(OPM)- Cabinet has approved the Disaster Risk Financing (DRF) Strategy to assess, reduce and manage fiscal risk associated with disasters. The Strategy aims to improve Dominica’s response capacity to natural hazards, climate impacts, pandemics, endemic health concerns and other economic shocks.
The DRF Strategy aligns with the Disaster Resilience Strategy (DRS) approved by Cabinet in December 2020. It operationalizes parts of the financial resilience and post- disaster resilience pillars of the DRS and supports Government’s policy to build financial resilience as a critical cornerstone of the country’s resilience agenda.
The DRF Strategy will strengthen data collection and management to encourage evidence-based decision making on prioritization of post disaster expenditures, resilience activities and optimization of financial instruments. It also aims to strengthen public financial management related to disasters, and foster the legal and administrative environment for sound practices in disaster risk financing. An operational framework for the procurement of insurance by the public sector and Post-Disaster Budget Execution Guidelines will also be developed.
As part of the implementation process, Government will introduce measures to improve fiscal protection and financing of post-disaster emergency response and recovery needs through financial instruments; and define financing sources for social protection systems to support affected populations. Another strategic priority is collaboration with the private sector to improve availability and affordability of catastrophe risk insurance products for the government, households, businesses including farmers, and vulnerable groups in the society.
The Strategy will guide the further development of financial protection products for vulnerable sectors including agriculture, tourism, and fisheries.
