Building resilience through financial inclusion: A review of existing evidence and knowledge gaps

Low-income households around the world are particularly vulnerable to shocks, but also the least prepared when a shock hits. The effects of climate change, including floods, droughts, and other weather-related disasters, are adding another layer of risk for already vulnerable households. In this con...

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Main Authors: Moore, Danielle, Niazi, Zahra, Rouse, Rebecca, Kramer, Berber
Format: Brief
Language:Inglés
Published: Innovations for Poverty Action 2019
Subjects:
Online Access:https://hdl.handle.net/10568/146519
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author Moore, Danielle
Niazi, Zahra
Rouse, Rebecca
Kramer, Berber
author_browse Kramer, Berber
Moore, Danielle
Niazi, Zahra
Rouse, Rebecca
author_facet Moore, Danielle
Niazi, Zahra
Rouse, Rebecca
Kramer, Berber
author_sort Moore, Danielle
collection Repository of Agricultural Research Outputs (CGSpace)
description Low-income households around the world are particularly vulnerable to shocks, but also the least prepared when a shock hits. The effects of climate change, including floods, droughts, and other weather-related disasters, are adding another layer of risk for already vulnerable households. In this context, it is increasingly important that poor households build resilience—that they strengthen their ability to mitigate, cope, and recover from shocks and stresses without compromising their future welfare. Evidence suggests well-designed financial products and services can play a role in increasing low-income families’ resilience by helping them be prepared for risk, reduce risk, increase investment in the face of risk, and respond when a shock occurs. Yet the role that financial products and services can play in increasing resilience, as well as the most effective design and delivery mechanisms toward that end, is not fully understood. This paper reviews the evidence on financial inclusion and resilience to inform policymakers on effective strategies and makes the call for more research on this timely and relevant topic.
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spelling CGSpace1465192024-10-25T08:06:03Z Building resilience through financial inclusion: A review of existing evidence and knowledge gaps Moore, Danielle Niazi, Zahra Rouse, Rebecca Kramer, Berber insurance risk reduction low income groups behavioural sciences rural finance investment innovation adoption food security cash transfers risk poverty savings resilience Low-income households around the world are particularly vulnerable to shocks, but also the least prepared when a shock hits. The effects of climate change, including floods, droughts, and other weather-related disasters, are adding another layer of risk for already vulnerable households. In this context, it is increasingly important that poor households build resilience—that they strengthen their ability to mitigate, cope, and recover from shocks and stresses without compromising their future welfare. Evidence suggests well-designed financial products and services can play a role in increasing low-income families’ resilience by helping them be prepared for risk, reduce risk, increase investment in the face of risk, and respond when a shock occurs. Yet the role that financial products and services can play in increasing resilience, as well as the most effective design and delivery mechanisms toward that end, is not fully understood. This paper reviews the evidence on financial inclusion and resilience to inform policymakers on effective strategies and makes the call for more research on this timely and relevant topic. 2019-02-19 2024-06-21T09:07:21Z 2024-06-21T09:07:21Z Brief https://hdl.handle.net/10568/146519 en https://doi.org/10.2499/p15738coll2.134958 Open Access Innovations for Poverty Action Moore, Danielle; Niazi, Zahra; Rouse, Rebecca; and Kramer, Berber. 2019. Building resilience through financial inclusion: A review of existing evidence and knowledge gaps. Innovations for Poverty Action. https://www.poverty-action.org/publication/building-resilience-through-financial-inclusion-review-existing-evidence-and-knowledge
spellingShingle insurance
risk reduction
low income groups
behavioural sciences
rural finance
investment
innovation adoption
food security
cash transfers
risk
poverty
savings
resilience
Moore, Danielle
Niazi, Zahra
Rouse, Rebecca
Kramer, Berber
Building resilience through financial inclusion: A review of existing evidence and knowledge gaps
title Building resilience through financial inclusion: A review of existing evidence and knowledge gaps
title_full Building resilience through financial inclusion: A review of existing evidence and knowledge gaps
title_fullStr Building resilience through financial inclusion: A review of existing evidence and knowledge gaps
title_full_unstemmed Building resilience through financial inclusion: A review of existing evidence and knowledge gaps
title_short Building resilience through financial inclusion: A review of existing evidence and knowledge gaps
title_sort building resilience through financial inclusion a review of existing evidence and knowledge gaps
topic insurance
risk reduction
low income groups
behavioural sciences
rural finance
investment
innovation adoption
food security
cash transfers
risk
poverty
savings
resilience
url https://hdl.handle.net/10568/146519
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