The Bhutanese Leading the way.
Social exclusion, particularly of vulnerable groups, such as LGBTQI+ individuals and people with disabilities (PWD), poses significant economic challenges for both individuals and society. The consequences of exclusion extend far beyond the immediate impact on affected individuals; they stifle innovation, reduce productivity, and place an undue burden on healthcare systems.
Globally, the World Bank estimates that gender inequality alone results in a loss of human capital worth USD 160.2 Trillion. This staggering figure highlights the financial consequences of failing to integrate marginalized groups into the workforce.
The exclusion of LGBTQI+ individuals and PWD limits their access to education, employment, and healthcare, curtailing their ability to contribute meaningfully to the economy.
Estimates suggest that nations forego up to 7 percent of their Gross Domestic Product (GDP) due to the exclusion of persons with disabilities.Contributing factors for this estimate include the interplay between low investment in accessible education, leading to un- and underemployment, which increases the likelihood of poverty and dependence on social welfare programs.
Professor M V Lee Badgett, co-director of the Center for Employment Equity at the University of Massachusetts Amherst, argues that inclusive practices enhance economic outcomes by leveraging the full potential of human capital. When individuals can participate fully in society, their skills, creativity, and knowledge drive economic growth.
She said that the negative effects of social exclusion are particularly pronounced in education and employment. Discrimination often leads to bullying and harassment in educational settings, resulting in lower academic achievement for those who do not conform to traditional gender norms. In the workforce, stereotypes and discriminatory practices can lead to job loss, underemployment, or exclusion from formal job sectors, further entrenching economic disparities.
Dechen, a cisgender gay man, describes his own experiences of exclusion.
He said, “Visible discrimination at work or in social spaces is not always evident. However, when someone expresses their authentic self, especially leaning towards more effeminate traits, there is often significant pushback from colleagues and social circles. This can include ridicule or ostracism. Many feel the need to adopt traditionally masculine characteristics to be accepted, which leads many queer individuals to stay within their own communities for support.”
The economic costs of exclusion are not confined to the LGBTQI+ community; individuals with disabilities also face significant barriers. Combatting the Costs of Exclusion for Children with Disabilities and their Families, a report by UNICEF emphasizes that the economic and social costs of exclusion for disabled individuals can be staggering, affecting both families and the broader economy.
Families caring for members with disabilities incur both direct and indirect costs, straining their finances and leading to difficult choices such as sacrificing land or taking lower-paying jobs to provide care.
Pema Dorji shares a story about a friend who exhibits severe anxiety.
“I have a friend who struggles to face crowds, and often takes reserved cabs to travel distances costing her a lot. It’s heartbreaking to see how social exclusion affects her mental health and daily life,” he said.
Similarly, Tshering recalls witnessing his younger brother, who was often quiet and reserved, being harshly criticized for not being able to socialize in larger settings.
“My parents and relatives would sometimes call him ‘dumb’ because he found it difficult to speak up in social gatherings. But when it was just us at home, he would do exceptionally well, he thrived in smaller, familiar environments,” Tshering said.
“Looking back, now I believe my brother may have been differently abled, possibly facing a condition that went unrecognized. I am certain that if we had sought help, he could have been diagnosed with something. Unfortunately, at the time, we didn’t understand his struggles,” he added.
He said that this is something that is still prevalent in our community.
The report states that the mental and physical health outcomes associated with social exclusion have significant economic implications. Higher levels of stress among marginalized groups can lead to poorer health conditions, resulting in increased healthcare costs and reduced productivity. For example, studies show that transgender individuals face heightened stress due to societal exclusion, affecting their overall well-being and economic participation.
To mitigate these costs, two key policy approaches emerge: prevention and inclusion. Effective interventions must focus on both preventing disabilities and fostering an inclusive environment for those who are already affected.
Maternal healthcare and nutrition are critical in preventing disabilities. International conventions like the Convention on the Rights of Persons with Disabilities (CRPD) and Sustainable Development Goal 3 underscore that improving maternal health can significantly reduce congenital disabilities. Comprehensive maternal and child health interventions should ensure mothers receive essential nutrients for healthy child development.
The report states, building an inclusive society requires investing in accessibility and accommodating diverse needs. Contrary to the belief that inclusion is costly, many successful examples demonstrate that it can be achieved cost-effectively. For instance, the World Bank reports that making schools accessible adds only about 1 percent to construction costs, benefiting all students and staff.
Research indicates that inclusive education can yield significant economic returns. In Nepal, studies show that the economic returns on education are higher for children with disabilities than for their non-disabled peers. This emphasizes the need for schools to adapt to diverse learning needs, creating environments conducive to the success of all students.
Professor Badgett also emphasizes the connection between legal frameworks, social acceptance, and economic growth. Countries that adopt inclusive policies witness higher levels of wealth and economic development.
