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


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

  1. 1.  Annual Performance Review and South-South Cooperation Event Ganesh Thapa Session on Dealing with Risks and Vulnerability, 2 November 2010, Nanning, China
  2. 2. Poverty, risks and vulnerability <ul><li>Poverty – a static concept; vulnerability is dynamic </li></ul><ul><li>Risk refers to uncertain events that may damage well-being </li></ul><ul><li>Vulnerability is the likelihood that a shock will cause a decline in well-being </li></ul><ul><li>Proportion of vulnerable > proportion of poor </li></ul><ul><li>Yunnan, China : proportion of vulnerable 2.3 times larger than poor </li></ul><ul><li>Indonesia : 23% of population poor; 45% vulnerable to poverty </li></ul>
  3. 3. 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
  4. 4. 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
  5. 5. IFAD support for risk management <ul><li>Risk reducing </li></ul><ul><li>Watershed development </li></ul><ul><li>Common pool resource development </li></ul><ul><li>Promotion of savings </li></ul><ul><li>Risk mitigating (diversification) </li></ul><ul><li>Crop/income diversification </li></ul><ul><li>Producer group formation </li></ul><ul><li>Micro finance </li></ul><ul><li>Agricultural research support (e.g. IRRI: CURE) </li></ul><ul><li>Risk mitigating (insurance) </li></ul><ul><li>Weather-based insurance </li></ul><ul><li>Social capital formation </li></ul><ul><li>Response to disasters </li></ul><ul><li>Reprogramming of ongoing projects (Pakistan) </li></ul><ul><li>New loans (e.g. Tsunami response projects in Sri Lanka, Maldives, India) </li></ul>