JICA Ogata Research Institute


Working Papers

No.202 Bridging the Gaps in Infrastructure Investment for Flood Protection in Asia

Investment is crucial in mitigating damage caused by flooding and the Sendai Framework for Disaster Risk Reduction (DRR) emphasizes it as a priority action. Policy makers need estimates of financial impact to consider investing in DRR, but such estimates are rarely available.

This paper aims to estimate the financial gaps relating to infrastructure for flood protection in Asia and proposes polices and approaches to filling these gaps. It was found that nine major flood-prone economies in the region invested USD33.6 billion in flood protection, or 0.21 percent of their GDP, in 2015. Regression analysis suggests that the annual demand for flood protection infrastructure in developing Asia will be USD94.5 billion, or USD98.4 billion with climate change effects, for the period 2016-2030. The financing gap between future needs and current investment levels is around USD61 billion, USD65 billion with climate change effects annually, or around 0.24 percent of GDP in developing Asia. Developing economies thus need to turn flood disasters into opportunities for expanding this type of investment.

By reviewing the past experience of the People’s Republic of China, the Philippines, and Japan, it is clear that integrating flood protection in national development planning and formulating sectoral long-term plans are effective in securing commitment to investment. Increasing finance for climate change adaptation and mobilizing the financial resources of the private sector can be used as other sources. Also, innovative approaches are needed to decrease costs and achieve sustainability.

Keywords: Disaster risk reduction, multiple regression analysis, Sendai Framework for Disaster Risk Reduction, national development plan

Top of Page