IPCC Report.pdf - Adam Curry

Chapter 7Managing the Risks: International Level and Integration across Scalesrole that solidarity has played in the social systems of the developedworld (Linnerooth-Bayer and Mechler, 2008). Other types of assistance,like providing reinsurance to small insurers, can crowd out the (emerging)role of the private market. Finally, critics point out that it may be moreefficient to provide the poor with cash grants than to subsidize insurance(Skees, 2001; Gurenko, 2004).Recognizing these concerns, there may be important and valid reasonsfor interfering in catastrophe insurance and other risk-financing marketsin specific contexts (see discussions by Cummins and Mahul, 2009;Linnerooth-Bayer et al., 2010), especially if:• The private market is non-existent or embryonic, in which caseenabling support (e.g., to improve governance, regulatoryinstitutions, as well as knowledge creation) may be helpful.• The private market does not function properly, in particular, ifpremiums greatly exceed the actuarially fair market price due, forexample, to limitations on private capital and the uncertainty andambiguity about the frequency and severity of future losses(Kunreuther and Michel-Kerjan, 2009). In this case economicallyjustified premiums that are lower than those charged by theimperfect private market may be appropriate (Froot, 1999; Cutlerand Zeckhauser, 2000).• The target population cannot afford sufficient insurance coverage,in which case financial support that does not appreciably distortincentives may be called for. The designers of the Mongolianprogram, for example, argue that subsidizing the ‘upper layer’ isless price-distorting than subsidizing lower layers of risk becausethe market may fail to provide insurance for this layer (Skees et. al.,2008).• The alternative is providing ‘free’ aid after the disaster happens.7.4.5. Knowledge Acquisition, Management,and DisseminationA close integration of DRR and CCA and their mainstreaming intosustainable development agendas for managing risks across scales calls formultiple ways of knowledge acquisition and development, management,sharing, and dissemination at all levels. Knowledge on the level ofexposure to hazards and vulnerabilities across temporal and geographicalscales (Louhisuo et al., 2007; Heltberg et al., 2008; Kaklauskas et al.,2009); the legal aspects of DRM and CCA; financing mechanisms atdifferent scales; and information on access to appropriate technologiesand risk-sharing and transfer mechanisms for disaster risk reduction(see Sections 7.4.1-7.4.4) are key to integrated risk management.Collaboration among scientists of different disciplines, practitioners,policymakers, and the public is pertinent in knowledge acquisition,management, and accessibility (Thomalla et al., 2006). The type, level ofdetail, and ways of generation and dissemination of knowledge will alsovary across scales, that is, from the local level where participatoryapproaches are used to incorporate indigenous knowledge and buildcollective ownership of knowledge generated, to national and broaderregional to international levels, thus upholding the principle of subsidiarityin the organization, sharing, and dissemination of information on disasterrisk management (Marincioni, 2007; Chagutah, 2009).An internationally agreed mechanism for acquisition, storage andretrieval, and sharing of integrated climate change risk information,knowledge, and experiences is yet to be established (Sobel and Leeson,2007). Where this has been achieved it is fragmented, assumes a topdownapproach, is sometimes carried out by institutions with no clearinternational mandate, and the quality of the data and its coverage areinadequate. In other cases a huge amount of information is collectedbut not efficiently used (Zhang et al., 2002; Sobel and Leeson, 2007).Access to data or information under government institutions is oftenconstrained by bureaucracy and consolidating shared information canbe hampered by multiple formats and incompatible data sets. The majorchallenge in achieving coordinated integrated risk management acrossscales is in establishing clear mechanisms for a networked program togenerate and exchange diverse experiences, tools, and information thatcan enable various DRR and CCA actors at different levels to use differentoptions available for reducing climate risks. Such a mechanism willsupport efforts to mainstream CCA and DRR into development, forexample, in the case of initiatives by UNDP; development organizationssuch as the World Bank, DFID, and the IADB; the Canadian InternationalDevelopment Agency; the European Commission; and so forth (Bensonand Twigg, 2007). Accounting for climate risks within the developmentcontext will, among other things, be effectively achieved whereappropriate information and knowledge of what is required exist andare known and shared efficiently (Ogallo, 2010).7.4.5.1. Knowledge AcquisitionKnowledge acquisition by nature is a complex, continuous, nonlinear,and life-long process that spans generations. Knowledge acquisition forDRR and CCA involves acquisition, documentation, and evaluation ofknowledge for its authenticity and applicability over time and beyond itspoint of origin (Rautela, 2005). Knowledge acquisition and documentationhas to focus on the shifting emphasis by the HFA from reactive emergencyrelief to proactive DRR approaches by aiming at strengthening prevention,mitigation, and preparedness and linking with changes in CCA thatinclude greater focus on local scales (refer to Section 7.4.3.2). TheGlobal Spatial Data Infrastructure (GSDI), which aims to coordinate andsupport the development of Spatial Data Infrastructures worldwide,provides important services for a proactive DRR approach (Köhler andWächter, 2006). One of the major breakthroughs facilitating the creationof the GSDI has been the development of interoperability standardsand technology that form a common foundation for the sharing andinteroperability of, for example, geospatial data. However, globalgeospatial data infrastructure is still largely underutilized for site- and/orapplication-specific needs (Le Cozannet et al., 2008; Di and Ramapriyan,2010).There are huge efforts in DRR- and CCA-related knowledge acquisition,development, and exchange by universities, government agencies,421