Vulnerability to external shocks

The challenges
External shocks affect households, communities and even entire regions and when these shocks occur it is the extreme poor who are most severely impacted and least able to recover. The shocks may be naturally occurring (eg cyclone, flood, river erosion) but are often man made including slum eviction, fire and the result of inter communal conflict.The Shiree experience of working with over 150,000 extreme poor households indicates that many have been catapulted deeper into poverty through naturally occurring disasters such as repeated displacement through river erosion or flood. Two major cyclones, Aila and Sidr, as well as severe waterlogging caused by tidal surge left thousands of families in the Southern coastal belt stranded on embankments.While many of those with assets, savings, support networks and with multiple income earners will have recovered their economic livelihood, it is the extreme poor who are most vulnerable and for whom these shocks can propel them into a dependency on humanitarian relief.In urban areas slum eviction and frequently occurring fires are two types of externally induced shock that can have no less devastating impact than that of a natural disaster. Again families are uprooted, assets are frequently lost, injury can occur, livelihoods are lost and families become fragmented.The extreme poor are particularly vulnerable to both environmental and manmade shocks, especially given their highly insecure position, complete absence of formal or informal insurance and inability to plan for the future. They lack the means to mitigate the potential damage of floods, droughts, cyclones, fires, and eviction because they have little or no savings, insurance or access to other safety nets.While major natural disasters are normally followed by extensive humanitarian relief efforts these distributions are often little more than a means of survival and the extreme poor face the same constraints in accessing these benefits as they do all other public resources. Given climate change and rapid urbanization the frequency of both naturally induced rural and human induced urban disasters is likely to increase.The status of both urban and rural extreme poor families is the barometer of success for Bangladesh in facing climate change and the challenges of urbanization. If the numbers of extreme poor households in climate vulnerable regions such as the coastal belt, and in the urban areas, increases there is no prospect of Bangladesh achieving Millennium Development Goal One of eradicating extreme poverty and hunger.
QUICK FACTS

Social safety nets are meant to buffer the vulnerable from external shock, but Shiree CMS2 data shows that only 10% of beneficiaries are covered by safety nets, though all are extremely vulnerable.

A recent eviction in Korail slum has left 800 of Shiree’s DSK beneficiaries in a destitute situation. They have lost homes, businesses and productive assets, with an estimated loss of 200,000-300,000 BDT.

After severe flooding in 1998, studies showed that a child living in a household exposed to the floods faced a seven times greater risk of wasting – low weight for height – than one not exposed at all.

Studies carried out after a major flood in 2004 showed that flooded households often fall into a vicious cycle of debt and roughly
a fifth of flood-hit families are pushed below the poverty line.

