Title:
HOUSEHOLD SHOCKS AND ALTERNATIVE COPING MECHANISMS OF THE VULNERABLE POOR IN UGANDA

Authors:
Nahamya Karukuza Wilfred, Uganda

Abstract:

The paper examines the nature of household shocks, the alternative coping mechanisms and the effects to the vulnerable poor in Uganda. The paper is based on the data from a survey conducted in four districts of Eastern Uganda. These districts have been stark in poverty because of several factors but most importantly the common shocks whose effects persist to date. Methodologically, semi structured interviews, Focus Group Discussions (FGD) and Multinomial logistic regression employed used to analyze the nature of shocks, the coping mechanisms and their effects to the vulnerable poor. Thus, effective programs that are well designed and implemented,  and other consumption risk-reducing strategies need to be put in place to increase the potential welfare gains to the vulnerable poor households. The study findings show that households were substantially hit by both individual (idiosyncratic) and common (covariate) shocks in the last five years that preceded this study. The shocks had substantial welfare-reducing effects on the households. For instance drought and floods were reported by the lower welfare quintiles hence the poor were negatively more affected compared to the non-poor. The poor thus resorted to certain coping mechanisms that included: reducing consumption, sale of assets, borrowing, use of past savings and removal of children from school.  The paper recommends that government and other stakeholders in poverty need to come up with better program design aiming at proper poverty targeting and programs that support existing conventional arrangements of reducing poverty