About Resilience in the Multidimensional Vulnerability Index (MVI)
October 27, 2022
FERDI is contributing to international decisions with its work on:
Identifying, measuring, and differentiating financing flows for development. In a context of great country heterogeneity, FERDI accurately identifies what is the best financing flow in each situation. FERDI helps to determine how to finance development in the most fragile environments, where vulnerabilities are strongest, and where traditional market mechanisms struggle to function effectively.
Assessing the effectiveness of external financing for development. FERDI examines the effectiveness of financing flows on development, in particular international aid. This effectiveness is examined in its different aspects such as its impact on growth, income inequality and poverty, climate and the environment. FERDI also examines the effects of aid for trade, the effects of vertical funds, and aid to "Fragile states" and Least Developed countries (LDCs).
Allocating flows according to vulnerabilities. FERDI has long advocated for the use of a vulnerability index in the allocation criteria of multilateral donors, and hopes to contribute to the renewal of the debate with its work on multidimensional vulnerability. It is developing indices covering structural economic vulnerability, physical vulnerability to climate change, and vulnerability to internal violence.
The international financing architecture. FERDI, which has always advocated the inclusion of vulnerability in the international agenda, has undertaken to review the international financing architecture with a high-level group of experts and the creation of a chair in this field that will be responsible for identifying the main reforms that should be made.
Active participation in the international debate on the modalities and implications of the reallocation of IMF Special Drawing Rights (SDRs). FERDI has published several papers on the challenges of reallocation, on the evolution of the IMF's financial instruments, and on how to take vulnerabilities into account in the reallocation of SDRs. It has organised four conferences on the subject with its partners.
Facilitating debates on international development financing, particularly on the contribution of the private sector to African development. FERDI organised a conference in May 2021 as part of the Summit on the Financing of African Economies and its expertise is sought by the French National Assembly.
Contribution to the impact assessment of development policies, programs, and projects in the G5 Sahel countries. FERDI’s Sahel Chair studies and refines the implementation of methods for the rapid evaluation of development programs and policies adapted to so-called fragile areas, i.e. where there are difficulties in monitoring and collecting data.
Recent initiatives such as the Commonwealth Secretariat's Universal Vulnerability Index and the United Nations' Multidimensional Vulnerability Index build on FERDI's work on vulnerability indicators.
Study of the countercyclical role of development banks. This is part of a more global study on the modalities of intervention of development banks and their role in the achievement of the MDGs undertaken by the French Development Agency (AFD) and the Development Finance Institutions.
