ABSTRACT
The experience of Western European countries, where large-scale social insurance has developed since the Great Depression, is encouraging, because social insurance has contributed there to a drastic reduction in poverty, vulnerability and inequality. This chapter identifies the main features of social protection in industrial countries – the achievements as well as the direct and indirect costs of protection. It examines the relevance of the main protective instruments available to Latin American countries. The chapter presents some general remarks on the demand for social insurance that will be relevant when evaluating existing systems or those proposed to be erected. It explains the experience of industrial countries in the field of social protection. The chapter focuses on the implications of the analysis for Latin America, and deals with a brief review of major social developments in several Latin American countries, particularly the significance of the Progresa/Oportunidades program in Mexico.
