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Amjad Nazeer1
(June 2004)
‘Along with death and taxes, risk is one of the certainties of life’2
‘Every day, I am afraid of the next3’
Introduction:
Life is a struggle through natural and socio-economic risks. But it is the poor who are
affected most seriously by the risk, of whatever sort it is. It eats up their belongings,
disrupts their livelihoods and at times threatens their life too. Although risk, shocks and
uncertainties share conceptual boundaries but they are not synonymous. They can be
dealt together in poverty studies but in this article, I am confining my explanation to risk
and adversaries of risk.
I am going to unpack the issue in two parts: First is the brief description of different kinds
of risks and their hazardous impact on the poor. Second is the significance of ‘risk’ in
poverty studies. Considering risk as a crucial element of poverty studies is my key
argument as leaving it unaddressed might cause a major deficit in the subject. In the
second part, coping strategies of the poor households in coping and combating risks are
illustrated. My approach of dealing with the issue is relatively different from the
conventional pattern of listing down the stereotypes of livelihood diversification. I will
rather explore various approaches and attitudes of the poor in responding risks, their
innovativeness and ingenuity in dealing with risks and pressures on their livelihood and
sources of livelihood.
1
The author is a human rights activist and works for an international NGO in Pakistan.
2
Source: A statement by MacCrimmon and Wehrung 1986, as quoted in Anderson R. (2001)
3
Source: A poor ma from Russia , Voices of the poor , World Bank
Risk is a major or minor hazardous event, likely to happen without any reliable prediction
(Lipton and Sinha 1999: 5; Anderson 1999: 3). It is ambient in the poor rural economies
that not only decreases the existing capacities of the poor rather factors in regenerating
poverty (Fafchamps 1999: 4) and pushing the poor down to further risks. All risks are
fluctuations that damage the life systems of the poor. They push the non-poor in to
poverty and intensify poverty of the poor. Risks inequalize4 the inter- and intra-household
distribution of resources and when occur are difficult to handle (Lipton and Sinha 1999:
4-5).
The poor are highly susceptible to risks due to lack of: assets, productive resources,
stocks and stores, exchange entitlements and claims, savings or access to services and
credit. Their social support mechanism, owing to their less reciprocal capability, happens
to be poor and sources of information remain limited, weakening their capacity to absorb
shocks5. In acute circumstances, the only asset, they have, is their body to invest in the
labour market (Chambers, 1983: 113-117; Fafchamps 1999: 6; Swift 1989: 9-11). Along
with affecting their material well being, risk puts them under psychological stress and
diminishes their utility and ritual pleasures, which may result in social exclusion
(Fafchamps 1999: 3-4) and indignity.
Risks can be of large- i.e aggregate or small- i.e idiosyncratic scale with variant
frequency and force. Aggregate risks affect the whole community simultaneously like
famine, drought, cyclone, floods, epidemic, pests/rats-attack, market fluctuation, crop
failure and warfare etc. While idiosyncratic risks affect a particular household or
individual like illness, death, disability, accident, theft or any other physical or economic
loss. The span of risks could be longer or shorter but the repercussions of risks keep
unfolding long after they occur. Some of them are recurrent, others are once off, and so
are the people’s responses (Davies, 1996; Fafchamps 1999).
4
The same argument is debated for diversification (in response to risk). Some forms of diversifications
have equalizing impact but most of them favour the well off (Adams and He 1995 as cited in Ellis 1998).
5
If the risk is sudden and intensive, it may be termed as shock. Moreover Fafchamps is using this word
interchangeably with risk (see Fafchamps, 1999, Rural poverty, risk and development).
Agriculture, in which the poor predominately operate in, is a fragile and risk-prone sector.
A plethora of risks and uncertainties surrounds the livelihood of rural poor (Robinson and
Barry 1987; Fleisher 1990; Anderson and Dillon, 1992 as cited in Anderson 1999: 1).
Moreover mechanization, agri-inputs and now genetically modified organisms (GMOs)
expose them to new risks and fears. Without knowing the nature of risks and traditional
coping strategies, it is difficult for NGOs and international development agencies to
evolve risk management tools and make successful interventions (Anderson 1999: 1-2).
