This pilot achieved its overall objective of demonstrating the feasibility of establishing contingency funding by transferring LDC weather risks to international risk markets. Such contractually guaranteed contingency funding contributes to a risk-management system that provides prompt assistance in times of drought before people resort to distress sales of assets, thereby protecting livelihoods, preventing more people from falling into destitution and enhancing resilience to future shocks. The project demonstrated its possible to index drought risk, and that a drought-risk index for Ethiopia can be objective enough to be transferred. It also facilitated price discovery for Ethiopian drought risk in international markets. This pilot contributes to a comprehensive risk-management solution for Ethiopia. The developed index complements the current early-warning system. By monitoring such an index in real time, as in 2006, the Government and its partners can anticipate drought-related losses over an agricultural season and assess their financial and operational preparedness.