Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience
This paper addresses the question whether and how co-benefits, through disaster resilience building, can be further promoted. Co-benefits are defined as positive externalities that arise deliberately as a result of a joint strategy that pursues se...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26213117/disaster-risk-management-fiscal-policy-narratives-tools-evidence-associated-assessing-fiscal-risk-building-resilience http://hdl.handle.net/10986/24209 |
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okr-10986-24209 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ALLIANCE RISK PROFILES CONTINGENT LIABILITIES RISKS CAPITAL MARKETS INSURANCE TRANSACTIONS DISASTER RECOVERY EXCISE TAXES RISK REDUCTION INTEREST FACTORING GUARANTEES TERRORIST STRATEGIES PROGRAMS INFORMATION SERVICES DISTRIBUTION OF INCOME HEALTH CARE HOUSING NATURAL CATASTROPHES DISASTER ACTIVITIES FISCAL POLICY INCENTIVES RECOVERY OPERATIONS DISASTER PROJECTS DISASTER‐PRONE COUNTRIES DAMAGES EMERGENCY ASSISTANCE FISCAL GAPS DISASTER PREVENTION LEVEL PLAYING FIELD DISASTER EVENTS EARTHQUAKES HURRICANES CATASTROPHES DISASTER RELIEF PUBLIC POLICY SAVINGS CATASTROPHE REINSURANCE TSUNAMI RELIEF NATURAL DISASTER TRANSPORT FLOODS STATE GUARANTEES EXTERNALITIES NATURAL HAZARD EMERGENCIES NATURAL DISASTERS CRITERIA DEBT MARKETS PUBLIC FINANCE DISASTERS SOCIAL SECURITY LOANS ENTERPRISES DISASTER EVENT RESERVES FAMINE NATURAL RESOURCES FINANCE GRANTS INFRASTRUCTURE TAXES CONTINGENT LIABILITY REINSURANCE EQUITY GOVERNMENT LIABILITIES LEVEL‐PLAYING FIELD REGULATIONS EMERGENCY DISASTER REDUCTION DISASTER RISK CLIMATE CHANGE DROUGHT FINANCIAL STABILITY SOVEREIGN RISK PUBLIC POLICIES VALUE RISK EVALUATION LOSSES BANK EXTREME EVENTS COMMERCIAL DEBT CREDIT CLAIMS VICTIMS NATURAL CATASTROPHE DISASTER INSURANCE RELIEF OPERATIONS DISASTER MANAGEMENT BALANCE SHEET DEVASTATION FOOD‐AID RISK‐TRANSFER FLOOD URBAN DEVELOPMENT RISK TRANSFER PUBLIC DEBT INSURANCE SYSTEM INSURANCE LOSS AGENTS LAND LANDSLIDE RISK INSURANCE DISASTER AID HURRICANE RISK MITIGATION FINANCIAL MARKETS DISASTER RISKS EMERGENCY MANAGEMENT DISASTER RISK REDUCTION GOVERNMENT INSURANCE TAX ADMINISTRATION CONTINGENCY PLANNING REVENUE RISK MANAGEMENT LENDING INSURANCE COMPANIES RISK AVERSION EXTREME EVENT ADB GOVERNMENTS LIABILITIES RISK ASSESSMENTS GOVERNMENT LIABILITY LAND‐USE NATURAL HAZARDS RELIEF EFFORTS RISK ASSESSMENT RECONSTRUCTION RISK ANALYSIS INCOME GROUPS RISK‐ REDUCTION |
| spellingShingle |
ALLIANCE RISK PROFILES CONTINGENT LIABILITIES RISKS CAPITAL MARKETS INSURANCE TRANSACTIONS DISASTER RECOVERY EXCISE TAXES RISK REDUCTION INTEREST FACTORING GUARANTEES TERRORIST STRATEGIES PROGRAMS INFORMATION SERVICES DISTRIBUTION OF INCOME HEALTH CARE HOUSING NATURAL CATASTROPHES DISASTER ACTIVITIES FISCAL POLICY INCENTIVES RECOVERY OPERATIONS DISASTER PROJECTS DISASTER‐PRONE COUNTRIES DAMAGES EMERGENCY ASSISTANCE FISCAL GAPS DISASTER PREVENTION LEVEL PLAYING FIELD DISASTER EVENTS EARTHQUAKES HURRICANES CATASTROPHES DISASTER RELIEF PUBLIC POLICY SAVINGS CATASTROPHE REINSURANCE TSUNAMI RELIEF NATURAL DISASTER TRANSPORT FLOODS STATE GUARANTEES EXTERNALITIES NATURAL HAZARD EMERGENCIES NATURAL DISASTERS CRITERIA DEBT MARKETS PUBLIC FINANCE DISASTERS SOCIAL SECURITY LOANS ENTERPRISES DISASTER EVENT RESERVES FAMINE NATURAL RESOURCES FINANCE GRANTS INFRASTRUCTURE TAXES CONTINGENT LIABILITY REINSURANCE EQUITY GOVERNMENT LIABILITIES LEVEL‐PLAYING FIELD REGULATIONS EMERGENCY DISASTER REDUCTION DISASTER RISK CLIMATE CHANGE DROUGHT FINANCIAL STABILITY SOVEREIGN RISK PUBLIC POLICIES VALUE RISK EVALUATION LOSSES BANK EXTREME EVENTS COMMERCIAL DEBT CREDIT CLAIMS VICTIMS NATURAL CATASTROPHE DISASTER INSURANCE RELIEF OPERATIONS DISASTER MANAGEMENT