Evaluating Sovereign Disaster Risk Finance Strategies [electronic resource] : A Framework / Daniel Clarke.
Material type: TextPublication details: Washington, D.C. : The World Bank, 2016Description: 1 online resource (19 p.)Subject(s): Access to finance | Debt markets | Finance and financial sector development | Financial intermediation | Hazard risk management | Urban developmentAdditional physical formats: Clarke, Daniel.: Evaluating Sovereign Disaster Risk Finance Strategies : A Framework.Online resources: Click here to access online Abstract: This paper proposes a framework for ex ante evaluation of sovereign disaster risk finance instruments available to governments for funding disaster losses. The framework can be used by governments to help choose between different financial instruments, or between different combinations of instruments, to achieve appropriate and financially efficient strategies to fund disaster losses, taking into account the risk of disasters, economic conditions, and political constraints. The paper discusses the framework in the context of a hypothetical country, with parameters selected to represent a disaster-prone small island state. The paper shows how a mix of instruments can be chosen to minimize the economic opportunity cost given the underlying disaster risk faced and prevailing economic and financial conditions.This paper proposes a framework for ex ante evaluation of sovereign disaster risk finance instruments available to governments for funding disaster losses. The framework can be used by governments to help choose between different financial instruments, or between different combinations of instruments, to achieve appropriate and financially efficient strategies to fund disaster losses, taking into account the risk of disasters, economic conditions, and political constraints. The paper discusses the framework in the context of a hypothetical country, with parameters selected to represent a disaster-prone small island state. The paper shows how a mix of instruments can be chosen to minimize the economic opportunity cost given the underlying disaster risk faced and prevailing economic and financial conditions.
There are no comments on this title.