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Fiscal Resilience to Natural Disasters

Lessons from Country Experiences

image of Fiscal Resilience to Natural Disasters

Natural disasters continue to cause widespread damage and losses, with fast growing economies particularly exposed. Governments often shoulder a significant share of the costs of disaster recovery and reconstruction. This is true in OECD countries and even more so in developing economies, where private insurance markets are not as well developed. The fiscal impact of disasters on a government’s budget can be sizeable. Expenditures for the government arise from both explicit and implicit commitments to compensate for disaster losses. This report presents the results of a study that compares country practices in the management of the financial implications of disasters on government finances for a set of OECD member and partner countries particularly exposed to natural hazards.

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France

Due to its diverse topography and distinct climates, France is exposed to a wide range of natural hazards. Mainland France is surrounded by long coastlines, major river systems such as the Seine and the Rhône as well as mountain ranges, including the Pyrenees and the Alps, characterise France’s territory. The overseas regions and departments (régions d’outre-mer ROM and départements d’outre-mer, DOM) Overseas regions: Guadeloupe, French Guiana, Martinique, Réunion, Mayotte.Overseas collectivities: French Polynesia, Saint Pierre and Miquelon, Wallis and Futuna, Saint Martin, Saint Barthélemy.Overseas territories: French Southern and Antarctic Lands. are characterised by their tropical climate, with some of them home to active volcanoes (French Antilles, la Réunion) (OECD, 2017).

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