Caribbean Disaster Risk Financing Technical Assistance

DRFTA
January 2019

The Caribbean Disaster Risk Financing Technical Assistance project helped Belize, Grenada, Jamaica and Saint Lucia to design cost-effective, tailored strategies that would help each country improve their fiscal resilience to disasters. The project delivered baseline information on historical losses and disaster-related government expenditures within the last 15 years, as well as Country Disaster Risk Profiles on earthquake and windstorm risk at the national level.

Gaps in sovereign fiscal protection against disasters and climate-related risk were analyzed in close cooperation with the Ministries of Finance of these countries. This entailed quantifying countries’ contingent liabilities to estimate the fiscal risk of natural disasters; reviewing their existing systems for public financial management of disasters and their legal frameworks for addressing shocks; and evaluating the domestic non-life insurance market in each market to determine their capacity to build strong financial sectors for public and private risk transfer.

These efforts led to a better understanding of exposed assets and fiscal risk. Based on the priorities and economic context in each of the countries, customized solutions were identified by the Ministries of Finance as key priority areas for improvement. Two such areas were the streamlining of reporting on post-disaster expenditures, and the establishment of contingency reserve funds.

Several knowledge products were published as part of these projects, which can be downloaded below:

  • Saint Lucia: the report Advancing Disaster Risk Financing is available here, the Roadmap for a Disaster Risk Financing Strategy is available here and the disaster risk profile here.
  • Belize: the report Advancing Disaster Risk Financing is available here, the Roadmap for a Disaster Risk Financing Strategy is available here and the disaster risk profile here.
  • Grenada: the report Advancing Disaster Risk Financing is available here, the Roadmap for a Disaster Risk Financing Strategy is available here and the disaster risk profile here.
  • Jamaica: the report Advancing Disaster Risk Financing is available here and the Roadmap for a Disaster Risk Financing Strategy is available here.