BALANCE SHEET DEVASTATION FOOD‐AID RISK‐TRANSFER FLOOD URBAN DEVELOPMENT RISK TRANSFER PUBLIC DEBT INSURANCE SYSTEM INSURANCE LOSS AGENTS LAND LANDSLIDE RISK INSURANCE DISASTER AID HURRICANE RISK MITIGATION FINANCIAL MARKETS DISASTER RISKS EMERGENCY MANAGEMENT DISASTER RISK REDUCTION GOVERNMENT INSURANCE TAX ADMINISTRATION CONTINGENCY PLANNING REVENUE RISK MANAGEMENT LENDING INSURANCE COMPANIES RISK AVERSION EXTREME EVENT ADB GOVERNMENTS LIABILITIES RISK ASSESSMENTS GOVERNMENT LIABILITY LAND‐USE NATURAL HAZARDS RELIEF EFFORTS RISK ASSESSMENT RECONSTRUCTION RISK ANALYSIS INCOME GROUPS RISK‐ REDUCTION Mechler, Reinhard Mochizuki, Junko Hochrainer-Stigler, Stefan Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience |
| relation |
Policy Research Working Paper;No. 7635 |
| description |
This paper addresses the question
whether and how co-benefits, through disaster resilience
building, can be further promoted. Co-benefits are defined
as positive externalities that arise deliberately as a
result of a joint strategy that pursues several objectives
synergistically at the same time, such as disaster risk
management and development goals, or disaster risk
management and climate change adaptation. Of particular
interest is the question of how the economic and broader
benefits of disaster risk management can be recognized and
realized by those in charge of fiscal policy decisions. The
paper considers the interplay between public disaster risk
management investment and fiscal policy, and provides an
overview of the current debate as well as assessment
methods, tools, and policy options. In fiscal budgeting, it
has been standard practice to focus on direct liabilities
and recurrent spending. Costs of disasters are often dealt
with after the fact only, rather than being considered as
contingent liabilities. As a consequence, the full costs of
disasters have often not been budgeted for, and, with a
price signal missing, there is lack of clear incentives for
investing in disaster risk management. Overall, the paper
identifies four steps and three dividends to be harnessed:
(i) understanding fiscal risk; (ii) protecting public
finance through risk financing instruments, the first
dividend; (iii) managing disaster risk comprehensively, the
second dividend; and (iv) pursuing a synergistic,
co-benefits strategy of concurrently managing disaster risks
and promoting development, the third dividend. |
| format |
Working Paper |
| author |
Mechler, Reinhard Mochizuki, Junko Hochrainer-Stigler, Stefan |
| author_facet |
Mechler, Reinhard Mochizuki, Junko Hochrainer-Stigler, Stefan |
| author_sort |
Mechler, Reinhard |
| title |
Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience |
| title_short |
Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience |
| title_full |
Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience |
| title_fullStr |
Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience |
| title_full_unstemmed |
Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience |
| title_sort |
disaster risk management and fiscal policy : narratives, tools, and evidence associated with assessing fiscal risk and building resilience |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/04/26213117/disaster-risk-management-fiscal-policy-narratives-tools-evidence-associated-assessing-fiscal-risk-building-resilience http://hdl.handle.net/10986/24209 |
| _version_ |
1764455935078563840 |
| spelling |
