Social protection plays a central role in overcoming the poverty traps that contribute to chronic poverty, especially through addressing the insecurity and vulnerability faced by the poor, and in improving human capital. It can also help to develop a social compact in poor countries. A just social compact is the most effective way of eradicating chronic poverty.
Social protection can contribute to pro-poor growth in a variety of ways, including facilitating the accumulation and protection of assets by those in poverty; facilitating household resource allocation; and facilitating access to economic opportunities. Donors can help lower the financial costs of setting up social protection in chronically deprived countries, and more generally facilitate its financing, through improving the predictability and stability of aid flows.
CPRC Policy Brief No. 9, Chronic Poverty Research Centre, London, UK, 6 pp.