The poor in developing countries are particularly vulnerable to
adverse shocks. They have little or no access to public social
insurance, are unlikely to save in adequate amounts to rely fully
on self-insurance or informal insurance, face restricted access to
private market insurance or credit mechanisms, and have little or
no political voice to demand the protection of safety net programs.
In this book, the authors analyze the best ways to help the poor
manage risks such as health shocks, unemployment, sudden drops in
income, and old age. Unemployment benefits, employment programs,
means-tested social assistance, social investment funds, and
micro-finance for consumption-smoothing purposes are the leading
options considered. The book provides a careful assessment of
issues that governments need to address in the process of designing
appropriate safety nets.
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