Selected issues and social and economic policy

Development economists in the past have implicitly treated social security as a luxury which poor countries cannot afford in the initial stages of development and should postpone until significant per capita income increases have taken place. This view has, however, been changing in recent years owing to the growing inadequacy of the two safety nets that the developing countries had relied on. First, the traditional family or tribal structure, which provided an “informal” social security system, has considerably weakened over time in most developing economies, especially in the urban areas. Second, economic growth, which was supposed to provide a safety net through its trickle-down effect, is now considered a much less reliable ally of the poor and the disadvantaged than earlier.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities