KfW has published a paper, authored by Development Pathways’ Stephen Kidd, titled ‘Social Protection: an effective and sustainable investment in developing countries’. In recent years, social protection has increasingly played a key role in the social and economic policy of developing countries. The paper details some of the impacts of tax-financed social protection schemes in developing countries and the significant positive benefits that they bring.
These range from building human capital to restoring a sense of dignity and self worth to the most vulnerable and excluded members of society. However, social protection should not be seen as a ‘silver bullet’, since schemes must be well designed if returns on investment are to be maximised. Further, social protection should be regarded as one essential component of broader national investment in social policy.