Reducing inequality by preventing disaster-induced poverty through adaptive social protection
With disasters becoming more frequent and severe, G20 countries need to reduce poverty and address inequality. Linking social safety nets to disaster risk management can protect vulnerable groups and promote resilience.
Introduction: How disasters exacerbate poverty and inequality
Environmental risks, including the failure to mitigate climate change and the increase in natural-induced disasters, are the biggest threats to the world in the coming decade. In 2021, 367 major disasters affected 127 countries, resulting in 10 492 deaths, displacing 104 million people and causing $252 billion in direct economic losses. Asia suffered the highest number of disasters at 40.87%, followed by North America, Africa and South America, and Europe.
Low-income communities in both developing and high-income countries bear the greatest burdens in this regard. The majority (90%) of fatal disasters occur in low-income countries. The impact varies widely across regions, while individual wealth, community infrastructure and political stability determine the severity of disasters, which tend to exacerbate existing social inequalities. The ability of poor communities to recover from disasters is hampered by their limited access to social protection, financial assistance and essential services.
The most vulnerable populations suffer the most from disasters. Families with few resources and living in high-risk areas find it difficult to recover because they have no insurance or savings. Without financial safety nets, many disaster-affected households fall into chronic debt and economic instability. Disasters also reinforce gender inequalities, as recovery efforts, financial assistance and decision-making power are often out of reach for women, children and other vulnerable groups.
Given these conditions, an adaptive social protection (ASP) strategy is needed. The approach goes beyond basic poverty reduction methods by combining social assistance with insurance and labour market programmes linked to disaster risk management.
This issue is relevant to the G20 agenda, which has repeatedly underscored the importance of inclusive, shock-responsive and adaptive social protection, as highlighted in the 2023 G20 Action Plan and by the 2022 Indonesian presidency. However, implementation has remained fragmented and inconsistent. The 2024 G20 Summit in Brazil provided renewed momentum through the launch of the Global Alliance Against Hunger and Poverty and support for early warning systems. To achieve lasting impact, the 2025 presidency must institutionalise ASP as a foundation for resilient and equitable global governance, as mentioned in the Issue Note of the Development Working Group.
The role of adaptive social protection in building household resilience
Preventive measures: Strengthening household preparedness before disasters
Preventive strategies work to reduce households’ exposure to risks while preparing them for unexpected events that may occur.
Universal health coverage and social protection expansion, combining health services with expanded social security programmes, minimise the long-term economic threats posed by disasters.
Implementing disaster risk education along with capacity-building programmes trains people to cope with financial emergencies during disasters.
Governments can reduce overall poverty risks by implementing preventive measures that strengthen disaster preparedness programmes.
Absorptive measures: Coping during disasters through immediate support
Absorptive measures provide emergency financial and material support to disaster-affected populations to help them cope with immediate shocks.
Scaling up social protection programmes with shock-responsive cash transfers and in-kind assistance enables households to avoid extreme poverty through emergency cash and food assistance and temporary shelter.
Health and psychosocial support services, by combining emergency medical care with mental health support and mobile clinics, help reduce health crises in disaster-affected areas.
Absorptive measures prevent families from resorting to harmful coping strategies, such as selling assets or taking out high-interest loans, which can prolong poverty.
Adaptive measures: Promoting long-term recovery and economic stability after disasters
The post-emergency phase enables communities to achieve sustainable recovery through long-term development.
The government should provide sustained support for housing reconstruction, especially for low-income citizens.
Strengthening disaster-resilient public facilities, including schools, hospitals and public utilities, builds community resilience to future disasters.
Adaptation measures help communities recover while strengthening their resilience, which in turn reduces their vulnerability to new disasters and ends the pattern of disaster-induced poverty.
Conclusion: A call for stronger commitments from G20 countries
As disasters become more frequent and destructive, G20 countries need to adopt ASP as their main approach to reducing poverty while reducing inequality. Governments that link social safety nets to disaster risk management systems protect vulnerable groups while preventing economic collapse and building lasting resilience.
