FOR 756: Impact of Shocks on the Vulnerability to Poverty: Consequences for Development of Emerging Southeast Asian Economies

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While the economics of poverty has advanced during recent years and now better captures the true complexity of the poverty phenomena in developing countries, static poverty measures based on cross-sectional data are still in widespread use, in spite of their limited usefulness in describing the long-term welfare situation of the poor. To date, still more than one billion people live below the international poverty line, i.e. are poor at any point in time, but a much larger number of people face temporary poverty or are at risk of falling into poverty. Combined with growing uncertainty in the ecological, economic and political environment, this calls for the development of dynamic concepts of poverty in the context of risks, shocks and vulnerability.