SOAS Research Online

Abstract

The global financial crisis has emphasised the fundamental role of social protection institutions in developing countries. There is also growing evidence that countries with programmes focused on children have a greater chance of minimising the longer-term effects of the crisis. However, financing remains a major challenge: the effects of a slowdown in growth are likely to reduce the fiscal space in low-income countries. Focusing on sub-Saharan Africa and Latin America in particular, this article shows that improved fiscal balances, debt relief, aid and revenues from natural resources could provide a window of opportunity in many countries. Raising the ratio of tax revenues to GDP is, however, the main challenge in the medium term.