It is essential to understand, how poor people themselves see risk and vulnerability and
think of the ways to reduce them. To them, risk is not limited to income or consumption
loss as it is conventionally perceived to be. It can be of personal liberty, self-esteem,
mobility, social interaction and so on. There is a whole range of intangible risks that
needs to be taken in to account for appropriate policy interventions (Chambers 1989: 4,
Beck 1989: 27-28).
Poor households adopt number of strategies in response to risk. These strategies are
diverse, complicated and context specific. It depends on demography and ecology of the
area and the nature and degree of risk they are confronting with. Different households
respond differently to the same risk depending on their resources, assets, income and
skills they posses. Furthermore, ethnicity, cast, gender, social support systems, cultural
values, available opportunities and some other variables also shape their responses.
(Adams and He 1995; Davies and Hossain 1997; Hart 1994; Reardon et al. 1992 as
cited in Ellis 1998: 5-13).
Cutting on basic needs like food, clothing, medicine and education are commonly
adopted measure in precarious situations. Others would find off-farm or non-farm labour.
Some of them would put additional members to work, sell home-made crafts or assets or
draw on savings or seek loan or sell livestock or migrate or mortgage/sell land (if
available). It must be pointed out that risk coping decisions that poor households make
Mixed cropping as practiced by Dobo village of Sudan is one way of food insurance (Tall
1989: 19). Similarly intercropping is an on-farm diversification to cope with insecurity of
food. Richards, P. (1986) has meticulously studied the seasonal hunger coping
strategies of Mogbuama people of Sierra Leone. Mogbuama subsistence rice farmers
are likely to run out of food before the next year harvest usually due to earlier rainfall or
sickness. The smallest households and those involved in litigation are the most common
victims. Cassava, maize, egusi or some vegetables are cultivated immediately after
clearing and before planting rice for the next year. These crops work as hunger breaker
for poor households and normally women take that initiative (Ibid: 116-119).
The landless poor also draw on common property resource (CPR) to meet day-to-day
food stress or scarcity. Women and particularly children are known to collect food grains
or gather wild plants, fruits and leaves to appease their hunger even at the cost of their
health.
Case Study: Fatu, 55 years old woman lives in village Kilimahewa (Tanzania), has three
daughters, all married. She married three times. Her first husband divorced her, second
was imprisoned for theft and third died after long illness. Her third husband left her
impoverished, spending all their savings on his treatment. She kept taking care of her
own mother till her death. She did not inherit any land from her parents. Currently she
receives gifts from her daughters and neighbours; otherwise her support networks are
very little.
She, sometimes, goes for day laboring (construction), which she does not want to. Her
other source of livelihood is selling ming’oko, a wild root crop, which she is doing for last
two years. She is discontented with this un-profiteering activity but continues to dot it
rather than offering herself most often for day labor. Ming’oko is an ordinary crop, which
is eaten as a snack or mixed with cassava to make a meal. The work itself is tough. Fatu
and other women leave early in the morning and reach the forest after four hours walk.
Having some rest they dig the roots with hoe for four to five hours. Lions inhabit the
forest too. Women make fire and stay their overnight. On second day they leave for the
village. Before selling, they boil and clean the roots. The selling takes no time but the
whole effort is worth shs 700-1000 only.
Fatu is deprived of any respect what her age, kinship and religion might have offered
her. During her third marriage she was able to partake in communal activities, what she
has dropped now. She can hardly pay the most pressing market-place fee. She has lost
whole cultural capital and is striving to cope with her marginal position.
Source: Extracted from Seppala, P. (1996) and abridged by the author.
Loss of honour
Risk
Affectd hh Loss of Cons.
hh oCConsumption
Loss of Income
Extra Labour
Safety Nets
Entitlements
CPRs
Prod. Assets
Conclusions:
Risk is part of human ecology. The poor are the worst victims of risk because they live in
isolated, remote and risk prone areas. Unavailability of infrastructure and government
services and lack of opportunities exacerbate the effects of risks. Risk ultimately affects
-----------------
References:
6
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http://www.worldbank.org/poverty/rural development/background/anderson/ (17 March 2002)
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6
Despite my utmost effort, I could not find online publication/placement date of this article. Some other
background papers mention 2001; I guess this should be sometimes 200.
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