Author: Christopher Addison - Sonya Salanti of SEEP Network
Earthquakes. Fire. Floods. Chemical spills. Conflict. Impacts of these disasters bring to mind loss of lives and livelihoods, disruption to communities and vulnerable populations struggling to recover and cope. The impact of disasters on financial inclusion and the role financial service providers play—or don’t play—in disaster risk reduction is not an immediate consideration when preparing for or responding to such emergencies. However, disaster preparedness and response is exceptionally important in the context of financial inclusion. Countries with higher concentrations of poverty, weak infrastructure and poor public services are more at risk. Experience has shown that financial institutions serving at-risk populations are as vulnerable as their clients to these disasters and crises. While the initial humanitarian and emergency response to crisis is crucial, there is a growing recognition of the value of disaster risk reduction (DRR) strategies in preparing for and thus reducing economic losses associated with disasters. In an effort to raise awareness around this important topic, the SEEP Network’s global Disaster Risk Reduction (DRR) Program, funded by the Citi Foundation, seeks to promote more resilient financial services markets in which financial service providers (FSPs) and their clients have the capacity to better anticipate, cope and recover from the negative impacts of disasters.