Economic inclusion programmes are cost-effective and impactful but are reaching only about one-in-ten people living in extreme poverty, according to a World Bank report released recently. Economic inclusion programmes, which provide cash transfers, skills training, business capital, coaching, and market access build a ladder out of poverty for the poorest and most vulnerable people, particularly women.
The report by the Bank’s Partnership for Economic Inclusion highlights the importance of improving program quality and impact through evidence-based design and effective monitoring, evaluation, and learning. Governments lead the scale-up, but collaboration with non-governmental and community-based organisations and the private sector is critical to overcome capacity constraints.
“There is strong evidence of the significant impact that economic inclusion programs have on food security, consumption and income,” said Iffath Sharif, Global Director for Social Protection at the World Bank.
“When implemented through government systems, these programs can be highly cost-effective and yield high returns on investment.”
In July, at the G20 Global Alliance Against Hunger and Poverty in Brazil, the World Bank announced an ambitious goal to reach 500 million people with social protection measures by 2030.
This includes supporting 250m women with social protection programmes, focusing especially on the poorest and most vulnerable. Scaling economic inclusion programmes will be essential to this effort. The Bank is already working with 42 countries to deliver comprehensive economic inclusion programmes through their social protection systems.
“Economic inclusion programs have the potential to address critical development challenges by empowering women economically and reducing youth unemployment,” said Victoria Strokova, Program Manager, Partnership for Economic Inclusion at the World Bank.
“But to realize that promise, more intentional design and delivery are needed. For example, while 90 percent of programs target women, only one-third deliberately focus on women’s economic empowerment. We can further enhance these programs to overcome the social norms, the unpaid care work, and other barriers that prevent women from fully participating in the economy.
The report suggests more programmes be designed to tackle the legislative and regulatory barriers women face. And while two-thirds of programmes target youth, wage employment opportunities could be enhanced through skills training, apprenticeships, and job placement partnerships with employers. The report also cites climate resilience as a new frontier for economic inclusion efforts.