Publication:
From Risk to Resilience: Helping People and Firms Adapt in South Asia

Loading...
Thumbnail Image
Files in English
English PDF (6.03 MB)
324 downloads
Other Files
All-Charts.zip (4.04 MB)
19 downloads
Date
2025-06-03
ISSN
Published
2025-06-03
Author(s)
Abstract
South Asia is the most climate-vulnerable region among emerging market and developing economies. With governments having limited room to act due to fiscal constraints, the burden of climate adaptation will fall primarily on households and firms. Awareness of climate risks is high; more than three-quarters of households and firms expect a weather shock in the next 10 years. Climate adaptation is widespread, with 63 percent of firms and 80 percent of households having taken action. However, most rely on basic, low-cost solutions rather than leveraging advanced technologies and public infrastructure. Market imperfections and income constraints limit access to information, finance, and technologies needed for more effective adaptation. If these obstacles were removed, private sector adaptation could offset about one-third of the potential damage from rising global temperatures on South Asian economies. The policy priority for governments is therefore to facilitate private sector adaptation through a comprehensive policy package. The package includes climate-specific measures such as improving weather information access, promoting resilient technologies and weather insurance, and investing in protective infrastructure in a targeted manner. Equally important are broader developmental initiatives with resilience co-benefits: in other words, policies that generate double dividends. These include strengthening core public goods like transportation, water systems, and healthcare; addressing barriers to accessing markets, inputs, and finance without causing unintended responses that increase vulnerabilities; and supporting vulnerable groups through shock-responsive social protection.
Link to Data Set
Citation
Lang, Megan; Rexer, Jonah; Sharma, Siddharth; Triyana, Margaret, editors. 2025. From Risk to Resilience: Helping People and Firms Adapt in South Asia. Conference Edition. © World Bank. http://hdl.handle.net/10986/43230 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Citations

Related items

Showing items related by metadata.

