Download Insurance against Poverty (UNU-WIDER Studies in Development by Stefan Dercon PDF

By Stefan Dercon

Terrible humans in constructing international locations are frequently laid low with droughts, floods, ailment, crop failure, activity loss, and financial downturns. casual assurance mechanisms supply a few safety, yet are vulnerable within the face of significant or ordinary calamities. most folks can't receive formal coverage, and the inability of assurance and social safeguard hence constrains funding, development, and poverty aid. Public motion to treatment this deficiency is merited, yet what shape should still it take? This publication evaluates possible choices in widening coverage and social safety provision, together with sustainability and poverty results, in thorough, updated thematic papers and case reports, improvement tests, and coverage analyses.

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Extra info for Insurance against Poverty (UNU-WIDER Studies in Development Economics)

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These measures can be referred to as ‘expected poverty’ measures. Measures of this nature have been proposed in Christiaensen and Boisvert (2000), Chaudhuri et al. (2001), Pritchett et al. (2000). More generally, one could construct measures of vulnerability for different dimensions of poverty (such as health or nutrition) or measures that take into account the extent to which households are likely to fall below the poverty line (Kamanou and Morduch, Chapter 8). An alternative way of expressing vulnerability is closely linked to standard expected utility approaches (Ligon and Schechter 2003).

These different ways of structuring responses effectively yield similar insights. 3 The social science literature on household strategies dealing with shocks often uses a different terminology. Davies (1996) uses the term ‘coping strategies’ to describe strategies employed during crises. In her terminology, ‘coping’ refers to success in dealing with the crisis. ‘Adaption’ is a characteristic of a ‘vulnerable’ household, using ‘coping’ strategies as part of standard behaviour. Adaptive strategies are then defined as a permanent change in the mix of ways in which households make a living, irrespective of the year in question.

In the best period of the year (the postharvest period), the incidence of poverty was about 33 per cent; in the worst period, it was about 40 per cent. During the worst period of the year, up to 60 per cent of the population could be poor. This estimate is substantially larger than poverty estimates from the (relatively good) 1990s would suggest. Work on poverty dynamics, including work on transient poverty, has highlighted the limitations of current static poverty measures (see Baulch and Hoddinott 2000 for a review).

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