New “forecast-based financing” helps most vulnerable before a crisis

New “forecast-based financing” helps most vulnerable before a crisis

The Bangladeshi government and humanitarian agencies trialled a new form of aid for the first time during floods, under the new “forecast-based financing” project.  

To ensure potential disaster victims are prepared, funding is being provided in advance of extreme weather based on forecasts.

According to the Thomson Reuters Foundation, Parvin Begum received 4,500 taka (US$53.42) through her mobile phone before rising water crossed the danger level, allowing her to buy food, rent a boat, and move her belongings to a nearby government shelter.

WFP Spokeswoman, Maherin Ahmed, said:

"This approach uses weather forecasts to trigger early actions such as cash transfers that can help reduce the impact of natural disasters"

With nearly 3 million people impacted, the floods are the worst in two years, according to the disaster management and relief ministry. Government officials have reported 61 deaths, and nearly 800,000 displaced.

According to WFP, research has shown that forecast-based funding could lead to more effective use of aid in emergency situations.

A 2018 study in Nepal found it could save $22 million when responding to an emergency of an average size affecting about 175,000 people, she said.

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Photo: Olaf Neussner/German Red Cross

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