SCIENCE IS USED FOR DISASTER RISK REDUCTION Review of Mauritius UNISDR Working Papers on Public Investment Planning and Financing Strategy for Disaster Risk Reduction February 2015 1 Please cite this paper as: UNISDR Working Papers on Public Investment Planning and Financing Strategy for Disaster Risk Reduction: Review of Mauritius, 2015, UNISDR. Geneva. Development Working Papers 2014/12 UNISDR Working Papers on Public Investment Planning and Financing Strategy for Disaster Risk Reduction Review of Mauritius February 2015 UNISDR Working Papers on Public Investment Planning and Financing Strategy for Disaster Risk Reduction This series is designed to make available to a wider readership selected studies on public investment planning and financing strategy for disaster risk reduction prepared for use in co-operation with Member States. Authorship is usually collective, but principal authors are named. UNISDR Working Papers should not be reported as representing the official views of the UNISDR or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on disaster risk reduction. 2 Contents Contents ................................................................................................................................................................... 1 List of Tables ............................................................................................................................................................ 5 List of Figures ........................................................................................................................................................... 6 List of Acronyms ....................................................................................................................................................... 8 Acknowledgements ................................................................................................................................................ 10 Executive Summary ............................................................................................................................................... 11 Introduction: Conceptual Framework ..................................................................................................................... 13 A. Background: what are challenges? ................................................................................................................ 14 B. Streamlined process for evidence based decision making ............................................................................ 19 C. Basic concept of economic loss: direct loss, indirect loss and macro-economic impact ................................ 23 C.1. Direct loss ................................................................................................................................................ 24 C.2. Indirect loss and macro-economic impact ............................................................................................... 26 C.3. Macro-economic impact .......................................................................................................................... 27 C.4. Impact on public finance .......................................................................................................................... 29 References ......................................................................................................................................................... 31 1. Country Structure ............................................................................................................................................... 32 A. Population ...................................................................................................................................................... 32 B. Political Structures .......................................................................................................................................... 33 C. Economic Structures ...................................................................................................................................... 36 D. Public Finance ................................................................................................................................................ 39 E. Other socio-economic elements ..................................................................................................................... 41 Reference ........................................................................................................................................................... 42 2. Disaster Loss ...................................................................................................................................................... 43 A. Overview .................................................................................................................................................. 43 B. Disaster loss in Mauritius ............................................................................................................................... 44 3. Disaster Risk ...................................................................................................................................................... 49 A. Overview ........................................................................................................................................................ 49 B. Probabilistic Risk Assessment in Mauritius .................................................................................................... 51 Reference ........................................................................................................................................................... 55 4. National DRM/DRR/CCA Framework ................................................................................................................. 56 A. Institutional Structures .................................................................................................................................... 56 B. Legal Structures ............................................................................................................................................. 59 C. Status of Hyogo Framework for Action .......................................................................................................... 62 References ......................................................................................................................................................... 64 5. DRR/DRM/CCA in Public Investment Planning .................................................................................................. 65 A. Current Status of DRR/DRM/CCA in Public Investment Planning ................................................................. 65 B. Contingency Finance Mechanisms ................................................................................................................ 66 C. Economic analysis to support risk sensitive pubic investment planning ........................................................ 67 C.1. Summary of the Risk-Sensitive Budget Review ...................................................................................... 68 C.2. Summary of Macro-Analysis / CATSIM ................................................................................................... 70 3 C.3. Summary of Probabilistic CBA ................................................................................................................ 72 D. Stakeholders in mainstreaming DRR/DRM/CCA in public investment planning ............................................ 73 6. POLICY RECOMENDATIONS ........................................................................................................................... 74 1) Understanding disaster risk and enhancing risk awareness .......................................................................... 74 2) Strengthening governance and institutions to manage disaster risk .............................................................. 75 3) Investing in economic and fiscal resilience ..................................................................................................... 75 Annex A. Risk-Sensitive Budget Review (RSBR) .................................................................................................. 77 A. Overview ........................................................................................................................................................ 77 B. DRM Marker ................................................................................................................................................... 78 C. The budget review methodology: Application of DRM marker ....................................................................... 79 D. The risk sensitive budget review in Mauritius ................................................................................................. 81 D.1. Scope of analysis .................................................................................................................................... 81 D.2. RSBR Results: Current Expenditure ....................................................................................................... 83 Narrow/In-depth Level (5 digits and more) .....................................................................................................