BALI (INDONESIA), Oct 12, 2018 (BSS) – The World Bank Group, in partnership
with the governments of Germany and the United Kingdom, announced today a
US$145 million Global Risk Financing Facility (GRiF) to help vulnerable
countries manage the financial impact of climate change and natural hazard-
induced shocks.
The new facility was announced at the World Bank and IMF Annual Meetings in
Bali in the presence of senior representatives of the World Bank and the
governments of Germany and the United Kingdom, with support from
representatives of the Vulnerable 20 (V20) group of countries, said a World
Bank media release.
“Natural disasters push some 26 million people into poverty each year as
people struggle with the economic fallout of earthquakes, hurricanes, floods
and other catastrophes,” said World Bank CEO Kristalina Georgieva.
“We can’t stop all these terrible events, but we can help countries with
insurance or other risk finance so people get faster help to rebuild”, added
the official.
Over the next five years, the GRiF will provide financing to set up
mechanisms such as national disaster insurance programs that can help channel
money to people affected by disasters when they need it.
“This new Facility will help governments’ access risk financing and
insurance solutions to mobilize effective response and prepare better for
climate and disaster shocks”, said Germany’s Parliamentary State Secretary
Barthle. “It is key that the new facility focus on the poorest and most
vulnerable people.”
In 2017, disasters caused over $300 billion in losses globally – the second
highest annual figure ever recorded.
Governments of vulnerable countries bear the burden of these costs. The
poorest are not only more vulnerable and exposed to immediate impacts but
also face longer-term impacts on their development prospects.
“We have all seen the devastating impact of the recent earthquake in
Indonesia. Disasters are becoming more frequent and more extreme, leading to
the loss of life, homes and jobs, particularly among the world’s poorest
people. Through the World Bank’s Global Risk Financing Facility, UK aid is
supporting countries to build resilience and put in place finance and systems
to ensure they are better prepared to respond to emergencies. This will save
lives and also help vulnerable countries recover more quickly after
disasters,” said Secretary of State for the UK’s Department for International
Development, Penny Mordaunt.
The GRiF will also provide technical assistance to develop, test, scale
up, and improve on financial solutions.
The Centre for Global Disaster Protection in London, a partnership between
the UK and the World Bank Group, will provide specialist support in this
effort.
GRiF will directly contribute to the goals of the InsuResilience Global
Partnership, launched at COP23 in 2017, and will be a member of its Program
Alliance.
The GRiF is currently supported by the German Federal Ministry for Economic
Cooperation and Development (BMZ) as well as the UK Department for
International Development (DFID), and is jointly managed by the World Bank’s
Disaster Risk Financing and Insurance Program (DRFIP) and the Global Facility
for Disaster Reduction and Recovery (GFDRR).