Although the notion of developmental welfare is not new, it is only in rece
nt times that its central premises have again attracted attention in social
policy circles. Since developmental welfare offers an opportunity to chall
enge the neo-liberal claim that social expenditures harm the economy, and t
hat economic development requires retrenchments in state welfare, more info
rmation about this approach is needed. This article discusses the developme
ntal welfare approach with reference to neo-liberalism's current hegemonic
influence on social policy. It traces the historical evolution of developme
ntal welfare, discusses its theoretical implications and outlines its pract
ical proposals.