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Eyes on the storm

The World Bank is busily marketing derivatives to governments to hedge them against major risks to their economies such as catastrophic weather. Is this a viable option for emerging market economies? By Alexander Campbell

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For most of the world's population, risk is not merely a financial concept. Catastrophic events, such as hurricanes, earthquakes or drought, can not only bring monetary damage, but hunger, disease and death - and can even shake the foundations of national governments. Global climate change is expected to increase the frequency of extreme weather events, which will inevitably hit the poor countries

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