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A methodology to assess indicative costs of risk financing strategies for scaling up Ethiopia's productive safety net programme

Author

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  • Clarke,Daniel Jonathan
  • Coll-Black,Sarah
  • Cooney,Naomi Victoria
  • Edwards,Anna

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.

Suggested Citation

  • Clarke,Daniel Jonathan & Coll-Black,Sarah & Cooney,Naomi Victoria & Edwards,Anna, 2016. "A methodology to assess indicative costs of risk financing strategies for scaling up Ethiopia's productive safety net programme," Policy Research Working Paper Series 7719, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7719
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    File URL: http://documents.worldbank.org/curated/en/110781467989562134/pdf/WPS7719.pdf
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    Citations

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    Cited by:

    1. Daniel J. Clarke & Olivier Mahul & Richard Poulter & Tse-Ling Teh, 2017. "Evaluating Sovereign Disaster Risk Finance Strategies: A Framework," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 42(4), pages 565-584, October.
    2. Mareile Drechsler & Sara Coll-Black & Clemence Tatin-Jaleran & Daniel Clarke, 2017. "Quantifying Costs of Drought Risk in Ethiopia," World Bank Publications - Reports 34192, The World Bank Group.

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