Evaluation of the Bank's Policy and Operational Practice Related to Natural and Unexpected Disasters
he report covers OP-704 (approved in 1998), the IDB Action Plan on Natural Disasters (written in 2000), and operational and non-financial activities related to disaster prevention, mitigation and response undertaken by the Bank between 1995 and 2002. The report demonstrates that natural disasters pose great challenges to most of the countries in Latin America and the Caribbean (LAC) and consequently to the Bank itself. The report concludes that there is a need in this situation to manage the risks from natural disasters with a view to reducing losses. At the same time, the report shows that risk management is a challenging proposition, conceptually and practically, with powerful incentives favoring reactive over proactive policies.