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Shocks, Sensitivity and Resilience: Tracking the Economic Impacts of Environmental Disaster on Assets in Ethiopia and Honduras

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Author Info
Michael Carter (University of Wisconsin)
Peter Little (University of Kentucky)
Tewodaj Mogues (International Food Policy Research Institute)
Workneh Negatu (Addis Abeba University)

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Abstract

Droughts, hurricanes and other environmental shocks punctuate the lives of poor and vulnerable populations in many parts of the world. The direct impacts can be horrific, but what are the longer-term effects of such shocks on households and their livelihoods? Under what circumstances, and for what types of households, will shocks push households into poverty traps from which recovery is not possible? In an effort to answer these questions, this paper analyzes the asset dynamics of Ethiopian and Honduran households in the wake of severe environmental shocks. While the patterns are different across countries, both reveal worlds in which the poorest households struggle most with shocks, adopting coping strategies which are costly in terms of both short term and long term well-being. There is some evidence that shocks threaten long term poverty traps and that they tend to militate against any tendency of the poor to catch up with wealthier households. Policy implications are discussed in terms of access to markets and the design of government safety net programs.

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Publisher Info
Paper provided by EconWPA in its series Development and Comp Systems with number 0511029.

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Length: 39 pages
Date of creation: 29 Nov 2005
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Handle: RePEc:wpa:wuwpdc:0511029

Note: Type of Document - pdf; pages: 39
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Web page: http://129.3.20.41

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Related research
Keywords: Ethiopia Honduras Shocks Drought Hurricanes Assets Poverty traps Asset smoothing Social capital

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Find related papers by JEL classification:
O - Economic Development, Technological Change, and Growth
P - Economic Systems

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April. [Downloadable!] (restricted)
    Other versions:
  2. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August. [Downloadable!] (restricted)
  3. Boucher, Stephen R. & Barham, Bradford L. & Carter, Michael R., 2005. "The Impact of "Market-Friendly" Reforms on Credit and Land Markets in Honduras and Nicaragua," World Development, Elsevier, vol. 33(1), pages 107-128, January. [Downloadable!] (restricted)
  4. Quisumbing, Agnes R., 2003. "Food aid and child nutrition in rural Ethiopia," FCND discussion papers 158, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Peter D. Little & M. Priscilla Stone & Tewodaj Mogues & A. Peter Castro & Workneh Negatu, 2006. "'Moving in place': Drought and poverty dynamics in South Wollo, Ethiopia," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(2), pages 200-225, February. [Downloadable!] (restricted)
  6. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(2), pages 178-199, February. [Downloadable!] (restricted)
  7. Quisumbing, Agnes R., 2003. "Food aid and child nutrition in rural Ethiopia," FCND briefs 158, International Food Policy Research Institute (IFPRI). [Downloadable!]
  8. Tewodaj Mogues, 2005. "Shocks, Livestock Asset Dynamics, and Social Capital in Ethiopia," Development and Comp Systems 0512006, EconWPA. [Downloadable!]
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  9. Quisumbing, Agnes R., 2003. "Food Aid and Child Nutrition in Rural Ethiopia," World Development, Elsevier, vol. 31(7), pages 1309-1324, July. [Downloadable!] (restricted)
  10. John Hoddinott, 2006. "Shocks and their consequences across and within households in Rural Zimbabwe," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(2), pages 301-321, February. [Downloadable!] (restricted)
  11. Morris, Saul S. & Neidecker-Gonzales, Oscar & Carletto, Calogero & Munguia, Marcial & Medina, Juan Manuel & Wodon, Quentin, 2002. "Hurricane Mitch and the Livelihoods of the Rural Poor in Honduras," World Development, Elsevier, vol. 30(1), pages 49-60, January. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Badiane, Ousmane, 2006. "Agricultural trade liberalization under Doha: the risks facing African countries," DSGD discussion papers 39, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Tewodaj Mogues, 2005. "Shocks, Livestock Asset Dynamics, and Social Capital in Ethiopia," Development and Comp Systems 0512006, EconWPA. [Downloadable!]
    Other versions:
  3. You, Liangzhi & Diao, Xinshen, 2006. "Assessing potential impact of avian influenza on poultry in West Africa: a spatial equilibrium model analysis," DSGD discussion papers 40, International Food Policy Research Institute (IFPRI). [Downloadable!]
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