Vulnerability and social risk management in India and Mexico

Abstract

The development of effective community, regional and national risk-management strategies, especially for systemic risks, such as natural disasters, entails understanding the determinants of social vulnerability in individuals and groups, and the factors that foster the adoption of specific mechanisms of risk management and, thus, the elements that supports an efficient implementation process. This thesis contributes to this understanding in the context of communities in developing countries by using data from surveys conducted in the district of Kalahandi, state of Orissa, India, and three municipalities in Mexico, each with a different level of socioeconomic development: Villaflores, Chiapas; Ahome, Sinaloa; and Valle de Santiago, Guanajuato. Using regression modeling of binary response variables, I tested the statistical association between the adoption of formal social risk-management and a number of endogenous and exogenous household characteristics. The results indicate that the likelihood of adoption of formal risk-management strategies increases with the level of the household's association, i.e., its affiliation with local groups; in addition, proximity to roads, financial services and urban-mixed use areas (markets), is less strongly correlated with the likelihood of adoption of risk-management strategies than the level of association, particularly in less-developed environments. These findings are robust to a variety of socioeconomic and demographic characteristics and environmental contexts. Keywords: risk, social risk management, social capital, vulnerability