This working paper draws from the joint World Bank and World Meteorological Organization / Global Water Partnership Integrated Drought Management Program (IDMP) work stream on benefits of action and costs of inaction (BACI) for drought preparedness and mitigation. It suggests a methodological framework for assessment of BACI as a tool to support a shift in drought policy and programs from crisis management to a risk management approach. The framework should be systematic enough to allow for comparability across countries and contexts, with the option of being tailored to the context in which it is being used. In proposing an initial framework for BACI analysis, the authors use the ten-step methodology for developing drought strategies that was created by Wilhite et al. and subsequently codified by IDMP to help organize the assessment. In this way, the authors embed the BACI assessment in the overall development of a drought risk management strategy. This document is a first approach to guide those responsible for drought management and BACI assessments to ask the right questions at the different stages. Key next steps are to experiment with this draft approach by applying it in multiple contexts to test its usability and to develop more case study examples to showcase how this process can be undertaken and how it can be advantageous to stimulate positive action.

Over the past decade there have been extraordinary advances towards drought risk reduction with the development of new water-conserving technologies, and new tools for planning, vulnerability and impact assessment, mitigation, and policy. Drought and Water Crises: Integrating Science, Management, and Policy, Second Edition comprehensively captures this evolving progress as it discusses drought management in the light of present risks, global climate change and public policy actions. This new edition emphasizes the paradigm shift from managing disasters to managing risk, reflecting the global emphasis that has evolved in recent years, a new focus that shines light on preparedness strategies and the tools and methods that are essential in drought risk reduction. The book provides additional relevant case studies that integrate this new approach and discusses examples applied in both developed and developing countries.

Over the last three decades drought episodes have resulted in severe social problems in Mediterranean countries, receiving broad attention from the international scientific and policy communities. The experiences in the development and implementation of drought management plans highlight the success and challenges of coping with drought for societies with different vulnerabilities and emphasize risk-based drought management as a critical approach to mitigate the impacts associated to drought-induced water shortages. Based on these experiences and the current methods for evaluating risk, the book synthesises guidelines for drought management that link science and policy and that can be applied to other regions. The book comprises a collection of papers divided into four sections that appeal to a broad audience. First, the social and hydrological context of Mediterranean countries is presented, discussing the interactions that have resulted in the complex institutional framework, and highlighting the importance of stakeholder involvement and awareness building for successful drought management. This section emphasises the role of organizations, institutions, and civil stakeholders involved in drought preparedness and mitigation and/or on water management for designing effective risk based strategies that mitigate the effects of drought in agriculture and water supply systems. Second, the book presents an academic approach to risk evaluation, including characterization of drought episodes, development of indicators of risk in hydrological and agricultural systems, and analysis of the role of economic instruments and groundwater for risk mitigation. This section finalises with the description of an integrated method for evaluating social vulnerability based on indicators that include the capacity to anticipate, cope, and respond to drought. The third section includes a collection of case studies that include the description of effective measures taken in the past. These case studies provide the context for developing demand driven guidelines that may be applied to other regions. The authors of these chapters can be viewed as stakeholders in drought management, since they represent a broad range of sectors and institutions from Mediterranean European and North African countries. The topics addressed have implications for the international policy community interested in disaster mitigation, agricultural policy, and development. Finally a synthesis of the management actions is presented in four chapters. Monitoring and preparedness planning is the essential first step for moving from disaster to risk management in response to drought. The management actions related to agriculture and water supply systems are presented in two different chapters but with a common conceptual framework based on the use of drought indicators for evaluating the levels of drought risk (pre-alert, alert, and emergency), that allow establishing linkages between science and policy. The final chapter discuses the lessons learned and application to other regions.

Australia and the United States face very similar challenges in dealing with drought. Both countries cover a range of biophysical conditions, both are federations that provide considerable responsibility to state governments for water and land management, and both face the challenges in balancing rural industry and urban development, especially in relation to the allocation of water. Yet there are critical differences in their approaches to drought science and policy. Drought, Risk Management, and Policy: Decision Making under Uncertainty explores the complex relationship between scientific research and decision making with respect to drought in Australia and the United States. Risk Management, not Crisis Management Drawing on the work of respected academic researchers and policy practitioners, the book discusses the issues associated with decision making under uncertainty and the perspectives, needs, and expectations of scientists, policy makers, and resource users. Starting from the position that drought is a risk to be managed, it considers the implications of the predicted impacts of future climate change. The book also examines the policy responses to these challenges and the role of scientific input into the policy process. Contributors look at drought risk management in action and how end users in the community incorporate drought science into their decision making. The book concludes with lessons learned about science, policy, and managing uncertainty. Get Insight into the Relationship between Science and Policy—and How to Turn That into More Effective Decision Making Throughout, the contributors identify possible reasons for differences in the use and application of drought sciences and approach to policy between the two countries, offering valuable insight into the relationship between scientific advice and the policy process. They also highlight the challenges faced at the science–policy interface. Crossing international borders and disciplinary boundaries, this timely collection tackles drought policy development as part of the broader discussion about climate change. Although the focus is on Australia and the United States, many of the lessons learned are relevant for any country dealing with drought.

This report is a component of the Research Program on Climate Change, Agriculture, and Food Security (CCAFS)–-funded project “Impacts of Climate Extremes on Future Water and Food Security in South Asia and East Africa.” The goal of the project was to characterize extreme drought events, to improve on a methodology to assess the probability of these events in the future under climate change, to illustrate their impacts, and to provide suggestions on coping strategies. The present report sets the stage for the overall project by undertaking a review of the causes of vulnerability to drought in East Africa and the western Indo-Gangetic Plain (IGP) of South Asia, and discussing the options to increase resilience to drought in the agricultural sector. Agriculture is a high-risk endeavor in both regions, due to a combination of recurrent droughts—which may intensify due to climate change—poor soil fertility, and a host of constraints faced by farmers, especially low access to input and output markets. These factors, combined with farmers’ high aversion to risk, stifle investments in agriculture, resulting in continuous underachieving production, low income, and persisting poverty.

In this paper we explore the potential for a new approach to managing drought risk among rainfed rice producers in Odisha, India. Droughts have historically been a serious constraint to agricultural production in rainfed agricultural systems, with droughts resulting in significant reductions in both yields and cultivated area, in turn leading to significant impacts on rural livelihoods and food security. Scientists and policy makers have proposed various strategies for managing risks, with limited success. In this study we consider two such strategies, specifically drought-tolerant rice and weather index insurance. While neither drought-tolerant cultivars nor weather index insurance products are perfect solutions for adequately managing drought risk in and of themselves, there is scope to exploit the benefits of each and bundle them into a complementary risk management product, specifically through proper index calibration and an optimized insurance design. In this study, we explore preferences for such a complementary risk management product using discrete choice experiments in Odisha, India. We are able to estimate the added value that farmers perceive in the bundled product above and beyond the value associated with each of the independent products. We also show that valuations are sensitive to the basis risk implied by the insurance product, with farmers less enthusiastic about risk management products that leave significant risks uninsured.