{
  "title": "Enhancing Resilience to Climate Change in the Maldives",
  "publication": "IMF Working Papers, April 23, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2021/04/23/enhancing-resilience-to-climate-change-in-the-maldives-50293",
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  "summary": "The increased likelihood of adverse climate-change-related shocks calls for building resilient infrastructure in the Maldives.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The increased likelihood of adverse climate-change-related shocks calls for building resilient infrastructure in the Maldives.\n- Fulfilling infrastructure needs requires comprehensive analysis of investment plans with respect to:\n  - degree of climate resilience,\n  - impact on future economic prospects,\n  - funding costs and sources.\n- The paper analyzes these challenges by calibrating a general equilibrium model.\n- Main quantitative finding: under worsened climate conditions, the cumulative output gain from investing in more resilient technologies increases up to a factor of two.\n- Fiscal constraint note: the Maldives has limited fiscal space, particularly after COVID-19.\n- Donor timing finding: it is financially convenient for donors to help build resilience prior to the occurrence of natural disasters rather than helping finance reconstruction ex-post."
    },
    {
      "heading": "Key findings and projections",
      "content": "- Significant dividend associated with building resilient infrastructure.\n- Under worsened climate conditions, the cumulative output gain from resilient investment increases up to a factor of two.\n- Given limited fiscal space after COVID-19, domestic financing alone may be insufficient to meet resilience needs.\n- International community cooperation should be stepped up to support resilience-building.\n- Donor financing before disasters is more cost-effective than ex-post reconstruction financing."
    },
    {
      "heading": "Methodology and scope",
      "content": "- Analytical approach: calibration of a general equilibrium model to the Maldives context.\n- Focus areas: investment plans’ resilience, macroeconomic impacts, and funding costs and sources."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Prioritize investment in resilient infrastructure to capture substantial cumulative output gains (up to a factor of two under worsened climate conditions).\n- Mobilize international cooperation and donor support, recognizing the Maldives’ limited fiscal space after COVID-19.\n- Encourage donor financing for resilience-building ex-ante (prior to disasters) rather than ex-post reconstruction financing.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/04/23/enhancing-resilience-to-climate-change-in-the-maldives-50293"
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    "Authors: Giovanni Melina, Marika Santoro",
    "Published: April 23, 2021",
    "Series: IMF Working Papers",
    "The increased likelihood of adverse climate-change-related shocks calls for building resilient infrastructure in the Maldives.",
    "Fulfilling infrastructure needs requires comprehensive analysis of investment plans with respect to:",
    "The paper analyzes these challenges by calibrating a general equilibrium model.",
    "Main quantitative finding: under worsened climate conditions, the cumulative output gain from investing in more resilient technologies increases up to a factor of two.",
    "Fiscal constraint note: the Maldives has limited fiscal space, particularly after COVID-19.",
    "Donor timing finding: it is financially convenient for donors to help build resilience prior to the occurrence of natural disasters rather than helping finance reconstruction ex-post.",
    "Significant dividend associated with building resilient infrastructure.",
    "Under worsened climate conditions, the cumulative output gain from resilient investment increases up to a factor of two.",
    "Given limited fiscal space after COVID-19, domestic financing alone may be insufficient to meet resilience needs.",
    "International community cooperation should be stepped up to support resilience-building.",
    "Donor financing before disasters is more cost-effective than ex-post reconstruction financing.",
    "Analytical approach: calibration of a general equilibrium model to the Maldives context.",
    "Focus areas: investment plans’ resilience, macroeconomic impacts, and funding costs and sources.",
    "Prioritize investment in resilient infrastructure to capture substantial cumulative output gains (up to a factor of two under worsened climate conditions).",
    "Mobilize international cooperation and donor support, recognizing the Maldives’ limited fiscal space after COVID-19.",
    "Encourage donor financing for resilience-building ex-ante (prior to disasters) rather than ex-post reconstruction financing.",
    "**Working Paper**"
  ],
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