policy

Reducing poverty by
tackling social exclusion
A DFID policy paper
Cover photo: A Karen Burmese refugee boy in the remnants of the Huay Kalok refugee
camp near Mae Sot, Thailand. The camp was subjected to a night-time flamethrower attack
by members of an ethnic Karen splinter group, resulting in a number of casualties and the
destruction of over 1000 dwellings. (© Paula Bronstein/Liaison/Getty Images)
Reducing poverty by
tackling social exclusion
A DFID policy paper

Published by the Department for International Development

September 2005
ii
Foreword

People need the opportunity to participate fully in the life of their community if they are to
flourish and realise their potential. But certain groups in society are systematically excluded
from opportunities that are open to others, because they are discriminated against on the
basis of their race, religion, gender, caste, age, disability, or other social identity.

People who are excluded like this are not ‘just like’ the rest of the poor, only poorer. They are also
disadvantaged by who they are or where they live, and as a result are locked out of the benefits
of development. Social exclusion deprives people of choices and opportunities to escape from
poverty and denies them a voice to claim their rights.

Social exclusion is often a cause of poverty, conflict and insecurity. If we are to tackle it effectively,
we need to recognise where it is a problem, understand it better and, where appropriate, find
different ways of working with partner governments, the international community and civil society
organisations to overcome it.

The Department for International Development (DFID) is already supporting a variety of activities to
tackle exclusion. Good work has been done, particularly in Latin America and Asia. In Africa, social
exclusion is also a growing challenge, highlighted by the African Union, the New Partnership for
Africa’s Development (NEPAD) and the Commission for Africa. Our civil society partners are also
doing an enormous amount to give excluded groups a voice, to ensure their participation in poverty
reduction programmes and to build social movements that demand stronger accountability.

This paper sets out how DFID will build on the work that is already under way. It sets out some
practical actions that DFID is taking to tackle social exclusion and make a real difference to the lives
of excluded people.

Gareth Thomas MP
Parliamentary Under-Secretary of State for International Development

iii
iv
Contents

Page

Foreword iii

Executive summary 1

1. Who is socially excluded and why this matters 3

How do people become excluded? 3
Social exclusion causes poverty 5
Social exclusion makes it harder to achieve the Millennium Development Goals 6
Social exclusion leads to conflict and insecurity 8

2. What public policy can do to reduce social exclusion 9

Legal, regulatory and policy frameworks 9
Budgets and public expenditure 9
Economic opportunities and access to services 10
Promoting participation and protecting people’s rights 11
Costs and benefits 12

3. What civil society can do to reduce social exclusion 13

Increasing accountability and promoting the rule of law 13
Influencing policymaking 13
Delivering services where the state will not 14
Tackling prejudice and changing behaviour 14

4. What donors can do to help reduce social exclusion 16

Should exclusion be a high priority in our country programmes? 16
Information and analysis 17
Policymaking and budgets 17
Policy implementation and monitoring 18
Policy dialogue and conditionality 19
Human rights and domestic accountability 19
Piloting innovative approaches 20
Direct service delivery to excluded groups 20

5. What DFID will do to help reduce social exclusion 21

Endnotes 22
v
vi
Executive summary

There are groups of people in all societies who are systematically disadvantaged because they are
discriminated against. Discrimination occurs in public institutions, such as the legal system or the
education and health services, as well as in the household and in the community.

Men, women and children who are discriminated against often end up excluded from society, the
economy and political participation. They are more likely to be poor. They are more likely to be denied
access to income, assets and services. These people suffer from social exclusion – and poverty
reduction is harder as a result.

Poverty reduction policies often fail to reach socially excluded groups unless they are specifically
designed to do so. This paper is about the challenges posed by social exclusion, and the ways
governments, civil society and donors can help to tackle them. These include:

• creating legal, regulatory and policy frameworks that promote social inclusion;

• ensuring that socially excluded groups benefit from public expenditure as much as other groups;

• improving economic opportunities and access to services for excluded groups;

• promoting their political participation in society, and their capacity to organise and mobilise
themselves;

• increasing accountability to protect citizens’ basic human rights; and

• tackling prejudice and changing behaviour.

It also recommends ways in which DFID can do more in this area, including stepping up its efforts to:

• analyse the impact of exclusion on poverty reduction in all our country programmes, in order to
decide priorities for work by region, country and sector;

• promote exchanges of best practice between national and regional organisations;

• work with other government departments and development partners to include analysis
of exclusion as a cause of conflict and insecurity in our approaches and responses to conflict
prevention and reduction;

• identify opportunities to address social exclusion in fragile states;

• strengthen the collection and analysis of statistics on excluded groups;

• work with the World Bank and regional development banks, United Nations agencies, the
European Community and other donors to make development work better for excluded groups;

1
 Reducing poverty by tackling social exclusion

• increase the inclusiveness of our own human resources practices and strengthen the diversity in
our workforce;

• commission new research and ensure adequate attention is paid to exclusion, inequality and
rights in all our research on natural resources management, HIV and AIDS, education and other
relevant areas;

• broaden and deepen our engagement with civil society to strengthen the contribution it can
make to tackling exclusion; and

• be accountable for implementation of the policy set out in this paper by evaluating progress
in 2007-08.

