SOCIAL EXCLUSION AND INCLUSION IN GEORGIA: A Country Social Analysis Overview April 2017 1 BACKGROUND Georgia has an impressive record of reforms and a tangible cost to the economy (De Laat, 2010; World is on a steady track of poverty reduction, but Bank, 2013; Ferrant and Kolev, 2016).2 ensuring that of its all citizens can equally benefit from and contribute to its development remains This study focuses on one particular aspect of a challenge. During the first decade of this century, Georgia’s path to inclusive growth: social inclusion. Georgia’s economy grew by an average of 5 percent It uses the concepts of social inclusion and exclusion or more per year, but the poorest 40 percent of the to help understand why some members of society population experienced limited and even negative may be consistently left behind from the development growth (Bussolo and Lopez-Calva, 2014). This trend process, and to provide insights into policies that can has changed since then, and in the period 2010-2014, have a transformational impact on the situation of the poorest 40 percent registered higher rates of systematically disadvantaged groups and individuals. growth than the national average (World Bank 2015). Social exclusion, as described in more detail below, Still, with approximately a third of the population living implies that certain members of society, due to their in poverty—32 percent of citizens live under USD social or cultural identity, may face complex barriers 2.5/per day—Georgia registers one of the highest and, due to them, have persistently lower outcomes— poverty rates in Europe. Moreover, sixteen percent of e.g., access to quality education, health, employment, its population experiences persistent poverty. and income—relative to the rest of society, thus not achieving their full potential. There are multiple reasons why Georgia should make inclusive growth a priority. Global research The challenge of socially inclusive growth is not shows that in order to sustain growth, policymakers unique to Georgia. Today, over 70 percent of the should strive towards an inclusive process – both political world’s poor live in middle-income countries (World and economic. Societies divided by inequality, ethnic Bank 2015). As countries continue to develop, this fragmentation, or those whose institutions are otherwise poses a new challenge of finding better solutions unable to manage conflict are less able to preserve to ensure that segments of the population are not their level of growth and development in the long consistently left behind. Marginalized populations in run (Rodrick, 1999; Acemoglu and Robinson, 2012).1 middle-income countries encompass diverse groups, Ensuring equal opportunities for all has both an intrinsic such as ethnic or religious minorities, migrants, value – it is the right thing to do - and an instrumental refugees, displaced persons, persons with disabilities, one in sustaining long-term development goals. and residents of rural or remote locations, among Exclusion is also costly. A growing body of evidence others. In many high and middle-income countries, reveals that failure to address barriers for groups, who women continue to face barriers to fully achieve their are systematically excluded or marginalized, can have potential as citizens and agents of growth. 1 Rodrick, Dani. (1999) Where Did All the Growth Go? 2 World Bank (2013) Inclusion Matters: The Foundation for External Shocks, Social Conflict and Growth Collapses. Shared Prosperity. The World Bank, Washington DC. Journal of Economic Growth 4: 385-412; Acemoglu, D. and Note: Studies estimate that exclusion of Roma minority Robinson (2012) Why Nations Fail? The Origins of Power, has cost 887 million euro in lost productivity in Romania Prosperity and Poverty. Crown Publishing House, New York, and over 320 million euro in Serbia (de Laat, 2010) Lost NY. incomes from excluding people with disabilities from the labor market has been estimated at over USD 1.1 billion in Morocco, over USD 3.6 billion in South Africa (Banks, Lena M. and Polack, Sarah. The Economic Cost of Exclusion and Gains of Inclusion of People with Disabilities: Evidence from Low and Middle-Income Countries. Ferrant, Gaelle and Alexander Kolev. 2016. The Economic cost of Gender- based Discrimination of Gender Institutions. 3 In Georgia, social inclusion is an imperative for used in twentieth-century Europe, the notion of social economic development as well as for peace and exclusion and inclusion reflected concerns for growing stability. Ethnic and religious diversity, regional divisions in wealth and opportunities across population economic discrepancies, and mountainous geography groups. The premise of social inclusion goes beyond make Georgia more susceptible to growing inequalities economics to also include the social, political, and across social and spatial groups. Evidence of systematic cultural processes that enable all members of society discrepancies in incomes and sources of incomes to participate and benefit on equal terms in society. across different social groups—men and women, This broader notion of social inclusion has been minorities, rural and urban, internally displaced persons further reflected in the rise of measures such as and the rest of the population—reveals that not all multidimensional poverty and human development citizens may have the same opportunity to prosper.3 indices (Atkinson and Marlier 2010.)5 Demographic shifts and a steep population For the purposes of this research, social inclusion decline as registered in the latest Census4 is defined as the process of improving the ability, are another reason why ensuring equal participation opportunity, and dignity of people to take part in and opportunities is also a smart economic choice. society.6 Georgia is also vulnerable to external geo-political factors, including global security concerns such as Individuals and groups can be disadvantaged based on religious extremism, which necessitate a renewed their identity (ethnic, religious, gender, etc.) as well focus on strengthening social cohesion. Through its as other characteristics (their age, place of residence, international commitments, including those to the having a disability, being affected by conflict or SDGs and the EU Association Agreement, Georgia has displacement, etc.). Social inclusion is a dynamic process. already demonstrated a commitment to both social An individual may suffer social exclusion in a specific economic and social inclusion goals. stage of his/her life due to their age, place of residence, or circumstances such as conflict, displacement, or This research adds knowledge on the ways in which employment status. Moreover, exclusion is shaped by social exclusion and inclusion manifest themselves in people’s multifaceted identities and disadvantages can Georgia. Looking through the lens of excluded groups be multiplied if various characteristics collide. and individuals, it sheds light on the ways in which social inclusion and exclusion are understood in Georgia, ways in which they affect socio-economic outcomes The concept of social inclusion, as introduced in the for selected groups, as well as some of the underlying World Bank’s flagship report, Inclusion Matters, causes of exclusion. As such, the report seeks to and discussed in this study, captures a concern for inform broader efforts by policy-makers, international ability, opportunity, and dignity. Ability is linked to the development partners including the World Bank Group, multiple endowments that individuals receive such as Georgian citizens, scholars, and civil society towards education, healthcare, skills, connectivity to services advancing inclusion and equal opportunities for all. and infrastructure. Opportunity relates to the notion of providing all individuals with an equal access and quality of essential services, and thereby an equal chance to enhance their well-being. Dignity relates to notions of Defining Concepts: respect, recognition, and attitude, i.e., the way groups Social Inclusion and Exclusion and individuals are treated by others in society. Lack of dignity perpetuates exclusion or self-exclusion of The concept of social inclusion has been evolving individuals or groups; it may perpetuate their invisibility over the past two centuries to capture states’ in statistics and consequently in policies if they are not aspirations for equitable development. Originally recognized as citizens in full capacity.7 3 For certain social groups, e.g. persons with disabilities and 5 Atkinson, Anthony and Eric Marlier. 