Vulnerability and consumption smoothing in the Zone Lacustre region of Mali

This thesis explores vulnerability issues in the context of the Zone Lacustre region of Mali. Here, households face severe risks to their income. To smooth their consumption in the event that idiosyncratic shocks are realized, it is hypothesized that they engage in activities that will allow for consumption smoothing. While, it is found that idiosyncratic shocks do not have significant effects on consumption, with perhaps the exception of health shocks, these results should not necessarily lead to a conclusion that vulnerability is being mitigated in the area. The overall importance of covariate shocks and the strong evidence of substitution between consumption components show the greater hidden vulnerability of households in the area. Nevertheless, some households are found to be in relatively greater positions of vulnerability in terms of the consumption-smoothing model. Those groups without reliable irrigation, female-headed households, young headed households, small households and those whose main occupation is not based in agriculture are found to be less able to smooth their consumption and are therefore less able to access these types of mechanisms. Finally, which coping mechanisms were available in the region was explored. Local coping mechanisms were found to be inadequate at allowing households to cope with the effects of income shocks, implying again high levels of vulnerability for households in the region.