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

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.

Bibliographic Details

Main Authors:	Clarke, Daniel, Coll-Black, Sarah, Cooney, Naomi, Edwards, Anna
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2016-06
Subjects:	LIVING STANDARDS, CONTINGENT LIABILITIES, DEFICIT, HOUSEHOLD SURVEY, UNCERTAINTIES, POVERTY LINE, LIABILITY, PEOPLE, OIL RESERVE, FINANCIAL MANAGEMENT, FINANCING, INTEREST, RATE OF RETURN, POVERTY ESTIMATES, CROP FAILURE, INVESTMENT RATE, INSURANCE PROGRAM, INTEREST RATE, EXCHANGE, DISCOUNT RATE, FINANCIAL RESOURCES, COST-EFFECTIVENESS, POLITICAL ECONOMY, EXCLUSION, FINANCIAL COST, BONDS, DISCOUNT, ALTERNATIVE RISK FINANCING, FEE, CLAIM PAYMENTS, PAYMENTS, SAVING, RESERVE, FINANCIER, BENEFICIARIES, INTERNATIONAL BANK, CASH FLOWS, INSTRUMENTS, INSURANCE MARKET, SAFETY NETS, INSURANCE COMPANY, POVERTY REDUCTION, BUDGET, COST EFFECTIVENESS, DEPENDENT, SAVINGS, BENEFICIARY, FINANCES, EMERGENCY BUDGET, OPTIONS, FINANCIAL COSTS, MARKET INSTRUMENT, BORROWING RATE, TRANSFERS, PAYMENT, MARKETS, DEBT, CAPITAL MARKET, RETURN, ESTIMATES OF POVERTY, INTERNATIONAL DEVELOPMENT, CHRONIC POVERTY, RESERVES, SENSITIVITY ANALYSES, FOOD AID, INSURANCE POLICY, FINANCE, FUTURE CASH FLOWS, BANK POLICY, CONTINGENT LIABILITY, FOOD ITEMS, EXPENDITURE, DEBT FINANCING, SAFETY NET TRANSFERS, POVERTY DATA, OPPORTUNITY COST, FOOD SECURITY, GOOD, CAPITAL, DROUGHT, PAYMENT OBLIGATION, SOVEREIGN RISK, MARKET CONDITIONS, BASIC NEEDS, LAST RESORT, FUTURE, VALUE, CLAIM PAYMENT, BANK, CHRONICALLY POOR, RETURNS, DISASTER RISK FINANCING, BUDGETS, CLIMATE, SAFETY NET, FINANCIAL INSTRUMENTS, FINANCIAL INSTRUMENT, CONTRACT, HOUSEHOLD, EXPENDITURES, COST BENEFIT ANALYSIS, RURAL, INSURANCE PREMIUM, FINANCIAL ANALYSIS, MARKET, PUBLIC WORKS, PREMIUM PAYMENT, POLICY, IDIOSYNCRATIC SHOCKS, INSURANCE, FOOD INSECURITY, ECONOMIC DEVELOPMENT, CHRONIC FOOD INSECURITY, GOVERNMENT BONDS, SECURITY, INVESTMENT, BOND, DELIVERY INSTRUMENTS, HOUSEHOLDS, RURAL AREAS, POVERTY, ALLOCATION, FINANCIAL LIABILITY, BORROWING, INVESTMENTS, POOR, INSTRUMENT, FAMILIES, CROP LOSS, LIABILITIES, FOOD INSECURE HOUSEHOLDS, GUARANTEE, SWAP, BENEFITS, CLAIM, CATASTROPHE BOND,
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26510511/methodology-assess-indicative-costs-risk-financing-strategies-scaling-up-ethiopias-productive-safety-net-programme https://hdl.handle.net/10986/24636
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