The role of social protection in achieving resilient and inclusive rural transformation

Abstract

Rural and structural transformation can lead to large improvements in welfare, but the outcomes depend on the inclusivity of transformation processes. Climate change, transitions to low productivity employment and divergent nutrition trends make resilient and inclusive transformation increasingly challenging to achieve. By bringing together findings on the diverse range of impacts of social protection from different strains of literature, this paper argues that social protection can make rural transformation more resilient and inclusive through two key pathways: i) increased human capital including healthy diets and nutrition and ii) improved resource allocation and risk management. However, this requires implementing social protection as an integral part of rural transformation policies, expansion of social protection coverage to enhance resilience and inclusivity and acknowledging trade-offs from multiple policy objectives. • Social protection can lead to more resilient and inclusive rural transformation. • Expansion of social protection coverage is necessary to address household risks. • Social protection improves human capital and ability to manage risk. • Social protection alone is not likely to generate major livelihoods transitions.