2010. Analysing and IDPs, social assistance and social transfers have played a Measuring Social Inclusion in a Global Context, United particularly large role in sustaining their livelihoods. This Nations Publication, New York, NY. implies not only costs to the economy but also to the dignity 6 This definition and the conceptual framework of this study, and independence /empowerment of these groups. focusing on characteristics, domains, and roots of exclusion 4 Between 2002 and 2014 Georgia “lost” about 15 percent of are based on the World Bank’s 2013 flagship report Inclusion its population: from 4.4 million (Census, 2002) to 3.7 million Matters: The Foundations of Shared (Census, 2014). 7 For example, children or adults with disability may be omitted as household members during household surveys or not registered at birth. 4 Social exclusion overlaps with, but is not synonymous Attitudes and perceptions play an important role with, poverty. Inclusion and exclusion encompass not in defining who is excluded in a particular social only notions of poverty, but also the many economic, context. Attitudes and perceptions can shed light on social, and political relations that bind members of a the processes through which inclusion or exclusion community together (Silver 2007). Understanding social takes place. For example, prejudices, stereotypes, exclusion deepens our knowledge of multidimensional or misperceptions linked to persons with certain poverty in a specific country context. The concept characteristics can affect the quality of services or of multidimensional poverty affirms that poor people access to opportunities available to them. Perceptions experience deprivation in multiple domains, such as (including self-perceptions of exclusion) have been education, employment, health, living conditions, linked to lower socio-economic outcomes. For incomes, and disempowerment from voice and example, negative attitudes towards women’s participation. The concept of social exclusion examines education, access to jobs, or holding leadership the underlying historical, social, political, and cultural positions have been associated with lower outcomes processes that also play a role in explaining why certain for women (World Bank, 2013). groups continue to face lower endowments. Those who are excluded generally suffer from multiple and Exclusion and inclusion manifest themselves both in interrelated disadvantages that result in both economic tangible and intangible ways, differences in socio- and social deprivation. economic outcomes as well as less tangible barriers. The World Bank (2013) report introduces a framework A few more features help define the concept of of exclusion and inclusion in three domains: markets, social exclusion as discussed in this report. Firstly, spaces, and services (see Figure 1). These three social exclusion is both a process and an outcome; domains cut across all aspects of an individual’s life. it encompasses both the knowledge of particular Experiences of exclusion, either direct or subtle, are individuals or groups with identities that are prone likely to be revealed in one or more of these domains. to exclusion as well as the processes by which they are excluded (stigma, discrimination, social norms Figure 1: A framework for propelling social inclusion or practices, inequitable distribution of resources, political barriers to voice and participation, etc.). Secondly, social exclusion is dynamic and may change LAND over the course of a person’s lifetime as a result of HOUSING LABOR Markets either changes in personal circumstances or external CREDIT MARKETS SERVICES policies and practices. Thirdly, the consequences of SOCIAL PROTECTION social exclusion can accumulate and cause barriers INFORMATION ELECTRICITY that are particularly difficult for specific sub-groups to TRANSPORT EDUCATION HEALTH overcome. For example, an ethnic minority woman WATER in a remote rural area may face barriers on account SPACES Spaces Services of her gender, ethnic identity, and location and thus POLITICAL PHYSICAL have lower opportunities than a person without – or CULTURAL with only one of – these characteristics. Individuals and groups are affected by exclusion in more than one way through their multiple identities or characteristics: being a woman, being a member of an ethnic or linguistic minority, having a physical disability, living in a remote area, etc.). ABILITY OPPORTUNITY DIGNITY Source: World Bank, 2013. Inclusion Matters: The Foundation for Shared Prosperity 5 Methodology and Structure The present study uses this framework to present Specifically, this study sets out to understand how the landscape of social exclusion in Georgian society social exclusion is understood in the context of and its implications for development. It seeks to Georgia, who is perceived as socially excluded, understand how exclusion and inclusion play out in the and in what domains are they excluded, based Georgian context, what characteristics (social, cultural, on both perceptions and existing evidence. In physical, geographic, etc.) are most commonly addition, for two case study groups, the study uses associated with being included or excluded, and to qualitative research to look deeper into the root what extent the characteristics of exclusion correlate causes and processes that drive exclusion of selected with poverty and other socio-economic outcomes. groups. Figure 2: Framework and structure of CSA report How is Exclusion Understood in Georgia? How is social exclusion understood in Georgia? What do citizens perceive as drivers social inclusion in their country? Who is Excluded? Exclusion Which groups are perceived as socially excluded Mapping and what evidence exists to support that? In What Domains Are They Excluded? What are the key domains (markets, spaces, services) where exclusion is demonstrated? Why Are These Groups Excluded? Case What are the underlying factors studies and processes that cause or drive exclusion? A social inclusion and exclusion lens is also important reduce disparities for vulnerable groups. It draws to highlight the invisibility of groups that face such on scholarly as well as media sources; government constraints and need additional attention. In this reports; research by international organizations; sense, a social inclusion analysis should not only lead to public opinion surveys; and legislation, policy, better targeted policies, but also improvements in data and program documents by the Government of and coordination among existing institutions, programs, Georgia. and services that serve socially and economically • Quantitative data: Analysis of Integrated marginalized populations to better assess their needs. Household Survey data from 