2
 Who is socially excluded and why this matters 1
Many women and girls are socially excluded. So are people who are discriminated against on the
basis of age, caste, descent, disability, ethnic background, HIV or other health status, migrant status,
religion, sexual orientation, social status or where they live.

In all societies some groups are socially excluded. However, the groups affected and the degree of
discrimination vary from one society to another, as do the forms that social exclusion takes. In one
context discrimination against women may pose the greatest development challenge; in another it
might be racial discrimination. And people who suffer discrimination on various fronts – for instance
disabled older women from ethnic minorities – are often the poorest.

What is social exclusion?

Social exclusion describes a process by which certain groups are systematically
disadvantaged because they are discriminated against on the basis of their
ethnicity, race, religion, sexual orientation, caste, descent, gender, age, disability,
HIV status, migrant status or where they live. Discrimination occurs in public
institutions, such as the legal system or education and health services, as well as
social institutions like the household.i

How do people become excluded?

In order to tackle social exclusion it is important to understand the processes by which people are
excluded. People are excluded by institutions and behaviour that reflect, enforce and reproduce
prevailing social attitudes and values, particularly those of powerful groups in society.

Sometimes this is open and deliberate, such as when state institutions deliberately discriminate in
their laws, policies or programmes. In Lesotho, for example, women have until recently been
disadvantaged through the law. They could not inherit land or property, get a job or sign a contract
without the permission of their husbands. In Pakistan, the evidence in court of a Muslim woman is
worth half that of a man. In many countries, certain state benefits are denied to non-citizens,
leaving them vulnerable to destitution. In other cases there are rigid social systems that decide
people’s position in society on the basis of heredity, as in the South Asian caste system.

More often, institutions perpetuate exclusion unofficially. Public sector workers who reflect the
prejudices of their society may institutionalise some kinds of discrimination. In many Indian schools,
for example, teachers expect Dalit children to do menial tasks such as cleaning the classrooms.

3
 Reducing poverty by tackling social exclusion

“ I got HIV from my husband. After a year of our marriage, my husband died
from AIDS. When it was discovered that I had become infected with HIV, my
in-laws stopped having anything to do with me and disowned me. So I had to
move back to my parents’ house.

After this tragedy I went looking for a job. Before my marriage I used to teach in
a school, so I thought when I needed a job I could apply to the same school again.
But the school authorities found out about my HIV status and refused to accept
my application. Not only that, I was also humiliated and looked down upon. Later,
I got in touch with a foundation which helped me get HIV treatment. Through

”
them I found my present job. – Madhu, HIV-positive woman, India.

Exclusion is frequently more subtle and unintentional, for example when disabled people are
excluded from services, markets and political participation through a lack of awareness of their needs
or by social attitudes, or when minority groups are excluded by language barriers. In addition, the
resulting sense of powerlessness can rob people of their self-confidence and aspirations and their
ability to challenge exclusion.

When people feel they are being judged on the basis of who they are, they may
perform less well. When people expect prejudice, it can undermine their motivation
to achieve. A study in Uttar Pradesh, India, illustrates this and shows how self-esteem
can affect performance in education.
The study tested high-school students drawn equally from scheduled and high-caste
backgrounds. The children were asked to solve a maze problem. Some children did
the test in mixed groups and their castes were concealed. Others did the test in their
caste grouping, which was announced publicly. For the former, there was no
difference in performance between caste groupings. But for those students whose
castes were revealed, there was a statistically significant difference, even when the
individuals’ backgrounds were taken into account.

Another aspect of exclusion is disadvantage on the basis not of who you are but where you live,
known as ‘spatial’ exclusion. People who live in remote and isolated areas may be prevented from
fully participating in national economic and social life. People from the ‘wrong part of town’ can find
it harder to get a job because of the social stigma that can be attached to the ‘places of the poor’
(for instance, the favelas of Brazilian cities). And people who move from one part of a country to

4
 Who is socially excluded and why this matters

another, or across borders, can suffer exclusion because they are ‘in the wrong place’. For example, in
China and former Soviet countries, men and women who migrate for work have long been unable to
register locally as citizens and are often excluded from welfare and access to public services.

Social exclusion causes poverty

For DFID, social exclusion matters because it denies some people the same rights and opportunities
as are afforded to others in their society. Simply because of who they are, certain groups cannot fulfil
their potential, nor can they participate equally in society. An estimated 891 million people in the
world experience discrimination on the basis of their ethnic, linguistic or religious identities alone.

But social exclusion also matters to DFID because it causes poverty and gets in the way of poverty
reduction. It causes poverty in two main ways.

Social exclusion causes the poverty of particular people, leading to higher rates
of poverty among affected groups.

