Glossary

Trigger

A trigger is a predefined threshold of an index underlying a risk finance mechanism which, if exceeded, prompts a payout. A trigger may also leave an element of discretion to a designated party about whether or not to launch a response activity (Centre for Disaster Protection).

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A practical note on Debt Pause Clauses, the first of a series of documents designed to help governments and practitioners understand and compare financial instruments.

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This policy brief examines the first real-world use of debt pause clauses - contractual mechanisms that allow sovereign borrowers to temporarily defer debt payments in the wake of a disaster.

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This report offers lessons on the process of developing the trigger for the Malawi AA Framework and captures lessons on how AA pilots are being designed and implemented in real time.

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Alongside the Airbel Research and Innovation Lab we provide key lessons for how effective crisis response can be financed and triggered

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Practical guidance on contingency planning a before a disaster strikes to support a faster, more coordinated, and ultimately, more effective response.

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This publication explains the importance of thinking strategically and sets out four principles for taking a strategic approach, with practical advice and resources.

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This paper summarises the different shocks created by the global Covid-19 crisis.

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This paper proposes an innovative approach to financing contingent liabilities using IDA.

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other key terms

Fragility

High exposure to risk combined with weak capacity to cope, often leading to crisis.

Resilience

The ability to withstand shocks, adapt, recover and continue functioning over time.

Cost multiple

The cost multiple measures the average amount a government pays to receive USD 1 of payout from a financing instrument over its lifetime.

Pre-arranged financing

Financing approved before crises that is released automatically when agreed triggers are met.

Sustainable development

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

Official development assistance (ODA)

Public aid supporting development and welfare in eligible countries, usually on concessional terms.