81748 Inclusion Matters The Foundation for Shared Prosperity Overview © 2013 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank with external contributions. Note that The World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Inclusion Matters The Foundation for Shared Prosperity ii Kibae Park / UN Photo Photo: Table of Contents 1 Foreword 3 Acknowledgements 5 Introduction 7 Clarifying Concepts 9 Who Gets Excluded and How? 11 Inclusion in What and How? 11 Markets 12 Services 13 Spaces 14 Enhancing Social Inclusion by Improving Ability, Opportunity, and Dignity 14 Ability 14 Opportunity 15 Dignity 17 The Changing Context for Social Inclusion 21 Attention to Attitudes and Perceptions is Important in Addressing Social Inclusion 23 Social Inclusion Can Be Achieved 24 What Can Policies and Programs Do to Enhance Social Inclusion? 27 The Right Question 29 Concluding Reflections 30 References Cover image: Geoffrey Ernest Katantazi Mukasa, Uganda. Faces Blue, n.d. World Bank Art Program PN 646338 iii Photo: Arne Hoel / World Bank iv Foreword In every country, certain groups—whether illegal immigrants, indigenous people, or other minorities— confront barriers that prevent them from fully participating in their nation’s political, economic, and social life. These groups are branded by stereotypes, stigmas, and superstitions. They often live with insecurity. And such disadvantages not only preclude them from capitalizing on opportunities to lead a better life, they also rob them of dignity. In many countries, excluded people have organized to right a lifetime of wrongs. These newly active citizens include victims of violence who are demanding justice, or members of growing middle classes demanding greater voice in their countries’ political processes. They come armed or simply angry, protesting in Brazil or India, and occupying Wall Street or Tahrir Square. Taken together, their outrage demonstrates a global crisis of inclusion. At the World Bank Group, we have realized that confronting the need for social inclusion will prove vital if we are to meet our goal of building shared prosperity for all people. While great strides have been made in reducing extreme poverty, in country after country, groups remain excluded from development gains. A rising tide does not necessarily lift all boats. Acknowledging this, in May 2013, the United Nations (UN) Secretary-General’s High-Level Panel of Eminent Persons on the Post-2015 Development Agenda called for designing development goals that focus on reaching excluded groups. “Leave no one behind,” they urged the Secretary-General, adding, “We should ensure that no person—regardless of ethnicity, gender, geography, disability, race, or sta- tus—is denied universal human rights and basic economic opportunities.” Including the excluded is a complex challenge. At the World Bank Group, we begin where we always do: by surveying, sifting, and analyzing the evidence. The result of that work is this evidence-based study of social inclusion. It is the first of its kind for the Bank Group. We believe it represents one of the most comprehensive reviews of social inclusion available. While more work is needed, our research allows us to say a few things with confidence: Ostracized groups exist in all countries, rich and poor, democratic and not. They are often hidden from public censuses, made invisible by their fear of reprisal. Still, they can be found. In Vietnam, for example, where poverty reduction has been impressive, indigenous people are less likely to be covered by health programs or receive essential vaccinations. In the United States, African Americans were twice as likely as whites to be unemployed during the recent financial crisis. In Bolivia, ethnic minority Quechua-speaking women are 28 percentage points less likely to complete secondary school than Spanish-speaking Bolivian men. Excluded groups are denied opportunities. Excluded groups are significantly less likely to receive the benefits of development investments. In Uganda, for example, where electricity coverage is low, 1 almost half of respondents from the Buganda group reported having electricity, compared to less than 5 percent of the minority Lugbara and Ngakaramajong populations. The same breakdown appears in terms of access to clean water. Some excluded groups have been denied opportunities for hundreds of years, such as Native Americans in the United States. Poverty and exclusion are not the same. In some societies, even the rich can be excluded, as might be the case with wealthy homosexual men in some African countries. The protest movements in the Middle East have been fueled in part by demands among middle-class citizens for greater inclusion in public decision making and accountability from political leaders. Exclusion is costly. Measuring the cost of exclusion has methodological challenges, but the costs— whether social, political, or economic—are likely to be substantial. Occupational segregation can re- strict the free movement of talent and resources, resulting in productivity losses to an entire economy. One study found that exclusion of the ethnic minority Roma cost Romania 887 million euros in lost productivity. Studies in Bolivia estimate that ethnic exclusion reduces agricultural productivity by up to 36 percent. Most importantly, we find abundant evidence that inclusion can be planned and achieved. Education represents an unparalleled agent for stimulating inclusion. Religious leaders and other champions of change can help excluded groups acquire voice and confidence. The march towards greater inclusion, however, is not linear. Expanding the rights of formerly oppressed people risks triggering a backlash from historically dominant groups, who see their interests threatened. The process of fostering inclu- sion is incremental. It requires time and unwavering commitment. Still, the benefits of persistently striving for inclusion are at once striking and numerous. Examples can be seen around the world, from the overthrow of apartheid in South Africa, to China’s outlawing of foot binding, to the growing support that Brazilian police now provide to victims of rape. Exclusion is far from immutable. Solving the problem of social exclusion is urgent. Tensions are rising around the world, due to demo- graphic shifts, migration, food price shocks, and economic volatility. People fleeing war and extreme poverty often become the most excluded groups in host countries. In the future, moreover, climate change will likely result in mass migrations, as cities and countries confront extreme drought, storms, heat waves, and sea-level rise. Longstanding prejudices may result in excluded groups receiving blame for growing societal tension and competition for resources. To move ahead wisely, we need a clear research agenda. We need better tools to measure the costs of exclusion and for diagnosing its root causes. We must also develop more sophisticated analyses of which strategies are most likely to foster social inclusion, and mechanisms for gauging when inclusion efforts are working and when they are not. We offer this report with the hope that it will stimulate research, action, and a broader debate on social inclusion. Increased understanding of this crucial topic will strengthen efforts to deliver better results for the world’s poor, and help achieve our shared goals of ending extreme poverty and building shared prosperity for all people. Photo: Thomas Michael Perry / World Bank Jim Yong Kim President The World Bank Group 2 Acknowledgements This report was prepared by a team led by Maitreyi Bordia Das, Social Tara Beteille, Ana Maria Muñoz Boudet, Franck Bousquet, Charles Development Department (SDV), under the guidance of Rachel Kyte, Cormier, Maria Correia, Alberto Coelho Gomes Costa, Anis Dani, Vice President of the Sustainable Development Network (SDN) and Pyush Dogra, Mariana Felicio, Varun Gauri, Elena Glinskaya, Helene Cyprian Fisiy, Director of the Social Development Department (SDV). Grandvoinnet, Asli Gurkan, Sara Gustafsson, Bernard Harborne, Kar- la Hoff, Naila Kabeer (School of Oriental and African Studies, Univer- The core team comprised Sabina Espinoza, Gillette Hall, Soumya Ka- sity of London), Sarah Keener, Jeni Klugman, Markus Kostner, Paul poor-Mehta, Kamila Kasprzycka, Maria Beatriz Orlando, Juan Carlos Kriss, Angela Nyawira Khaminwa, Andrea Liverani, Alexandre Marc, Parra Osorio, Maira Emy Reimão, Lisa Schmidt, Sonya Sultan, Emcet Robin Mearns, Bala Menon, Sarah Michael, Ambar Narayan, Deepa Oktay Tas, and Ieva Žumbyte. In addition, Sabina Espinoza, Soumya Narayan (international advisor), Claudia Nassif, Sarah Nedolast, John Kapoor-Mehta, and Emcet Oktay Tas were part of the main writing Newman, Clarence Tsimpo Nkengne, Asta Olesen, Pedro Olinto, Ma- team. Special thanks are due to Elizabeth Acul, Colum Garrity, Kyung rio Picon, Hans-Otto Sano, Rodrigo Serrano, Ulrich Schmidt, Jordan Min In, Nona (Anju) Sachdeva, Syed Abdul Salam and Cristy Tumale Schwartz, Sudhir Shetty, Iain Shuker, Varun Singh, Emmanuel Skou- from SDV for their outstanding support. fias, Rob Swinkels, Sarah Twigg, Paolo Verme, Varalakshmi Verumu, Chaogang Wang, Gregor Wolf and Michael Woolcock. Background inputs were prepared by Taaka Awori (independent con- sultant), Sabina Espinoza, Patricia Fernandes, Roberto Foa (Harvard The Social Development Sector Board helped to refine many of the University), Rasmus Heltberg, Surinder Jodhka (Jawaharlal Nehru ideas in this report. Discussions with Junaid Ahmad, Mariana Caval- University, New Delhi), Soumya Kapoor-Mehta, Kamila Kasprzycka, canti (Getúlio Vargas Foundation, Rio de Janeiro, Brazil), He Hsiaojun Sadaf Lakhani, Rachel Marcus (independent consultant), Roberto Mi- (International Poverty Reduction Center in China), Ricardo Paes de randa (Inter-American Development Bank), Simon O’Meally, Maria Be- Barros (Secretariat of Strategic Affairs of the Presidency of Brazil), atriz Orlando, Juan Carlos Parra Osorio, Beata Plonka (independent Dewen Wang, and Xiaoqing Yu helped in crafting the story line. Early consultant), Graeme Ramshaw (independent consultant), Maira Emy findings of the report were presented at meetings and seminars or- Reimão, Audrey Sacks, Lisa Schmidt, Hilary Silver (Brown University), ganized by the Organisation for Economic Co-operation and Develop- Li Shi (Beijing Normal University), Sonya Sultan, Emcet Oktay Tas, ment (OECD), Swiss Agency for Development and Cooperation (SDC), Francesco di Villarosa (independent consultant), Maria Cecilia Ville- United Nations Educational, Scientific and Cultural Organization gas, Xiaolin Wang (International Poverty Reduction Center in China), (UNESCO), International Poverty Reduction Center in China (IPRCC), and Ieva Žumbyte. Institute for Studies on Labor and Society (IETS), and Overseas De- velopment Institute (ODI), and participants provided valuable inputs. The team would like to thank peer reviewers Dan Banik (University of Oslo and China Agricultural University), Francisco Ferreira, Arjan de The report drew upon a range of operational and analytical engage- Haan (International Development Research Centre, Canada), Jesko ments that were supported by staff based in the World Bank country Hentschel, Andrew Norton (Overseas Development Institute), Dena offices of Afghanistan, Brazil, China, Ghana, Poland, and Uganda. The Ringold, and Carolyn Turk for their insightful comments and for par- support from the Nordic Trust Fund (NTF) and the Multi-Donor Trust ticipating in the  review meetings. Marianne Fay (Chief Economist, Fund for Poverty and Social Impact Analysis (PSIA-MDTF) is gratefully SDN), Elisabeth Huybens (Sector Manager, SDV when this report was acknowledged. conceived; now Sector Manager, Social Development, Europe and Central Asia Region) and Susan Wong (Sector Manager, SDV) also Finally, Fionna Douglas, Hendrik Barkeling, Doreen Kibuka-Musoke, provided valuable comments and guidance. and Ewa Sobczynska provided valuable support and advice. Bruce Ross-Larson facilitated a writers’ workshop and Dick Thompson pro- Constructive comments were received at various stages of the review vided ­editorial support for the overview. process from Motoko Aizawa, Beatrix Allah-Mensah, Kaushik Basu, 3 Social Inclusion The process of improving the terms for individuals • and groups to take part in society. The process of improving the ability, opportunity • and dignity of people disadvantaged on the basis of their identity to take part in society. 