It hurts them materially – making them poor in terms of income, health or education by causing
them to be denied access to resources, markets and public services. It can also hurt them
emotionally, by shutting them out of the life of their community.

Socially excluded people are often denied the opportunities available to others to increase their
income and escape from poverty by their own efforts. So, even though the economy may grow and
general income levels may rise, excluded people are likely to be left behind, and make up an
increasing proportion of those who remain in poverty. Poverty reduction policies often fail to reach
them unless they are specifically designed to do so.

Social exclusion reduces the productive capacity – and rate of poverty

reduction – of a society as a whole.

It impedes the efficient operation of market forces and restrains economic growth. Some people with
good ideas may not be able to raise the capital to start up a business. Discrimination in the labour
market may make parents decide it is not worth while to invest in their children’s education.

Moreover, exclusion does not cause poverty through a simple sorting of those who are ‘in’ or ‘out’,
those who can or cannot participate in society. Socially excluded groups often do participate but on
unequal terms. Labour markets illustrate this most clearly by exploiting the powerlessness of
excluded groups and at the same time reinforcing their disadvantaged position.

5
 Reducing poverty by tackling social exclusion

Migrants without papers are vulnerable to being rounded up and deported at a

moment’s notice. They often have no access to public services – including
schooling for their children – and may find themselves at the mercy of criminal
gangs looking to exploit their situation:

“ Having no ID made us fear for our security – and when employers found
out that we were migrant workers, they didn't keep their agreement at all. Every
construction site underpays us. At some places they don’t pay us at all. Shan
people have to do all the risky and heavy jobs. We have to work harder, for

”
longer hours and get paid less. – Nan, Burmese migrant worker in Thailand.

Social exclusion also increases the level of economic inequality in society, which reduces the poverty-
reducing impact of a given growth rate. Latin America would have half as many people living in
poverty today if it had enjoyed East Asia’s more equal distribution of assets in the 1960s.

Social exclusion makes it harder to achieve the Millennium

Development Goals

Social exclusion explains why some groups of people remain poorer than others, have less food, die
younger, are less economically or politically involved, and are less likely to benefit from services. This
makes it difficult to achieve the MDGs in some countries without particular strategies that directly
tackle exclusion.

Poverty and hunger

• In Vietnam, the government estimates that, by 2010, 90% of the poverty in the country will be
among ethnic minorities.

• In Bolivia, the poverty rate among the non-white population is 37%, compared with 17% for
the white population.

• In Tanzania, households with disabled members are 20% more likely to be living in poverty.

• 100 million older people live on less than a dollar a day, and 80% of older people in developing
countries have no regular income.

• Women account for nearly 70% of the 1.2 billion people currently living in extreme poverty.

6
 Who is socially excluded and why this matters

Maternal health and child mortality

• In Brazil, nearly three times as many black women as white women die from the complications
of pregnancy and childbirth.

• In Guatemala, the number of children dying before they reach their fifth birthday is 56 in every
1000 for children of European descent, compared with 79 in every 1000 in the indigenous
population.

• In India, it is estimated that discrimination against girls increases the total rate of child mortality
by 20%.

Universal primary education

• In Serbia and Montenegro, 30% of Roma children have never attended primary school.

• In the Indian states of Uttar Pradesh and Bihar, primary school enrolment for scheduled caste
and scheduled tribe girls is 37%, compared with 60% for girls from non-scheduled castes.
Among boys from non-scheduled castes, 77% are enrolled.

Gender equality

• A study in Namibia found 44% of widows lost cattle, 28% lost small livestock, and 41% lost
farm equipment in disputes with their in-laws after their husbands died.

• Women hold fewer than 13% of the world’s parliamentary seats – and in developing countries
they hold fewer than 9% of seats.

• Globally, 16-50% of women in steady relationships have been physically assaulted by their
partners.

Combating HIV/AIDS, malaria and other diseases

• In China, although ethnic minorities make up less than 9% of the population, they account for
37% of known cases of HIV.

• In Guatemala, 87% of children of European descent are vaccinated against measles, compared
with 70% in the indigenous population.

• In Africa, 80% of 15-19-year-olds living with HIV and AIDS are women.

7
 Reducing poverty by tackling social exclusion

Social exclusion leads to conflict and insecurity

Social exclusion is a leading cause of conflict and insecurity in many parts of the world. Excluded
groups that suffer from multiple disadvantages may come together when they have unequal rights,
are denied a voice in political processes and feel marginalised from the mainstream of their society.
Peaceful mobilisation may be the first step, such as marches, strikes and demonstrations. But if this
has no effect, or if governments react violently to such protests, then groups are more likely to resort
to violent conflict if they feel there is no alternative.

In Guatemala, what started as a mainly peaceful and not very strong protest turned into a 20-year
civil war. In Cote d’Ivoire, violent government reaction appears to have spurred violent opposition.

When social groups feel unequal and suffer compared with others in society, conflict is more likely.
There are many examples: the north-south conflict in Sudan; conflict between Hindus and Muslims in
India, or between ethnic groups in Burundi, Rwanda and Kosovo; the separatist movement in Aceh,
Indonesia; and the sectarian violence in Northern Ireland.

