Why in news
The UN General Assembly officially launched a new data-driven "vulnerability" index that would help small island states and developing nations gain access to low-interest financing.
Multidimensional Vulnerability Index (MVI)
To assess vulnerabilities of small island states and developing nations beyond GDP metrics.
Helps these nations access low-interest financing by highlighting their specific vulnerabilities.
Components
Structural Vulnerabilities: Includes factors like import dependency and exposure to extreme weather events.
Economic Resilience: Measures economic stability and capacity to handle external shocks
Environmental Resilience: Assesses risks related to climate change, natural disasters, and resource availability.
Social Resilience: Considers impacts of regional violence, demographic pressure, and child mortality rates.
Indicators
Factors include import dependency, extreme weather exposure, pandemic impacts, regional violence, water and land resources, and child mortality
Implementation
Developed as a complement to GDP and other development metrics.
Voluntary for use, but encouraged for UN organs and multilateral development banks to incorporate into their policies
Goals
Enhance credibility and comparability in assessing vulnerability.
Support development financing and policies tailored to specific vulnerabilities of countries.
COMMENTS