develiEpoT nl botSathe lentt opmhvadihr a builee enlor,ancoutdHdli velngnduedunt eo sandri .rcate s uas,ia tandonre il ia zli in ngNhut i carhe huaguardlem masi ntdst chavha apitof ehaa t ayev ,teHu l ttoih esefmpedman ull ty hreeharneedC ap cHua it ounss manl tc thri re iisiesrCs,fprapmaceoduaark i t cl slt igroed ugvit gisywby pth hoteun Dtoverap Gnt i Pal .tped growWihe tpapro h t hs andchadedu t l lct owengecadvi i l t se.y PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized 2023InternationalBankforReconstructionandDevelopment/TheWorldBank1818HStreetNW,WashingtonDC20433 Telephone:202-473-1000;Internet:www.worldbank.org Somerightsreserved ThisworkisaproductofthestaffofTheWorldBankandtheGlobalFacilityforDisasterReductionandRecovery(GFDRR).Thefindings,interpretations,andconclusionsexpressedinthisworkdonotnecessarilyreflecttheviewsofTheWorldBank,itsBoardofExecutiveDirectors,orthegovernmentstheyrepresent.TheWorldBankdoesnotguaranteetheaccuracy,completeness,orcurrencyofthedataincludedinthisworkanddoesnotassumeresponsibilityforanyerrors,omissions,ordiscrepanciesintheinformation,orliabilitywithrespecttotheuseoforfailuretousetheinformation,methods,processes,orconclusionssetforth.Theboundaries,colors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartofTheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries. NothinghereinshallconstituteorbeconstruedorconsideredtobealimitationuponorwaiveroftheprivilegesandimmunitiesofTheWorldBank,allofwhicharespecificallyreserved. RightsandPermissions.Thisworkissubjecttocopyright.BecauseTheWorldBankencouragesdisseminationofitsknowledge,thisworkmaybereproduced,inwholeorinpart,fornoncommercialpurposesaslongasfullattributiontothisworkisgiven. Attribution.Pleasecitetheworkasfollows:“FrancescoTiseiandMalinEd.2024.UnleashingAdaptivePotentialforSocialProtection–GoodAdaptiveSocialProtectionPracticesinTheLatinAmericaAndCaribbeanRegion.Washington,DC:WorldBank.” Translations.Ifyoucreateatranslationofthiswork,pleaseaddthefollowingdisclaimeralongwiththeattribution:ThistranslationwasnotcreatedbyTheWorldBankandshouldnotbeconsideredanofficialWorldBanktranslation.TheWorldBankshallnotbeliableforanycontentorerrorinthistranslation. Adaptations.Ifyoucreateanadaptationofthiswork,pleaseaddthefollowingdisclaimeralongwiththeattribution:ThisisanadaptationofanoriginalworkbyTheWorldBank.ViewsandopinionsexpressedintheadaptationarethesoleresponsibilityoftheauthororauthorsoftheadaptationandarenotendorsedbyTheWorldBank. Third-partycontent.TheWorldBankdoesnotnecessarilyowneachcomponentofthecontentcontainedwithinthework.TheWorldBankthereforedoesnotwarrantthattheuseofanythird-party-ownedindividualcomponentorpartcontainedintheworkwillnotinfringeontherightsofthosethirdparties.Theriskofclaimsresultingfromsuchinfringementsrestssolelywithyou.Ifyouwishtoreuseacomponentofthework,itisyourresponsibilitytodeterminewhetherpermissionisneededforthatreuseandtoobtainpermissionfromthecopyrightowner.Examplesofcomponentscaninclude,butarenotlimitedto,tables,figures,orimages. Allqueriesonrightsandlicenses,includingsubsidiaryrights,shouldbeaddressedtoWorldBankPublications,TheWorldBankGroup,1818HStreetNW,Washington,DC20433,USA;fax:202-522-2625;e-mail:pubrights@worldbank.org. Contents Acknowledgements5 AbbreviationsandAcronyms7 Executivesummary11 Background19 ConceptualFramework:ASPandtheStressTestTool21 Reportobjectives24 Chapter1:DisasterandClimateRiskinLatinAmericaandtheCaribbean27 Sub-regionalexposuretoclimateshocks28 COVID-19,inflationandfoodinsecurity31 Socio-economicimplicationsofshocks32 Impactonpoverty32 Impactonhumandevelopment36 Impactondisplacementandmigration37 Chapter2:AsnapshotofthestateofsocialprotectioninLAC38 Chapter3:GoodpracticesintheLatinAmericaandCaribbeanregion46 OverallStressTestAssessmentResults46 StressTestresults,goodpracticesandpersistingchallengesbyASPbuildingblocks48 ProgramsandDeliverySystems48 DataandInformation58 Finance71 InstitutionalArrangementsandPartnerships80 Chapter4:StrategicrelevanceofASPinLAC88 PriorityareastoadvancetheASPagenda88 PromotingtheASPagendathroughWorldBankprojectsintheLACregion90 References94 Annex–StressTestModule2Questionnaire102 Figures Figure1:LatinAmericaandtheCaribbean:Occurrenceandnumberofaffected,1952-2022 ....................................................................................................................................................................11 Figure2:Peru-Peopleexposedtocovariantnaturalshocksbyexpenditurequintileandlocation(2021)11 Figure3:OverallStressTestAssessmentscores-LatinAmericaandtheCaribbean12 Figure4:Overallscore:ProgramsandDeliverySystems13 Figure5:Coverageofsocialassistance(totalpopulationandpoorestquintile)byselectLatinAmericaandCaribbeancountries13 Figure6:Overallscore:DataandInformation14 Figure7:PopulationCoverageofSocialRegistriesinselectLatinAmericaandtheCaribbeancountries15 Figure8:Overallscore:Financ