A-P03 · TOPIC · public-investment-and-resiliGRA dossier · service level R0
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Topic dossier · Disaster Risk Finance

Public investment and resilience

The cheapest disaster to finance is the one that causes less damage. Public investment in resilient infrastructure, building codes, land-use planning and early warning reduces the losses that later need financing. Getting there requires appraisal methods that count avoided losses and budgets that fund maintenance. This page sets out how resilience enters public investment, how it is measured, and who decides.

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Layers 2

Activity and exposure, for this page

Latest available

NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Blue Marble (NASA) · © OpenStreetMap contributors (ODbL) · Natural Earth

Loading the latest NASA imagery.

Drag to move. Ctrl or ⌘ and scroll, pinch or the buttons to zoom; hover for the values under the pointer; reset returns to the region.

For public investment and resilience, in GRA's spatial-finance reading, the map opens on population density and night lights with built-up and settlement extent from NASA GIBS, framed on Pacific Island states; 4 further NASA layers wait in the list.Satellite and model products as NASA publishes them, each with its own date; indicators, not assessments of any place; claim ceiling INTEGRATED.

Data: NASA GIBS · ASTER GDEM · Blue Marble · © OpenStreetMap contributors · Natural Earth · GDACS · USGS · CIESIN/Columbia, NASA SEDAC HBASESources and licences

  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Center for International Earth Science Information Network (CIESIN), Columbia University. 2018. Gridded Population of the World, Version 4 (GPWv4): Population Density, Revision 11. NASA Socioeconomic Data and Applications Center (SEDAC). Licensed under CC BY 4.0. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). CC BY 4.0
  • VIIRS Black Marble night-time lights, NASA Goddard Space Flight Center; distributed by the NASA Level-1 and Atmosphere Archive and Distribution System (LAADS DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • VIIRS near-real-time products (flood, land surface temperature, snow cover, corrected reflectance), NASA LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • NASA Fire Information for Resource Management System (FIRMS), VIIRS 375 m active fire product, NASA LANCE; vector tiles via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • ASTER GDEM is a product of METI and NASA (ASTER Global Digital Elevation Model V003, NASA LP DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. Public domain
  • © OpenStreetMap contributors (ODbL), via NASA GIBS (coastlines, boundaries, roads and place names). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). ODbL
  • Blue Marble, NASA Earth Observatory; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Context on the globe and flat map: coastlines, boundaries, roads and place names from NASA GIBS reference layers (OpenStreetMap data, ODbL, © OpenStreetMap contributors); Blue Marble imagery as an optional base; 3D terrain and the elevation read-out from the ASTER GDEM elevation colour index (5 m to 200 m classes, exaggerated for legibility). Boundaries are drawn as published and imply no position on any territory.
  • Globe: MapLibre GL JS 6.9.1, BSD-3-Clause, © MapLibre contributors.
  • Live: GDACS (EC JRC / UN OCHA) Events are indicative, not official warnings.
  • Live: USGS Events are indicative, not official warnings.
  • Context: CIESIN/Columbia, NASA SEDAC HBASE. Center for International Earth Science Information Network (CIESIN), Columbia University, and NASA Socioeconomic Data and Applications Center (SEDAC): Global Human Built-up And Settlement Extent (HBASE) 2010; Seto, Guneralp and Hutyra 2012, Global Grid of Probabilities of Urban Expansion to 2030; Global Urban Heat Island (UHI) Data Set, 2013.
  • Optional layers (5 sources in the layer list: live, forecast, observed and context) print their provider credit on the map and here when switched on; forecasts are model output and derived indices are estimates.

Layers and dates

  • Population density, 2020: Population: CIESIN, Columbia University, Gridded Population of the World v4.11 (2018), NASA SEDAC, CC BY 4.0 · static
  • Night-time lights, daily: VIIRS Black Marble (VNP46A2), NASA LAADS DAAC · 12 Oct 2026
  • Flood water, 3-day composite: VIIRS Global Flood Product, NASA LANCE · 14 Oct 2026
  • Active fires and thermal anomalies, last day: VIIRS NOAA-20 375 m (FIRMS), NASA LANCE FIRMS · 13 Oct 2026
  • Land surface temperature, day, 8-day composite: VIIRS NOAA-20 Level 3, 8-day, NASA LANCE · 14 Sep 2026
  • True colour: VIIRS NOAA-20 corrected reflectance, NASA LANCE · 13 Oct 2026

01In brief

The short answer.

