APR Workshop 2010-Dealing with Risk and Vulnerability-Ganesh Thapa

Annual Performance Review and South-South Cooperation Event Ganesh Thapa Session on Dealing with Risks and Vulnerability, 2 November 2010, Nanning, China

Poverty, risks and vulnerability
Poverty – a static concept; vulnerability is dynamic
Risk refers to uncertain events that may damage well-being
Vulnerability is the likelihood that a shock will cause a decline in well-being
Proportion of vulnerable > proportion of poor
Yunnan, China : proportion of vulnerable 2.3 times larger than poor
Indonesia : 23% of population poor; 45% vulnerable to poverty

Typology of risks Insurgency Riots Political Finan. crisis, inflation Crop loss Loss of income Economic Civil strife, war Terrorism Crime, violence Social Disease epidemic Illness, death Health Earthquake, flood Landslide, rainfall Natural/Env. Nations/ regions Communities/villages Individuals/ Households Type

Risk management strategies Food subsidy Borrowing from banks Transfers from relatives Borrowing, eating less Coping with risk Social security Accident, disability insurance Social networks, gifts Share cropper tenancy Risk mitigating - insurance Agric. research Micro finance Producer groups Crop, income diversification Risk mitigating -diversification Macro-economic policy Watershed structure Savings, migration Risk reducing Formal : public Formal : market Informal : group Informal : individual Response

IFAD support for risk management
Risk reducing
Watershed development
Common pool resource development
Promotion of savings
Risk mitigating (diversification)
Crop/income diversification
Producer group formation
Micro finance
Agricultural research support (e.g. IRRI: CURE)
Risk mitigating (insurance)
Weather-based insurance
Social capital formation
Response to disasters
Reprogramming of ongoing projects (Pakistan)
New loans (e.g. Tsunami response projects in Sri Lanka, Maldives, India)

APR Workshop 2010-Dealing with Risk and Vulnerability-Ganesh Thapa

by IFAD International Fund for Agricultural Development

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APR Workshop 2010-Dealing with Risk and Vulnerability-Ganesh Thapa Presentation Transcript