This paper discusses a methodology to model precipitation indices and premium prices for index-based drought insurance for smallholders. Spatial basis risk, which is borne by the insured, is a problem, especially in variable topography. Also, site-specific drought risk needs to be estimated accurately in order to offer effective insurance cover and ensure financial sustainability of the insurance scheme. We explore farmers' perceptions on drought and spatial climate variability and draw conclusions concerning basis risk with regards to the proposed methodology. There are technically many options to represent natural heterogeneity in index insurance contracts while serving the customer adequately and keeping transaction costs low.
This methodological guide was initially developed and used in Latin America and the Caribbean-LAC (Honduras, Nicaragua, Colombia, Peru, Venezuela, Dominican Republic), and was later improved during adaptation and use in eastern African (Uganda, Tanzania, Kenya, Ethiopia) through a South-South exchange...
Social learning in multi-actor innovation networks is increasingly considered an important precondition for addressing sustainability in regional development contexts. Social learning is seen as a means for enabling stakeholders to take advantage of the diversity in perspectives, interests and values...
The increasing complexity of technology development and adoption is rapidly changing the effectiveness of scientific and technological policies. Complex technologies are developed and disseminated by networks of agents. The impact of these networks depends on the assets they command, their...
Grant funds specifically targeted to smallholder farmers to facilitate innovation are a promising agricultural policy instrument. They stimulate smallholders to experiment with improved practices, and to engage with research, extension and business development services providers. However, evidence on impact and...