Recent macroeconomic shocks include the global food price spikes in 2008 and 2010-11. Besides, the expected consequences of the ongoing financial and sovereign debt crisis in the United States and Europe for global economic growth, development assistance, foreign direct investments, and remittances put developing countries’ economies and households under increased stress. Examples of shocks with immediate effects on FNS occur at the micro level include civil conflicts and natural disasters such as floods and droughts. These shocks are usually localized and therefore threaten the livelihoods of only parts of the population directly through loss of household assets, market access, and income earning opportunities, among others. Yet, depending on the geographical spread and intensity, they may also slow national economic growth, lead to higher inflation, and cause a burden for the national budget limiting the financial space for alternative spending and investment (Ecker and Breisinger 2012).