2014, collected by the Georgian National Statistics Agency (Geostat). The report draws on a desk review, quantitative For groups with relatively low representation (e.g., and qualitative data, and two roundtable discussions persons with disabilities, 3.8 percent of the IHS in Tbilisi held at the beginning and at the end of the sample), aggregated data for a three-year period fieldwork phase. (2012-2014) was used. • Desk review: A literature review of Georgian • Qualitative data: Two rounds of qualitative and English language sources pertaining to social research were conducted. One round informed exclusion and the situation of specific groups was the ‘exclusion mapping’: it consisted of twelve carried out. This review includes an overview of focus group discussions (FGDs) in the capital city, legislation, policies, and programs designed to rural, and small town locations, and fourteen key 6 informant interviews (KIIs) with Government, Key Findings international organizations, NGOs, and academics. How are social exclusion and inclusion A second round of FGDs and KIIs informed the understood in Georgia? case studies focusing on the Azerbaijani minority and persons with disabilities. Georgian legislation does not explicitly define what ‘social exclusion’ means in the Georgian context. • Roundtable discussions: Two roundtable However, the GoG does identify several vulnerable discussions were held in Tbilisi with Government, groups that it targets for social assistance programs. international organizations, and NGO These groups are IDPs, war veterans,8 persons with representatives. One was conducted at the disabilities (PWDs), victims of political repression inception stage of the study (November 2015) of the Soviet regime, the elderly, those living in the to guide the scope and research question. A most extreme poverty, and minors from needy second discussion took place at the conclusion of households. Residents of high mountain settlements the fieldwork (June 2016) to present emerging are eligible for financial aid and tax exemptions. The findings and collect feedback to guide policy eligibility of settlements and the set of benefits were recommendations. updated through the recent Law on High Mountain Regions approved in December 2015. In addition, the The report is organized in four chapters: Chapter I Government offers special programs and non-financial (Introduction) includes the rationale for conducting a support to facilitate the re-integration of certain groups, social inclusion analysis, a discussion of the conceptual such as ex-convicts, into society. framework for the study, definitions of social inclusion/ exclusion, a statement of the objectives and a A qualitative examination of how citizens and description of the study’s methodology. Chapter II experts understand exclusion and inclusion points (Exclusion Mapping) presents a broad country-level to a few consistent characteristics of how these ‘exclusion mapping’ to answer the questions: how processes play out in Georgian society. Informal is social exclusion understood in Georgia; what are networks (family, social, and political connections as the key perceived drivers of social inclusion; who is well as support by neighbors) are highlighted as the excluded and in what ways. Chapter III (Experiences of strongest determinants of being ‘included in society’ Exclusion) provides an in-depth qualitative examination as well as gaining access to opportunities for social of root causes, domains and outcomes of social and economic advancement. Respondents note that exclusion for two case groups (the Azerbaijani minority relying on informal networks in order to be included and persons with disabilities). Chapter IV (Conclusions or accepted in society can help one gain better and Recommendations) makes recommendations for access to education, a job, etc. But the important inclusive policy planning at the country level, as well as role of networks has negative implications too; it can specifically for the two case study groups. perpetuate exclusion for those whose social networks are limited to people who are relatively poor and/ or powerless. Respondents also consider education, employment, and Georgian language proficiency to be amongst the strongest determinants of inclusion and opportunity, followed by other factors such as place of residence, being an ethnic Georgian, one’s religious affiliation, and the overall environment of tolerance in a community. 8 According to the Law on Veterans of War and Military Forces of Georgia (reg. no. 280.070.000.05.001.000.120), the following groups are considered as war veterans: participants of World War II; persons who took part in military actions abroad; participants of military actions for restoring Georgia’s territorial integrity, freedom, and independence (this includes veterans of wars in Abkhazia and South Ossetia); and retired military personnel. 7 Figure 3. What drives inclusion: responses from FGDs (left) and KIIs (right) Source: FGD and IDIs conducted by CRRC-Georgia in Mar-Apr 2015; font size reflects number of references. Prior public opinion studies in Georgia confirm the persons with disabilities. Other highlighted groups strong relationship between strength of informal are religious minorities, ex-convicts, homeless and social networks and perceptions of poverty. street children, sexual minorities/LGBT population, Caucasus Barometer data demonstrates that there is elderly, people living in high mountain areas and rural an inverse relationship between people’s perception of populations more broadly, women, people who are their socio-economic status and their ability to rely on poor and those who are unemployed, as well as youth others during a crisis. The majority of respondents with NEETs (not in employment, education, or training). As a self-reported ‘good’ economic status have people mentioned above, the premise of this study that every they feel close to and can rely on in difficult times. By individual may be excluded in multiple ways; individuals contrast, less than a third of respondents with perceived may belong to one or more of the groups listed below ‘poor’ socio-economic status report that they can rely and as such be subject to multiple forms of exclusion, on others for help (Mestvirishvili, 2012.) increasing their overall vulnerability. An overview of social groups that share the Who is excluded? above characteristics gives an idea of the relative Participants of qualitative research—key informants, proportion of persons belonging to these categories and randomly selected focus group participants— in the country’s population. For some of the identified generally concur in identifying certain groups as categories—such as homeless persons and street the most likely to be excluded in Georgia. These children, ex-convicts, LGBTQI population, etc.—there include, most prominently, ethnic minorities and are no reliable national statistics. The share of persons Figure 4: Which groups are socially excluded: responses from FGDs (left) and KIIs (right) Source: FGD and IDIs conducted by CRRC-Georgia in Mar-Apr 2015; font size reflects number of references. 