Strategy for Disaster Reduction
Latin America and the Caribbean
Newsletter ISDR Inform - Latin America and the Caribbean
Does prevention pay?
Given the growing economic costs of disasters, and in the light of the positive results obtained from investing in prevention, the Mexican Government, through its National System for Civil Protection, established a "Natural Disasters Fund" (FONDEN). This is a governmental effort to strengthen preparation work and reduce the effects of a disaster. It basically provides resources to deal with the effects of a disaster without drawing on public funds or on the normal programmes run by the federal, state and municipal governments.
FONDEN is a mechanism that provides funds to respond to an emergency. The objective is to deal with the effects of unforeseen natural disasters whose magnitude overwhelms the response capacity established by the authorities. It is a complement to the prevention activities undertaken by local governments to respond to natural disasters. At the same time, efforts are under way to strengthen future capacity to respond when a disaster is foreseen or occurs.
FONDEN is a flexible and transparent financial instrument which allows the federal government to:
FONDEN is an instrument to promote cooperation and joint-responsibility in the Mexican Government and society for effective preparation and prevention in case of disasters.
These achievements would not have been possible without the certainty that prevention pays.