Children in times of economic crisis: Past lessons, future policies

H ow do economic shocks, in particular the current economic downturn, affect the wellbeing of children? What can be done to mitigate harm? This paper explores these questions, presents a framework for analysing the impact of shocks on children in different contexts and suggests initial policy implications. New estimates from the World Bank (Blomquist et al., 2009) suggest that slower economic growth owing to the current economic crisis will trap 46 million more people than expected on less than US$1.25 a day; an extra 53 million will be pushed into $2-a-day poverty. This is over and above the 130-155 million people pushed into poverty in 2008 because of soaring food and fuel prices. The downturn is no longer limited to developed countries: economic forecasts for developing countries are rapidly being revised downwards. Given experience from previous crises, all countries need to consider the impacts on children. Increases in child mortality and morbidity, child labour, child exploitation, violence against children and women and other forms of abuse, alongside declines in school attendance and the quality of education, nurture, care and emotional wellbeing, can all be traced to times of economic crisis. It is importance to recognise the following: •*We*know*women,*children*and*young*people*suffer* disproportionately. Parents try to protect their children from the worst impacts of crisis, but there are often limits to how much they can do, especially the poorest. • Vulnerabilities depend on both gender and age, and are multidimensional. Women are the first to lose jobs, having to work harder to seek additional income, spending less time on nurture and care. Youth recover from the impact of lost job opportunities slowly or not at all. Girls often experience higher levels of nutrition and educational deprivation then boys, with long term wellbeing implications for themselves and their own children. And many women, youth and children (to varying degrees) lack voice and power which, among other effects, contributes to abuse and exploitation. • It is essential to focus on major irreversabilities: if children are severely malnourished, pulled out of school, subject to neglect or violence and/or pushed into work, they live with the consequences for their whole life, sometimes passing the consequences onto their own children (Harper, 2005). This implies much greater future poverty, probably higher inequality and lower prospects for economic growth. • Policy should not underestimate the agency of households, including children, in responding to crisis. The challenge is to support constructive coping mechanisms and seek to discourage unconstructive ones.download