Research over several decades has revealed that political and social forms of inequality are the most
important factors in outbreaks of violence (particularly ethnic conflicts, revolutions and genocides).ii
In sub-Saharan Africa, the risk of ethnic war is ten times higher where there is active discrimination
against one or more ethnic groups.

In Sierra Leone, social exclusion is now understood to have been a main cause of
prolonged civil war, to a greater extent than either the diamond trade or political
instability. Eight years of conflict helped provoke a revolt of the youth, who turned to
guerrilla insurgency in reaction to their political, economic and social exclusion by
powerful urban elites, rural chiefs and elders. In the post-conflict period, DFID, as the
largest bilateral donor, has supported youth inclusion in government and civil society
projects to empower young people.

Social exclusion also causes insecurity in the form of gang violence. Young people who feel alienated
from society and excluded from job opportunities and decision-making may turn to violence and
crime as a way of feeling more powerful – as shown by experience in Central America. Young men
who feel disenfranchised, lack jobs and have few local community facilities may join territorial or
identity-based gangs.iii This creates urban no-go zones where residents become even more socially
and economically excluded on the basis of where they live, as has occurred in Jamaica.

8
 2
What public policy can do
to reduce social exclusion

Government policies can exacerbate social exclusion, or they can reduce it. There are many examples
of governments acting successfully to lessen exclusion and its impact on poverty. The main ways they
have done this are:

• by creating legal, regulatory and policy frameworks that promote social inclusion;

• by ensuring that socially excluded groups benefit from public expenditure at least as much as
other groups;

• by improving economic opportunities and access to good-quality services for excluded groups; and

• by promoting political participation by all groups in society.

Legal, regulatory and policy frameworks

Many societies have long-established patterns of discrimination. Most states now have legislation
banning overt discrimination. Some countries go further and introduce ‘positive action’, such as
targeting support for skills development on traditionally under-represented groups, or even
‘affirmative action’ to discriminate in favour of certain groups.

Such policies have a mixed track record and could risk causing a backlash, but if handled sensitively
they can encourage economic production, promote growth and strengthen social cohesion.

In Malaysia, following anti-Chinese riots in 1971, the government implemented a

30-year affirmative action programme to tackle poverty among the excluded
indigenous Malay population. Tensions remain between the Chinese and Malay
communities, but inequalities have been reduced and there has been no recurrence
of violence.

For policies and legal frameworks to have any effect, the institutions in charge of taking these
forward may need to be strengthened. Ministries responsible for excluded groups need political
influence in order to negotiate for resources and monitor progress. The government in Brazil is
strengthening such ministries, and has located gender and race ministries in the Presidency where
they have more influence.

Budgets and public expenditure

Much can be done to tackle exclusion through the budget process. There are impressive examples of
collaboration between governments and civil society to analyse who benefits from public policy and
expenditure and to improve the benefits for those who have missed out (such as social budget

9
 Reducing poverty by tackling social exclusion

initiatives in Bangladesh and gender budgets in Tanzania). In Brazil, the National Audit Office plays
an important role in highlighting inequalities in public spending between different regions and
different races.

Social protection – including welfare payments such as pensions and benefits – can also play an
important role in reducing vulnerability and poverty. It can go a long way towards overcoming cycles
of poverty and exclusion that repeat themselves generation after generation.

Social transfers provided to those such as grandparents, orphans and vulnerable children, and
disabled people not only enable people to survive, but also allow them to access healthcare and
education. Research shows that money from these transfers is also used to invest in assets that
enable people to make a living and earn money in the longer term.

Pensions in South Africa not only reduce household poverty but also enable more
children to attend school. More than 30% of pensions are spent on grandchildren’s
education. In Bangladesh, payments under the cash for education programme led to
20-30% higher enrolment rates for schoolchildren.

Economic opportunities and access to services

Some excluded groups have no access to public services, limiting their opportunities for long-term
economic, social and human development. Some measures that have been effective in extending
access include free school meals (for example in some Indian states) and abolishing fees for
healthcare and education.

“ There are very few health facilities in my commune and they are far away
from our village. When we get seriously ill we have to spend a lot of money and
travel long distances. Because of lack of health services, the health situation of
indigenous people in my province is very bad; when their health suffers they

”
cannot work and become weak and poor.

– Yun, a 24-year-old woman from the Phnong indigenous group in Cambodia.

Economic empowerment of excluded groups is also vital if they are to work their way out of poverty.
Governments can help to break down barriers to labour markets and services.

10
 What public policy can do to reduce social exclusion

For black people in Brazil, racial discrimination has been a major obstacle to
accessing equal economic, social and political opportunities. The 2000 census
revealed that black Brazilians have far less schooling, far higher unemployment rates
and worse jobs than their white counterparts.
The present government in Brazil, with support from DFID, set up the inter-ministerial
working group Enhancing the Value of the Black Population. This has created a
number of initiatives to overcome the institutional barriers faced by black people,
such as fostering cooperation between black-owned businesses in Brazil and abroad,
and instilling ‘social responsibility’ practices in the private sector.
There are also new pre-university entrance courses aimed at improving black people’s
access to university, and other technical, professional and academic training to build
skills and capabilities.

