Between 2000 and 2022, Latin America and the Caribbean experienced 1,534 disasters, affecting 190 million people and causing major economic and social disruptions. With expected annual losses of USD 58 billion, the region’s risk landscape underscores the urgent need to move from reactive responses to proactive disaster risk reduction (DRR) strategies. Despite growing recognition of the importance of DRR, national budget allocations remain minimal—less than 2.5% annually—and heavily imbalanced, with around 80% directed toward response. International cooperation for risk reduction and climate adaptation likewise represents only a small share of official development assistance received in the region, about 6% of total financial flows. The financing available, primarily reactive in nature, is insufficient to overcome persistent vulnerabilities and the high economic losses associated with disasters, highlighting the need for more effective, risk-informed decision-making.
