The exposure of low- and middle-income countries to natural disasters is increasing. Because of a variety of factors, ranging from the growing concentration of population and assets in risky areas to increases in climate variability, the economic costs of major slow-onset disasters (e.g., drought) and rapid-onset disasters (e.g., hurricanes, earthquakes) in developing countries are on the rise. Although the costliest disasters generally occur in developed countries, which have the highest concentration of assets, small island economies experience the largest capital stock losses as a proportion of gross domestic product (GDP). Middle-income countries have experienced the largest direct losses, in terms of annual average direct losses compared to GDP.[…]