A Methodology to Assess Indicative Costs of Risk Financing Strategies for Scaling Up Ethiopia's Productive Safety Net Programme

36 Pages Posted: 19 Jul 2016

See all articles by Daniel Clarke

Daniel Clarke

Disaster Risk Financing and Insurance Program, World Bank,

Sarah Coll-Black

World Bank Group

Naomi Victoria Cooney

World Bank Group

Anna Edwards

Government of the United Kingdom - Government Actuary's Department (GAD)

Date Written: June 21, 2016

Abstract

This paper proposes and illustrates a methodology to assess the economic cost of the sovereign risk finance instruments available to the Government of Ethiopia and its development partners for financing the shock-responsive scalability component of the Productive Safety Net Programme. The methodology involves: (i) specifying rules for when additional expenditures would be triggered in each woreda; (ii) specifying alternative risk finance strategies; and (iii) analyzing the costs of each risk financing strategy, including sensitivity and scenario testing of the results. The methodology is applied to a hypothetical set of rules for drought-responsive scalability, and a range of potential risk finance strategies.

Keywords: Urban Communities, National Urban Development Policies & Strategies, Social Risk Management, Disaster Management, Inequality, Urban Economic Development, Hazard Risk Management, Regional Urban Development, Urban Economics, Adaptation to Climate Change, City to City Alliances

Suggested Citation

Clarke, Daniel and Coll-Black, Sarah and Cooney, Naomi Victoria and Edwards, Anna, A Methodology to Assess Indicative Costs of Risk Financing Strategies for Scaling Up Ethiopia's Productive Safety Net Programme (June 21, 2016). World Bank Policy Research Working Paper No. 7719. Available at SSRN: https://ssrn.com/abstract=2811368

Daniel Clarke (Contact Author)

Disaster Risk Financing and Insurance Program, World Bank, ( email )

Washington, DC 20433
United States

Sarah Coll-Black

World Bank Group

10 Marina Boulevard
Marina Bay Financial Center, Tower 2, #34-02
Singapore, DC 018983
Singapore

Naomi Victoria Cooney

World Bank Group

10 Marina Boulevard
Marina Bay Financial Center, Tower 2, #34-02
Singapore, DC 018983
Singapore

Anna Edwards

Government of the United Kingdom - Government Actuary's Department (GAD)

London EC4A 1AB
United Kingdom

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