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Shock-responsive social protection and climate shocks in Latin America and the Caribbean: Lessons from COVID-19

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  • Costella, Cecilia
  • Diez, Ana
  • Beazley, Rodolfo
  • Alfonso, Mariana

Abstract

Latin America and the Caribbean (LAC) is one of the regions most exposed and vulnerable to climate-related risks, with large shocks occurring regularly. Climate change is exacerbating the frequency and variability of climate related extremes and increasing slow onset events, threatening social and economic outcomes in the region. Responding to climate change will require stronger risk management systems that include social protection. Social protection systems in LAC are relatively advanced, but they do not yet consider climate shocks. Overall, social protection systems suffer from relatively low coverage, leaving significant parts of the population vulnerable to transient and chronic poverty in the face of shocks. The large social protection responses that LAC implemented to address the impacts of COVID-19 present an opportunity to prepare for the challenges arising from increased climate-related shocks. This study investigates how non-contributory social protection (mainly income support) has been used to respond to previous climate-related shocks and to COVID-19, and what are the implications for managing climate-related shocks in the future.

Suggested Citation

  • Costella, Cecilia & Diez, Ana & Beazley, Rodolfo & Alfonso, Mariana, 2023. "Shock-responsive social protection and climate shocks in Latin America and the Caribbean: Lessons from COVID-19," IDB Publications (Working Papers) 12699, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:12699
    DOI: http://dx.doi.org/10.18235/0004740
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    References listed on IDEAS

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    1. Díaz-Bonilla, Eugenio & Piñeiro, Valeria & Laborde Debucquet, David, 2021. "Honduras: The impact of COVID-19 and preliminary policy implications: Interim report," LAC working papers 17, International Food Policy Research Institute (IFPRI).
    2. Kathy Lindert & Tina George Karippacheril & Inés Rodriguez Caillava & Kenichi Nishikawa Chavez, 2020. "Sourcebook on the Foundations of Social Protection Delivery Systems," World Bank Publications - Books, The World Bank Group, number 34044.
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    Cited by:

    1. Missbach, Leonard & Steckel, Jan Christoph & Vogt-Schilb, Adrien, 2024. "Cash transfers in the context of carbon pricing reforms in Latin America and the Caribbean," World Development, Elsevier, vol. 173(C).

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    More about this item

    Keywords

    shock-responsive; Social protection; Cash transfers; climate change; Latin America; Caribbean;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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