#Tropico 1 presidente slush fund full#
It covers the full cost of the reconstruction of any federally owned infrastructure and 50 per cent of the cost of any state or municipally owned infrastructure. Other infrastructure, FONDEN acts like an insurer. Instead of purchasing insurance for each government-owned road, school, hospital, water distribution pipe, electricity line, and piece of Initially, it was intended to finance post-disaster reconstruction of public infrastructure and low-income housing without the need to gouge other parts of the national budget in the event of a disaster. One component of this effort was the establishment in 1996 of the Natural Disaster Fund (Fondo Nacional de Desastres Naturales), commonly known as FONDEN. The 1985 quake triggered a national dialogue on disaster risk management, and the government of Mexico responded by making it a national priority and by investing to make the country more resilient. However, despite being a reasonably well-off middle-income country, it was underprepared to deal with such a calamity, and serious political fallout followed. With its diverse geography, the country is in fact exposed to a wide variety of geological and hydro-meteorological hazards: earthquakes, volcanoes, tsunamis, hurricanes, wildfires, floods, landslides, and droughts.
That Mexico should be hit by such an extreme event like this earthquake should not have come as a surprise. The city suffered major damage because of the large magnitude of the quake and the ancient lake bed on which Mexico City sits. It killed at least 5,000 people, and left some 250,000 homeless. In the early morning of 19 September 1985, an earthquake that registered 8.0 on the Richter scale struck Mexico City, bringing down tens of thousands of buildings and seriously damaging tens of thousands more. Keywords: actuarially sound, disaster risk finance, contingent credit, contingency fund, insurance, indexed insurance, budget volatility, risk-based pricing, insurance subsidies Subsidized financial instruments can be used to encourage others to contribute towards the cost of well-defined plans. Financial instruments can enable multiple parties to contribute to the same plan. Traditional reinsurance can be particularly useful for locking in plans for reconstruction, and indexed reinsurance can play the same role for financing indexed early actions. The triggers in the financial strategy should match the triggers in the plan. Speed matters but not all resources are needed at once. Discipline, cost, accuracy, and speed all matter when structuring a disaster risk financing strategy. It is important to pay for financial advice and build in-house expertise. When designing and implementing disaster risk financing strategies, details matter. Financial and budgetary instruments are the glue that holds credible plans together and makes them strong enough to withstand the whirlwind of highly charged post-disaster politics.