Over the past years, both the frequency and impact of disasters have been increasing worldwide. In the first decade of the new millennium, a string of severe disasters hit countries on all continents. Most notable were the 2004 Indian Ocean earthquake and tsunami which claimed over 250,000 lives, the Haiti Earthquake which killed over 220,000 people and caused an economic impact equivalent to 120% of GDP, floods in Pakistan affecting 20 million people, but also additional earthquakes in Indonesia, floods and droughts throughout Africa, heat waves and fires in Europe, hurricanes in Central America, the Caribbean and the United States, and landslides triggered by typhoons in South East Asia.

The social impact of disasters is highest in developing countries, where poor populations are most vulnerable and least resilient. The economic impact of disasters amounted to 63 billion USD in 2009. By the turn of the century, damages from weather-related hazards can triple to $185 billion annually, without taking climate change effects into account. Factoring in climate change could then add another $28–$68 billion from tropical cyclones alone, according to Natural Hazards, Unnatural Disasters: The Economics of Effective Prevention, a joint World Bank–United Nations publication, released in November 2010. In order to reduce vulnerabilities of the natural and built environment, the understanding of the social, economic and financial implications of disasters is becoming a priority for governments. The Damage, Loss and Needs Assessment (Dala) methodology, developed by the Economic Commission for Latin America and the Caribbean (ECLAC) in the 1970s, has evolved as a globally recognized and applied tool to quantify the impacts of disasters, and to determine the necessary financial resources to achieve full reconstruction and recovery. Consistently using this methodology identifies the socio-economic impact of any given disaster, as well as the exposure of sector assets. It also reinforces resilience by promoting the “Build Back Better” principles in reconstruction and recovery efforts.