2013 Chapters (Layout Features)

Social Protection Without Protectionism

Stiglitz, Joseph E.

The various papers in this volume highlight different dimensions of the rise in insecurity. The increased threat of terrorism may have decreased our sense of physical security. With growing numbers of Americans not covered by health insurance, there is an increase in “health insecurity.” In addition, global warming confronts everyone around the world with an important new set of environmental risks. This chapter focuses on one key dimension of insecurity—economic insecurity. This chapter argues that a need for enhanced social protection exists and that this social protection will not only decrease the demand for protectionism but also enhance the efficiency of the economy. This chapter then describes some innovative forms that this social protection might take. First, however, the theory of market failures on which the principle of social protection lies is explained, and how globalization may have made the problem of providing social protection more difficult is described.