Narrowing the Disaster Risk Protection Gap in Central Asia

By Asian Development Bank

Central Asia Regional Economic Cooperation (CAREC) member countries face growing levels of disaster risk without sufficient financial protection. Regional cooperation solutions can help narrow the protection gap and increase the financing available for quick responses to disaster events. This publication examines risks from flooding and earthquakes. It explores the current approach to disaster risk finance in each CAREC member state to identify opportunities to strengthen financing arrangements. It aims to inform the design of a regional disaster risk transfer facility.

• Language: English
• Publisher: Asian Development Bank
• Release date: May 1, 2022
• ISBN: 9789292696801

Book preview

NARROWING THE DISASTER RISK PROTECTION GAP IN CENTRAL ASIA

SEPTEMBER 2022

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

© 2022 Asian Development Bank

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Some rights reserved. Published in 2022.

ISBN 978-92-9269-679-5 (print); 978-92-9269-680-1 (electronic); 978-92-9269-681-8 (ebook)

Publication Stock No. TCS220333-2

DOI: http://dx.doi.org/10.22617/TCS220333-2

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Notes:

In this publication, $ refers to United States dollars.

ADB recognizes China as the People’s Republic of China, and Kyrgyzstan as the Kyrgyz Republic.

Cover design by Francis Manio.

On the cover: All CAREC member countries have a deficit of robust risk financing. With common risks faced from floods and earthquakes, regional solutions can help narrow the protection gap and provide quick and reliable access to finance to support immediate response and recovery efforts.

Contents

Tables, Figures, and Box

Acknowledgments

This study was undertaken on behalf of the Central Asia Regional Economic Cooperation (CAREC) Secretariat and the Asian Development Bank (ADB) under the technical assistance, Developing a Disaster Risk Transfer Facility in the CAREC Region. The team would like to thank Junkyu Lee, director, Chief Financial Sector Group, Sustainable Development and Climate Change Department (SDCC); Lyaziza Sabyrova, director, Regional Cooperation and Operations Coordination Division, Central and West Asia Department (CWRD); Safdar Parvez, advisor, Office of the Director General, East Asia Department; Thomas Kessler, principal finance specialist (Disaster Insurance), SDCC; Carmen Garcia Perez, regional cooperation specialist, CWRD; Irene de Roma, programs officer, CWRD; Jennifer Lapis, CAREC regional cooperation coordinator; and Alzeus Alzate, CAREC administrative assistant, for the overall support and guidance.

The team also expresses its appreciation to the regional cooperation coordinators and national focal points’ advisors in all CAREC countries for their assistance in organizing and hosting virtual consultations. The team would also like to extend its gratitude to senior officials in CAREC countries for their inputs, feedback, and contributions.

The authors of this study were John Ward at Pengwern Associates with research support from Joe Peissel and Pieter Sayer; and Christopher Au, David Simmons, and Stuart Calam at Willis Towers Watson. Data contributions have been provided by the Global Earthquake Model Foundation and JBA Risk Management.

Abbreviations

Executive Summary

This report discusses and estimates the protection gap for flood and earthquake disaster risk in the Central Asia Regional Economic Cooperation (CAREC) region. The intention of the study is to better understand the current approach to disaster risk finance in each member country, to identify opportunities to strengthen financing arrangements. The report also inputs into the design of the regional disaster risk transfer facility to be developed under this technical assistance.

When flood and earthquake disaster events happen, finance is required by those experiencing the consequences of that risk—the risk holder. This finance is needed first to support immediate response and recovery