Insurance in developing nations is far less broadly available than developed ones. In addition, the risks that citizens of developing nations face, are often much more numerous and severe. Crop-insurance is a common element of agricultural policy in the United States, but less common in Ethiopia. As Ethiopia has a much higher percentage of their population engaged in agriculture, shocks, such as drought, crop disease, or severe weather have big impacts.
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The promise (and pitfalls) of index based…
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Insurance in developing nations is far less broadly available than developed ones. In addition, the risks that citizens of developing nations face, are often much more numerous and severe. Crop-insurance is a common element of agricultural policy in the United States, but less common in Ethiopia. As Ethiopia has a much higher percentage of their population engaged in agriculture, shocks, such as drought, crop disease, or severe weather have big impacts.