8 with disabilities is also believed to be significantly not been possible for all groups in the framework of under-estimated. Data, based on registered recipients the current study. The relative invisibility or small size of disability allowance, up until 2016, indicated that of some groups suggests data constraints, yet does not persons with disabilities account for approximately necessarily bear on the degree of their exclusion. The 3.3 percent of the population. The latest Census section below presents available evidence on specific data suggests a higher share of 8.7 percent. For other domains in which social exclusion also correlates categories, such as internally displaced persons (IDPs), with systematically lower outcomes – poverty and the data only reflects those displaced by conflict incomes, education, employment and earnings, for and their descendants holding official IDP status. An a small number of the groups identified as socially additional number of Georgians have been displaced excluded (ethnic minorities, persons with disabilities, by natural disasters: however, such households are not women, internally displaced persons). A more detailed systematically registered or eligible for state assistance. description of the situation of each of the groups identified in the exclusion mapping is presented in the Table 1: Share of Selected Groups, Identified as Vulnerable full report14. to Social Exclusion, in the Population Share in Total In what domains are they excluded? Categories of exclusion Population (%) As noted above social exclusion is not synonymous Ethnic minorities, 2014 Census 13 with poverty nor does it always lead to lower Religious minorities, 15 socio-economic outcomes. However, as in many 2014 Census countries around the world, for persons with specific Registered PWDs, 2015 3.39 social, cultural or physical identity, social exclusion for IDPs, 2015 7 some groups often correlates to persistent barriers in achieving basic opportunities. For example, in many People living in mountainous 9 areas, 2014 parts of the world equally skilled women earn less than men for the same kind of work; rural populations Unemployed, 2015 12.010 display higher rates of poverty and/or lower rates NEETs (not in employment, 9.411 of education which is a function not only of lack of education, or training) services or opportunities but also of social norms and Poor, 201512 31.213 attitudes towards them that perpetuate exclusion. Beneficiaries of subsistence al- 11.6 The overlap of multiple characteristics associated with lowance, 2014 social exclusion leads to accumulation of vulnerabilities and creates significant barriers for those individuals. Source: Produced by the CRRC based on data from GEOSTAT, the Ministry of Internally Displaced Persons from the Occupied Thus, exploring the links between social exclusion and Territories, Accommodation and Refugees (MRA) of Georgia socio-economic outcomes is important, as it may give (IDPs), and the Ministry of Labor, Health and Social Affairs (PWDs) insights into ways of tackling persistent poverty and 910111213 tailoring policies to better enhance opportunities for Further analysis of the situation of these groups such groups. based on the desk reviews and quantitative data reveals specific barriers that may obstruct One of the key challenges making it difficult to tackle opportunities for persons in these categories. Due the roots of exclusion is inadequate data and the to the broad scope of the social exclusion mapping invisibility of those who are excluded. Data constraints a robust examination of quantitative data and links mean that individuals may not be willing to report their between exclusion and socio-economic outcomes has belonging to a certain social group or associating with 9 Census 2014 reports a higher share of 8.7 percent 14 World Bank. 2017. Social Exclusion and Inclusion in Georgia: 10 Of the active labor force. A Country Social Analysis. World Bank, Washington DC. 11 Of the working age population, 15-64; otherwise, 7,6% of the total population 12 Absolute poverty based on USD 2.5 per day per person poverty line (2005 PPP). 13 Share of population under 60 percent of the median consumption (%). 9 a certain identity, e.g., LGBT, disability, religious identity. Although illiteracy has been almost fully eliminated It may also mean that no data is specifically collected on in Georgia, it currently affects only 6 percent of them because they are not targeted by specific policies, Georgian citizens with disabilities. Less than half (45 programs, or services that need to be monitored. Such is percent) of PWDs complete secondary education, the situation of ‘eco-migrants,’15 homeless, and working- about a fifth complete secondary professional age persons who are not in education, employment, or programs, and 12 percent complete a Master’s or training (NEETs). Even where data are available, it may equivalent university degree (compared to 24 percent be collected independently by various institutions, and of the general population). not always effectively shared and coordinated in a way that would facilitate a holistic approach to addressing people’s needs. Ethnic minorities (Azerbaijani minority) Evidence suggests that belonging to the Azerbaijani The sections below illustrate selected domains minority in Georgia is consistently correlated with where social exclusion and access to specific lower outcomes in incomes, education, and earnings markets, spaces, or services intersect and reinforce from employment. Data for ethnic Azerbaijanis in each other. These are discussed for four groups, Georgia was compared with that for ethnic Georgians identified in the mapping above as prone to social and Armenians. It is worth noting that other smaller exclusion. The full report contains more detailed minority groups may also face significant barriers that information for the wider spectrum of groups identified are ‘invisible’ in official statistics due to the smaller during the exclusion mapping. size of their population. As figure 5 shows, below, Azerbaijanis exhibit consistently lower incomes at Persons with disabilities every quintile. Persons with disabilities face barriers in most domains: education, employment and opportunity Figure 5: Average monthly income (in GEL) by wealth for an independent livelihood, access to all quintile and ethnicity physical spaces, and access to information, voice Average monthly income (in GEL) and representation. Persons with disabilities are a Among the poorest The income gap for largely heterogeneous group with specific individual 2000 members of the popu- lation, ethnic Armenians Azerbaijanis cuts across all quintiles, with even the needs that depend on the type of physical or mental 1800 are doing 12% better than ethnic Georgians at wealthiest Azerbaijanis being 34% worse off than impairments they experience, as well as on the age at 1600 a similar income level. the wealthiest Georgians. which they were first affected by it. Under-registration 1400 of disabilities is one of the main challenges to obtaining 1200 precise data on domains of exclusion for this group.16 1000 800 At 42 percent, the poverty rate among persons 600 with disabilities is higher than the national 400 average. Moreover, having a person with a disability 200 in the household may prevent other household 0 First Second Third Fourth Fifth members (most frequently women) from pursuing quintile quintile quintile quintile quintile employment due to their duties as caregivers. A number of Government and non-state initiatives exist Georgian Armenian Azerbaijani to address the needs of this group. Nevertheless, the relative fragmentation of data—as well as of policies, Source: GEOSTAT, IHS, 2014. Ethnicity based on self-declaration of the respondent. Income represents total household income programs, and services for PWDs—present challenges (monthly average in GEL). Statistical significance relative to to guaranteeing equal opportunities for this population. Georgian income levels for each quintile. 