Abstract
The chapter conceptualizes and theorizes social policy in the context of poverty and inequality. Inequality and poverty are two concepts that are by definition multi-dimensional and, therefore, require a comprehensive approach. The chapter argues that different theories underpinned social policies of welfare states in their fight against extreme poverty and inequality. The chapter, therefore, seeks to examine the following concepts and theories as they influence the development and reform of social policies: conceptual clarifications of social policy, poverty, social exclusion and inclusion, social cohesion or equity, theoretical underpinnings that influence social policy development and reforms, and the new social policy paradigm.
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