Planning and Disaster Risk Reduction in Latin America

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1 Planning and Disaster Risk Reduction in Latin America Omar D. Bello, Ph.D. Economic Affairs Officer Disaster Risk Reduction and Response Unit ECLAC Subregional Headquarters for the Caribbean Disaster assessment methodology Bangkok February 18, 2015

2 1. Data on disasters in Latin America and the Caribbean (LAC) 2. Background of planning and disaster risk reduction in LAC 3. The case of Costa Rica 4. The case of Guatemala 5. The case of Peru 6. Stilysed facts of Damage and Losses Assessments and the relationship to ex-ante planning

3 Number of Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

4 Central America: Deaths due to Weather Related Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

5 The Caribbean: Deaths due to Weather Related Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

6 South America: Deaths due to Weather Related Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

7 Central America: Deaths related to a geophysical Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

8 The Caribbean: Deaths related to a geophysical Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

9 South America: Deaths related to a geophysical Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

10 Central America: Affected population due to a Weather Related Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

11 The Caribbean: Affected population due to a Weather Related Disasters Caribe: Número total de afectados por desastres climáticos Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

12 South America: Affected population due to a Weather Related Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

13 Central America: Affected population due to a Geophysical Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

14 The Caribbean: Affected population due to Geophysical Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

15 South America: Affected population due to Geophysical Disasters Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

16 Central America: Damage/GDP for Weather Related Disasters 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

17 The Caribbean: Damage/GDP for Weather Related Disasters 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

18 South America: Damage/GDP for Weather Related Disasters 0.4% 0.3% 0.3% 0.2% 0.2% 0.1% 0.1% 0.0% Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

19 Central America: Damage/GDP due to Geophysical Disasters 0.3% 0.3% 0.2% 0.2% 0.1% 0.1% 0.0% Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

20 The Caribbean: Damage/GDP due to Geophysical Disasters 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

21 South America: Damage/GDP due to Geophysical Disasters 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

22 World Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

23 Latin America and the Caribbean Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

24 Deaths per Thousand Inhabitants Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

25 Affected Population per Thousand of Inhabitants Source: EM-DAT, OFDS/CRED. Catholic University of Lovaine

26 Latin America and the Caribbean 0.40% a) a un shock en tormentas 0.40% b) a un shock en otros desastres climáticos 0.20% 0.20% 0.00% -0.20% % -0.20% % -0.40% -0.60% -0.60% 0.40% c) a un shock en desastre geológico 2.00% d) a un shock en el PIB de los países de ingresos altos 0.20% 1.50% 0.00% -0.20% -0.40% % 0.50% 0.00% -0.50% % 0.80% 0.60% 0.40% 0.20% 0.00% -0.20% e) a un shock en los términos de intercambio % 0.00% -0.20% -0.40% -0.60% f) a un shock en la tasa de interés internacional

27 The Caribbean 0.50% a) a un shock en tormentas 0.20% b) a un shock en otros desastres climáticos 0.00% -0.50% % -0.20% % -0.40% -1.50% -0.60% 0.60% 0.40% 0.20% 0.00% -0.20% -0.40% -0.60% c) a un shock en desastre geológico % 1.00% 0.00% -1.00% -2.00% d) a un shock en el PIB de los países de ingresos altos % e) a un shock en los términos de intercambio 1.00% f) a un shock en la tasa de interés internacional 1.00% 0.50% 0.50% 0.00% -0.50% % -0.50% -1.00%

28 Central America 1.00% 0.50% a) a un shock en tormentas 0.70% b) a un shock en otros desastres climáticos 0.00% -0.50% -1.00% % -0.30% % -0.80% 0.80% 0.60% 0.40% 0.20% 0.00% -0.20% -0.40% c) a un shock en desastre geológico % 1.50% 1.00% 0.50% 0.00% d) a un shock en el PIB de los países de ingresos altos e) a un shock en los términos de intercambio f) a un shock en la tasa de interés internacional 0.80% 0.60% 0.40% 0.20% 0.00% -0.20% -0.40% % 0.00% -0.50% -1.00%

29 The need to improve urban and rural infrastructure, and the development of sectoral plans and infrastructure, especially transport and energy, in the 1950s and early 1960s marked the beginning of the planning process in Latin America, which was formalized creating planning economic entities in order to strengthen the operational capacity of the public administration. Creation of public enterprises. increased. The size of the central government

30 Goal: economic growth (at that time it was equivalent to economic development) Economic growth does not necessarily reduce volatility to natural hazards Economic growth normally creates new forms of vulnerability or exacerbate existing ones There was no attention to disaster risk reduction topic. The decline of this model is associated with the external debt crisis (1982)

