Social Exclusion and Poverty Linkages in Asian – Context Sukhadeo Thorat

Issues Studies shows that poverty level high and concentrated in some groups Social/ethnic/cultural/gender/race/religion /other group identity- Why Poverty high? Use of Social Exclusion Framework Defining Social Exclusion Consequences of Exclusion on poverty Remedies Against exclusion for poverty reduction.

Conceptualising Social Exclusion SE is denial of equal opportunity in markets and non-market exchange to group- Group and Non Economic feature is important a) It imbedded in social relations, a) It imbedded in social relations, b) Involve denial of access to sources of income, education, Civil rights,governance b) Involve denial of access to sources of income, education, Civil rights,governance c) operate through market and non market transactions. c) operate through market and non market transactions. Individual verses group Exclusion Individual verses group Exclusion

Consequences of exclusion /discrimination Depends on functioning of Social/economic institutions and degree to which they are exclusionary in outcome.

Consequence on poverty through growth On Economic Growth: Indirect Impact Discrimination leads to imperfect market situation Discrimination leads to imperfect market situation Imperfection brings less than optimum allocation of resources Imperfection brings less than optimum allocation of resources Economic outcome less than optimum, Economic outcome less than optimum, Unemployment consequences, Unemployment consequences, Civil rights and lack of participation. Civil rights and lack of participation.

Direct Consequences on poverty Low ownership of income earning assets,employment,wage earning skill, education, employability skill, education, employability All leads to lower income and high poverty, Civil and political rights – lack of participation in political process and governance. Inter-group-inequality and inequality foster inter- group conflict.

Remedies against Exclusion Two Alternative Views – Market Competitiveness and Market Intervention Dual strategy (a) Compensatory Measures of Economic/Educational Empowerment Redistribution of land and non land assets Capital, Entrepreneur skill for business Educational Development, Housing, Social amenities etc.

(b) Equal Opportunity Policy Four Measures- a) Legal safeguards -Anti-discrimination laws b) Equal and fair share in income earning assets Employment, education, housing,-affirmative action c) In executive and governance- Making Invisible Visible in data system Studies on forms and consequences