- Email: [email protected]
Financing the Disaster Resilient City in the Slovak Republic
Available online at www.sciencedirect.com
ScienceDirect Procedia Engineering 192 (2017) 301 – 306
TRANSCOM 2017: International scientific conference on sustainable, modern and safe transport
Financing the disaster resilient city in the Slovak Republic -iQ+DYNRa*9HURQLND0LWDãRYia7RPiã3DYOHQNRa, Michal Titkoa-DQD.RYiþRYia a
Faculty of Security Engineering, University of Žilina, Univerzitná 8215/1, 010 26 Žilina, Slovak Republic
Abstract This paper presents a framework for scaling climate change adaptation in cities in the Slovak Republic. The framework specifically focuses on the requirements of financial resources mobilizing for climate change adaptation and other urban risk reduction. An article is elaborated through the resilient city concept, an ability of urban areas and their individual assets to perform a basics service for stakeholders under a wide range of condition. The purpose of the article is to identify and analyze funding resources for disaster resilient city in the European Union. 2017 2017The TheAuthors. Authors.Published Published Elsevier © by by Elsevier Ltd.Ltd. This is an open access article under the CC BY-NC-ND license Peer-review under responsibility of the scientific committee of TRANSCOM 2017: International scientific conference on (http://creativecommons.org/licenses/by-nc-nd/4.0/). sustainable,under modern and safe transport. Peer-review responsibility of the scientific committee of TRANSCOM 2017: International scientific conference on sustainable, modern and safe transport Keywords: disaster resilient city; crisis management; financing resilient city
1. Introduction Frequency of natural and manmade disasters occurrence have raised during last years. Reason for this negative trend possibly come from global warming/climate change on the planet. Consequences of these disasters are even bigger than it was before (economic losses, numbers of affected people, and numbers of deaths...). According to UNIDSR [1], nowadays are 9 from 10 disasters caused by climate change. Disasters have bigger impact on inhabitants, companies, communities and countries because infrastructure is still complicated and connected, population growth on planet has still growing trend and resources (water, oil, gas, food, etc.) are limited. Immediate reaction for this negative trend in the world was adoptions of several frameworks by international crisis management organizations. Crisis management organizations adopted several frameworks/action plans for dealing with this negative trend. From wide spectrum of international crisis management organizations, we focused on United Nations approach.
* Corresponding author. Tel.:+421415136720. E-mail address: [email protected]
1877-7058 © 2017 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of TRANSCOM 2017: International scientific conference on sustainable, modern and safe transport
doi:10.1016/j.proeng.2017.06.052
302
Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
UN adopted several frameworks. Namely, it was Yokohama (1994), Hyogo (2005) and Sendai (2015). In these frameworks [1,2] are stated main goals, priorities and tools for handling of the disasters consequences, respectively to change negative trend of disasters development. One of Main goals of Sendai Framework has been significantly decrease of disasters emergence risk probability and decrease numbers of affected peoples, damages on property caused by disasters. In the next chapter there will be short introduction into disaster resilient city topic (what it is). The fundamental idea of resilience comes from Ch. Darwin a research result where he declared >@ Ä1RWWKHVWURQJHVWRU WKHPRVWLQWHOOLJHQWZLOOVXUYLYHEXWDRQHZKRLVWKHPRVWDGDSWLYH³$FFRUGLQJWR81WHUPLQRORJ\>@UHVLOLHnce is ability of a system, community or society exposed to hazards to resist, absorb, accommodate to and recover from the effects of a hazard in a timely and efficient manner, including through the preservation and restoration of its essential basic structures and functions5HVLOLHQFHPHDQVWKHDELOLW\WR³UHVLVWIURP´RU³VSLQEDFNIURP´DVKRFN Requirements for its application on state/regional/municipal level is high costly. The article pays attention to UNIDSR resilient city concept application and iW¶V financing. 2. Disaster resilient city concept Cities are complex systems consisting from lot of SDUWV LQIUDVWUXFWXUHSHRSOHJRYHUQPHQWERGLHV« 7KH\DUH characterized by intense, regular interactions that are structured in identifiable activity areas such as a district, or in key resource management or mobility sub-systems, for example urban drainage or energy systems. The character of urban districts as complex place-based systems is very different to that of lower-density rural areas where activities are more spatially separated and interactions are less intense [5]. Cities are closer to citizens than countries. They can have much more impact on people behavior. In large cities, individuals feel anonymously to its surrounding. Nevertheless, individuals voluntarily become members of local communities. Cities provide several services like educations, healthcare, building and carrying about infrastructure and they provide preparation for disasters solving. A disaster resilient city [6] ´ is one where disasters are minimized (probability of disasters occurrence and disasters consequences are as low as possible) because the population lives in homes and neighborhoods with organized services and infrastructure that adhere to sensible building codes; without informal settlements built on flood plains or steep slopes because no other land is available. Resilient city has taken steps to anticipate and mitigate the consequences of disasters, incorporate monitoring and early warning technologies to protect infrastructure, community assets and individuals, include their homes and possessions, cultural heritage, environmental and economic capital, and is able to minimize physical and social losses arising from extreme weather events, earthquakes or other natural or manmade hazards. Is able to respond, implement immediate recovery strategies and quickly restore basic services to resume social, institutional and economic activity after such an event´. Worldwide there is 3410 resilient cities according to UNIDSR [7]. This represent just a small part of all cities around the world. In the Europe, they are spread the most. There are 10 essential things, which can make cities more resilient according to UNIDSR [6]: x Institutional and Administrative Framework (Put in place organisation and coordination to understand and reduce disaster risk, based on participation of citizen groups and civil society. Ensure that all stakeholders understand their role in disaster risk reduction and preparedness), x Financing and Resources (Assign a budget for disaster risk reduction. Prepare resources for reaction on disasters and recovery after disasters), x Multi-hazard Risk Assessment- Know your Risk (Maintain up to date data on hazards and vulnerabilities. Prepare risk assessments.) x Infrastructure Protection, Upgrading and Resilience (Invest in and maintain critical infrastructure that reduces risk, such as flood drainage, adjusted where needed to cope with climate change) x Protect Vital Facilities: Education and Health (Assess the safety of all schools and health facilities and upgrade these as necessary.) x Building Regulations and Land Use Planning (Apply and enforce realistic, risk compliant building regulations and land use planning principles.) x Training, Education and Public Awareness (Ensure that education programmes and training on disaster risk reduction are in place in schools and local communities.)
Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
x Environmental Protection and Strengthening of Ecosystems (Protect ecosystems and natural buffers to mitigate floods, storm surges and other hazards to which city may be vulnerable. Adapt to climate change by building on good risk reduction practices) x Effective Preparedness, Early Warning and Response (Install early warning systems and emergency management capacities in city and hold regular public preparedness drills) x Recovery and Rebuilding Communities (After any disaster, ensure that the needs of the affected population are placed at the centre of reconstruction.) These steps are only generic and its application and implementation in each country depends on conditions, political environment, security situations. For our research is main research field financing and resources from ten essentials. As it was stated above there is none disaster resilient city in the Slovak Republic. Next chapter focuses on the current situation in disaster resilience topic in the Slovak Republic. 3. Disaster resilient city in condition of the Slovak Republic Security environment in the Slovak Republic is stable as in other EU countries. The most significant risks are natural disasters, mainly floods [8]. Floods made a serious economic damage during last 20 years. In economic losses, it was over 1 billion of euros. More than half of these damages was on municipality level and on property of inhabitants [9, 10]. Legislation in security environment is very comprehensive. Basis of legal system consist of constitution of the Slovak Republic, which guarantee fundamental human rights and freedoms. It creates conditions to ensure the sovereignty of the state and the integrity of its border and protection of life, health and the environment as fundamental values. During more than twenty years of the Slovakia Republic existence have been gradually approved legal acts, which have shaped crisis management structure in the Slovak Republic. We argue that crisis management system in the Slovak Republic has several problems, which are serious nowadays, not even after consequences of climate change. Closely linked to the resilience topic problems are: x Land use planning consist from legislation from 1976. This act was amended a few times, but current dynamic development of society requires the newest best practice [11], x Funding of several tasks is insufficient. Municipalities have a several tasks arising from legislation in civil protection field. Research in [12] leads to conclusion that almost 90 % of municipalities are not able to fund their tasks, x In the Slovak Republic it is obvious a problem with responsibility and competences between state administration and municipality level. According to legal system, almost all of tasks in crisis management are on state administration. In ethical dimension, it leads us to question if it is not better to give more responsibilities and competences to municipality level, x Legal system in crisis management field has a wide range. There isQW any specific act for all types of crisis phenomena. Mixture of all tasks from all legal act can seriously confuse mayor of municipalities (mayor is responsible for solving the crisis phenomena in his/her city). Presented problems directly linked with resilience framework from UNIDSR can be understood as challenge. Challenge in way of solution of these problems. It could be solved separately, but resilient city includes outlines of all these problems. Question is how to apply best practice of resilient city in conditions of the Slovak Republic. The Slovak Republic has to adopt action plan for scaling climate changes. This task consists from EU