From earthquakes to landslides to volcanic eruptions, devastating natural hazards are common in Guatemala, threatening to reverse its hard-won development gains. For example, in 2020, Hurricanes Eta and Iota caused infrastructure-related losses equivalent to 0.6 percent of the country’s GDP and agricultural losses of about 0.2 percent of GDP.
Determined to chart a brighter future for the 17.6 million Guatemalans, the government of Guatemala continues to put disaster risk management (DRM) and resilience at the top of its development agenda. GFDRR remains a steadfast partner in those efforts, working closely with key ministries and the lead DRM agency (the National Coordination for Disaster Reduction, or CONRED) to increase Guatemala’s resilience. A recent priority for GFDRR has been helping the government strengthen its legal, policy, and institutional framework for DRM.
GFDRR has supported the Ministry of Finance on a technical assessment to evaluate and propose options for strengthening Guatemala’s financial resilience to disasters, including development of new contingent financing instruments to address future disasters, such as creation of a dedicated disaster reserve fund. The proposed fund would mark a significant milestone in Guatemala’s efforts to enhance disaster risk financing, offering a sustainable source of funding for disaster prevention, recovery, and response. To identify and assess options, the technical team conducted a detailed analysis of critical areas such as feasibility, scope, funding sources, and alignment with the country’s existing legal and institutional frameworks.
GFDRR has also supported a technical assessment of the challenges and opportunities in improving DRM in the tourism sector, one of the country’s major drivers of jobs and growth. A key insight from this assessment is that DRM efforts in the tourism sector can be more effective and sustainable if host communities, including indigenous populations, are fully engaged in planning and managing tourist destinations, including with respect to DRM. Informed by the assessment, the government of Guatemala has released an updated national sustainable tourism policy that not only incorporates DRM for the first time, but also emphasizes the importance of engaging indigenous communities to drive resilient tourism. In line with the policy, emergency response plans are expected to be implemented in some of the country’s most disaster-vulnerable tourist attractions.
Little girls in front of a souvenir shop in San Antonio Palopo. Photo: © Stefano Barzellotti.
In conjunction with its support for these assessments, GFDRR continues to provide technical assistance and capacitybuilding to support the country’s ongoing efforts to strengthen its approach to DRM. For instance, a technical team has been directly engaged with CONRED to support the development of a methodology; a logical framework; and planning, monitoring, and evaluation processes for the country’s updated national DRM policy, which broadly aims to move the country from response to resilience in its approach to DRM.
Collectively, these efforts have informed the design of a $430 million third development policy loan with Cat DDOs for Guatemala, which the World Bank is expected to approve in fiscal year 2025. Cat DDOs are standby loan facilities that provide immediate liquidity in the aftermath of a disaster or emergency, contingent on policy actions designed to increase a country’s DRM capacity.
GFDRR has a long history of partnership with Guatemala dating back to the facility’s inception in 2007. For example, technical assistance from the facility previously paved the way for the Bank’s approval of two earlier Cat DDOs. In the aftermath of the devastating Volcán de Fuego eruption in 2018, GFDRR played a key role in not only enabling a deep understanding of the damage experienced within just weeks of the disaster, but also in designing and implementing a roadmap for resilient recovery for the affected communities.