Promoting participation and protecting people’s rights

The main international human rights agreements all promote measures to tackle discrimination. But
individual countries’ governments are the only bodies that protect those rights, by producing their
own domestic legislation to guarantee them.

In South Africa, the new constitution has taken these rights even further, focusing specifically on
poverty and enhancing the economic and social rights of historically disadvantaged groups such as
women and black people.

In Bolivia, representatives of the local electoral bodies have been working to issue
identity cards to excluded groups, of whom an estimated 70% lacked identification
papers. Without these, they could not vote, access services, inherit land, or send their
children to school. A whole new generation of indigenous people, women and others
now have access, for the first time, to the political system.

Participation in decision-making can bring about positive change at both national and local levels.
Engaging with excluded people, and empowering them to take an active role in decisions that affect
their lives (for example running community schools or changing the language in which children are
taught), will help bring about longer-term benefits, such as an increase in literacy and an enhanced
commitment to schooling.

11
 Reducing poverty by tackling social exclusion

Costs and benefits

While many measures to promote inclusion incur costs, in some cases these are minimal and they
can often be reduced by taking account of the needs of excluded groups from the start of the
planning process. Thinking about the inclusion of disabled children from the outset would enable
schools to implement inclusive education programmes, bringing long-term benefits to the community.

The advantages of more inclusive policies also need to be taken into account, to enable a fair cost-
benefit analysis. These advantages are too often ignored, and too few of them are pursued.

For instance, better access to good-quality education for ethnic minority children in remote regions
makes them more likely to find decent jobs and contribute to economic growth. Tackling social
exclusion can also save public expenditure in the long term, for example by averting violent conflict
and by preventing the spread of HIV and AIDS through programmes that deal with stigma
and discrimination.

12
 3
What civil society can do
to reduce social exclusion

First and foremost, excluded groups themselves have to be involved in changing their situation. This
is critical, given that the political situation and government action or neglect are often responsible
for exclusionary policies. In order to make lasting progress, it is often necessary to support excluded
people so they can successfully challenge the power structures that cause their exclusion.

“ ” We want to be able to make our country feel better. We want to be part

of that change. – Florence, young woman, Kenya.

Civil society plays an important role. It does so in four main ways:

• by increasing accountability and demanding that citizens are protected by the rule of law;

• by influencing policymaking;

• by delivering services where the state will not; and

• by tackling prejudice and changing behaviour.

Increasing accountability and promoting the rule of law

Social movements play an important role in challenging governments and ensuring they are more
accountable to their citizens and meet their legal obligations. These include governments’ obligations
to protect and realise the human rights of the whole population in a non-discriminatory way.

Civil society organisations (CSOs), such as faith groups and charities, can help excluded groups to
exercise their rights and obtain redress where this is not happening. In South Africa, for example, the
Treatment Action Campaign in 2002 challenged the government on its constitutional obligations and
secured the right for people living with HIV and AIDS to have access to anti-retroviral treatment. They
achieved this through a combination of active participation by people living with HIV and AIDS and
strong alliances with key civil society groups, such as trade unions, churches and the media.

Influencing policymaking

CSOs also have a role in advocating increased representation and voice for excluded groups and
giving them a say in policy- and decision-making. They can link grassroots work to national and
international policy processes. But some governments may be threatened by the voice of civil society,
and may try to undermine or prevent CSOs from playing this advocacy role. In such cases, other
avenues should be explored.
13
 Reducing poverty by tackling social exclusion

International alliances are increasingly important in linking CSOs campaigning for groups like women
and girls, children and young people, disabled people and older people. Organisations like HelpAge
International, for example, have developed effective alliances to gain commitments by UN member
states to improve public services and provide social protection for older people.

Delivering services where the state will not

In fragile states where public institutions are extremely weak or even non-existent, CSOs can also
play a crucial role in delivering services to excluded groups who have no access to public services.

But there are also many other countries where some services are simply not reaching excluded
groups. In Bangladesh, large local CSOs, such as the Bangladesh Rural Advancement Committee
(BRAC) and Proshika, play a key role in delivering education and health services in urban slums.

The Self-Employed Women’s Association in India, a trades union for women in the informal sector,
has had a major impact on the lives of these women by providing direct services such as primary
healthcare, savings and insurance. It combines these with advocacy for policy change at municipal,
state, national and global levels, challenging rules that discriminate against the women’s interests
(such as registration of trade unions).

There are risks. CSOs may reflect patterns of exclusion in the wider society. Where they provide
services they may treat socially excluded groups as passive recipients of welfare, rather than people
with equal rights who are capable of taking their own decisions and contributing to society if given
the opportunity. Governments may also rely on CSOs to provide services that they themselves should
be providing. However, at times CSOs provide a vital lifeline for excluded groups.