adaptation strategy on climate change [13]. The National adaptation strategy for negative consequences of climate change was elaborated by Ministry of Environment of the Slovak Republic. Scenario based on the assumption of global warming FRXOGPHDQDQLQFUHDVHRIDYHUDJHDQQXDOWHPSHUDWXUHXSWR&IRUWKH6ORYDNRepublic. That could seriously affect human health, food production, and lack of drinking water. Measures related to adaptation for these changes are costly. The document, which would deal with the issue of adaptation and risk management related to natural disasters, does not exist in the Slovak Republic. The National adaptation strategy for negative consequences of climate change is a comprehensive document, which pay attention to starting point, impacts of climate change in particular areas, proposed adaptation measures and subsequent adoption of measures, funding, monitoring and review. Considering the extensiveness of the document, there are many aims defined. The most important aims are [14]:
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x Proposal of proactive adaptation measures and mechanisms for their implementation in the context of sectoral policies, development strategies and action plans at all levels, x Identification of best practices in risk prevention and risk management in the context of natural disasters, in order to minimize the social and economic damages, x Creation of basic informational and institutional infrastructure that would enable efficient and cost-effective adaptation to the adverse effects of climate change. At present, do not exist any systemic approaches to adaptation at the local and regional level in the Slovak Republic. Climate changes and its impact on the territory, population and economy are not taking a significant part in urban planning and regional development. There are also not defined criteria for effective decisions making process of government entities with respect to climate change mitigation in the settlements and there is lack of methodology and binding procedures for local adaptation. In spite of absence of the disaster resilience city real application in the Slovak Republic, we argue that it is necessary to create this academic research concerning financing disaster resilient city. An action plan remains just that²a plan² unless it has dedicated resources to ensure that actions in practice. 4. Financing the disaster resilient city in the Slovak Republic This chapter presents possible resources for disaster resilient city financing. We also describe analysis of financial instruments for its usage in each part of crisis management phase (prevention, mitigation, preparedness, rescue and relief, recovery, rehabilitation and reconstruction). Each country/municipality is able to invest a different amount on these phases and their ability to be resilient is therefore different. For our article is important how country/city is financially vulnerable to disasters. Based on scientific resources that kind of research made only for countries [15]. Analysis is about financial vulnerability (related to lack of resources). The result of analysis is in fig. 1.
Fig. 1. Global map exhibiting calculations of the resource gap year [15].
Fig. 1 says about the financial vulnerability of countries to disasters consequences. The most vulnerable countries are "third world" countries. Unfortunately, one of the analysis conclusions is the fact that the Slovak Republic belongs to a group of the most vulnerable countries in the world. Financial instruments and its usage during crisis management phases is objective of a many international research [5, 15, 16, 17]. In the Slovak Republic, it is not so often [10]. From scientific resources we create a table 1, where are describe most common financial instruments for disaster resilient city financing in condition of the Slovak Republic.
Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
Table 1. Financial instruments for disaster resilient city financing [5, 10, 15, 16, 17]. Financial instrument Grant Budget Catastrophe bond
Social impact bond Insurance Securitization/structured finance Value capture
Municipality funds State funds
Description Bounty, contribution, gift, or subsidy (in cash or kind) bestowed by a government or other organization (called the grantor) for specified purposes Municipal budget $FDWDVWURSKHERQGSDVVHVWKHLQVXUHU¶VH[WUHPHULVNVRQWRDYDULHW\RISULYDWHLQYHVWRUVZKRDUHZLOOLQJWR assume the risk of losing all investment principal (in the instance of a defined catastrophic condition) in exchange for the opportunity to earn substantial interest on their investment if no catastrophe occurs. 6RFLDOLPSDFWERQGVDUHDSDUWLFXODUNLQGRI³DFWLYH´ERQGZKLFKLVVWUXFWXUHGWRJHQHUDWHSURFHHGVWR finance specific measures intended to reduce a social ill, cost or risk. Insurance provides an important instrument for reducing the extent of possible losses to those who would otherwise want to invest and hold assets in a risky city district or urban infrastructure system. Financial instruments such as mortgages, automobile loans or credit card debt create relatively predictable revenue streams. The existence of a local tax assessment authority over geographic areas offers a unique opportunity to finance comprehensive resilience upgrades. Local governments have widely used value capture mechanisms and borrowing against future tax revenues, such as tax increment financing. Reserve fund inside municipality budget from previous years. Reserves can be used only for specific purpose such as recovery and reaction on disasters. Reserve fund from specific state authority as prime minister. They can provide specific grants and donations to cities during all phases of crisis management cycle.
Disaster resilient city and all task connected with it are high costly. None of stated financial instruments is able to fund all tasks. Therefore, it is necessary to use multisource financing. All crisis management phases have other needs for resources. Suitable mix of financial instruments is different in each phase (intentionally simplified to prevention, reaction and recovery). We argue that main determinant factors are capitalization (amount of money) and time availability (when city can use money) of financial instrument. According to factors, we argue that during prevention cities need many resources, but time availability is highest; during reaction cities need an average amount of money, but time availability is immediate during recovery cities need high amount of money, with average time availability. Analysis matrix for this approach is on fig. 2.
&/ Z Ks Zz
ĂƉŝƚĂůŝƐĂƚŝŽŶ
&/ʹ&ŝŶĂŶĐŝĂů ŝŶƐƚƌƵŵĞŶƚ
&/
&/
WZ s Ed/KE W Z &/
&/& Z d/KE
&/ hŶĨŝƚĨŽƌŶĞĞĚƐ ŽĨĐƌŝƐŝƐ ŵĂŶĂŐĞŵĞŶƚ
dŝŵĞĂǀĂŝůĂďŝůŝƚLJ
Fig. 2: Analysis of financial instruments usage during crisis management phases.
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Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
Every disaster resilient city has its own needs for capitalisation and time availability of funds. For each financial instruments, it is necessary to quantify and evaluate capitalisation and time availability. After calculations, researchers have to apply matrix analysis, which can create suitable mix for each crisis management phase. Usage of calculated instruments during phases is way to make city more disaster resilient. Analysis itself for chosen city in the Slovak Republic is not included in the conference paper because of limited range. 5. Conclusion 'LVDVWHUVKDYH VWURQJLQIOXHQFHRQFLWL]HQ¶VOLIH%HFDXVH RIWKDW FLWLHVKDYHWRDGRSWPHDVXUHV IRUVXVWDLQDEOH security environment of citizens. In conference paper, we focus on UNIDSR approach to disaster resilient city. Worldwide is over 3400 disaster resilient cities. Unfortunately, there is none in the Slovak Republic. We present current state of disaster resilience in the Slovak Republic. Despite of action plan about scaling climate change (where we can include resilient city), there isQW any progress in real application of resilient city/municipality. The Article also presents financial instruments suitable for disaster resilient city financing. These instruments are only generic in real application it is necessary to calculate capitalisation and time availability of each instrument. We also present analysis for further research, which determines suitable combination of financial instruments for each crisis management phase. Acknowledgements 7KLVZRUNVXSSRUWLQWHUQDOJUDQW,*3$SSOLFDWLRQRIUHVLOLHQWFLW\FRQFHSWLQäLOLQDFLW\ References [1] UNISDR, Sendai Framework, Geneva: UN, 2015. [2] UNISDR, Hyogo Framework, Geneva: UN, 2007. [3] .OXþND-5HVLOLHQFH2UJDQL]iFLH± 7HyULD$'{VOHGN\LQ5LHãHQLHNUt]RYêFKVLWXiFLtYãSHFLILFNRPSURVWUHGtäLOLQD )%,-272. pp. [4] UNIDSR, Terminology on Disaster Risk Reduction. Geneva: UN. 2009 [5] Brugmann, J., Financing the resilient city in Environment & Urbanization. Vol 24(1): 2012. 215±232. pp. [6] UNIDSR, How To Make Cities More Resilient A Handbook For Local Government Leaders. 2012. [7] UNIDSR, Making Cities Resilient: My City is Getting Ready. 2016. [8] 3ROHGĖiN32ULQþiN05LHãHQLHSUtURGQêFKNUt]RYêFKVLWXiFLtäLlina: Edis. 2011. 232 pp. [9] 0LQLVWU\RIHQYLURQPHQWRIWKH6ORYDN5HSXEOLF,QIRUPiFLHRSULHEHKXDQiVOHGNRFKSRYRGQtQD~]HPt65 [10] .OXþND-(NRQRPLNDNUt]RYpKRPDQDåPHQWX9\GDQLHäLOLQD (',6 SS [11] %HWiNRYi-HWDO 2015. An assessment of measures for the prevention of the origin and consequences of a selected group of exceptional events in a territorial unit, In: The Sustainable City X. 2015. 251-261. pp. [12] +DYNR-2QGU~ãNRYi+)LQDQFRYDQLHNUt]RYpKRULDGHQLDPLHVWDREFt,Q 0DQDåPHQW- WHyULDYêXþEDDSUD[-73. pp. [13] European Commission, The EU Strategy on adaptation to climate change. 2016 [14] 0LQLVWU\RIHQYLURQPHQWRIWKH6ORYDN5HSXEOLF6WUDWpJLDDGDSWiFLH6ORYHQVNHMUHSXEOLN\QDQHSULD]QLYpG{VOHGN\]PHQ\NOtP\ [15] Hochrainer, S., et al., Funding public adaptation to climate-related disasters. Estimates for a global fund. Global Environmental Change, 25(1), 2014. 87-96. pp. [16] Hochrainer, S., Macroeconomic risk management agains natural disasters. Vienna: DUV, 2006. [17] Pollner, J., 2012. Financial and Fiscal Instruments for Catastrophe Risk Management. 2012.
ScienceDirect Procedia Engineering 192 (2017) 301 – 306
TRANSCOM 2017: International scientific conference on sustainable, modern and safe transport
Financing the disaster resilient city in the Slovak Republic -iQ+DYNRa*9HURQLND0LWDãRYia7RPiã3DYOHQNRa, Michal Titkoa-DQD.RYiþRYia a
Faculty of Security Engineering, University of Žilina, Univerzitná 8215/1, 010 26 Žilina, Slovak Republic
Abstract This paper presents a framework for scaling climate change adaptation in cities in the Slovak Republic. The framework specifically focuses on the requirements of financial resources mobilizing for climate change adaptation and other urban risk reduction. An article is elaborated through the resilient city concept, an ability of urban areas and their individual assets to perform a basics service for stakeholders under a wide range of condition. The purpose of the article is to identify and analyze funding resources for disaster resilient city in the European Union. 2017 2017The TheAuthors. Authors.Published Published Elsevier © by by Elsevier Ltd.Ltd. This is an open access article under the CC BY-NC-ND license Peer-review under responsibility of the scientific committee of TRANSCOM 2017: International scientific conference on (http://creativecommons.org/licenses/by-nc-nd/4.0/). sustainable,under modern and safe transport. Peer-review responsibility of the scientific committee of TRANSCOM 2017: International scientific conference on sustainable, modern and safe transport Keywords: disaster resilient city; crisis management; financing resilient city
1. Introduction Frequency of natural and manmade disasters occurrence have raised during last years. Reason for this negative trend possibly come from global warming/climate change on the planet. Consequences of these disasters are even bigger than it was before (economic losses, numbers of affected people, and numbers of deaths...). According to UNIDSR [1], nowadays are 9 from 10 disasters caused by climate change. Disasters have bigger impact on inhabitants, companies, communities and countries because infrastructure is still complicated and connected, population growth on planet has still growing trend and resources (water, oil, gas, food, etc.) are limited. Immediate reaction for this negative trend in the world was adoptions of several frameworks by international crisis management organizations. Crisis management organizations adopted several frameworks/action plans for dealing with this negative trend. From wide spectrum of international crisis management organizations, we focused on United Nations approach.
* Corresponding author. Tel.:+421415136720. E-mail address: [email protected]
1877-7058 © 2017 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of TRANSCOM 2017: International scientific conference on sustainable, modern and safe transport
doi:10.1016/j.proeng.2017.06.052
302
Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
UN adopted several frameworks. Namely, it was Yokohama (1994), Hyogo (2005) and Sendai (2015). In these frameworks [1,2] are stated main goals, priorities and tools for handling of the disasters consequences, respectively to change negative trend of disasters development. One of Main goals of Sendai Framework has been significantly decrease of disasters emergence risk probability and decrease numbers of affected peoples, damages on property caused by disasters. In the next chapter there will be short introduction into disaster resilient city topic (what it is). The fundamental idea of resilience comes from Ch. Darwin a research result where he declared >@ Ä1RWWKHVWURQJHVWRU WKHPRVWLQWHOOLJHQWZLOOVXUYLYHEXWDRQHZKRLVWKHPRVWDGDSWLYH³$FFRUGLQJWR81WHUPLQRORJ\>@UHVLOLHnce is ability of a system, community or society exposed to hazards to resist, absorb, accommodate to and recover from the effects of a hazard in a timely and efficient manner, including through the preservation and restoration of its essential basic structures and functions5HVLOLHQFHPHDQVWKHDELOLW\WR³UHVLVWIURP´RU³VSLQEDFNIURP´DVKRFN Requirements for its application on state/regional/municipal level is high costly. The article pays attention to UNIDSR resilient city concept application and iW¶V financing. 2. Disaster resilient city concept Cities are complex systems consisting from lot of SDUWV LQIUDVWUXFWXUHSHRSOHJRYHUQPHQWERGLHV« 7KH\DUH characterized by intense, regular interactions that are structured in identifiable activity areas such as a district, or in key resource management or mobility sub-systems, for example urban drainage or energy systems. The character of urban districts as complex place-based systems is very different to that of lower-density rural areas where activities are more spatially separated and interactions are less intense [5]. Cities are closer to citizens than countries. They can have much more impact on people behavior. In large cities, individuals feel anonymously to its surrounding. Nevertheless, individuals voluntarily become members of local communities. Cities provide several services like educations, healthcare, building and carrying about infrastructure and they provide preparation for disasters solving. A disaster resilient city [6] ´ is one where disasters are minimized (probability of disasters occurrence and disasters consequences are as low as possible) because the population lives in homes and neighborhoods with organized services and infrastructure that adhere to sensible building codes; without informal settlements built on flood plains or steep slopes because no other land is available. Resilient city has taken steps to anticipate and mitigate the consequences of disasters, incorporate monitoring and early warning technologies to protect