Making the Investment Case for Social Protection

The focus in this paper is on non-contributory social transfers which are considered to be the main social protection instruments targeted specifically at poor and vulnerable households, and which are financed from general government revenues. Eligibility for non-contributory transfers does not depend on employment records and contributions made in the past. The aim of the paper is to take stock of the main experiences and unpack some of the common questions raised in relation to the use of ex-ante cost-benefit analyses for the promotion and design of non-contributory social protection policies and programmes in developing countries. We conclude by highlighting a number of important questions, suggesting critical conditions for carrying out and using such analyses successfully, and proposing directions for future research.