Two Proposals for Ambitious 2021 Reforms
Coping with Compound Shocks
Developing countries and small economies are facing the prospect of more frequent and devastating compound shocks, defined as multiple disruptive events including natural disasters, economic and financial crises, and pandemics striking simultaneously or in rapid sequence. In 2020, Bangladesh, Fiji, Honduras, India, the Philippines, Mexico, Nicaragua, and 11 countries in the Sahel faced combinations of the COVID-19 pandemic; economic shocks associated with the pandemic and measures to contain it; and extreme weather events, including drought, floods, and/or hurricanes, that were exacerbated by climate change.
Compound shocks are more devastating than isolated shocks, for several reasons. First, they stretch health care delivery, social safety nets, and disaster response systems too thin, making effective relief and response difficult or impossible. Second, they can leave reserve funds and public budgets dangerousl
Pacific countries strengthen disaster finance strategies
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Suva – Pacific island countries are seeking to broaden and strengthen their disaster risk financing strategies as a key element of addressing the ongoing Climate Emergency.
With climate change remaining the biggest threat – even in the era of a pandemic – there is a pressing need for countries to invest in financial protection measures to enable quicker and more effective response. It is an approach that represents an investment, not a cost, to save lives, protect livelihoods and reduce poverty in a time of escalating climate risk.
This stronger approach to risk management, based on greater financial resilience, was the theme of the third webinar of Pacific Resilience Partnership (PRP): ‘Expect the Unexpected: Saving for a Rainy Day.’