infrastructure, community assets and individuals, include their homes and possessions, cultural heritage, environmental and economic capital, and is able to minimize physical and social losses arising from extreme weather events, earthquakes or other natural or manmade hazards. Is able to respond, implement immediate recovery strategies and quickly restore basic services to resume social, institutional and economic activity after such an event´. Worldwide there is 3410 resilient cities according to UNIDSR [7]. This represent just a small part of all cities around the world. In the Europe, they are spread the most. There are 10 essential things, which can make cities more resilient according to UNIDSR [6]: x Institutional and Administrative Framework (Put in place organisation and coordination to understand and reduce disaster risk, based on participation of citizen groups and civil society. Ensure that all stakeholders understand their role in disaster risk reduction and preparedness), x Financing and Resources (Assign a budget for disaster risk reduction. Prepare resources for reaction on disasters and recovery after disasters), x Multi-hazard Risk Assessment- Know your Risk (Maintain up to date data on hazards and vulnerabilities. Prepare risk assessments.) x Infrastructure Protection, Upgrading and Resilience (Invest in and maintain critical infrastructure that reduces risk, such as flood drainage, adjusted where needed to cope with climate change) x Protect Vital Facilities: Education and Health (Assess the safety of all schools and health facilities and upgrade these as necessary.) x Building Regulations and Land Use Planning (Apply and enforce realistic, risk compliant building regulations and land use planning principles.) x Training, Education and Public Awareness (Ensure that education programmes and training on disaster risk reduction are in place in schools and local communities.)
Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
x Environmental Protection and Strengthening of Ecosystems (Protect ecosystems and natural buffers to mitigate floods, storm surges and other hazards to which city may be vulnerable. Adapt to climate change by building on good risk reduction practices) x Effective Preparedness, Early Warning and Response (Install early warning systems and emergency management capacities in city and hold regular public preparedness drills) x Recovery and Rebuilding Communities (After any disaster, ensure that the needs of the affected population are placed at the centre of reconstruction.) These steps are only generic and its application and implementation in each country depends on conditions, political environment, security situations. For our research is main research field financing and resources from ten essentials. As it was stated above there is none disaster resilient city in the Slovak Republic. Next chapter focuses on the current situation in disaster resilience topic in the Slovak Republic. 3. Disaster resilient city in condition of the Slovak Republic Security environment in the Slovak Republic is stable as in other EU countries. The most significant risks are natural disasters, mainly floods [8]. Floods made a serious economic damage during last 20 years. In economic losses, it was over 1 billion of euros. More than half of these damages was on municipality level and on property of inhabitants [9, 10]. Legislation in security environment is very comprehensive. Basis of legal system consist of constitution of the Slovak Republic, which guarantee fundamental human rights and freedoms. It creates conditions to ensure the sovereignty of the state and the integrity of its border and protection of life, health and the environment as fundamental values. During more than twenty years of the Slovakia Republic existence have been gradually approved legal acts, which have shaped crisis management structure in the Slovak Republic. We argue that crisis management system in the Slovak Republic has several problems, which are serious nowadays, not even after consequences of climate change. Closely linked to the resilience topic problems are: x Land use planning consist from legislation from 1976. This act was amended a few times, but current dynamic development of society requires the newest best practice [11], x Funding of several tasks is insufficient. Municipalities have a several tasks arising from legislation in civil protection field. Research in [12] leads to conclusion that almost 90 % of municipalities are not able to fund their tasks, x In the Slovak Republic it is obvious a problem with responsibility and competences between state administration and municipality level. According to legal system, almost all of tasks in crisis management are on state administration. In ethical dimension, it leads us to question if it is not better to give more responsibilities and competences to municipality level, x Legal system in crisis management field has a wide range. There isQW any specific act for all types of crisis phenomena. Mixture of all tasks from all legal act can seriously confuse mayor of municipalities (mayor is responsible for solving the crisis phenomena in his/her city). Presented problems directly linked with resilience framework from UNIDSR can be understood as challenge. Challenge in way of solution of these problems. It could be solved separately, but resilient city includes outlines of all these problems. Question is how to apply best practice of resilient city in conditions of the Slovak Republic. The Slovak Republic has to adopt action plan for scaling climate changes. This task consists from EU adaptation strategy on climate change [13]. The National adaptation strategy for