Development Of Vulnerability And Poverty Model Of Rural Households In Perlis, Kelantan and Terengganu

Social scientists including economists and social workers have long recognized that a household's sense of well-being depends not just on its average income or expenditures, but! also on the risks households faced. Formal strategies are important mechanisms that offer aiq and risk-coping strategies to rural households. In the absence of formal mechanisms like credit, institutions, these households find informal mechanisms as the second best respond to deal with risks coping strategies. The general objective of this study is to analyze the link between risk and vulnerability to poverty of rural households in Perlis, Kelantan and Terengganu. The specific obje~tives of this study\ud are: (1) to investigate the determinants of households' vulnerabilities to poverty and reveal the effect of various stressors on households' assets and vulnerability to poverty; (2) to assess the extent to which these strategies are able to insure rural households against risks and shocks; (3) to assess the potential impact of these programs on households' abilities to cope with stressors; (4) to recommend vulnerability poverty model of rural households