Shocks and Household Welfare in Sudan
The Sudanese economy has faced several shocks over the years, sometimes resulting in devastating impacts on the economy and the welfare of Sudanese households. The sources of these shocks vary, ranging from weather-related shocks such as droughts a...
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| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/970701628490300157/Shocks-and-Household-Welfare-in-Sudan http://hdl.handle.net/10986/36099 |
| Summary: | The Sudanese economy has faced several
shocks over the years, sometimes resulting in devastating
impacts on the economy and the welfare of Sudanese
households. The sources of these shocks vary, ranging from
weather-related shocks such as droughts and floods to the
global financial crisis and commodity price hikes. In the
absence of effective social protection programs, exposure of
households to frequent shocks lowers their ability to escape
poverty, pushing households slightly above the poverty line
back into poverty and sliding poor households deeper into
poverty. This paper applies this framework to examine the
impact of shocks on the welfare of Sudanese households and
explore coping strategies typically utilized by households
to mitigate the negative effects of shocks. The paper uses
the 2009 National Baseline Household Survey (NBHS) and the
2014-15 National Household Budget and Poverty Survey (NHBPS)
to document the main types of shocks that Sudanese
households are exposed to and describe the profile of
Sudanese households likely to be vulnerable and/or resilient
to shocks. To complement this analysis, the paper uses the
most recent round of the data collected in 2014/15
(containing information on idiosyncratic shocks) together
with data on covariate shocks such as rainfall and conflict
obtained from other sources to estimate the impact of shocks
on household welfare. Since the impact of shocks on
household welfare is likely to be multidimensional, various
indicators of household welfare such as consumption, poverty
status, assets, dietary quality, and diversity are
considered in the paper. Results from the analysis are used
to highlight the state of social protection in Sudan and
discuss the need for an expansion of the existing system. |
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