Ravallion, Martin2012-05-212012-05-212008-10https://hdl.handle.net/10986/6288While the 2008 financial crisis is global in nature, it is likely to have heterogeneous welfare impacts within the developing world, with some countries, and some people, more vulnerable than others. It also threatens to have lasting impacts for some of those affected, notably through the nutrition and schooling of children in poor families. These features point to the need for a differentiated social policy response, aiming to provide rapid income support to those in most need, while preserving the key physical and human assets of poor people and their communities. The paper points out some mistakes in past crisis responses and identifies key design features for safety net programs that can help compensate for the likely welfare losses in the short-term while also promoting longer-term recovery.CC BY 3.0 IGOADMINISTRATIVE COSTADMINISTRATIVE COSTSAGRICULTURAL TECHNOLOGIESANTI-POVERTYANTI-POVERTY PROGRAMANTI-POVERTY PROGRAMSANTIPOVERTY PROGRAMASSET DISTRIBUTIONBENEFICIARIESBENEFIT LEVELBENEFIT LEVELSCASH TRANSFERCASH TRANSFERSCHILD GROWTHCHILD HEALTHCHILD LABORCHRONIC POVERTYCITIZENSCOMMUNITY GROUPCOMMUNITY GROUPSCOMMUNITY PROJECTSCOMMUNITY WORKSCONDITIONAL CASHCOPING STRATEGIESCOST-EFFECTIVENESSCOUNTERFACTUALCULTURAL CHANGEDEBTSDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT GOALSDEVELOPMENT POLICYDROUGHTDURABLE ASSETSDYNAMIC POVERTYEARLY CHILDHOODEARNINGSECONOMIC ACTIVITYECONOMIC COSTECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC SHOCKSEGSEMPLOYMENT GUARANTEEEMPLOYMENT GUARANTEE SCHEMEEXTERNAL AIDEXTERNAL SHOCKEXTRA CASHEXTREME POVERTYFAMILY SIZEFAMINEFARM HOUSEHOLDSFARMERSFIGHT AGAINST POVERTYFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SECTORSFINANCIAL SYSTEMFOOD ITEMSFOOD POLICYFOOD PRICESFOOD SUBSIDIESFOOD-FOR-EDUCATIONFOREIGN INVESTMENTFULL EMPLOYMENTFUTURE INCOMESGLOBAL MARKETSHEALTH CAREHIGH INEQUALITYHOUSEHOLD WELFAREHUMAN ASSETSHUMAN RESOURCESIDIOSYNCRATIC RISKIDIOSYNCRATIC SHOCKSIMPACT ON POVERTYINCOMEINCOME DISTRIBUTIONINCOME GAINSINCOME GROUPSINCOME LOSSESINCOME POVERTYINCOME SUPPORTINCREASE IN INCOMEINDICATOR TARGETINGINEQUALITYINFANTINFANT MORTALITYINFLATIONINFORMATION SYSTEMSINSURANCEINTERNATIONAL FOOD POLICYINTERNATIONAL FOOD POLICY RESEARCH INSTITUTEINVESTMENT DECISIONSKIDSLABOR FORCELABOR MARKETSLABOR SUPPLYLENDERSLIVING CONDITIONSLIVING STANDARDSLOCAL COMMUNITIESLOCAL COMMUNITYLOCAL GOVERNMENTSLOW INCOMELOW-INCOME COUNTRIESMACROECONOMIC STABILITYMAIN ANTI-POVERTY PROGRAMMALNUTRITIONMARGINAL TAX RATEMARKET ECONOMIESMARKET FAILURESMARKET WAGEMEANS TESTMEANS TESTINGMINIMUM WAGEMINORITYMONETARY POLICIESMORAL HAZARDMUTUAL INSURANCENATIONAL COVERAGENATURAL DISASTERSNEW DEALNUTRITIONAL STATUSPERSISTENT POVERTYPOLICY DISCUSSIONSPOLICY MAKERSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLICY RESPONSEPOLITICAL ECONOMYPOLITICAL SUPPORTPOORPOOR AREASPOOR COMMUNITIESPOOR COUNTRIESPOOR FAMILIESPOOR HOUSEHOLDPOOR HOUSEHOLDSPOOR NUTRITIONPOOR PEOPLEPOOR RURAL HOUSEHOLDSPOORER PEOPLEPOPULATION AND DEVELOPMENTPOVERTY GAPPOVERTY IMPACTPOVERTY INCIDENCEPOVERTY LINEPOVERTY MAPPOVERTY MAPSPOVERTY RATEPOVERTY REDUCTIONPOVERTY TRAPSPRIMARY SCHOOLPRIVATE TRANSFERSPRODUCTIVE ASSETSPRODUCTIVITYPROGRESSPUBLIC ACTIONPUBLIC GOODSPUBLIC KNOWLEDGEPUBLIC SAFETY NETPUBLIC SAFETY NETSPUBLIC SPENDINGPUBLIC WORKSPUBLIC WORKS PROGRAMSRAPID GROWTHRECESSIONSRECIPROCITYRESOURCE CONSTRAINTSRESPECTRESPONSE TO CRISESRISKY BEHAVIORRURALRURAL AREASRURAL DEVELOPMENTRURAL EMPLOYMENTRURAL FAMILIESRURAL POORRURAL ROADSSAFETY NETSAFETY NET PROGRAMSSAFETY NETSSAVINGSSAVINGS RATESSCHOOL ATTENDANCESECONDARY SCHOOLSECONDARY SCHOOL LEVELSELF-INSURANCESHOCKSOCIAL POLICYSOCIAL PROTECTIONSOCIAL SAFETY NETSOCIAL SAFETY NETSSOCIAL SECURITYSOCIAL SPENDINGSTOCKSSUBSIDIZINGTARGETINGTAXATIONTECHNICAL ASSISTANCETEENAGERSTRANSFER BENEFITSTRANSFER PAYMENTTRANSFER PROGRAMTRANSFERS IN CASHTRANSIENT POVERTYUNEMPLOYMENTUNEMPLOYMENT RATESUNINSURED RISKURBAN POPULATIONSVICTIMSWAGE RATEWAGE RATESWAGE WORKWAGESWEALTH INEQUALITYWEATHER RISKSWITHDRAWALWORK PROGRAMWORK PROGRAMSWORK REQUIREMENTWORK REQUIREMENTSWORKFAREWORKFORCEWORKS PROJECTWORKS PROJECTSWORTHYOUNG CHILDRENWorld Bank10.1596/1813-9450-4763