Cost Benefit analysis for Community- Based Disaster Risk Reduction in Kailali, Nepal

This Cost Benefit Analysis was undertaken to provide Mercy Corps with a quantitative analysis to complement the qualitative benefits that we have observed throughout the life of our DRR project which is being implemented in Nepal. The Kailali Disaster Risk Reduction Initiatives (KDRR) project, at the heart of this study, assists riverside communities in the far western Kailali District of Nepal where we are working in cooperation with the Nepali Red Cross Society (NRCS) Kailali District Chapter. The project is funded by ECHO, under its DIPECHO Fourth and Fifth Action Plans for South Asia, and includes local capacity building and training for community disaster management committees, the development of early warning systems, small scale mitigation works, and support to young rescuers clubs in schools that are devoted to learning about and passing on knowledge of disaster risk management. The study is a cost benefit analysis (CBA) of The Kailali Disaster Risk Reduction Initiatives (KDRRI)-- the disaster risk reduction (DRR) project undertaken by Mercy Corps Nepal and the Nepal Red Cross Society (Kailali District Chapter) during 2007-2009 in Kailali, Nepal to help selected communities address the adverse impacts of severe annual flooding. The study has two primary goals: 1) to assess the cost effectiveness of the KDRRI project, and 2) to create a quantitative methodology for assessing the cost-effectiveness of community-based DRR projects that is generalizable (applicable to various types of DRR projects, in various cultural, economic or environmental contexts), and which can be quickly, cheaply, and easily applied. To accomplish these goals the study employs social science research methods (structured surveys, field visits, and interviews) for data collection in combination with a mathematical model and computer program called Community-based Sigmoid Exponential Disaster Risk (CSEDR) for data analysis. Both methodologies were developed especially for the unique scenario of evaluating community-based DRR projects.