Glossary

Contingent loan (or credit) and grants

A type of pre-arranged financing whereby a loan or grant is approved in advance of a crisis and is guaranteed to be provided to a specific implementer when a specific pre-identified trigger condition is met (Centre for Disaster Protection).

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The clearest picture yet of what countries actually want from pre-arranged finance and what institutional frictions slow delivery.

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Pre-arranged financing is expanding fast, but the voices of the countries it is meant to protect are too rarely heard. This report gives the clearest picture yet of what countries actually want.

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The first cross-country evidence on what governments actually want from pre-arranged financing, drawing on evidence from nearly 250 government officials and national stakeholders.

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This working paper presents a framework that compares contingent loans, grants from multilateral development banks, catastrophe bonds, and insurance provided through regional risk pools.

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This working paper asks what is required for social protection systems to deliver timely, predictable, well-targeted and cost-effective shock response to disasters.

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This insight paper provides an overview of the key features of debt pause clauses, also known as climate resilient debt clauses.

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This brief forms part of a cross-country study on the opportunity cost of reallocating budgets in response to disasters.

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other key terms

Development insurer

An insurer supporting development goals through insurance products and technical assistance.

Crisis

A situation where severe needs overwhelm local and national capacity to respond effectively.

Social protection

Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.

Covariate shocks

Shocks affecting many households at once where losses are shared across the same community.

Sustainable development

Meeting today’s needs without limiting future generations’ ability to meet theirs.

Trigger

A predefined threshold that activates payments or actions within risk financing mechanisms.