Towards an Effective Use of a Multidimensional Vulnerability Index in Development Finance
April 16, 2025
FERDI has long been involved in designing vulnerability indices likely to be used effectively. Since the early 2000s, when it helped introduce an index as a criterion for identifying LDCs, FERDI has published numerous works on the subject. This led to FERDI’s participation in developing the Commonwealth Universal Vulnerability Index and then writing the report Possible Development and Uses of Multidimensional Vulnerability Indices with OHRLLS.
When a high-level panel was tasked with producing such an index, two FERDI experts, Laurent Wagner and Sosso Feindounou, collaborated with UN-OHRLLS and UNDESA to draft the panel's report, presented in October 2023 and finalized in early 2024. Concurrently, FERDI supported this work with a series of notes (Guillaumont, 2023). The debate on how the index would be endorsed by the United Nations General Assembly is ongoing. FERDI insists that the UN should recommend using an index that adheres to the panel's principles, without necessarily endorsing the precise composition of the proposed MVI. The principles to be respected concern multidimensionality (economic, climate and societal), universality (applicable to all developing countries) and exogeneity (independent of countries' current policies). The goal is for financial institutions to use an index that respects these principles when allocating concessional funds, adapting it if necessary.
To leverage its experience and provide clear, rigorous information on vulnerability, FERDI is developing a revised MVI to be incorporated into an observatory on vulnerability and resilience, published annually.
To read: Guillaumont P. (2023) Towards a Multidimensional Vulnerability Index Six supporting notes, FERDI, 38 p.
↪ Adoption by the United Nations of the Multidimensional Vulnerability Index (MVI). FERDI has contributed to the definition and development of this indicator by many works over the years, including the most recent policy brief The Multidimensional Vulnerability Index under the lights: for what purpose? (Guillaumont P., 2024) and the contribution to the book Keeping Sight on the Goals - HLPF Edition, SDG Action : Assessing vulnerability to prevent crises (Guillaumont P., 2024)
↪ 2d United Nations LDC Future Forum, March 2024. FERDI was a partner in this forum organised by OHRLLS and the Finnish government. The foundation actively participated in discussions, with several of its researchers contributing to various sessions. On March 7, FERDI also organized a parallel event, dedicated to the LDC5 Monitor initiative, in collaboration with UNU-WIDER and the OECD Development Centre.
↪ Publication of the books Quel pacte financier mondial pour les pays pauvres et vulnérables [What Global Financial Pact for Poor and Vulnerable Countries?] (Boussichas M., Guillaumont P. (dir.), 2024) and Towards a Multidimensional Vulnerability Index Six supporting notes (Guillaumont P., 2023).
↪ Following the Interministerial Committee for International Cooperation and Development (CICID) meeting in July 2023, FERDI assisted the government in developing a method to identify particularly vulnerable priority countries, in addition to the initially selected 45 LDCs. The method proposed by FERDI allows the government to transparently articulate the political decisions for which it is responsible.
