Disaster Risk Finance in Belize: Progress and Perspectives

This publication, developed jointly by the Inter-American Development Bank and the World Bank, evaluates Belize's disaster risk finance framework and provides a roadmap to strengthen its financial resilience to natural hazards. Belize is highly vulnerable to hurricanes, floods, droughts, and other climate-related shocks, which pose significant risks to its economy, public finances, and development gains. The report assesses the country's disaster risk exposure, estimating substantial potential losses and fiscal contingent liabilities, particularly from tropical cyclones. It further highlights key gaps in budgetary planning, expenditure tracking, insurance coverage, and the overall integration of risk financing strategies. Through a financing gap and value-for-money analysis, the report identifies the need for a more efficient combination of risk retention and risk transfer instruments to ensure timely and cost-effective disaster response. It emphasizes the importance of strengthening data systems, expanding insurance penetration, improving contingent financing arrangements, and adopting a structured risk-layering approach. The report concludes with actionable recommendations to develop a comprehensive national disaster risk finance strategy, enhance institutional capacity, and improve coordination with development partners. These measures are intended to reduce fiscal vulnerability, improve disaster response, and support long-term resilience and sustainable economic growth.