Social security and taxation operate jointly to overcome individual deprivations, reduce income inequality and promote development, bringing ‘taxation into social protection analysis and planning’. There are several ways in which governments can create fiscal space to finance social protection programmes (e.g. social pensions). The idea is to create new sources of revenue – sustainable in the long-run – which can be used to finance social pensions, without building new liabilities and without distorting macroeconomic stability.
A decade has passed since the World Bank introduced its social risk management framework and launched its first social protection strategy. During that time, the work of the World Banks social protection sector has grown, innovated and played a critical role in supporting developing countries, most notably in managing the social impacts of the recent global economic crisis.
Principles of Child and Gender Sensitive Social Protection
In this paper, we present an analytical framework to identify the links between macroeconomic and social protection policies from an inclusive growth perspective. In the first section, we present the objectives of macroeconomic and social protection policies. In the following section we analyze how these policies interact. The third section is dedicated to an analytical framework of how social protection policies affect macroeconomic growth, especially growth.