encounters, some practical solutions are suggested. The reflection concludes with a suggestion that at the root of these conflicts there is a need for people working in the humanitarian field to become more accountable in a downward direction towards those they seek to serve, who often lack power and influence. These include an architect’s clients, the beneficiaries of an NGO’s concern, an academic’s students or trainees and more broadly an ethical challenge that the author strives after, to regard his work as a vocation, highlighting the need for service to others rather than self-promotion.     

Reducing hazard vulnerability: towards a common approach between disaster risk reduction and climate adaptation

Over the past few decades, four distinct and largely independent research and policy communities--disaster risk reduction, climate change adaptation, environmental management and poverty reduction--have been actively engaged in reducing socio-economic vulnerability to natural hazards. However, despite the significant efforts of these communities, the vulnerability of many individuals and communities to natural hazards continues to increase considerably. In particular, it is hydro-meteorological hazards that affect an increasing number of people and cause increasingly large economic losses. Arising from the realisation that these four communities have been largely working in isolation and enjoyed only limited success in reducing vulnerability, there is an emerging perceived need to strengthen significantly collaboration and to facilitate learning and information exchange between them. This article examines key communalities and differences between the climate change adaptation and disaster risk reduction communities, and proposes three exercises that would help to structure a multi-community dialogue and learning process.     

Learning from others: the scope and challenges for participatory disaster risk assessment

This paper develops a framework based on procedural, methodological and ideological elements of participatory vulnerability and risk assessment tools for placing individual approaches within the wide range of work that claims a participatory, local or community orientation. In so doing it draws on relevant experience from other areas of development practice from which the disasters field can learn. Participatory disaster risk assessments are examined for their potential to be empowering, to generate knowledge, to be scaled up, to be a vehicle for negotiating local change and as part of multiple-methods approaches to disaster risk identification and reduction. The paper is a response to an international workshop on Community Risk Assessment organised by ProVention Consortium and the Disaster Mitigation for Sustainable Livelihoods Programme, University of Cape Town. The workshop brought together practitioners and academics to review the challenges and opportunities for participatory methodologies in the field of disaster risk reduction. In conclusion the contribution made by participatory methodologies to global disaster risk reduction assessment and policy is discussed.     

Types of community-focused organisations for disaster risk reduction in the Longmen Shan Fault area

In the past 10 years, both the Wenchuan earthquake (2008, Magnitude?=?8.0) and the Lushan earthquake (2013, Magnitude?=?7.0) struck in the Longmen Shan Fault area, causing extraordinary human and economic losses. After the Wenchuan earthquake, the Chinese government began promoting the Community for Disaster Prevention and Mitigation (CDPM) project nationwide to enhance community-level disaster-resistance capacities. Due to post-earthquake demand, CDPM construction in the Longmen Shan Fault area involved many diverse organisations, each of which had different organisational leadership models, which greatly influenced the CDPM characteristics and mechanisms. From long-term field research in 23 CDPM organisations in Longmen Shan Fault area, four types of CDPM organisations were found, including eight Government-oriented CDPM, six Resident-oriented CDPM, seven NGO-oriented CDPM and two Enterprise-oriented CDPM, forming a multiple organisation-oriented CDPM (M-CDPM) model. As there was only 85?km between the Wenchuan earthquake and the Lushan earthquake epicentres, many of the hardest-hit regions were the same; therefore, most CDPM organisations examined in this study were established after the Wenchuan earthquake and their effectiveness was tested in the Lushan earthquake. Therefore, research on the M-CDPM gives valuable information and provides a practical perspective for community-level disaster risk reduction.     

