Haiti Grapples with Disaster Risk Management in Wake of Devastating Earthquake

A Country Prone to Natural Hazards Faces Another Disaster

Haiti, a country often hit by natural hazards such as hurricanes, flooding, and earthquakes, has been struck again by disaster. A 7.2 magnitude earthquake killed over 2,200 people and destroyed or damaged up to 130,000 homes in southern Haiti.

The Devastating Impact of the Earthquake

The impact of the earthquake was exacerbated by Tropical Depression Grace, which dumped heavy rains on the same region just days later, delaying humanitarian assistance and damage assessments.

Financial Resilience a Key Factor

In light of past disasters, including the 2010 earthquake and Hurricane Matthew in 2016, Haiti has had multiple risk-financing instruments in place. The Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) has provided critical financial support to Haiti, with a payout of approximately $40 million just 14 days after the earthquake.

A Shift Towards Proactive Disaster Management

Haiti’s subscription to CCRIF SPC reflects a shift away from reactive post-disaster response towards a more proactive approach focusing on prevention and preparedness. Global partnerships have also played a crucial role in supporting Haiti’s disaster risk management efforts, with countries such as Canada, the EU, Germany, Ireland, and Mexico providing funding to CCRIF SPC.

Challenges Ahead

While Haiti has made progress in disaster risk management, challenges remain. The country’s economy is weakened by disasters, and damage to infrastructure and businesses can have a lasting impact on poverty levels.

A Comprehensive Disaster Risk Financing Strategy

A comprehensive disaster risk financing strategy is crucial to strengthening Haiti’s resilience and protecting vulnerable communities from the financial impacts of disasters. Haiti is currently developing such a plan in partnership with the EU’s Caribbean Regional Resilience Building Facility, which will likely include instruments such as CCRIF SPC coverage, contingent credit lines, emergency funds, and coordinated budget reallocations.

The Role of International Partners

The World Bank, along with its partners, will continue to work with the government and people of Haiti to strengthen their disaster risk management capacity and protect vulnerable communities. By supporting Haiti’s efforts to develop a comprehensive disaster risk financing strategy, international partners can help the country build resilience and reduce the financial impacts of disasters.

A Way Forward

With the right strategy and support, Haiti can build its financial resilience and protect its most vulnerable citizens from disasters.