This talk highlights the potential role of social and governance institutions as they operate synergistically with the human, natural and physical domains in reducing human deprivation and inequality. The value of a multiple-perspective approach is especially apparent in the context of extreme weather shocks as they contribute to “poverty traps” and increasing inequality. As an example of a social institution, we focus on the potential role of novel risk sharing and transfer arrangements, and especially index-based micro-insurance, for providing safety nets to marginal farmers facing drought risk. As promising as recent pilot projects are proving, we argue that, taken alone, they cannot provide a robust and sustainable option for reducing deprivation caused by weather variability. Their success is dependent on, among other dimensions, physical infrastructure, environmental quality, knowledge and education, and trusted and reliable social institutions. Success is also dependent on including multiple perspectives in the policy process, and we conclude with thoughts on governance arrangements that can foster an integrated and multiple-perspective approach to reducing deprivation and inequality
