Glossary
Covariate shocks
Covariate shocks are those which affect many people in the same community at once; the experience of one household is highly covariate with that of other households in the community (Jalan and Ravallion 1999).
other key terms
Disaster
A severe event causing widespread harm that exceeds a community’s ability to cope alone.
Index
A measurable indicator used to estimate losses and trigger financial payouts.
Official development assistance (ODA)
Public aid supporting development and welfare in eligible countries, usually on concessional terms.
Crisis financing
Funding designed to prevent, prepare for and respond to crises before and after they occur.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Hazard
A natural or human process that can cause injury, damage or disruption.
