Social protection is an important approach towards reduction of poverty and multidimensional deprivation. This approach looks for the processes, policies and interventions which mitigate the risks and constraints that poor and vulnerable people face; which will make them less insecure and less poor, and more able to participate in economic growth.
The most common types of social protection are Labor market interventions, Social insurance and Social assistance that all of these methods are used to reduce poverty. One of the most important factors in social protection programs is the way it is financed. It is important to choose a financing method that, while supportive, does not lead to budget deficits and inflation; because inflation itself exacerbates poverty.