ABSTRACT
Chapter 4 looks at the empirics and theories of social safety nets and poverty reduction in developing countries. Empirical studies have shown that well-designed social safety nets can significantly reduce poverty rates and improve the well-being of vulnerable populations. They have shown that targeted cash transfers, food subsidies, and access to basic services can help alleviate poverty, improve nutrition, promote health, and increase school enrolment. The theories underlying these findings emphasize the importance of social protection in addressing inequality, promoting human capital development, and spurring economic growth. They argue that social safety nets provide a safety net for individuals and families to invest in their future, break the cycle of poverty, and contribute to sustainable development. However, critics point out that while social safety nets are critical for immediate poverty reduction, they should be complemented by broader policies that address structural factors, such as improving access to quality education, health care, and employment opportunities, to reduce poverty in developing countries over the long term.
