It is frequently claimed that the most innovative feature of social protection, in contrast to safety nets, is that it has the potential to reduce the vulnerability of poor people to the extent that they can manage moderate risk without external support. This has led to an expansion of large-scale ‘productive safety net’ programmes. The potential to reduce vulnerability so that people can move off social protection provision is popularly termed ‘graduation.’ Clearly not all households will ‘graduate’, as some chronically vulnerable and poor people will always need social assistance. However, the vision for ‘graduation’ rests on the assumption of the existence of a large population of low-productivity, risk-prone and often poor households. Under this scenario, if risk can be underwritten through appropriate social protection then significant numbers of poor people have the potential to move out of vulnerability and extreme poverty into more productive and resilient livelihoods.