Re-framing risk: the changing context of disaster mitigation and preparedness

This issue of Disasters explores the roles of NGOs and other actors in disaster mitigation and preparedness and also reviews broad international trends in risk management and disaster prevention. The need to address risk, and with that the motivation to improve disaster mitigation and preparedness, has tended to fall between the cracks of grander frameworks of development co-operation and humanitarian assistance. Despite the seemingly glaring need to reduce the horrific impact of floods, droughts and wars, disaster mitigation and preparedness have neither the allure of directly 'saving lives', nor of providing an 'escape from poverty'. There are, however, signs that risk management is becoming a mainstream concern. Factors such as the need to address factors that do not fit into traditional slots on the relief-development continuum, the rising economic costs of disasters and a growing acknowledgement that aid will never cover more than a small fraction of the costs of disasters are all leading to new approaches, priorities and institutional configurations. A realisation that dealing with risk and insecurity is a central part of how poor people develop their livelihood strategies has begun to position disaster mitigation and preparedness within many poverty alleviation agendas. A number of long-standing challenges remain; most of all, the complexities of maintaining the political will that is needed to ensure that risk management becomes more than a passing fad.     

Hurricanes and wildfires: generic characteristics of community adaptive capacity

This paper explores the question: to what extent is human community adaptive capacity generic versus hazard-specific? To what extent does having adaptive capacity for one type of disturbance indicate that communities also have adaptive capacity for other types of disturbance that they currently or may someday face? We did in-depth case studies in two Lee County, Florida communities to explore the extent to which residents have adaptive capacity for both hurricanes and wildfires. Although wildfire risk has significantly less salience than hurricane risk for participants, our results suggest that case study communities have built generic elements of adaptive capacity that are generalizable to address both disturbances: (1) interactional and organizational capacities; (2) professional knowledge and extra-local networks; and (3) local knowledge, resources, and skills. We conclude by offering examples of what an ‘all-hazard’ community might look like based on the development of generic adaptive capacity.     

Foundations of community disaster resilience: well-being,identity, services,and capitals

If community disaster resilience is to mature into a robust and lasting area of research, methodologically facilitated dialogue between empirical observations and theory is necessary. However, methodological and empirical research has outpaced community disaster resilience theory. To address this gap, a theoretical framework called WISC is presented. WISC is named after four constructs of the framework: well-being, identity, services, and capitals. WISC relates the two concepts of community and infrastructure, broadly defined, to the four constructs it is named after. The 4 constructs are respectively defined by 29 variables. The broadest interpretation of WISC is that infrastructure supports and facilitates components of community within human settlements. Infrastructure is represented as combinations of capitals and services; community is represented by connections of identity and well-being. Ultimately, well-being of a community is dependent on that community's collective capital. But these two constructs are mediated by the intervening constructs of identity and services. WISC goes beyond existing frameworks by addressing essential elements of theory building that have been overlooked in the literature, while synthesizing other frameworks and areas of knowledge. WISC provides a powerful foundation for posing and evaluating hypotheses, improving data collection efforts, and, most importantly, enabling critical theory building.     

加强综合灾害风险研究,提高迎对灾害风险能力——从第6届国际综合灾害风险管理论坛看我国的综合减灾

综述了第6届国际IIASA-DPRI综合灾害风险管理论坛的主要内容，并就中国综合灾害风险管理对策提出了具体的建议。本届论坛的主题是：风险与商业和产经界面临的挑战。论坛除主题报告外，共设置了16个分会场，就综合灾害风险信息共享平台（DRH）的建设、产经界如何迎对灾害风险、地震与洪水灾害风险的综合管理、灾害风险教育与减灾意识的养成、综合灾害风险管理的理论与方法论探讨，以及土耳其国家综合灾害风险管理的经验与教训等进行了深人的研讨。针对上述进展，从我国减灾工作现状，提出从三个方面加强我国综合减灾与灾害风险管理工作，即：各级政府在加强应急管理工作的同时，要高度重视从综合的角度完善减灾战略、规划和能力建设；全面改进产经界迎对灾害风险的能力，特别是非国有中小企业防御灾害风险的能力，以及大型国有企业灾害自保或参保机制的完善；加强综合灾害风险管理研究。     

有效防灾减灾体系新构建——从灾害共同体走向责任共同体和伦理共同体

中国幅员辽阔,人口众多,灾害多发,因此自然灾害问题对中国来说无疑具有更为重要的意义。结合对自然灾害的科学研究、应对管理以及深层的伦理思考,我们已经形成了灾害共同体,并且,在应对自然灾害上正在逐渐走向责任共同体和伦理共同体。     

