World Food Policy Volume/Issue 2-2/3-1 Fall 2015/Spring 2016 | Page 93

World Food Policy

Figure 2b: Average loss from shocks by category (in %)
Source: Bühler et al. (2015b)

other shocks is mainly due to high extra
expenditures, especially for medical
treatments. However, since the frequency
of these two categories is low, the overall
impact of these shocks is relatively low.
Both the share and the average value of
extra expenditures from demographic
shocks exceed the income and asset
losses associated with agricultural and
economic shocks. Economic shocks are
associated with ~60% income loss. But
again, the frequency of economic shocks
is comparatively low.

Households were also asked
about the coping strategies they employ
after they have been affected by a
shock. In 57% of the cases, households
responded that they did not adopt
any specific coping strategy (Table
5). Households use economic coping
activities mainly to counteract the effect

of economic and agricultural shocks.
These include activities such as labor
and crop diversification, reducing
inputs for production, or increasing
natural resource extraction. The most
frequently used coping strategy to offset
particularly demographic shocks is to
rely on borrowing or own savings. Since
demographic shocks are mostly related
to health issues, it is straightforward that
in these cases, money is needed fast to
pay for medical treatment. Grants appear
to only play a role in the context of
social shocks. Furthermore, households
indicate that they do not change their
food consumption habits to cope with
any shock. Demographic coping activities
such as migrating or sending children
or adult family members to live with
relatives and friends are also negligible
(Bühler et al. 2015b).
93