Suarez Co-Authors Paper on Drought Insurance

Pardee Research Fellow Pablo Suarez is co-author of a paper that was published in the May 2009 issue of the Natural Harzards Observer, a publication of the Natural Hazards Center at the University of Colorado at Boulder.

Titled "Drought Insurance for Subsistence Farmers in Malawi," the paper describes a pilot project conducted in 2005 that allowed nearly 900 subsistence farmers in the drought-prone southern African country to buy insurance against the risk of drought and its potential to damage their valuable groundnut crop. Having such insurance enabled the farmers to access credit, allowing them to buy hybrid seeds that potentially could double their crop yield. The paper describes the development, implementation, and outcomes of the pilot project and discusses the potential role of risk financing mechanisms in the context of upcoming climate negotiations.

The project was overseen by Dr. Suarez as part of his work on institutions for climate change adaptation for the World Bank Development Economics Research Group. The paper’s co-authors include his colleagues from Oxfam America and the International Institute for Applied Systems Analysis (IIASA).

Dr. Suarez is associate director of programs for the Red Cross/Red Crescent Climate Centre, and an advisor for Oxfam America’s Private Sector Team.