Poverty, Socialexclusionandcivilsociety

International Institute for Labour Studies
United Nations Development Programme
Social exclusion
and anti-poverty policy:
A debate N
Edited by Charles Gore

and Jos B. Figueiredo
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44846
Research Series 110

Research Series
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Copyright International Labour Organization

(International Institute for Labour Studies) 1997
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First published 1997
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Social Exclusion and Development Policy
Series
The concept of social exclusion is now extensively used in policy debates

in Western Europe to describe emerging patterns of social disadvantage, par-
ticularly associated with long-term unemployment. It is a complex notion which
can be used to denote, on the one hand, a situation or process experienced by
individuals, namely their marginalization from society through economic dep-
rivation and social isolation; and on the other hand, a situation or process which
occurs in societies, namely the fragmentation of social relations, the emer-
gence of new dualisms, and the breakdown of social cohesion.
The concept focuses attention on process, agency, and the multi-
'dimensionality of disadvantage. It provides a framework for analysing the re-
lationships between livelihood, well-being and rights. And it offers a way of
considering how the social institution of citizenship is changing as various
social contracts - the welfare state with a commitment to full employment in
the North, and various forms of developmentalist state in the South - break
down.
This volume is part of the IlLS Research Series on social exclusion and
development policy. The Series explores the relevance and value of the notion of
social exclusion in a global context, including in: newly industrializing coun-
tries; least developed countries; and socialist countries in transition. Most mono-
graphs in the series are based on primary research carried out by local multi-
disciplinary teams which examined the analytical and policy advantages of view-
ing poverty, inequality and lack of employment from a social exclusion perspec-
tive. This work sought to fashion approaches to social exclusion which were not
Eurocentric. It was embedded in a common general framework which gave maxi-
mum discretion and scope for new approaches and insights rather than standard-
ized research questions and methodologies for comparative analysis.
These monographs are the product of the IILS/UNDP project on "Patterns
and causes of social exclusion and the design of policies to promote integration".
VI SOCIAL EXCLUSION AND ANTI-POVERTY POL!CY. A DEBATE
The project was initially directed by Gerry Rodgers, and then by Jos B.
Figueiredo and Charles Gore. Opinions expressed in the monographs are not
necessarily endorsed by IlLS, ILO, or UNDP.
Jos B. Figueiredo and Charles Gore

Series Editors
Acknowledgements
This volume is based on the ILO's International Institute for Labour Studies
"Policy Forum on Social Exclusion", which took place in the ECOSOC Cham-
ber of the UN headquarters in New York, from 22 to 24 May 1996. This meet-
ing was organized by Charles Gore and Jos B. Figueiredo from the ilLS, as
part of the project funded by the UNDP and the ilLS on "Patterns and causes
of social exclusion and the design of policies to promote integration".
The organizers are grateful to their colleagues in the IlLS, and in particu-
lar to those who provided secretarial and organizational support and who were
responsible for the editing of this volume. They would also like to express
their gratitude to their colleagues from the UN and the UNDP in New York,
and in particular to those of the ILO Office, for their help and most encourag-
ing remarks. Useful comments on the summary of the debates (Part Two of
this report) were provided by A. Bruto da Costa, L. Emmerij, A. Figueroa,
R. Van der Hoeven, G. Rodgers, H. Silver, P. Streeten and G. White.
Finally, the organizers would like to thank again all participants in the Fo-
rum for their most valuable contributions, all of which have ensured the quality
of the debates and have largely justified the publication of the present report.
Social Exclusion and Development Policy Series v
Acknowledgements vii
Introduction 1
Part One: Resources for debate 5
Issues note for the Policy Forum on Social Exclusion 7

A summary of empirical findings 16
Part Two: The debate 35

The conceptual debate 37
Implications of a social exclusion perspective for
the design of anti-poverty strategy 47
Part Three: Selected presentations 57

General perspectives 59
Social exclusion and the new poor: Trends and
policy initiatives in Western Europe
by Aifredo Bruto da Costa, Portuguese Catholic
University (Lisbon) 59
The contradictory concepts of social exclusion and
social inclusion
by Else Oyen, University of Bergen 63
Some reflections on social exclusion
by Paul Streeten 66
x SOCIAL EXCLUSION AND ANTI -P0 VERIY poLicy: A DEEATE
Institutional issues 73
Labour market exclusions and the roles of social actors
by Gerry Rodgers, ILO, Santiago 73
Poverty, exclusion and citizenship rights
by Hilary Silver, Brown University, Providence 78
Civil society, social exclusion and poverty alleviation
by Gordon White, IDS, University of Sussex 82
Social actors' perspectives 92

