Drought is a normal part of climate in almost every country. It is a slow-onset, creeping phenomenon with serious economic, environmental, and social impacts, and affects more people than any other natural hazard. There is abundant evidence of the broad economic impacts of droughts: the Zimbabwe drought of the early 1990s was associated with an 11 percent decline in GDP, and the drought of 2000 in Brazil to a halving of projected economic growth. As articulated by a finance minister for India, "every one of my budgets was a gamble on rain."

Given the changes in weather patterns associated with global warming, planners in most countries should now assume that drought is normal. Recently developed best practices concentrate on lessening risk—through policies to reduce vulnerability, and through investments in preparedness and drought-mitigation planning. Investment in drought management brings benefits by reducing the associated economic, social, and environmental costs. Because the poor are especially vulnerable, drought preparedness is a crucial part of poverty reduction strategies.

Key Challenges
A risk-based management to droughts addresses the underlying causes of vulnerability rather than the symptoms. An obvious response to variation in rainfall patterns is to mitigate the effects by investing in water storage. A risk-based approach also emphasizes improved monitoring and early warning systems; development of strong decision-support systems; identification and implementation of mitigation actions; education and training of policy makers, natural resources managers, and the public; and drought mitigation plans that reduce the most serious impacts. A possible complement to these measures is offered by the development of financial weather-related risk-management instruments.

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World Bank Response
World Bank support for drought-mitigation planning, management, and development of appropriate policies will provide individuals and governments with the tools necessary to reduce societal vulnerability to droughts. The World Bank supports investments in dams and storage reservoirs when they emerge as the priority alternative from strategic planning processes for decisions concerning water and energy. Increasingly, emphasis is placed on multi-purpose benefits, investments that build cooperation across regional and international boundaries, and adaptability. The Bank continues to impose high levels of environmental and social safeguards, while contributing to the growth of knowledge and management capacity for sustainable infrastructure.

Niger: Creeping Desert

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