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Inclusive Crises, Exclusive Recoveries, and Policies to Prevent a Double Whammy for the Poor

Author

Listed:
  • Ronald Mendoza
  • Ronald

    (Division of Policy and Practice,UNICEF)

Abstract

When it comes to aggregate economic shocks, the poor and the near-poor often face a double whammy. They are often among the most adversely affected by the shock, suffering from crisis effects that push them and their children deeper into poverty. The poor and near-poor are also the least equipped to participate in and benefit from the subsequent recovery. In a grim twist of irony, the very same coping strategies that the poor turn to, in order to survive and weather the crisis are often also among the causes for their inability to recover quickly. This paper reviews the emerging evidence on the impact of the global economic crisis and food and fuel price volatility of 2008-2009, and it analyzes some of the key policy responses deployed by governments. It finds evidence suggesting that once again the poor risk facing a double whammy. To help ensure a more inclusive social and economic recovery, governments could follow a pro-poor countercyclical strategy that preserves social spending and investments as well as uses part of these resources to develop social protection systems. Failure to do so risks translating the effects of the crisis into permanent harm for children, women and poor families.

Suggested Citation

  • Ronald Mendoza & Ronald, 2010. "Inclusive Crises, Exclusive Recoveries, and Policies to Prevent a Double Whammy for the Poor," Working papers 1004, UNICEF,Division of Policy and Strategy.
  • Handle: RePEc:uce:wpaper:1004
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    File URL: http://www.unicef.org/socialpolicy/files/Inclusive_Crises_Exclusive_Recoveries.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ronald Mendoza & Megan Torres, 2010. "Aftershocks from the Global Food Crisis," Working briefs 1001, UNICEF, Division of Policy and Strategy.
    2. Ronald Mendoza, 2010. "Two Years into the Crisis: Signs of Severe Coping Strategies that are Impacting on Children," Working briefs 1004, UNICEF, Division of Policy and Strategy.
    3. Isabel Ortiz & Jingqing Chai & Matthew Cummins, 2011. "Escalating Food Prices: The threat to poor households and policies to safeguard a Recovery for All," Working papers 1101, UNICEF,Division of Policy and Strategy.

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