Abstract
Countries which have been the most successful in achieving long-term sustainable growth and poverty reduction have achieved this — to a greater or lesser extent — by putting in place extensive systems of social security. Clearly, social security has only been one factor among many and, of course, one might ask whether there is a potential chicken and egg dilemma: what came first, growth or social security? In reality, though, evidence suggests that growth and social security have been mutually interdependent and have together contributed to the long-term success of these countries. There is no doubt that OECD countries have made the conscious decision to invest heavily in social security — often at more than 15 per cent of GDP — as part of their long-term growth and poverty reduction strategies.