IIED Estimates Rural Household Spending on Climate Recovery in Bangladesh
What happened
The International Institute for Environment and Development released estimates regarding rural household spending in Bangladesh. A 2019 study by the International Institute for Environment and Development found that rural households spend nearly $2 billion annually on preparing for and recovering from climate-related disasters. This spending exceeds the amounts provided by the government or international donors.
From thedailystar.net
Why it matters
This significant spending is financed by savings, remittances, selling assets, and increasingly, borrowing. The microfinance sector, which serves over 32 million borrowers, is increasingly used by households to cover these climate-related costs.
From thedailystar.net
Who's involved
- International Institute for Environment and DevelopmentConducted research on environmental and workforce issues within Bangladesh.
- BangladeshThe country where the climate-related spending and disaster recovery occurs.
- RehanaA woman in Kurigram who took multiple loans to recover assets lost during a flood.
- Government of BangladeshThe national government of Bangladesh, whose spending on disaster relief is noted as insufficient.
- Asian Development BankA regional development bank that may need to address climate-related economic strain in rural areas.
- World BankAn international financial institution whose climate finance demand is quantified by the spending gap.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- RehanaSpeculative
Climate disasters might force her into a debt cycle to recover lost assets like crops and housing.
- Government of BangladeshSpeculative
The government of Bangladesh could face increased fiscal and social policy pressure due to the systemic climate debt burden.
- Asian Development BankSpeculative
The Asian Development Bank may need to increase investment to address climate-related economic strain and poverty in rural areas.
- World BankSpeculative
The World Bank could see increased demand for climate finance to cover the gap between household spending and donor funding.
Keep exploring
The entities involved
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International Institute for Environment and Development
organization
Nothing else this week.
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Bangladesh
country in South Asia