Reforms for a stronger, more resilient and healthier Samoa

The World Bank’s Board of Executive Directors approved on 29 November US$13.7 million for Samoa’s Second Resilience Development Policy Operation with a Catastrophe-Deferred Drawdown Option, which supports reforms to strengthen Samoa’s resilience to economic shocks and reduce its vulnerability to the impacts of climate change, natural disasters, and non-communicable diseases.

The reforms should particularly benefit Samoa’s poor and vulnerable by reducing those risks that have a disproportionate impact on them. They will, for instance, reduce the risk of the Government being unable to fund essential public services after an external shock; the risk of a disruption to remittance flows; and the risk of extreme impacts on livelihoods, or a lack of access to key services after a natural disaster.

This operation provides upfront budget support and includes an innovative Catastrophe-Deferred Drawdown Option (Cat DDO), which provides quick financing in the aftermath of a natural disaster. For Samoa, the inclusion of a Cat DDO will specifically support the government’s efforts to reduce Samoa’s vulnerability to natural disasters and the effects of climate change, not only by providing substantial financing immediately after a disaster hits, but also by supporting key policy reforms to boost the resilience of homes, public infrastructure, and communities.

More concretely, the operation aims to:

• raise government revenues, and manage risks to remittance flows by ensuring compliance with international anti-money laundering and anti-terrorist financing standards;
• ensure the implementation of climate-resilient building standards for homes; improve the management and resilience of public infrastructure, and strengthen the resilience of communities to the effects of climate change and natural disasters;
• limit the negative impacts of alcohol consumption and improve the procurement and management of medicines.

The operation provides US$5 million as an upfront development policy grant from the International Development Association (IDA), the World Bank’s fund for the most in-need countries, and an IDA grant of US$8.7 million available for disbursement under the Cat DDO in the event of a natural disaster.

Original source: The World Bank
Published on 30 November 2018