ABSTRACT
This chapter is based on the premise that countries at all levels of development need to develop a comprehensive social protection system that can provide protection to individuals and households against labour market risks and contingencies of various kinds. Using the notion of ‘social protection floor’, the chapter adopts a broader agenda for social protection than the conventional idea of social safety net only for the poor. On the basis of an analysis of the relationship between social protection and economic growth, it is argued that there should be no conflict between the two. If income transfers under social protection strategy are seen as investment in human capital, they would be compatible with a growth promoting strategy. The negative impact on incentives to work is not significant, and the financing requirements do not appear to be unrealistic. Developing countries have already demonstrated that they are capable of institutional innovations in the field of social protection as the success of conditional cash transfers and employment guarantee schemes testify. The chapter argues that social safety nets are too narrow in substance and spirit, and thus incompatible with the notion of inclusive growth.
