The conversion from planned to market economies spawned new opportunities and challenges in Central and Eastern Europe and Central Asia. Since the social safety nets of guaranteed employment and retirement security disintegrated, the transition governments are trying to develop new social protection systems or adapt the old ones to emerging welfare needs and fiscal realities. Political upheavals, macroeconomic instability, and the difficulty of implementing reforms have hampered progress. Thus the World Bank needs to address social protection issues to inform future Bank activities. To that end, this report presents a social protection strategy for transition economies rooted in three pillars of analysis: a conceptual framework based on risk management, an understanding of the context, challenges, and choices in each country, and Bank experience in social protection in the region.