How Can Safety Nets Contribute to Economic Growth?
The paper provides an up-to date and selective review of the literature on how social safety nets contribute to growth. The evidence is carefully chosen to show how safety nets have the potential to overcome constraints on growth linked to market failures, and is organized into four distinct pathways: i) encouraging asset accumulation by changing incentives and by addressing imperfections in financial markets caused by constraints in obtaining credit, and from information asymmetries; overcoming such failures helps households to invest into their human capital or productive assets; ii) failures in insurance markets especially in low income setting; safety nets are assisting in managing risk both ex post and ex ante; iii) safety nets are overcoming failure to create assets and other local economy complementary factors to household-level investments; iv) safety nets are shown to relax political constraints on policy. Safety nets have a dual objective of directly alleviating poverty through transfers to the poor and of triggering higher growth for the poor. However, the trade-off between the dual objectives of equity and growth is not eliminated by the potential for productive safety nets; this remains critical for designing social policies.
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| Format: | Journal Article biblioteca |
| Language: | en_US |
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Oxford University Press on behalf of the World Bank
2014-01-23
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| Subjects: | beneficiaries, cash transfer, economic growth, income, inequality, insurance, insurance market, international food policy, labor supply, market failure, political constraint, productive assets, public resource, public transfer, resource allocation, safety net, social policies, targeting, |
| Online Access: | http://hdl.handle.net/10986/22555 |
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dig-okr-10986225552021-04-23T14:04:09Z How Can Safety Nets Contribute to Economic Growth? Alderman, Harold Yemtsov, Ruslan beneficiaries cash transfer economic growth income inequality insurance insurance market international food policy labor supply market failure political constraint productive assets public resource public transfer resource allocation safety net social policies targeting The paper provides an up-to date and selective review of the literature on how social safety nets contribute to growth. The evidence is carefully chosen to show how safety nets have the potential to overcome constraints on growth linked to market failures, and is organized into four distinct pathways: i) encouraging asset accumulation by changing incentives and by addressing imperfections in financial markets caused by constraints in obtaining credit, and from information asymmetries; overcoming such failures helps households to invest into their human capital or productive assets; ii) failures in insurance markets especially in low income setting; safety nets are assisting in managing risk both ex post and ex ante; iii) safety nets are overcoming failure to create assets and other local economy complementary factors to household-level investments; iv) safety nets are shown to relax political constraints on policy. Safety nets have a dual objective of directly alleviating poverty through transfers to the poor and of triggering higher growth for the poor. However, the trade-off between the dual objectives of equity and growth is not eliminated by the potential for productive safety nets; this remains critical for designing social policies. 2015-08-28T16:13:26Z 2015-08-28T16:13:26Z 2014-01-23 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/22555 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article Indonesia Mexico South Africa |
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biblioteca |
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Biblioteca del Banco Mundial |
| language |
en_US |
| topic |
beneficiaries cash transfer economic growth income inequality insurance insurance market international food policy labor supply market failure political constraint productive assets public resource public transfer resource allocation safety net social policies targeting beneficiaries cash transfer economic growth income inequality insurance insurance market international food policy labor supply market failure political constraint productive assets public resource public transfer resource allocation safety net social policies targeting |
| spellingShingle |
beneficiaries cash transfer economic growth income inequality insurance insurance market international food policy labor supply market failure political constraint productive assets public resource public transfer resource allocation safety net social policies targeting beneficiaries cash transfer economic growth income inequality insurance insurance market international food policy labor supply market failure political constraint productive assets public resource public transfer resource allocation safety net social policies targeting Alderman, Harold Yemtsov, Ruslan How Can Safety Nets Contribute to Economic Growth? |
| description |
The paper provides an up-to date and selective review of the literature on how social safety nets contribute to growth. The evidence is carefully chosen to show how safety nets have the potential to overcome constraints on growth linked to market failures, and is organized into four distinct pathways: i) encouraging asset accumulation by changing incentives and by addressing imperfections in financial markets caused by constraints in obtaining credit, and from information asymmetries; overcoming such failures helps households to invest into their human capital or productive assets; ii) failures in insurance markets especially in low income setting; safety nets are assisting in managing risk both ex post and ex ante; iii) safety nets are overcoming failure to create assets and other local economy complementary factors to household-level investments; iv) safety nets are shown to relax political constraints on policy. Safety nets have a dual objective of directly alleviating poverty through transfers to the poor and of triggering higher growth for the poor. However, the trade-off between the dual objectives of equity and growth is not eliminated by the potential for productive safety nets; this remains critical for designing social policies. |
| format |
Journal Article |
| topic_facet |
beneficiaries cash transfer economic growth income inequality insurance insurance market international food policy labor supply market failure political constraint productive assets public resource public transfer resource allocation safety net social policies targeting |
| author |
Alderman, Harold Yemtsov, Ruslan |
| author_facet |
Alderman, Harold Yemtsov, Ruslan |
| author_sort |
Alderman, Harold |
| title |
How Can Safety Nets Contribute to Economic Growth? |
| title_short |
How Can Safety Nets Contribute to Economic Growth? |
| title_full |
How Can Safety Nets Contribute to Economic Growth? |
| title_fullStr |
How Can Safety Nets Contribute to Economic Growth? |
| title_full_unstemmed |
How Can Safety Nets Contribute to Economic Growth? |
| title_sort |
how can safety nets contribute to economic growth? |
| publisher |
Oxford University Press on behalf of the World Bank |
| publishDate |
2014-01-23 |
| url |
http://hdl.handle.net/10986/22555 |
| work_keys_str_mv |
AT aldermanharold howcansafetynetscontributetoeconomicgrowth AT yemtsovruslan howcansafetynetscontributetoeconomicgrowth |
| _version_ |
1756574093260357632 |