Measuring the Cost-effectiveness of Various DRM Measures

The Japanese experience shows that if
done right- preventive investments pay. The Japanese
government invested about 7 to 8 percent of the total budget
for disaster risk management (DRM) in the 1960s, a move that
most probably decreased disaster deaths. Cost-effectiveness
analysis (CEA) and cost-benefit analysis (CBA) of DRM
projects have been widely implemented both at national and
local levels in Japan. Different procedures for such
analysis have been followed according to the type of
project, the funds, and the governing entity responsible.
The Japanese experience shows that CBA is applicable to DRM
related projects and is a useful tool in choosing among
different options and understanding the effectiveness of a
project. This report gives introduction; findings; lessons;
and recommendations for developing countries.