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2015/FMP/SEM1/011 Session: 5

Implementing the ASEAN DRFI Roadmap

Submitted by: ASEAN Secretariat

Seminar on Disaster Risk Finance – APEC Roadmap for Resilient Economies

Bacolod, Philippines29-30 April 2015

Implementing the ASEAN

DRFI Roadmap

Dr. Marqueza L. Reyes

ASEAN Technical Advisor for Disaster Risk Reduction

ASEAN Secretariat, Jakarta, Indonesia

APEC Workshop on Resilient Economies

28-30 April 2015, Bacolod City, Philippines

Low non-life

insurance

penetration

406,200 people

5.765km2

14.958M people

181,035km2

231.370M people

1,860,360km2

59.534M people

676,577km2

28.307M people

330,252km2

5.922M people

236,800km2

4.988M people

710km2

92.223M people

300,000 km2

86,024,600 people

331,051km2

66.903M people

513,120km2

LAO PDR

Connecting ASEAN for Disaster Readiness

Population: ~ 600 Million Population Growth: 1.3%

GDP (2013): 5.1% or ~2.4 trillion; GDP per capita: US$ 3,837

Annual Average Disaster Losses: ~ US$ 4.4 billion* (~0.2% of regional GDP)

* Source: Advancing Disaster Risk Financing and Insurance in ASEAN Countries, World Bank, GFDRR, ASEAN , and UNIISDR

ASEAN Risk Profile

ASEAN Agreement on DM and ER (AADMER)

Signed in July 2005, ratified by all ten countries in ASEAN, entered into force on 24 December 2009

Objective: Reduce disaster losses in ASEAN region, and jointly respond to disaster emergencies

ASEAN Coordinating Centre for Humanitarian Assistance (AHA Centre) as the operational coordination body and engine of AADMER

A legal framework for all ASEAN Member States and serves as a common platform in responding to disasters within ASEAN

DRFI within the DRM Framework

Source: World Bank

AADMER Work Programme 2010- 2015

Risk Assessment, Monitoring andEarly Warning

Preventionand Mitigation

Preparedness andResponse

Recovery

Resource Mobilisation

Institutionalisation of AADMER

Partnerships

STRATEGICCOMPONENTS

BUILDING BLOCKS

Information Management and Comm. Tech.

Outreach and Mainstreaming

Training and Knowledge Management

Monitoring and Evaluation

Introduction and Guiding Principles

ASEAN

responds

ASEAN Responds ASEAN has responded to recent disasters by directly

providing relief, activating the regional stockpile,

facilitating regional standby arrangements and

mobilising resources among Member States for

humanitarian assistance and disaster relief (HADR).

• M=7.7 Mentawai Earthquake, Indonesia, Oct 2010

• M=6.8 Shwebo Earthquake, Myanmar, Nov 2012

• Typhoon Pablo (Bopha), Philippines in Dec 2012

• Typhoon Yolanda (Haiyan), Philippines, Nov 2013

• Typhoon Hagupit (Ruby), Philippines, Dec 2014

• Flooding in Malaysia, January 2015

AHA Centre • Established in Nov 2011

• Located in Jakarta, Indonesia

• Operational coordination engine of

AADMER

• Identifies risks, tracks hazards and

monitors hazards and disasters

• Informs and updates AMS

• Trains and mobilises Emergency

Response and Assessment Team

(ERAT)

• Manages a regional stockpile in

Subang, Malaysia

• Conducts ARDEX

• Capacitates NDMOs, e.g. ACE

Programme

• 22 Nov 2013, Tacloban City – ASEAN Sec. Gen. Le Luong

Minh as ASEAN Humanitarian Assistance Coordinator

committed to support the Philippines in HADR and long-term

recovery and rehabilitation.

ASEAN Responds to Haiyan

ASEAN Engages in Post-Haiyan Recovery

• ASEAN Secretary General wears his hat as ASEAN

Humanitarian Assistance Coordinator

• Organized a regional conference to drum up

international support as needs shifted from response

and relief to longer term recovery and rehabilitation.

• Continue support in recovery phase – Adopt-a-

Municipality for Resilient Recovery

• Signals the growing role of ASEAN in the humanitarian

landscape

• Alongside this is the increasing number of HADR

mechanisms in ASEAN and evolving regional

architecture of disaster management and humanitarian

assistance.

Individual AMS Disaster Financing Measures

• Annual budgetary provision for disaster relief and

response

• Post-disaster reallocation of budget

• Realignment of investment priorities

• Government borrowing – post-disaster reconstruction

loans

• International humanitarian assistance

• Private individual donations

• Reserve funds

• Ex-Ante contingent credit, e.g. Philippines’ CatDDO

ASEAN Roadmap for DRFI

Adopted in November 2011 during the ASEAN DRFI Forum by 3 sectoral bodies: ACDM, AFDM and AIRM.

Finance Ministers endorsed on 4 April 2013 the establishment of the ASEAN Cross-Sectoral Coordination Committee on DRFI, a breakthrough.

ASEAN Roadmap for DRFI

Regional Level

• Develop disaster risk information and modeling systems including sharing of disaster risk data and information at the national level.

• Establish an inter-sectoral mechanism on DRFI within ASEAN. •Strengthen regional cooperation on DRFI:• Regional capacity building activities, e.g. information and education, sharing of experiences.• Explore to establish in collaboration with

the private sector a learning centre on DRFI

• Build linkages with other learning institutions including AHA Centre for knowledge sharing

Regional Level

• Explore the possibility of a regional vehicle to facilitate access to international reinsurance and capital markets based on various studies

• Support and collaborate with the ASEAN insurance officials to explore options and mechanisms for a regional framework on DRM.

• Determine other preconditions for strengthening regional cooperation on DRFI

ASEAN Roadmap for DRFI

National Level• Develop disaster risk financing and insurance strategies at the

national and local levels

• Develop a national disaster risk financing program

• Explore the establishment of a National Disaster Fund

• Promote catastrophe risk insurance as part of the disaster risk reduction strategy

• Integrate financial inclusion strategies into the disaster risk management agenda of the country

Implementing the Roadmap: ASEAN DRFI

Programme Phase 1 (2015-2016)

• Establish a regional disaster risk information management system

Capacity building on risk information,

assessment and modelling

• Review and reform of policies, strategies, and programmes related to disaster financing

• Integrating risk financing and risk transfer in national policies and plans

Capacity building on public policy

development

• Sharing of experience and knowledge on DRFI, including fiscal risk management• Cooperation with private sector, IOs, etc. institutions on DRFI training

Capacity building for knowledge

management on DRFI

THANK YOU FOR

YOUR ATTENTION.

Association of Southeast Asian Nations

www.asean.org

One Vision, One Identity, One Community

marqueza.lepana@asean.org

ASEAN Secretariat

70 A Jl. Sisingamangaraja, Jakarta 12110 Indonesia

Phone: (62 21) 724 3372, 726 2991

Fax: (62 21) 739 8234; 724 3504