4 Yusuf Türker / World Bank Photo: Introduction The World Bank Group’s focus on social inclusion began with the ob- An inclusive society must have the institutions, structures, servation that even within countries, development investments pro- and processes that empower local communities, so they duced unequal benefits. Further assessments revealed that groups can hold their governments accountable. It also requires with certain distinguishing characteristics consistently failed to bene- the participation of all groups in society, including tradi- fit from a nation’s progress. These groups were among the poorest in tionally marginalized groups, such as ethnic minorities and a nation, but they were not consistently the poorest. They were often, indigenous populations, in decision-making processes. but not always, minorities. What set them apart was that they were (World Bank 2013b, 33, emphasis added) members of excluded groups—indigenous people, new immigrants, Social inclusion matters for itself. But it also matters because it is people with disabilities, people with different skin tones, people who the foundation for shared prosperity and because social exclusion is spoke the official language imperfectly. These were people branded simply too costly. There are substantial costs—social, political, and by stigmas, stereotypes, and superstitions. They confronted unique economic—to not addressing the exclusion of entire groups of peo- barriers that kept them from fully participating in their country’s polit- ple. The Arab Spring may have been the most costly recent reaction ical and economic life. They were excluded. to the exclusion of educated youth—from labor markets but also, One of the world’s greatest development efforts is coming to a close. and perhaps mainly, from political decision making and accountabil- The year 2015 marks the endpoint for achievement of the Millenni- ity. Although there are significant methodological challenges in mea- um Development Goals (MDGs). In assessing the MDG response suring the cost of exclusion, some efforts have been made. A World and  charting a course for the next era of development, the United Bank report on the Roma (an ethnic minority in Europe) estimates Nations Secretary-General’s High-Level Panel of Eminent Persons on annual productivity losses caused by their exclusion. It suggests that the Post-2015 Development Agenda (UN 2013) called for designing these costs could range from €231 million in Serbia to €887 million development goals that focus on reaching excluded groups. “Leave in Romania (de Laat 2010). no one behind,” it advised. “We should ensure that no person—re- Exclusion has deleterious consequences for human capital develop- ­ tatus—is gardless of ethnicity, gender, geography, disability, race, or s ment as well. For instance, a recent report finds that children with denied universal human rights and basic economic opportunities.” disabilities are less likely to start school than children without dis- Along with global developments, the World Bank Group has an- abilities and have lower rates of staying in school (WHO and World nounced two ambitious goals for itself: ending extreme poverty and Bank 2011). Similarly, women in India who experience spousal vio- promoting shared prosperity. Underlying the goals is the notion of lence are less likely to receive antenatal care and more likely to have “sustainability.” A sustainable path for development and poverty re- a terminated pregnancy or still birth, and their children are more duction is defined as one that manages the resources of the plan- likely to be stunted than are children of mothers who have not been et for future generations, ensures social inclusion and adopts fis- abused (World Bank 2011a). burden (World Bank cally responsible policies that limit future debt ­ This report provides a frame of reference to help understand and 2013b). As a recent World Bank Group publication notes: move toward social inclusion. It is intended for policy makers, aca- demics, activists, and development partners—indeed, anyone who is A sustainable path toward ending extreme poverty and pro- curious about what inclusion can mean and how it can be addressed moting shared prosperity would also involve creating an in- in a world that is in the throes of formidable transitions. Although clusive society, not only in terms of economic welfare but it does not provide definitive answers, it offers a definition and a also in terms of the voice and empowerment of all groups. framework to help advance the agenda of social inclusion. It builds 5 Photo: Simone D. McCourtie / World Bank on the Bank’s previous analytical work on themes that have touched upon social inclusion. It also draws on a review of relevant literature, analysis of survey data, some new qualitative work, and policy en- gagement with select countries. This report is the Bank’s first comprehensive examination of in- clusion. It is certainly incomplete. It is hoped that this first effort prods and inspires further research by social scientists to broad- en the understanding of the causes, consequences, and remedies of exclusion. There are seven main messages in this report: 1. Excluded groups exist in all countries. 2. Excluded groups are consistently denied opportunities. 3. Intense global transitions are leading to social transforma- tions that create new opportunities for inclusion as well as exacerbating existing forms of exclusion. 4. People take part in society through markets, services, and spaces. 5. Social and economic transformations affect the attitudes and perceptions of people. As people act on the basis of how they feel, it is important to pay attention to their attitudes and perceptions. 6. Exclusion is not immutable. Abundant evidence demon- strates that social inclusion can be planned and achieved. 7. Moving ahead will require a broader and deeper knowledge of exclusion and its impacts as well as taking concerted action. Photo: Simone D. McCourtie / World Bank 6 Clarifying Concepts Although there is general agreement that social inclusion matters, there are few terms as abstract and political as social inclusion. It is notoriously many things to many people. Although it is true that the term is more political than analytical (Øyen 1997), it is also true that it has its roots in identifiable models of welfare and in principles of social justice and human dignity. 1 This report proposes defining social inclusion The in two ways. The first is a broad sweep to guide policy makers. It states that social inclusion is: process of improving the terms for individuals and groups to take part in society. 2 The A second, sharper definition takes into account process of improving the ability, opportunity, how the terms of social inclusion can be im- proved and for whom. It articulates social and dignity of people, disadvantaged on the basis ­inclusion as: of their identity, to take part in society. People often find it easier to explain what social exclusion is. Yet poorer-quality services. It exposes the multidimensional nature of even social exclusion is often lumped with the related concepts of chronic deprivation arising from social exclusion, which plays a key poverty and inequality. Social inclusion may well be about reducing role in driving the more readily observable correlates of poverty (lack poverty—but it is often about more than poverty, and in some cases, of schooling, poor health, and constrained labor market returns). It un- it is not about poverty at all. Take the case of a homosexual man liv- derscores that deprivation arising from social exclusion tends to occur ing in a rich neighborhood in any of several African countries. He may along multiple axes at once, so that policies that release just one of not be poor, but he is certainly excluded—and in some countries, at these axes of deprivation, such as improved access to education, will risk of death. Exclusion can intersect with poverty, deriving from a set not unleash the grip of others. It draws back the curtain on the norms of multiple, interrelated disadvantages that result in both economic and belief systems that underpin this multifaceted exclusion, which and social deprivation (Silver n.d.). Understanding that “the poor” may be overt norms, such as apartheid in South Africa, or the result of are not one homogeneous mass but are rather differentiated on the intangible belief systems handed down through history. basis of occupation, ethnicity, place of residence, or race is central to developing effective inclusive policies. Social inclusion is also not the same as equality. The term social in- clusion can add to the idea of equality, but much more importantly, it Social inclusion takes poverty analysis beyond identifying correlates can explain why some inequalities exist or why some are particularly to uncovering its underlying causes. It asks questions such as why durable (Tilly 1999). There are many ways that people can achieve certain groups are overrepresented among the poor and why some fuller participation and inclusion, even if they lack an equal share of people lack access to education, health, and other services or receive resources. At the same time, even people at the higher end of the 7 Photo: Simone D. McCourtie / World Bank income distribution may face social exclusion through political perse- to the writings of Bentham and Mill. But over time, attention moved cution or discrimination based on age, gender, sexual orientation, or away from ­ happiness to the measurement of real production (Gal- disability (Warschauer 2003). So exclusion can be horizontal, affect- braith 1998; Sen 2000). In recent years, there have been several ing several members of a group, whether poor or rich. It is a process, ­ ocietal progress more comprehen- significant initiatives to measure s of which inequality is sometimes, but not always, an outcome. sively, and many have incorporated subjective reports of well-being. Practitioners of development, who sometimes consider social in- The test of moving toward social inclusion is to move forward from clusion too esoteric an idea, often ask how it could be quantified. the metrics to ask why certain outcomes obtain for certain groups, How would one know when exclusion takes place and when inclu- to focus on the drivers and processes of those outcomes. Doing so sion is achieved? Such measurement is indeed important to es- means persevering with questions, not being content, for instance, tablish the extent and depth of exclusion and to monitor progress with the knowledge that certain groups are overrepresented among toward inclusion. the poor or that some have worse human development outcomes, but rather asking why this is the case. It means building consensus There has been considerable progress in the area of measurement around difficult answers that such questions will inevitably throw up. of human well-being, if not social inclusion, more directly. In fact, The narrative that is constructed as a result is the most important happiness-based” conceptualizations of societal progress go back “­ way in which social inclusion can have meaning. 