Household Responses to Poverty and Vulnerability Volume 1: Confronting Crisis in Cisne Dos, Guayaquil, Ecuador

THIS RESEARCH PAPER is a study of strategies adopted by the urban poor in Ecuador to reduce vulnerability and prevent impoverishment during periods of economic stress. The report describes the main results from the community of Cisne Dos, Guayaquil (Ecuador) and is part of larger World Bank study which also included low-income communities in Manila (the Philippines), Budapest (Hungary) and Lusaka (Zambia). The current study extends original research on Cisne Dos, which was carried out by Moser between 1978 and 1988, and documents and analyzes the resourcefulness of the poor in this urban squatter settlement.

Beginning with a socioeconomic profile of Cisne Dos, the paper considers the level of poverty encountered and who is most affected by it. Although the vast majority of the community lives in poverty (defined by World Bank definitions of absolute poverty), the author reminds us that Cisne Dos is socially and economically heterogeneous, with socioeconomic diversity being based broadly on length of residence, with more established households being better off than recently arrived families. The community profile is a detailed look into employment, household structures, income and expenditure patterns, and how these are influenced by strategies of the urban poor during economic stress. It is a useful guide for anyone wishing to undertake similar studies. Annexes at the end of the book give more detailed socioeconomic data of the community and the methodology.

The following sections highlight the assets in the neighbourhood, namely labour, existing infrastructure, housing and household relationships. Instead of focusing on what the community lacks, which is often the case in poverty studies, Moser takes an inventory of the resources and assets that poor individuals, households and communities utilize in response to economic insecurity. The study found that labour can be identified as the most valuable asset for community members and, in the face of increasing economic instability, the poor's response is to diversify income resources by mobilizing their labour. Increasing female participation has a key role in the survival strategies of households as they intensify and diversify their income-earning opportunities in the face of external changes. However, depending on their age, skills and capital, men have greater potential to develop lucrative enterprises; both profiles and personal case studies of Cisne Dos workers are given.

In Cisne Dos, where the provision and quality of social (health care, education) and economic (electricity and water) infrastructure are deficient, poor people's coping mechanisms are hampered. As access to services is limited and becomes more time consuming, human resources may be diverted away from income-generating activities. Indeed, very poor households were, in 1992, spending nearly one-third
of their household income on services, whilst non-poor households (representing only 22.8 per cent of the population) spent 10 per cent, demonstrating a common trend in poor urban settings which is that the poor tend to pay more for services than their wealthier urban counterparts. Moreover, within households, women were particularly affected by deficiencies in public services.

Housing is an important productive asset that can cushion households against severe poverty, and resourcefulness in its use is particularly important during times of economic adversity, when other sources of income are reduced. Data from Cisne Dos illustrate the importance of settlement consolidation and home ownership in increasing the urban poor's potential to use their homes productively. In Cisne Dos, direct income generation through home-based enterprises is the most important strategy, although the transfer of assets from parents to children is also important.

Although household relations are rarely considered as an asset, Moser finds that changes in household structure to strengthen family support networks are both