http://www.unrisd.org/80256B3C005BCCF9/httpNetITFramePDF?ReadForm&parentunid=37D43D097C1BF0E6C1256C77004C1353&parentdoctype=paper&netitpath=80256B3C005BCCF9/(httpAuxPages)/37D43D097C1BF0E6C1256C77004C1353/$file/vartlong.pdf

This document discusses, in particular, the role of social policies in alleviating the negative effects of risks and uncertainty as well as of distributional conflicts - both inevitably associated with economic growth and development. It outlines some economic arguments and shows that they can at least shed some light on the experience of such countries as Finland, characterized by small size, corporatist political and economic structures and "lateness" in industrialization and economic development.