Managing vulnerability

Thursday, 4 October 2018 00:59 - - {{hitsCtrl.values.hits}}

Economic challenges are dangerous for a multitude of reasons. Among them is the ability for people to absorb shocks such as natural disasters. When people are financially stable they have the ability to save for a rainy day and help other people when times get tough and expanding this ability is crucial to both fight poverty and develop a country.

Sri Lanka is the envy of many countries in its income and development bracket. It has reduced extreme poverty to below 1%, and poverty at the present national poverty line is now down to 4.1%. The key concerns for Sri Lanka are less about extreme poverty; and more about vulnerability to an array of risks. Depending on the level of vulnerability, progress can be undone.

Sri Lanka is visited annually by natural disasters. Both 2016 and 2017 saw severe floods and droughts. According to a recent World Bank report launched recently in Colombo, rising temperatures and changing monsoon rainfall patterns from climate change could cost Sri Lanka 7% of GDP and depress the living standards of nearly half the country’s population by 2050. These events have an enormous impact on those who are directly affected, and the impacts are felt indirectly by all people.

The report estimates that 5.7% of the population is at risk of falling into poverty if a shock reduced their income by 20%. By taking lives, destroying assets and interrupting business activities, disasters are quite capable of adding measurably to the number of poor.

Sri Lanka has put in place extensive programs to respond to disasters. While the Government and development partners are now increasingly able to forecast disasters and provide immediate assistance to those affected, more can be done to coordinate these efforts and ensure that disaster-affected households are supported until they fully recover.

This is where adaptive social protection can play a role. Adaptive social protection comprises a series of measures to protect the poor and the vulnerable from disasters. These are measures to become more resilient as communities.

Adaptive social protection is not just about money it is also about social assistance and services, such as cash transfers, social insurance, like pensions and disability benefits; and active labour market programs. If they are designed and run well, these programs can cushion the blow of unexpected losses such as those brought about by disasters.

Information systems are playing an increasingly pivotal role worldwide in directing and coordinating governments’ responses to those in need. This is a long-term measure that has to move along with the Government’s other development measures.

Currently there are 35 programs implemented by 11 ministries, each with its own rules and processes and no coordination, reducing their impact and efficiency. Scaling these up and ensuring that they are relevant and continue to help the most vulnerable groups will be critical to ensuring economic and political stability in Sri Lanka.