Climate change presents a new type of challenge for development. It is, by now, widely acknowledged that climate-change impacts amplify existing unfavorable conditions for developing countries (McCarthy et al.2001). It is also acknowledged that developing nations are more vulnerable and have less adaptive capacity to confront such changes (Swart et al. 2003). Countries with limited resources, poor infrastructure and unstable institutions have generally little capacity to adapt and are highly vulnerable (Smit and Pilifosova 2001).