Financial services for resilience: how to assess the impacts

Abstract

This is the final version. Available from BRACED via the link in this recordkey messages • Niger is a least developed country prone to recurrent drought, which affects a large share of the population and results in severe food security issues. • Support mechanisms, including access to adequate financial resources, are important for individuals and communities to better prepare for and cope with climate extremes. • Village savings and loan associations (VSLAs) are implemented as a means to support rural communities, address livelihood shocks and strengthen social capital. • Two innovative research methods – financial diaries and serious games – have been carried out in Niger, to help support a better understanding of VSLAs’ contribution to climate resilience. • These innovative tools reveal behavioural changes that help complete our understanding of how VSLAs can contribute to resilience-building in dimensions that are often unexplored, including (i) gender empowerment; (ii) social trust; and (iii) natural resource management. • This paper paves the way for further analysis of the role of VSLAs in building communities’ resilience by documenting the linkages between financial inclusion and resilience to climate extremes. • These methods, based on community participation, provide a complementary alternative to traditional monitoring and evaluation methods. They contribute to the ‘monitoring–evaluation–learning’ trinity by blending evaluation and learningDFI

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