Quisumbing, AgnesKumar, NehaBerhman, Julia A.2022-01-132022-01-132012https://nru.uncst.go.ug/xmlui/handle/123456789/1260Sustainability poverty reduction is difficult to achieve without mechanisms that help households manage shocks. Covariate shocks, which impact virtually everyone in a community occur because of natural disasters, war, price instability and financial crises. Idiosyncratic shocks, which impact only individuals or specific households, commonly arise due to farm-specific crop failure or livestock mortality, illness, injury or death of a household member, or property loss due to fire or theft. Such shocks of the severely affect a household’s asset holdings thereby trapping a house-hold in chronic povertyen