Economic Inclusion Programs Now Benefit 92 Million People Worldwide

Development

Economic Inclusion Programs Now Benefit 92 Million People Worldwide
Unprecedented surge in these programs seen in 2020, World Bank report says
WASHINGTON, Jan. 26, 2021 — Economic inclusion programs, which help boost income and assets of the world’s poorest, are on the rise in 75 countries, reaching approximately 20 million poor and vulnerable households, and benefitting nearly 92 million individuals. This surge comes at a crucial time, as more than 700 million people around the world face extreme poverty, a number on the rise for the first time in two decades.

According to the World Bank’s newly published “State of Economic Inclusion (SEI) Report 2020: The Potential to Scale,” economic inclusion programs —usually a combination of cash or in-kind transfers, skills training or coaching, access to finance, and links to market support— are fast becoming a critical instrument in many governments’ large-scale anti-poverty strategies. And they are likely to continue, especially in areas affected by conflict, climate change, and shocks, due to the COVID-19 pandemic.

“One of the most stubborn challenges we face in development is positively transforming the lives of the extreme poor and vulnerable— a problem exacerbated by the COVID-19 pandemic,” said Mari Pangestu, World Bank Group Managing Director. “This report presents—for the first time—a systematic review of economic inclusion programs around the world, and sheds light on how governments can best invest in social protection, jobs, and financial inclusion, to help the poor build a better future for themselves.”

The SEI Report is a result of a unique collaboration under the Partnership for Economic Inclusion (PEI). PEI is a dedicated platform to support the adoption and adaptation of national economic inclusion programs working with a variety of stakeholders, including national governments and bilateral, multilateral, non-governmental, research, and private sector organizations…

The report examines over 200 programs, across 75 countries. It finds that governments around the world are increasingly scaling up economic inclusion initiatives through social safety nets. In-depth case studies covering the Sahel, Bangladesh, Peru and India highlight the evolution of economic inclusion programs, and how they are addressing challenges such as urbanization, gaps in human capital accumulation, adaptations to shock, and technological change.

The implications of COVID-19 feature broadly in the report, which looks at the fallout of the pandemic at the household as well as institutional level…