The number of deaths and economic losses from natural disasters increased dramatically in 2008. The death toll tripled to 225,800 from an annual average of 66,000 during the last eight years. Economic losses totaled US$190 billion, more than double the annual average of US$81 billion during the same period. Asia remained the most affected continent.
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Recurring disasters, to name just a few effects, erode the assets and livelihoods of the poor, increase school drop-out rates due to reduced family income, and prevent access to health care because of damages to vulnerable hospital facilities and interruption of health services. It is estimated that more than 3.4 billion people worldwide are at risk of at least one natural hazard; 770 million are threatened by more than one.
A World Bank–Columbia University study identified 86 disaster “hot spots,†countries that are prone to high human and economic losses from major hazards such as cyclones, earthquakes, floods, droughts, volcanoes, and landslides.  Moreover, the recently concluded Global Assessment Report on Disaster Risk Reduction concludes that disaster risk is increasing fastest in low- and lower-middle-income countries with rapidly growing economies; and that countries with small and vulnerable economies, such as Small Island Developing States (SIDS) and Land-locked Developing Countries (LLDs), are least resilient to the impact of disasters.
Economic losses are 20 times greater (as a percentage of GDP) in developing countries than in developed ones.
Natural disasters are expected to increase in frequency and severity as a result of climate change, population growth, rapid urbanization, and environmental degradation.
Developing countries are at highest risk because they lack the financial and material resources, including technologies and institutional capacity, to take the steps necessary to prevent or mitigate future risks and adapt to climate change.
Disasters can wipe out decades of development gains in a matter of seconds. Â Disaster risk reduction is as much a development issue as a humanitarian one.
Reducing disaster risks is an integral part of the fight against poverty. Sensible and cost effective risk reduction programs—such as early warning systems, strengthened building codes, and emergency preparedness strategies—are the best defense against future catastrophe.
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The Bank’s Expanding Role in Disaster Risk Reduction
The Bank has been involved in disaster recovery and reconstruction for more than 25 years. Natural disaster assistance accounted for 9.4 percent of total Bank commitments between 1984 and 2005. This share has been increasing steadily over the years. In the last four fiscal years alone, the Bank has approved US$9.2 billion for more than 215 disaster-related projects, including non-lending technical assistance.
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Addressing a clearly alarming trend in increased losses of lives and assets due to more frequent and severe natural disasters, the Bank has shifted its focus. Instead of merely responding to disasters, it is investing in disaster risk reduction, including mitigation and pre-disaster preparedness as an integral component of poverty reduction and sector strategies. In line with this shift, Bank policy for rapidly responding to crises and emergencies was revised in 2007 and the procedures streamlined, enabling a quicker response while integrating disaster risk reduction into the project design. Fifteen projects approved under the new policy reflect the Bank’s emphasis on integrating disaster risk reduction into development strategies in high-risk countries across sectors—for example, in the infrastructure, urban, health, and education sectors.
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Along with the United Nations (UN) and major donors, the Bank took a leading role in creating the Global Facility for Disaster Reduction and Recovery (GFDRR). Â Launched in September 2006, GFDRR provides technical and financial assistance to help disaster-prone countries decrease their vulnerability and adapt to climate change. GFDRR works closely with UN agencies, client governments, Bank regional offices, and other partners.Â
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In just more than three years, GFDRR has evolved into the leading global partnership for advancing disaster risk reduction through ex ante support to high-risk countries and ex post assistance for accelerated transition from relief to development after a disaster. Among the early results:
Two-thirds of the world’s least developed countries are improving their capacity for disaster risk management, emergency preparedness, and institution building more systematically with GFDRR technical and financial assistance.
Thirty of the most hazard-prone countries have developed a comprehensive disaster risk management framework to mainstream disaster risk reduction.
Every country affected by a major natural disaster in 2008 was able to recover more rapidly because of GFDRR support.
The Bank has made a long-term commitment to the GFDRR partnership to support enhanced global and regional cooperation on disaster risk reduction.
Governments are reducing their fiscal burdens when catastrophes strike through innovative new financing tools, such as catastrophe bonds, national agricultural schemes, and regional risk pooling.
A growing number of countries, such as Guyana, Haiti, India, Indonesia, Niger, Philippines, Rwanda, Togo, and Yemen have prioritized disaster risk management as a strategic element in their development strategies.
A growing number of countries are taking concrete steps to implement proactive disaster risk reduction strategies. For example, Madagascar is improving its building and infrastructure norms; Indonesia and Vietnam are implementing their Strategic National Action Plans for Disaster Risk Reduction; Lao PDR is improving its flood management systems; Haiti is making its schools and hospitals safer; Yemen is establishing an institutional and legal foundation for disaster risk reduction; and Cambodia is developing sector adaptation plans in transport, agriculture, education, health, and social affairs at the provincial level.
More countries are better prepared to conduct post disaster assessments as a result of GFDRR training programs in damage and loss assessment methodologies.
 New GFDRR initiatives include the South-South Cooperation Program, which is encouraging partnerships of southern governments and institutions to develop tailored and country-specific disaster risk reduction solutions, and the joint Bank-UN Assessment of the Economics of Disaster Risk Reduction, which will provide the first-ever comprehensive evaluation of the economic arguments for making disaster risk reduction a core component of sustainable development. Â