8 Who Gets Excluded and How? Individuals and groups are excluded or included based on their iden- tity. Among the most common group identities resulting in exclusion are gender, race, caste, ethnicity, religion, and disability status. So- The eyes of others our prisons, cial exclusion based on such group attributes can lead to lower social standing, often accompanied by lower outcomes in terms of income, their minds our cages. human capital endowments, access to employment and services, and voice in both national and local decision making. Gaps between the attainment of males and females in a range of outcomes are well —Virginia Woolf, documented. People of African descent are still excluded in a variety “An Unwritten Novel” (1921) of cultures. The caste system, peculiar to India and Nepal, stands out as an “ideal type” of exclusion, complete with an ideology and a hierarchy that has persisted through millennia. Religion continues to be a serious driver of exclusion. And indigenous people around the world continue to face exclusion that is rooted in large part in their displacement from their traditional lands (Hall and Patrinos 2012). 9 Some identities that were not acknowledged as sources of social multiplication of advantage or disadvantage. For instance, the inter- exclusion or inclusion some decades ago are acknowledged as such section of gender, age, ethnicity, and place of residence can have sig- today. They include sexual orientation, nationality, and HIV/AIDS. nificantly more deleterious effects than the effects of gender alone. The lesbian, gay, bisexual, and transgender (LGBT) community, for Take the case of Bolivia, which has high levels of secondary school instance, is targeted for exclusion in many, if not most, cultures. With attainment. Figure 2 shows that being a Spanish-speaking woman in huge waves of migration, both within countries and across them, the Bolivia reduces the probability of completing secondary education by identity of migrant groups and individuals has come under special 5 percentage points, compared with being a Spanish-speaking man. If scrutiny, especially in developed countries, which are grappling with this Bolivian woman were a man who belonged to the Quechua people, ways of integrating nonnatives. the probability of completion would decline by 14 percentage points. If she were a Quechua woman, it would decline by 28 percentage points. Individuals are members of different groups at once and may be Similarly, the intersection of social and spatial characteristics is a com- excluded through one of their identities but not another. The notion mon marker of disadvantage. of “intersectionality” is based on the understanding that people are simultaneously situated in multiple social structures and realms Groups are heterogeneous, so exclusion within groups exists as well. (figure 1). However, when they intersect, identities can produce a Characteristics of some members of the group, such as socioeco- Figure 1: People Have Multiple, Intersecting Identities Figure 2: Intersecting Identities Transfer Cumulative Disadvantage: Secondary School Completion in Bolivia –5 –14 –28 Gender Religion Disability Percentage points status Sexual orientation Ethnicity A Bolivian A Bolivian A Bolivian A Bolivian Employment Spanish- Spanish- Quechua- Quechua- speaking man speaking woman speaking man speaking woman status Location Source: World Bank, based on data from Minnesota Population Center 2011 and Bolivian National Institute of Statistics 2001. Note: Figure shows illustrative example of types of identities. The size of Note: Figure shows secondary school completion marginal effects, using each bubble denotes the importance of an identity, which can vary across men and Spanish mother tongue as reference group, for people 25 years individuals, groups, and even the same individual over time. and older, controlling for age, age-squared, and urban/rural residence. All values are significant at the 1 percent level. 10 nomic status, place in the life cycle, or circumstances (such as wid- which in turn lead to stereotypes, prejudices, and stigmas. These in- owhood), can also bestow advantage or disadvantage. Where social tangible features are socially constructed and played out by both the security systems are primarily informal, many elderly people are now excluder and the excluded. For example, stereotypes about groups at risk of ill treatment. Similarly, without concerted action on poverty, can be so ingrained in the labor market that hiring managers or peers employment, and human development, countries with large youth co- do not even realize that they have them (see Deshpande and New- horts are not being able to realize their “demographic dividend.” Skin man 2007; Loury 1999) or may not consider them stereotypes but tone can matter as well; individuals within the same race or ethnicity facts. Stereotypes of “lazy” Roma or of women having low commit- (indeed even within the same family) who have lighter skin appear ment to the labor market are so internalized by the majority that to have better outcomes, ranging from chances of getting married they are often regarded as truisms, even though they are not borne (especially of women) to employment (Villarreal 2010; Hersch 2008; out by data on labor force participation (de Laat 2010). Sometimes Jha and Adelman 2009). the words that describe certain practices say a lot about the social acceptance of exclusion. For instance, the term eve teasing is used Exclusion plays out through both tangible and intangible practices in South Asia as a flippant euphemism to signify sexual harassment and processes. Although it is most evident in differences in “tangi- of women in public places, and both the term and the practice are ble” outcomes, it is rooted in intangible social norms and beliefs, treated with the same indulgence. Inclusion in What and How? This report provides an illustrative set of interventions, but any policy has been a historical driver of exclusion. The roots of exclusion of or program can be designed and implemented using a social inclu- indigenous populations the world over, for instance, lie, in significant sion lens. part, in the appropriation of their lands by their colonizers or by other nonindigenous groups. Major social upheavals have been caused by Individuals and groups want to be included in three interrelated do- unequal agrarian relations, which at once straddle land and labor mains: markets, services, and spaces (figure 3). The three domains markets. In many parts of the world, women’s historical lack of ac- represent both barriers to and opportunities for inclusion. Just as cess to land has underpinned their lack of enforceable property and different dimensions of an individual’s life intersect, so do the three other rights. Exclusion from access to land affects both rural and domains. Intervening in one domain without consideration of the oth- urban populations. Urban land markets are notoriously skewed in ers is likely to be one of the most important reasons for the limited favor of the rich and powerful; laws that govern their use and sale success of inclusion policies and programs. have been, of late, the subject of considerable debate. One of the manifestations of exclusion from urban land markets is unequal ac- cess to housing, with negative externalities in other areas. On the Markets side of inclusion, land ownership can confer status and security (see Deininger and Feder 1998; Carter 2000). In their day-to-day interactions, people engage in society through four Like land markets, labor markets are crucial sites for the play of so- major markets—land, housing, labor, and credit—all of which inter- cial relations. They reflect the existing and historical inequalities in a sect at the individual and the household level. Land, for instance, society and are tied up with social stratification (see Polanyi 1944). 11 Figure 3: Propelling Social Inclusion: A Framework of loans at very high interest rates. Workers attached to the labor market through bonded labor mechanisms are rarely able to accumu- late sufficient savings to repay the bond and are thus effectively in serfdom for the remainder of their lives. The transition from bonded labor to greater labor freedom is fraught with risk, because freedom severs connections with former “employers,” who are also “patrons,” who in addition to providing employment provide housing, protection, Markets and in-kind transfers (World Bank 2011b). Land Services Housing Social protection Labor Information The global push toward “financial inclusion” may be overtly about the Credit Electricity penetration of financial instruments into untapped markets, but it is Transport equally about social inclusion. Social assistance and wages, even for Education Health unskilled workers, are increasingly being channeled through banks Water and other formal payment mechanisms. Under these circumstances, Spaces lack of access to financial systems becomes an important axis of Political exclusion. Financial services are, moreover, increasingly tied up with Physical Cultural access to digital technology, such as smart cards and automatic Social teller machines, which may create an additional layer of exclusion for individuals and groups that are either uneducated or otherwise already disadvantaged. Only 15 percent of adults in fragile and con- flict-affected states have bank accounts (Demirgüç-Kunt, Klapper, and Randall 2013). In more developed financial markets, too, broad economic shocks and poor access to credit can hurt minorities disproportionately, as evident in the mortgage crisis in the United States, where African Americans and Latinos were disproportionately Ability Opportunity Dignity affected relative to their share of mortgage