Zimbabwe : Personal and Institutional Safety Nets - The Long-Term Consequences of Failure

Abstract

The note looks at the evidence from the Zimbabwe drought in 1994-95, and points at the effects of weather-related shocks (although often other shocks as well can drastically affect incomes), of which not all households can smooth consumption as desired. Rather, many households maintain consumption only at the expense of their long-term income possibilities - e.g., by selling off productive assets, or by reducing investments in the health or education of their children. Unfortunately, while this recuperation can be rapid for households who retained their breeding stock, those who lost their breeding stock undergo hardship in restocking their herds. This implies a barrier to economic development of the very poor, which of course also includes poor nutritional status of children, and increased child mortality rates. Of particular concern is the inadequate utilization of credit and insurance, as well as the reliability on social assistance. The note outlines the extreme effects of such weather shocks in the country, specifying results for children's development, schooling, and/or delayed entrance to school, as a consequence of nutritional gaps, preventable provided personal and institutional safety nets are effective.