People have always faced shocks and have devised a variety of institutional responses to cope with, recover from, and prevent future impacts. Central to these shocks and this coping capacity, but often underexplored, is the role of social capital.
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Despite significant strides in reducing poverty during recent decades, there are still about 1.2 billion extremely poor people in the world.
Agriculture in Ethiopia is almost entirely rainfed and highly prone to droughts and floods. Given that 85 percent of the population depends on smallholder agriculture, these weather shocks severely affect many Ethiopians.