Risk, Risk Management and Vulnerability to Poverty in Rural Malawi
··· lezzter Preis 27.55 ··· 9783867277464 ··· 10361169936 ··· Vulnerability to poverty in Malawi is highly associated with risk. Rural households facemultiple shocks, most of which threaten their livelihoods and impact negatively on theirwelfare. This study investigates three inherently interconnected issues: vulnerability topoverty risk management strategies and consumption smoothing. The central researchissue is on understanding the role of risk in household vulnerability and poverty. Using atwo-period panel dataset of 259 households in rural Malawi, the study addresses threeobjectives: First, to identify the determinants of vulnerability in rural Malawi. Second, toanalyze households` coping mechanisms for different shocks and identify thedeterminants of these mechanisms. Third, to test for the existence of householdconsumption smoothing as an insurance mechanism against idiosyncratic shocks.The panel dataset used in the study was derived from the 2004 second Malawi IntegratedHousehold Survey (IHS2) from which 259 households were sampled and followed up in2006 with a similar questionnaire. Vulnerability was modelled as expected poverty usingChristiaensen and Subbarao (2004) methodology to investigate the extent to which ruralhouseholds in Malawi are vulnerable to poverty. The results show that in 2004 thesampled households had an average chance of 44 percent of falling into poverty in 2006and around 21 percent of the non-poor in 2004 were vulnerable to poverty in 2006.Further, female-headed households appear to be more vulnerable than their malecounterparts. Education, land holdings and running a non-farm income generatingactivity in the household reduce household vulnerability. Community infrastructures suchas health clinics and access to markets have vulnerability-reducing effects. Thesecorrelates of vulnerability are extremely similar to the correlates of poverty among thesampled households. Both covariate and idiosyncratic shocks are felt more by thevulnerable households. The results further show that vulnerability among the studiedhouseholds is exacerbated by low average consumption levels more than consumptionvolatility.The determinants of risk management strategies were analyzed using a multinomiallogistic regression model. The results have shown that drought, rising food prices andillness are among the major shocks that the sampled households face, with cropdiversification being used as an ex-ante risk management strategy. Ex-post copingstrategies take the form of safety net programs, use of household assets and gettingsupport from social networks, among others. The major determinants of the choice of theex-post coping strategy among the studied households include the size of the household,the number of economically active individuals in the household, per capita landholdings,ownership of livestock, access to markets and the type of shocks that households face.Consumption smoothing was analyzed using a household asset index due tounavailability of household income data. A test for consumption smoothing was then runby considering the impact of changes in the household asset index between 2004 and2006 on changes in consumption. The results, which are robust to measurement error inconsumption expenditure, show that the studied households try to protect theirconsumption from shocks, with food consumption being protected more than non-foodconsumption. Further, poor households tend to protect their food consumption more thanthe non-poor households. However, the study found no evidence of perfect consumptionsmoothing.The major policy implications are that poverty reduction programmes would be moreeffective in rural Malawi if they do not only incorporate the currently poor but also thevulnerable. Since the study has shown that the main source of vulnerability appears to below mean consumption levels among the studied households, social protectionprogrammes that take the form of productivity-enhancing safety nets, targeting not onlythe poor but also the vulnerable would be effective to help them cope with shocks andincrease household mean consumption levels. Programmes that help rural households toaccumulate assets are also needed to help them cope with shocks. Further, promotion ofsmall and medium scale irrigation schemes as well as the use of weather insurance, as ameans of reducing the costs associated with crop failure, could be effective in dealingwith the major covariate shock, drought. Hersteller: Cuvillier Verlag Marke: Cuvillier Verlag EAN: 9783867277464 Kat: Hardcover/Sozialwissenschaften, Recht, Wirtschaft/Wirtschaft/Sonstiges Lieferzeit: Sofort lieferbar Versandkosten: Ab 20¤ Versandkostenfrei in Deutschland Icon: https://www.inforius-bilder.de/bild/?I=XH2HK%2Fm%2FfWuO2V4y2NVT%2FlsXo91RqH9nKyaThhWi0VI%3D Bild:
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