Why economic inclusion is key to reducing poverty and empowering people

As the world grapples with complex global concerns like poverty, inequality, and climate change, it’s the poorest communities that are often hardest hit and the most challenging to support. 

To address these pressing issues, the World Bank Group has set ambitious goals to provide social protection measures to at least 500 million people by 2030, including 250 million women. 

As we work toward these aims, economic inclusion programs, which help boost the income and assets of the world’s poorest groups, will be instrumental as they are proven pathways to better job opportunities and a life of dignity.  These efforts drive change by layering solutions like digital cash transfers with skills training, business capital, coaching, and access to markets. By doing so, they contribute to breaking the cycle of poverty and building resilience. 

Globally, economic inclusion initiatives are on the rise. These programs now reach 15 million households, benefiting over 70 million people in 88 countries, according to the new State of Economic Inclusion Report 2024 by the World Bank-hosted Partnership for Economic Inclusion. Government-led programs often spearhead these efforts, having reached nearly 75 percent of these households. Nongovernmental organizations (NGOs) offer additional support and further expand the reach.   

But the fight to reduce extreme poverty is far from over, with almost 700 million people still living on less than $2.15 per day, many of whom face severe food insecurity. This recent report builds on findings from 2021, showcasing the vast potential for scaling up economic inclusion programs as we work to end poverty.  
 

Evidence backs the power of economic inclusion

Research shows that economic inclusion programs are impactful and cost-effective, and they empower individuals and communities. In Niger, for instance, household spending on food, health, education, and other goods and services grew by 15 percent thanks to such an initiative, while women’s business revenues doubled. Similarly, in Zambia, the Supporting Women’s Livelihood program led to a nearly 20 percent rise in spending on food and non-food items and a 45 percent increase in business profits, with the program breaking even within a year. In Afghanistan, participating households had 32 percent higher income and more diverse earning sources five years after an intervention, helping them endure a series of droughts and conflicts. 

Such results not only highlight the cost-effectiveness of these programs, but also their potential to deliver significant returns on investment when integrated into government systems. Our report pulls together these success stories and offers guidance on how to scale up such programs in ways that overcome the specific constraints of their participants to unleash their economic potential. 

Engaging women and youth for lasting change

One of the major impacts of economic inclusion programs can be their ability to gainfully employ women and youth. Yet more can be done. Ninety percent of these programs target women, but only a third focus explicitly on empowering women economically. A few design changes to address issues like social norms, unpaid care burdens, and legal and regulatory hurdles can further boost the impact of these efforts. 

Youth unemployment is another priority, especially in regions with a burgeoning young population. Approximately two-thirds of economic inclusion programs target youth, primarily encouraging self-employment in rural settings. In urban areas, programs that help expand wage employment through skills training, apprenticeships, and partnerships with employers could offer young people with more diverse and sustainable economic opportunities. In Bangladesh, for example, the World Bank works with the government to provide vulnerable urban youth, particularly women, with mentorship and life skills training to increase their confidence and with apprenticeships in traditionally male-dominated occupations to help unlock their economic potential.
 

Building climate resilience

Economic inclusion programs can also help address climate change. Today, 66 percent of these programs integrate climate resilience measures, equipping participants to manage environmental risks. In the Sahel, for example, nearly 600,000 vulnerable people across six countries received support to diversify their livelihoods toward more climate resilient ones. Innovative approaches, such as climate risk insurance and low-cost green technologies, can further empower communities to adapt and build resilience, linking economic inclusion with sustainable, climate-resilient livelihoods.
 

Greater reach and impact with coordinated partnerships

Scaling these programs to reach more people requires both efficiency and greater quality in their implementation. Government-led delivery systems that are supported by digital technologies and partner with NGOs, community-based organizations, and the private sector can significantly expand the reach of economic inclusion programs. 

This flexible approach, which adapts programs to local needs and outcomes so they can scale and expand successfully, needs to be embedded within national social protection systems. An integrated model of delivering employment to the poor and vulnerable, supported by protection during times of crisis, is a smart investment choice for any government committed to fighting poverty and giving all its citizens a level playing field to move up the ladder of opportunity. 
 

Toward a future of resilience with equity

The State of Economic Inclusion Report 2024 reminds us that economic inclusion is not just an investment choice for governments, it is also a path to meaningfully change the lives of millions of people who struggle daily against poverty, lack of opportunity, disillusionment, and despair. We can do better.  Whether we are policy makers, development practitioners or partners, we can try to scale up economic inclusion programs wherever possible. If we want to create a more resilient, inclusive, and equitable future, this must be an urgent priority.