Impact Of Drought On Poverty In Somalia

Author: Utz Pape and Philip Wollburg

Year: 2019

Category: Corporate Reports

Abstract

The impact of adverse climatic, and other, income shocks on household and individual welfare in developing countries is an issue of considerable policy interest. Understanding the magnitude and importance of income shocks in causing and perpetuating poverty is critical to designing measures aimed at building resilience, contributing towards the goal of ending poverty. A growing body of literature provides empirical evidence of the micro‐level impacts of adverse shocks in developing countries. Dercon and Krishnan (2000), Dercon (2004), and Porter (2012) find that weather shocks have a negative and longlasting effect on consumption outcomes in rural Ethiopia. Hill and Porter (2016) and Makoka (2008) show that drought and price shocks reduce consumption and especially farm income, while increasing vulnerability to poverty in rural Ethiopia and Malawi, respectively. Similarly, Alem and Soderbom (2012) conclude that high food prices adversely affect households in urban Ethiopia, especially those relying on casual work and with low asset levels. Hill and Mejia‐Mantilla (2017) find negative effects of drought, conflict, and prices on poverty levels in Uganda, and Pape and Parisotto (forthcoming) find a large and significant impact of conflict on poverty in South Sudan. Hoddinott and Kinsey (2001) and Alderman et al. (2006) show the causal relation between rainfall shocks and reduced human capital formation.

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