Growth-promoting social safety nets
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International Food Policy Research Institute
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Publicly funded, noncontributory transfer programs targeted to the poor and vulnerable have a long history. Free food distribution was a feature of Egypt in the time of the Pharaohs and of Rome during its Imperial age. England had a succession of “Poor Laws” dating from the 16th century that provided assistance to those unable to work, while Germany inaugurated components of the modern welfare state in the late 19th century. These programs, typically referred to as social safety nets or social protection programs, are now ubiquitous in developed countries and are becoming more common in developing countries. They are, however, controversial. While proponents of such programs see them as a means of ensuring that the benefits of economic growth are shared widely, critics see them as squandering scarce public resources and doing little to promote longer term development, while at the same time discouraging work and investment. Overlooked in this often polemical debate is the contribution that social safety nets can make in promoting economic growth. This instrumental dimension of social safety nets is the focus of this brief.
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poverty, hunger, food policies, food security, capacity building, vulnerability, cash transfers, malnutrition, economic development, social safety nets, health care, property rights, climate change, gender, policies, millennium development goals