Risk and vulnerability limit poor people’s participation in the growth process. The poor often avoid higher risk opportunities with potentially higher payoffs because of their vulnerability. In addition, shocks caused by natural disasters or man-made crises may cause economic contraction and huge numbers of people can fall back into poverty. It is important therefore to have in place reliable social protection instruments that may be deployed rapidly to cope with natural disasters and man made shocks, to avoid extreme deprivation for the poor and the loss of their human, financial and social capital in a desperate attempt to cope. POVNET work in this area has been important for furthering and deepening the debate on how economic growth can best reach the poor. Its main messages were incorporated in Promoting Pro-poor Growth Policy Guidance for Donors.
Click here for material used when preparing this POVNET work on pro-poor growth.