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Seminar on Disaster Risk Finance – APEC Roadmap for Resilient Economies
Bacolod, Philippines29-30 April 2015
Implementing the ASEAN
DRFI Roadmap
Dr. Marqueza L. Reyes
ASEAN Technical Advisor for Disaster Risk Reduction
ASEAN Secretariat, Jakarta, Indonesia
APEC Workshop on Resilient Economies
28-30 April 2015, Bacolod City, Philippines
Low non-life
insurance
penetration
406,200 people
5.765km2
14.958M people
181,035km2
231.370M people
1,860,360km2
59.534M people
676,577km2
28.307M people
330,252km2
5.922M people
236,800km2
4.988M people
710km2
92.223M people
300,000 km2
86,024,600 people
331,051km2
66.903M people
513,120km2
LAO PDR
Connecting ASEAN for Disaster Readiness
Population: ~ 600 Million Population Growth: 1.3%
GDP (2013): 5.1% or ~2.4 trillion; GDP per capita: US$ 3,837
Annual Average Disaster Losses: ~ US$ 4.4 billion* (~0.2% of regional GDP)
* Source: Advancing Disaster Risk Financing and Insurance in ASEAN Countries, World Bank, GFDRR, ASEAN , and UNIISDR
ASEAN Risk Profile
ASEAN Agreement on DM and ER (AADMER)
Signed in July 2005, ratified by all ten countries in ASEAN, entered into force on 24 December 2009
Objective: Reduce disaster losses in ASEAN region, and jointly respond to disaster emergencies
ASEAN Coordinating Centre for Humanitarian Assistance (AHA Centre) as the operational coordination body and engine of AADMER
A legal framework for all ASEAN Member States and serves as a common platform in responding to disasters within ASEAN
DRFI within the DRM Framework
Source: World Bank
AADMER Work Programme 2010- 2015
Risk Assessment, Monitoring andEarly Warning
Preventionand Mitigation
Preparedness andResponse
Recovery
Resource Mobilisation
Institutionalisation of AADMER
Partnerships
STRATEGICCOMPONENTS
BUILDING BLOCKS
Information Management and Comm. Tech.
Outreach and Mainstreaming
Training and Knowledge Management
Monitoring and Evaluation
Introduction and Guiding Principles
ASEAN
responds
ASEAN Responds ASEAN has responded to recent disasters by directly
providing relief, activating the regional stockpile,
facilitating regional standby arrangements and
mobilising resources among Member States for
humanitarian assistance and disaster relief (HADR).
• M=7.7 Mentawai Earthquake, Indonesia, Oct 2010
• M=6.8 Shwebo Earthquake, Myanmar, Nov 2012
• Typhoon Pablo (Bopha), Philippines in Dec 2012
• Typhoon Yolanda (Haiyan), Philippines, Nov 2013
• Typhoon Hagupit (Ruby), Philippines, Dec 2014
• Flooding in Malaysia, January 2015
AHA Centre • Established in Nov 2011
• Located in Jakarta, Indonesia
• Operational coordination engine of
AADMER
• Identifies risks, tracks hazards and
monitors hazards and disasters
• Informs and updates AMS
• Trains and mobilises Emergency
Response and Assessment Team
(ERAT)
• Manages a regional stockpile in
Subang, Malaysia
• Conducts ARDEX
• Capacitates NDMOs, e.g. ACE
Programme
• 22 Nov 2013, Tacloban City – ASEAN Sec. Gen. Le Luong
Minh as ASEAN Humanitarian Assistance Coordinator
committed to support the Philippines in HADR and long-term
recovery and rehabilitation.
ASEAN Responds to Haiyan
ASEAN Engages in Post-Haiyan Recovery
• ASEAN Secretary General wears his hat as ASEAN
Humanitarian Assistance Coordinator
• Organized a regional conference to drum up
international support as needs shifted from response
and relief to longer term recovery and rehabilitation.
• Continue support in recovery phase – Adopt-a-
Municipality for Resilient Recovery
• Signals the growing role of ASEAN in the humanitarian
landscape
• Alongside this is the increasing number of HADR
mechanisms in ASEAN and evolving regional
architecture of disaster management and humanitarian
assistance.
Individual AMS Disaster Financing Measures
• Annual budgetary provision for disaster relief and
response
• Post-disaster reallocation of budget
• Realignment of investment priorities
• Government borrowing – post-disaster reconstruction
loans
• International humanitarian assistance
• Private individual donations
• Reserve funds
• Ex-Ante contingent credit, e.g. Philippines’ CatDDO
ASEAN Roadmap for DRFI
Adopted in November 2011 during the ASEAN DRFI Forum by 3 sectoral bodies: ACDM, AFDM and AIRM.
Finance Ministers endorsed on 4 April 2013 the establishment of the ASEAN Cross-Sectoral Coordination Committee on DRFI, a breakthrough.
ASEAN Roadmap for DRFI
Regional Level
• Develop disaster risk information and modeling systems including sharing of disaster risk data and information at the national level.
• Establish an inter-sectoral mechanism on DRFI within ASEAN. •Strengthen regional cooperation on DRFI:• Regional capacity building activities, e.g. information and education, sharing of experiences.• Explore to establish in collaboration with
the private sector a learning centre on DRFI
• Build linkages with other learning institutions including AHA Centre for knowledge sharing
Regional Level
• Explore the possibility of a regional vehicle to facilitate access to international reinsurance and capital markets based on various studies
• Support and collaborate with the ASEAN insurance officials to explore options and mechanisms for a regional framework on DRM.
• Determine other preconditions for strengthening regional cooperation on DRFI
ASEAN Roadmap for DRFI
National Level• Develop disaster risk financing and insurance strategies at the
national and local levels
• Develop a national disaster risk financing program
• Explore the establishment of a National Disaster Fund
• Promote catastrophe risk insurance as part of the disaster risk reduction strategy
• Integrate financial inclusion strategies into the disaster risk management agenda of the country
Implementing the Roadmap: ASEAN DRFI
Programme Phase 1 (2015-2016)
• Establish a regional disaster risk information management system
Capacity building on risk information,
assessment and modelling
• Review and reform of policies, strategies, and programmes related to disaster financing
• Integrating risk financing and risk transfer in national policies and plans
Capacity building on public policy
development
• Sharing of experience and knowledge on DRFI, including fiscal risk management• Cooperation with private sector, IOs, etc. institutions on DRFI training