Informal Network as a Coping Strategy in the Climate–Livestock Relationship

Abstract

Traditions and culture affect decisions in many daily life aspects, including family, labor market, business, and social life activities. The focus of this article is on Uzbekistan, a country that has a legacy of the Soviet past but also maintains its own traditions. Specifically, we focus on an informal network of people with common interests, known as the gap. In this article we examine whether households participating in the gap react to adverse shocks differently compared to households that do not belong to this network. We focus on the impact of climate shocks, one of the most prominent problems in Uzbekistan. In particular, we study whether climate conditions lead to differences in livestock assets across households in Uzbekistan and explore the climate–livestock relationship for members and non-members of the gap. The results suggest that households participating in the gap are more risk averse compared to other households. That is, in a place with a high risk of climate shocks, the gap members have lower livestock assets. At the same time, if in a current year, weather conditions improve—that is, there is more rainfall—members of the gap are able to increase their livestock assets in comparison with non-members.