okr-10986-242092021-04-23T14:04:20Z Disaster Risk Management and Fiscal Policy : Narratives, Tools, and Evidence Associated with Assessing Fiscal Risk and Building Resilience Mechler, Reinhard Mochizuki, Junko Hochrainer-Stigler, Stefan ALLIANCE RISK PROFILES CONTINGENT LIABILITIES RISKS CAPITAL MARKETS INSURANCE TRANSACTIONS DISASTER RECOVERY EXCISE TAXES RISK REDUCTION INTEREST FACTORING GUARANTEES TERRORIST STRATEGIES PROGRAMS INFORMATION SERVICES DISTRIBUTION OF INCOME HEALTH CARE HOUSING NATURAL CATASTROPHES DISASTER ACTIVITIES FISCAL POLICY INCENTIVES RECOVERY OPERATIONS DISASTER PROJECTS DISASTER‐PRONE COUNTRIES DAMAGES EMERGENCY ASSISTANCE FISCAL GAPS DISASTER PREVENTION LEVEL PLAYING FIELD DISASTER EVENTS EARTHQUAKES HURRICANES CATASTROPHES DISASTER RELIEF PUBLIC POLICY SAVINGS CATASTROPHE REINSURANCE TSUNAMI RELIEF NATURAL DISASTER TRANSPORT FLOODS STATE GUARANTEES EXTERNALITIES NATURAL HAZARD EMERGENCIES NATURAL DISASTERS CRITERIA DEBT MARKETS PUBLIC FINANCE DISASTERS SOCIAL SECURITY LOANS ENTERPRISES DISASTER EVENT RESERVES FAMINE NATURAL RESOURCES FINANCE GRANTS INFRASTRUCTURE TAXES CONTINGENT LIABILITY REINSURANCE EQUITY GOVERNMENT LIABILITIES LEVEL‐PLAYING FIELD REGULATIONS EMERGENCY DISASTER REDUCTION DISASTER RISK CLIMATE CHANGE DROUGHT FINANCIAL STABILITY SOVEREIGN RISK PUBLIC POLICIES VALUE RISK EVALUATION LOSSES BANK EXTREME EVENTS COMMERCIAL DEBT CREDIT CLAIMS VICTIMS NATURAL CATASTROPHE DISASTER INSURANCE RELIEF OPERATIONS DISASTER MANAGEMENT BALANCE SHEET DEVASTATION FOOD‐AID RISK‐TRANSFER FLOOD URBAN DEVELOPMENT RISK TRANSFER PUBLIC DEBT INSURANCE SYSTEM INSURANCE LOSS AGENTS LAND LANDSLIDE RISK INSURANCE DISASTER AID HURRICANE RISK MITIGATION FINANCIAL MARKETS DISASTER RISKS EMERGENCY MANAGEMENT DISASTER RISK REDUCTION GOVERNMENT INSURANCE TAX ADMINISTRATION CONTINGENCY PLANNING REVENUE RISK MANAGEMENT LENDING INSURANCE COMPANIES RISK AVERSION EXTREME EVENT ADB GOVERNMENTS LIABILITIES RISK ASSESSMENTS GOVERNMENT LIABILITY LAND‐USE NATURAL HAZARDS RELIEF EFFORTS RISK ASSESSMENT RECONSTRUCTION RISK ANALYSIS INCOME GROUPS RISK‐ REDUCTION This paper addresses the question whether and how co-benefits, through disaster resilience building, can be further promoted. Co-benefits are defined as positive externalities that arise deliberately as a result of a joint strategy that pursues several objectives synergistically at the same time, such as disaster risk management and development goals, or disaster risk management and climate change adaptation. Of particular interest is the question of how the economic and broader benefits of disaster risk management can be recognized and realized by those in charge of fiscal policy decisions. The paper considers the interplay between public disaster risk management investment and fiscal policy, and provides an overview of the current debate as well as assessment methods, tools, and policy options. In fiscal budgeting, it has been standard practice to focus on direct liabilities and recurrent spending. Costs of disasters are often dealt with after the fact only, rather than being considered as contingent liabilities. As a consequence, the full costs of disasters have often not been budgeted for, and, with a price signal missing, there is lack of clear incentives for investing in disaster risk management. Overall, the paper identifies four steps and three dividends to be harnessed: (i) understanding fiscal risk; (ii) protecting public finance through risk financing instruments, the first dividend; (iii) managing disaster risk comprehensively, the second dividend; and (iv) pursuing a synergistic, co-benefits strategy of concurrently managing disaster risks and promoting development, the third dividend. 2016-05-04T17:45:51Z 2016-05-04T17:45:51Z 2016-04 Working Paper http://documents.worldbank.org/curated/en/2016/04/26213117/disaster-risk-management-fiscal-policy-narratives-tools-evidence-associated-assessing-fiscal-risk-building-resilience http://hdl.handle.net/10986/24209 English en_US Policy Research Working Paper;No. 7635 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |