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Dr. Bui Duong Nghieu
                    Institute of Financial Science
                     Vietnam Ministry of Finance


                        Tokyo, April 2009
November 10, 2012                                    1
According to a 2005
World Bank report,
approximately 89
percent of Vietnam’s
GDP is located in
areas at risk due to
                          Sea-level rise of 30
impacts of at least
                          centimeters to one
two types of natural
                         meter over the next
hazards (Flood and
                                  100 years is
Storm).
                           expected, which is
                           projected to cause
                            capital value loss
                          every year of up to
                           US$17 billion if no
                         protective measures
                                    are taken.
                               [In the year of
                       research, 1998, VNse’
                         s GDP is 27,8 billion
                                      of USD]
November 10, 2012                           2
Contents

  Background
  Actual       measures for       natural   disaster
       mitigation in Vietnam
  Fund for Flood and Storm Prevention
  Self Reliance Fund for Natural Disaster
       Mitigation for Households
  Conclusions

November 10, 2012                                       3
November 10, 2012   4
Damage in Vietnam 2008
                                       Unit      Total           Only in
                                                 losses          2008 Hanoi
                                                                 flood
Human deaths person                    person             474            20
Human missing                                              64
Human injured                                             404
Houses collapsed and washed away       house          5,180
Houses flooded and damaged                          338,476
School collapsed and washed away       school              138
Schools damaged                                           1646
Hospitals collapsed and washed way     center               6
Hospital damaged                                           151
Agriculture (areas of crops flooded)   ha           473,403
Total estimated losses                 million             775          175
                                       USD
November 10, 2012                                                         5
Economic impacts

  Direct losses: the value of capital destroyed (much of
       this damage is public infrastructure) or damaged value
       of loss of life.
  Indirect losses: the loss of outputs and earnings,
       including the value of agricultural crops destroyed.
  Secondary impacts: the cost imputed to disruption of
       development plans, loss due to foregone new
       investment as damaged infrastructure is replaced,
       increased indebtedness, etc.


November 10, 2012                                               6
Disaster Impacts

  Natural disasters and climate change have:
       negative consequences for economic growth, both in
        the short term and the long term.
       cause significant fiscal pressure.
       Produce very negative effects to households,
        especially to the poor (loss of house, assets, crops,
        livestock, income, etc.).
  Economic and fiscal costs may not be easily
       visible. Normally, only the direct losses are
       counted.
November 10, 2012                                               7
Actual measures for natural disaster
mitigation
      State budget, including center and local government levels.
       Expenditures by Annual Budget Plan
       Expenditures by Contingent Liability: the maximum amount is 5% of total annual
        budget, normally is lower than that.
      Fund for Flood and Storm Preventions (FFSP)
      Urgent money
      Aid is also re-allocated for households, but it is:
       Charity, random, irregular,
       Lower than loss level
       Tardy (the collection and the distributions take much time)
      Credit
       Formal credit (via banks, especially Agriculture Bank and Social Policy Bank)
       Semi-credit (via civil institutions such as Woman’s Organization, etc.)
       Informal credit (with terrible rate)
      Insurance.

November 10, 2012                                                                        8
State Budget

  Budget expenditures allocate to the ministries and local authorities
         For public infrastructure (before and after natural disasters),
         For non-infrastructure solutions (Weather forecast, disaster ‘s map.),
         For disaster prevention (training, rehearsal, purchasing equipment for relief.)
         or for support for losses (urgent relief).
  Contingent Liability (a budget line) takes around 5% of total annual
       budget expenditures.
  Remarks:
       All money allocated by State Budget for disaster mitigation does not go
        directly to the households, excluding the money for support for losses as
        urgent relief.
       And always lower than the actual loss.




November 10, 2012                                                                           9
Relief

  Charity money is from organizational and
       individual donors, domestic and foreign.
  It is:
       very good for the households
       very random
       lower than loss level
       always late.



November 10, 2012                                 10
Credit

  Commercial banks don’t loan the money due
       to high risk.
  Several     non-commercial banks do lend
       money directly, but, the amount is very small.
       Currently, the highest possible loan is less than 300 US
        dollars.
  Informal credit is terrible in terms of interest
       rate.
November 10, 2012                                              11
Insurance

  Vietnamese insurance company “Bao Viet”
       piloted an agriculture insurance policy in
       1982, 1997
  French       insurance company “Groupama”
       offered an agriculture insurance in 2002 –
       2003.
  Both companies suffered losses.

November 10, 2012                               12
Fund for Flood &Storm Prevention
(the FFSP)

  Legal framework:
       Created in 1993 by an Ordinance (by the Standing
        Committee of National Assembly).
       Activated in 1997 by a Government Decree for
        establishment the FFSP
       Independent of the State Budget
       Non-profit.
  Model organization
       Administrated at the provincial and district levels,
       Not at the community and central levels.
November 10, 2012                                              13
Central Executive Board of
Central level : No FFSP
                                                       FSP



Province-level FFSP
                                      FFSP            FFSP            FFSP



  District-level FFSP




Community-level: No FFSP



                      Current organization structure of FFSP in Vietnam



 November 10, 2012                                                           14
Contributions

  Compulsory:
       Enterprises and economic organizations located at the
        areas (domestic and foreign)
       Citizens
             All Vietnamese citizens (males from 18 to 60 years old, and
              females from 18 to 55 years old).
  Voluntary:
       Voluntary contributions of international, domestic
        organizations and individuals (AID).

November 10, 2012                                                           15
How much is the compulsory
contributions?

  Citizens:
       0.5 US dollar: Members of agricultural households.
       1 US dollar: Members of non-agricultural households.
  Enterprises:
       0.02% of their total production and business capital
        but not exceeding VND 5 million (USD280) per year.
  Unnoticeable amount for the households and
       the enterprises.

November 10, 2012                                              16
Exemptions

  Who is exempted to contribute for the FFSP?
       The members of the poor households.
       The public interest enterprises.
       The agricultural cooperatives.
  The exemption policy of FFSP contributions are
       irrational, unfair:
       The FFSP covers all beneficiaries relating the natural disasters or
        climate change. It’s irrational and unfair if there are someone
        exempted to contribute for this fund.
       Some have benefited from another policy (for exp. Health
        insurance). So, it’s unfair to give them the exemption.
       Due to the exemptions for the poor, there are many localities that
        are not able to form FFSP (as most of them are poor communities
        – for example Laichau province)
November 10, 2012                                                         17
Activities

  Patrolling, guarding dykes in flood and storm
       seasons.
  Public awareness course on safety measures
       and reactions during floods and storms.
  Purchasing necessary equipments for relief
       and rescue to victims of floods and storms.


November 10, 2012                                    18
FFSP’s problems

  No community representation;
  Low contribution;
  Not self sufficient;
  No investment (unspent money unused);
  No insurance;
  No full time staff (the fund managed only by a
       part-time staff).
November 10, 2012                               19
Self Reliance Fund
         for Natural Disaster Mitigation
                for Households
                    (the SRF)


November 10, 2012                          20
Research contributors

  Contributing to the research are:
       Mr. Landis Mackeller (UNDP consultant)
       Mr. MacShall Silver (UNDP senior expert/disaster
        mitigation)
       Professor Jerry R. Skees (U. of Kentucky)
       Mr. Luzi Hitz (Director, Dept. of Natural Disasters
        Insurance Technique – Swiss Re)




November 10, 2012                                         21
Self Reliance Fund (SRF)

  Communal;
  Self financed;
  Not-for-profit;
  Self sufficient;
  Correlates with market economy rules;
  Households insured;
  Specialization.

November 10, 2012                          22
Central-level SRF                            Central SRF




                                Provincial        Provincial          Provincial
 Province –level SRF              SRF               SRF                 SRF




 District –level




Community –level SRF



                    Proposed structure of SRF for natural disaster mitigation
November 10, 2012                                                                  23
Insurance, Re-
                                        insurance, Multual-                 Capacity
                                             insurance                      building for
                                                                            managing
                                                                            disaster risk
 Govt. &
 Donors                           5. Premiums       5. Compensations



        1. Start-up capital
                                                                             Financial
                                            The SRF
                                                                            Investment
         Aid,         4.Urgent                                6. Ivest. &
        relief,       money                                   Revenues
       charity,
                                 2. Compulsory      2. Items-based
   3. Govt. subsidy for
                                  contributions     reimbursements
   poorest households

Awareness raising &
loans for strengthening                    Households         Enterprises
capacity against disaster

  November 10, 2012                                                                     24
Govt. &
Donors


      1. Start-up capital
                                          The SRF
       Aid,         4.Urgent
      relief,       money
     charity,
                               2. Compulsory    2. Items-based
                                contributions   reimbursements

 3. Govt. subsidy for
 poorest households
                                         Households      Enterprises


November 10, 2012                                                      25
Insurance, Re-
                                      insurance, Multual-
                                           insurance

Govt. &
Donors                          5. Premiums       5. Compensations



      1. Start-up capital
                                          The SRF
       Aid,         4.Urgent
      relief,       money
     charity,
                               2. Compulsory      2. Items-based
 3. Govt. subsidy for
                                contributions     reimbursements
 poorest households


                                         Households         Enterprises


November 10, 2012                                                         26
Insurance, Re-
                                      insurance, Multual-
                                           insurance

Govt. &
Donors                          5. Premiums       5. Compensations



      1. Start-up capital
                                                                           Financial
                                          The SRF
                                                                          Investment
     Aid, rel       4.Urgent                                6. Ivest. &
     ief, cha       money                                   Revenues
       rity,
                               2. Compulsory      2. Items-based
 3. Govt. subsidy for
                                contributions     reimbursements
 poorest households


                                         Households         Enterprises


November 10, 2012                                                                  27
Insurance, Re-
                                   insurance, Multual-                 Capacity
                                        insurance                      building for
                                                                       managing
                                                                       disaster risk
                             5. Premiums       5. Compensations




                                       The SRF




                            2. Compulsory      2. Items-based
                             contributions     reimbursements


Awareness raising &
loans for strengthening               Households         Enterprises
capacity against disaster

  November 10, 2012                                                                28
Insurance, Re-
                                        insurance, Multual-                 Capacity
                                             insurance                      building for
                                                                            managing
                                                                            disaster risk
 Govt. &
 Donors                           5. Premiums       5. Compensations



        1. Start-up capital
                                                                             Financial
                                            The SRF
                                                                            Investment
         Aid,         4.Urgent                                6. Ivest. &
        relief,       money                                   Revenues
       charity,
                                 2. Compulsory      2. Items-based
   3. Govt. subsidy for
                                  contributions     reimbursements
   poorest households

Awareness raising &
loans for strengthening                    Households         Enterprises
capacity against disaster

  November 10, 2012                                                                     29
Representative system
                                                          Re-insurance
                                                            market
                                     Multual
                                    Insurance




     House-                                                 Insurance
     holds                                                   market
                       SRF




                    Agriculture Insurance schemes.   Baoviet and Groupama
                               FAILED                  (1997, 2003-2004)


November 10, 2012                                                           30
Financial sources

  Start-up capital
       VNse Government: 50% of seed money
       Donors: 50% of seed money
  Compulsory contributions:
       Households
       Enterprises
  Voluntary contributions:
       Aid
       Relief
  Government subsidy for poorest households
  Revenues from financial investments
  Insurance compensations


November 10, 2012                              31
Compulsory contributions

                                      SRF                     FFSP
Enterprises :              0.05% (uncapped)         0.02%
                                                    Not over 280 USD per
                           Tax deductable           year
Households :
For the employed:          One day of salary        0.5 USD
For street merchants and   two USD per person per   0.5 USD
such                       year
For others (farm           one USD per person per   0.5 USD
workers/unemployed)        year
                           Subsidy from VNse-Govt   Exemption for poor
Why to set-up the SRF?

  The SRF can:
       Strengthen capacity for households to respond any
        natural disaster or climate change events (ex-ante);
       Finance ex ante for reduction of vulnerability faced to
        natural disasters or climate change hazards (ex-ante);
       Provide modest but timely and crucial supports to re-
        establish the household’s livelihoods (ex-post).
       Compensate for the households loss with insurance.
  In doing this, the fund will significantly reduce
       poverty.
November 10, 2012                                             33
Efficient management

  Random aid (avoid any type of overlap and
       possible fraud).
  Item-based assistance.
  Insurance compensation.
  Secure        and   low    risk    (e.g.   CAT
       bonds, governments bonds) investments.


November 10, 2012                               34
Supreme guarantee

  Agreement of SRF solvency in time of
       extreme catastrophe (from            Vietnamese
       Government and donors).
  There are two cases:
       Catastrophes come in the setting up period (3 to 5
        years).
       Catastrophes come after setting up period.



November 10, 2012                                        35
Conclusion

  As climate change exacerbates the frequency
   and impact of natural disasters, governments
   must learn to adapt and be self sufficient. The
   SRF would be isolated, ensuring relief and
   security to households. This, in turn, would
   lessen the government’s workload during natural
   disasters.
  Our slogan:
       You can give a man a fish, but it’s better to give him fishing
        equipment.

November 10, 2012                                                    36
Th a n k y ou for y our
                      a t t en ti on !


November 10, 2012                         37
SRF - 3 levels

                                            SRF
                                           Central


           SRF                             SRF                               SRF
         Province                        Province                          Province
   Community



               Community



                           Community




                                                   Community
                                       Community




                                                               Community



                                                                             Community



                                                                                         Community
      SRF



                  SRF



                              SRF




                                                      SRF
                                          SRF




                                                                  SRF



                                                                                SRF



                                                                                            SRF
Central budget
                                              State
                                             budget
                                                                  Local budget




                    Province-level budget        Budget of     Budget of    Budget of
                                                               province B   province C
                                                 province A




                    District-level budget




                    Community-level budget




             Current model of State budget system in Vietnam



November 10, 2012                                                                        39
Central Steering Board of FFSP
                                                                Central Steering
                                                                 board of FFSP




                    Province-level
                    steering board of FFSP           Steering      Steering        Steering
                                                     board of      board of        board of
                                                      FFSP          FFSP            FFSP




                    District –level
                    steering board of FFSP




                    Community-level
                    steering board of FFSP



                      Organization structure of current Steering board of
                             Flood and Storm prevention (FSP )



November 10, 2012                                                                             40

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Final draft nghieu's presentation on disaster mitigation in vn (in tokyo's workshop)

  • 1. Dr. Bui Duong Nghieu Institute of Financial Science Vietnam Ministry of Finance Tokyo, April 2009 November 10, 2012 1
  • 2. According to a 2005 World Bank report, approximately 89 percent of Vietnam’s GDP is located in areas at risk due to Sea-level rise of 30 impacts of at least centimeters to one two types of natural meter over the next hazards (Flood and 100 years is Storm). expected, which is projected to cause capital value loss every year of up to US$17 billion if no protective measures are taken. [In the year of research, 1998, VNse’ s GDP is 27,8 billion of USD] November 10, 2012 2
  • 3. Contents  Background  Actual measures for natural disaster mitigation in Vietnam  Fund for Flood and Storm Prevention  Self Reliance Fund for Natural Disaster Mitigation for Households  Conclusions November 10, 2012 3
  • 5. Damage in Vietnam 2008 Unit Total Only in losses 2008 Hanoi flood Human deaths person person 474 20 Human missing 64 Human injured 404 Houses collapsed and washed away house 5,180 Houses flooded and damaged 338,476 School collapsed and washed away school 138 Schools damaged 1646 Hospitals collapsed and washed way center 6 Hospital damaged 151 Agriculture (areas of crops flooded) ha 473,403 Total estimated losses million 775 175 USD November 10, 2012 5
  • 6. Economic impacts  Direct losses: the value of capital destroyed (much of this damage is public infrastructure) or damaged value of loss of life.  Indirect losses: the loss of outputs and earnings, including the value of agricultural crops destroyed.  Secondary impacts: the cost imputed to disruption of development plans, loss due to foregone new investment as damaged infrastructure is replaced, increased indebtedness, etc. November 10, 2012 6
  • 7. Disaster Impacts  Natural disasters and climate change have:  negative consequences for economic growth, both in the short term and the long term.  cause significant fiscal pressure.  Produce very negative effects to households, especially to the poor (loss of house, assets, crops, livestock, income, etc.).  Economic and fiscal costs may not be easily visible. Normally, only the direct losses are counted. November 10, 2012 7