15 Persons displaced by natural disasters 16 The definition of disability in Georgia is mostly medical, and does not yet include a wider spectrum of limited abilities or impairments. This fact, combined with social stigma and relatively low coverage of services, which cause disincentives to registration, contributes to underreporting of the full scope of the PWD population in the country. 10 A quantitative analysis reveals that gaps in income such as land18 and finance, access to information, for Azerbaijani minorities are determined primarily markets, and networks, among others. In turn, these by the level of education, sector of employment factors are underscored by historical legacies, linguistic and one’s position or occupation.17 About 2 percent and cultural differences that act to perpetuate exclusion of Azerbaijani minority members are illiterate, and in these domains. A deeper look into the roots of this share is believed to be higher among women. social exclusion for Azerbaijani minority and how they An ethnic Azerbaijani man is 25 percent less likely to may affect outcomes in markets, spaces and services complete secondary education than an ethnic Georgian is discussed in the case studies section of this report. man. An ethnic Azerbaijani woman has an additional 10 percent lower likelihood of gaining a secondary Figure 7: Employment and earnings in agricultural sector school diploma. Moreover, these differences persist by ethnicity even when controlling for similar characteristics such Workers in the agricultural sector earn 55% of the nominal average income. Thus, as urban/rural location, age, education household employment in agriculture greatly impacts economic outcomes, having an outsized effect on ethnic minorities, who are more likely to be employed in this sector. size, etc. The language barrier for minorities and the evolution of bilingual school curricula also impact the Share of population within each ethnic group working in the agricultural sector quality of education in Georgian and minority/bilingual schools. In the latest Census only 20 percent of the Azerbaijani and 40 percent of Armenian population in Georgia declares proficiency in the national language. 48% 64% 81% Figure 6: Educational Attainment Rates by Ethnicity 176 GEL 220 GEL 160 GEL Average monthly income Percentage of population attaining education level or higher Georgian Armenian Azerbaijani 100 The major gap between the Azerbaijani minority and the rest of the Georgian 80 population occurs at the secondary level, with graduation rates for Azerbaijanis Source: GEOSTAT, IHS, 2014. Ethnicity based on self-declaration dropping by over 25% 60 The major gap between of the respondent. the Armenian minority and ethnic Georgians occurs at the higher level, with 40 graduation rates for Armenians dropping by 22% Women (rural and minority women) 20 Women in Georgia face significant obstacles with 0 regard to good quality employment, political Primary Secondary Higher Masters participation, and inclusion into social life. According Georgian Armenian Azerbaijani to the World Economic Forum’s Global Gender Gap index, Georgia ranked 82nd out of 145 nations. Source: GEOSTAT, IHS, 2014. Ethnicity based on self-declaration National gender statistics clearly indicate the lower of the respondent. level of women’s economic activities in Georgia. In With regard to employment and earnings, 2014, 32 percent of recently registered firms in 2014 Azerbaijani minorities are just as likely to be were owned by women. The gender wage gap is employed as members of other ethnic groups, especially pronounced. In 2015, the average monthly yet, they reap far lower revenues from their salary of male employees was GEL 1226.6 and GEL employment. A larger share of Azerbaijani population 759.7 for female employees.19 Figure 8 plots gender is rural and is employed in agriculture. However their earnings gaps, and the share of employees by gender, earnings from agriculture are significantly lower (Figure in a variety of sectors. The gap in earnings tends to 7). There are multiple factors that can potentially be even higher in sectors in which women prevail as explain lower earnings: access to productive assets employees. 17 Quantitative analysis, using the Oaxaca decomposition method, 18 Azerbaijanis have smaller average size of land plots (0.2 ha) demonstrates, on the one hand, that there is a significant ethnic compared to ethnic Armenians (1.2 ha) and Georgians (0.4 gap in wages across Georgian and Azerbaijani population - ha). Georgians earning 71.8 percent higher wages than Azerbaijanis 19 National average of 15 sectors including public administration. where wages are defined as income from hired employment, GEOSTAT - http://geostat.ge/index.php?action=page&p_ self-employment, and agricultural production. On the other id=149&lang=eng. hand, it shows that the greatest contributing factor to the ethnic wage gap are endowments such as education. 11 Figure 8: Gender Gap in Earnings Figure 9: Gender Gap in Educational Attainment by Ethnicity Ratio of men’s to women’s monthly earnings The male/female gap in the probability of attaining education level 2.2 14 Most gender gaps in The largest gaps across all education occur among ethnicities occur around the Azerbaijani minority. the secondary education 12 Gender gaps among level, with fewer women 2.0 Georgians and Armenians than men graduating Domestic Services 10 are lower than 1.6% secondary education. across educational levels. 1.8 8 Men earning more than women Hotels Health 1.6 6 Real Estate Public Administration 4 1.4 Mining Wholesale Finance Education 2 1.2 Other Social Services 0 Manufacturing 1.0 -2 Women earning more Transportation Primary Secondary Higher Masters than men 0.8 Electricity Georgian Armenian Azerbaijani The greater the proportion Percentage of womenof women in sector 0.6 employed in a sector, the larger the Construction gender earnings gap tends to be 0 10 20 30 40 50 60 70 80 90 100 0.4 Internally Displaced Persons (IDPs) IDPs are a heterogeneous group: many are well Percentage of women in sector integrated socially but others continue to face Social norms, attitudes, and practices play a strong barriers, specifically in housing and livelihoods. role in perpetuating gender gaps in employment Prior qualitative studies (World Bank 2016), including and earnings. On average, Georgian women have of respondents in this report, highlight that IDPs are the same or even higher completion rates of basic generally well accepted and integrated socially in their education and are equally represented in tertiary communities. However, this acceptance has not in education institutions. However, they are under- all cases translated into strong social networks that represented in positions of leadership as well as in support social or economic mobility such as finding a political and decision-making roles. Women occupy better job. only 17 out 150 Parliament seats; out of 9 regional governor, 12 city mayor and 69 municipality head positions, only one is taken up by a woman (as a head Ownership and quality of housing are two of the of municipality).20 Women are the primary caregivers main challenges that distinguish IDPs from the rest of children or sick family members, and are additionally of the population. While the majority of Georgians constrained by lack of widely available childcare services own their housing or live in family-owned housing, less (UNFPA, 2015; UNDP , 2013a; Dudwick, 2015). The than 40 percent of IDPs own their homes. About 22 majority of young people who are not in employment, percent live in new buildings and settlements,21 and 38 education, or training (NEETs) are women, and among percent still inhabit collective centers (hotels or other them, the largest group is homemakers. public