A flooded area in Haiti where a woman is walking through knee-deep water, balancing a white bucket on their head.
After days of continuous rains, parts of Haiti's north, including Cap Haïtien, suffered serious flooding, leaving more than a dozen dead and thousands homeless
Photo:UN/Logan Abassi

Fund Resilience, Not Disasters

The rising cost of disasters reflects the growing impact of climate change and poor development choices. Globally, countries face increasingly severe natural events, driven by extreme weather and risk-blind planning.

While direct disaster costs reach around $202 billion annually, the broader economic impact is estimated at $2.3 trillion. Developing nations suffer the most, while wealthier countries face high financial losses.

Despite this, investment in disaster risk reduction (DRR) remains minimal. Less than 1% of public budgets are allocated to DRR, and only 2% of Official Development Assistance projects included DRR goals between 2019 and 2023. Humanitarian funding for preparedness is also declining.

A major issue is that both public and private economic strategies often ignore disaster risks. The private sector, which controls 75% of investments, frequently overlooks climate threats, increasing vulnerability and potential losses.

To address this, national strategies must integrate DRR and climate adaptation. Governments should empower the private sector with regulations, risk data, and incentives to promote resilient investments.

The 2025 International Day for Disaster Risk Reduction calls for two actions: 1) increase funding for DRR in public and international budgets, and 2) ensure all development and private investments are risk-informed and resilient.

The hidden $1 trillion disaster cost we can prevent

How to break the 3 spirals of disaster risk

Are you Ready to help build resilience?

Get involved and help spread the word about empowering the next generation to build a resilient future! Join the conversation around the International Day for Disaster Risk Reduction on social media to help raise awareness of the need for disaster risk reduction that includes everyone – especially those most at risk. Register your event and participate. 13 October is #DRRday #FundResilience #ResiliencePays

Key messages

  • Disasters are a growing threat to economic prosperity and sustainable development, with costs underestimated and unsustainable.
  • Disaster costs are pushing countries into spirals of increased debt, lower incomes, increased insurability, and repeated humanitarian crises.
  • Declining international assistance makes it even more critical to reduce disaster losses through disaster risk reduction investments.
  • Cutting funding for disaster risk reduction leads to more expensive disasters in the future, along with more humanitarian needs.
  • To reduce disaster costs, countries must increase funding for disaster risk reduction and ensure all development investments are risk-informed.

Background

The International Day for Disaster Risk Reduction was started in 1989, after a call by the United Nations General Assembly for a day to promote a global culture of risk-awareness and disaster reduction. Held every 13 October, the day celebrates how people and communities around the world are reducing their exposure to disasters and raising awareness about the importance of reining in the risks that they face.

In 2015 at the Third UN World Conference on Disaster Risk Reduction in Sendai, Japan, the international community was reminded that disasters hit hardest at the local level with the potential to cause loss of life and great social and economic upheaval. Sudden onset disasters displace millions of people every year. Disasters, many of which are exacerbated by climate change, have a negative impact on investment in sustainable development and the desired outcomes.

It is also at the local level that capacities need to be strengthened urgently. The Sendai Framework for Disaster Risk Reduction is people-focussed and action-oriented in its approach to disaster risk reduction and applies to the risk of small-scale and large-scale disasters caused by man-made, or natural hazards, as well as related environmental, technological and biological hazards and risks.

Did you know?

  • Total disaster costs now exceed $2.3 trillion annually when indirect and ecosystem impacts are included.
  • Most flood-related deaths and economic losses are recorded in Asia.
  • The number of recorded droughts has increased by 29 per cent over the past 20 years.
  • Average annual losses from tropical cyclones alone are estimated at USD 119.5 billion.

Play and learn to stop disasters

Registration

This online game teaches children how to build safer villages and cities against disasters. Children learn through playing how the location and the construction materials of houses make a difference when disasters strike and how early warning systems, evacuation plans and education save lives.

Play the Game

Resources

Websites

Documents

A cityscape at sunset.

One year after the UN Secretary-General’s Call to Action on Extreme Heat, countries are implementing strategies to build heat resilience. UN agencies, including UNDRR, are collaborating with governments to scale up responses. Kamal Kishore, UN Secretary-General’s Special Representative for Disaster Risk Reduction, highlights ten impactful actions, such as heat action plans and climate-aware urban planning.

A ship stranded in the street.

Every year, the United Nations Office for Disaster Risk Reduction (UNDRR) works with thinkers, practitioners, experts and innovators to investigate the state of risk across the globe: highlighting what’s new, spotting emerging trends, revealing disturbing patterns, examining behaviour, and presenting progress in reducing risk. The findings make up the 2025 Global Assessment Report on Disaster Risk Reduction.

an abstract illustration of people engaged in an event

International days and weeks are occasions to educate the public on issues of concern, to mobilize political will and resources to address global problems, and to celebrate and reinforce achievements of humanity. The existence of international days predates the establishment of the United Nations, but the UN has embraced them as a powerful advocacy tool. We also mark other UN observances.