  • 8. Actual measures for natural disaster mitigation  State budget, including center and local government levels.  Expenditures by Annual Budget Plan  Expenditures by Contingent Liability: the maximum amount is 5% of total annual budget, normally is lower than that.  Fund for Flood and Storm Preventions (FFSP)  Urgent money Aid is also re-allocated for households, but it is:  Charity, random, irregular,  Lower than loss level  Tardy (the collection and the distributions take much time)  Credit  Formal credit (via banks, especially Agriculture Bank and Social Policy Bank)  Semi-credit (via civil institutions such as Woman’s Organization, etc.)  Informal credit (with terrible rate)  Insurance. November 10, 2012 8
  • 9. State Budget  Budget expenditures allocate to the ministries and local authorities  For public infrastructure (before and after natural disasters),  For non-infrastructure solutions (Weather forecast, disaster ‘s map.),  For disaster prevention (training, rehearsal, purchasing equipment for relief.)  or for support for losses (urgent relief).  Contingent Liability (a budget line) takes around 5% of total annual budget expenditures.  Remarks:  All money allocated by State Budget for disaster mitigation does not go directly to the households, excluding the money for support for losses as urgent relief.  And always lower than the actual loss. November 10, 2012 9
  • 10. Relief  Charity money is from organizational and individual donors, domestic and foreign.  It is:  very good for the households  very random  lower than loss level  always late. November 10, 2012 10
  • 11. Credit  Commercial banks don’t loan the money due to high risk.  Several non-commercial banks do lend money directly, but, the amount is very small.  Currently, the highest possible loan is less than 300 US dollars.  Informal credit is terrible in terms of interest rate. November 10, 2012 11
  • 12. Insurance  Vietnamese insurance company “Bao Viet” piloted an agriculture insurance policy in 1982, 1997  French insurance company “Groupama” offered an agriculture insurance in 2002 – 2003.  Both companies suffered losses. November 10, 2012 12
  • 13. Fund for Flood &Storm Prevention (the FFSP)  Legal framework:  Created in 1993 by an Ordinance (by the Standing Committee of National Assembly).  Activated in 1997 by a Government Decree for establishment the FFSP  Independent of the State Budget  Non-profit.  Model organization  Administrated at the provincial and district levels,  Not at the community and central levels. November 10, 2012 13
  • 14. Central Executive Board of Central level : No FFSP FSP Province-level FFSP FFSP FFSP FFSP District-level FFSP Community-level: No FFSP Current organization structure of FFSP in Vietnam November 10, 2012 14
  • 15. Contributions  Compulsory:  Enterprises and economic organizations located at the areas (domestic and foreign)  Citizens  All Vietnamese citizens (males from 18 to 60 years old, and females from 18 to 55 years old).  Voluntary:  Voluntary contributions of international, domestic organizations and individuals (AID). November 10, 2012 15
  • 16. How much is the compulsory contributions?  Citizens:  0.5 US dollar: Members of agricultural households.  1 US dollar: Members of non-agricultural households.  Enterprises:  0.02% of their total production and business capital but not exceeding VND 5 million (USD280) per year.  Unnoticeable amount for the households and the enterprises. November 10, 2012 16
  • 17. Exemptions  Who is exempted to contribute for the FFSP?  The members of the poor households.  The public interest enterprises.  The agricultural cooperatives.  The exemption policy of FFSP contributions are irrational, unfair:  The FFSP covers all beneficiaries relating the natural disasters or climate change. It’s irrational and unfair if there are someone exempted to contribute for this fund.  Some have benefited from another policy (for exp. Health insurance). So, it’s unfair to give them the exemption.  Due to the exemptions for the poor, there are many localities that are not able to form FFSP (as most of them are poor communities – for example Laichau province) November 10, 2012 17
  • 18. Activities  Patrolling, guarding dykes in flood and storm seasons.  Public awareness course on safety measures and reactions during floods and storms.  Purchasing necessary equipments for relief and rescue to victims of floods and storms. November 10, 2012 18
  • 19. FFSP’s problems  No community representation;  Low contribution;  Not self sufficient;  No investment (unspent money unused);  No insurance;  No full time staff (the fund managed only by a part-time staff). November 10, 2012 19
  • 20. Self Reliance Fund for Natural Disaster Mitigation for Households (the SRF) November 10, 2012 20
  • 21. Research contributors  Contributing to the research are:  Mr. Landis Mackeller (UNDP consultant)  Mr. MacShall Silver (UNDP senior expert/disaster mitigation)  Professor Jerry R. Skees (U. of Kentucky)  Mr. Luzi Hitz (Director, Dept. of Natural Disasters Insurance Technique – Swiss Re) November 10, 2012 21
  • 22. Self Reliance Fund (SRF)  Communal;  Self financed;  Not-for-profit;  Self sufficient;  Correlates with market economy rules;  Households insured;  Specialization. November 10, 2012 22
  • 23. Central-level SRF Central SRF Provincial Provincial Provincial Province –level SRF SRF SRF SRF District –level Community –level SRF Proposed structure of SRF for natural disaster mitigation November 10, 2012 23
