GFDRR 105d ago

Pacific countries are some of the most hazard-exposed in the world. Located at the confluence of the Ring of Fire and the Pacific Cyclone Belt, countries in the region are highly vulnerable to tropical cyclones, earthquakes, volcanic activity, tsunami, storm surges, king tides, and seasonal droughts. In 2018, the team introduced the hybrid Development Policy Operation (DPO) with a Catastrophe Deferred Drawdown Option (Cat DDO), designed for small countries with limited capacity that are highly exposed to natural hazards – precisely the situation of many Pacific countries. Implemented so far in Fiji, Samoa, Tonga, and Tuvalu (a standalone Cat-DDO is active in Vanuatu), the DPO/Cat DDO instrument offers governments both financial support for development (the DPO) and immediate liquidity in the event of an eligible catastrophic event (the Cat DDO), while also incentivizing key policy reforms that will enhance countries’ resilience. The session will cover lessons learned and operational good practices on how the hybrid instrument has been a novel way for the Bank to improve institutional, physical, and financial resilience to disasters and climate change. ABOUT THE GLOBAL FACILITY FOR DISASTER REDUCTION AND RECOVERY (GFDRR) is a global partnership that helps low- and lower-middle-income countries better understand and reduce their vulnerabilities to natural hazards and adapt to climate change. GFDRR provides grant financing, technical assistance, training and knowledge sharing activities to mainstream disaster and climate risk management in national and regional policies, strategies, and investment plans. The Program Management Unit, located within the World Bank, manages grant resources to carry out GFDRR’s mission. http://www.gfdrr.org ABOUT THE WORLD BANK GROUP 🌐 The World Bank Group is one of the world’s largest sources of funding and knowledge for low-income countries. Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development. http://www.worldbank.org