FINANCING AND INSTITUTIONAL DESIGN OF SOCIAL PROTECTION SYSTEMS IN DEVELOPING ECONOMIES

Social protection systems play a decisive role in poverty reduction, inequality mitigation, and resilience building against systemic shocks. This article examines the institutional design and financing architecture of social protection in developing economies, emphasizing fiscal sustainability, digital transformation, and shock-responsiveness. Using international data from multilateral institutions, the study demonstrates that diversified revenue sources, integrated program governance, and adaptive financing instruments significantly enhance system effectiveness. The findings highlight that social protection should be treated as productive investment rather than consumption expenditure, given its macroeconomic stabilizing effects.