Tackling prejudice and changing behaviour

A strategy to tackle exclusion has to challenge deep-seated attitudes and prejudices. Facing such
attitudes can affect people’s self-confidence. When people feel they are being judged on the basis of
who they are, they may perform less well. The expectation of prejudice can undermine the motivation
to achieve.

Civil society can play an important role in helping to change attitudes. The media, in particular, while
they have the potential to reinforce prejudices, can also play an important role in changing attitudes
and behaviour.

14
 What civil society can do to reduce social excusion

In many African countries the media have been effective in tackling stigma and discrimination on HIV
and AIDS, through popular drama series like Soul City, and in promoting debate on social issues,
such as rape and domestic violence. In countries that have suffered conflict the media can play a
critical role in promoting peace, national unity and responsible government. For instance, Radio
Okapi in the Democratic Republic of Congo helped to prevent backsliding into conflict.

“ Society needs to find a different way of looking at us. And the media can
play a very important role in passing on useful information and so be

”
instrumental in changing people’s attitudes.

– Madhu, HIV-positive woman, India.

15
 4 What donors can do to help reduce social exclusion

Tackling exclusion requires the concerted effort of the international community. Exclusion is
increasingly part of the work of international bodies such as the World Bank, the European
Commission (EC) and the International Labour Organisation. What this means for DFID is that we do
not, and need not, always take the lead. Much of DFID’s support is channelled through partners such
as these. They offer a global reach that we do not have.

We aim to strengthen their ability to support effective national action by encouraging donors to
coordinate their efforts and work together to take a consistent approach. We also provide high-level
technical assistance. We are already the lead donor to the UN Development Fund for Women
(UNIFEM) and contributed £64 million this year to the UN Children’s Fund (UNICEF). And our work
with the EC targets the social exclusion of ethnic groups, disabled people, women and young people.

The main ways in which donors can support national action are:

• by ensuring their own programmes take account of exclusion;

• by increasing their own and others’ awareness of the principal forms of exclusion in
each country where they work and the policies which contribute to or counteract social
exclusion there;

• by helping in lesson-learning and spreading good practice across countries and regions; and

• by holding policy discussions with partner governments.

Should exclusion be a high priority in our country programmes?

Social exclusion does not always cause poverty or lead to insecurity. Not all excluded people are
poor. And not all poverty is explained by discrimination or exclusion. All societies, including the UK,
feature some forms of exclusion. It may not always be appropriate for all DFID country programmes
to prioritise action against exclusion. The first step is to undertake a thorough analysis of exclusion in
the national context and assess what priority we should give it.

Certain questions must be asked. What is the impact of exclusion on poverty reduction? Who is
affected? Through which institutions and processes? What are the main constraints to tackling
exclusion? Where are the entry points and opportunities for doing so? And whom should we
work with?

Once we know the answers to these questions, we can decide how and where to focus our efforts,
and what types of approaches would be most appropriate. At the very least, donors should ensure
that they are not inadvertently exacerbating exclusion. And in tackling exclusion, donors will need to
be flexible and employ different approaches and strategies.

16
 What donors can do to help reduce social exclusion

Information and analysis

Donors can help by increasing their own and others’ awareness of the principal forms of exclusion in
each country where they work and the policies which contribute to or counteract social exclusion
there. The impact of exclusion on poverty reduction and insecurity will vary in importance from
country to country, as will the processes through which it operates and the constraints on tackling it.
It is important to understand these in order to decide on priorities and take effective action.

DFID uses a ‘Drivers of Change’ approach to analyse the way power works in a
society, and to understand the formal and informal institutions and incentives that
drive change or maintain the status quo. This type of analysis can provide deeper
insights into how exclusion operates in a particular context, and help identify options
to bring about more inclusion.

Governments are often hamstrung by a lack of information on excluded groups. Donors can help
them strengthen statistical gathering and analysis. The joint DFID and World Bank Gender and Social
Exclusion Assessment in Nepal helped the government see how people were affected by caste,
gender and ethnic group. This showed the poorest group in the country was the Muslim minority
(5%) – which neither the government nor donors had realised.

In some cases a Poverty and Social Impact Assessment (PSIA) may be the best way to open up policy
debate and provide a strong focus on exclusion processes. For example, the public expenditure PSIA
in Rwanda found that reform programmes did not recognise the problems faced by certain groups
and were insufficiently targeted. It proposed quotas to ensure inclusion of women, youth, disabled
people, ex-combatants and men released from prison.iv

Policymaking and budgets

Where exclusion is found to be a significant cause of poverty, a country’s policies and national
spending need to reflect this. Donors can support governments’ ability to make policy choices by
providing technical assistance and help with lesson-learning and spreading good practice across
countries and regions.

Sometimes it will be appropriate to support the integration of inclusive principles into mainstream
government policy. In other cases targeted policies may be better. It can be more fruitful to engage
with a government on issues it regards as important or which have a political profile. In Burma, a
fragile state, the government views the HIV and AIDS pandemic as a threat to its armed forces. This
opened up an opportunity for DFID to support a large HIV and AIDS programme.

