Inclusive Crises, Exclusive Recoveries, and Policies to Prevent a Double Whammy for the Poor
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.
|Date of creation:||2010|
|Contact details of provider:|| Postal: 3 United Nations Plaza|
Phone: +1 212 326 7000
Fax: +1 212 888 7454
Web page: http://www.unicef.org
|Order Information:||Web: http://www.unicef.org/publications/socialpolicy|
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.:
- Juan Pablo Atal & Hugo R. Ñopo & Natalia Winder, 2009.
"New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America,"
IDB Publications (Working Papers)
5398, Inter-American Development Bank.
- Nopo, Hugo R. & Atal, Juan Pablo & Winder, Natalia, 2010. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IZA Discussion Papers 5085, Institute for the Study of Labor (IZA).
- Juan Pablo Atal & Hugo Nopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," Research Department Publications 4640, Inter-American Development Bank, Research Department.
- Simon Davies & James Davey, 2008. "A Regional Multiplier Approach to Estimating the Impact of Cash Transfers on the Market: The Case of Cash Transfers in Rural Malawi," Development Policy Review, Overseas Development Institute, vol. 26(1), pages 91-111, 01.
- Markus Bruckner & Rabah Arezki, 2010. "International Commodity Price Shocks, Democracy, and External Debt," IMF Working Papers 10/53, International Monetary Fund.
- Ferreira, Francisco H. G. & Schady, Norbert, 2008. "Aggregate economic shocks, child schooling and child health," Policy Research Working Paper Series 4701, The World Bank.
- Ethan Ilzetzki & Carlos A. Vegh, 2008. "Procyclical Fiscal Policy in Developing Countries: Truth or Fiction?," NBER Working Papers 14191, National Bureau of Economic Research, Inc.
- Ronald Mendoza & Megan Torres, 2010. "Aftershocks from the Global Food Crisis," Working briefs 1001, UNICEF, Division of Policy and Strategy.
- del Ninno, Carlo & Dorosh, Paul A. & Smith, Lisa C., 2003. "Public policy, food markets, and household coping strategies in Bangladesh," FCND briefs 156, International Food Policy Research Institute (IFPRI).
- del Ninno, Carlo & Dorosh, Paul A. & Smith, Lisa C., 2003. "Public policy, food markets, and household coping strategies in Bangladesh," FCND discussion papers 156, International Food Policy Research Institute (IFPRI).
- Tiwari, Sailesh & Zaman, Hassan, 2010. "The impact of economic shocks on global undernourishment," Policy Research Working Paper Series 5215, The World Bank.
- Ffrench-Davis Ricardo, 2010. "Latin America: The Structural Fiscal Balance Policy in Chile: A Move Toward Counter-Cyclical Macroeconomics," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-16, January.
- Verick, Sher, 2009. "Who Is Hit Hardest during a Financial Crisis? The Vulnerability of Young Men and Women to Unemployment in an Economic Downturn," IZA Discussion Papers 4359, Institute for the Study of Labor (IZA).
- Andrea de Michelis, 2009. "Overcoming the Financial Crisis in the United States," OECD Economics Department Working Papers 669, OECD Publishing.
- Ronald Mendoza & Nicholas Rees, 2009. "Infant Mortality During Economic Downturns and Recovery," Working papers 0904, UNICEF,Division of Policy and Strategy.
- Friedman, Jed & Schady, Norbert, 2009. "How many more infants are likely to die in Africa as a result of the global financial crisis ?," Policy Research Working Paper Series 5023, The World Bank.
- Kasekende Louis & Brixova Zuzana & Ndikumana Leonce, 2010. "Africa: Africa's Counter-Cyclical Policy Responses to the Crisis," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-22, January.
- Pedro Conceicao & Namsuk Kim & Ronald Mendoza & Yanchun Zhang, 2009. "Human Development in Crisis," Working papers 0903, UNICEF,Division of Policy and Strategy.
- Furceri, Davide, 2010. "Stabilization effects of social spending: Empirical evidence from a panel of OECD countries," The North American Journal of Economics and Finance, Elsevier, vol. 21(1), pages 34-48, March.
- Ronald Mendoza, 2009. "Aggregate Shocks, Poor Household and Children: Transmission Channels and Policy Responses," Working papers 0901, UNICEF,Division of Policy and Strategy.
- Davide Furceri, 2009. "Stabilization Effects of Social Spending: Empirical Evidence from a Panel of OECD Countries Overcoming the Financial Crisis in the United States," OECD Economics Department Working Papers 675, OECD Publishing. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:uce:wpaper:1004. 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: (Maria Clara Osorio)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.