Hyogo Framework for Action 2005-2015: Building the Resilience
of Nations and Communities to Disasters” recognises
in its priority areas the reduction of the underlying risk
factors to build a safer world and identified a number of
measures that will help reduce the impact of hazards on poor
Hyogo Framework for Action recommends to:
the Implementation of social safety net mechanisms
to assist the poor and other populations affected
diversified income options for populations in high
risks areas to reduce their vulnerability to hazards.
the development of financial risk sharing mechanisms
particularly insurance and reinsurance against
the establishment of public private partnerships
to better engage the private sector in disaster
risk reduction activities.
To achieve the Millennium
Developments Goals and reduce poverty
before 2015, we must find mechanisms that work and actively implement
Micro credit has proven its value in many countries as a weapon
against poverty and hunger. With access to micro credit, people
with low incomes
can earn more and better protect themselves against unexpected
setbacks and losses. Micro credit and micro finance in general
are not yet fully
utilized as tools for reducing disaster impacts, but some concrete
experiences in India and Bangladesh have shown their potential
and highlight the need to further explore these opportunities.
of micro finance for disaster risk management is still somewhat
experimental, but communities should explore its various flexible
impacts for poverty reduction.
The UN General Assembly designated the year 2005 as the International
Year of Micro credit (resolution
53/197), stating that the Year
will provide an important opportunity to give impetus to microfinance
throughout the world.
The United Nations Capital Development Fund (UNCDF) and the United
Nations Department of Economic and Social Affairs (UNDESA)
are coordinating the Year and organizing a series of events
the world. For
more information about the campaign, please see: http://www.yearofmicrocredit.org
The five key objectives for the Year are designed to unite
Member States, UN Agencies and Microfinance Partners. To ultimately
achieve the Millennium
Development Goals (MDGs), the Year aims to:
and promote the contribution of micro finance and micro credit
to the MDGs;
public awareness and understanding of micro finance and micro
credit as vital parts of the development
inclusive financial sectors;
sustainable access to financial services, and
innovation and new partnerships by promoting and supporting strategic
to build and
expand the outreach
of micro credit and micro finance.
Within the International Year of Micro credit 2005, the ISDR
Secretariat and partners would like to stimulate a debate
and promote dialogue
on how safety nets, micro credit and micro insurance can
contribute to disaster risk reduction.
contributing to the campaign, ISDR will:
partners and experts to review the available safety
nets to address vulnerability and poverty reduction,
and look for potential new mechanisms that can reduce
the impact of hazards.
national and local roundtables with micro-finance
institutions, commercial banks, insurance companies,
NGOs, CBOs and disaster reduction experts.
national platforms for disaster reduction and other
local and national counterparts to discuss and develop
programmes of social and economic safety nets for
the poor to increase their resilience and recovery
capacity to disasters.
good practice and experiences: you are invited to
send us your case studies and experiences to be included
in our information products and media briefs.
decision-makers and NGOs involved in recovery efforts
for the Indian Ocean tsunami and earthquakes to develop
capacities for long-term disaster risk reduction.
Please share with us your views on how micro finance
and safety nets could be useful tools in the recovery
broaden the basis of knowledge and innovation, we encourage nominations
of candidates with relevant experience and good practice related
to micro finance, poverty reduction, safety nets and disaster reduction
to apply for the 2005-nomination process of the Sasakawa Award
for Disaster Reduction.
The ISDR Secretariat, in collaboration with other
UN agencies and NGOs working on micro-finance, will
of Micro credit, organising events throughout the
world that will
culminate with the International day for Disaster
Reduction on the 12TH of October