2018年-世界发展银行全球_Advancing_Disaster_Risk_Finance_in_Saint_Lucia_52页_1mb

Summary of "Advancing Disaster Risk Finance in Saint Lucia"

Core Content

This report provides recommendations for the Government of Saint Lucia (GoSL) to develop a comprehensive disaster risk finance (DRF) strategy, based on an assessment of the legislative, financial management, fiscal, and insurance market environment in the country. The goal is to improve the GoSL's capacity to respond to natural disasters in a timely and cost-effective manner, while safeguarding its fiscal balance and minimizing the impact on public debt.

Main Objectives

• To formulate a country-specific DRF strategy that aligns with Saint Lucia's disaster risk profile.
• To enhance the GoSL's ability to manage contingent liabilities from natural disasters.
• To integrate disaster risk management into development and investment planning.

Key Findings

• Saint Lucia faces significant fiscal risks due to natural disasters, particularly hurricanes and floods.
• The average annual loss from these disasters is approximately USD 15.8 million (EC$ 42.7 million), which is 1.10% of the 2015 GDP and 3.76% of total expenditure.
• The GoSL currently lacks an effective system for tracking and managing disaster-related expenditures, which hinders its ability to respond quickly and efficiently.
• Existing instruments for disaster risk financing are not optimized to address the full spectrum of disaster risk in Saint Lucia, especially for low- and medium-severity events.

Main Views and Recommendations

1. Public Financial Management (PFM) of Disaster Risk

• The current PFM system does not support rapid disbursement of funds for disaster response or effective tracking of expenditures.
• The GoSL has a Consolidated Fund that supports NEMO with an imprest account of USD 100,000 (EC$ 270,000), but lacks a direct budget appropriation mechanism for disaster response.
• Recommendations include:
  • Streamlining and institutionalizing a damage and loss data collection and reporting system across ministries.
  • Integrating explicit contingent liabilities into the budget planning process.
  • Revising the Chart of Accounts (CoA) to include specific Detailed Object Codes (DOCs) for disaster-related expenditures.
  • Strengthening NEMO's capacity for loss assessments and relief expenditures.
  • Approving a comprehensive disaster financing policy based on International Public Sector Accounting Standards (IPSAS).
  • Publishing an annual debt management strategy.
  • Operationalizing the Emergency Disaster Fund (EDF) and increasing contingency reserves for events with a 5-year return period.
  • Establishing a contingent line of credit for events with a 10-year return period.
  • Reviewing and amending the Financial Administration Act to include provisions for disaster financing.

2. Fiscal Disaster Risk Assessment

• The report presents a fiscal risk analysis, including modeled loss metrics for key return periods.
• It highlights the economic impact of natural disasters, including both direct and indirect losses.
• The analysis shows that a 1-in-100-year hurricane event could result in economic losses of USD 121 million (EC$ 327 million).
• The report emphasizes the importance of considering both explicit and implicit contingent liabilities in disaster risk management.

3. Review of the Catastrophe Insurance Market

• Saint Lucia is a member of the Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) and pays an annual premium of USD 2.42 million (EC$ 6.53 million).
• CCRIF provides parametric insurance coverage, which is triggered by predefined weather events, not actual losses.
• However, the country lacks access to financing for low- and medium-severity events, which could be addressed through reserve funds and flexible ex ante contingent financing arrangements.

4. Recommended Instruments for DRF Strategy

• The report proposes a combination of new, existing, and refurbished risk retention and transfer instruments.
• These include:
  • Sovereign Protection:
    • Establishing a contingent line of credit.
    • Operationalizing the EDF.
    • Amending the Financial Administration Act.
    • Publishing an annual debt management strategy.
    • Developing a post-disaster financing manual.
  • Private Insurance Market:
    • Enhancing availability, penetration, and affordability of private and residential catastrophe insurance.
    • Exploring public-private partnerships (PPPs) for housing subsidies.
    • Improving data sharing on agricultural insurance and developing more robust and affordable products for smallholder farmers.

Key Information

• The report is part of the World Bank's Disaster Risk Financing and Insurance Program (DRFIP).
• It draws on international experience and is tailored to the institutional, social, and economic characteristics of Saint Lucia.
• Saint Lucia is classified as a Small Island Developing State (SIDS) and is particularly vulnerable to natural disasters due to its geographic location.
• The report includes a detailed analysis of historical disasters, fiscal risk modeling, and the current state of the insurance market in Saint Lucia.

Conclusion

The proposed DRF strategy aims to improve the GoSL's ability to manage disaster-related financial risks through a combination of institutional reforms, fiscal planning, and insurance mechanisms. By integrating disaster risk management into development and investment planning, Saint Lucia can reduce its vulnerability to natural disasters and ensure more resilient financial systems.