Disaster Risk Financing in Bangladesh

Bangladesh is disaster-prone, with floods and cyclones being the most frequent and severe danger. Applying appropriate disaster risk financing is key to minimizing economic impacts from disasters and sustain the country’s development.

From 2000 to 2013, natural disasters caused more than $10 billion in economic losses in Bangladesh. However, the available funding for relief, rehabilitation, and reconstruction for the same period was only $2 billion, or $8 billion in unfunded losses. This funding gap is partly attributed to insufficient financial preparedness in disaster risk management. The limited post-disaster funding negatively affected the economy in terms of lowered economic growth and increased poverty. Applying appropriate disaster risk financing is key to minimizing economic impacts from disasters and sustain the country’s development.