Globalization and the new social question
by L. Bmmerij, IADB, Washington 92
Poverty, social exclusion and civil society
by Luis A. Anderson, ICFTU-ORIT, Caracas 99
Social exclusion, democracy and modernization
by Amit Mitra, Federation of Indian Chambers of
Commerce, New Delhi 101
Policy implications of a social exclusion approach:
An overview
by A. Grinspun, UNDP, New York 104
The social exclusion approach: Some policy
implications and priorities
by Vilmar E. Faria, Special Advisor to the President, Brazil 107
Annex I Agenda and list of participants 113
Annex II Meetings and publications 128

Introduction
The term "social exclusion" is increasingly being used in policy debates, and
particularly so in those about the social consequences of economic change and
globalization. It is a powerful notion because it contains moral force, because it
identifies and associates particularly disadvantaged population groups with par-
ticular institutions, and because it shows that lack of income or wealth is not the
only reason for which people can be marginalized. Towards the end of 1993, the
IJLS started an interregional project, co-financed by the UNDP, on 'Patterns and
causes of social exclusion and the design of policies to promote social integra-
tion".' The objective of the project was "to improve the basis of action at local,
national, and international levels, aimed at eradication of poverty and the promo-
tion of social integration". It aimed at informing the "World Summit for Social
Development", as well as other national and international bodies concerned with
social development, on the relevance of this concept for the design of anti-poverty
strategy outside the European context, where it was created, and used, almost ex-
clusively. The work was aimed to "deconstruct" the usage of the term social exclu-
sion in European policy debates and to fashion a notion of social exclusion which
is not Eurocentric but relevant globally, in a wide variety of country-settings; to
review the existing relevant literatures in developing countries, reinterpreting find-
ings in terms ofsocial exclusion and assessing its potential value-added. In the final
stage of this project, a "Policy Forum on Social Exclusion" was organized to present
and discuss results and asses policy and research implications. The ultimate objec-
tive of the meeting was to clarify the interrelationships between poverty and social
exclusion and to assess the potential usefulness of this latter approach for anti-
poverty strategies. The present publication is a report on this meeting. During two
'The execution of the HLSIUNDP social exclusion project has involved multidisciplinary
research teams in over 10 countries from different regions of the world, and has entailed work in
different domains. Conceptually, the challenge was to construct the original term and propose a
definition which could accommodate a variety of societal situations while being at the same
time sufficiently precise so as to enable its operationalization and use in empirical research. The
core activity of the project was the analysis of exclusion, on its relationship to poverty in general
and its comparative advantage and complementary features to existing approaches to anti-poverty
strategies in particular, and finally, in support of social exclusion as a global concept.
4 SOCIAL EXCLUSION AND ANTI-PD VERfl' poicv: A DEBATE
and a half days, over 50 participants,2 including not only analysts but also
decision makers, at the national and international level, debated these issues.
The agenda and structure of the meeting reflected the concern of exploring
the policy implications of the empirical findings of the country studies. The format
of the meeting was defined so as to give priority to interventions from the floor and
to panel discussions, keeping presentations very short.
The initial sessions were to inform on the definition of the concept adopted in
the project, with reference to its origin and the way it was applied in France, the
European Union and the USA. Specialists on each of these models of society were
invited to express their understanding of social exclusion. The second aim, was to
show how the concept was used in developing countries and countries in transi-
tion. The empirical and reference material for the debates were six published coun-
try studies on India, Peru, Russia, Tanzania, Thailand and Republic of Yemen (see
list of publications). These studies were presented at the Forum by representatives
of the different local teams involved in the ilLS project on social exclusion. As
these were exploratory studies - in the sense that they were the first to address
poverty in non-industrialized settings from a social exclusion perspective - their
purpose was not to be comparative but rather to constitute a sample of the various
ways in which this concept could be applied in such settings. Thirdly, it was in-
tended to contrast the meanings and complementarities of the poverty and social
exclusion approaches by focusing on the social institutions and agents involved in
processes of impoverishment, either positively or negatively. This was organized
around a series of topical sessions on market institutions, rights and civil society.
The fourth challenge was to derive the social policy implications of the social
exclusion approach, notably for anti-poverty strategies, including the effects of
globalization. These debates were introduced by a panel discussion by groups of
practitioners and social scientists. In a closing session, the opportunity was given
for a summing up and for conclusive observations to be made.This report presents
in a first part key information made available to participants in the meeting.3 The
second part includes a report on the debates and, the last and third part, a selection
of presentations in various sessions.4
The selected presentations are short think pieces. The list of participants, the
agenda and a list of meetings and publications from the social exclusion project
are presented in the annexes.
2
It is worth mentioning that the Foruni was held in New York and in parallel with the 1996
Session of the Commission for Social Development. This gave opportunities of exchange and
dissemination of the work of the Institute within the UN in general, and the UNDP in particular.
This includes an Issues note prepared by C. Gore and J. B. Figueiredo of the IlLS, and the
country case studies which were distributed as research monographs in the Forum and presented
by: M. Hashem (Yemen), A. Figueroa (Peru), M. Majumdar (India), P. Phongpaichit (Thailand),
N. Tchernina (Russia) and A. Tibaijuka (Tanzania).
contributions are presented of the following participants: L. Anderson, A. Bruto da Costa,
L. Emmerij, V. Faria, A. Grinspun, A. Mitra, E. Oyen, 0. Rodgers, H. Silver, P. Streeten and G. White.
Resources for debate
issues note for the Policy Forum on Social

