Economic Vulnerability Theory

Economic Vulnerability Theory refers to the idea that certain groups or regions are more at risk of experiencing negative economic impacts due to external shocks, like natural disasters or market changes. This theory highlights factors such as dependency on limited resources, lack of diversification in the economy, and social inequalities that can exacerbate vulnerability. Essentially, it focuses on understanding why some communities struggle more than others when faced with economic challenges, aiming to inform policies that protect and empower these vulnerable populations.