Vulnerability and poverty in Bangladesh
This study estimates ex ante poverty and vulnerability of households in Bangladesh using Household Income and Expenditure Survey (HIES) data in 2005. Our results show that poverty is not same as vulnerability as a substantial share of those currently above the poverty line is highly vulnerable to poverty in the future. The study finds that agricultural households or those without education are likely to be the most vulnerable. The geographical diversity of vulnerability is considerable, for example, vulnerability in a coastal division, i.e., Chittagoan Division is almost double to that of Dhaka and almost four times higher than Khulna Division. It is suggested that ex ante measures to prevent households from becoming poor as well as ex post measures to alleviate those already in poverty should be combined in evaluating poverty. In designing policies one should take note of the diverse nature of poverty and vulnerability. For the chronically poor who lack economic assets, priority should be given to reduction of consumption fluctuations and building up assets through a combination of protective and promotional programmes. Access to financial services, for example, through micro credit programmes, might help poor households build up assets as it smoothes income and consumption, enables the purchase of inputs and productive assets, and provides protection against crises. On the other hand, the transient poor and high vulnerable non-poor households are most likely to benefit from combination of prevention, protection, and promotion which would give them a more secure base to diversify their activity into higher-return, higher risk activities. [Working Paper No. 141]
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.:
- Hoddinott, John & Quisumbing, Agnes, 2003. "Methods for microeconometric risk and vulnerability assessments," Social Protection and Labor Policy and Technical Notes 29138, The World Bank.
- Pramila Krishnan & Stefan Dercon, 1997.
"In sickness and in health ... risk-sharing within households in rural Ethiopia,"
CSAE Working Paper Series
1997-12, Centre for the Study of African Economies, University of Oxford.
- Stefan Dercon & Pramila Krishnan, 2000. "In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 688-727, August.
- Stefan Dercon, 2004.
"Growth and Shocks: evidence from rural Ethiopia,"
Development and Comp Systems
- Ligon, Ethan & Schechter, Laura, 2004. "Evaluating different approaches to estimating vulnerability," Social Protection and Labor Policy and Technical Notes 30159, The World Bank.
- Raghav Gaiha & Katsushi Imai & Woojin Kang, 2007.
"Vulnerability and poverty dynamics in Vietnam,"
The School of Economics Discussion Paper Series
0708, Economics, The University of Manchester.
- Canagarajah, P. Sudharshan & Siegel, Paul B. & Heitzmann, Karin, 2002. "Guidelines for assessing the sources of risk and vulnerability," Social Protection and Labor Policy and Technical Notes 31372, The World Bank.
- Raghav Gaiha & Katsushi Imai, 2004.
"Vulnerability, shocks and persistence of poverty: estimates for semi-arid rural South India,"
Oxford Development Studies,
Taylor & Francis Journals, vol. 32(2), pages 261-281.
- Imai, Katsushi & Raghav Gaiha, 2003. "Vulnerability, Shocks and Persistence of Poverty - Estimates for Semi-Arid Rural South India," Royal Economic Society Annual Conference 2003 111, Royal Economic Society.
- Katsushi Imai & Raghav Gaiha, 2002. "Vulnerability, Shocks and Persistence of Poverty - Estimates for Semi-Arid Rural South India," Economics Series Working Papers 128, University of Oxford, Department of Economics.
- Ligon, Ethan & Laura Schechter, 2002.
Royal Economic Society Annual Conference 2002
128, Royal Economic Society.
- Hanan G. Jacoby & Emmanuel Skoufias, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Oxford University Press, vol. 64(3), pages 311-335.
- Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302.
- Jalan, Jyotsna & Ravallion, Martin, 2002.
"Household Income Dynamics in Rural China,"
WIDER Working Paper Series
010, World Institute for Development Economic Research (UNU-WIDER).
- Morduch, J., 1995.
"Income Smoothing and Consumption Smoothing,"
512, Harvard - Institute for International Development.
- Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Harvard Institute of Economic Research Working Papers 1727, Harvard - Institute of Economic Research.
- Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," World Bank Research Observer, World Bank Group, vol. 14(2), pages 187-207, August.
- Robert Holzmann & Steen Jørgensen, 2001. "Social Risk Management: A New Conceptual Framework for Social Protection, and Beyond," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 529-556, August.
- Sen, Binayak, 2003. "Drivers of Escape and Descent: Changing Household Fortunes in Rural Bangladesh," World Development, Elsevier, vol. 31(3), pages 513-534, March.
- Hans Hoogeveen, 2001. "A New Approach to Insurance in Rural Africa," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 26(3), pages 505-513, July.
- Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
- Tesliuc, Emil D. & Lindert, Kathy, 2004. "Risk and vulnerability in Guatemala: a quantitative and qualitative assessment," Social Protection and Labor Policy and Technical Notes 30154, The World Bank.
- Stefan Dercon, 2000.
"Income risk, coping strategies and safety nets,"
CSAE Working Paper Series
2000-26, Centre for the Study of African Economies, University of Oxford.
When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:2675. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash)
If references are entirely missing, you can add them using this form.