Managing Risk for Development : International Risk Sharing

This study reports that numerous direct and indirect international risk-sharing mechanisms exist, including (1) self-insurance at the state level, (2) market-based tools, (3) international labor mobility, (4) implicit hedges provided by macroeconomic flexibility, and (5) transfers and access to cred...

Full description

Bibliographic Details
Main Authors:	Aizenman, Joshua, Ötker-Robe, İnci
Format:	Working Paper
Language:	en_US
Published:	World Bank, Washington, DC 2013
Subjects:	hedging remittances counter-cyclical emigration current account adjustments risk aversion sovereign wealth funds
Online Access:	http://hdl.handle.net/10986/16331

id	okr-10986-16331
recordtype	oai_dc
spelling	okr-10986-163312021-04-23T14:03:28Z Managing Risk for Development : International Risk Sharing Aizenman, Joshua Ötker-Robe, İnci hedging remittances counter-cyclical emigration current account adjustments risk aversion sovereign wealth funds This study reports that numerous direct and indirect international risk-sharing mechanisms exist, including (1) self-insurance at the state level, (2) market-based tools, (3) international labor mobility, (4) implicit hedges provided by macroeconomic flexibility, and (5) transfers and access to credit from international financial institutions (IFIs) and bilateral swap arrangements. While the various risk sharing tools help in dealing with exposure to tail risks and transitory shocks, a need exists for adjustment to permanent shocks. The World Bank and other international agencies have been engaged in dialogues concerning international community engagement, and in tangible resource transfers and managerial support of funds and projects aiming at ex-ante risk mitigation, and ex-post stabilization following economic or natural disasters. However, a too risk-averse attitude of the donor community may jeopardise the attempt to stabilize economies in transition, including those with fragile and conflict situations, and the proper heterogeneity of design of incentives and missions can help. 2013-12-02T19:21:58Z 2013-12-02T19:21:58Z 2013-06-26 http://hdl.handle.net/10986/16331 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	hedging remittances counter-cyclical emigration current account adjustments risk aversion sovereign wealth funds
spellingShingle	hedging remittances counter-cyclical emigration current account adjustments risk aversion sovereign wealth funds Aizenman, Joshua Ötker-Robe, İnci Managing Risk for Development : International Risk Sharing
description	This study reports that numerous direct and indirect international risk-sharing mechanisms exist, including (1) self-insurance at the state level, (2) market-based tools, (3) international labor mobility, (4) implicit hedges provided by macroeconomic flexibility, and (5) transfers and access to credit from international financial institutions (IFIs) and bilateral swap arrangements. While the various risk sharing tools help in dealing with exposure to tail risks and transitory shocks, a need exists for adjustment to permanent shocks. The World Bank and other international agencies have been engaged in dialogues concerning international community engagement, and in tangible resource transfers and managerial support of funds and projects aiming at ex-ante risk mitigation, and ex-post stabilization following economic or natural disasters. However, a too risk-averse attitude of the donor community may jeopardise the attempt to stabilize economies in transition, including those with fragile and conflict situations, and the proper heterogeneity of design of incentives and missions can help.
format	Publications & Research :: Working Paper
author	Aizenman, Joshua Ötker-Robe, İnci
author_facet	Aizenman, Joshua Ötker-Robe, İnci
author_sort	Aizenman, Joshua
title	Managing Risk for Development : International Risk Sharing
title_short	Managing Risk for Development : International Risk Sharing
title_full	Managing Risk for Development : International Risk Sharing
title_fullStr	Managing Risk for Development : International Risk Sharing
title_full_unstemmed	Managing Risk for Development : International Risk Sharing
title_sort	managing risk for development : international risk sharing
publisher	World Bank, Washington, DC
publishDate	2013
url	http://hdl.handle.net/10986/16331
_version_	1764432862004641792

Managing Risk for Development : International Risk Sharing

Similar Items