International Program of Collaborative Research, CSEAS

A Socio-economic Study on Risk-pooling Mechanism in Rural Cambodia
Project Leader: FUKUI, Seiichi, Graduate School of Agriculture, Kyoto University
（Term：2010 - 2011）

• Outline of Joint Research
• Purpose of Joint Research
• Outline of Result

• Joint Seminars in 2010-2011 Fiscal Year

Outline of Joint Research

In the less developed countries, people usually make arrangements for some mechanisms to cope with various unpredicted shocks such as serious illness, injury, crop failure and sudden unemployment and so forth.

This study will analyze the roles of “social network”, “community based fund raising activity; Sangaha-tine”, and “remittance from family members” in the risk-pooling of the poor households who face the above-mentioned shocks in rural Cambodia, using data collected by household survey and field experiments.

For this purpose, we plan to conduct a field survey in Kompong Speu province and Takeo province.

Purpose of Joint Research

Takeo Referral Hospital

User fee schedule at a health center in Takeo province

The objectives of this study are to investigate the mechanisms through which the rural households who come across unpredicted shocks, cope with damages caused by such shocks and mitigate the impacts of the shocks on the household economy through informal risk pooling measures, focusing on “social networks”, “community based fund raising activity; Sangaha-tine”, and “remittance from family members”.

In the first year, we conducted a field research focusing on the effects of “Sangaha-tine” on risk-pooling and the motivations of village people who participated in it. In the second year, we will conduct field research focusing on the effects of social networks on risk-pooling.

The existing studies have already found that households exhibit greater gift giving and informal lending following the negative income shock of fellow network members. Given this risk-pooling within networks, it is important to analyze who forms links with whom and how types of relationships, such as reciprocal or non-reciprocal, are formed.

This study differs from the existing studies on the point in that we distinguish between different types of social networks and examine whether dyad characteristics affect risk-pooling differently. Therefore, we believe this study can contribute to the progress of study on risk-pooling.

Finally, it is hoped that the findings of this study can be applied to design more efficient poverty reduction programs.

Outline of Result

The main results of our study in this fiscal year are as follows.
　1. We made an interview survey in the four rice growing villages and collected information from nearly 200 households. From the results of this and previous surveys, we find that gifts and zero interest loan from relatives and friends can mitigate the negative impacts of shocks such as illness, injury and death of family member on household economy not only through reciprocal bilateral relations but through the other types of relationships. We also find that rural households are more likely to sell their assets when they are faced with the shocks.
　2. We collected the data of child health and nutrition status in the four rice growing villages as well as the data of household economy. On the basis of the data, we examined what kind of shocks affected child health and nutrition, and whether social network contributed to reduction of risk caused by shocks. We find that the impacts of death, stolen assets, unemployment and employment on child health and nutrition are larger than those of disease and bad crop. However, we cannot find any evidence that social network among the families and friends contribute to improvement of child health and nutrition status by absorbing the shock damage through mutual gifts and zero-interest loan.

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