17
 Reducing poverty by tackling social exclusion

Donors can also support governments in increasing the participation of excluded groups in
policymaking. In Nicaragua, donors supported the CONPES,v which was established by constitutional
decree as a forum for consulting civil society on the Poverty Reduction Strategy Paper (PRSP). It also
has a mandate to monitor all social and economic policy commitments.

Where possible, DFID provides general budget support to strengthen governments’ financial capacity.
Donors can also help governments change the way they formulate and monitor budgets to ensure
resources reach excluded groups. In Uganda, the primary healthcare grant is allocated to districts in
a way that results in the four poorest districts getting about 40% more primary healthcare funding
per person than the richest.

Where general budget support is not feasible, donors can focus their support on a sector or
programme, or provide pooled financial support. Social funds are increasingly being used in
fragile states, and can improve the relationship between isolated or excluded communities and
the state. DFID supports the National Solidarity Programme in Afghanistan, which helps transfer
cash grants direct to communities and has in many places improved the involvement of women
in decision-making.

Policy implementation and monitoring

Donors can support the strengthening of ministries responsible for implementing policies to benefit
excluded groups. For example, in the Western Balkans, Russia and Ukraine, DFID has helped social
protection systems become inclusive, participative and targeted to vulnerable groups. Programmes
can also help address exclusion by tackling discriminatory practices in service delivery. In Nepal, DFID
supports the Safer Motherhood Project for lower-caste women, which challenges service providers’
attitudes and ensures that information on pregnancy and birth is accessible to different ethnic and
isolated groups.

Donors can also support the development of inclusive ways to assess performance and monitor
progress. Surveys that show how money is spent on different groups of people can tell us who is
benefiting and highlight inequalities. Gender budgets are increasingly recognised as important in
achieving gender equality. These methods can help create new incentives in government to address
other forms of exclusion too.

All of the above can help where inability to act or limited capacity is hindering governments in
tackling exclusion. But in many cases there is little political commitment. In those cases, there are a
number of areas where donors can focus their efforts.

18
 What donors can do to help reduce social exclusion

Policy dialogue and conditionality

As a minimum, donors can be clear about their values and expectations. The UK recently adopted
a new policy on partnerships.vi This makes it clear that an effective aid partnership should be based
on a shared commitment to respecting international obligations, including those on human rights.
DFID will use partnership agreements like memoranda of understanding to ensure progress on
these obligations.

Human rights and domestic accountability

Donors can support programmes that seek to strengthen the rights, voice and political
representation of excluded groups. In Peru, many indigenous groups do not speak Spanish and
most of them live in remote and isolated areas. They have faced discrimination, had inadequate
access to services and been unable to realise their rights and responsibilities as citizens. DFID has
supported a number of programmes focusing on governance, accountability and a rights-based
approach, such as El Gol, which educates Quechuan peoples about elections, their rights and the
importance of political participation.

Donors can also support initiatives that increase the accountability of governments to their citizens
and particularly excluded groups. This may require strengthening parliamentary processes and the
judiciary, to which government is accountable. It may also require supporting media and information
campaigns. For example, in the Democratic Republic of Congo, where DFID supports media reform,
the media have helped re-establish the rule of law by reporting human rights abuses and violations.

Empowering excluded groups themselves is critical. Donors can help strengthen advocacy and
monitoring. In Cambodia, for example, DFID’s partner Action on Disability and Development works to
ensure that disabled people themselves advocate for policy change by supporting self-help groups at
local level and federations of disabled people at district level.

“ There is strength in our unity as this will ensure that our voice is heard loud
and clear, leading to a change in attitudes and policies.

– Frederick, disabled young man, Kibera slums, Nairobi.

”
19
 Reducing poverty by tackling social exclusion

Wider alliances for change, which also involve the middle classes or parts of the elite, are also
possible, and donors can help facilitate them. The lives of at least some of the ‘non-excluded’
would be better if there were less social exclusion. If they realise this, they may be prepared to
support public action to bring it about. For example, faith groups and religious organisations can
help create alliances between excluded groups and the middle classes, on the basis of social
solidarity and responsibility.

Piloting innovative approaches

Pilots can demonstrate to governments what can be done, test new approaches and provide a basis
for long-term progress. Giving specific ministries or departments assistance in setting up innovative
pilots can help them demonstrate to others what is feasible.

Direct service delivery to excluded groups

Where the government’s ability to act is very weak or where the political environment is hostile, for
example in fragile states, NGOs and the UN can play an important role in direct service delivery to
isolated and excluded populations. In Sudan, for example, UNICEF has been linking marginalised
communities and regional levels of government to improve the delivery of basic services.vii

20
 5
What DFID will do to help
reduce social exclusion

DFID is already supporting a variety of activities to tackle exclusion. A recent review of DFID’s work
on social exclusion found that its experience was considerable. A number of the examples given
above benefit from DFID funding. We will continue these and other forms of current support.

