Risk-spreading strategies and vulnerability to poverty among rural households : The case of Tsianda village in Makhado Municipality, L impopo Province

Abstract

Rural households have always faced a variety of risks which rendered them vulnerable to poverty; hence, they have continuously adopted different risk-spreading strategies aimed at reducing and/or de-concentrating the risks that they face. However, there is always a chance that risk-spreading strategies adopted by rural households could intensify or increase the levels of vulnerability to poverty, because most of them are too informal and ineffective. The study examines different risks that households in the rural areas face, including their implication for levels of vulnerability to poverty. The effects of risk-spreading strategies on household level of vulnerability are analysed using a sample of 100 households from Tsianda village. The survey results reflect that a variety of risks faced in the village have a cumulative effect on households’ vulnerability to poverty. However, the risk-spreading strategies appear to be more helpful for the better-off households than for the poor, because the former experience short-term risks whereas the latter face apparently multiple perpetual risks. The village’s political, social, economic, cultural, institutional, technological and environmental contexts seem to perpetuate the status quo against the efforts of the poor households. The study concludes that the political,social, economic, cultural, institutional, technological and environmental contexts in the rural area have a huge impact on the concentration of risks that households face, the risk-spreading that they adopt and also their level of vulnerability to poverty. Hence, the poorer households’ risk-spreading strategies are not effective to reduce and de-concentrate the risks; moreover theyintroduce them to new risks and high level of vulnerability to poverty.