Social exclusion

The impact of exclusion

The existence of social exclusion makes it difficult to achieve particular social objectives, such as reducing poverty and malnutrition, because there are often hidden barriers to reaching those who are socially excluded. Social exclusion also generally involves exclusion in more than one dimension, and these can reinforce each other. For example, a combination of economic and educational exclusion makes it more difficult to advance on either front.

The following book aims to measure the consequences of social exclusion through a series of country case studies in Latin America. The chapter below outlines the findings from these case studies.

Behrman, J., Gaviria, A. and Szekely, M., 2003, ‘Social Exclusion in Latin America: Perception, Reality and Implications’, in Behrman, J. R. et al., 2003, ‘Who’s In and Who’s Out: Social Exclusion in Latin America’, Inter-American Development Bank
What are the perceptions and realities of social exclusion in Latin America? This introductory chapter to a book from the Inter-American Development Bank summarises findings from five country studies. Inequality appears to arise largely from the absence of opportunities for large segments of the population. Exclusion of some groups on the basis of gender, ethnic origin, place of residence or social status may explain inequality of opportunity. The most obvious policy responses are not always the best options.
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Page contents

Health and education
Income inequality
Exclusion, growth and poverty
Violence and insecurity
Subjective well-being
Useful websites

Health and education

The greater poverty of socially excluded groups often translates into poorer levels of health and education, particularly when their poverty is combined with locational disadvantages of remoteness and lack of infrastructure and social services.

Kabeer, N., 2005, ‘Social Exclusion: Concepts, Findings and Implications for the MDGs’, Paper commissioned as background for the Social Exclusion Policy Paper, Department for International Development (DFID), London
What insights does the concept of social exclusion offer the development studies literature? How is it relevant to key Millennium Development Goals (MDGs)? This background paper for the Department for International Development’s Social Exclusion Policy Paper, tackles these questions. It argues that the challenges that social exclusion presents to current policy concerns suggest that the ‘business as usual’ approach to development has been inadequate. Economic theories have focussed on resource-based paradigms of disadvantage, taking the individual or household as the unit of analysis. Sociologists, however, have focussed on forms of disadvantage based on the cultural devaluation of groups or categories of people in society based on who they are perceived to be.
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Lewis, M. and Lockheed, M., 2008, 'Social Exclusion and the Gender Gap in Education', World Bank, Washington DC
Why is there still a gender gap in education in some countries? This policy research paper for the World Bank Human Development Network Chief Economists Office reviews gender in education and tests the relevance of ethno-linguistic fractionalisation (ELF) in explaining cross-country differences in learning and school attainment.
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Mathieson, J. et al., 2008, ‘Chapter 8: Social Exclusion and Health Inequalities’, in ‘Social Exclusion: Meaning, Measurement and Experience and Links to Health Inequalities - A Review of Literature’, Final Report to the WHO Commission on Social Determinants of Health from the Social Exclusion Knowledge Network
What are the limits of present empirical evidence over the links between health inequality and social exclusion? How does social exclusion contribute to the theories of social inequality in health? This Social Exclusion Knowledge Network paper examines the theoretical contribution that social exclusion can make to theories of social inequality in health. It is argued that the present focus on a state of social exclusion fails to recognise the crucial causal link to power inequalities across society. It does not take into account the potential for targeted inequality amongst marginalised groups.
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Cultural exclusion can also result in ambivalence towards education, further entrenching income inequality.

Yi, L., 2005, ‘Muslim Narratives of Schooling, Social Mobility and Cultural Difference: A Case Study in Multi-ethnic Northwest China’, Japanese Journal of Political Science, Volume 6, Number 1, pp. 1-28
What explains the persistent poor educational performance of China’s Muslim minority populations? This paper from the Japanese Journal of Political Science draws on community level interviews with Muslim communities in the Qinghai-Gansu borderland to analyse the impact of cultural exclusion on ethnic minority educational attitudes and performance. There is a tension between Muslims' desire for full social citizenship in the form of rights to employment and education and the limited social and cultural capital they possess with which to achieve these goals. The party-state needs a more coherent approach to national identity and minority rights, so as not to exacerbate existing tensions between minorities and the wider society.
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Income inequality

Social exclusion can lead to and result from disparities in income distribution, with the wealthiest segments of a country’s population receiving the greatest proportion of its national income. Income inequality arises from inequities in the distribution of assets such as land, credit and education.

Barron, M., 2008, ‘Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru’, Economia, Volume 31, Number 61
What impact do discrimination and exclusion have on income inequality between indigenous and non-indigenous workers in Peru? What policies could help to reduce this inter-ethnic inequality? This paper from Economia assesses the extent to which exclusion and discrimination contribute to inter-ethnic income inequality in Peru. It finds that exclusion plays a greater role than discrimination in contributing to Peru’s inter-ethnic inequality.
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Exclusion, growth and poverty

There is some evidence that economic growth is positively related to equality. One explanation for this is that with more equality there is more investment in education, health and nutrition. There is also some evidence to show that policies designed to tackle social exclusion can lead to more equitable forms of growth as excluded groups gradually gain greater access to education, employment and business opportunities. Excluded sections of the population can often be quite large (for example, racial groups in Latin America), so targeted policies can have an impact on increasing human capital and widening economic markets, whilst reducing the risk of political instability and its overall impact on economic growth.