  • 24. Insurance, Re- insurance, Multual- Capacity insurance building for managing disaster risk Govt. & Donors 5. Premiums 5. Compensations 1. Start-up capital Financial The SRF Investment Aid, 4.Urgent 6. Ivest. & relief, money Revenues charity, 2. Compulsory 2. Items-based 3. Govt. subsidy for contributions reimbursements poorest households Awareness raising & loans for strengthening Households Enterprises capacity against disaster November 10, 2012 24
  • 25. Govt. & Donors 1. Start-up capital The SRF Aid, 4.Urgent relief, money charity, 2. Compulsory 2. Items-based contributions reimbursements 3. Govt. subsidy for poorest households Households Enterprises November 10, 2012 25
  • 26. Insurance, Re- insurance, Multual- insurance Govt. & Donors 5. Premiums 5. Compensations 1. Start-up capital The SRF Aid, 4.Urgent relief, money charity, 2. Compulsory 2. Items-based 3. Govt. subsidy for contributions reimbursements poorest households Households Enterprises November 10, 2012 26
  • 27. Insurance, Re- insurance, Multual- insurance Govt. & Donors 5. Premiums 5. Compensations 1. Start-up capital Financial The SRF Investment Aid, rel 4.Urgent 6. Ivest. & ief, cha money Revenues rity, 2. Compulsory 2. Items-based 3. Govt. subsidy for contributions reimbursements poorest households Households Enterprises November 10, 2012 27
  • 28. Insurance, Re- insurance, Multual- Capacity insurance building for managing disaster risk 5. Premiums 5. Compensations The SRF 2. Compulsory 2. Items-based contributions reimbursements Awareness raising & loans for strengthening Households Enterprises capacity against disaster November 10, 2012 28
  • 29. Insurance, Re- insurance, Multual- Capacity insurance building for managing disaster risk Govt. & Donors 5. Premiums 5. Compensations 1. Start-up capital Financial The SRF Investment Aid, 4.Urgent 6. Ivest. & relief, money Revenues charity, 2. Compulsory 2. Items-based 3. Govt. subsidy for contributions reimbursements poorest households Awareness raising & loans for strengthening Households Enterprises capacity against disaster November 10, 2012 29
  • 30. Representative system Re-insurance market Multual Insurance House- Insurance holds market SRF Agriculture Insurance schemes. Baoviet and Groupama FAILED (1997, 2003-2004) November 10, 2012 30
  • 31. Financial sources  Start-up capital  VNse Government: 50% of seed money  Donors: 50% of seed money  Compulsory contributions:  Households  Enterprises  Voluntary contributions:  Aid  Relief  Government subsidy for poorest households  Revenues from financial investments  Insurance compensations November 10, 2012 31
  • 32. Compulsory contributions SRF FFSP Enterprises : 0.05% (uncapped) 0.02% Not over 280 USD per Tax deductable year Households : For the employed: One day of salary 0.5 USD For street merchants and two USD per person per 0.5 USD such year For others (farm one USD per person per 0.5 USD workers/unemployed) year Subsidy from VNse-Govt Exemption for poor
  • 33. Why to set-up the SRF?  The SRF can:  Strengthen capacity for households to respond any natural disaster or climate change events (ex-ante);  Finance ex ante for reduction of vulnerability faced to natural disasters or climate change hazards (ex-ante);  Provide modest but timely and crucial supports to re- establish the household’s livelihoods (ex-post).  Compensate for the households loss with insurance.  In doing this, the fund will significantly reduce poverty. November 10, 2012 33
  • 34. Efficient management  Random aid (avoid any type of overlap and possible fraud).  Item-based assistance.  Insurance compensation.  Secure and low risk (e.g. CAT bonds, governments bonds) investments. November 10, 2012 34
  • 35. Supreme guarantee  Agreement of SRF solvency in time of extreme catastrophe (from Vietnamese Government and donors).  There are two cases:  Catastrophes come in the setting up period (3 to 5 years).  Catastrophes come after setting up period. November 10, 2012 35
  • 36. Conclusion  As climate change exacerbates the frequency and impact of natural disasters, governments must learn to adapt and be self sufficient. The SRF would be isolated, ensuring relief and security to households. This, in turn, would lessen the government’s workload during natural disasters.  Our slogan:  You can give a man a fish, but it’s better to give him fishing equipment. November 10, 2012 36
  • 37. Th a n k y ou for y our a t t en ti on ! November 10, 2012 37
  • 38. SRF - 3 levels SRF Central SRF SRF SRF Province Province Province Community Community Community Community Community Community Community Community SRF SRF SRF SRF SRF SRF SRF SRF
  • 39. Central budget State budget Local budget Province-level budget Budget of Budget of Budget of province B province C province A District-level budget Community-level budget Current model of State budget system in Vietnam November 10, 2012 39
  • 40. Central Steering Board of FFSP Central Steering board of FFSP Province-level steering board of FFSP Steering Steering Steering board of board of board of FFSP FFSP FFSP District –level steering board of FFSP Community-level steering board of FFSP Organization structure of current Steering board of Flood and Storm prevention (FSP ) November 10, 2012 40