Peru builds resilience against disasters
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Rossana Polastri participated in a meeting called “Perú Resiliente” organized by Apeseg to discuss how Peru can better prepare for disasters. The discussion highlighted that effective resilience requires coordinated funding, strong institutions, and capable management.
Polastri explained that risks vary, some, like seasonal frosts in the Andes Mountains, are predictable, while others, such as earthquakes, are not, and require different responses.
Peru can reduce risk through preventative measures like maintenance and early warning systems, and can finance manageable events with its budget and reserves. For larger events, Peru can use contingent credit lines or transfer risk through insurance and catastrophe bonds. In 2018, Peru issued $200 million in catastrophe bonds through the World Bank to cover earthquakes, but this coverage has since expired.
Polastri argues the country needs a structured portfolio of risk management tools, deciding which risks to reduce, retain, or transfer, because any risk not addressed through these means will ultimately be borne by the state. While Peru has access to financial instruments, the main challenge lies in converting those resources into effective responses.
The recent creation of the FEN-OECE Brigade, which provided assistance to 137 organizations and 471 public servants in its first nine days, demonstrates the importance of ensuring officials know how to use available tools. Polastri concludes that Peru must also focus on strengthening its institutions and management capacity to respond effectively before disasters strike.
