19th November 2023

New report shows pre-arranged financing accounted for just 2.7%($1.9bn) of the total $71bn in crisis financing flows in 2021

The Centre for Disaster Protection has published its inaugural annual report, "The State of Pre-arranged Financing for Disasters 2023", a significant milestone in understanding, measuring and advancing pre-arranged financing(PAF).
Collating the best available data to start to assess and monitor annually what matters in a world of increasing disaster risk, the report reveals that the small volume of international development financing for PAF reported to the Organisation for Economic Cooperation and Development Development Assistance Committee is still not reaching the poorest and most vulnerable countries.
Key findings include:
-2.7%: total share of the $71bn international crisis financing that was used for pre-arranged finance in 2021 (total figure was $1.9bn).
-3.7%: total percentage of international development financing for PAF that reached low-income countries between 2017 and 2021(total figure was $200.8m).
-Across 2017–2021, high-income countries received the highest levels of international development financing for PAF per capita($12.4) and low-income countries the lowest ($0.3). This contrasts with a much more pro-poor distribution of Official Development Assistance(ODA) overall.
-Just 0.2%($78m) of humanitarian funding reported to the OECD DAC in 2021 was funding for anticipatory action. Unlike most PAF, anticipatory action is strongly concentrated in the poorest and most vulnerable places.