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This article assesses the disaster risk facing the hazard-prone Southeast Asian country of Cambodia and discusses its fiscal preparedness and need for proactive disaster risk management.
The present study gives higher direct damage estimations despite these missing analyses, indicating the need for further risk assessment and better fiscal preparedness in Cambodia.
Fiscal preparedness against natural disasters and risk-sensitive public investment planning are increasingly seen as important aspects of development in hazard-prone countries such as Cambodia.
Clarifying budget categories and understanding how budget expenditures are diverted each year due to natural disaster is an important first step in improving fiscal preparedness and addressing the opportunity costs associated with response-oriented fiscal planning.
Compared to its neighboring countries, Cambodia's fiscal preparedness is limited due to a number of factors, which include a lack of experience with catastrophic disaster events in the recent past and limited priority given to disaster risk reduction investment.
Fiscal preparedness for natural disasters and risk-sensitive public investment planning are increasingly seen as essential elements of natural disaster resilience (UNDP 2010; Michel-Kerjan et al. 2013; UNISDR 2013; AMCDRR 2014).
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