OTHER CHALLENGES
  1. Exclusion from public services
  2. Insufficient economic opportunities
  3. Vulnerability to external shocks
  4. Health and nutrition vulnerability
  5. Gender inequity
  6. Marginalised group specific risks and vulnerability
Expert view
One expert submitted his recommendations for action: “Vulnerabilities to external shocks is related to the development trends of the area and where they are before (i.e. their socio-economic situation) they are hit by a shock will largely dictate how they recover. What is the impact of the disaster? What is the context of the area looking at external factors? What are the climate change trends of the area and how has it affected their resiliency? The coastal belt is a good example – one of the major issues related to chronic poverty there is the impact of shrimp farming which further aggravates the natural challenges the area faces, such as by increasing salinity levels. The answer is not to ban shrimp farming, but rather to return to a more diversified livelihood approach.You have to understand the context of the area. You must have an integrative approach to addressing the issues faced by the extreme poor. The ultra poor are the first people to impacted by hazards because they usually live in disaster prone areas and they do not have the capacity to recover from hazards; one recommendation is to promote government policy to be resilient in disaster prone areas; and prepare the community to face shocks by diversifying their livelihoods.”Another expert view on how to address the vulnerabilities the extreme poor face from external shocks: “We need to look at what hazards the extreme poor face to effectively mitigate vulnerabilities. We currently only take post-disaster measures. Major shocks include natural disasters; evictions from shelter and businesses. Recommendations for action include: policy and budget for disaster prone areas should be made inclusive of the extreme poor; law against eviction from slums without securing an alternative dwelling first; targeted social protection schemes to be increased and improved and inclusive of the extreme poor – especially the disabled and elderly; communities need to be engaged in targeting the extreme poor for safety nets. In general, we need to know who the extreme poor are first by identity cards; and we need to develop an institutional framework for the extreme poor at the national level. We are looking for national level changes – policy law, institutional framework and programme budget.”
Case studies
Natural Disaster, Sidr, Aila, Tidal Surges, SalinityKamrunnahar’s parents both lost their land; her mother’s family homestead was lost to the Shibsha River and her father’s property was illegally occupied by others.  Kamrunnahar was born in 1982 and when she was three, her home was washed away by a flood. This was a difficult time for the family as they had to eat once a day with whatever they could collect. They reconstructed their house with government support.Kamrunnahar was not enrolled in school as she had to care for her brothers while her parents worked as daily labourers, paid in wheat which was inadequate to feed the family.  To help, Kamrunahar spent some time working in a fish depot, beheading shrimps, paid 1 taka per KG of fish, but this was only possible after the high tides which occurred every 15 days. In 1998, her family suffered huge losses during another flood. Their five goats were killed when the wall of their home collapsed. Again, they were destitute. In 2007, cyclone Sidr washed away Kamrunnahar’s parents’ home but they were able to save their goats and geese.They shifted to the nearby fish depot and stayed there for two months. The household became totally dependent on relief as even her brother, who drove a hired van, could not drive as all the roads were broken by the cyclone.  After Sidr, her elder brother procured a van from Delta Life Insurance on instalments. They reconstructed a house with aid money.However, their livestock and poultry died off due to the salinity of the water. In 2009, Aila struck and their home was again washed away. Kamrunnahar’s family went again to the local cyclone shelter and later on shifted to a nearby shop. Since then, they have built a home with Uttaran-shiree support, but when will disaster hit again? For the rest of this story, click here.Note: The names of individuals have been changed to protect their identity
Some examples of what is already being done
  • Shiree – NGO partners in coastal regions are working to reduce the vulnerability of their beneficiaries.

i. Shushilan promotes climatically adapted agro-based microenterprises such as floating gardens, mangrove nurseries and crab fattening.

ii. Shidhulia Swanirvar Sangstha reaches remote flood-prone villages cut off from roads via solar-powered boat. Along with agricultural assets, beneficiaries are also given low-cost solar lanterns.

iii. Dustho Shastho Kendro lobbies against unannounced evictions which threaten the livelihoods of slum dwellers.

iv. Practical Action Bangladesh promotes sand bar cropping which allows extreme poor people to make use of otherwise barren dry river beds to grow pumpkins in the summer.

  • CLP helps beneficiaries build homes on plinths to withstand the rising water levels around the chars in rainy seasons.

The above are only a few examples. There is loads of good work already taking place. If you would like to add further examples or a link to a relevant website, please contribute through the form below.

More examples of current good practices
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What should be done to address this challenge?
The following are recommendations shiree has received online and through various consultations with NGOs, private sector actors, government officials, international donors and other civil society activists interested in making a difference and bringing change to Bangladesh.

Improved Infrastructure
Embankments in the southwest coastal zone should be maintained on a regular basis. Furthermore, the bio-diversity of Sundarbans needs to be protected from further degradation. (International NGO)

Besides creating employment opportunities for the extreme poor, dredging of all rivers, haors and bils can reduce the intensity of flooding and minimize the damage of local resources of the poor and extreme poor communities. Building embankments on both sides of the dredged rivers can protect communities from flooding and also support them in agricultural production. (International NGO)

We should ensure sufficient sewage line and drainage facilities for urban areas to minimize the threat of water logging. (National NGO)

Livelihoods Diversification and Job Creation
Vulnerabilities to external shocks is related to the development trends of the area and where they are before (socio-economic situation) they are hit by a shock will largely dictate how they recover. The coastal belt is a good example – one of the major issues related to chronic poverty there is the impact of shrimp farming which further aggravates the natural challenges the area faces, such as by increasing salinity levels. You have to understand the context of the area. You must have an integrative approach to addressing the issues faced by the extreme poor. We need to return to a more diversified livelihood approach that is not only focused on shrimp farming, which has resulted in negative effects on the environment. (International NGO)

Prepare the community to face shocks by diversifying their livelihoods. (International NGO)

Coping with external shocks has shown the poor capacity of the local and national government to cope with external shocks. We need to focus on the right to work, which should be a right of the extreme poor. To mitigate the shocks, job creation is a core part of addressing that challenge. (International NGO)

