Investments in solutions to disaster displacement are crucial for maintaining development gains, says new report

Multilateral development banks and governments have clear options for preventing, addressing and resolving displacement linked with disasters and climate change

GENEVA and MANILA – Multilateral development banks (MDBs) have unique opportunities to use development finance to reduce the risk, impact and costs of disaster displacement, even as climate change intensifies weather events that trigger it, according to a new report published today by the Asian Development Bank (ADB) and Internal Displacement Monitoring Centre (IDMC).

The joint report, Harnessing development financing for solutions to displacement in the context of disasters and climate change in Asia and the Pacific, outlines how MDBs are uniquely positioned to address both the root causes of displacement as well as improve response and recovery efforts.

“Addressing displacement in the context of climate change and disasters is a significant challenge for the region,” said ADB Vice-President Fatima Yasmin. “However, we know what needs to be done and how to do it. Development and adaptation finance channelled through multilateral development banks, such as ADB, can support their member countries in addressing the root causes of displacement through sector investments, technical assistance, and co-financing.”

Displacement can hinder, or even reverse, development gains for affected individuals, communities and countries. With an average daily GDP per capita of $29 (USD) in the region, potential economic losses could amount to $275.5 million (USD) for each day these displaced people are unable to work.

Beyond financial losses, displacement negatively impacts education, health, social networks, cultural heritage, and the environment, resulting in severe repercussions on socioeconomic development in the short, medium and long term.

“Disaster displacement can upend lives, cost countries billions of dollars and set back development efforts by years, but it doesn’t have to be this way,” said IDMC Director Alexandra Bilak. “Investments in disaster risk reduction and climate adaptation plans can reduce the scale and negative impacts of displacement. The payoff could be huge.”

The report calls for closer collaboration between governments and multilateral development banks and an increasing use of development finance for solutions to internal displacement. Financing projects that address structural causes of disaster risk, such as investments in economic development, health care and resilient infrastructure, can reduce the risk of disaster displacement.

Asia and the Pacific reported 177 million internal displacements from disasters over the past decade (2014 – 2023), the most of any region. Of those, extreme weather events triggered 92 per cent, and 65 per cent occurred in low- and lower-middle-income countries. Climate scientists expect these events to become more frequent and intense, while also exacerbating other underlying factors that make people vulnerable to displacement.

Read the full report.

Notes to editors

How to read our data

Internal displacement refers to the forced movement of people within the country they live in.

The number of internally displaced people (IDPs) is a snapshot of the total number of people living in internal displacement at a specific point in time in a specific location. For our Global Report on Internal Displacement (GRID) and the Global Internal Displacement Database (GIDD), we make these snapshots as of the end of each year.

The number of internal displacements counts each new forced movement of a person within the borders of the country of their habitual residence recorded during the year. The same person or people can be displaced several times over a given period of time. We count each time a person is forced to move as an internal displacement. We also refer to these as movements.

About IDMC

IDMC is the world's leading source of data and analysis on internal displacement. We provide high-quality data, analysis and expertise on internal displacement to inform policy and operational decisions that can improve the lives of internally displaced people (IDPs) worldwide and reduce the risk of future displacement. IDMC was established in 1998 and is part of the Norwegian Refugee Council.

About ADB

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.