Growth-promoting social safety nets  Publicly funded,
noncontributory transfer programs targeted to the poor and
vulnerable have a long history. Free food distribution was a
feature of Egypt in the time of the Pharaohs and of Rome during
its Imperial age. England had a succession of “Poor Laws” dating
from the 16th century that provided assistance to those unable
to work, while Germany inaugurated components of the modern
welfare state in the late 19th century. These programs,
typically referred to as social safety nets or social protection
programs, are now ubiquitous in developed countries and are
becoming more common in developing countries. They are,
however, controversial.  While proponents of such programs see
them as a means of ensuring that the benefits of economic growth
are shared widely, critics see them as squandering scarce public
resources and doing little to promote longer term development,
while at the same time discouraging work and investment.
Overlooked in this often polemical debate is the