The World Bank Tuesday said that while Caribbean countries have made some progress, it is urging greater resilience efforts for the region as it deals with the impact of climate change and other shocks.
In a new report, the Washington-based financial institution said strengthening government efficiency, empowering households and businesses, and reducing future risks by improving spatial planning and natural coastal protection are some of the key recommendations to boost the Caribbean’s ability to bounce back from shocks.
The report titled “360° Resilience: A Guide to Prepare the Caribbean for a New Generation of Shocks,” also notes “the genuine progress of one of the world’s most natural hazard-prone regions in improving its resilience has so far often failed to produce inclusive economic growth”.
The report covers 17 Caribbean countries, indicating that a “more comprehensive approach to resilience can help tackle the challenges posed by climate change, new diseases and changing socioeconomic contexts”.
Senior economist at the World Bank, Julie Rozenburg, told Caribbean journalists at a virtual launch of the report that reliance is a “very complex topic and it is hard to identify one or two priorities that countries can do.
“Unfortunately it has to happen across all actors and sectors and so it is really something that is a culture that countries have to build over time that is already present in the Caribbean because of the unique situation in which the region has been impact.
“So there has been already some cultural resilience, but I think it needs to be made much more present now (as) risks are intensifying,” Rozenburg said, adding “and so every actor that needs to be aware of the options available to react to shocks”.
She said governments also have a role to play in providing the right information to everyone in the country.
Disaster risk management specialist, Melanie Simone Kappes added that it is really a topic that is multi-dimensional “and it needs to bring everyone together.
“The objective of the report was to bring as much as possible information and findings and recommendations…and I think at this point the next step is to go into more depth on a country level and see how …that can support country’s specific actions”.
The report was prepared with support from the European Union in the framework of the Caribbean Regional Resilience Building Facility, managed by the Global Facility for Disaster Reduction and Recovery.
It focuses on the different affected parties, from governments to individuals, to help countries in the region understand current strengths and weaknesses across sectors, and identify priorities for building resilience to a new generation of shocks.
“Climate change is increasing the intensity and frequency of natural disasters. Other shocks, like the COVID19 pandemic, have made it clear that greater efforts are needed,” said Carlos Felipe Jaramillo, Vice President of Latin America and Caribbean Region, World Bank.
“For the Caribbean, a region already vulnerable to external shocks, now is the time to better prepare for the natural disasters of the future,” he added.
The World Bank said so far this year, hurricanes, tropical storms, earthquakes, and threats of volcanic eruption have undermined Caribbean economies and livelihoods.
“Governments and the private sector, who understand well how vulnerable the region is to these threats, have got better at preparing for them. The major damage natural hazards cause to infrastructure and private sector activity are short-lived thanks to mechanisms in place to help economies recover rapidly.
“Governments have made great strides in investing in disaster preparedness, disaster risk financing, and regional early warning systems,” the World Bank noted.
But the report warns that prior resilience strategies and efforts will not be enough to handle new and intensifying challenges, given the volatility posed by climate change, environmental degradation and changes in tourism demand.
For example, it notes that the number of people exposed to floods in the region has increased 70 per cent between 2000 and 2020 and will keep rising with climate change, while 72 per cent of infrastructure assets are exposed to at least two hazards.
Furthermore, under a moderate climate change scenario, the report states that 13 per cent of seaside hotels could experience beach loss by 2050 due to sea level rise, and in some countries annual coastal protection costs could consistently exceed five per cent of gross domestic product (GDP).
“The long-term progress achieved by most Caribbean countries despite their high exposure to shocks is commendable,” said Lilia Burunciuc, World Bank Country Director for Caribbean countries, adding however, with the socioeconomic pain caused by the pandemic, the region is even more exposed.
“Despite progress, many countries in the region are constrained by high debt levels, poverty and human capital development challenges. These issues leave little room for increased government spending, but adaptation efforts are imperative to avoid more serious economic impact in the future,” she said.
In this context, the report stresses how these new challenges need a holistic approach to resilience across all sectors and actors, including innovation with technology. It recommends “a more consistent approach”, building on “strong institutions, robust analytics and more transparent prioritization”
Rozenberg said the report developed a traffic light system to help focus and prioritize actions, identify gaps, facilitate target setting, and monitor progress across the multiple aspects of resilience. It suggests a framework that governments and organizations can use to assess their resilience efforts.
Asked what quantum of finances regional governments should set aside in order to ensure the implementation of the recommendations in the report, the World Bank senior economist said that it is more than just setting aside some money to response to the shocks.
“I think it is also investing now in reducing risks rather than being just prepared to respond to future risks,” she said, noting that funds could be put into “just maintaining infrastructure assets and making sure they…are stronger…and that she be a priority for example”.
While this 360-degree approach to resilience needs to be tailored to each country’s specific context and chosen pathway toward recovery, the report urges Caribbean governments to focus on three main areas to boost resilience and better prepare for the shocks and stresses of the future.
The first is increasing government efficiency by improving investment management and infrastructure maintenance, clarifying procurement rules, allocating budgets transparently, layering risk financing strategies, and giving greater attention to data and digitization.
The second is empowering households and the private sector by increasing both the coverage and adequacy of social protection, strengthening worker skills, improving access to finance, and facilitating access to risk information.
The third is reducing future physical risk by protecting natural barriers, better enforcement of building codes, systematically considering emerging and changing risks, and planning to build back better after-shocks.
