Strengthening decision-making for risk-informed development: Lessons learnt from climate resilient economic development
This paper discusses why we need to be more risk-informed and how we can become more risk-informed in international cooperation. We are facing increasingly complex, interconnected, and unpredictable risks — jeopardizing people, communities, infrastructure, and societies worldwide. If current trends continue apace, the number of disasters will increase by about 40% until 2030. Despite international commitments to foster resilience, current development choices fall short of changing the way we manage risks.
The results from macroeconomic models make the business case for adaptation measures: they go beyond sectoral cost-benefit analyses by showing how the economy as a whole as well as specific sectors benefit in the mid- to long-term from such investments. Partners can then utilize this information to mobilize resources for adaptation not only within their country, but also from international climate finance. Macroeconomic modelling can be used as an effective instrument for advancing capacities, risk awareness and knowledge in partner countries for more risk-in formed decision-making: understanding both the economic implications of the risks faced today and in the future as well as the benefits of different measures to reduce, prevent and manage various types of risks and identify potential benefits and trade-o
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