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UNU-WIDER Insurance Against Poverty

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Insurance Against Poverty

Project name/title
Insurance Against Poverty
Year:
2000
Theme:
Poverty, Inequality and Well-being
Abstract:
Households in developing countries face many risks. Informal insurance mechanisms (marriage, the extended family, and investment in social capital) provide some protection but are weak in the face of major calamities that affect households en masse (for example drought or economic recession). Most people cannot obtain formal insurance. The incomplete insurance market therefore constrains investment, growth, and poverty reduction. Public action to remedy this deficiency is merited, but what form should it take? The project will evaluate alternatives in widening insurance provision, including sustainability and poverty effects.
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