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Strengthening Public Safety Nets from the Bottom Up
Author(s) -
Morduch Jonathan,
Sharma Manohar
Publication year - 2002
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/1467-7679.00190
Subject(s) - vulnerability (computing) , psychological intervention , business , social protection , social insurance , coping (psychology) , public economics , public relations , economic growth , economics , political science , computer security , computer science , market economy , psychology , psychiatry
Helping to reduce vulnerability poses a new set of challenges for public policy. A starting point is understanding the ways in which communities and extended families try to cope with difficulties in the absence of public interventions. Coping mechanisms range from the informal exchange of transfers and loans to more structured institutions that enable an entire community to provide protection to its neediest members. This article describes ways of building public safety nets to complement and extend informal and private institutions. The most effective policies will combine transfer systems that are sensitive to existing mechanisms with new institutions for providing insurance and credit and for generating savings.