Resilient public investment is public spending on infrastructure, codes, planning and warning designed to reduce future disaster losses. Appraisal that counts avoided losses, funded maintenance and careful siting decide its effect. Planning and finance ministries, infrastructure agencies and development banks hold the decisions.

02Console

Parametric trigger monitor, in outline.

The working screen behind this subject: its structure, terms and states. Names are placeholders and values illustrative.

Parametric trigger monitor

Public investment and resilience · Sovereign C · Season 2

Index approaching triggerGRA · Disaster Risk Finance

Index vs trigger

Payment structure

Attachment630Close
Mid7655Not met
Exhaustion92100Not met

Risk layers

local m, pre-arranged

Contingency budget52 mContingent credit113 mParametric cover88 mFunding gap, 1-in-50197 m

Payment to people

  1. Triggeragent confirms
  2. Payment11 days
  3. Treasurytransfer
  4. Social protectionscale-up
  5. Householdscash
Parametric trigger monitor: the screen's structure, terms and states for Public investment and resilience.Placeholder names and illustrative values; a design, not a record or a live system.
03The question

Public investment and resilience: how the risk develops.

Risk-sensitive budget and capital projects. The dossier below sets out how the risk develops, what is measured, where the data come from, how it is modelled and who decides.

Mechanism

Appraisal misses avoided losses

Standard cost-benefit appraisal often ignores disaster risk or counts only direct damage. Including avoided losses, disruption and co-benefits changes which projects rank highest.

Mechanism

Maintenance is underfunded

New assets are funded; upkeep is not. Poorly maintained drains, embankments and roads fail in events they were designed to withstand.

Mechanism

Location decides exposure

Building in floodplains or on unstable slopes locks in risk for decades. Land-use rules and siting decisions shape future losses more than engineering alone.

Mechanism

Benefits are invisible

Avoided losses do not appear in any account. Budget processes reward visible projects over prevention whose success is a disaster that did not happen.

04Key terms

Terms used on this page.

Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.

TermDefinition
Avoided lossesDamage and disruption that do not occur because of a risk reduction measure.
Benefit-cost ratioThe present value of a project's benefits divided by the present value of its costs.
Public investment managementThe institutions and processes governments use to plan, appraise, select and deliver public investment.
05Indicators

What is measured, and how well.

Each indicator carries its unit, its cadence, the kind of source behind it and the evidence label a value would carry. No values are shown: a programme supplies them under its own authority.

IndicatorUnitCadenceSource typeLabel
Public investment projects screened for disaster riskshare of approved projectsannualPublic investment management recordsDECLARED
Maintenance spending on public infrastructurecurrency and share of asset valueannualBudget executionOFFICIAL
Infrastructure assets in high-hazard zonescount or valueperiodicAsset registers and hazard mapsMODELLED
Benefit-cost ratio of risk reduction investmentsratioper appraisalProject appraisalsMODELLED
Building code adoption and enforcementcategoricalon changeNational building regulationsOFFICIAL
Public investment management assessment scoresscore by institutionon assessmentIMF PIMA reportsOFFICIAL
06Canvas

From sources to decisions.

The topic as a computational graph: named sources feed the methods, an evidence review gates the outputs, and the decisions stay with the authorities that hold them.

Pipeline canvas · Public investment and resilience as a run graphDesign, not a record
Public investment and resilience: disaster risk finance by layersThe risk profile is split into layers: frequent events from contingency budgets, less frequent from contingent credit, rare from insurance or risk transfer; pre-agreed plans and triggers make funds reach people fast. Design of the process, not a record of a run.

Fig. 02Nodes carry their type, two metric rows and a state; connectors show what feeds what; dashed frames name the owners; the timeline is the cadence. Design of the pipeline, not a record of a run.

07Sources

Where the evidence comes from.

Named public datasets and institutional records, each with its licence class. Sources by agreement are used only under their terms and never republished.

