TAILIEUCHUNG - Cost-benefit Analysis of Natural Disaster Risk Management in Developing Countries

Although I’ve identified different kinds of authority, it’s possible for one person to possess several or all of them. However, most of the time, authority is distributed across team leaders. The more complex the distribution of authority is, the more planning effort you’ll need to be effective. In Chapter 16, I’ll cover how to deal with situations where you need more authority than you have. For now, it’s enough to recognize that planning involves these different kinds of power. Common planning deliverables To communicate requirements, someone has to write them down. There are many ways to do this, and I’m not advocating any particular method. What matters most is that the. | Cost-benefit Analysis of Natural Disaster Risk Management in Developing Countries Manual August 2005 Sector Project Disaster Risk Management in Development Cooperation Author Reinhard Mechler mechler@ Deutsche Gesellschaft fur Technische Zusammenarbeit GTZ GmbH commissioned by Federal Ministry for Economic Cooperation and Development Table of Contents 1 INTRODUCTION COST-BENEFIT ANALYSIS AND NATURAL DISASTER RISKMANAGEMENT 5 Context 5 Objectives and structure 7 2 BASICS OF PROJECT APPRAISAL BY COST-BENEFIT ANALYSIS FOR NATURAL DISASTER RISK MANAGEMENT 9 Project cycle and project appraisal by means of Cost-Benefit Analysis 9 Overview over elements of Cost-Benefit Analysis for disaster risk management 10 Strengths and limitations of Cost-Benefit Analysis 13 3 ELEMENTS FOR CONDUCTING A COST-BENEFIT ANALYSIS IN NATURAL DISASTER RISK MANAGEMENT 14 Approach for estimating risk and benefits due to risk reduction_ 14 HaZard 14 Vulnerability 15 Overview over risk and potential impacts 16 Accounting for risk and uncertainty 19 Types of assessments requirements and data sources 21 Methods for assessing impacts 23 Estimating direct economic effects 23 Methods for deriving indirect economic effects 23 Monetarising non-monetary impacts 26 Identification of risk management measures and costs 29 Estimating efficiency of NDRM 30 Prices and inflation adjustment 31 Distribution of impacts__ 33 Additional benefits of NDRM 34 Uncertainty of estimations 34 4 QUANTITATIVE FRAMEWORKS FOR ESTIMATING RISK AND RISK REDUCTION 36 Forward-looking framework risk-based 36 Backward-looking assessment impact-based 41 5 CASE STUDY PIURA PERU 45 Overview over situation and methodology used 45 Assessing risk 47 Hazard 47 Vulnerability exposure and fragility 48 Estimating risk based on impacts of FEN 82

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