Economic Shocks and Crises are a challenge to Well-being

The chapter examines social and economic policy responses to economic shocks and crises in low- and middle-income countries. It reviews evidence on the measures adopted during the COVID-19 pandemic and other crises, their effects on household incomes, poverty and inequality, and their possible longer-term implications for social policy. A key conclusion is that the most effective crisis responses combined accurate targeting, sufficient scale and the use of existing benefit programmes and payment systems. At the same time, the chapter shows that limited social protection coverage, widespread informal employment, debt pressures and weak tax bases constrain the ability of many countries in the Global South to protect their populations from economic shocks. Building crisis resilience therefore requires long-term investment in social protection systems, domestic revenue mobilization and public institutions.

Publication Information

Lastunen, J., Nyyssölä, M., Heimo, L., Karjanlahti, K. & Tiililä, N. (2026). Talousshokit ja -kriisit hyvinvoinnin haasteena. In L. Heimo & R. Lambin (Edit.), In Globaali sosiaalipolitiikka. Tampere: Vastapaino.