SourceWhat it givesLicence class
IMF Public Investment Management AssessmentsQuality of public investment institutions including climateFree, IMF terms
World Bank Lifelines report and resilient infrastructure workAnalysis of infrastructure disruption and resilience benefitsFree, World Bank terms
Coalition for Disaster Resilient Infrastructure reportsInfrastructure resilience practice and dataFree to read, terms to check
National Institute of Building Sciences mitigation saves studiesBenefit-cost analysis of hazard mitigation in the United StatesFree to read, terms to check
OECD infrastructure resilience guidancePolicy guidance on resilient infrastructureFree, OECD terms
08Decisions

Who decides, and what the evidence serves.

Disaster Risk Finance prepares evidence. The decisions below are taken by the authorities named, under their own rules, and never by the platform.

Who decidesThe questionEvidence this page serves
Planning and finance ministriesHow appraisal rules treat disaster riskAppraisal methods and comparable practice
Infrastructure agenciesWhich assets to strengthen, maintain or relocateAsset exposure and condition data
Local land-use authoritiesWhere development may proceedHazard maps and loss evidence
Development banksWhich resilience investments to financeBenefit-cost evidence and country priorities

Outputs this topic produces

  • Guide to including disaster risk in project appraisal
  • Method note on avoided-loss benefit-cost analysis
  • Comparative notes on maintenance budgeting
  • Questions for planning ministries on siting
09Core questions

The questions experts ask.

  • Are new public investments located and designed with disaster risk in mind?
  • How are the benefits of resilience investment, mostly avoided losses, valued in budget decisions?
  • How is maintenance funded, so that assets keep their resilience over time?
  • How do climate projections enter design standards for long-lived assets?
  • How do budget processes track and prioritize resilience spending?
10Mechanisms

Risk in the public investment cycle.

Public investment management covers appraisal, selection, implementation and maintenance of capital projects. Disaster risk can enter at each stage: appraisal can include hazard exposure and avoided losses, selection can prioritize resilience, implementation can apply appropriate standards, and maintenance budgets can preserve performance. In practice, avoided losses are hard to see and easy to discount, while upfront costs are visible, so resilience is often under-funded.

Long-lived assets such as bridges, ports and hospitals will face hazard conditions that differ from those in historical records. Design approaches that consider a range of future climates, or that allow later upgrades, can reduce the risk of costly failure. Maintenance is frequently neglected in budgets, and deferred maintenance erodes resilience before a disaster reveals it.

Budget tagging, which identifies resilience and climate-related spending in budgets, helps governments see and manage these investments, though definitions vary.

Financing and investment interact. Governments that understand their contingent liabilities can see more clearly how resilience investment reduces future fiscal exposure, and some disaster finance arrangements reward or require risk reduction, linking ex ante investment with ex post protection.

11Methods and data

Methods and their limits.

Appraisal

Cost-benefit analysis

Including avoided losses in project appraisal; results depend on hazard probabilities and discount rates.

Planning

Robust decision methods

Testing designs across many futures; demands data and expertise.

Budgeting

Budget tagging

Identifying resilience spending in budgets; classification is partly subjective.

Limits: avoided losses are uncertain and hard to verify, and appraisal results are sensitive to assumptions about future hazards and discounting.

12Methods

How it is studied, and what the methods cannot say.

  1. Economics and development economicsCost of ex post versus ex ante finance · Household welfare effects · Fiscal impact of disastersApplied here
  2. Decision analysis under uncertaintyChoosing an instrument mix · Trigger threshold choice · Release rules for contingency fundsApplied here
  3. Forecasting and time-series analysisForecast verification for triggers · Seasonal outlooks for drought financeApplied here
13Questions

Questions and answers.

Does disaster risk reduction pay for itself?
Studies in specific contexts report benefits exceeding costs for many mitigation measures, but results depend on hazard, location, discount rate and what is counted.
What is a public investment management assessment?
An IMF tool that assesses the institutions governments use to plan, allocate and implement public investment, including a climate module.
Why does maintenance matter for disaster finance?
Because poorly maintained assets fail in events they were built to withstand, creating losses that then need financing.
Is resilience investment always worthwhile?
Not always. Returns depend on hazard, exposure and cost; appraisal helps identify where investment is most effective.
Does GRA appraise projects?
No. GRA does not appraise, rate or recommend projects.
Why is maintenance part of disaster finance?
Because poorly maintained assets fail more readily in disasters, raising the costs governments must then meet.
Disaster Risk Finance

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