Financial Resilience: A Way Forward Towards Economic Development in Developing Countries

Fanny Salignac (1) , Julien Hanoteau (1, 2) , Ioana Ramia (3)

1 Kedge BS - Kedge Business School
2 AMSE - Aix-Marseille Sciences Economiques
3 UNSW - University of New South Wales [Sydney]

Financial inclusion is a policy priority in both developed and developing countries. Yet almost one in four people remain financially excluded around the globe, with the vast majority living in the developing world. In this paper, we argue that financial resilience: an individual’s ability to function effectively in adverse financial situations, can better help us assist people to cope with financial adversity, develop effective policy and, ultimately, improve economic development. This paper builds on an existing financial resilience measurement framework and adapts it to develop a measure appropriate to the context of developing countries. Indonesia, where one in three people are financially excluded, is used as a case country from which to draw conclusions. We use the Indonesia Family Life Survey and put forward the country’s first snapshot of financial resilience. Implications for research and policy are presented.

Keywords: Financial inclusion; Financial resilience; Economic development; Poverty; Indonesia

Domains: Humanities and Social Sciences; Economics and Finance

Fanny Salignac, Julien Hanoteau, Ioana Ramia. Financial Resilience: A Way Forward Towards Economic Development in Developing Countries. Social Indicators Research, 2022, 160 (1), pp.1-33. ⟨10.1007/s11205-021-02793-6⟩. ⟨hal-03659031⟩