Disaster Risk Reduction Funding: Investment Cycle for Flood Protection in Japan

Area of Science:

• Environmental Science
• Economics
• Public Policy

Background:

• Disaster risk reduction investments are crucial but challenging, especially for developing nations.
• Financing flood protection requires understanding historical investment trends and influencing factors.

Purpose of the Study:

• Examine factors affecting flood protection investments in Japan.
• Analyze approaches to securing investments by studying Japan's investment trends over 150 years.

Main Methods:

• Analysis of 150 years of flood protection budgets, flood damage, and national income data since 1878.
• Review of public statistics and documents on disaster and river management, and finance.

Main Results:

• Identified five distinct investment cycles in flood protection from the late 19th century to present.
• Flood damage decreased from over 1% to under 0.4% of national income, with investments reaching 0.9% in the 1990s.
• External shocks like war and economic recession significantly impacted investment fluctuations.

Conclusions:

• Long-term financial mechanisms and legislation, spurred by major disasters, can increase flood protection budgets and reduce damage.
• Established financing mechanisms may reduce a country's financial flexibility.