negative consequences of climate change was elaborated by Ministry of Environment of the Slovak Republic. Scenario based on the assumption of global warming FRXOGPHDQDQLQFUHDVHRIDYHUDJHDQQXDOWHPSHUDWXUHXSWR&IRUWKH6ORYDNRepublic. That could seriously affect human health, food production, and lack of drinking water. Measures related to adaptation for these changes are costly. The document, which would deal with the issue of adaptation and risk management related to natural disasters, does not exist in the Slovak Republic. The National adaptation strategy for negative consequences of climate change is a comprehensive document, which pay attention to starting point, impacts of climate change in particular areas, proposed adaptation measures and subsequent adoption of measures, funding, monitoring and review. Considering the extensiveness of the document, there are many aims defined. The most important aims are [14]:
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304
Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
x Proposal of proactive adaptation measures and mechanisms for their implementation in the context of sectoral policies, development strategies and action plans at all levels, x Identification of best practices in risk prevention and risk management in the context of natural disasters, in order to minimize the social and economic damages, x Creation of basic informational and institutional infrastructure that would enable efficient and cost-effective adaptation to the adverse effects of climate change. At present, do not exist any systemic approaches to adaptation at the local and regional level in the Slovak Republic. Climate changes and its impact on the territory, population and economy are not taking a significant part in urban planning and regional development. There are also not defined criteria for effective decisions making process of government entities with respect to climate change mitigation in the settlements and there is lack of methodology and binding procedures for local adaptation. In spite of absence of the disaster resilience city real application in the Slovak Republic, we argue that it is necessary to create this academic research concerning financing disaster resilient city. An action plan remains just that²a plan² unless it has dedicated resources to ensure that actions in practice. 4. Financing the disaster resilient city in the Slovak Republic This chapter presents possible resources for disaster resilient city financing. We also describe analysis of financial instruments for its usage in each part of crisis management phase (prevention, mitigation, preparedness, rescue and relief, recovery, rehabilitation and reconstruction). Each country/municipality is able to invest a different amount on these phases and their ability to be resilient is therefore different. For our article is important how country/city is financially vulnerable to disasters. Based on scientific resources that kind of research made only for countries [15]. Analysis is about financial vulnerability (related to lack of resources). The result of analysis is in fig. 1.
Fig. 1. Global map exhibiting calculations of the resource gap year [15].
Fig. 1 says about the financial vulnerability of countries to disasters consequences. The most vulnerable countries are "third world" countries. Unfortunately, one of the analysis conclusions is the fact that the Slovak Republic belongs to a group of the most vulnerable countries in the world. Financial instruments and its usage during crisis management phases is objective of a many international research [5, 15, 16, 17]. In the Slovak Republic, it is not so often [10]. From scientific resources we create a table 1, where are describe most common financial instruments for disaster resilient city financing in condition of the Slovak Republic.
Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
Table 1. Financial instruments for disaster resilient city financing [5, 10, 15, 16, 17]. Financial instrument Grant Budget Catastrophe bond
Social impact bond Insurance Securitization/structured finance Value capture
Municipality funds State funds
Description Bounty, contribution, gift, or subsidy (in cash or kind) bestowed by a government or other organization (called the grantor) for specified purposes Municipal budget $FDWDVWURSKHERQGSDVVHVWKHLQVXUHU¶VH[WUHPHULVNVRQWRDYDULHW\RISULYDWHLQYHVWRUVZKRDUHZLOOLQJWR assume the risk of losing all investment principal (in the instance of a defined catastrophic condition) in exchange for the opportunity to earn substantial interest on their investment if no catastrophe occurs. 6RFLDOLPSDFWERQGVDUHDSDUWLFXODUNLQGRI³DFWLYH´ERQGZKLFKLVVWUXFWXUHGWRJHQHUDWHSURFHHGVWR finance specific measures intended to reduce a social ill, cost or risk. Insurance provides an important instrument for reducing the extent of possible losses to those who would otherwise want to invest and hold assets in a risky city district or urban infrastructure system. Financial instruments such as mortgages, automobile loans or credit card debt create relatively predictable revenue streams. The existence of a local tax assessment authority over geographic areas offers a unique opportunity to finance comprehensive resilience upgrades. Local governments have widely used value capture mechanisms and borrowing against future tax revenues, such as tax increment financing. Reserve fund inside municipality budget from previous years. Reserves can be used only for specific purpose such as recovery and reaction on disasters. Reserve fund from specific state authority as prime minister. They can provide specific grants and donations to cities during all phases of crisis management cycle.
