Ex-Ante Risk Management and Implications for Sustainable Poverty Reduction
Disaster Risk Financing and Insurance (DRFI) Workshop presentation
Risk-avoidance strategies are commonplace and costly to poor and vulnerable households across the developing world. We argue that neglecting to take this properly into account, and valuing DRFI solely based on the impact of disasters on welfare when they occur, will result in a systematic under-estimation of the value of DRFI strategies for reducing poverty. This brief has presented two empirical case studies, reflective of a broader literature, to reinforce the point that DRFI strategies are important not only for protecting household welfare from covariate and idiosyncratic shocks but also for fostering economic growth, and maintaining social stability.
Topics
DRF on Analytics
DRF Training and Knowledge
DRF on Sovereigns
DRF on Resilient Livelihoods
Regions & Countries
Global
Date of Publication
May, 2015