  • Publication
    Valuing Climate Adaptation Helps Us Orient Our Compass Toward Effective and Resilient Pathways
    (Washington, DC: World Bank, 2024-05-23) World Bank
    The impacts of climatic shocks are already being felt across Europe and are bound to intensify in line with further climate change. Even rapid and far-reaching progress on decarbonization cannot avoid the extent of climate change that is already locked in due to past emissions. These trends call for urgent climate adaptation investment strategies that can prepare countries for a wide range of climate hazards and their complex impacts across communities and economic sectors. However, formulating concrete investment strategies can be challenging as adaptation needs are vast and difficult to estimate. To overcome this challenge, this report reviews evidence-based prioritization and costing approaches and illustrates their application in a series of case studies. These approaches can support policy makers in identifying bankable and effective adaptation investments, raising and allocating adequate financing, and thus ultimately facilitating more effective climate change adaptation across Europe.
  • Publication
    Understanding the Business Environment in South Asia : Evidence from Firm-Level Surveys
    (World Bank, Washington, DC, 2012-08) Carlin, Wendy; Schaffer, Mark
    This paper examines the relationship between firm performance and growth and the business environment in the countries of the South Asia Region -- Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka -- using firm-level data from the World Bank's Enterprise Surveys. The analysis uses an approach in which the responses of firms to questions about the quality of the business environment can be interpreted as shadow prices: estimations by managers of the cost imposed on the firm by inadequacies of an aspect of the business environment -- public inputs such as regulation, physical infrastructure, availability of skilled labor, macroeconomic conditions, rule of law, etc. -- for the growth of their firm. The analysis finds, in line with this approach, that higher-productivity and better-performing firms in the region, and in particular firms that recently expanded their employment and created jobs, report significantly higher constraints in terms of the supply of public inputs. The authors discuss the differences across countries in the importance of various industries, how they relate to various firm characteristics, how informal and rural sector firms are constrained by public inputs, and how firms in the South Asia Region countries compare with firms in the rest of the world.
  • Publication
    Can Financial Markets be Tapped to Help Poor People Cope with Weather Risks?
    (World Bank, Washington, D.C., 2002-03) Skees, Jerry; Varangis, Panos; Larson, Donald; Siegel, Paul
    Poor households in rural areas are particularly vulnerable to risks that reduce incomes and increase expenditures. Most past research has focused on risk-coping strategies for the rural poor, specially on micro-level and household actions. These are risks that can been shared within a community or extended family. These strategies are effective for independent risks, but ineffective for covariate or systemic risks. The authors focus on private and public mechanisms for managing covariate risk for natural disasters. When many households within the same community face risks that create losses for all, traditional coping mechanisms are likely to fail. Such covariate risks are not uncommon in many developing countries, especially where farming remains a major source of income. The authors focus on risks related to weather events (such as excess rain, droughts, freezes, and high winds) that have a severe impact on rural incomes. Weather insurance could cover the covariate risk for a community of poor households through formal and informal risk-sharing arrangements among households that are purchasing these weather contracts. Given recent Mexican innovations targeted at helping the poor cope with catastrophe weather events, the authors use Mexico as a case study. In Mexico, poor households are exposed to systemic risks, such as droughts and floods, that affect the economic livelihood of their region. Catastrophic insurance is useful for small farmers, although commercially oriented small farmers may wish to obtain coverage for less catastrophic events. Weather insurance could meet this need. It pays out according to the frequency and intensity of specific weather events. Because weather insurance depends on the occurrences and objective measure of intensity of a specific event, it does not require individual farm inspection that can be very costly for small farm. The authors argue that a key issue of delivering insurance to small farmers is the existence of producer organizations. In Mexico, the farmer mutual insurance funds provide a good example. These funds provide insurance to their members by pulling together resources to pay for future indemnities and reinsures itself from major systemic risks that could hurt simultaneously all their members.
  • Publication
    Poor People's Knowledge : Helping Poor People to Earn from Their Knowledge
    (World Bank, Washington, DC, 2004-02) Finger, J. Michael
    How can we help poor people to earn more from their knowledge rather than from their sweat and muscle? This paper draws lessons from projects intended to promote and protect the innovation, knowledge, and creative skills of poor people in poor countries, particularly to improve the earnings of poor people from such knowledge and skills. The international community has paid considerable attention to problems associated with intellectual property that poor countries buy-such as the increased cost of pharmaceuticals brought on by the WTO's agreement on the Trade Related Aspects of Intellectual Property (TRIPS). This paper is about the other half of the development-intellectual property link. It is about the knowledge poor people own, create, and sell rather than about what they buy. The paper calls attention to a broad range of poor people's knowledge that has commercial potential. It highlights the incentives for and concerns of poor people-which may be different from those of corporate research, northern nongovernmental organizations, or even entertainment stars from developing countries who already enjoy an international audience. The studies find that increased earnings is sometimes a matter of poor people acquiring commercial skills. Legal reform, though often necessary, is frequently not sufficient. Moreover, the paper concludes that the need for novel legal approaches to protect traditional knowledge has been overemphasized. Standard instruments such as patents and copyrights are often effective. Rather than legal innovation, there is a need for economic and political empowerment of poor people so that they have the skills to use such instruments and the influence to insist that institutional structures respond to their interests. Finally, the paper concludes that there is minimal conflict between culture and commerce. There are many income-earning expressions of culture, and it is incorrect to presume that expressions of culture must always be income-using.
  • Publication
    Helping South Asia Cope with Natural Disasters : The Role of Social Protection
    (Washington, DC, 2007-09) World Bank
    Addressing the social protection needs of households during emergencies is a major development issue. Without social protection measures, such as cash transfers for basic needs or workfare programs, many households faced with large economic and natural shocks might deplete their human and physical capital, reducing their ability to participate in economic development. Social protection measures (cash transfers, in particular) are therefore assuming a growing role in the World Bank to help the poor cope with the aftermath of a disaster. In South Asia, all three recent major emergency-related operations in South Asia (Sri Lanka, Maldives, and Pakistan) included cash transfers components. This discussion paper, an input to the South Asia region's social protection and hazard risk management strategies, describes the cash transfer instruments supported by the Bank in South Asia, evaluates their design and implementation, and suggests improvements to increase their effectiveness. Based on available evidence, the paper finds that cash transfers appear to have performed well in providing relief to affected households, suggesting that they should remain an integral part of Bank-financed support for natural disasters. The paper also suggests that the Bank can ensure timely and high-quality support through a best-practice design toolkit, a right-on-time technical assistance facility, and by integrating social protection in emergency preparedness by building the capacity of national social assistance (cash transfers) agencies to respond to natural disasters. Although the focus is on cash transfers, the note also discusses other types of social protection mechanisms used in emergencies in South Asia and worldwide, e.g., workfare or social care for the vulnerable, and which might also appropriate for including in Bank emergency operations. The note covers South Asia, but lessons from this region may also be relevant for governments of other developing countries and donors. Finally, while the focus of the paper is on social protection instruments for natural disasters, several of these instruments have also proved useful in post-conflict situations and in economic crises.

Users also downloaded

Showing related downloaded files

No results found.