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The economics of investing in disaster risk reduction

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This working paper addresses the likely increase of the economic costs of disasters and the technical and political challenges faced by economic assessments. It makes three suggestions for improving the economic effectiveness of investment decision-making for disaster risk reduction (DRR). It (i) sets out the renewed mandate for investing in DRR which came out of the RIO+20 Conference in June 2012

(ii) highlights the high and rising economic costs of disasters

(iii) explores the challenges of estimating the economic costs of disasters

(iv) identifies the economic benefits of DRR

(v) specifies the costs of DRR activities

(vi) reviews the many challenges of making economic assessments

(vii) reviews the political economy challenges of DRR policy making

(ix) makes suggestions for improving investment decision-making for DRR

and (ix) provides a list of publically-available studies, reports and presentations which were used in preparing this working paper.

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