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By David M. De Ferranti, Guillermo Perry

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It then sets out a general analytical framework to help organize the various options available to individuals and governments for dealing with economic insecurity (Chapter 3). Using this framework, the remaining chapters focus on measures to deal with risks. First, the causes of macroeconomic or aggregate volatility are examined and some remedies suggested (Chapter 4). This report then examines how these risks affect individuals and households, and their responses to economic shocks (Chapter 5).

At the World Bank, major contributions were made by Wendy Cunningham, Gabriel Gonzalez, Emily Gustafsson-Wright, Norman Hicks, William Jack, Pedro Olinto, Bernadette Ryan, Guilherme Sedlacek, Rashmi Shankar, Mark Thomas, and Quentin Wodon. Outside contributors included Carlos Arango (University of Illinois), Ricardo Caballero (MIT), Jonathan Conning (Williams College), Adriana D. Kugler (Universitat Pompeu Fabra), Donna MacIsaac (consultant), Alejandra Mizala (Universidad de Chile), Marcelo Neri (Fundação Getulio Vargas), Martin Ravallion (Université des Sciences Sociales, Toulouse), Dani Rodrik (Harvard University), Pilar Romaguera (Universidad de Chile), James M.

Exceptions: Bahamas (197887), Barbados (196794), Belize (198198), Bolivia (196179, 198198), Guyana (196188), Haiti (196690), Honduras (196197), Nicaragua (196196), Panama (198198), Peru (196698), and Venezuela (197598). Why Economic Insecurity? What lies behind these perceptions of insecurity and social insurance demands? There are several factors. On the one hand, the unprecedented severity and duration of the crisis unleashed in 1982reflected in a sharp and long-lived decline in per capita incomes from which LAC has taken many years to recoverleft a profound imprint across the region's social fabric concerning the dangers of economic instability.

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