What is the evidence linking financial assistance for drought-affected agriculture and resilience in tropical Asia? A systematic review

Abstract

Agriculture is sensitive to drought and associated social, environmental and economic impacts. Finance-based interventions aim to support farmers affected by drought; however, the extent to which such tools encourage resilience to this natural hazard is unclear. This paper systematically reviews evidence on links between financial interventions to mitigate drought-related impacts and adaptation towards longer-term resilience. We focus on tropical Asia where agriculture contributes significantly to national economies and is a primary source of livelihood in a region subject to high climate variability and episodic drought. Guided by Population, Intervention, Comparator and Outcome criteria, we identify and review 43 regionally specific articles that describe a range of financial interventions. Through thematic synthesis, we document the interventions’ associations with micro-level and macro-level outcomes. The results reveal how some interventions helped sustain household incomes and crop yield (e.g. through farm investments that increased productivity) through drought, whilst others encouraged adaptive behaviours. At a macro-level, there were challenges associated with government budgets and scheme administration, with the longevity of many schemes difficult to sustain. From fragmented evidence, this review reasons that there can be challenging policy trade-offs for institutions between supporting livelihoods and economic growth whilst also protecting the environment—highlighting the interdependence of systems’ resilience and variability in actors’ capacity to adapt. Low-regret interventions that integrate existing community adaptive practices, engage with farmers’ needs and prioritise extension support may encourage more desirable counteractions to drought; however, further research is needed to establish the role of such interventions.

Uncovering the Research Gaps to Alleviate the Negative Impacts of Climate Change on Food Security: A Review

“…Another explanation is that many financial services do not consider the seasonal investment and revenue opportunities of farmers or the sources of risk they confront, so farmers may not be entitled for or concerned in adopting the financial products, and they may not be beneficial even if they execute. Designing financial products around farmers’ particular financial requirements during any stress period can have potential impacts at micro as well as macro scales on improving food security for the poor communities of worldwide ( Goodwin et al, 2022 ).…”

Tackling Growing Drought Risks—The Need for a Systemic Perspective

“…In a review of governmental financial assistance in Tropical Asian countries, Goodwin et al. (2022) found that even when institutional schemes are available, high levels of social vulnerability prevent many potential beneficiaries from accessing them, therefore leaving vulnerable communities/sectors (e.g., farmers) with little to no options to cope with drought impacts. The impacts of droughts, however, are not only exacerbated or ameliorated by social, economic, or institutional factors that influence societal susceptibilities and the ability of communities economic sectors and systems to cope and adapt, but are also directly linked to physical and biological factors determining the susceptibility of ecosystems and the services they provide (Figure 1, panel a).…”

“…For example, the 2018 drought event that led to widespread water shortages and almost to "Day Zero" in Cape Town has shown that human actions exacerbated the drought hazard (here: streamflow, reservoir and groundwater storage) through overconsumption, but also that socio-economic disparities influenced access to information as well as the choices households had to prepare for and cope with the drought (Savelli et al, 2021(Savelli et al, , 2023Ziervogel, 2019). In a review of governmental financial assistance in Tropical Asian countries, Goodwin et al (2022) found that even when institutional schemes are available, high levels of social vulnerability prevent many potential beneficiaries from accessing them, therefore leaving vulnerable communities/sectors (e.g., farmers) with little to no options to cope with drought impacts. The impacts of droughts, however, are not only exacerbated or ameliorated by social, economic, or institutional factors that influence societal susceptibilities and the ability of communities economic sectors and systems to cope and adapt, but are also directly linked to physical and biological factors determining the susceptibility of ecosystems and the services they provide (Figure 1, panel a).…”

Key technology of crop precision sowing based on vision principle

“…Agriculture is the source of life for a country and the economic lifeline of a country or region (Goodwin et al, 2022). With the vigorous development of modern economy, the influence of agriculture is also increasing day by day.…”