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Disaster Management
QUESTION #6519
Question 1
What is the primary limitation of ex-post disaster risk financing compared to ex-ante mechanisms?
Correct Answer Explanation
Section 9 explicitly states that Pakistan's historical reliance on ex-post instruments (budget reallocation, credit access) has overshadowed sustainable solutions. Ex-post financing creates fiscal strain, delays response, and diverts resources from development priorities, whereas ex-ante instruments (insurance, contingency funds) provide immediate, predictable funding.
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