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close this bookDisaster Economics - 1st Edition (Department of Humanitarian Affairs/United Nations Disaster Relief Office - Disaster Management Training Programme - United Nations Development Programme , 1992, 52 p.)
close this folderPart 3 - Financing options
View the document(introduction...)
View the documentThe traditional route
View the documentDebt swaps
View the documentBlocked funds
View the documentTriangular food aid
View the documentTrust funds
View the documentDisaster insurance
View the documentRevolving funds
View the documentCentral bank assistance
View the documentCoordinating foreign disaster assistance

The traditional route

Where a disaster requires immediate relief aid, this often will be financed through the UN, the EC, a country's bi-lateral trading partners, and NGOs, such as OXFAM or Save the Children Fund. However, it is almost inevitable that the medium term financing of a disaster recovery programme will have to be a part of a national development plan or rehabilitation programme. Such a plan or programme will detail the country's overall objectives, its resource base, the principal constraints to development, its overall development strategy, individual sector strategies, a proposed public investment programme (PIP), plan implementation proposals, and proposals for subsequent monitoring and evaluation.

Discussion of a plan or programme document will often take place at a meeting of major multilateral or bilateral donors. At such meetings, it is likely that the World Bank will have prepared a "country economic memorandum", setting out priority issues which need to be addressed. At the same rime, sectoral studies are likely to be available with which to focus sector lending. UNDP is also likely to have formulated a country indicative planning figure (IPF).

Assuming proposed PIP projects are assessed as viable, (under an acceptable macroeconomic policy framework), concessional loan and grant funds will be required to start project implementation, although certain issues might need to be resolved before loan or grant financing becomes effective. Where pilot projects are required, prior to full project start-up, funds are available through, for example, the World Bank's project preparation facility (PPF). The possibility also exists with the World Bank, Inter American Development Bank and Asian Development Bank to refocus existing loans for the purpose of rehabilitation and reconstruction.