The paper sets out to describe: (a) ongoing vulnerabilities in the local financial sector, particularly the rural banks that are emerging as an important depository and remittance conduits for international migrants; (b) constraints faced by local authorities that make intervene on the production side difficult; (c) partnerships between industry leaders, local governments and local communities that are creating new domestic economy production linkages even during the crisis; and (d) new safety nets introduced by the national government and complementary social protection initiatives that may be needed to address income shocks.