The poverty reducing effects of economic growth also fall off when inequality is greater. In addition, the interaction of economic inequalities with other inequalities may result in negative consequences for growth. For example, economic dynamics and innovation depend on competitive processes of entry that are stifled by unequal economic institutions. Greater equity in political institutions is also considered good for growth because it is associated with broader and better-quality provision of public education, which, in turn, translates into a better-performing workforce.

Zoninsein, J., 2001, ‘The Economic Case for Combating Racial and Ethnic Exclusion in Latin American and Caribbean Countries’, Research Report, Inter-American Development Bank, New York
What economic gains would come from ending racial and ethnic exclusion in Latin America and Caribbean countries (LAC)? This working paper from the Inter-American Development Bank employs Brimmer’s methodology to analyse household survey data from Bolivia, Brazil, Guatemala and Peru. It presents some potential gains in terms of aggregate production and income. Ending long term social exclusion could expand the economies of LACs by up to 36 percent. This would bring gains to society as a whole, not just to the excluded groups.
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Gradstein, M., 2003, ‘The Political Economy of Public Spending on Education, Inequality and Growth’, World Bank, Washington DC
This paper from the World Bank examines data on public spending on education in developing countries, revealing significant inequality in the distribution of resources between rich and poor groups. While current donor policy is to alleviate poverty through the universal provision of public services in developing countries, the evidence suggests that political dynamics within these countries often distort these goals to the disadvantage of the poor. Personal rent-seeking, in the form of political pressure from richer households, skews resource allocation, often resulting in both increased inequality and social exclusion.
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Violence and insecurity

When individuals or groups, and particularly youth, feel excluded from power structures, and deprived of legitimate outlets to express their grievances, violence can provide an opportunity for them to have a voice and to gain control over their own lives.

Hilker M. and Fraser E., 2009, 'Youth Exclusion, Violence, Conflict and Fragile States', Report prepared for DFID by Social Development Direct, London
What factors contribute to youth exclusion and increase the likelihood of youth engagement in violence? How can DFID effectively address issues of youth exclusion and violence? This report from Social Development Direct examines existing evidence and analysis on the links between youth exclusion, violence, conflict and fragile states. It highlights factors which can contribute to youth violence, and makes recommendations for DFID's work on youth exclusion and violence.
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Moser, C. and Ilwaine, C., 2000, ‘Chapter 2: Summary Findings – Perceptions of General Problems and Violence’, in Moser, C. and Ilwaine C., ‘Urban Poor Perceptions of Violence and Exclusion in Colombia’, World Bank, Washington DC
What do poor people living in urban areas in Colombia see as the most important problems affecting them and their communities? How do Colombia’s poor urban communities perceive violence and exclusion? This book chapter from the World Bank documents how people living in poor urban communities in Colombia perceive violence. It uses a participatory urban appraisal methodology to identify the main problems and types of violence affecting poor urban communities.
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Further resources on the links between conflict and social exclusion are available elsewhere in this guide. Please see: ‘The underlying causes of conflict’ in the section entitled ‘Important Aspects of Exclusion’.
For further resources on the links between exclusion and conflict, see the GSDRC Conflict guide.

Subjective well-being

The psychological aspects of exclusion are also important. These include the absence of power, voice and independence, and vulnerability to exploitation and humiliation.

The following article highlights the importance of a capacity for agency that allows poor people to improve the quality of their relationships and to secure respect and dignity for themselves. The paper argues: “The injury done to people who experience discrimination on the basis of labels they are given by society and entrenched ideas about their inferiority or societal taboos around sex, death and dirt goes well beyond that of economic deprivation and lack of political voice. When people are treated as lesser because of the colour of their skin, their sex, what they do for a living, and where they live, they can come to internalise a sense of lack of worth that profoundly affects their sense of what they can do and what they are due by society” (2008: 8)

Eyben, R., Kabeer, N. and Cornwall, A., 2008, ‘Conceptualising Empowerment and the Implications for Pro-Poor Growth’, Institute of Development Studies, Brighton
This Institute of Development Studies paper proposes a framework to enable the empowerment of the poor to be conceptually understood and operationally explored. It examines the different facets of ‘social’, ‘economic’ and ‘political’ empowerment. International development actors often lack awareness of much that is already known about these issues. These are the conceptual tools for identifying complex and mutually dependent processes that development actors can support and facilitate for achieving pro-poor growth.
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Appadurai, A., 2004, ‘The Capacity to Aspire: Culture and the Terms of Recognition’, in Rao, V. and Walton, M., ‘Culture and Public Action’, Stanford University Press
Why does culture matter for development and for poverty reduction? The capacity to aspire is a future-oriented cultural capacity. This book chapter from Stanford University Press argues that strengthening the capacity to aspire could help the poor to contest and alter the conditions of their poverty. Culture is a dialogue between aspirations and sedimented traditions. Traditions, linked to issues of social class, can conflict with development goals. Policymakers must approach the creation of a culture of aspiration through capacity building.
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Hoff K., Pandey P., 2008, 'Economic Consequences of Social Identity: Discrimination, Social Identity, and Durable Inequalities', American Economic Review, Volume 96, Number 2
What are the mechanisms by which societal discrimination affects individual achievement and why do effects of past discrimination endure once legal barriers are removed? This paper, published by the American Economic Review, reports findings of experiments in village India that explore the effect of social identity on individual performance. The link between discrimination, social identity and behaviour causes the effects of past discrimination to persist over time for well-identified groups.
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