An asset-based approach to social risk management : a conceptual framework

There is increasing concern about the vulnerability of poor and near-poor rural households, who have limited capabilities to manage risk and often resort to strategies that can lead to a vicious cycle of poverty. Household-related risk is ususally considered individual or private, but measures to manage risk are actually social or public in nature. Furthermore, various externality issues are associated with household-related risk, such as its links to economic development, poverty reduction, social cohesion, and environmental quality. Hence the need for a holistic approach to risk management, or"social risk management,"which encompasses a broad spectrum of private and public actions. An asset-based approach to social risk management is presented, which provides an integrated approach to considering household, community, and extra-community assets and risk-management strategies. The conceptual framework for social risk management focuses on rural Sub-Saharan Africa. The report concludes with several suggestions on moving from concepts to actions.Health Economics&Finance,Insurance&Risk Mitigation,Banking Law,Environmental Economics&Policies,Banks&Banking Reform

Viewing microinsurance as a social risk management instrument

The objectives of this paper are to highlight some of the potential and limitations of microinsurance in the context of Social Risk Management (SRM) framework to stimulate further discussion. The paper draws on existing literature on SRM and microinsurance. Where relevant, it invokes lessons from microfinance. The authors conclude that there is potential for efficient and equitable risk management through microinsurance, but also limitations. Microinsurance may be an acceptable means of managing a few limited forms of risk, but not all. SRM practitioners need to recognize that effectiveness of any risk management instrument depends on the nature of risks, household and group characteristics and dynamics, and the availability of alternative risk management options. SRM options should strike a balance between household risk management activities and the multiple instruments available at different institutional levels, including informal, market-based, and publicly provided mechanisms. Microinsurance is a potential part of the SRM toolbox, but risk management can be enhanced through different mechanisms or combinations of them.Insurance&Risk Mitigation,Banks&Banking Reform,Non Bank Financial Institutions,Environmental Economics&Policies,Health Economics&Finance

Is export diversification the best way to achieve export growth and stability? A look at three African countries

Malawi, Tanzania, and Zimbabwe depend heavily on export earnings from a narrow base of agricultural commodities (coffee, cotton, sugar, tea, and tobacco). This dependence increased between 1961 - 1973 and 1974 - 1987, when international prices for those commodities were declining and unstable. Policymakers concerned with the instability and downward trend in export earnings for the three countries, tend to equate these trends with the countries'narrow export commodity base. They often propose export diversification as an expedient remedy. But the authors found that horizontal diversification would have produced lower export earnings and more instability. Policymakers introducing horizontal diversification must first consider price forecasts, comparative advantage, the economy's changing structure, and the costs of adjustment. Reactions to historical price movements can produce unexpected, undesirable results. A shift during this period from favorable to unfavorable price trends, and shifts in the covariances of deviations from price trends, complicate the design of export diversification policies, especially policies aimed at stabilizing export earnings. Generally, the most effective way to achieve growth and stability in export earnings is to increase and stabilize agricultural production and the volume of exports. The authors analysis shows that different export diversification policies can help fulfill different policy goals.Economic Theory&Research,Airports and Air Services,Achieving Shared Growth,Water Resources Assessment,Crops&Crop Management Systems

Vulnerability : a view from different disciplines

Practitioners from different disciplines use different meanings and concepts of vulnerability, which, in turn, have led to diverse methods of measuring it. This paper presents a selective review of the literature from several disciplines to examine how they define and measure vulnerability. The disciplines include economics, sociology/anthropology, disaster management, environmental science, and health/nutrition. Differences between the disciplines can be explained by their tendency to focus on different components of risk, household responses to risk and welfare outcomes. In general, they focus either on the risks (at one extreme) or the underlying conditions (or outcomes) at the other. Trade-offs exist between simple measurement schemes and rich conceptual understanding.Environmental Economics&Policies,Health Economics&Finance,Insurance&Risk Mitigation,Economic Theory&Research,Rural Poverty Reduction