31 Policies on disaster have being reactive Milestones related to the issue of disasters and public policy: Mexico City earthquake, Mexico (1985) Armero, Colombia (1986) Mitch (1998), several Central America countries After those disasters started in those countries a process to generate institution that deal with disasters At the beginning it was focus on disaster management: response to emergencies, and early warnings

32 LAC: Deadliest Disasters Year Country Type Deaths Aff. Population 1970 PER Earthquake 66,794 3,216, NIC Earthquake 10, , HND Mudslide 2, HND Storm 8, , BRA Epidemic 1,500 30, GTM Earthquake 23,000 4,993, DOM Storm 1,400 1,554, COL Volcanic eruption 21,800 12, MEX Earthquake 9,500 2,130, ECU Earthquake 5, ,000

33 LAC: Deadliest Disasters Year Country Type Deaths Aff. Population 1991 PER Epidemic 8, PER Epidemic 1, , HND Storm 14,600 2,112, NIC Storm 3, , VEN Floods 30, , HTI Storm 2, , HTI Floods 2,665 31, GTM Storm 1, , HTI Earthquake 222,570 3,700, HTI Epidemic 5, ,638

34 1. Knowledge of disaster risk 2. Risk Reduction Prevention Mitigation 3. Disaster Management Preparedness Response 4. Rehabilitation Disaster assessment Rebuilding Financial Protection

35 The prospective risk management comprises the set of actions to prevent the formation of new conditions of risk, which may arise with the development of new investments and projects in the territory to disregard location criteria, construction and safe operation. The implementation of this approach has being relatively new in Latin America Integrating disaster risk reduction measures/ policies within national public policies could help to achieve sustainable development. This could be more important on a climate change context. The expected impacts of those policies would be Preserving achieved poverty reduction Strenghting hazard resilience.

36 Costa Rica

37 Established in 1969 Ascribed to the Presidency of the Republic 2006: National Emergencies and Risk Prevention Act (N 8488) Introduces the concept of risk prevention Regulates the State s extraordinary activities in an emergency Empowers the CNE to coordinate the National Risk Management System

38 Promote integrated, organized and harmonic coordination between structures, methods, procedures and resources of all state institutions, including participation from the private sector and civil society. Promote and implement public policy guidelines, which incorporate the concept of risk management as a cross- cutting element in planning and development.

39 National risk management policy Commitment incorporated in the National Development Plan (PND) Strategic pillar: Social development and fight against poverty Instrument of strategic planning International commitments (Hyogo Framework for Action)

40 1. Poverty alleviation and increased resilience 2. Regulatory mechanisms and instruments for risk management 3. Investment in and development of public infrastructure 4. Participation for local risk management 5. Development and dissemination of knowledge and use of pertinent technologies 6. Preparedness and response to emergencies and disasters 7. Recovery and reconstruction

41 Established in 2008 (Executive Decree MIDEPLAN- Hacienda). Incorporation of disaster risk reduction (DRR) in the formulation and evaluation of investment projects. Reduce the impact of disasters on the fiscal deficit GDP: average loss of 0.83% between 2005 and 2009 Supported by CEPREDENAC Bank of Public Investment Projects (BPIP)

42 Prospective study: threat, exposure and vulnerability Objective: incorporate disaster risk reduction analyses and alternatives in the pre- investment stages (profile, prefeasibility, feasibility and design) as part of the cost and benefit estimations

43 Threats Site Exposu re Fragilit y Mitigation & Preventio n Identify vulnerability Quantify damages and losses Risk reduction measures Mitigation and prevention costs and benefits

44 Database of public investment projects Support planning, programming, budgeting, monitoring, control and evaluation of public investments Basic information: Linkages with the National Development Plan Objectives, description Expected outcomes Financing Risk analysis Environmental analysis Financial and/ or socioeconomic indicators

45 Central Bank Ministry of Finance Final approval Negotiation process Register in the BPIP

46 Guatemala

47 : the National Pre- investment Financing System (SINAFIP) managed financing lines (IDB) 1990s: set the foundations for the National Public Investment System: Creation of a fund to finance studies and designs Importance of elaborating public investments programs Project database

48 Presidential Secretariat for Planning and Programming (SEGEPLAN): coordinates and prioritizes public investment SEGEPLAN + Ministry of Finance: determine the national policy to formulate, prioritize, evaluate and select investment projects, and sources of financing