originations (Bocian, Li, and Ernst 2010). Services Access to services is essential to improving social inclusion. Health and education services enhance human capital. Social protection For instance, slavery was at its core an occupational division of labor, services cushion vulnerable groups against the effects of shocks with slaves working on farms and plantations. Caste, similarly, is a and promote their well-being. Transport services enhance mobility system of occupational segregation that became a form of social and connect individuals to opportunities. Water and sanitation are stratification, systematically excluding certain groups. essential for good health. Access to energy is important for liveli- hoods and for human capital. And information services enhance con- Disparity in labor market outcomes is most visibly demonstrated by nectedness and allow individuals to take part in the “new economy.” the gap in earnings between preferred and excluded groups. In a study of 18 Latin American countries, Ñopo, Atal, and Winder (2010) Overall, subordinate groups tend to have lower access to basic find sizable gender and ethnic wage gaps between indigenous and services. In rural areas of the Lao People’s Democratic Republic, nonindigenous populations. Occupational segregation by race, eth- for example, estimates suggest that a higher proportion of women nicity, and gender is pervasive and contributes to the exclusion of from the excluded community (non-Lao-Tai) never attended school certain groups from preferred jobs. (34 percent compared with 6 percent of Lao-Tai women). Men from the excluded group fare better than women but still worse than the Land and labor markets are intricately linked to credit markets, espe- majority group: 17 percent of non-Lao-Tai men never attended school cially in developing societies. The most extreme form of coalescence compared to 4 percent of Lao-Tai men. Disparities are also visible in between the three types of markets is forced labor, which still per- access to health services. In Vietnam, where poverty reduction has sists in many countries. In Nepal, for instance, as part of the Kamai- been impressive, indigenous peoples are less likely to be covered ya and Haruwa/Charuwa s ­ ystems, indebted families, often from the by health programs or receive vital vaccinations, despite impressive historically disadvantaged castes, pledge themselves or their chil- improvements in overall access to health (Hall and Patrinos 2006, dren to work because they cannot pay debts to moneylenders, who 2012). Data from African countries show that groups that speak mi- are often also landowners. Such labor arrangements involve agricul- nority languages as their mother tongue typically have lower access tural workers agreeing to bondage in return for advance payments of to services such as water and electricity. In Uganda, for instance, salary from landlords at rates far below minimum wages or in lieu 12 Figure 4: Access to Electricity Varies by Ethnicity in Uganda, 2010 Baganda (Muganda) Munyoro Mutooro Banyankole Munyarwanda Basoga Mugishu Other Mugwere Mufumbira Bakiga Madi Mukonjo Acholi Ateso Langi Alur Lugbara Source: World Bank, based on data from the Ngakaramajong Uganda Demographic and Health Survey 2011 (UBOS and ICF 2012). 0 5 10 15 20 25 30 35 40 45 50 Note: Names of ethnic groups appear as they Percentage of population with electricity access are in the survey. where electricity coverage is low in general, almost half the Muganda portunity enclaves for the excluded, who, when excluded from the respondents in the 2011 Demographic and Health Survey (UBOS and primary market, concentrate in markets for the excluded and use ICF 2012) reported having electricity, but less than 5 percent of the them for social and economic mobility (Wilson and Portes 1980; Lugbara and Ngakaramajong did (figure 4). Similar results show up Portes and Jensen 1989). This phenomenon has been documented, in self-reported water insecurity from the Afrobarometer: the Langi, for instance, for Cubans in Miami and other immigrants, who skirt la- the Ateso, and the Alur report the highest incidence of having ex- bor market discrimination by consolidating their positions in clusters perienced water insecurity “most or all the time,” and the Mutooro, of the excluded. Not all strategies of clustering necessarily lead to Mukiga, and Munyankole are most likely to report never having expe- social mobility, however. The perverse impact of clustering is illustrat- rienced such insecurity. ed in differential child mortality patterns in Ghana, where the Ga have higher levels of mortality than other ethnic groups. Weeks and his colleagues (2006) found a close association between differences in child mortality (by ethnicity) and residential clustering in Accra. Spaces Because social inclusion is also at its core about accountability of Physical spaces have a social, political, and cultural character that the state to its citizens, it is as much about occupying political space solidifies systems and processes of exclusion. The most overt exam- as it is about having an equitable share in markets and services. It ple of exclusion is when physical spaces are reserved for dominant is not just poor people or traditionally excluded groups that demand groups, such as whites-only clubs during apartheid in South Africa or greater political space and voice. Increasingly, educated people who during slavery in the United States. The literature suggests a sub- feel excluded from a range of spaces are clamoring for greater par- culture created by dominant groups in the United States to implicitly ticipation. Poverty and minority status often compound the lack of exclude minorities even when they can afford to buy homes in their access to political space. Many countries have seen a rolling back neighborhoods. Neighborhoods thus become “white” or “black”; of state power since the 1980s, accompanied by a widening of eco- the term “white flight” is used to document the departure of white nomic opportunities. Yet state power continues to underpin many families when black people start to move into their neighborhoods. processes of exclusion and inclusion, and rent-seeking becomes an Black neighborhoods are often considered poor or “bad” or unsafe, important process of exclusion. For instance, the power to award reflecting at once a judgment on their social and economic character. mining leases or to sit in positions that can influence public sector Similarly, there is evidence to suggest that Dalits in India and Nepal hiring offers ample scope for consolidating social, political, and eco- are still sometimes barred from entering temples and other physical nomic space. Although politicians do not necessarily or exclusively spaces that are considered “pure.” favor their own ethnic or cultural group, groups with little or no politi- cal representation risk their interests being excluded from consider- Excluded groups can react to their disadvantage by claiming certain ation (Marcus et al. 2013). spaces. Clustering in certain geographical areas can serve as op- 13 Enhancing Social Inclusion by Improving Ability, Opportunity, and Dignity Ability do not even bother to try for better outcomes, knowing that peo- ple from their group are discriminated against. Elmslie and Sedo This report uses the ideas of ability, opportunity, and dignity and ap- (1996) propose the idea of “learned helplessness” to show that plies them to excluded groups. Ability, for instance, is innate to indi- negative events, such as an episode of discrimination, can lead to viduals, but, when measured through achievement tests, it may not a decrease in learning ability. Exclusion, therefore, can create resig- always be randomly distributed. Instead, it may be socially mediated. nation at both the group and the individual level, which in turn dimin- A child who performs poorly on standardized tests at an early age may ishes human capital, constrains effort, and becomes somewhat of be affected by a range of background processes. These processes can a self-fulfilling prophecy. include the fact that she was born with low birthweight to a very young mother and may not have had the parental stimulation that her peers in more advantaged circumstances had. These cumulative disadvan- tages are often systematically distributed by race, ethnicity, or place of Opportunity residence. The literature on early childhood education indicates that Inequality of opportunity is one of the major constraints to the reali- the brain starts to develop in utero, and although brains are elastic zation of human potential. Recent work on the Human Opportunities enough to compensate for maternal or other in utero deprivations, they Index (HOI) underscores this and focuses policy attention on invest- may not be able to fully do so. In addition, when children are deprived ments that equalize opportunities at the beginning of the life cycle. The of stimulation and nutrition in the early months and years of life, their underlying assumption is that equalizing the supply of services will pro- development is permanently affected. vide all individuals with an equal chance of translating their capabilities into enhanced well-being. The ability of an individual is also affected by the people she sees around her and whom she regards as reference models. Borjas Providing full opportunity is not only an institutional challenge in (1992) outlines the notion of “ethnic capital” to show that individ- many countries; the process of expanding opportunities can itself uals who are members of high-performing groups tend to perform be exclusionary, constraining both the supply of and demand for better. This report argues that reference groups and role models are opportunity. important in the “capacity to aspire,” to use Appadurai’s term. When individuals from disadvantaged groups see others around them per- Take the case of health facilities in remote areas where indigenous forming at a low level, they set a much lower bar for themselves than women live. The remoteness of their habitations means that provid- they would have if they had belonged to a high-­ performing group. ing them with the same quality and quantity of services as available In addition, they may internalize exclusion in such a way that they to their urban counterparts is fiscally and institutionally challenging. 