We need to build on this experience and incorporate efforts to tackle exclusion into relevant policies
and programmes and into the international system. So DFID will step up its efforts to:

• analyse the impact of exclusion on poverty reduction in all our country programmes, in order to
decide priorities for work by region, country and sector in our Country Assistance Plans and
regional Directors’ Delivery Plans;

• promote exchanges of best practice between national and regional organisations;

• work with other UK government departments and development partners around the world to
include analysis of exclusion as a cause of conflict and insecurity in our approaches and
responses to conflict prevention and reduction;

• identify opportunities to address social exclusion in fragile states;

• strengthen the collection and analysis of statistics on excluded groups;

• work with the World Bank and regional development banks, United Nations agencies, the
European Community and other donors to make development work better for excluded groups.
This will include continuing substantial financial and technical support to strengthen their
capability to take forward work in this area, because DFID does not and should not always take
the lead, but works with a range of international organisations to strengthen their ability to
support effective national action;

• increase the inclusiveness of our own human resources practices and strengthen the diversity
in our workforce;

• commission new research and ensure adequate attention is paid to exclusion, inequality and
rights in all our research on HIV and AIDS, education and other relevant areas;

• broaden and deepen our engagement with civil society (such as Diaspora communities, disabled
people’s organisations, faith groups and minority ethnic groups) to strengthen the contribution it
can make to tackling exclusion; and

• be accountable for implementation of the policy set out in this paper by evaluating progress
in 2007-08.

21
 Endnotes

i Socialinclusion is one of three cross-cutting principles in DFID’s Human Rights Strategy, Realising
Human Rights for Poor People (2000). Building socially inclusive societies based on the values of
equality and non-discrimination is critical if all people are to be able to claim their rights. This
position paper builds on the social exclusion aspects of that strategy. It also builds on the Gender
Strategy, Poverty Elimination and the Empowerment of Women (2000). Gender inequality caused
by discrimination is a particularly harmful form of social exclusion that spans the globe and presents
specific challenges.

ii
Besançon, M., ‘Inequality in ethnic wars, revolutions, and genocides’ Programme on Intrastate
Conflict, John F. Kennedy School of Government, (2005), Harvard University.

iii
Moser, C. and Rodgers, D. (2004) ‘Change and violence in non-conflict situations’, paper prepared
for the DFID Urban and Rural Change Team.

ivBooth, D. and Curran, Z. (2005), ‘Developing the empirical evidence for DFID’s strategy on
exclusion: Aid Instruments and Exclusion’, ODI unpublished manuscript.

v Consejo Nacional de Politicas Economicas y Sociales.

vi Partnerships for poverty reduction: rethinking conditionality, (March 2005), DFID.

vii Torres,
M.M. (January 2005), ‘Service delivery in difficult environments: the child friendly
community initiative in Sudan’, DFID unpublished paper.

22
Department for International Development
DFID, the Department for International Development: leading the British government’s fight against world poverty.
One in five people in the world today, over 1 billion people, live in poverty on less than one dollar a day.
In an increasingly interdependent world, many problems – like conflict, crime, pollution, and diseases such as
HIV and AIDS – are caused or made worse by poverty.
DFID supports long-term programmes to tackle the underlying causes of poverty. DFID also responds to
emergencies, both natural and man-made.
DFID’s work forms part of a global promise to

• halve the number of people living in extreme poverty and hunger

• ensure that all children receive primary education
• promote sexual equality and give women a stronger voice
• reduce child death rates
• improve the health of mothers
• combat HIV & AIDS, malaria and other diseases
• make sure the environment is protected
• build a global partnership for those working in development.

Together, these form the United Nations’ eight ‘Millennium Development Goals’, with a 2015 deadline.
Each of these Goals has its own, measurable, targets.
DFID works in partnership with governments, civil society, the private sector and others. It also works with
multilateral institutions, including the World Bank, United Nations agencies, and the European Commission.
DFID works directly in over 150 countries worldwide, with a budget of nearly £4 billion in 2004.
Its headquarters are in London and East Kilbride, near Glasgow.
DFID’s headquarters are located at:
1 Palace Street, London SW1E 5HE, UK
and at:
Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA, UK
Tel: +44 (0) 20 7023 0000
Fax: +44 (0) 20 7023 0016
Website: www.dfid.gov.uk
E-mail: enquiry@dfid.gov.uk
Public Enquiry Point: 0845 300 4100 or +44 1355 84 3132 (if you are calling from abroad)
© Crown copyright 2005
Copyright in the typographical arrangement and design rests with the Crown. This publication (excluding the logo)
may be reproduced free of charge in any format or medium provided that it is reproduced accurately and not used
in a misleading context. The material must be acknowledged as Crown copyright with the title and source of the
publication specified.
Published by the Department for International Development. Printed in the UK, 2005, on recycled material
containing 80% post-consumer waste and 20% totally chlorine free virgin pulp.
Product reference: PD 043
ISBN: 1 86192 719 3