Achieving this goal requires investment in the ASP approach. Governments need to establish social protection systems that combine flexibility with inclusiveness and are adequately funded to provide effective disaster response.
G20 countries must take the lead in creating a future where disasters trigger sustainable recovery rather than pushing people into poverty as climate risks continue to grow.
* The views expressed in T20 blog posts are those of the author/s.
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Commentary
Reducing inequality by preventing disaster-induced poverty through adaptive social protection
With disasters becoming more frequent and severe, G20 countries need to reduce poverty and address inequality. Linking social safety nets to disaster risk management can protect vulnerable groups and promote resilience.
Introduction: How disasters exacerbate poverty and inequality
Environmental risks, including the failure to mitigate climate change and the increase in natural-induced disasters, are the biggest threats to the world in the coming decade. In 2021, 367 major disasters affected 127 countries, resulting in 10 492 deaths, displacing 104 million people and causing $252 billion in direct economic losses. Asia suffered the highest number of disasters at 40.87%, followed by North America, Africa and South America, and Europe.
Low-income communities in both developing and high-income countries bear the greatest burdens in this regard. The majority (90%) of fatal disasters occur in low-income countries. The impact varies widely across regions, while individual wealth, community infrastructure and political stability determine the severity of disasters, which tend to exacerbate existing social inequalities. The ability of poor communities to recover from disasters is hampered by their limited access to social protection, financial assistance and essential services.
The most vulnerable populations suffer the most from disasters. Families with few resources and living in high-risk areas find it difficult to recover because they have no insurance or savings. Without financial safety nets, many disaster-affected households fall into chronic debt and economic instability. Disasters also reinforce gender inequalities, as recovery efforts, financial assistance and decision-making power are often out of reach for women, children and other vulnerable groups.
Given these conditions, an adaptive social protection (ASP) strategy is needed. The approach goes beyond basic poverty reduction methods by combining social assistance with insurance and labour market programmes linked to disaster risk management.
This issue is relevant to the G20 agenda, which has repeatedly underscored the importance of inclusive, shock-responsive and adaptive social protection, as highlighted in the 2023 G20 Action Plan and by the 2022 Indonesian presidency. However, implementation has remained fragmented and inconsistent. The 2024 G20 Summit in Brazil provided renewed momentum through the launch of the Global Alliance Against Hunger and Poverty and support for early warning systems. To achieve lasting impact, the 2025 presidency must institutionalise ASP as a foundation for resilient and equitable global governance, as mentioned in the Issue Note of the Development Working Group.
The role of adaptive social protection in building household resilience
Preventive measures: Strengthening household preparedness before disasters
Preventive strategies work to reduce households’ exposure to risks while preparing them for unexpected events that may occur.
Governments can reduce overall poverty risks by implementing preventive measures that strengthen disaster preparedness programmes.
Absorptive measures: Coping during disasters through immediate support
Absorptive measures provide emergency financial and material support to disaster-affected populations to help them cope with immediate shocks.
Absorptive measures prevent families from resorting to harmful coping strategies, such as selling assets or taking out high-interest loans, which can prolong poverty.
Adaptive measures: Promoting long-term recovery and economic stability after disasters
The post-emergency phase enables communities to achieve sustainable recovery through long-term development.
Adaptation measures help communities recover while strengthening their resilience, which in turn reduces their vulnerability to new disasters and ends the pattern of disaster-induced poverty.
Conclusion: A call for stronger commitments from G20 countries
As disasters become more frequent and destructive, G20 countries need to adopt ASP as their main approach to reducing poverty while reducing inequality. Governments that link social safety nets to disaster risk management systems protect vulnerable groups while preventing economic collapse and building lasting resilience.
Achieving this goal requires investment in the ASP approach. Governments need to establish social protection systems that combine flexibility with inclusiveness and are adequately funded to provide effective disaster response.
G20 countries must take the lead in creating a future where disasters trigger sustainable recovery rather than pushing people into poverty as climate risks continue to grow.
* The views expressed in T20 blog posts are those of the author/s.
16 Jul 2025
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