Many developing countries are vulnerable to natural disasters that can have large human and economic costs: disaster risk management for these countries is a macro-critical challenge. In recent years, the IMF has been underscoring the macroeconomic risks of climate change and natural disasters for many countries (typically either small or poor), including their limited capacity to develop, finance, and implement a full disaster risk-management strategy. This paper discusses the components of such a strategy—drawing on consultations with other international organizations and on discussions at recent high-level conferences on building disaster resilience in the Caribbean and in the Pacific regions—and looks at how support for national resilience-building from international financial institutions (IFIs) and other development partners might be better coordinated.
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