PUSHING THE LIMITS
Vulnerable households have learned to become immensely resourceful in finding ways to survive
with less in hard times. Options are often so few that households are sacrificing long-term prospects
for day-to-day survival. This choice is never made lightly, as the story of Nesar Uddin, a rickshaw driver in
Bangladesh, illustrates:
"Despite working harder these days, I am struggling to provide for my family. Due to the price rise recently,
I am now pulling my rickshaw for at least eight hours a day...I know that if I can save some money, then I can
continue the education of my children. And unless we continue the education of our children, they won’t be
able to do anything for the family and the country in the future. Yet, saving like this is really difficult in the
present situation. I think that I need to find some way of earning money other than by my rickshaw because
I can’t maintain my family with just half a day’s income. If I cannot do this, then we have no choice."2020
What we see in today’s multiplier effect of the crises is that – in contrast to previous shocks – many vulnerable
and poor households seem to be reaching the limits of their coping strategies. The margin left to deal with the
consequences of the economic recession without risking longer-term negative costs is decreasing. As in previous
crises, women and children bear the brunt of household adjustments.
Options for finding new or additional employment are dwindling. Given increasingly competitive labour
markets, both in the formal and informal sectors, many individuals report that they are finding themselves in
poor negotiating positions with employers or middlemen when seeking additional or new income earning
opportunities. Anecdotal evidence suggests that there has been a rise in worker exploitation by unscrupulous
employers. Women are particularly vulnerable.
Households are cutting their costs to the bare minimum, often
having to further reduce basic expenditures. Case study after
case study shows that more and more households are switching to
cheaper diets with less preferred foods. Some households also report
a reduction in the number of meals they consume each day. Domestic
food prices in many countries continue to be tenaciously high. The
consequences are immediate and stark: 100 million more people
have become undernourished in the last year alone.21 This number
could further swell.
"The financial crisis has affected our
eating habits. We are having food
that is literally made in water. We are
able to eat Chapattis once in four days
only. Most of the time we have to skip
lunch and sustain only on breakfast…
On some days, we go to sleep at night
without having any meals."
22
Men – but especially women – are reportedly walking long distances
to collect wild fruits and vegetables. The poaching of wild animals has
also been reported. Past experience and emerging evidence show
that these types of wild food sources are quickly depleted, and increased
scarcity can be the source of greater conflict. In addition, eating
wild animals has in the past been associated with the spread of
life-threatening diseases, such as Ebola and anthrax.
Households are digging themselves deeper into debt. There
are numerous accounts of increased and multiple borrowing, often
at exorbitant rates. Begging seems to be on the rise in many parts of
the world. In addition, there are signs that in a few cases families are
being forced to sell off productive assets.
With everyone in trouble, the family and community safety
net is tearing. Slightly ‘better off’ people who in the past had been
able to implement positive coping strategies – such as diversifying
product ranges or looking for new markets – no longer seem to have
these options.
José, owner of a medium-sized leather
workshop in Nicaragua, explains that
the crisis has hit him "in the sales,
because I live from my sales. But I say
to myself, I have to look for alternatives
to go forward. How? Well, by looking
for new ideas so that my products can
be sold in two or three different places,
to look for another style, other forms,
other places where I can sell my things.
And those things are scarce under these
circumstances and these subhuman
conditions we are living in."
23
Community-based and other non-governmental organizations still
may have some resources to support those in need. However, their
capacities are increasingly being drained as they too feel the impact
of the global economic crisis.
The past suggests that individuals and households who experience
even short periods of vulnerability or poverty may never recover. They
continue to suffer long after global and national indictors signal a
return to economic growth and stability. At this point, the data on all
of these dynamics is sketchy.
