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Financial Flow Analysis for Climate-Related Disasters in Bangladesh

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The objective of the study “Financial Flow Analysis for Climate-related Disaster in Bangladesh” has been three-fold. First, it has provided a background of the trend of funding flows entering the country to address climate-related disasters; then the funding gap has been analyzed considering the funding that was applied for collectively by the humanitarian actors and what was subsequently received from different donors; finally, the study explored the crisis anticipation and response mechanisms of Start Fund Bangladesh (SFB) to gain a better understanding of its recent activities.

The first part of the report, funding flows into Bangladesh, shows that major disasters in Bangladesh that have been highlighted over the years include monsoon floods, riverbank erosion, cyclones, flash floods, and landslides. Of these, monsoon floods and cyclones have harnessed the majority of the funding due to their widespread impact and increasing frequency over the years. All the mentioned disasters have received their support from institutional, pooled, private funding, with institutional donors providing almost 65% of the total fund. Civil society organizations, meaning NGOs, have been on the receiving end in the majority, with more than 60% of funding going to NGOs (i.e., mostly international NGOs while the residual has gone to UN organizations). These agencies have spent the fund through sector-wide allocations with more than 20% fund being directed for food security followed by WASH, Shelter, Early Recovery, and GBV. Post-disaster management has significantly been undertaken by financial institutional partners who have worked alongside the government to build resilience, infrastructure, and better communication. Among these, the major partners have been the World Bank, Asian Development Bank, and JICA.

The second part of the study analyzes the funding gap considering the HCTT appeals and the subsequent funding that was received. The three major disasters, monsoon floods with riverbank erosion, cyclones and storm surge and landslides have shown funding gaps of 39%, 44%, and 87% respectively. However, the funding gap has been seen to reduce over the years after the formation of HCTT HRP plans.

The study also explored the SFB mechanism. In the last 4 years since its inception in 2017, the Start Fund has activated 29 crisis alerts and successfully addressed underfunded crises as well as larger disasters which could entail a localized response, spreading its response across 33 districts of the country. The SFB has also implemented 3 anticipatory responses through the prediction of upcoming disasters. While the overall funding scenario of the country’s humanitarian architecture shows majority funding going to international NGOs, the SFB has allocated 85% of its total funding directly to local and national NGOs who are members of its network. From all the crises the SFB has addressed flood, cyclone, riverbank erosion, recurring disease outbreak (dengue) which are somewhat predictable.