Publication: Rethinking Resilience: Adapting to a Changing Climate
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2025-10-31
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2025-10-31
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Climate change is accelerating, and harmful weather events—such as extreme storms, droughts, heat waves, or wildfires—are becoming more frequent and severe. Lower-income countries suffer more deaths and lasting losses from disasters than richer countries. Climate shocks push vulnerable households into poverty and cause small businesses to fail, reversing development gains.
"Rethinking Resilience" urges developing countries to adopt policies that empower individuals, households, farms, and firms to take proactive measures. Current approaches rely too heavily on government programs and investments, such as subsidies and cash transfers, which are reactive rather than preventive. Developing economies lack the resources of high-income countries, making them more vulnerable.
To build resilience, developing countries should focus on raising household incomes, delivering reliable public information, and developing robust insurance markets. Resilience measures should prioritize income growth, reliable information, and private insurance, with infrastructure and public interventions rounding out the package. Utilizing this five-pronged strategy, governments can empower households, farms, and firms to build resilience successfully.
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Shilpi, Forhad, Matthew E. Kahn, and Claudia Berg. 2025. “Rethinking Resilience: Adapting to a Changing Climate.” Advance Edition. Policy Research Report. Washington, DC: World Bank. License: Creative Commons Attribution CC BY 3.0 IGO
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