Alderman, HaroldYemtsov, Ruslan2013-09-042013-09-042013-05https://hdl.handle.net/10986/15578The 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 4 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.en-USCC BY 3.0 IGOACCESS TO INSURANCEACCOUNTINGAGRICULTURAL INSURANCEAGRICULTURAL PRODUCTIVITYALLOCATIVE EFFICIENCYASYMMETRIC INFORMATIONATTRITIONBANK ACCOUNTBENEFICIARIESBENEFICIARYBENEFIT SYSTEMBLOCK GRANTSCAPACITY BUILDINGCASH CROPSCASH ECONOMYCASH SUPPORTCASH TRANSFERCASH TRANSFER PROGRAMSCASH TRANSFERSCHILD BENEFITCHILD GROWTHCHILD LABORCHILD NUTRITIONCHRONIC POVERTYCOMMUNITY ASSETSCONDITIONAL CASHCONDITIONAL TRANSFERCONDITIONAL TRANSFERSCONFLICTCONSUMPTION SMOOTHINGCOST EFFECTIVENESSCOVARIATE SHOCKSCREDIT ACCESSCREDIT CONSTRAINTCREDIT CONSTRAINTSCREDIT MARKETSDEVELOPMENT ECONOMICSDROUGHTECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC GROWTHECONOMIC RECOVERYECONOMIC SHOCKEMERGENCY FOODEMPLOYMENT STATUSENTREPRENEURSHIPEXPENDITUREEXPORTEREXTENDED FAMILIESEXTERNALITIESEXTREME POVERTYFARMERSFEE WAIVERSFINANCIAL CRISISFINANCIAL MARKETSFIXED COSTSFLOW OF INFORMATIONFOOD AIDFOOD PROGRAMFOOD SECURITYFOOD SUBSIDIESFREE TRADEGENERAL EQUILIBRIUMGOVERNMENT EXPENDITURESGOVERNMENT POLICYGOVERNMENT SPENDINGGRANTS TO SCHOOLSHEALTH CLINICHEALTH PROGRAMHOUSEHOLD ALLOCATIONHOUSEHOLD INCOMEHUMAN CAPITALHUMAN CAPITAL INVESTMENTHUMAN CAPITAL INVESTMENTSHUMAN DEVELOPMENTHUMAN RESOURCESINCOMEINCOME DISTRIBUTIONINCOME GAINSINCOME GROWTHINCOME SHOCKSINCOME SMOOTHINGINCOME SUPPORTINCOME TRANSFERINCOMPLETE MARKETSINDICATOR TARGETINGINEQUALITYINFORMATION ASYMMETRIESINFRASTRUCTURE INVESTMENTINSTITUTIONAL DEVELOPMENTINSTRUMENTINSURANCEINSURANCE MARKETSINTERNATIONAL BANKINTERNATIONAL FOOD POLICYIRRIGATIONLABOR ALLOCATIONLABOR DEMANDLABOR DISINCENTIVESLABOR FORCELABOR FORCE PARTICIPATIONLABOR INTENSIVE WORKSLABOR MARKETLABOR MARKET PROGRAMSLABOR SUPPLYLAND MANAGEMENTLEVYLIQUIDITYLIQUIDITY CONSTRAINTSLIVESTOCK OWNERSHIPLIVING STANDARDSLOCAL ECONOMIESLOCAL ECONOMYLOCAL FARMERSLOCAL INFRASTRUCTURELOSS OF INCOMEMALNUTRITIONMARGINAL COSTSMARKET DEVELOPMENTMARKET ECONOMYMARKET FAILURESMICRO-ENTERPRISESMICRO-FINANCEMIGRATIONMORAL HAZARDMOTIVATIONNUTRITIONAL STATUSOLD AGEOLD AGE PENSIONOPPORTUNITY COSTOUTPUTSPENSIONSPOLITICAL CONSTRAINTSPOLITICAL ECONOMYPOLITICAL PARTICIPATIONPOLITICAL SUPPORTPOORPOOR AREASPOOR COUNTRIESPOOR HOUSEHOLDSPOVERTY ALLEVIATIONPOVERTY REDUCTIONPOVERTY TRAPSPRECAUTIONARY SAVINGSPREVENTATIVE HEALTHPRICE DISTORTIONSPRICE SUBSIDIESPRINCIPAL-AGENT PROBLEMPRODUCTIVE ASSETSPRODUCTIVITYPRODUCTIVITY GROWTHPROFITABILITYPROPENSITY TO SAVEPUBLIC ASSETPUBLIC ASSISTANCEPUBLIC POLICYPUBLIC RESOURCEPUBLIC TRANSFERSPUBLIC WORKSPUBLIC WORKS PROGRAMSRAINFALL INSURANCEREMITTANCESRESOURCE ALLOCATIONRETURNRETURN ON INVESTMENTRETURNSRISK AVERSIONRISK MANAGEMENTRISK REDUCTIONRISK TAKINGRURALRURAL PUBLICSAFETYSAFETY NETSAFETY NET PROGRAMSSAFETY NET TRANSFERSSAFETY NETSSAFETY ROPESAFETY ROPESSAVINGSSCHOOL ATTENDANCESCHOOL ENROLLMENTSCHOOL FEEDINGSCHOOL FEEDING PROGRAMSSEARCH COSTSSERVICE PROVIDERSSHARE OF BENEFITSSOCIAL CAPITALSOCIAL COHESIONSOCIAL INSURANCESOCIAL POLICIESSOCIAL POLICYSOCIAL PROGRAMSOCIAL PROGRAMSSOCIAL PROTECTIONSOCIAL SAFETY NETSSOCIAL SECURITYSOCIAL TRANSFERSOCIAL TRANSFERSSUBSIDIZINGTARGETED TRANSFERSTARGETINGTAXTRADE REFORMSTRANSFER INCOMETRANSFER PROGRAMTRANSFER PROGRAMSTRANSFER RECIPIENTSUNEMPLOYEDUNEMPLOYMENTUNEMPLOYMENT BENEFITSUNEMPLOYMENT INSURANCEVULNERABLE CHILDRENWAGESWATER AVAILABILITYWEATHER RISKWELFARE PROGRAMSWELFARE STATEWORK FORCEWORK INCENTIVESWORKFAREWORKS PROGRAMWORKS PROJECTWorld Bank10.1596/1813-9450-6437