14 Photo: Richard Brice / World Bank The placement of health centers often depends on the political voice strophic and unforeseen events, such as economic crises and natural of the residents, and some of the most remote residents also have disasters, which work to reallocate opportunity, with unequal impacts the weakest voice. Even if facilities are available, quality can be un- on population subgroups. In the recent financial crisis in the United even, because medical staff are often absent. Finally, there is also States, for instance, black people were twice as likely to become un- “low demand” for facilities, for a number of reasons, including the employed than whites, and it took them much longer to regain employ- indignity and humiliation meted out by service providers, which deter ment (Lynch 2012). At the individual level, events such as accidents or women from wanting to go to the facility. a death in the family can forever alter access to opportunity. Opportunity can also be mediated by special needs. For example, some groups may require remedial efforts to provide them with the same degree of opportunity, because of their initial conditions, which Dignity include their innate characteristics (for instance, disability status). An estimated 12–16 percent of all children in the United States This report brings the idea of dignity into the lexicon of the World come into the school system with a disability that hampers their abil- Bank Group. The idea that dignity matters for individuals and groups ity to learn (AAP 2001). Children with disabilities who receive target- is not new for development theory. The word dignity is mentioned in ed support in addition to schooling are more likely to graduate, gain several human rights covenants and charters. Amartya Sen’s idea of employment, and live independently (Shonkoff and Meisels 2000). capabilities encompasses the notion of human dignity. Yet remedial services are often deficient, mirroring the wider social, Dignity as it relates to social inclusion is intrinsically linked to no- economic, and political exclusion of people with disabilities (Yeo and tions of respect and recognition. When, through their institutions and Moore 2003). The situation for children with disabilities in less de- norms, dominant cultures and processes actively disrespect individ- veloped countries is even more adverse. What is the likelihood that uals and groups who are considered subordinate, those individuals they will be presented with equal opportunities? and groups can either opt out, submit, or protest. Finally, opportunity changes over the life cycle. Equalizing opportuni- The lack of recognition can render some individuals and even entire ties at the beginning of life does not ensure the capacity for equal groups “invisible” in official statistics. For instance, in many cultures, outcomes over time. There are critical junctures in the life cycle, such a disabled member of the household is not reported in the household as entry into the job market from school and during future job search- when survey personnel conduct interviews. In other cases, people es for career advancement, where both demand and supply factors such as refugees who cross borders without documents may actively play an important role in reallocating opportunity. There are also cata- avoid official contact. Other unrecognized people include stateless 15 Figure 5: Migrants in Urban China Speak of “Being Looked people and even legal citizens who lack docu- Down upon” by Locals, 2011 ments to prove their residency or eligibility for various benefits. In still other cases, such as the Roma in many European countries, the excluded group hides itself from official surveys and cen- a. By age suses so that it can meld into the statistics of 30 the majority. In figurative terms, dignity and rec- ognition are linked to the way subordinate groups 25 Percentage of respondents are treated by dominant groups and by the state. This treatment includes contempt for their cul- 20 tures and practices and intentional or uninten- tional stereotyping that prevents them from fully 15 taking part in society. 10 Tools are being developed to measure when in- dividuals are being accorded dignity or treated 5 without it. The empirical literature on dignity has been led by medical ethicists and advocates of 0 respectful treatment of patients, especially the terminally ill, the elderly, and people with sig- 0 5 0 35 0 5 0 + –2 –4 51 –2 –3 –4 –5 31– nificant physical and cognitive impairments, at 21 41 26 16 46 36 the hands of medical providers.  For example, using data from the Commonwealth Fund 2001 b. By education Health Care Quality Survey of 6,722 adults living 25 b. By education in the United States, Beach et  al. (2005) ana- lyze the association between two measures of 25 respect (involvement in decisions and treatment of respondents 20 with dignity) and patient outcomes (satisfaction, of respondents 20 adherence, and receipt of optimal preventive 15 care). After adjusting for respondents’ demo- 15 graphic characteristics, they find that people who 10 were treated with dignity had a higher probability Percentage of reporting satisfaction. As measures of digni- 10 Percentage ty are still being developed, the terms dignity, 5 respect, and recognition are often used inter- 5 changeably. 0 A recent survey in China of 128,000 migrants 0 te te y y e e e e l l ge ge na na in urban areas asked respondents whether they ar ar dl dl dl dl ra ra lle lle sio sio im rim id id id id te llite Co Co rm rm rm rm thought migrants were “always looked down es es P I of of we we pe pe upon” in the cities in which they lived. Between Pr Pr Up Up Lo Lo Pr Illi Agree Completely agree one-third and one-fourth of respondents thought they were always looked down upon by locals—a Agree Completely agree finding that varied little with age or education lev- el (figure 5). Feelings of being looked down upon increased with length of stay, suggesting that mi- Source: Shi 2012. grants encountered unpleasant behavior if they Note: Based on responses to the question, “Do you agree with the view that migrants stayed long enough and interacted with more peo- are always looked down on by locals?” in the 2011 Migrant Survey conducted by the ple (Shi 2012). National Health and Family Planning Commission of the People’s Republic of China. 16 The Changing Context for Social Inclusion Much of today’s global political upheaval can be linked to demograph- ent social milieu. Old norms and values give way to new and more ic, spatial, economic, and knowledge transitions that are transform- diverse ones. However, not all social processes in urban areas are ing societies. The cumulative impact of the transitions of the past necessarily positive for excluded groups. Cities are increasingly po- several decades has changed the profile of the global community and larized between people who have access to basic services and peo- reshaped some of the social inclusion issues. The cumulative impact ple who do not. of these large-scale transitions has changed the context for inclusion by creating new opportunities for both inclusion and exclusion. The slums in Brazil, known as favelas, are a case in point. Rec- ognizing that favelas are a visual testimony to the country’s in- Complex demographic transitions have significant social impacts. equality, Brazil adopted a mantra of moving from “divided cities” Lower fertility and mortality rates are transforming age structures to “integrated cities.” living arrangements. Increasing numbers of the elderly mean that and ­ countries have to provide new ways of dealing with a large new co- Inequality within cities is also one of the root causes for the crime hort. Globally, the youth cohort is the largest in history, living mostly that has beset many cities. Over time, violence can become institu- in developing and conflict countries. Population “pyramids” (box 1) tionalized, making it difficult to dismantle. Governance challenges in are history. Consequently, reaping the demographic dividend requires urban areas contribute to some groups feeling left out and having concerted action to include young people in markets, services, and few opportunities for voice and redress. Core government functions spaces, as well as skillful management of the political economy. can be taken over by land mafia, drug lords, and other extortionists. Mental health issues, substance abuse, and poor security all affect Additionally, current trends suggest that migration is likely to become individuals more negatively in urban areas. Excluded groups live in a more dramatic and volatile demographic process than fertility or areas that expose them to these negative factors more intensely. mortality. Europe is the largest hosting region. Its fertility rate is be- low replacement levels, indicating that unless birth rates rise over a One of the most profound transitions of this century is occurring as sustained period, it will continue to have to import labor. a result of climate change. It is already having rapid and catastroph- ic consequences on livelihoods, crops, and ecosystems. A recent Migration within countries is also becoming larger in size and signif- report portends a scenario of a world that will be 4°C warmer in icance. The ongoing internal migration in China, for example, is the 2100 than in preindustrial times, leading to catastrophic heat waves, greatest and fastest movement of people in history, creating, among droughts, and floods in many regions (World Bank 2013a). Periods other things, shortages of urban services. Simultaneously, natural di- of climate-related stress, such as a drought, affect food availability, sasters, war, human trafficking, and economic recession are affecting with people in conflict-affected areas hit hardest. Sen (2001) argues migration patterns. All of these trends have a bearing on inclusion. that food insecurity during periods of climatic stresses is higher in For example, some countries and regions are witnessing high levels countries affected by conflict, because, unlike peaceful countries, of hostility and resistance to migrants. regimes in conflict end up spending more on the military than on social programs and have poorly functioning markets and services. Urbanization was one of the most dramatic transitions of the previ- Conflict can affect agricultural production, for instance, by blocking ous century, and it will continue to unfold in the present one. At the the ability to import (UN 1993), by preventing access to farmlands individual and household level, urbanization offers the possibility for and removing men from farming. These fragile populations often take social mobility through a range of new opportunities. Migrants from refuge in countries with greater food security, but their presence can rural areas move to cities and towns seeking new jobs, business exacerbate tensions. opportunities, and education. Cities and towns also offer a differ- 17 Box 1: Population Pyramids Are History Figure B.1.1 Population Pyramids in Uganda, Poland, and the Arab Republic of Egypt, 1950, 2010, and 2050 Transitions in fertility and mortality and uneven migration Uganda patterns will make population pyramids extinct by 2050, Age 100+ in all except the very high fertility countries. Figure B.1.1 95–99 shows age structures of three very different contexts: Ugan- 90–94 85–89 da, where the fertility transition has been slow and late; 80–84 Poland, which has very low fertility and low mortality; and 75–79 70–74 the Arab Republic of Egypt, which falls in between these two 65–69 scenarios. The pyramids show that by 2050, half of Ugan- 60–64 55–59 da’s population will be below 20 years of age; Egypt’s pop- 50–54 ulation, which is young now, will be older and replaced by a 45–49 40–44 much smaller cohort of young people; and Poland will have 35–39 a full-fledged aging crisis. Each of these three scenarios un- 30–34 25–29 derscores the need for planning and vision. 