Learning from Public Disclosure Authorized Experience Insights from China’s Progress in Disaster Risk Public Disclosure Authorized Management Public Disclosure Authorized Public Disclosure Authorized Learning from Experience Insights from China’s Progress in Disaster Risk Management 2008Photo Sichuan by eugenesergeev. Earthquake Memorial. © Thitichot Katawutpoonpun | Dreamstime.com 3 Contents Foreword ................................................................................................................................................................................ 5 Abbreviations ...................................................................................................................................................................... 6 Acknowledgments ................................................................................................................................................................. 7 Chapter 1 Natural Disaster Challenges in China: Key Trends and Insights ............................................. 9 Chapter 2 The Evolution of National Disaster Risk Reduction Plans in China ...................................... 15 Chapter 3 Disaster Loss Statistics in China: Advancing Risk-Informed Decision Making .................. 26 Chapter 4 National Demonstration Communities for Disaster Risk Reduction: Progress and Challenges ........................................................................................................................................ 33 Chapter 5 Fostering Rural Resilience: A Closer Look at China’s Agricultural Insurance Pilot ........... 43 Chapter 6 The Development of Catastrophe Insurance in China: An Exploration ................................ 55 Chapter 7 Leveraging Space-Based Satellite Technologies for Emergencies and Disasters in China 65 Chapter 8 The Counterpart Support Program for the Wenchuan Earthquake Recovery: Lessons and Reflections ........................................................................................................................ 72 © 2020 International Bank for Reconstruction and Development / The World Bank Boxes 1818 H Street NW Box 2.1. Shifting from Relief to Prevention .......................................................................................................... 18 Washington DC 20433 Telephone: 202-473-1000 Box 4.1. Provinces with the Most DRR Demonstration Communities ............................................................ 36 Internet: www.worldbank.org Box 5.1. How China’s Agricultural Insurance System Works: The Operational Model ................................. 47 Box 5.2. In Focus: Agricultural Insurance Indemnity against the 2014 Major Drought in Liaoning .......... 52 This work is a product of the staff of The World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) with external Box 8.1. Results and Highlights from the Wenchuan Earthquake Recovery ................................................... 77 contributions. The findings, analysis and conclusions expressed in this document do not necessarily reflect the views of any individual partner organization of The World Bank, its Board of Directors, or the governments they represent. Figures Although the World Bank and GFDRR make reasonable efforts to ensure all the information presented in this document is correct, its Figure 1.1. Losses from Natural Disasters in China: Direct Damages and Fatalities .......................................... 12 accuracy and integrity cannot be guaranteed. Use of any data or information from this document is at the user’s own risk and under no Figure 2A.1. Annual Disaster Mortality Rate per 106 People in China, 1991–2018 ............................................... 18 circumstances shall the World Bank, GFDRR or any of its partners be liable for any loss, damage, liability or expense incurred or suffered Figure 2A.2. Annual Direct Disaster Economic Loss Rate to National GDP in China, 1991–2018 .................... 19 which is claimed to result from reliance on the data contained in this document. The boundaries, colors, denomination, and other information shown in any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any Figure 4.1. Provincial Coverage of National Demonstration Communities on Disaster Risk Reduction territory or the endorsement or acceptance of such boundaries. (NDCDRR) in 2017 .................................................................................................................................. 36 Figure 4.2. Spatial Agglomeration of National Demonstration Community on DRR ........................................ 39 Rights and Permissions Figure 4.3. Disaster-Related Loss Rates Relative to Average Number of Demonstration Communities ......... 40 The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and Figure 5.1. The Evolution of the Chinese Agricultural Insurance Program ......................................................... 46 licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, Figure 5.2. The Composition and Amount of Financial Agricultural Insurance Premium Subsidies DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. at All Levels in China ............................................................................................................................... 48 Figure 5.3. The Overall Level of China’s Agricultural Insurance Liability and Coverage, 2007–2018 .............. 50 Design: Miki Fernández, ULTRA designs, Inc. Figure 6.1. The Development of China’s Catastrophe Insurance System .............................................................. 58 Cover: The Great Hanshin Earthquake, 1995. Photo: gyro. Inside-cover: eugenesergeev. 4 5 Foreword Figure 7.1. 3D Scene of Disaster-Affected Area after the 2017 Jiuzhaigou Earthquake ..................................... 68 China has long known more than its fair share direct economic loss, have figured prominently Figure 8.1. Source of Financial Resources for the Reconstruction after the Wenchuan Earthquake, of disasters, including earthquakes, typhoons, in the evolution of China’s DRR plans. as of November 2011 ................................................................................................................................ 76 floods, and droughts. The good news is that in • The rise of demonstration communities. Figure B8.2. Progress of Wenchuan Earthquake Reconstruction Plan .................................................................... 77 recent decades, the country has made tremendous headway in building its resilience to disasters. Underscoring China’s commitment to community-based disaster risk management, the Tables Learning from these efforts will be critical to strengthening resilience building efforts in China country has been implementing a nationwide Table 2A.1. Comparison of Goals in National Planning on Disaster Risk Reduction ......................................... 21 initiative to designate select communities th th th and beyond. Table 2A.2. Comparison of the National 11 , 12 , and 13 Five-Year Disaster Reduction Plans ...................... 22 as demonstration communities for raising Table 2A.3. Comparison of Main Tasks of National Disaster Reduction Plans .................................................... 23 In that spirit, this Knowledge Note distills some awareness about the importance of DRR. Table 2A.4. Comparison of Major Projects of National Disaster Reduction Plans .............................................. 24 lessons from China’s1 progress in many areas of Table 2A.5. Comparison of Safeguard Measures of National Disaster Reduction Plans ..................................... 25 • Standardization of the disaster loss statistical disaster risk management. The note does not system. Efforts to strengthen and standardize Table 5.1. China’s Agricultural Insurance, 2007–2018 .......................................................................................... 49 comprehensively cover the country’s achievements, the disaster loss statistical system have led Table 6.1. China’s Catastrophe Insurance: National and Local Systems Compared ......................................... 61 but focuses instead on topics that might be of to a marked improvement in the ability of Table 7.1. Time Statistics of Major Natural Disaster Loss Assessment ............................................................... 69 particular interest to DRM practitioners globally. disaster risk managers to use and analyze the Drawing on expert insights from China’s disaster country’s disaster loss data for risk-informed risk management community, key themes reconstruction and planning. highlighted by this note include: • Development of an agricultural insurance • The evolution of national disaster risk reduction system. China’s agricultural insurance system has (DRR) planning. Over the years, a shift from continued to develop rapidly, as evidenced by its reactive to proactive disaster reduction, as well growing market size, expanding list of insured as a focus on reducing disaster mortality and perils, and increasing liability and coverage. [1] Unless specified, the data and information in this report covers