Resilience working paper

The working paper emphasizes the critical role of financial inclusion in building resilience among households and communities in low- and middle-income countries (LMICs), particularly in the face of intersecting crises such as extreme weather, conflict, and pandemics. By strengthening access to savings, credit, and insurance, financial services can help individuals manage risks and protect their livelihoods. The paper highlights the importance of linking financial inclusion with adaptive social protection and climate-responsive investments, promoting locally led solutions through informal and formal institutions, and ensuring gender equality and social inclusion in financial products. Digital financial services also offer potential to scale inclusion, particularly during crises. These strategies aim to integrate financial inclusion into broader resilience frameworks, fostering sustainable development and reducing vulnerabilities.