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Disaster Risk

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№ 2026-74 · October 2026 · 24 min

The Economics of Prevention Versus the Cost of Crisis

In 2015–2024 official donors spent $263 billion responding to crises in developing countries and $21 billion preventing them, 8 cents for every response dollar, while recorded disaster damage averaged $194 billion a year. Seventeen published estimates put prevention's return at 2 to 87 dollars per dollar across air pollution, climate, health, food, water, infrastructure, pandemics and conflict, and a cautious portfolio still returns several times its cost.

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