The International Finance Corporation, the private sector arm of the World Bank, launched in December a programme to facilitate insurance against natural disasters and weather-related risks in developing countries. The Global Index Insurance Facility will pay out in case of events above a certain level of severity, without the need for verification of individual claims. The IFC claims this will allow insurers to extend cover to rural and frontier regions. However, as BWP’s 2009 briefing argues, such schemes could displace public or communal insurance schemes that are based on need rather than profit. They are “a step further in linking people’s livelihoods and well-being to international financial markets that are inherently volatile.” The European Commission committed €24.5 million as the first donor to a trust fund that will finance advisory services for governments undertaking necessary regulatory reforms.
23 September 2009
Donate to the Bretton Woods Project
The Bretton Woods Project is a UK-based NGO that challenges the World Bank and IMF and promotes alternative approaches. We serve as an information provider, watchdog, networker and advocate. Our flagship publications are the Bretton Woods Observer, a quarterly critical review of developments at the World Bank and IMF, the Dispatch, a biannual analysis of the World Bank and IMF Spring and Annual Meetings, and the NewsLens, a bi-weekly roundup of key news and critical viewpoints published about the World Bank and IMF.
The Bretton Woods Project is an ActionAid hosted project (UK registered charity no. 274467).