Social Risk Management: A Conceptual Fallacy of Composition

Abstract

The World Bank is developing a new conceptual framework for social protection. Designed to be more appropriate than conventional contributory social security for meeting the multitude of labour market and non-labour market risks faced by the chronic poor in developing countries, this conceptual framework is called ‘social risk management’ (SRM). A critical analysis of the SRM framework is presented, with the aim of sharing with risk practitioners and academics alike some important insights into this recent and largely unreported development in social policy. The article concludes on a somewhat critical note by stating that, although there remains a recognised need to improve mechanisms of social protection for the poor in developing countries, the SRM framework appears not only to be conceptually flawed from the perspective of risk theory, but also inherently limited in its ability to fulfil its key policy aim of poverty alleviation through the better management of risk.