OP-ED: Fund resilience, not disasters to secure Laos’ resilient future

this year’s global theme “Fund Resilience, Not Disasters” resonates deeply with the national context of Lao PDR. It is a message grounded in data, economics and human security; the costs of disasters are immensely underestimated, and the price of inaction is unsustainable.

Lao PDR is at High Risk

The UNDRR’s 2025 Global Assessment Report estimates that the true cost of disasters is 11 times higher than the direct economic costs, standing at an estimated $2.3 trillion a year. 

For countries like Lao PDR, each disaster can cause cumulative and disproportionate damage, wiping out development gains, overwhelming public systems, increasing debt burden, and negatively impacting on MSMEs and a growing private sector. Without strategic investment, this cycle will worsen as international assistance declines and humanitarian needs rise.

Lao PDR is among the countries most vulnerable to climate and disaster risks. The 2024 INFORM Index classified Lao PDR as having very high exposure to floods, with medium vulnerability and high lack of coping capacity. According to the Lao disaster database, between 2000 and 2024, a total of 4,483 disasters events, mostly floods, storms and landslides, affected over 4 million people and cost over USD 600 million in economic losses. 

In 2024 alone, monsoon floods and tropical storms impacted over 271,000 people, causing USD 313 million in direct damages. As of August 2025, an estimated 305,258 people, including 137,828 women, were affected, with damages exceeding USD 114 million.

Moreover, Lao PDR’s temperature is rising at 0.05°C annually, potentially leading to a 3.6°C increase by the end of the century, with the southern part of the country heating even faster. In April 2023, Laos recorded its hottest day ever, nearing 44°C, putting agricultural productivity, energy output and public health increasingly at risk. It is projected that by 2050, 4 million people in Lao PDR will be exposed to extreme heat, compared to a baseline of zero exposure in the year 2000. 

A Strategic Shift Toward Resilience

To reverse these trends, countries must accelerate the full implementation of the Sendai Framework in the remaining five years.

Lao PDR is making deliberate shifts toward proactive risk governance. At the country level, the Disaster Management Law (2019) and the National Strategy for Disaster Risk Reduction (NSDRR) 2021–2030 provide the legislative and strategic backbone for a more resilient nation.  Key institutions such as the Central Disaster Management Committee, led by the Deputy Prime Minister, and the National Disaster Management Office under the Ministry of Labour and Social Welfare, anchor coordination. Subnational Disaster Management Committees (DMCs), now operational in all provinces, as well as in some districts and villages, ensure that local needs and capacities are integrated into national planning. 

Strengthening Systems and Governance

Lao PDR has also made tangible progress in strengthening disaster and climate resilience. Early warning systems are being enhanced through improved hydrometeorological infrastructure, and broader community engagement. The National Early Warnings for All (EW4All) roadmap aims to improve inclusive, accessible and actionable early warning messages to all population, including the most vulnerable and remote communities across the country. 

Risk knowledge has expanded with the upgrading of the Lao Disaster Information system to track historical disaster events, the launch of impact-based forecasting pilots, and anticipatory action-based interventions. This risk knowledge plays a key part in developing and implementing national and sub national disaster risk reduction strategies and action plans.

Under the Lao PDR - United Nations Cooperation Framework (2026-2031), UN agencies have come together to support the Government in strengthening policies, strategies and programmes to build resilience. The Inter-Agency Standing Committee mechanism supports government leadership on disaster preparedness and response. Together, these initiatives are making schools, health centers and food systems more climate-resilient and shock-responsive.

But more remains to be done. Hydrometeorological coverage and early warning dissemination are uneven. A recent National Early Warning System Perception Survey found that 41% of the interviewed population, particularly those in remote and vulnerable communities, still lack access to early warning messages. And local disaster management committees often lack the technical and financial resources needed to act effectively.

And fully implementing the Sendai Framework requires prioritizing financing for resilience and de-risking investment and financing.

Finance and Innovation in Climate and Disaster Risk Reduction

For the 2025 International Day for Disaster Risk Reduction, we are calling on everyone to “Fund Resilience, Not Disasters”. This means two distinct actions: Increasing funding for disaster risk reduction and building resilience, especially within national budgets and international assistance,. and ensuring that public and private sector investments are guided by an understanding of climate and disaster risks. Making all development risk-informed will not only prevent the creation of new disaster risks, but will also help protect these investments from being lost to disasters.

Recognizing the deep link between climate change and disaster risks, Lao PDR is aligning its financial systems to support resilience. The 2024 Carbon Decree marks a significant milestone, creating a regulatory framework for a domestic carbon market that will fund forest protection and low-emission development. The recently launched UN Joint Programme on Green and Climate Finance, led by the Ministry of Finance, is working to integrate disaster risk reduction objectives into public budgeting, and facilitating access to international climate finance. 

The Ministry of Finance is leading work to quantify disaster and climate risks to better manage fiscal exposure and prioritize investments in risk mitigation. This approach supports the implementation of the National DRR Action Plan and aligns with the Financing Strategy of the National Socio-Economic Development Plan (NSEDP). By integrating risk data into public financial management, Lao PDR can make more informed, cost-effective decisions that protect development gains.

Despite these innovations, funding remains a constraint. Many disaster risk management plans, particularly at subnational levels, remain underfunded. 

The Way Forward

To continue and further consolidate the shift from vulnerability to resilience, there are several strategic steps that Lao PDR can take.

First, to fully operationalize the National Strategy for Disaster Risk Reduction 2021-2030, the Government could elaborate clear, costed targets and make dedicated budget allocations at all administrative levels. 

Second, accelerate the implementation of the National Early Warnings for All roadmap, ensuring that early warning systems reach all communities, especially those at greatest risk. Well-funded early warning systems are among the most cost-effective investments in disaster resilience, with high cost savings and returns in the rage of 1:20 cost-benefit ratio.

Third, all development sectors including education, agriculture, health, infrastructure, natural resource management and social welfare, would significantly benefit from integrating disaster risk reduction and climate adaptation measures – so that public spending in every sector adds to resilience rather than amplifying risk. 

Fourth, risk-informed financing mechanisms could be expanded, including scaling-up budget tagging for disaster risk reduction, establishing contingency funds, and fostering public-private partnerships that leverage innovation and investment for resilience building.

Lao PDR would also benefit from an integrated national risk platform, enabling better data-driven planning and decision-making. Reliable risk data ensures that funds are directed where they can have the greatest long-term impact.

Finally, by institutionalizing mechanisms to address long-term climate loss and damage and by empowering local actorsto manage resources and implement community-based resilience measures, Lao PDR can ensure that every kip invested contributes to sustainable, locally-owned resilience.

A Call to Action

Resilience is a choice between short-term reaction or long-term protection. Between escalating costs or sustainable development. Between humanitarian crises or empowered, risk-informed communities.

Risks can be turned into opportunities by investing in resilience. By funding resilience rather than disasters, Lao PDR can secure a safer, more sustainable future for all, and share its experiences in the region and beyond, to strengthen a wider cooperation in what truly is a vital field.

OP-ED copenned By Mr. Bakhodir Burkhanov, UN Resident Coordinator in Lao PDR, and Marco Toscano-Rivalta, Chief, United Nations Office for Disaster Risk Reduction (UNDRR) Regional Office for Asia and the Pacific