How can states achieve the Millennium Development Goals in the context of severe social inequality? This introductory chapter from a World Bank book (part of the series New Frontiers of Social Policy) argues that the effective governance institutions necessary for achieving these goals can only emerge from policies that promote inclusion. There need be no trade-off between promoting inclusion and promoting economic growth. Rather, inclusive institutions can provide better services for the whole population, build human and social capital, increase agency and the rule of law and facilitate more sustainable and equitable economic development.
An ‘inclusive state’ is one “whose policies are directed toward addressing the needs of all [its] citizens and creating equal opportunities for all”. The two principal challenges to building inclusive states in developing countries are weak institutions and structural inequalities. Structural inequality involves unequal relations between categories of people and is often difficult to address because it is not recognised as unjust.
Social policy as currently practiced in the developing world is too narrow in scope. Addressing primarily economic concerns, particularly the negative consequences of growth processes and crises, it does not give sufficient attention to the processes that underpin holistic social development. Social policies, then, are public policies aimed at promoting equality of opportunity for individuals, equality of agency of groups and social integration to benefit entire societies. Using this more rounded approach to social policy will strengthen the social contract and yield better development outcomes.
The institutional environment in which social policy is formulated shapes these outcomes. The experience of OECD countries (summarised by Professor Ian Gough in the volume) shows that social policies emerges under a variety of circumstances, summarised as the “five I’s”: industrialisation, interests, institutions, ideas and internationalisation. These factors differ according to local context, giving each country a unique set of challenges. Latin American states and South Africa are examples of countries struggling with structural inequality, differences in wealth and differences in access and power, but with social movements and state intervention addressing these issues.
What then drives movement towards inclusiveness? Recognition of structural inequality is the first step in the process, but often social unrest or a national crisis is needed to precipitate change. Sustaining this change requires action on ‘strategic issues’. These include the acceptance of diversity among people, a concept of multicultural citizenship, and an effort to incorporate this diversity into public institutions. Throughout the process, participation from stakeholders is vital. Their involvement ensures greater accountability and enables constructive dialogue on the content of reforms.
Basic state functions need to be strengthened if social policy provisions are to be effective. Bridging formal and informal systems is also essential for the effective delivery of public services and for access to justice. Pro-poor justice reform, for example, can focus on the intersection of social development, policy and judicial reform by linking policy to laws, laws to rules and rules to cultural norms. Key recommendations for establishing inclusive states are:
- Systematic data collection on the relationship between diversity and inequality
- Endorsement of global charters, conventions, and declarations and enactment of national laws of non-discrimination and affirmative action
- Formulation of rules and regulations to implement inclusive policies and laws, such as affirmative action
- Implementation of targeted and tailored programmes to increase access to public services
- Careful monitoring and evaluation, including participatory monitoring, of programme outcomes and effects
- Creation of an enabling environment to encourage stakeholder involvement in policy debates.
