ABSTRACT
This chapter presents the background to the research: the country of Nicaragua and Hurricane Mitch. It assesses differences in vulnerability between households by analysing the short-term consequences of Mitch for the consumption of rural households. The chapter explores whether rural households adapt their livelihood strategy in response to the hurricane. It looks at the potential impact of Mitch and other natural shocks on risk attitudes. The chapter examines the main findings related to vulnerability and adaptation: the short-term consequences of Mitch for household consumption and how these differ between households depending on wealth; the potential adaptation of livelihood strategies; and the possible changes in risk attitudes. It provides policy lessons and links these to Dutch and European policies for development and emergency aid. The chapter deals with the main findings of the research on Hurricane Mitch and adaptive livelihoods in Nicaragua.
