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
Date Written: June 21, 2016
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
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