buildings where they were given shelter upon resettlement). Though some collective centers have Ethnic minority women in Georgia are vulnerable been rehabilitated, living conditions in most of them both to barriers associated with belonging to an are substandard and overcrowded. Living conditions ethnic minority, and to strong and restrictive gender are one of the main challenges for IDPs. Apart from norms. Practices, such as early marriage, have been preventing social integration by physically isolating IDPs prohibited by law but persist in some rural areas and from other residents, poor living conditions contribute are said to be more widespread among minorities to health and psychological problems. (UNFPA, 2014). Figure 9 shows the gap in educational attainment by gender across ethnic groups. While gender differences are barely evident for Georgian and IDPs face greater barriers to independent and Armenian populations, with girls, in fact, registering sustainable livelihoods. Barriers to self-reliance mostly higher completion rates of secondary and tertiary stem from lack of productive assets, collateral, and education amongst ethnic Georgians, the gender gap long-term security. At 43.4% poverty rates among is significant amongst the Azerbaijani minority. IDPs are higher than the general population, as well 20 At the time of research, April-June 2016 21 These settlements have been built by the Government to accommodate IDPs. These programs have given IDPs the opportunity to own housing, many of these settlements are 12 as somewhat higher than those of other vulnerable Azerbaijani minority groups (persons with disability, 41% and elderly, Social exclusion of the Azerbaijani minority 40%). But perhaps the largest challenge for IDPs, in addition to housing discussed above, is that of having population is group is driven by a combination an independent livelihood22. IDPs are more reliant of factors as listed above. These factors, in turn, on remittances and social transfers.23 All IDPs with contribute to their exclusion from quality basic income less than GEL 1,250/month are entitled to education, quality health services, all public- and a government benefit of GEL 45/month. Many IDPs many private-sector employment opportunities have traditionally had rural livelihoods, but most of (see Figure 10). They impede their access to them do not own land or livestock after resettlement. information and potentially to market networks and Not owning a house prevents long-term planning support programs, and contribute to their very low and also means that they lack collateral and access to representation in national and even local government finance for entrepreneurial activities. bodies. Exclusion from these domains is ultimately expressed in persistently lower incomes, education, and employment outcomes.23 Why Does Exclusion Occur: Findings from case studies Reducing barriers for the Azerbaijani population has Two case studies help to illustrate why addressing to incorporate a tailored effort towards minimizing the root causes of social exclusion and designing the language and educational divisions. With only more socially inclusive policies are necessary to about 20 percent of the Azerbaijani minority proficient influence more equitable outcomes for all. These in the national language, gaps in information, quality of case studies focus on two relatively small social groups education, and access to essential markets and services in Georgian society: the Azerbaijani minority (5.6% of may broaden in the future. Azerbaijani respondents, the population) and persons with disability (a registered who participated in qualitative research in the Kvemo 3.3% of the population). For the Azerbaijani minority, Kartli region, share concerns that are common to the language barrier, geographic concentration, and those of many other Georgian citizens—job creation, historical legacies all play a role in persistently low quality and cost of education, better finance and educational achievement, quality of basic services, market opportunities for farmers. Still, the narratives incomes, and representation in decision-making. of respondents suggest that the accumulation of For persons with disabilities, persistent gaps in data language barriers, limited access to information, and and under-registration, social stigma from family and limited representation in local government poses society, lack of adaptation of the physical and digital additional barriers that could prevent the Azerbaijani environment, low coverage of services and weak population from benefitting from any future reforms in capacity to improve quality of services underlie their the abovementioned areas. ‘invisibility’ and exclusion from most areas of life. 22 World Bank (2013), World Bank (2016), UNDP (2013), 23 Social transfers (pensions, scholarships, assistantships) UNHCR (2016) comprise 36% pf IDPs’ income, compared to approximately 26% for the general population. 13 Figure 10. Roots, domains, and outcomes of exclusion overlook underlying barriers or ‘root causes,’ resulting for Azerbaijani minority in Georgia in misdirected policies. This case study analyzes some of the key roots to exclusion as identified by respondents. Outcomes of exclusion • Lower educational achievement Persons with disabilities—in contrast to service providers and caregivers—highlight the ability to • Lower quality of education be independent and to be recognized by others as • Lower incomes independent individuals as their greatest priority. • Lower earnings form agriculture This perception is aligned with the definition of • Lower voice and representation in decision-mak- inclusion used in this study (“improving the ability, ing functions opportunity, and dignity of individuals to take part in Domains of exclusion society”). It is from this perspective that the discussion of pathways of inclusion and policy recommendations • Quality of edcaution (curriculum, instruction) should be understood and advanced. • Level of educaitonal attainment (especially for women) Figure 11. Roots, domains, and outcomes of exclusion • Access to information for persons with disabilities (PWDs) in Georgia • Narrower social networks (including restricted markets for selling produce) Outcomes of exclusion • Concentration of employment in agriculture • Restricted representation /lower civic and political • Lower educational achievement; lower quality of participation education • Low employment rate Roots of exclusion • Lower incomes for PWD and their households • Language barrier • Geographic concentration • Dependence on others for basic functions • Historical legacies (affect asset distribution, limited • Lower voice and representation in decision-mak- representation in local government) ing functions Source: Author’s elaboration based on qualitative research Domains of exclusion Persons with disabilities • Access to physical spaces and mobility Persons with disabilitiess face multiple barriers that • Access to information reinforce each other as individuals move through • Socialization/narrower social networks their life cycles. These range from physical barriers • Education to negative attitudes by family and society that can • Employment also be internalized and lead to self-exclusion. For persons born with a disability, disadvantages begin to • Health and rehabilitation services accumulate early in life and are incremental. Lack of • Civic and political participation socialization as a child impedes performance in school and work later in life; exclusion from mainstream Roots of exclusion education prevents development of skills needed to realize one’s full