Economic inclusion programs are proving to be effective and economical, yet they currently reach only about 10% of the world's poorest populations, according to a report by the World Bank. These programs aim to lift individuals out of poverty through cash transfers, skills training, business capital, coaching, and market access. The latest report titled "The State of Economic Inclusion Report 2024: Pathways to Scale" reveals that these initiatives have reached just over 70 million people in 88 countries.
The World Bank's Partnership for Economic Inclusion emphasizes the necessity of enhancing program quality through evidence-based design and effective monitoring. Government leadership is crucial for scaling up efforts, but collaboration with non-governmental organizations and the private sector is also essential.
“There is strong evidence of the significant impact that economic inclusion programs have on food security, consumption and income,” stated 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.”
The report provides examples from various countries demonstrating progress in economic inclusion efforts. In Zambia, a program targeting women resulted in a 19% increase in consumption and a 45% rise in business profits within a year. Similarly, Niger saw a 15% increase in consumption and doubled business revenue for women participants.
At the G20 Global Alliance Against Hunger and Poverty event in Brazil this July, the World Bank set an ambitious target to reach 500 million people with social protection measures by 2030. This includes supporting 250 million women with such programs, focusing on those most vulnerable.
“Economic inclusion programs have the potential to address critical development challenges by empowering women economically and reducing youth unemployment,” said Victoria Strokova, Program Manager at the Partnership for Economic Inclusion at the World Bank. She highlighted that while many programs target women, only one-third focus specifically on women's economic empowerment.
To further improve these programs' effectiveness, there is a call for designs that tackle legislative barriers facing women. Additionally, opportunities for youth could be expanded through enhanced skills training and partnerships with employers.
The report also identifies climate resilience as an emerging area for economic inclusion efforts. Two-thirds of current programs are incorporating practices aimed at helping communities adapt to environmental changes using strategies like climate risk insurance and low-cost green technologies.
For further details on these findings and recommendations, refer to "The State of Economic Inclusion Report 2024: Pathways to Scale."