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Summary

This study provides a systematic cost-benefit analysis of a community-based disaster risk management project led by Practical Action in two districts of Nepal over the period 2007 to 2010. Under cautious assumptions about the long-term impacts of the project initiatives, the overall benefit-cost ratio ranges from 1.13 to 1.45, while under moderately optimistic assumptions the estimated benefit-cost ratio is up to 2.04. The internal rate of return of the project is between 22.2 and 26.3 percent. These findings indicate that the livelihood-centered approach to disaster risk reduction adopted in this project has resulted in a significant net contribution to the economic welfare of the target communities and delivered value for money.