Protecting pastoralists against mortality losses due to severe forage scarcity

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Presented by Andrew Mude at the Workshop on The Future of Pastoralism in Africa: International Conference to Debate Research Findings and Policy Options, Addis Ababa, 21-23 March 2011.

Text of Protecting pastoralists against mortality losses due to severe forage scarcity

  • 1. Index Based Livestock Insurance
    Protecting pastoralists against mortality losses due to severe forage scarcity
    Andrew Mude
    The Future of Pastoralism in Africa
    Addis Ababa, March 21-23, 2011

2. Setting the Context
Pastoralist Risk Management CRSP (PARIMA): Among its many lessons we learn that.
..Pastoralists are very vulnerable to widespread forage scarcity
. livestock mortality due to forage scarcity is by far the biggest risk.
Causes of Livestock Mortality
Borena Zone
Marsabit District
3. Responding to Risk
Basically there are two ways to deal with risk:
Reduce the impact of Risk

  • Mitigation (ex-ante): Transhumance, Diversification, etc.

4. Management(ex-post): Traditional system of support (not very effective for shared risks), productive safety nets, restocking etc.Risk transfer

  • Shifting the burden of that risk to a different entity for a fee.

5. This basic idea behind INSURANCE.