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A third of the world’s population would survive for less than a month with no income

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Volunteers at a food bank in Madrid, Spain supporting people impacted by the Covid-19 pandemic.

The 2021 World Risk Poll findings reveal that globally, just over one in three people (34%) could cover basic needs for less than a month if they lost their income – for instance, because of a disaster – including about one in eight (12%) who could do so for less than a week.

A Resilient World? Understanding vulnerability in a changing climate

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Financial vulnerability

Natural hazards and other shocks can have a huge financial impact on individuals as they risk losing their job or livelihood as a result. Financial security is therefore a key part of building resilience for individuals and societies. The Covid-19 pandemic provides the most obvious recent example of widespread loss of income caused by a major global shock. Within the first year, countless businesses were forced to close, causing unemployment to rise sharply in many countries1. And in a 2019 report, the International Labor Organization estimated that climate change could lead to the loss of 80 million full-time jobs by 2030, with agricultural workers the most severely affected2 

Dr. Sarah Cumbers Former Director of Evidence and Insight, Lloyd’s Register Foundation

Financial security is an important part of resilience. Resilience isn’t just about surviving when a disaster occurs, it’s about being able to rapidly return to normal life in the following weeks and months. The World Risk Poll Resilience Index provides a uniquely valuable tool for holistically assessing resilience and informing interventions.

A profile photograph of Dr. Sarah Cumbers, former Director of Evidence and Insight at the Lloyd's Register Foundation.

Financial resilience by region

Financial vulnerability is highest in Southern Asia and North Africa, where around half (57% and 49%, respectively) could only cover their needs for less than a month, including around a quarter (26% and 24%, respectively), who could only do so for less than a week.

At the other end of the scale, more than half (51%) of people in both the Northern America and Australia/New Zealand regions would have the ability to cover basic needs for four months or more if their income was lost. This is closely followed by people in Northern/Western Europe (48%) and Southern Europe (42%).

The World Risk Poll provides a better understanding of those countries and regions where individual financial insecurity is likely to compound the impact of a disaster. It’s unsurprising that the findings show higher financial resilience in more economically developed countries and territories with higher average education levels and stronger infrastructure. This is likely to be one of the reasons people in these countries are more likely than those in less developed countries to say they could protect themselves and their families in the event of a disaster.

1/3 of people globally can only cover basic needs for less than 1 month if they lose all their income.

Infographic showing 1/3 inside an image of a person, next to a house with coins in it

Financial resilience by demographic groups

Financial resilience does vary by demographics within some regions. For example, while more than half of people in Northern America say they could cover basic needs for four months or more, this headline figure masks some significant disparity. When divided into income quintile groups, 78% of the wealthiest people in this region said they could cover basic needs for four months or more, compared with just 21% in the poorest group. Whilst some level of disparity between groups was observed in all regions, the magnitude was greatest in Northern America.

Perceived ability to protect self and family from disasters.

52% of people globally believe they can protect themselves and their family in the event of a disaster.

Pie chart showing that 52 % can protect themselves and their family in the event of a disaster, with 36% saying no, 6% saying it depends, and 6% saying they don't know.

Ability to cover basic needs if income was lost, by region.

If you lost all of your household income and had to survive only on your savings or things you could sell, how long would you be able to cover your basic needs?

An infographic of a world map showing the regions where the highest number of people say they would survive with no income for less than a month. Southern Asia had the most with 57% followed by Northern Africa (49%), Middle East (38%), Latin America and the Caribbean (36%) and Southern Africa (33%). The graphic also shows the regions where the highest number of people say they could survive with no income for over four months - Australia New Zealand (51%), North America (51%), North Western Europe (48%).

Download the report

A Resilient World? Understanding vulnerability in a changing climate

Revealing how people worldwide feel their country’s infrastructure and government can cope in the face of disasters, the report provides global insights into how prepared and resilient individuals believe their communities, countries and institutions are. (PDF, 5.46MB)