This note provides information relevant to the agreement of target (iii) of the draft Post-2015 Framework for Disaster Risk Reduction (DRR), on economic loss, which reads: [Substantially] reduce direct disaster economic loss [by a given percentage] in relation to GDP by 2030 and its variant.
The term ‘economic loss’ encompasses changes in wealth caused by damage to structures or other physical assets. These can be direct (those resulting from building and infrastructure damage) or indirect (those that follow on from physical damage). These can be reflected in market effects (e.g. loss of income owing to disaster-caused destruction) as well as non-market effects (e.g. loss of leisure time owing to longer commutes as a result of a disaster).
This note was produced as part of a series of briefings to give those without expert knowledge on DRR the key facts relating to the areas under negotiation at the World Conference on Disaster Risk Reduction (WCDRR). The conference was held in Sendai, Japan, 14-18 March 2015, the outcome of which was the Sendai Framework for Disaster Risk Reduction 2015-2030.
Read more about ODI's engagement at the 2015 World Conference on Disaster Risk Reduction.