FERDI selected by the IDB to develop a Dynamic Vulnerability Index for Latin America and the Caribbean

This initiative, entitled “Building a Dynamic Vulnerability Measure for IDB Borrowing Member Countries in Latin America and the Caribbean”, is part of the IDB’s 2024–2030 institutional strategy, “Transforming for Scale and Impact”. The strategy aims to enhance the effectiveness of concessional financing by fully  integrating multidimensional vulnerability into resource allocation mechanisms.

A Region Facing Instability and Heightened Risks 

Latin America and the Caribbean face a complex combination of challenges: economic instability, persistent social inequalities, and increasing exposure to environmental hazards. To respond more effectively, the IDB is seeking to revise its eligibility criteria in order to better target countries most vulnerable to external shocks, especially those linked to climate change.

The proposed model moves beyond traditional reliance on per capita income, placing structural vulnerability—across economic, environmental, and social dimensions—at the heart of resource allocation decisions.


FERDI’s Mandate

FERDI is tasked with developing a rigorous, transparent, and reproducible methodology that will enable the IDB to assess and characterize the structural vulnerability of borrowing countries—those characteristics that amplify the impact of exogenous shocks. The scope of work includes:

• a critical review of existing literature,
• development of a robust conceptual framework,
• selection of relevant and accessible variables,
• construction of a dynamic index that can be disaggregated by sources of vulnerability and by country,
• and training of IDB teams to use, reproduce, and update the index.

The project will be conducted over a tight four-month timeline, reflecting the strategic importance the IDB places on this initiative.


Recognition of FERDI’s Expertise

FERDI’s selection by the IDB confirms its international recognition as a leader in the field of vulnerability conceptualization and measurement. Since its inception, FERDI has played a pivotal role in advancing understanding and methodologies for assessing vulnerability in developing countries.

This work aims to provide the international community with robust tools to better identify the most vulnerable countries, thereby guiding eligibility criteria and resource allocation for development financing and climate change adaptation.

This initiative builds upon the seminal work of Professor Patrick Guillaumont, a pioneer in the study of structural vulnerability and aid allocation, and on the technical and methodological contributions of Sosso Feindouno and Laurent Wagner. Their work has informed the development of widely recognized multidimensional indices, including the UN’s Multidimensional Vulnerability Index and the Commonwealth’s Universal Vulnerability Index.

A Contribution Toward More Equitable Global Action

Through its partnership with the IDB, FERDI continues to promote vulnerability as a central and actionable criterion in international efforts for sustainable development, climate resilience, and concessional financing. This collaboration strengthens the bridge between scientific research and policy-making, ultimately serving the countries most exposed to external shocks.