Investing in Resilience: Estimating Financial Needs and Benefits of Flood Protection in Developing Asian Countries

Abstract

Investment in disaster risk reduction, which the Sendai Framework for Disaster Risk Reduction highlights as a priority action, is crucial in mitigating disaster damage. This paper aims to estimate the funding gap and the benefits of investments in flood protection infrastructure in Asia. Budget and damage data were collected from major flood-prone economies in the region. Currently, nine economies invested USD 33.6 billion, or 0.21 % of GDP, in flood protection. Regression analysis indicates that the annual demand for flood protection infrastructure in developing economies will be USD 94.5 billion by 2030, or USD 98.4 billion considering impacts by climate change. Investment in flood protection is cost-effective at the regional level. If these developing economies could invest this amount, the net benefit (benefits minus costs) accumulation is projected to reach USD 263 billion by 2030.