UPDATED | Cabinet approves plan to create disaster risk policy

Cabinet yesterday gave the greenlight for the development of a national policy on financing the risk of natural disasters.

This comes as the Government revealed that the cost of natural disasters to the country, between 1993 and 2003, amounted to $285.91 billion.

“The government has taken a proactive approach by laying the groundwork for the drafting of a policy that will see Jamaica being more independent and responsive when disasters strike,” Finance Minister Dr Nigel Clarke said.

“The practice of shifting budgeted resources from planned activities is imprudent and we have taken another step in the right direction with this policy initiative,” a strident Clarke said.

The development of Policy on Natural Disaster Risk Financing is expected to create greater transparency and efficiencies in the mobilisation and execution of public expenditure to manage disaster risk.

Critical components of the policy will include provisions for the establishment of contingency fund to be dubbed the National Catastrophic Disaster Reserve Fund to assist Jamaica in developing fiscal resilience to natural disasters.

According to the finance ministry, the creation of a dedicated disaster fund would assist with the "build-up of a strong fiscal buffer; improve insurance of public assets and incorporate disaster risk analysis in public sector investments and planning from a physical planning perspective".

The approval for the development of the Policy on National Disaster Risk Financing comes ahead of the staging of a public forum by the Ministry of Finance and the Public Service and the World Bank on ‘Facing the Fiscal Risks of Natural Disasters’.

The public forum will take place at the Jamaica Pegasus Hotel in New Kingston today.

The public forum is aimed at stimulating a national conversation on strengthening resilience and advancing disaster risk financing and management as natural disasters become more frequent and severe as the effects of climate change become more obvious.

"Jamaica, like other Caribbean island states, is highly exposed to extreme weather events and climate risks. The impact on the lives of citizens can be severe, and it is often the most vulnerable that are affected from these shocks which are frequently followed by income and productivity losses," the finance ministry underscored. 

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