India's Presidency in G20 : Guiding Disaster Management Initiatives : Daily Current Affairs

Date: 18/05/2023

Relevance: GS-3: Biodiversity, Environment, Security and Disaster Management.

Key Phrases: Sendai framework, Risk Reduction and Resilience, People-Centered Approach, IPCC's Sixth Assessment Report, DRRWG, Sixth Assessment Report.

Context:

Under India's Presidency, the G20 has established a new working group on disaster risk reduction, positioning itself to prioritize disaster risk financing and achieve the targets set by the Sendai framework for 2030.
This is crucial due to the increasing frequency of natural and human-made catastrophes globally, which have negative effects on poverty, development, and social cohesion.

Key Highlights:

Low-income economies suffer significant annual disaster losses as a percentage of their GDP.
Financial strategies need to be developed to manage these risks effectively.
States must strengthen their capacity to understand and integrate risks into government planning and budget processes.
The insurance industry requires better regulation, legislation, and supervision.
Partnerships with the private sector should be facilitated to transfer sovereign risk to capital markets.
Financing mechanisms for response, recovery, and reconstruction should shift from ex-post to ex-ante approaches.
Investment in a development-oriented approach that promotes transparent action at the national level is crucial.

About Sendai Framework:

The Sendai Framework for Disaster Risk Reduction is an international agreement adopted in 2015 during the Third UN World Conference on Disaster Risk Reduction held in Sendai, Japan.
It sets the global agenda for disaster risk reduction and provides a framework for action to reduce the impact of disasters on individuals, communities, and countries.
Key features of the Sendai Framework:
- The Sendai Framework for Disaster Risk Reduction is a voluntary agreement, meaning it is not legally binding.
- It serves as the successor to the Hyogo Framework for Action, which was in place from 2005 to 2015, and provides a framework for global efforts to reduce disaster risk and enhance resilience.
- Goals and Targets: The framework establishes four priority areas for action and seven global targets to be achieved by 2030. The four priority areas are understanding disaster risk, strengthening disaster risk governance, investing in disaster risk reduction, and enhancing disaster preparedness for effective response and recovery.
- People-Centered Approach: The Sendai Framework places a strong emphasis on the involvement of individuals, communities, and local stakeholders in disaster risk reduction efforts. It recognizes the importance of empowering and engaging people in decision-making processes and promoting inclusive and accessible risk information.
- Risk Reduction and Resilience: The framework promotes a shift from managing disasters to managing disaster risk. It focuses on reducing existing and future disaster risks through preventive measures, risk assessments, early warning systems, and preparedness. It also highlights the need to enhance the resilience of communities and infrastructure to withstand and recover from disasters.
- Multi-Hazard Approach: The Sendai Framework acknowledges that disaster risks are often interconnected and that efforts should be made to address multiple hazards, including natural, technological, and environmental hazards. It encourages integrated and holistic approaches to risk reduction.
- Global Cooperation: The framework emphasizes the importance of international cooperation and collaboration in disaster risk reduction. It calls for enhanced regional and international cooperation, knowledge sharing, and capacity-building to strengthen disaster resilience at all levels.
- Monitoring and Reporting: The Sendai Framework includes a monitoring and reporting framework to track progress in implementing the agreed targets. It encourages countries to develop national and local indicators to measure progress and report on their efforts periodically.

Importance of Disaster Risk Financing:

The G20's new Disaster Risk Reduction Working Group (DRRWG) recognizes the significance of prioritizing disaster risk financing.
The DRRWG will focus on disaster risk financing during its second meeting in Mumbai.
Enhancing Resilience:
- Disaster risk financing enables countries to build resilience against disasters by providing the necessary financial resources for risk reduction, preparedness, response, and recovery.
- It helps governments invest in infrastructure, early warning systems, capacity building, and other measures to reduce vulnerabilities.
Mobilizing Resources:
- Disaster risk financing mechanisms, such as insurance and risk transfer instruments, can mobilize additional financial resources for disaster response and recovery.
- By pooling resources and sharing risks, countries can access greater funding and strengthen their ability to manage and recover from disasters.
Promoting Sustainable Development:
- Integrating disaster risk financing into development planning aligns with the sustainable development agenda.
- By allocating funds to disaster risk reduction measures, countries can minimize the economic and social impacts of disasters, protect development gains, and ensure a more sustainable future.
Supporting Sendai Framework Targets:
- The Sendai framework for disaster risk reduction has set ambitious targets for reducing disaster risk and losses.
- Prioritizing disaster risk financing helps countries achieve these targets by providing the necessary financial means to implement risk reduction strategies, invest in resilience-building initiatives, and ensure timely and effective response and recovery.
Strengthening Global Cooperation:
- The G20's working group on disaster risk reduction creates a platform for collaboration and knowledge sharing among member countries.
- Prioritizing disaster risk financing enables the exchange of best practices, lessons learned, and innovative financial solutions, fostering global cooperation in building resilience and achieving the Sendai framework targets.

Addressing Common Challenges:

Various economies approach the financial management of disaster risks differently based on risk levels and economic development.
Common challenges persist, such as data collection and analysis difficulties, strengthening risk assessment and modeling capacity, and achieving comprehensive coverage of disaster risks.

Role of the DRRWG:

The DRRWG will provide an extensive overview of disaster risk assessment and financing practices in different economies.
Harmonization of definitions and methodologies for data collection and analysis will improve access to international (re)insurance markets.
The DRRWG aims to address key components of a comprehensive financial management strategy for disaster risks, including risk assessment, affordable and comprehensive insurance coverage, financial assistance and compensation, and risk transfer mechanisms.

The urgency of Disaster Resilience:

The IPCC's Sixth Assessment Report highlights the vulnerability of many people to climate change.
The Sendai Framework for Disaster Risk Reduction calls for substantial reductions in disaster risk and losses.
Awareness of climate change's impact necessitates prioritizing disaster resilience.
Bridging the gap between high-level objectives and practical investments is challenging.
The G20 DRRWG can play a vital role in directing capital flow towards investments that enhance societies and economies' disaster resilience.

Conclusion:

India's Presidency in the G20 provides an opportunity to guide disaster management initiatives by prioritizing disaster risk financing.
The G20 DRRWG, through its comprehensive approach and focus on financial management strategies, can help bridge the gap between objectives and practical investments, ultimately promoting disaster resilience worldwide.

Source: The Indian Express

Mains Question:

Q. The G20, under India's Presidency, has established a working group on disaster risk reduction. Discuss the significance of prioritizing disaster risk financing and its role in achieving the targets set by the Sendai Framework for 2030.