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).

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other key terms

Crisis

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

Development bank

A public financial institution providing loans, grants and expertise to support development goals.

Contingent liabilities

Possible financial obligations that only become real if specific future events occur.

Other official flows (OOF)

Public funding supporting development that does not meet official aid definitions.

Disaster risk financing

Financial arrangements made in advance to pay for disaster prevention, response and recovery.

Crisis risk

The likelihood of harm or loss from crises shaped by hazards, exposure, vulnerability and capacity.