Nation‐building policies in Timor‐Leste: disaster risk reduction,including climate change adaptation

Few studies have explored the relationships between nation‐building, disaster risk reduction and climate change adaptation. Focusing on small island developing states, this paper examines nation‐building in Timor‐Leste, a small island developing state that recently achieved independence. Nation‐building in Timor‐Leste is explored in the context of disaster risk reduction, which necessarily includes climate change adaptation. The study presents a synopsis of Timor‐Leste's history and its nation‐building efforts as well as an overview of the state of knowledge of disaster risk reduction including climate change adaptation. It also offers an analysis of significant gaps and challenges in terms of vertical and horizontal governance, large donor presence, data availability and the integration of disaster risk reduction and climate change adaptation for nation‐building in Timor‐Leste. Relevant and applicable lessons are provided from other small island developing states to assist Timor‐Leste in identifying its own trajectory out of underdevelopment while it builds on existing strengths.     

综合自然灾害风险管理--全面整合的模式与中国的战略选择

综合自然灾害风险管理是目前国际上防灾减灾和灾害管理较先进的措施和模式，是针对各种自然灾害的全灾害的管理，是贯穿于灾害管理全过程，集中于灾害风险和承灾体脆弱性分析并强调多层面、多元化和多学科参与合作的全面整合的灾害管理模式。介绍了综合自然灾害风险管理的必要性、概念和本质，探讨了综合自然灾害管理的基本理论、对策及其实施过程和实施战略，在此基础上提出了对我国实施综合自然灾害风险管理的建议，为强化和推动我国综合自然灾害风险管理提供参考。     

Strengthening the role of science and technology in disaster risk reduction: the Chilean strategy

This paper presents an integrative case study of Chile's national strategy of research, development, and innovation (R&D+i) for disaster resilience and progress towards developing the institutional conditions necessary for its successful implementation. The paper covers the period between 2016 and 2021, concentrating on the work of the Chilean Commission of R&D+i for Resilience to Disasters of Natural Origin (CREDEN). Through an analysis of the official records of the initiative at all of its stages, and 29 semi-structured interviews with CREDEN members and stakeholders, we aim to present a successful example of strengthening the role of science and technology in disaster risk reduction. Chile's experience is particularly interesting because its strategy focused on R&D+i and proposed developing an industry of scientific-based technological solutions for disaster resilience. The study also illustrates how strategic interaction between academia, state, and industry can be a key factor in aligning knowledge production to tackle current socio-technical challenges.     

Academic publishing in disaster risk reduction: past,present, and future

Nowadays there are approximately 80 Anglophone journals that deal primarily with disaster risk reduction (DRR) and allied fields. This large array signals a sustained, if uneven, growth in DRR scholarship but also competition between the offerings of different publishers and institutions. The purpose of this article is first to summarise the development of academic publishing on DRR from its early beginnings to the present day. The paper then evaluates the current state of publishing in this field and discusses possible future trends. Next, it identifies some possible opportunities, challenges, expectations, and commitments for journal editors both within DRR and academia more broadly, including those that refer to changes in the use of terminology, the relentless increase in the number of papers submitted, the expansion and dangers of predatory journals, different peer review models, open access versus paywalls, citations and bibliography metrics, academic social networks, and copyright and distribution issues.     

The politics of risk in the Philippines: comparing state and NGO perceptions of disaster management

It is now generally appreciated that what constitutes vulnerability to one person is not necessarily perceived as such by the next. Different actors 'see' disasters as different types of events and as a result they prepare for, manage and record them in very different ways. This paper explores what different perceptions of vulnerability mean in terms of the understanding and practices of two significant sets of actors and stakeholders involved in disaster preparedness and management in the Philippines: the state and NGOs. Approaches to disaster are not just a function of people's perceptions of disaster risk but also of their understanding of the prevailing social order and social relations. Despite a shared vocabulary—which increasingly presents disasters as processes rather than events, takes a proactive rather than a reactive approach, and favours the inclusion of stakeholders rather than solely relying on technocratic management—different realities continue to make for different responses.