Back to IEG Evaluation of World Bank Assistance for Natural Disasters For a printer-friendly table, please download PDF version

What are other IFIs doing on natural disasters?

The following table summarizes what other international financial institutions are doing with regards to natural disasters (as of 09/21/2005). The table is organized by types of engagement, click the appropriate tab to view a comparison between IFI's on a particular area.


(Clicked on tabs below to view sections of the table)
1. Organization 2. Policy 3. Projects 4. Instruments 5. Funding 6. Preparation / Mitigation
 

Organization

ADB
(www.adb.org)

IDB
(www.iadb.org)

UNDP
(www.undp.org)

World Bank
(www.worldbank.org)

EBRD
(www.ebrd.org)

AfDB
(www.afdb.org)

Do they have a disaster unit?

Planned

Yes

Yes

No

No

No

What is their organizational structure for disaster issues?(1)

A Disaster Unit is planned, and ADB is currently recruiting.

Decentralized network of DRM Focal Points.

IDB has 36 disaster risk management focal points: 26 in the country offices and 10 in headquarters (2 in central department -SDS-; 1 in each of the three environment divisions of the operational departments; 1 in each of the Finance/Infrastructure divisions of the 3 operational departments; 2 in the country divisions). The center focal point provides training, facilitates regional dialogue, and provides support.

The Sector Facility for Disaster Prevention(March 2001). Mainstreams instruments such as the project preparation checklists, and indicators. They also conduct other training on risk management to staff, and provide special briefings for executive directors on instruments for disaster risk mitigation.

The Bureau for Crisis Prevention and Recovery (BCPR) Disaster Reduction Unit (DRU)

helps UNDP country offices set up and provide more effective response for natural disaster reduction.

The DRU is made up of seven Geneva-based professionals and 20-24 National Disaster Reduction Advisors, and four Regional Disaster Reduction Advisors ( Bangkok, Nairobi, New Delhi, Panama).

The DRU hosts the Secretariat of theUnited Nations Disaster Management Training Program.

The World Bank has a Hazard Management Thematic Group within the Bank.

There was a Hazard Management Unit with one disaster specialist and one information specialist until 2005.

EBRD works primarily in loans to the private sector. Where projects face disaster risk, insurance is a condition.

AfDB has funded a number of 6-month long relief operations, however.




Footnote:
1. Bilaterals, such as DFID and USAID, also had disaster units. DFID has a team of seven experts, with a Humanitarian Response and Risk Reduction team leader. In addition, six institutional partnership staff spend part of their time focusing on natural disasters. There is also the Operations Team comprised of 24 Crown Agent staff that are contracted to provide humanitarian expertise such as needs assessment and appropriate responses. They have an operational capacity, as well, and thus can be deployed in the aftermath of a disaster to provide on the ground assessment and also to support United Nations agencies (included are finance, logistics and support staff). USAID’s Office of Foreign Disaster Assistance (OFDA) employs approximately 25 disaster professionals in their regional teams, 11 in the technical assistance group, and 7 in the evaluation and planning team.

 

Organization

ADB
(www.adb.org)

IDB
(www.iadb.org)

UNDP
(www.undp.org)

World Bank
(www.worldbank.org)

EBRD
(www.ebrd.org)

AfDB
(www.afdb.org)

Do they have a policy that covers natural disasters?

Yes

“Rehabilitation after Disasters”
(OM Section 25
)

Emergency Rehabilitation Assistance Loan for Small Developing Member Countries (DMCs),
(OM Section 24, June 1998)

“Disaster and Emergency Assistance” (OM Section D7/BP, June 2004)

Yes

March 1999:
“Natural and Unexpected Disasters”
(IDB Operational Policy 704)
  (2)

A “Plan of Action” was created in March 2000 to put the “Natural and Unexpected Disasters” policy into motion. A new financing mechanism, the “Sector Facility for Natural Disaster Prevention,” (see below) was created a year later.

Gn-2339, the Bank Action Plan for Improving Disaster Risk Management 2005-08

New IDB-wide action plan published in March 2005. This action plan includes dedicated DRM activities for 2005-2008 with trust fund support.

Yes

At the 52 nd session of the UN General Assembly, UNDP was given a mandate to act as the focal point for disaster risk reduction. Guidance is given in the form of strategy notes and tools.

 

 

Yes

OP/BP 8.50 “Emergency Recovery Assistance”

Currently undergoing revisions.

No

Yes

The Bank Group Emergency Assistance Policy Guidelines,

The Special Relief Fund General Regulations (“SRF”).




Footnote:
2. This policy is in force, but IDB is currently developing a new disaster risk management policy, which emphasizes risk management capacity building, and calls for the mainstreaming of risk analysis and management in IDB’s lending operations. The policy encompasses activities that take place before, during and after an emergency occurs.


Organization

ADB
(www.adb.org)

IDB
(www.iadb.org)

UNDP
(www.undp.org)

World Bank
(www.worldbank.org)

EBRD
(www.ebrd.org)

AfDB
(www.afdb.org)

Do they implement natural disaster projects?

