STEP 1 Assessing financial demand and need

The initial budget review should focus on channelling urgent resources for the relief efforts. Subsequent reviews can be based on the recommendations of the PDNA or similar rapid assessments, including the agricultural sector assessment. These financial reviews involve detailed sequencing and prioritizing:

  • The damages to infrastructure and assets are valued in physical terms.


  • Damages are assigned a monetary value (replacement costs according to the market prices prevailing just before and after the disaster). These costs are the baseline costs and to these needs to be added, for example, the cost of improvements for risk reduction and resilient recovery according to the BBB concept.


  • Additional economic losses are calculated until full economic recovery (e.g. hidden administrative costs, changes in economic flows arising from the disaster such as lower productivity and exports that affect direct and indirect tax revenues).


  • A detailed work plan is developed including the sequence of activities with associated funding requirements and amending the work plan as programme implementation begins.

Tools and Guiding Questions


Guiding Questions



What is the financial requirement for relief and resilient response measures in the agricultural sector?

Does the financial demand assessment segregate the needs according to different (agricultural) sub-sectors (value chain) and producer groups?


Guidelines


World Bank/A. De Janvry (2015): Quantifying Through Ex Post Assessments the Micro-Level Impacts of Sovereign Disaster Risk Financing and Insurance Programs


https://openknowledge.worldbank.org/bitstream/handle/10986/22239/Quantifying0th0d0insurance0programs.pdf?sequence=1&isAllowed=y


Guiding Questions



What are the most suitable financing products for post-disaster financing in terms of effectiveness, efficiency and speediness?

How does (or could) insurance reduce the opportunity costs of ex post financing?


Guidelines


EU/UNEP/World Bank/GFDRR (2015): Guide to developing disaster recovery frameworks, Sendai Conference Version


https://www.preventionweb.net/publications/view/61910


For insurance-related tools, see