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WFP Initiatives

WFP Initiatives. Expert Meeting – Requirements of Weather Markets WMO December 5, 2007 Ulrich Hess, Chief of Business Risk Planning. AGENDA. WFP & WFP Strategy Initiatives WFP/IFAD partnership China Global Weather Risk Market Making Ethiopia Phase II. WFP. RESPONSE

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WFP Initiatives

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  1. WFP Initiatives Expert Meeting – Requirements of Weather Markets WMO December 5, 2007 Ulrich Hess, Chief of Business Risk Planning

  2. AGENDA • WFP & WFP Strategy • Initiatives • WFP/IFAD partnership • China • Global Weather Risk Market Making • Ethiopia Phase II

  3. WFP RESPONSE IN EMERGENCIES CORE TARGETED PROGRAMMES FOLLOW ON EFFORTS PRECURSOR EFFORTS HANDING OVER TO PARTNERS INVESTING IN PREVENTION operations in 78 countries Budget of USD 2.9 billion 88 million people assisted 4 million tonnes of food PARTNERSHIPS HAVING THE BEST ANALYTICAL AND OPERATIONAL TOOLBOX AVAILABLE TRANSFERRING SKILLS AND KNOWLEDGE TO COUNTRIES

  4. Contingency Grant/Fund/WFP CEMOP Flash Appeal Productive Safety Net Insurance 7.3 Mil Safety Net Beneficiaries 6.7 Mil Livelihood Protection Target Beneficiaries Drought severity – Early Livelihood Protection costs (Mil Euro) ETHIOPIA PHASE II Occurrence (no. of years)

  5. WFP/IFAD GLOBAL WEATHER RISK MARKET MAKING • Core team of Experts & Market Makers • Create Global and national public goods that enable weather risk markets • Weather Data (real time+historical) & Weather Data Infrastructure • R&D • Technical Assistance for demonstration projects • Crowd in Weather Risk Takers

  6. Support Levels

  7. Vision: From small contracts…

  8. ….for small farmers…

  9. Contingency Grant/Fund/WFP CEMOP Flash Appeal Productive Safety Net Insurance 8.3 Mil Safety Net Beneficiaries 7 Mil Livelihood Protection Target Beneficiaries Drought severity – Early Livelihood Protection costs ($US Mil) …to large safety net contracts… Occurrence (no. of years)

  10. …protecting vulnerable households!

  11. HENCE: LARGER SHARE OF NON-OECDCONTRACTS…. Distribution of total number of contracts by region 2000-2007 2008-2011

  12. …AND SIZABLE NON-OECD MARKETS! 2008-2011

  13. GoC/IFAD/WFP Weather Index Insurance Feasibility Study Flood Index based Protection Drought Index Insurance Demonstration and replication effects China

  14. CONCLUSION: Weather Index based risk transfer is important.... • Destitution • Dignity • Risk financing Cost • Climate Change

  15. THANKS! • Ethiopia LEAP Tool download: http://vam.wfp.org/LEAP Free software download. Please do not distribute without consent of WFP and World Bank • For questions: ulrich.hess@wfp.org,

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