Social Protection
An escalating flow of migration in Bangladesh has brought about a sea change in social and economic relations, which makes it imperative for new support systems addressing new vulnerabilities to evolve. New alliances in urban settings may be forged with people who share allegiances, cultural identities, regional belonging, etc. At the same time, social protection and service delivery programmes need to include the urban poor. (UN Agency)

NGO-supported social protection mechanisms aimed at coping with natural shocks can include introducing short-duration crops, sandbar cropping, building protection-walls (especially inhaor areas), providing the extreme poor with cash for work in seasonal crisis, improvement of rural infrastructure by raising markets, connecting roads and communities, as well as build household plinths above flood levels. (International NGO)

The local government needs more resources to use as safety nets to help the extreme poor cope with shocks. (International NGO)

Disaster Preparedness and Awareness Raising
Awareness building from household level to policy level for disaster preparedness is required. Development of disaster mitigation plan at the household level is crucial. (International NGO)

There needs to be awareness raising on preventing and protecting from fire explosions as well as an established slum-based fire fighter group that provides necessary training. (National NGO)

Establish a community-managed contingency store to respond to immediate shocks. (National NGO)

Asses and analyse the risk of natural shocks through community based participation. Train communities on disaster risk reduction. Lobby with the water development board on TRM in the southwest. (National NGO)

Educational classes or group sessions can cater toward adults and focus on how to face external shocks. (Research Centre)

Appropriate Policy
The extreme poor are the most vulnerable to repeated shocks and they often become totally dependent upon humanitarian relief.  Natural disasters often occur on such a scale that it is impossible to provide adequate mitigation measures. The construction of cyclone shelters has had an enormous impact on human survival in coastal areas in the south of the country. Recurrent flooding adjacent to the major rivers can also be predicted and mitigation measures put in place. Man-made disasters such as fires, intercommunity strife, construction disasters etc. are largely dependent upon the effective provision of infrastructure, Government services and political institutions.

The scale of the response to have an impact will require funds, effective government policies and services in all sectors. It is important that that the elimination of extreme poverty is mainstreamed into government interventions to mitigate the impact of external shocks. (Government Donor Agency)

Policy and budget for disaster prone areas should be made inclusive of the extreme poor; laws against eviction from slums without securing an alternative dwelling first need to be upheld; targeted social protection schemes should be increased and improved and inclusive of the extreme poor – especially the disabled and elderly; communities need to be engaged in targeting the extreme poor for safety nets. In general, we need to know who the extreme poor are first by identity cards; and we need to develop an institutional framework for the extreme poor at the national level.(International NGO)

The ultra poor are the first people to be impacted by hazards because they usually live in disaster prone areas and they do not have the capacity to recover from hazards.My recommendation is to promote government policy to be resilient in disaster prone areas. (International NGO)

Improved Government Response
Water logging laws were drafted and these needs to be finalized by incorporating the needs of the extreme poor. Immediate implementation of this law is also crucial. (International NGO)

Lobby with the Health Ministry to build a community-based treatment system. (National NGO)

The Government should initiate a mass tree plantation programme in disaster prone areas. (International NGO)

Insurance and Compensation
We must ensure the right to shelter among the extreme poor; and get insurance coverage among the extreme poor to face any external shocks such as eviction, fire explosion, health or other catastrophic shocks. (International NGO)

Financial institutions should provide insurance coverage for life and property loss of the extreme poor (affordable/one time/no premium) under their CSR. (Shiree)

Any eviction should be well planned along with concrete rehabilitation or compensation options. (National NGO)

Improved Care for People with Disabilities
Children with disabilities and disadvantaged are already vulnerable; when they are affected by any natural or manmade calamities, they become even more vulnerable.Therefore these children need psychosocial support, protective and safe environments at any cost. Children with disabilities and their families should be identified and provided with therapeutic and economic interventions in the coastal or disaster prone areas. (Unattributed)
Sensitive Response to Slum Evictions
The High Court ruling that “rehabilitation has to be ensured before any eviction” needs to be realized and responsibilities fulfilled. (National NGO)

Slum evictions should not be undertaken unless there are alternative areas for these people to be relocated with adequate support and services. Greater emphasis should be placed upon improved facilities within slums if it is not feasible to relocate to areas with improved services. (Government Donor Agency

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Vulnerability to external shocks

Recommendation for inclusion in the Manifesto
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