The new FAO report “Economic assessment of drought risk management – A two-tier framework for cost-benefit analysis of proactive versus reactive drought management" is now available.

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The paradigm shift from reactive to proactive drought management approach is more important than ever with the intensifying and the rising frequency of drought events, coupled with anticipated worsening conditions due to climate change. However, the decision to undertake proactive action and invest in the most rational proactive measures is a complex process. Decision-makers must navigate an array of factors like costs, benefits, timing and risks.

The “Economic assessment of drought risk management – A two-tier framework for cost-benefit analysis of proactive versus reactive drought management" contributes to narrowing the knowledge gaps related to the economic assessments of adopting proactive measures. It primarily clarifies the issues related to accounting of costs and benefits of proactive action, thereby enabling an in-depth understanding of how to compare the benefits of action and costs of inaction. More importantly, the report presents a framework to support decision-making regarding proactive drought management investments. It presents a two-level assessment of proactive measures, with the first level emphasizing evaluation of the economic viability of the measures, and the second level enabling prioritization of economically viable options.

An e-learning module format of the report is also available.

Visit the e-learning module here>>>

The module illustrates the concepts in the report in an interactive way. It consists of modules that are designed to assist users visualize the key definitions and how the two-tier framework can be applied.

Fundamentally, both formats of the report, publication and e-learning, are envisioned to help repurpose the question “should the proactive investment be undertaken?” to “how should the proactive investment be undertaken?”.