Social exclusion

Links between social exclusion and inequality

The concepts of social exclusion and inequality are closely linked. Unequal societies in which certain groups are discriminated against can lead to exclusion. Likewise, social exclusion fuels inequality. Unlike vertical inequalities, which focus on individuals, horizontal inequalities concern inequalities between groups, as does social exclusion.  Both horizontal inequalities and social exclusion are multidimensional, encompassing social, economic and political forms of exclusion. However, horizontal inequalities are not always severe enough to lead to a situation defined as social exclusion. Policies and initiatives to reduce horizontal inequalities and social exclusion can be quite similar; both take a multidimensional approach and generally target groups rather than individuals.

The social exclusion discourse in Latin America, for example, largely stemmed from a widespread recognition of the high levels of inequality throughout the region. In sub-Saharan Africa, debates on poverty reduction are increasingly focused on inequality, providing entry points for social exclusion to be addressed.

Page contents

Where is a good place to start?

Stewart, F., 2002, ‘Horizontal Inequalities: A Neglected Dimension of Development’, Working Paper 81, Queen Elizabeth House, Oxford
Why are groups important for individual welfare and social stability? When and how do horizontal inequalities lead to conflict? Current thinking about development places individuals firmly at the centre of concern for analysis and policy. Attention is focussed on inequality between individuals. This paper by the Director of the Centre for Research on Inequality, Human Security, and Ethnicity (CRISE), UK, explores why groups are important for individual welfare and social stability, and argues that inequalities between culturally formed groups (horizontal inequalities) are an important but neglected dimension of development.
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Inequality, poverty and development

The following documents analyse the important relationships between inequality, poverty and development:

CRISE Newsletter, winter 2004, The Relationship Between Horizontal and Vertical Inequalities and Social Exclusion, Queen Elizabeth House, Oxford
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Okojie, C. and Shimeles, A., 2006, ‘Inequality in Sub-Saharan Africa’, The Inter-Regional Inequality Facility, Overseas Development Institute, London
How should researchers monitor the various forms of inequality in sub-Saharan Africa? What steps should policymakers take to reduce this inequality? This paper from the Inter-Regional Inequality Facility surveys empirical studies of poverty in an attempt to establish the levels, consequences, current trends and determinants of inequality in the region. It argues that educational reforms, infrastructure development and demographic change can reduce income inequality, and that promoting equality and economic growth can together lower poverty levels.
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Naschold, F., 2002, ‘Why Inequality Matters for Poverty’, Briefing Paper 2, Overseas Development Institute, London
How is inequality linked to poverty? How important is it relative to economic growth? Inequality re-entered the mainstream development policy agenda following the World Development Report of 2001. This paper from the Overseas Development Institute draws on recent research to understand the dynamics of triangular relationship between inequality, poverty and growth. It asserts that inequality both matters in its own right, and is key to reducing poverty.
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Inequality on the international agenda

Internationally, there is growing attention to issues of inequality, as demonstrated by both the 2006 World Development Report and the 2005 Human Development Report.

United Nations Development Programme, 2005, 'Inequality and Human Development', Chapter 2 of the Human Development Report 2005: International Co-operation at a Crossroads - Aid, Trade and Security in an Unequal World, United Nations Development Programme, Human Development Report Office, New York
Does inequality matter? This chapter from the 2005 Human Development Report, from the United Nations Development Programme (UNDP), sets out the reasons why inequality is important and looks at its different dimensions. It shows how interlocking inequalities in income, health and education disadvantage the poor and argues that even modest moves towards greater distributional equity could advance human development and accelerate progress towards the Millennium Development Goals (MDGs).
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World Bank, 2006, ‘Equity and Development’, World Development Report 2006, World Bank, Washington
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Additional information resources

Inter Regional Inequality Facility at ODI
This network has been established in order to promote inter-regional dialogue and sharing about inequality between Africa, Asia and Latin America. The Facility funds research, exchanges and advocacy activities which strengthen South-South dialogue on this issue, and help build a coalition in favour of a more equal and inclusive development process.

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