REPUBLIKA.CO.ID, JAKARTA - Asian Development Bank (ADB) suggests regional governments to find ways to offer disaster risk financing instruments to strengthen disaster resilience since disaster losses have risen faster than Asia-Pacific's economy.
"Asia's economic gain is being eroded by disasters, often hitting the poorest trade. As the global region most vulnerable to climate change, we no longer have a choice but to focus on disaster risk management," ADB's Vice President for Knowledge Management and Sustainable Development, Bindu Lohani, said on Friday on the press release.
Disaster risk financing instruments can be in the form of calamity funds, tax credits and catastrophe bonds. ADB report says significant investments to strengthen disaster resilience can overcome a wide range of gaps and obstacles sit behind the existing trend of rising disaster losses, such as inadequate risk data, weak and misaligned incentives, poor legislative and regulatory frameworks and enforcement, disjointed government, limited funding and power disparities.
A wider ranger of disaster risk financing instruments is particularly crucial for Asia and Pacific, which ADB considered behind other regions in developing innovative financial solutions for disaster resilience. "Less than five percent of disaster losses in developing Asia are insured compared to 40 percent in developed countries," he said.
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