Yes

Yes

Yes

Yes

No(3)

Yes




Footnote:
3. Some of EBRD’s projects have been affected by natural disasters, but none are disaster projects, per se.


Organization

ADB
(www.adb.org)

IDB
(www.iadb.org)

UNDP
(www.undp.org)

World Bank
(www.worldbank.org)

EBRD
(www.ebrd.org)

AfDB
(www.afdb.org)

Do they have specialized instruments or
lending/grant tools?

Yes

Analytical instruments:
--
Risk and Vulnerability Assessment

-- Watching Brief

--Damage and Needs Assessment

Assistance instruments:

--Portfolio Restructuring and Use of Loan Savings

--Emergency Assistance Loans (EALs)

--
Normal lending.

--Technical Assistance for disaster and emergency.

Yes,

Emergency Reconstruction Facility (ERF)(4) Created in November 1998, this standalone immediate response facility (PR 806) is a financing window directed at improving the IDB’s response time to natural disasters. The unit operates under a set of streamlined eligibility and approval procedures and can enable resources to reach the country in need within the first few weeks after the disaster.(5)

Emergency loans with flexible requirements for counterpart funding from the borrower (unlike their regular loans). National, provincial, state and municipal governments and autonomous public institutions are eligible to borrow from the IDB for disasters.

Yes

UNDP provides: --access to TRAC 1.1.3 sudden response funds to the UN Resident Coordinator in the event of major natural disasters.

--Technical assistance to carry out impact assessments and to design sustainable recovery and vulnerability reduction frameworks and programs.

 

 

 

Yes

Emergency Recovery Loans (ERLs)

Loan Reallocations

Regular lending

Technical assistance

Damage assessment

Risk assessment

No

Yes

Emergency Assistance Grants from the Special Relief Fund




Footnotes:
4. (also referred to as the “Immediate Response Facility for Emergencies Caused by Natural and Unexpected Disasters”)
5. With the approval of the Executive Board, the President can approve a loan of up to $100 million if it meets the eligibility criteria. Otherwise, the maximum amount for an individual loan through the ERF is $20 million. The ERF provides for an investment loan with a fixed positive list of 10 items for recovery that do not require complex or long-term decisions (e.g., rubble clearance). Must disburse in 9 months, or all remaining will be cancelled in 12 months. This avoids wrapping immediate needs with other goals that require careful planning and more time.

Organization

ADB
(www.adb.org)

IDB
(www.iadb.org)

UNDP
(www.undp.org)

World Bank
(www.worldbank.org)

EBRD
(www.ebrd.org)

AfDB
(www.afdb.org)

Do they fund relief projects?

No

No

Yes(6)

No

No

Yes

Do they fund reconstruction?

Yes

Yes

Yes

Yes

No

No

Do they reallocate existing funding to respond to natural disasters?

Yes

Portfolio restructuring and use of loan savings is included as part of the initial damage and needs assessment

“…In special cases with particularly urgent rehabilitation needs, ADB may reallocate outstanding loan proceeds for rehabilitation purposes …However, this option will not be detrimental to normal lending operations in the country and will be consistent with the government’s priorities given the emergency.”

Yes

Not executed by operational staff. Rather, it is decided at the institutional level, and if the objectives are altered, the project has to go again for approval. The original objectives are preserved as much as possible.

Need to consider opportunity costs. How the reorienting is done is critical. For example, in El Salvador, all of the sectors were affected by the twin earthquakes, and reorienting the country’s portfolio made sense, given that the entire portfolio was affected.

Yes

Yes

The World Bank’s Operational Manual considers a “major” re-allocation one that reallocates over 5 percent of the loan or requires major changes in project description. Among 152 projects for which reallocated amounts could be identified, all but five were major reallocations that exceeded the 5 percent threshold. For more information, see Chapter 2 of this report.

No

No




Footnote:
6. The UNDP “picks up where humanitarian relief leaves off” and supports early recovery initiatives by building in mitigation and preparedness measures in the rebuilding process.

Organization

ADB
(www.adb.org)

IDB
(www.iadb.org)

UNDP
(www.undp.org)

World Bank
(www.worldbank.org)

EBRD
(www.ebrd.org)

AfDB
(www.afdb.org)

Do they invest in prevention, preparedness, and/or mitigation?

Yes

Yes

Established a natural disaster network. First phase of a study on national systems and institutional mechanisms for the comprehensive management of disaster risk completed. Second phase will concentrate on Bolivia, Colombia, the Dominican Republic and El Salvador.

Yes

Early recovery initiatives, building mitigation and preparedness measures into the rebuilding process.

Mainstreaming crisis prevention into its work using policy dialogue, staff training and knowledge networking.

Mainstreaming disaster reduction into development policy, strategies, plans and programs

Yes

Number of mitigation activities in projects has grown, with a shift from structural measures, which are still important, to non-structural measures such as institution building for hazard management policy changes, the preparation of hazard management plans, land use plans, enforcement of building codes, and insurance.

No

No