Disaster resilient city and all task connected with it are high costly. None of stated financial instruments is able to fund all tasks. Therefore, it is necessary to use multisource financing. All crisis management phases have other needs for resources. Suitable mix of financial instruments is different in each phase (intentionally simplified to prevention, reaction and recovery). We argue that main determinant factors are capitalization (amount of money) and time availability (when city can use money) of financial instrument. According to factors, we argue that during prevention cities need many resources, but time availability is highest; during reaction cities need an average amount of money, but time availability is immediate during recovery cities need high amount of money, with average time availability. Analysis matrix for this approach is on fig. 2.
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Fig. 2: Analysis of financial instruments usage during crisis management phases.
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Ján Havko et al. / Procedia Engineering 192 (2017) 301 – 306
Every disaster resilient city has its own needs for capitalisation and time availability of funds. For each financial instruments, it is necessary to quantify and evaluate capitalisation and time availability. After calculations, researchers have to apply matrix analysis, which can create suitable mix for each crisis management phase. Usage of calculated instruments during phases is way to make city more disaster resilient. Analysis itself for chosen city in the Slovak Republic is not included in the conference paper because of limited range. 5. Conclusion 'LVDVWHUVKDYH VWURQJLQIOXHQFHRQFLWL]HQ¶VOLIH%HFDXVH RIWKDW FLWLHVKDYHWRDGRSWPHDVXUHV IRUVXVWDLQDEOH security environment of citizens. In conference paper, we focus on UNIDSR approach to disaster resilient city. Worldwide is over 3400 disaster resilient cities. Unfortunately, there is none in the Slovak Republic. We present current state of disaster resilience in the Slovak Republic. Despite of action plan about scaling climate change (where we can include resilient city), there isQW any progress in real application of resilient city/municipality. The Article also presents financial instruments suitable for disaster resilient city financing. These instruments are only generic in real application it is necessary to calculate capitalisation and time availability of each instrument. We also present analysis for further research, which determines suitable combination of financial instruments for each crisis management phase. Acknowledgements 7KLVZRUNVXSSRUWLQWHUQDOJUDQW,*3$SSOLFDWLRQRIUHVLOLHQWFLW\FRQFHSWLQäLOLQDFLW\ References [1] UNISDR, Sendai Framework, Geneva: UN, 2015. [2] UNISDR, Hyogo Framework, Geneva: UN, 2007. [3] .OXþND-5HVLOLHQFH2UJDQL]iFLH± 7HyULD$'{VOHGN\LQ5LHãHQLHNUt]RYêFKVLWXiFLtYãSHFLILFNRPSURVWUHGtäLOLQD )%,-272. pp. [4] UNIDSR, Terminology on Disaster Risk Reduction. Geneva: UN. 2009 [5] Brugmann, J., Financing the resilient city in Environment & Urbanization. Vol 24(1): 2012. 215±232. pp. [6] UNIDSR, How To Make Cities More Resilient A Handbook For Local Government Leaders. 2012. [7] UNIDSR, Making Cities Resilient: My City is Getting Ready. 2016. [8] 3ROHGĖiN32ULQþiN05LHãHQLHSUtURGQêFKNUt]RYêFKVLWXiFLtäLlina: Edis. 2011. 232 pp. [9] 0LQLVWU\RIHQYLURQPHQWRIWKH6ORYDN5HSXEOLF,QIRUPiFLHRSULHEHKXDQiVOHGNRFKSRYRGQtQD~]HPt65 [10] .OXþND-(NRQRPLNDNUt]RYpKRPDQDåPHQWX9\GDQLHäLOLQD (',6 SS [11] %HWiNRYi-HWDO 2015. An assessment of measures for the prevention of the origin and consequences of a selected group of exceptional events in a territorial unit, In: The Sustainable City X. 2015. 251-261. pp. [12] +DYNR-2QGU~ãNRYi+)LQDQFRYDQLHNUt]RYpKRULDGHQLDPLHVWDREFt,Q 0DQDåPHQW- WHyULDYêXþEDDSUD[-73. pp. [13] European Commission, The EU Strategy on adaptation to climate change. 2016 [14] 0LQLVWU\RIHQYLURQPHQWRIWKH6ORYDN5HSXEOLF6WUDWpJLDDGDSWiFLH6ORYHQVNHMUHSXEOLN\QDQHSULD]QLYpG{VOHGN\]PHQ\NOtP\ [15] Hochrainer, S., et al., Funding public adaptation to climate-related disasters. Estimates for a global fund. Global Environmental Change, 25(1), 2014. 87-96. pp. [16] Hochrainer, S., Macroeconomic risk management agains natural disasters. Vienna: DUV, 2006. [17] Pollner, J., 2012. Financial and Fiscal Instruments for Catastrophe Risk Management. 2012.