Disaster Risk Financing: Samoa

Samoa, a small island state vulnerable to cyclones, tsunamis, and earthquakes, faces natural disasters that inflict damages averaging 12% of GDP annually, significantly higher than most Pacific nations. Major events like Cyclone Evan (2012) and Cyclone Gita (2018) revealed systemic fiscal vulnerabilities and dependence on ad-hoc donor support and budget reallocations. Despite some financial instruments in place (emergency funds, sovereign catastrophe insurance, and contingency budgets), the capacity to rapidly mobilize and execute post-disaster financing remained limited. Additionally, the private sector’s role in disaster preparedness was underdeveloped, and the insurance market lacked depth to meaningfully absorb large-scale risk.

Under the World Bank–funded Pacific Resilience Program (PREP), Russell Leith led the development of Samoa’s first Disaster Risk Financing Strategic Plan, with Shaan Stevens contributing technical review. The strategy introduced a layered, risk-based financing approach, aligning public and private sector actions under a unified national framework. The project focused on the following core objectives:

Leith’s recommendations delivered a comprehensive, phased roadmap that helped Samoa move from reactive disaster funding to proactive risk-based financial planning. Key impacts included: Institutional alignment of MOF and DMO in post-disaster financial response. Adoption of a three-tiered risk financing model to match the scale and frequency of disasters. Identification of capitalization strategies for the RRF, including new tax instruments and donor co-financing mechanisms. Strengthened basis for private sector resilience, with the Chamber of Commerce signing an MOU with the government to promote business continuity planning and risk disclosure. A blueprint for future catastrophe bond issuance, parametric insurance expansion, and credit line access from international finance institutions