CDB and IDB Underscore Importance of Disaster Risk Management for the RegionThe Caribbean Development Bank and the Inter-American Development Bank have agreed to share a summary report of the discussions, approaches and outcomes of a two-day Technical Workshop on the Management of Disaster Risk through Fiscal and Budget Planning with political decision-makers in the Region. The workshop, sponsored by the two institutions, was held at CDB's Headquarters in Barbados from June 26 - 27, 2006.The workshop was attended by Permanent Secretaries in the ministries of Finance and Planning from borrowing member countries of CDB and IDB, along with national disaster coordinators. The event provided a useful opportunity for initial exploration of financial instruments and exposure to practical tools. However, as a key next step, it was noted that a decision at the political level will be required in order to effectively incorporate disaster risk management into fiscal and budget planning. In this context, CDB and IDB also expressed their commitment to maintain a high-level dialogue on this important theme, and to develop in partnership with governments a comprehensive list of strategic issues and priority needs in disaster risk management for further discussion. It was agreed that the private sector should be an integral part of this dialogue.Discussions during the workshop highlighted the fact that while emergency response capacity is a critical element in the management of disasters, and has been mainstreamed into national development planning, a proactive approach to disaster risk management focused on mitigation and prevention is a prerequisite to sustained reduction of disaster impacts and to social and economic development in the Region - and this too should be mainstreamed as a priority into national planning. Meeting this challenge calls for the involvement of all major stakeholders in the Region. Related topics discussed during the workshop include the socioeconomic impacts of natural hazards and disasters in the Caribbean, the principles of disaster risk management, incorporation of disaster losses into macroeconomic projections and the planning process, an overview of ex-ante risk financing options, and frameworks and methods for incorporating risk analysis into financial planning, budgeting and accounting for government. The special problems of implicit liabilities and moral hazard were also considered.