The past decade has witnessed a renewed interest in social policies, and some governments have increased social spending to soften the impacts of economic reform. These changes have come in the wake of widespread realization of the failure of the neoliberal economic model to generate economic growth and dynamism, and to reduce poverty. At the same time, processes of political liberalization have opened spaces for social movements in many parts of the developing world to articulate demands for more effective social policies that mitigate the effects of market failures and reduce inequalities. These contestations have coincided with a rediscovery of 'the social' in the policy oriented literature, widely understood to embrace the cluster of social and political institutions, norms, and relationships that define the boundaries of market exchange, reduce transaction costs and enhance social and political stability. Polanyi's (1957) seminal work that showed the market to be a political and social construct is widely _________ * We thank Alexandra Efthymiades for excellent research assistance, James Heintz for the preparation of tables, and Francie Lund and Silke Steinhilber for extensive comments on an earlier draft of this chapter.