The United States: welfare, work and development

It has long been claimed that social welfare programmes harm economic devel opment. These programmes, it is alleged, depress work incentives, divert sc arce investment resources to 'unproductive' social services and create a la rge underclass of dependent individuals. Welfare reform in the United State s intends to reverse these allegedly negative economic effects by requiring welfare clients to work. It also hopes to reduce poverty. This article exa mines these claims. It discusses the welfare reform programme and concludes that its impact on both economic development and poverty has been minimal. Policies that transcend the current obsession with work, promote sustained economic development and invest in human capabilities are more likely to s ucceed.