Enhancing Macroeconomic Resilience to Natural Disasters and Climate Change in the Small States of the Pacific
IMF Working Papers, June 19, 2015
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- Enhancing Macroeconomic Resilience to Natural Disasters and Climate Change in the Small States of the Pacific
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Bibliographic details
- Authors: Ezequiel Cabezon, Leni Hunter, Patrizia Tumbarello, Kazuaki Washimi, Yiqun Wu
- Published: June 19, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513525792.001
Key findings on economic impact
- A panel VAR analysis indicates that, for damage and losses equivalent to 1 percent of GDP, growth drops by 0.7 percentage point in the year of the disaster.
- During 1980-2014, trend growth was 0.7 percentage point lower than it would have been without natural disasters.
- Natural disasters and climate change are interrelated macro-critical issues affecting all Pacific small states to varying degrees, with impacts that damage growth prospects and worsen fiscal positions.
Multi-pillar resilience framework
- The paper discusses a multi-pillar framework to enhance resilience to natural disasters at the national, regional, and multilateral levels.
- Emphasis on strengthening both ex ante and ex post resilience through a more strategic and less ad hoc approach.
- Highlights the importance of enhancing countries’ risk-management capacities.
Role of the IMF
- The study outlines what role the IMF can play in supporting the multi-pillar framework and in helping to build risk-management capacity across Pacific small states.
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- PDP-Working Paper