potential; and lower educational • Gaps in data and registration (invisibility) achievement reduces the chance of finding satisfying • Low public awareness (attitudes from family and and well-paid employment. society) • Poor adaptation of the environment (infrastruc- Root causes, outcomes, and domains of exclusion ture and ICTs) are interrelated and mutually reinforcing. • Knowledge, capacity, and funding constraints un- Nevertheless, a social exclusion lens of analysis, as derly coverage and quality of services summarized in the figure above, demonstrates that merely concentrating on socio-economic indicators (summarized as ‘outcomes’ above) can cause one to Source: Author’s elaboration based on qualitative research 14 Conclusions and Recommendations European states, including Georgia, have increased their ranking on providing basic necessities; however, Social inclusion is paramount to the notion of scores on ‘opportunities’, and especially in the sub- shared prosperity and inclusive growth. Inclusive category of ‘tolerance and inclusion’, have been the growth and equitable outcomes are underscored hardest to raise. by many factors – resource allocation, quality of legislation, strength of institutions, capacity to develop Socially inclusive policies do not imply doing and implement policies and programs. They are also more but doing things differently to enable more underscored by social, cultural, and political processes Georgians to benefit and contribute as active that facilitate people’s access to markets, spaces, and citizens. Making infrastructure and services accessible services. Inclusive policies and institutions may still fail to persons with disabilities, and ensuring that citizens in to reach all members of society if processes that enable remote or rural areas can benefit from higher quality social exclusion persist. Moreover, by failing to address education, skills, jobs and livelihood opportunities social inclusion, states may be less effective in tackling would require that policy-makers use a broader complex challenges of persistent poverty. They may perspective to future reforms, one that incorporates a enable growing gaps in outcomes and opportunities concern for the various barriers that more vulnerable that are detrimental both to the economy and to members of society may face. security and stability in the long term. This report identifies three areas in which socially There are at least three compelling reasons why inclusive policies can be advanced in Georgia in Georgia should prioritize socially inclusive growth the short and medium term: (i) improving data and and ensure that no segment of the population is left evidence to better monitor outcomes for socially behind. Firstly, social inclusion has intrinsic value, i.e., it excluded groups; (ii) adopting a more comprehensive matters for itself. Secondly, it makes economic sense. approach to social policy and institutional coordination; It reduces dependence on the state and enables active and (iii) embracing locally-driven and locally-appropriate citizens to contribute to society and the economy. development solutions. Global studies have shown that persistent exclusion imposes a real financial cost on the state and all citizens (De Laat 2010; Molinas Vega et al. 2012; World Bank Improve data and evidence to monitor 2013). Thirdly, social inclusion is important for peace outcomes for socially excluded groups and stability. The country has grappled with internal conflicts, displacement, and conflict for over two There is need for more consistent data on who decades. Growing disparities in education and access is left behind. The situation of specific vulnerable to basic services for larger minority groups, such as the groups (for example, IDPs displaced by conflict) is Azeri minority in Georgia, could lead to further cultural consistently documented. Yet other groups are further and social fragmentation and even instability. Last but from policy-makers’ attention, or the full scale of not least, inclusive social policy is rooted in important their needs is unknown. Some groups, such as Roma international commitments (towards EU, UN SDGs) or homeless children, face severe marginalization, that are also reflected as national priorities in Georgia’s including a lack of identity documents, which Social-Economic Development Strategy ‘Georgia places them outside the scope of state assistance. 2020’. Effectively addressing the needs of this population is impossible without better documentation on their Moving from exclusion to inclusion is a long-term numbers, characteristics, and needs. Even the needs goal. It entails changing attitudes and stereotypes of groups such as children with disabilities, for which about excluded groups, and building institutions that dedicated programs and services exist, also tend to be can prevent and address exclusion in a comprehensive underestimated because a significant proportion of this manner. Policies tailored towards social inclusion can group remains unregistered. This may also concern set in motion processes to reduce specific barriers idle youth (NEETs), who are not officially tracked by (e.g., an adapted environment for PWDs), and help state programs or institutions but experience unique to improve awareness and visibility to certain groups barriers to becoming productive members of society or issues. However, the full impact of such policies is and of their communities. more likely to be felt in the long-term. Findings of the Social Progress Index (2016) reveal that many Eastern 15 Monitoring and evaluation of socioeconomic progress Still, state and non-state programs and services for vulnerable groups is equally important. Policies remain fragmented when it comes to addressing and programs that aim to reduce disparities for selected the multiple barriers faced by disadvantaged groups. groups need to be periodically evaluated for impact and Government programs offer financial assistance for then adapted as needed. Rather than evaluating success persons of certain status (IDPs displaced by conflict, war or failure, the purpose of continuous monitoring is to veterans, persons with medically diagnosed disabilities, enable incremental improvements so that programs and so on), as well as targeted means-tested assistance can, in the long run, tackle a wider set of barriers that to households.24 The GoG also offers additional services may otherwise limit achievement of the program’s aimed to reduce disparities for selected groups, such as hoped-for outcomes. For example, tracking literacy and day centers for children with special needs, inclusive school completion for girls in minority communities may education services in schools, bilingual education lead to the realization that it is important to incorporate options for students of minority ethnic groups, public awareness measures or incentives for families housing assistance for IDPs, a nationwide reintegration and schools to keep girls in school, or that parents program with training and employment assistance for should be offered instruction in Georgian so they can ex-convicts, and financial support and privileges for better support their children’s education. Monitoring residents of high mountain regions, among others.25 inclusive education for children with special needs may These policies and programs, along with services reveal the need to for state policies to expand physical provided by non-state institutions—NGOs and other and/or digital accessibility to spaces and information development organizations— provide only partial technologies, respectively, in order to improve the support to individuals and