Source: UNISDR Disaster Risk Reduction
The United Nations Office for Disaster Risk Reduction (UNDRR) has collaborated with the Coordination Centre for the Prevention of Natural Disasters in Central America (CEPREDENAC) and the Council of Ministers of Finance of Central America, Panama and the Dominican Republic (COSEFIN) to enhance disaster risk reduction (DRR) financing across Central America and the Dominican Republic. This partnership marks the region’s initial steps towards establishing a comprehensive regional DRR financing strategy.
In partnership with the World Bank, UNDRR convened a ministerial meeting that brought together high-level representatives from CEPREDENAC and COSEFIN. At this meeting, the two regional entities issued a joint declaration, committing to work with their Member States to improve financing for DRR.
Ministers of Finance and DRR authorities reaffirmed their “regional commitment to promote resilient and sustainable public investment, ensuring alignment with regional DRR guidelines and the search for innovative and sustainable financing mechanisms.” This led to the establishment of a technical support group-comprising CEPREDENAC, COSEFIN, the World Bank, and UNDRR-tasked with developing a regional DRR financing strategy designed to complement and strengthen existing national strategies.
By shaping regional policy and encouraging intergovernmental collaboration, UNDRR and its partners have generated momentum for innovative financing approaches to resilience, thus contributing to enhanced protection for communities throughout the region. The Minister of Finance of Costa Rica, Mr. Nogui Acosta, remarked, “The impacts on one country affect all others, so we should address these issues at a regional level.” He further emphasized the importance of prospective planning and tailored budgetary approaches to facilitate efficient resource use and risk reduction at national level.
Key Impacts
- Strengthening national-regional alignment: The regional commitment – spearheaded by CEPREDENAC, COSEFIN and UNDRR, provides a framework for national governments to align their DRR financing mechanisms with regional guidelines, promoting consistency and coherence across DRR investment strategies.
- Influencing policy and mobilizing resources: By involving Ministries of Finance alongside DRR authorities, the initiative strengthens the integration of DRR into national public investment planning and budgeting, a cornerstone of effective DRR governance.
- Supporting national DRR implementation: The emerging regional DRR financing strategy is intended to bolster national DRR strategies, facilitating implementation of commitments under the Sendai Framework, particularly Priority 2 (strengthening disaster risk governance) and Priority 3 (investing in DRR).
- Enhancing institutional coordination and technical support: The technical support group, involving regional IGOs and global partners, fosters multi-level institutional collaboration and provides sustained technical assistance to national DRR governance structures.
- Promoting whole-of-government approaches: By framing DRR financing as a cross-sectoral issue of fiscal governance, the initiative integrates DRR into broader national development planning and central government portfolios, thereby encouraging broader institutional engagement and implementation.
- Elevating DRR financing as a regional-to-local priority: This initiative represents a shift from reactive disaster response to systemic, finance-driven disaster risk governance, highlighting the need for dedicated financing pathways and institutional collaboration across sectors and all levels of government.
Lessons learned for replication and adaptation
- Integrate DRR into national financial planning: Engaging both DRR authorities and Ministries of Finance ensures that DRR is embedded in national budgeting and public investment systems, moving beyond siloed emergency responses.
- Leverage regional IGOs to reinforce national action: Regional bodies can catalyse national commitments by promoting shared policy frameworks and facilitating peer learning. In some contexts, their influence may be strengthened through legally binding DRR frameworks (e.g. ASEAN).
- Formalize political commitments: Ministerial declarations and joint statements can solidify intent, mandate follow-up actions and foster political momentum for sustained DRR engagement.
- Establish technical support mechanisms: Creating regional working groups that include global partners facilitates continuous follow-up and helps countries translate commitments into actionable strategies.
- Align with existing frameworks to enhance ownership: Building on national and regional DRR strategies avoids duplication, increases relevance, and supports long-term sustainability and legitimacy.