Social Security and Economic Uncertainty: Towards a Developmental Rationale

Abstract

The idea that social security is an effective means of addressing economic uncertainty has provided a powerful rationale for its expansion and institutionalisation over the years. However, this rationale has been challenged by neo-liberal economists on the ground that social security is actually the cause of economic uncertainty. Their claim is now providing a rationale for the retrenchment and privatisation of social security. This paper offers yet another rationale which emphasises the positive economic benefits of social security. By promoting developmental forms of social security, it contends that governments can combine social protection with economic growth and effectively counter the neo-liberal challenge.