20–24 15–19 10–14 5–9 0–4 10 5 0 5 10 10 5 0 5 10 10 5 0 5 10 Male (%) Female (%) Male (%) Female (%) Male (%) Female (%) 1950 2010 2050 Poland Age 100+ 95–99 90–94 85–89 80–84 75–79 70–74 65–69 60–64 55–59 50–54 45–49 40–44 35–39 30–34 25–29 20–24 15–19 10–14 5–9 0–4 6 4 2 0 2 4 6 6 4 2 0 2 4 6 6 4 2 0 2 4 6 Male (%) Female (%) Male (%) Female (%) Male (%) Female (%) 1950 2010 2050 Egypt, Arab Rep. Age 100+ 95–99 90–94 85–89 80–84 75–79 70–74 65–69 60–64 55–59 50–54 45–49 40–44 35–39 30–34 25–29 20–24 15–19 10–14 5–9 0–4 9 6 3 0 3 6 9 9 6 3 0 3 6 9 9 6 3 0 3 6 9 Male (%) Female (%) Male (%) Female (%) Male (%) Female (%) 1950 2010 2050 Source: World Bank, based on data from UN 2011. 18 Simone D. McCourtie / World Bank Photo: Photo: JP Keenan / World Bank In tandem with, and underlying, other transitions over the last few de- new cohort of young people has attainments, aspirations, and hopes cades are deep economic transitions. Globalization and regional in- that are quite different from those of their parents’ generation. tegration, coupled with substantial reforms at the national level, have led to impressive growth and poverty reduction across the globe. As In Sub-Saharan Africa, for instance, there was a fivefold increase in a consequence, a large cohort has now “graduated” to the middle gross secondary school enrollment, from 7 percent to 36 percent, class (Ferreira et  al. 2013; Kharas and Gertz 2011; Dadush and between 1970 and 2009 (WDI database). At the global level, the Shaw 2011), implying a change in societal values and aspirations. corresponding figure nearly doubled, from 36 percent to 68 percent. The middle class is often the harbinger of change. Its support is Education changes relationships of power within society and within critical to achieving the goals of social inclusion, partly because the households. Groups that were considered subordinate acquire voice relationship of the middle class to the state is quite different from and confidence when they are educated. They tend to be more asser- that of the poor to the state. The middle class demands voice and tive in holding the state and service providers accountable and in de- accountability as a right; the poor can often be reduced to a suppli- manding dignity and respect from groups that were considered dom- cant by a strong state. Simultaneously, revolutions in knowledge, so- inant. At the household level, educated young women have greater cial networking, and citizen action have shown that aspirations, when say in decision making and are able to access opportunities outside unfulfilled, can create unique challenges for governments. Although their homes in ways that their mothers never did. Their education inequality trends are highly heterogeneous across countries, income changes intrafamily power relations. inequality is growing in the most populous countries like China and A large body of literature focuses on the enormous impact that ed- India. Finally, food security remains a challenge for most developing ucation can have on women’s inclusion into markets, services, and countries, with excluded groups and people who live in remote areas spaces. When young women in Bangladesh were asked during focus at greatest risk. group discussions how education had changed their lives, they poi- Education is another powerful force that is also changing the social gnantly described “being able to speak” as the most important gain context. Education is the unparalleled agent of social change and one (World Bank 2008). Yet ensuring decent quality of education remains that has expanded across the board, even in the poorest countries. A a challenge. Additionally, educational institutions can be important spaces of exclusion. 19 Men are disturbed not by things, but by the view which they take of them. —Epictetus 20 Photo: Arne Hoel / World Bank Attention to Attitudes and Perceptions Is Important in Addressing Social Inclusion Attitudes and perceptions matter for social inclusion because people tion for women. In Australia, New Zealand, and some Scandinavian act on the basis of how they feel. Their feelings of being included countries, tertiary school enrollment among women is almost univer- and respected are central to the opportunities they access and the sal, and discriminatory attitudes toward access to higher education ways in which they take part in society. Conversely, which groups get are very low. Attitudes regarding women’s access to jobs are far less included and excluded, and on what terms, is shaped by people’s favorable in countries that have the lowest female labor force partic- attitudes about each other and about themselves. ipation rates (less than 20 percent), including Egypt, Iraq, Saudi Ara- bia, Pakistan, Algeria, Jordan, and the Islamic Republic of Iran (figure The importance of attitudes and perceptions also spills over to levels 6). There also seems to be a relationship between attitudes toward above the individual. A large body of literature shows that prejudices, women taking up leadership positions and their becoming leaders. stereotypes, and misperceptions affect the way policy is implement- Countries where fewer respondents say that men will make better ed and even designed. This report shows that attitudes play a key political leaders are also the ones with the highest share of women role in the treatment of individuals and groups, both by other mem- parliamentarians (for example, Andorra, Sweden, Canada, Finland, bers of the society and by the state. Attitudes and perceptions also Argentina, and the Netherlands). mediate social inclusion and shine a light on the processes through which exclusion takes place. Perceptions of unfairness and injus- Attitudes and perceptions are shaped by history, culture, and the tice and frustration with social and political institutions or with the way institutions have evolved over time. Take the case of perceived society at large often reflect individuals’ feelings of powerlessness. inequality and its acceptance in societies. Analysis of the World Val- ­ Feelings of fairness, justice, and “being part of society” can be mani- ues Surveys data conducted for this report suggests a nonlinear re- festations of how much the society recognizes, respects, and listens lationship between the extent of aversion to inequality and observed to its members. inequality. Australia and many countries in Europe have both low in- equality and a low appetite for it. Some countries in Latin America People’s attitudes are often related to outcomes. Attitudes toward (for example, Chile, Argentina, Uruguay, and to some extent Brazil) women’s education, access to jobs, and leadership positions have have high levels of measured inequality, but their aversion to it looks a strong association with poor outcomes for women. Analysis of the quite similar to other countries with much lower levels of inequality. World Values Surveys data conducted for this report, for instance, finds an inverse relationship between gross tertiary school enroll- Citizens’ views about the extent of fairness in their country often re- ment rates for women and negative attitudes toward higher educa- flect deeper issues of inclusion and exclusion in society. This report 21 finds, for instance, based on data from the Afrobarometer, that a power and representation in decision making, which in turn affects majority of citizens in African countries feel that their country treats the allocation of public expenditure and can lead to disparities in people unequally. This finding may be indicative of the fact that ex- opportunities. Income inequality, for example, has risen considerably clusion is a problem for many, rather than a few, and that the state in the last three decades throughout Sub-Saharan Africa. In 2010, is perceived as catering to the needs of a small section of society. Africa was the second most unequal region in the world (after Latin America), and 6 of the world’s 10 most unequal countries worldwide Perceptions about unfairness in Africa are substantiated by other were located in Southern Africa (AfDB 2012). Perceptions about in- trends in some countries. Africa’s economic growth over the past de- equality in non-African contexts may be shaped, similarly, by underly- cade was driven largely by mineral extraction, with the benefits con- ing trends in those contexts. centrated among a few. Economic power is closely related to political Figure 6: Countries and Areas Where People Say Men Have More Right to Jobs Also Have Lower Labor Force Participation Rates for Women, 2005–08 55 Sweden Russian Federation Ethiopia Canada Rwanda Norway Slovenia Ukraine Moldova 50 Finland United Kingdom France Germany Thailand Vietnam Burkina Faso Female labor force participation rate (percent) Bulgaria Zambia Ghana Switzerland Romania Georgia 45 United Hong Kong China States Peru Trinidad South Africa Australia and Tobago Cyprus Netherlands Japan Korea, Rep. 40 Argentina Spain Italy Brazil Poland Indonesia Uruguay Guatemala Mali 35 Chile Malaysia Mexico 30 India Morocco 25 Turkey Egypt, Arab Rep. 20 Iran, Islamic Rep. Jordan Iraq 15 10 0 10 20 30 40 50 60 70 80 90 100 Percentage of respondents who think men have more rights to jobs when jobs are scarce Sources: World Bank, based on data from World Values Surveys 2005–08 (attitudes) and World Development Indicators 2005–08 (female labor force participation). Note: Values correspond to data that were available for both variables within a span of two years. Data are latest available between 2005 and 2008. 