As highlighted earlier, this Report is about tackling deep, systemic vulnerability and examining policies and social institutions that empower people and build stronger foundations for more-resilient people and societies. It does not attempt to identify policy fixes that respond to specific risks or to overcome inadequacies of specific systems in managing risks, such as those dealing with natural disasters. National governments have a central responsibility to help the vulnerable, especially if other institutions fail to do so, but the extent to which they meet this responsibility varies considerably. In socially cohesive societies, governments as well as social institutions tend to play a bigger role.46 Social institutions support vulnerable people where social cohesion is strong. In divided societies social institutions may be very supportive within a particular group but less so across groups. International support (official and nonofficial) also helps, with finance and resources generally in response to major disasters, say, after tsunamis, hurricanes or wars. National policies and international action are interdependent. Global rules, norms and collective action at times influence and may determine the scope and efficacy of national responses to major crises. They may even produce new vulnerabilities. Although an integrated global system has brought many benefits—fuelling investment, trade and economic growth— it has also heightened vulnerability. Shocks in one part of the world—financial, natural or otherwise—can be readily transmitted to other parts of the world. There is, as yet, no analogy at the global level to the implicit social contracts in many developed and some developing countries that commit states to protecting people’s well-being, through social insurance and unemployment benefits, when people’s economic and social circumstances are hurt. Not only individuals are vulnerable. Communities, regions and countries can also be vulnerable. Some countries suffer more and have larger shocks (economic, environmental, political) than others, and some countries are more resilient than others—better able to sustain their human development in the face of such shocks. As with individuals, poor countries are generally more vulnerable than rich ones, suffer from larger shocks and are less resilient. Compared with individuals in rich
countries, individuals in poor countries tend to be more vulnerable, to have lower social competences and to have governments with fewer resources to protect them from adversity. Governments may be aware of these issues, but markets are blind to them. The operation of markets may reduce vulnerability—by increasing production, economic growth and incomes—but they also clearly heighten vulnerability, by neglecting public goods and human insecurity in the quest for efficiency and profit. Markets must thus be regulated and supplemented if vulnerability is to be reduced. Public goods can make markets function better and deliver more sustainable outcomes, nationally and globally. So governments and social institutions have to regulate, monitor and complement the market.
Prevention, promotion and protection Policies and related measures can help in addressing the big issues that leave people and communities vulnerable in three broad areas: prevention, promotion and protection (figure 1.2). The interest here is in policies that help across the three areas and make both individuals and societies more resilient. A commitment to universal education may help in two or all three areas by enhancing individual capabilities, contributing to social cohesion and reducing deprivations. In turn, expanding the space for diverse voices to be heard—and reflected in policies—enables individuals and societies to address their particular concerns and promote equal life chances, laying the base for secure and sustained development.
Public goods can make markets function better and deliver more sustainable outcomes, nationally and globally. So governments and social institutions have to regulate, monitor and complement the market
Preventing shocks. Policies to prevent conflict, improve economic stability, reduce the impact of environmental shocks and halt the spread of disease can help reduce the incidence and size of shocks. Such national actions as having stable macro-policies, reducing disease through immunizations and reducing the likelihood of floods can help prevent shocks. By contrast, reducing global volatility in capital flows or food prices and preventing large increases in carbon dioxide emissions require collective global action. Without it, national polices may have limited value. Prevention can anticipate future trends. Take the rise in obesity. On current trends there Chapter 1 Vulnerability and human development | 25