Transcript investment
1 Tracking DRR Investments from National Income accounts www.unisdr.org First Meeting in 2011 www.unisdr.org ISDR Asia Partnership (IAP), Jakarta, Indonesia Abhilash Panda, Regional Programme Officer, UNISDR 2 www.unisdr.org Background • The 2009 GP chair summary asked to invest at least 2% of GDP on DRR. • In 2010 4AMC declaration asked to increase GDP investment but also allocate 10% from humanitarian funds. • Why 2% ( why not x%?). What is the totality we are asking the govts to invest in? • How are governments investing now? 3 www.unisdr.org Challenges • Do we know how much is required? • What is DRR allocation? How do governments allocate? • what constitutes effective national and local investments ? • Lack or inadequate data on DRR investments mainly at sub-national, provincial and sectoral levels. • Inconsistency in definitions to track investments and expenditure on DRR • Tracking ‘implicit’ investments in DRR Types 4 Investments for Development 1. National Budget (Depending on Size of GDP) – Sectoral allocation for Social, Infrastructure, Productive and Cross-cutting 2. Official Development Assistance (ODA) South-South economic assistance –from Better-off developing countries (China – biggest aid donor to Cambodia; India to Bhutan…) 3. Workers’ remittances – from labour migrants ($169 billion in 2008) 4. Private Capital Inflows – FDI - $389 billion in 2008, Insurance.. 5. Development Aid, Innovative Source of Financing ..UNDAF, www.unisdr.org Investments for DRR I. ‘Stand-alone’ Sectoral DRR investments II. Vulnerability-reducing investments which may not be directly lebeled as DRR investments (Closely linked to investments in MDG sectors) III.Mainstreaming DRR in development 5 Bilateral investments www.unisdr.org Bilateral Investment on DRR in selected countries from Asia 2007-08 37,944,742 USD 2006-07 18,821,848 USD 2005-06 3, 160,457 USD 2004-05 41, 973 USD 6 Multilateral investments www.unisdr.org • Multilateral investment from 1998-2008: 138, 791, 489 USD (EC, UNDP, IFAD, ASDB) 7 Indicators - Aiddata • • • • • www.unisdr.org • • • • Disaster prevention and preparedness, activity unspecified (Will capture any generic disaster related aid which can not be classified into other categories. ) Institutional Consensus, awareness and Capacity Building (Will also include training provided and advocacy, technical courses, awareness campaigns ) Disaster risk assessment & monitoring Knowledge, Innovation and Education (Including research, training in schools, translating research into practice, knowledge sharing exercises) Disaster Risk Financing (Catastrophe risk financing, disaster insurance related aid) Strengthening Early Warning Systems (aid for strengthening early warning systems, national hydro meteorological systems etc. ) Protecting Critical Infrastructure (aid for strengthening schools, hospitals and public buildings) Response preparedness and sustainable recovery Macroeconomic Analysis (aid provided for economic analysis and research ) Is there a specific allocation of budget for DRR in the national budget? www.unisdr.org Country 8 Reported LAO PDR NIL Philippines Php5.0B (around USD 111 million) for National Disaster Risk Reduction and Management Fund 30 percent of which is reserved as Quick Response Fund PhP 1 Billion (around USD 22 million) Vietnam CBDRM Plan specifies that 988 billion VND (50 million USD) is required of which state budget will cover 55%, people’s contribution will cover 5% and ODA 40%. Sri Lanka Government has allocated DM Fund US$100,000 as the seed capital for the fund. 36 Million USD as loan for stand-alone DRR investment Bhutan 34 million (Nu.) % allocated from national budget 9 www.unisdr.org Pilots • Pilot : Indonesia & Philippines • Period: 01 May – 31 July • Focal points: NEDA ( Philippines), BAPPENAS (Indonesia) • Outcomes will be shared in the 2nd IAP 2011 (Will include the outcomes from the High-level plenary organized at the GP) 10 www.unisdr.org What the pilots will do A. Classify, measure and account the current investments: - Document existing financial mechanisms at the national, local and community levels, for the following: - allocating & tracking investments on DRR with regard to stand-alone (explicit) DRR investments ( for example early warning, preparedness, risk assessments etc) - mainstreamed (implicit/embedded) investment on risk reducing measures imbedded in infrastructure as well as investment measures related to development sectors such as transport, health, education and agriculture - Identify lessons learnt/good practice regarding what constitutes effective financing of disaster risk reduction at national– – current status and gaps in knowedge. 11 What the pilots will do - www.unisdr.org B. Recommend and develop for future: - Propose indicators adaptable to Planning and Finance to ensure effective DRR investments at national level - Recommend a framework for allocating & tracking both the types of investments (stand alone & embedded) 12 www.unisdr.org Longer term outcome: • Assist the governments in allocating/defining both the stand alone and implicit investments • Assist the governments in tracking reporting • Assist the Bilateral & Multilaterals to know what is being invested (prioritize) • COULD (possibly) help indicate the total requirement • Include in the MDG achievement/reporting process