22 Social Inclusion Can Be Achieved This report is an unequivocal statement that change is possible, that policy makers, activists, development partners, and others who care about justice and shared prosperity can steer change toward social in- clusion. Exclusion is not embedded in culture and immutable. Change A new and sweeping utopia of life ... where may happen by stealth or by design. It may happen through discrete events or through gradual processes that culminate over time. the races condemned to one hundred years of solitude will have, at last and forever, Change is rarely linear. Attempts to make change inclusive may in- volve tradeoffs, creating both winners and losers. There can be push- a second opportunity on earth. back from the dominant groups when previously subordinate groups feel included and break the norms. Push-back can come with active retaliation, setting back the process of change. —Gabriel García Márquez, Nobel Acceptance Speech Examples of change toward inclusion abound in history. South Africa, for example, moved from institutionalized segregation toward an ide- al of a “rainbow nation” in a matter of two decades. Foot-binding, an historically pushed agendas for social inclusion by taking up specific ancient tradition in China, was curtailed and eventually disappeared “wrongs” that society needs to correct. More recently, the media has following an intense social campaign and prohibition by law. The ar- been known to play a significant role in changing mindsets and creat- ticulation of social exclusion in Brazil that started with a widespread ing awareness against exclusion (Trujillo and Paluck 2012). belief in a “racial democracy” came to accept that discrimination on the basis of race has held some groups back. The exclusionary Moving from exclusion to inclusion does not happen overnight; it is system of informal local justice in Bangladesh, the Shalish, has been important to have a long-term view. Social inclusion requires over- transformed by greater voice and participation. In a region where coming negative beliefs and stereotypes about excluded groups, women’s role in society is confined to the private sphere, higher ed- which cannot be undone in a few years of “inclusive policy.” Timing ucational attainment among women in Jordan has become the rule is therefore of the essence; the impacts of some changes may be rather than the exception. felt years into the future or may well be the unintended consequences of policy or other developments. Similarly, the impact of change on The state has the preeminent role in promoting change toward inclu- groups can vary, and what is considered costly for some groups today sion, but other actors play important roles too. In fact, it is the inter- may have positive outcomes in the future or vice versa. play of state and nonstate actions that leads to inclusion. Catalysts and champions of change toward social inclusion, for instance, often Countries that are successful in addressing social exclusion usual- come from the elite. The abolition of slavery in the United States, the ly have strong institutions. The strength of institutions lies in large end of foot-binding in China, and the end of apartheid in South Africa part in their agility and malleability in addressing new needs of so- were all the product of social movements led by elites. Some of them cial inclusion. Take the case of Sweden, often held up as a shining came from excluded groups, as in the case of South Africa; others example of social inclusion. Today the country is grappling with the came from dominant groups, as in the case of the United States. In challenges of immigration. Its institutions, which have historically many countries, the role of religious leaders in both resisting and responded positively to social and economic challenges, now need propelling change has been considerable. The role of business lead- ways to accommodate a more heterogeneous population than Swe- ers in promoting social inclusion is also well recognized. Finally, civil den has been used to. Institutions, in turn, are influenced by histori- society movements and collective action by excluded groups have cal circumstance and can often be intractable to change as a result. 23 What Can Policies and Programs Do to Enhance Social Inclusion? How do policies that are effective in addressing social exclusion dif- joint landholders in land redistribution or resettlement projects or re- fer from ordinary social policies? In essence, social inclusion poli- serving land use quotas can increase their access to opportunities cies are policies that do not necessarily do more but that do things while also empowering them. Deininger, Goyal, and Nagarajan (2010), differently. No single set of policies or programs can be classified for instance, find that coparcenary rights for women in property can as “social inclusion policies” or “social inclusion programs.” In fact, have a positive effect on the education of girls within the household. depending on the “wrong” that needs to be addressed or the “right” Programs offering child care can enhance women’s labor market out- that needs to be deepened, a range of interventions could be em- comes. Both women’s labor force participation rates and their wages ployed. This report provides a few examples of interventions within are lower than men’s, even after controlling for a range of individual the broad typology of markets, services, and spaces, but any policy and household level factors (World Bank 2012, 2013c). Many women or program can be designed and implemented with a social inclusion cannot work because of their family responsibilities, yet child care in focus. most places is costly and scarce. Programs providing subsidized child care not only can help women improve their labor market outcomes, Often the same policy or program can cut across different domains— they also can have other positive externalities as well. market, services, and spaces. Policies toward social inclusion need to be connected or cross-sectoral. Social exclusion is a multidimen- Access to services that take into account the special needs of ex- sional process in which practices in one domain lead to or reinforce cluded groups can go a long way in enhancing social inclusion. Sub- exclusion in another domain. Policies to address social exclusion sidized fares targeted to excluded groups and accessible transport therefore require what Silver (2013) calls “a dynamic sequence of services can help connect these groups to markets, services, and interventions.” Illustrating her argument with the case of the home- spaces. The city of São Paolo has chosen flat fares as an alternative less, she argues that their inclusion in society requires a “continu- to distance-based fares in order to cross-subsidize the poor. Fares um of care” starting from transitional housing, labor market training, are valid across multiple modes/trips on one journey. Some groups, and (possible) drug and alcohol treatment to (eventually) permanent such as women and people with disabilities, face additional barriers housing, perhaps with long-term supportive services to help them to using transport (for example, inadequate street lighting leading stay housed. This report categorizes interventions into the domains to concerns around safety, transport that is inaccessible to people of markets, services, and spaces, realizing that the domains overlap with disabilities, and so forth). Here, too, countries are experiment- and that intervening in one domain can have effects in others. ing with innovative methods to address the challenges these groups face in physical mobility. Policies and programs can intervene in a range of markets. Take the case of land reforms. Although land reforms are not by themselves a The manner in which services are provided matters almost as much panacea for exclusion or inequality, societies that have carried them as the technical design of the service. Stereotypes that are often out tend to be more inclusionary. Land titles to women and de facto ingrained in service providers can have a damaging effect on the way recognition of the communal land use patterns of indigenous popula- they treat their clients, but these issues are not insurmountable. A tions can be effective in creating opportunity and enhancing dignity. growing practice focuses on “cultural competencies” among service Women in many societies do not traditionally own land. Making them providers. This practice is particularly advanced in health and social 24 Photo: Richard Brice / World Bank work and is growing in education and other sectors. Holding provid- a unique and innovative example of how cities can become inclu- ers accountable not merely for their presence and their technical sive for their citizens through both infrastructure planning and citizen skill but for cultural competence as a performance indicator is likely engagement. Infamously known for its drug cartel, which used the to go a long way toward ensuring that cultural minorities feel comfort- city as a base for operations, the city undertook wide-ranging police able in accessing services. and military action between 2003 and 2006 that resulted in the dismantling of the cartel and a significant decline in the number of According recognition to excluded and “invisible” groups is an im- homicides (Muse 2012). Under a new mayor, it transformed its trans- portant step toward their overall inclusion. For instance, many coun- portation system, with cable cars running between c ­ omunas (munic- tries have weak systems of birth and death registration. Initiatives ipalities or councils) previously at war (Romero 2007). Among the to improve these systems may not immediately conjure up images of different urban development initiatives undertaken was the ­ creation social inclusion, but without such registration a child can often not of new public spaces—for example, the Parque Biblioteca España be admitted to school and family members not permitted access to and new museums—to encourage social interaction. A large part the property of the deceased. The poorest or most excluded groups of Medellín’s municipal budget is now spent on social investments, cannot access benefits because they do not have identification or any which target vulnerable sections of the population, including older means to prove that they indeed exist. Such ­ literal recognition can people. Several programs work on organizing youth and older adults come from initiatives that provide identity cards or ­ create electronic into community action groups. These groups, which come with elect- databases or make special efforts to count people at risk of remain- ed positions, help the vulnerable put forth their interests to munic- ing invisible. Brazil’s efficiency in implementing the Bolsa Familia and ipalities (especially at the time of budgetary planning) and enable related cash transfer programs stems partly from the existence of them to hold government entities accountable. the Cadastro Único, an electronic database of program participants. There is a long-standing tension between policies and programs Language is an important aspect of identity and claim to political and that seek to provide universal access and those that target specif- cultural space. Language policy can thus be an important driver of both ic groups. Targeting can range from area-based approaches (often exclusion and inclusion. The status of certain languages as official lan- called “geographical targeting”) to the targeting of certain individ- guages for government or education has symbolic, political, and prac- uals or groups. Targeting criteria can include poverty status, age, tical consequences. Symbolically, official status suggests that certain disability status, gender, minority status, or a mix of these criteria. ethno-­linguistic groups and their cultures are more valuable than oth- Affirmative action policies can be viewed as a form of targeting in ers. Practically, according some languages official status can disadvan- which certain groups, by virtue of their historical exclusion, are given tage those who are unable to communicate in them. The disadvantage special treatment to enable them to catch up with the average in the may compound over generations, with children of linguistically excluded population. Affirmative action can come in various forms; quotas are groups facing an additional barrier to access learning and jobs, public just one example of affirmative action. Laws that ensure equal op- services, and democratic spaces. portunity in employment, credit, housing, and education are another form of