families who suffer from reach and impact of existing programs and services. multiple and overlapping disadvantages. Moreover, existing services are concentrated on target groups for Improving the visibility of socially excluded which better data exist (and vice versa, more data exist groups through better data and evidence has the for groups that are recipients of assistance), whereas additional benefit of raising public awareness and others seem to consistently fall out of policy attention. tolerance. Global evidence has shown that enhancing visibility and interactions across groups can increase A comprehensive approach to social policy— acceptance, and help to reduce stigma, stereotypes, including better data, and stronger institutional or misperceptions, that often act as a driving force for coordination—can go a long way toward ensuring exclusion and a barrier to accessing essential services, that existing services lead to better outcomes for markets, or spaces. excluded groups. Individuals and households that are excluded because of overlapping vulnerabilities face complex barriers to integration—physical, financial, Adopt a comprehensive approach to social social and cultural—that may not be resolved by a single policy and institutional coordination program or service. Consequently, better outcomes for Georgia has made important strides in putting these groups depend on a wide set of improvements together policies of financial and non-financial in their life (e.g., in education, employment, housing, support for marginalized groups and promotion of health, financial assistance, and so on) yet services social integration. Social protection and specialized that are targeted at these groups are often partial or services for persons with disabilities encompass fall under the purview of fragmented programs and financial support, inclusive education programs for institutions. A holistic approach is necessary to ensure children with special needs, and complementary, and that support is available equally to citizens through health and rehabilitation services, among others. A their lifecycle, in the form of health care, education, university quota for ethnic minorities with additional infrastructure, career guidance, and non-discriminatory support for language training has increased the number labor policies to support the transition from home to of minority students in tertiary education institutions. school and school to work. 24 TSA Program. 25 More details on existing programs and services are available in Annex I and Annex III. 16 The challenge of addressing the mounting needs of Promote locally appropriate solutions small pockets of the population that has been left In a country as geographically and ethnically diverse behind is common to many developed and middle- as Georgia, inclusive policies and programs would income countries. To address this issue, many countries be most effective if implemented with the feedback have developed specific coordination mechanisms and participation of beneficiary populations. In the or adopted a comprehensive set of social protection framework of its decentralization reform, Georgia policies. Such policies are often tailored towards already envisages a stronger role for local government empowering disadvantaged groups to improve their in targeting resources for local development. Some of own situation. In the context of ethnic minorities this the best international practices on inclusion have been could imply: improving quality of basic education for centered on locally driven programs to integrate and minority groups, ensuring that curricula and resources expand opportunities for vulnerable populations. in basic education institutions in minority communities evolve on par with the rest of the country, raising the quality of instruction in the national language while A policy approach to inclusion would also en- also facilitating the availability of essential information tail better tailoring of policies to the local con- and services in minority languages. In the context of text, building capacity of, and stronger reliance disability, inclusive policies would entail a focus on on, local institutions. Global experiences have ensuring adaptation of the environment, a broader shown that some of the most effective programs definition of disability that is able to capture the needs to combat exclusion and increase opportunities of the wide and heterogeneous group of persons with for vulnerable citizens and households have come disabilities and limited abilities, complementarity of from implementing successful local strategies to services and programs for both children and adults with development.27 As Georgia advances in its efforts special needs, and better monitoring for outcomes. toward decentralization, it would be important to integrate concrete targets for inclusion so that lo- Social and economic empowerment is one of cal development and growth do not exacerbate the ultimate goals of socially inclusive policies. but rather, help reduce inequities for citizens and households who face complex disadvantages. Respondents in this study, representing different disadvantaged groups, emphasize that their biggest Locally driven and locally implemented programs aspiration is being a respected and independent citizen. have multiple benefits. They can extend the reach Whether through improving education, raising skills, of line agencies or local governments to deliver creating jobs, stimulating entrepreneurship or providing services the “last mile”, help connect poor, remote, or social assistance, social and economic policies should marginalized groups to markets and value chains, allow be geared towards enabling economic independence for better use of local knowledge, tailoring policies and and livelihood. Interventions that improve “last mile” programs to make them accessible and acceptable to services26, connectivity, and access to opportunities for citizens in different geographic, economic, linguistic, excluded groups—including through wider networks and cultural contexts. Identifying and mobilizing and social capital—have the potential to expand vulnerable groups to participate in various aspects of livelihood options for remote and disadvantaged local development can enhance benefits for them, as groups supporting both their social integration, and well as their voice and participation, ownership and their contribution to the economy. commitment to local development. 26 Referring, for example, to transport, education, health, and 27 See Organisation for Economic Co-operation and income generation in rural and remote areas and at the Development (OECD) LEED Programme (http://www. community level. oecd.org/cfe/leed/, http://ec.europa.eu/regional_policy/ archive/innovation/innovating/pacts/pdf/leed_en.pdf); Hungary Social Inclusion Strategy 2020 (http://romagov. kormany.hu/download/5/58/20000/Strategy%20-%20 HU%20-%20EN.PDF); and Indonesia Nationwide Community Program (PNPM), among others. 17 Today, Georgia is facing challenges that many high- and and ensuring that all citizens have equal opportunities middle-income countries in the world have grappled to prosper. Looking through the lens of social exclusion with and continue to face. These include overcoming and inclusion, as well as from the perspective of the entrenched social and cultural barriers, societal divisions socially excluded, can help policy-makers, international driven by historical legacies or new challenges of partners, and Georgian society advance on the complex migration and globalization, tackling persistent poverty, and rewarding task of inclusive development. 18 20