From 1970 to 2000, disasters cost $70-$80 billion annually but doubled since 2000 to $180-$200 billion yearly. Most costs are preventable. According to the UNDRR’s 2025 Global Assessment Report, disasters now cost over $2.3 trillion yearly, including indirect social and ecosystem damages.
Why Resilience Funding Is Critical
Investing in resilience decreases direct damages, reduces human suffering, and protects vital health infrastructure from catastrophic disasters globally.
In 2024, nearly 46 million people were displaced by disasters, straining health systems and services, worsening nutrition and disease outbreaks worldwide.
Climate Crisis Intensifies Disaster Impacts
Extreme events like floods, storms, droughts, and heatwaves increasingly devastate lives and erase decades of development gains instantly.
South Sudan faces annual floods submerging homes, farmland, and schools, forcing displacement while increasing food insecurity and vulnerability.
Disaster Prevention Measures Save Lives
Supported by IOM, dykes built in South Sudan protect farmland and restore livelihoods, demonstrating cost-effective resilience strategies that save lives and money.
Observed on October 13, this day urges doubling investments in disaster risk to minimize vulnerabilities and protect the world’s most vulnerable populations. UN Secretary-General António Guterres calls for a surge in funding to build safer, equitable futures by reducing disaster exposure and integrating risk in all decisions and policies.
The Economic and Human Cost of Inaction
Without adequate resilience investment, rising disasters drive debt, reduce government recovery budgets, and inflict disproportionate suffering on fragile communities. Disasters disrupt healthcare delivery, reduce accessibility, and increase disease risk. Resilient health infrastructure is crucial in sustaining emergency and routine care.
Financial Benefits of Disaster Risk Reduction
Every dollar invested in risk reduction can save up to fifteen dollars in recovery costs, proving resilience funding’s high return on investment. Governments and businesses must integrate disaster risk in planning and investments to protect assets and reduce future economic shocks.
Innovative Risk Financing and Insurance
Developing accessible insurance and risk-transfer mechanisms helps break disaster-driven debt cycles and supports quicker community recovery after crises. Local community leadership in disaster planning enhances risk awareness, improves tailored solutions, and increases effectiveness of resilience measures.
Challenges to Scaling Up Resilience Funding
Despite evidence, disaster risk reduction remains underfunded, especially in developing countries. Barriers include limited financial resources and competing priorities.
Moving Towards Risk-Informed Development
Aligning investments with disaster risks fosters sustainable development, protects public health, and promotes climate adaptation worldwide for future generations.
Advocating for disaster risk funding, supporting preparedness education, and contributing to local resilience projects strengthens health and livelihood security globally. The growing economic and human toll of disasters in 2025 demands urgent, sustained investment in resilience. Funding disaster risk reduction protects health, saves money, and builds safer communities.