affirmative action. In addition, the constitutions of several Interventions that work at the cusp of social and physical space countries—such as Bolivia, India, Malaysia, Nepal, South Africa, and can be transformative. The city of Medellín, Colombia, stands as 25 Photo: Maria Fleischmann / World Bank Uganda—allow for preferential policies for excluded groups to re- female-headed households as likely to attend as others (Barron et al. dress historical imbalances. Intended to enhance opportunities and 2009). Several CDD programs have succeeded in improving access level the playing field, these policies reserve places in public educa- to  spaces for the poor and building social capital. CDD programs tional institutions, public employment, or legislative bodies. also have the advantage of being able to innovate more readily, be- cause they are founded on the principle of community mobilization. Preferential policies often create a range of dilemmas and concerns. They thus have the advantage of flexibility and community voice that One dilemma is whether countries want to name groups, thereby encourages the generation of new ideas. “affirming” the divide. In Brazil, for instance, the establishment of quotas for Afro-Brazilians was preceded by an intense debate over Sometimes the impact of programs far exceeds the original intent, whether such quotas would mean implicit recognition of race as a which may be to enhance coverage or benefits. Take the case of social marker of d ­ iscrimination—an idea that ran contrary to Brazil’s con- protection programs. Many of these programs can also enhance the struct of a racial democracy. France has opted for geographical self-esteem of subordinate groups, as well as the attitudes of others targeting of socioeconomically deprived areas rather than naming toward them. In Lesotho, for example, recipients of social pensions ethnic groups living in those areas. China has made impressive ad- indicated an increase in respect for them in society once the national vances in reducing poverty and social exclusion by good geographical social pension was introduced. The pension also contributed to greater targeting. In the European Union accession countries, the Roma are self-esteem, because recipients were able to contribute more financial- not specifically acknowledged in affirmative action legislation but are ly to their grandchildren’s upbringing and education. In Nicaragua, sim- subsumed under the overarching term of “disadvantaged groups” ilarly, a conditional cash transfer program reports unforeseen positive (Silver 2013). impacts on women’s leadership (Makours and Vakis 2009). A second dilemma is how to ensure that entrenched elites do not Social grants and transfers can play a role in reducing historical dis- skim the benefits of quotas when resources are scarce. A related parities. In apartheid South Africa, the beneficiaries of social grants dilemma is how to prevent perverse incentives for other groups to were primarily white and “colored” people; blacks received a minor show “weakness” and hence entitlement in order to qualify for af- share of the benefits. The postapartheid government instituted re- firmative action. A final concern is that positive discrimination pol- forms such that social grants would be targeted to blacks, who were icies build resentment among dominant groups, who may question hugely overrepresented among the poor but were not receiving trans- the qualifications of candidates who receive preferential treatment, fers (Leibbrandt, Woolard, and Woolard 2007). Mexico’s well-targeted thereby intensifying those candidates’ stigma. Oportunidades, in addition to benefiting a much larger proportion of the population in indigenous than in nonindigenous municipalities, Community-driven development (CDD) is an approach that gives also decreased gender gaps in employment and reduced levels of community groups control over planning decisions and investment domestic violence. resources for local development projects. Recent evidence on the im- pact of CDD programs suggests that when implemented well, these Just as some programs can have benefits that exceed their intent, programs can improve service delivery in sectors such as health and others can have costs that were unforeseen. For instance, differen- ­ education, improve resource sustainability, and help communities tial retirement ages for men and women in the Chinese civil service build lower-cost and better-quality infrastructure (Mansuri and Rao are meant as a concession to women workers, as are laws in many 2013; Wong 2012). Furthermore, by virtue of targeting mostly the countries that are meant to protect young female migrants from abuse poor and vulnerable, these programs can help bring the voice of such overseas by enforcing a m­ inimum age for their departure. But both pol- groups to the policy table. An impact evaluation of Indonesia’s Keca- icies may have negative c ­ onsequences—by excluding older Chinese matan Development Program (KDP), for instance, finds widespread women from the labor market or creating conditions for poor young participation of beneficiaries in program meetings, with poorer and women to migrate without documentation (see Das 2008, 2012). 26 The Right Question Figure 7: How to Include: Addressing the High Numbers of Maternal Deaths among Tribal Women in India Create avenues for Diagnose: "Ask Design action Monitor progress recourse and why?" feedback • Why do a large majority of • Provide vouchers, grants, and • Establish a monitoring • Establish an empowered tribal women say they don’t culturally appropriate incentives framework that can be accessed ombudsman-like institution think it’s necessary to give birth • Launch education/awareness by tribal people that enforces tribal rights in health facilities? campaigns in local language • Create community monitoring • Empower tribal women • If the reason is poverty, why and idiom mechanisms through legislation and provide are these women overrepresented • Register births and deaths • Establish third-party monitoring them with legal assistance among the poor? • Involve the community in mechanisms • Create independent help lines • If the reason is lack of knowledge, health surveillance • Use social audits and hold • Establish local tribal health why are they not better informed? • Use tribal systems of public meetings committees with access to knowledge of health • Conduct “verbal autopsies” district administration • If the reason is remoteness, • Establish links to other • Mandate citizen report cards • Form empowered grievance why are they not connected? programs • Publicly disclose results of redress committees Through: • Make innovative use of private monitoring, including through • Establish systems to report providers, including private electronic channels back to communities on action • Conducting innovative transport agencies • Use ICT to solicit anonymous taken ex ante analysis • Holding meaningful • Hire more female sta from feedback consultations, including through tribal communities the use of information and • Require cultural competency communications technology (ICT) training for service providers to allow women to respond to • Hold providers accountable for questions anonymously their behavior as well as technical skills • Create incentives for providers to reside in remote areas The report takes on one intractable problem—that of poor maternal central to her situation. Once viewed in this way, it is clear that a health outcomes among indigenous groups—and argues that change supply-side push for better health facilities is a relatively blunt instru- toward social inclusion needs to start with the right diagnosis. It needs ment with which to address high levels of maternal mortality. to “ask why” (figure 7). Asking the right questions is likely to lead to a different design of a Tribal women in India do not, for the most part, give birth in health social program. Questions can include the following: centers. When they are asked why, the overwhelming majority of them say they do not think it necessary. Health practitioners then • What is the “wrong” or intractable problem being ad- blame their poor health outcomes on low demand for formal health dressed, or what went “right” that needs to be deepened? care. Continuing to ask why, however, reveals that low demand may reflect an assertion of dignity and a rejection of humiliation by exclud- • Whom does the intervention or service seek to include, ed groups, in this case tribal women, who resent being treated badly and who is at risk of being left out? by service providers. • Why are those groups or areas at risk of being left out? What Underlying the proximate reasons for poor outcomes are complex are the channels through which inclusion can take place? phenomena that are not immediately visible. Overall, the poor health of a tribal woman is rooted in the low power she has relative to • What innovations can be put in place to ensure inclusion? almost everyone else in the country. Issues of land and forests are What can be done differently? 27 28 Concluding Reflections Although the contribution of this report to the world of ideas is an important objective, the report will be a larger public good only if it Human progress is neither automatic influences the world of research, policies, programs, and projects. nor inevitable. Even a superficial What are the potential contributions of this report to the design and implementation of policies, programs, and projects? How does it look at history reveals that no highlight a new agenda for social inclusion? social advance rolls in on wheels It is hoped that this report speaks to practitioners in the following of inevitability . . . Without persistent broad ways: effort, time itself becomes an ally of • It is an exhortation to both policy makers and researchers the insurgent and primitive forces of to use the term social inclusion with careful attention to meaning and boundaries. irrational emotionalism and social destruction. This is no time for apathy • It brings some new ideas from philosophy and theory into the realm of practice. or complacency. This is a time for • It highlights gaps in the understanding of social inclusion vigorous and positive action. and potential areas for additional work through piloting new initiatives and undertaking new empirical analysis. —Martin Luther King, Jr. • It underscores the importance of additional work in mea- suring social inclusion. • It emphasizes the importance of asking why poor outcomes continue to persist for some groups, before designing the instruments with which to combat exclusion. • It stresses that building social inclusion is about building alliances and social consensus. • It draws attention to the fact that monitoring change toward social inclusion needs innovation and that such innovation needs to be incorporated into practice. • It is a call for greater participation of researchers to pro- vide policy makers with the knowledge that will be essen- tial for the wise design of social inclusion policies and programs. 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