Pandemic Bonds: Beware perverse incentives and instruments?

individual - self

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INTERPERSONAL : SCIENCES

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SOCIOLOGY : POLITICAL

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Geography Number of Countries Number of fatalities Instruments: Legal, Science, Social, Policy, Financial ... ?

"On Wednesday [24 July], the World bank said it  would give $300m in grants and loans to DRC to step up its aid response. But funding connected to the World Bank's pandemic bonds, issued in 2017 have been less forthcoming. One relatively small slice - the so-called "cash" element - has delivered $31.4m to help with the crisis." Ebola's latest resurgence in central Africa has led to more than 1,700 fatalities. But for the insurance element of the bonds to pay out, the disease must cross an international border and there must be at least 20 fatalities in the second country. The total possible insurance payout for Ebola is $150m and comes in three tranches: when 250, 750 and 2,500 people have died across at least two countries, $45m, $45m and $60m, respectively, will be disbursed."

Pandemic Bonds World Bank: Pandemic Emergency Financing Facility DRC - Rwanda border

My source: Asgari, N. (2019) World Bank pandemic bonds spark Ebola anger, FT Weekend, 27-28 July, p.17.

Photograph - adapted from original by The Independent.