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Table 2 Refugee humanitarian financing instruments listed according to risk and time

From: Innovative health financing for refugees

 

Dependent upon planning

Not dependent upon planning

Risk retention

(refugee host countries are responsible for risk)

Domestic contingency funds or budget allocations: money for emergency relief set aside prior to event

Taxes and subsidies to alter incentives for providing funding

Line of contingent credit: a loan disbursed under certain circumstances

Budget reallocation

Tax increases

Post-emergency credit

User fees

Taxes and subsidies to alter incentives for providing funding

Tariffs or subsidies to alter prices of goods during emergencies

Risk transfer

(refugee host countries transfer risk to another entity)

Traditional insurance or reinsurance: contract where insured pays insurer a premium, and insurer agrees to pay for pre-specified and post-verified losses

Indexed insurance: insurance contract where insurer makes payments based on certain external, measurable parameters or index

Capital market instruments: financial instruments that can be bought or sold on capital markets, and investors shoulder risk (e.g., catastrophe bonds and swaps, Pandemic Emergency Financing Facility)

Contingency pooled UN funds (e.g., Central Emergency Relief Fund and Country-Based Pooled Funds)

Discretionary post-emergency aid: includes in-kind and cash transfers

Discretionary post-emergency aid is the most common instrument for aid delivery in humanitarian emergencies and is provided primarily by HICs