UN Launches New "Vulnerability" Index to Aid Small Island States

On 20th August, 2024, the UN General Assembly officially introduced the "Multidimensional Vulnerability Index" (MVI), a new data-driven tool designed to help small island developing states (SIDS) and other vulnerable nations secure low-interest financing. This index is intended to complement traditional metrics like GDP.

Key Points:

Purpose of the MVI: Small island states, despite not being poor enough in GDP terms, often face significant external shocks such as climate change. Since the 1990s, these nations have been advocating for a measure that accounts for their unique vulnerabilities, enabling them to access more favorable financing.
Development and Adoption: The index is based on the findings of a UN high-level panel and incorporates various indicators linked to a state's structural vulnerabilities and lack of resilience.
Key Indicators: The MVI considers factors such as import dependency, exposure to extreme weather events, pandemics, regional violence, demographic pressure, and the availability of water and arable land. It also accounts for child mortality rates under five years old.
Global Impact: While initially proposed by small island states, the MVI is designed to capture vulnerabilities of all developing countries, ensuring credibility and comparability across the board.