49 Guidelines Public Investment Directorate Updates and issues annual guidelines Establishes annual priorities Establishes information requirements and procedures Incorporation of a technical evaluation of the projects (2001) Incorporation of natural, economic and social risk analyses (threats and vulnerabilities) as an additional criterion (2010)

50 Next steps Draft bill to strengthen and institutionalize the National Public Investment System Organize and unify guidelines Prioritize economically and socially feasible projects Support descentralization Increase public participation

51 CEPREDENAC

52 Pertaining to the Central American Integration System Mandate: promote activities, projects and programs intended to reduce disaster risks that could cause human and economic losses due to socio- natural factors Promotes and coordinates international cooperation and exchanges of information and expertise Provides technical and scientific assistance

53 Regional Instruments 1999: Strategic Framework for the Reduction of Vulnerabilities and Disasters in Central America Immediate antecedent: Hurricane Mitch Regional Plan for the Reduction of Disasters : Comprehensive Risk Management Regional Policy for Central America

54 Perú

55 1990s Weakening of the housing institutionalism Disorganized urban sprawl Rural- urban migration Weak urban planning 2000s National Plan for Urban Development National Housing Plan National Sanitation Plan Ecological- Economic Zoning Models Construction Code Other relevant regulations Strengthening of the national planning system

56 Database of public investment projects Support planning, programming, budgeting, monitoring, control and evaluation of public investments Basic information: Linkages with the National Development Plan Objectives, description Expected outcomes Financing Risk analysis Environmental analysis Financial and/ or socioeconomic indicators

57 Established in 2000 Coordinated by the Ministry of Finance It was modified in 2002 Incorporation of risk in development planning Promotion of sustainability Creation of the Multisectoral Commission for the Prevention and Attention of Disasters

58 Follow and comply the established guidelines Incorporate specific structural and non- structural measures to prevent and mitigate disaster risks To be declared viable, projects must be: Socially viable Sustainable Compatible with policy guidelines (national, sectoral and local)

59 Identification Phase Analysis of hazardous scenarios Technical analysis Site analysis Analysis of construction and operation technologies Exposure analysis Analysis of factors that could create fragility Analysis of the response capacity Organization and management Analysis of the response capacity and service recovery Resilience

60 1. Knowledge of disaster risk 2. Risk Reduction Prevention Mitigation 3. Disaster Management Preparedness Response 4. Rehabilitation Disaster assessment Rebuilding Financial Protection

61 Indicators by the Inter American Development Bank 4 indexes of dissater risk management were developed by the Institute of Environmental Studies of the National University of Colombia, Manizales. The Project was funded by the IADB. These indexes are: a) Disaster Deficit Index b) Local Disaster Index c) Prevalent Vulnerability Index d) Risk Management index

62 This system of indicators has a set of desirable features such as a) they summarizes the presentation of information on risk b) measure key elements of vulnerability c) easy to understand by policymakers, and d) allow cluster and comparison among countries. They cover different aspects of the risk problematic and takes into account aspects such as: potential damage and loss due to the probability of extreme events, recurrent disasters or losses, socio-environmental conditions that facilitate disasters, capacity for macroeconomic recovery, behaviour of key services, institutional capacity and the effectiveness of basic risk management instruments such as risk dentification, prevention and mitigation measures, financial mechanisms and risk transfer,emergency response levels and preparedness and recovery capacity

63 DALA methodology will be used as one of the indicators of goal 1 of the SDG Past DALAs could be used to determine stilysed facts about the damage and losses estimate profile by sector. It would be an important input for any planning process. Hurricanes & Storms Extreme precipitations The Caribbean: Different disasters (%) Social Infrastructure Productive Geophysical

64 Hurricanes & Storms The Caribbean: Different disasters Extreme precipitations (%) Social Infrastructure Productive Geophysical

65 20% 52% 28% Productivo Infraestructura Social

66 10% 9% 24% 57% Vivienda Edificios públicos Salud Educación

67 8% 7% 85% Transporte Energía Agua y Saneamiento

68 10% 10% 80% Agropecuario y Forestal Industria Comercio y Servicios

69 13% 16% 71% Productivo Infraestructura Social

70 8% 32% 60% Vivienda Salud Educación

71 15% 21% 64% Transporte Energía Agua y Saneamiento

72 9% 21% 70% Agropecuario y Forestal Industria Comercio y Servicios

73 Planning and Disaster Risk Reduction in Latin America Omar D. Bello, Ph.D. Economic Affairs Officer Disaster Risk Reduction and Response Unit ECLAC Subregional Headquarters for the Caribbean Disaster assessment methodology Bangkok February 18, 2015

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