Sergio Margulis

Sergio Margulis, World Bank Economist, discusses the economics of adaptation to climate change and the results of their recent study. He points out that adaptation alone, for developing countries, at US$70-100 billion, is 2.2% of the yearly GDP of the developing countries, and 80% of official development aid. He points out development is good for the economy and adaptation. The research also looked at seven developing countries and discusses the different ways the countries are exposed. He relates that infrastructure is the most costly area, and says that, for example, islands are particularly expensive because of the need for coastal protection. He says their two recommendations are firstly grow, develop, implement institutions, but secondly address and prioritise current problems – these are only going to get worse, and therefore more expensive.