Social protection for the poor and poorest in developing countries: reflections on a quiet revolution

The concept and practice of social protection in developing countries has advanced at an astonishing pace over the last decade or so. There is a growing consensus around the view that social protection constitutes an effective response to poverty and vulnerability in developing countries, and an essential component of economic and social development strategies. This paper argues that the rise of social protection constitutes a response to global factors, but with considerable regional diversity. The paper examines the factors determining the future course of social protection and identifies urgent research needs.

Over the last decade, globalisation and economic transformation have encouraged the advancement of social protection in developing countries. This has been a response to:

• the poverty and vulnerability brought about by multiple crises
• the ineffectiveness of short term discretionary safety nets
• the large costs associated with not having social protection in a globalised world
• the international focus on poverty reduction brought about by the Millennium Development Goals
  

At the same time, social policy in developing countries shifted towards programmes that:

• protect basic levels of consumption among the poorest
• facilitate investment in human capital and other productive assets
• strengthen the agency of those in poverty
• rely on income transfers, basic services, productive employment, asset building,a plurality of providers
  

In the future, social protection will follow a range of pathways in different regions depending on:

• external actors - even though national governments will continue to play a central role, notably in establishing institutions
• financing and delivery capacity, especially in low income countries. This will depend on growth, efficient tax collection and budget allocation as well as rising levels of official development assistance
• a supportive political environment
  

To support the crucial further advancement of social protection in developing countries, research should therefore:

• find mechanisms to scale up social protection coverage in low income countries without enhancing donor dependency
• identify approaches that will extend social protection into fragile states and difficult environments