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Global economic losses due to natural disasters are growing. Both direct and insured losses have increased at a faster rate than the number of events, revealing that the same hazard on average is causing larger damages. If disaster impacts are not anticipated and planned for, the diversion of scarce resources to relief and reconstruction efforts can have high opportunity costs in terms of economic development and welfare. Pro-active risk management entails the incorporation of loss mitigation and financing measures into development planning. Besides the macroeconomic effects on economic growth and development, disasters often place intractable burdens on poor households and small businesses. Who pays for catastrophic losses? Who owns the risk? These questions should be addressed by policymakers.

Financial Strategies for Reducing the Economic Impacts of Natural Disasters is part of the Comprehensive Natural Disaster Risk Management Program developed by the World Bank Institute with support from the WB Hazard Management Unit and ProVention Consortium. The course focuses on financial, macroeconomic and development impacts of disasters, trade-offs (costs and benefits) involved in disaster risk management, and offers strategies for reducing the impacts of natural disasters. The course offers financing strategies for risk management. The course provides policy makers and disaster managers with tools and institutional designs for improved planning and budgeting processes, and national macroeconomic projections. An important question posed in this course is: under what conditions is it advisable for the public authorities to insure roads, bridges and other infrastructure, and when should they rely on traditional post-disaster financing? In answering this question, the course compares alternative financing options for public-sector risks and examines their costs and benefits. Another core question is the extent to which public authorities do and should take financial responsibility for risks to households and businesses. In addressing this question, this course examines strategies for public-private national insurance programs.

Course Format

The course consists of self-paced modules, discussion forums, exercises, readings, case studies, tests and learning via interaction with program faculty and peers. Moreover, for each module there are 2 to 3 audio sessions of expert lectures for 40–45 minutes each. The Course materials shall be provided in a CD to each participant.

Course Expectations

Participants are expected to commit 8–10 hours per week in order to gain the most out of this course in addition to:

-  Complete the required reading assignments.
-  Participate in all online activities. Participation involves posting a minimum of two messages per week that are substantive in nature. The message can be either a new topic or a reply to someone else's message.
-  Participants are encouraged to post more often than twice a week in order to be involved more deeply into topics.
-  Participate in videoconferencing and asynchronous chat sessions (if applicable)
-  Complete assignments and end of course project
-  Complete course evaluation at the end of the course

Certificate

Joint certificate from NIDM and WBI shall be issued to all successful participants of the course.

Objective

The objective of this specialization course is to provide policymakers with tools for financial risk management for assets belonging to households, businesses and the public sector. On the macroeconomic level, it provides a methodology for assessing the risks to public infrastructure and the effects of natural disasters on economic growth.

Agenda

The course consists of presentations, case studies, readings and an end of course exercise. During the course, instructors and facilitators from National Institute of Disaster Management and the World Bank Institute will guide the participants and evaluate the project work.