Can Social Protection Be an Engine for Inclusive Growth?

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The potential role of social protection in the development process has received heightened recognition in recent years, yet making a strong investment case for social protection remains particularly challenging in many emerging and developing countries. This report challenges us to think deeply about the economic rationale for social protection investments through an inclusive development lens. It helps us understand the links between social protection, growth and inequality; how to measure those links empirically; social protection’s impact on inclusive growth; and how to build a more solid economic case for greater social protection investments.

The report adds to the debate on social protection in three ways. First, it proposes a methodological framework to conceptualise and measure the impact of social protection on what the OECD defines as inclusive growth. Second, it provides new empirical evidence on the impact of different social protection programmes on inclusive growth. Third, it helps strengthen the case for greater investments in social protection while also calling for better data to measure impacts.



Micro-level impact of social insurance on inclusive growth

The primary objective of social insurance programmes is to protect insured people and their dependents against a number of life contingencies through contributory mechanisms. That said, social insurance may also impact inequality and growth in various ways. This chapter provides recent and new empirical evidence on the effects of social insurance schemes on the micro economic drivers of inclusive growth at various lifecycle stages. It shows that several social insurance investments can have numerous enhancing effects.


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