Geography, Livelihoods and Rural Poverty in Honduras: An Empirical Analysis using an Asset-base Approach

The overall objective of this paper is to develop an appropriate conceptual and analytical framework to better understand how prospects for growth and poverty reduction can be stimulated in rural Honduras. We employ complementary quantitative and qualitative methods of analysis, driven by an asset-base approach. Emphasis on assets is appropriate given high inequalities in the distribution of productive assets among households and geographical areas in Honduras. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. We focus on household assets (broadly defined to include natural, physical, human, financial, social and locational assets) and their combinations necessary to take advantage of economic opportunities. We examine the relative contributions of these assets, and identify the combinations of productive, social, and location-specific assets that matter most to raise incomes and take advantage of prospects for poverty-reducing growth. Factor and cluster analysis techniques are used to identify and group different livelihood strategies; and econometric analysis is used to investigate the determinants of different livelihood strategies and the major factors that impact on income. Spatial analysis, community livelihood studies and project stocktakings are brought in to complement some of the more quantitative household survey data used. Our conclusions and recommendations are mainly focused on hillsides and hillside areas since the majority of the available data is for these areas.

Spatial and temporal variations in indoor environmental conditions, human occupancy, and operational characteristics in a new hospital building.

The dynamics of indoor environmental conditions, human occupancy, and operational characteristics of buildings influence human comfort and indoor environmental quality, including the survival and progression of microbial communities. A suite of continuous, long-term environmental and operational parameters were measured in ten patient rooms and two nurse stations in a new hospital building in Chicago, IL to characterize the indoor environment in which microbial samples were taken for the Hospital Microbiome Project. Measurements included environmental conditions (indoor dry-bulb temperature, relative humidity, humidity ratio, and illuminance) in the patient rooms and nurse stations; differential pressure between the patient rooms and hallways; surrogate measures for human occupancy and activity in the patient rooms using both indoor air CO2 concentrations and infrared doorway beam-break counters; and outdoor air fractions in the heating, ventilating, and air-conditioning systems serving the sampled spaces. Measurements were made at 5-minute intervals over consecutive days for nearly one year, providing a total of ∼8×106 data points. Indoor temperature, illuminance, and human occupancy/activity were all weakly correlated between rooms, while relative humidity, humidity ratio, and outdoor air fractions showed strong temporal (seasonal) patterns and strong spatial correlations between rooms. Differential pressure measurements confirmed that all patient rooms were operated at neutral pressure. The patient rooms averaged about 100 combined entrances and exits per day, which suggests they were relatively lightly occupied compared to higher traffic environments (e.g., retail buildings) and more similar to lower traffic office environments. There were also clear differences in several environmental parameters before and after the hospital was occupied with patients and staff. Characterizing and understanding factors that influence these building dynamics is vital for hospital environments, where they can impact patient health and the survival and spread of healthcare associated infections

Geographic space, assets, livelihoods and well-being in rural Central America

"This paper uses an asset-base framework to analyze the determinants of rural growth and sustainable poverty reduction for the three poorest countries in Central America: Guatemala, Honduras and Nicaragua...Using a combination of GIS mapping techniques, quantitative household analysis, and qualitative analyses of assets and livelihoods, the authors generate a description of rural territories that recognizes the differential effects of policies and asset bundles across space and households. They identify the combinations of human, natural and physical, social and location-specific assets that matter most to raise household well-being and take advantage of prospects for poverty-reducing growth." from Authors' AbstractPoverty reduction ,rural livelihoods ,Households Economic aspects ,

Analyst forecast accuracy and firm growth

This study examines the affect of business segment industry specialization as a supplement to portfolio complexity on forecast error and Tobin’s Q. After controlling for diversification and growth potential, forecast error is negatively related to business segment industry specialization. Diversification (high growth firms) increases (decreases) forecast error. High growth, focused firms are associated with noncomplex portfolios and business segment industry specialization. Within a simultaneous equation model, forecast error does not predict the firm’s Tobin Q ratio; however, Tobin’s Q does predict whether analysts forecast accurately