Identifying the Vulnerable: New Evidence from Peru

Protecting vulnerable groups during episodes of macro-economic contractions is vital to poverty reduction in developing countries. Well-targeted emergency programs can provide temporary income support to the most needy, while longer-run social investment funds offer the potential for removing the conditions that predispose certain households to vulnerability. Yet, because it is not always clear who is vulnerable and why, it has been difficult to design and target these poverty alleviation programs so that they reach those who need help the most. Drawing on the experience of Peru between 1985 and 1990, a World Bank study explores the determinants of vulnerability.