Exclusion
Introduction
Since 1993, the ilLS, supported by the UNDP, has directed a research
project on "Patterns and Causes of Social Exclusion and the Design of Policies
to Promote Social Integration". The development objective of the project was
"to improve the basis of action at local, national, and international levels, aimed
at eradication of poverty and the promotion of social integration". This note
seeks to provide a basis for discussing:
How can the notion of social exclusion be introduced into the debate about
anti-poverty strategy in developing countries and countries in transition?
What analytical, policy and operational benefits arise from introducing

the notion of social exclusion into the formulation and implementation of
anti-poverty strategy?
One possible route to assessing the potential of the notion of social exclu-
sion is to examine the transferability of new policy initiatives and suggestions
which are being applied in Western Europe. In that region, this notion has
become central in policy debates about the social effects of economic transfor-
mation; the redesign (dismantling) of the welfare state, with a shift from pas-
sive welfare transfers to incentive measures to get people into work; and ways
of formulating a more socially inclusive growth model while sustaining inter-
national competitiveness. A second route is to work out policy implications in
developing countries and countries in transition on the basis of (i) "deconstructing"
'This note was designed to provide a framework for the discussions in the Forum. It was
prepared and sent to participants in advance of the meeting.
8 SOCIAL EXCLUSION AND ANTI-POVERTY POLICY: A DEBATE
the meaning and usages of the term social exclusion in industrial and post-
industrial societies and linking it with earlier debates in developing countries
about marginality and marginalization; and (ii) conducting innovative empiri-
cal work in developing countries and countries in transition which explores
how the notion can be applied analytically in those settings. The project adopted
the latter route, and its findings represent a preliminary exploration of how
social exclusion can be applied in a range of country settings, globally.
On concepts of social exclusion
A first analytical issue which arises is: Does the notion of social exclusion
have a domain of application which is limited to particular types of societies
(industrialized, post-industrial, ex-welfare states)?
The empirical research suggests that it does not. Social exclusion occurs
within all societies, but has different meanings and manifests itself in different
forms. The studies proposed a variety of working definitions which are "ap-
propriate in particular country situations". These various definitions have, how-
ever, a number of common ingredients and working hypotheses:
Social exclusion is a negative state or process; in both cases, this entails

going beyond resource allocation mechanisms, and including power rela-
tions, agency, culture and social identity;
It can also be regarded as a subjective or objective feature of people's

lives, as expressed for instance as a sense of inferiority or as being mate-
rially deprived, respectively;
Social exclusion can be regarded as a description of individual disadvan-

tage, and is manifest in both the low levels of welfare (economic disad-
vantage) and in the inability to participate effectively in social life through
work, access to rights, to legal claims, etc. (socio-political disadvantage);
It can also be regarded as an attribute of societies, and is manifest in

recurrent patterns of social relationships in which individuals and groups
are denied access to the goods, services, activities and resources which
are generally associated with citizenship.
A precise definition of social exclusion depends on the paradigms of so-

cial integration and citizenship and the cultural environment prevailing in a
society. These structure people's sense of belonging and membership and con-
sequently the perception of what is exclusion and inclusion in their society. As
RESOURCES FOR DEBATE 9
a major conceptual input to the project, Silver, deconstructing usages of the

notion of social exclusion in literature on industrialized countries, has pro-
posed three such paradigms. The first is the solidarity paradigm, where the
social order is constructed around a core of shared moral values. It is these
values which tie individuals together. Being socially excluded means not hav-
ing such ties, a rupture of the social bond between the individual and society.
In the specialization paradigm, societies are seen as composed of individuals
who are bearers of rights and obligations, and who have diverse interests and
capabilities. Social integration is based on freely-chosen relationships between
individuals rather than a relationship between the individual and society, and
social exclusion reflects voluntary choices and various "distortions" to the sys-
tem - discrimination, market failures and unenforced rights. The third is the
monopoly paradigm where societies are seen as composed of various groups
with conflicting interests. A major concern of these groups is of controlling
and protecting resources from "outsiders". In this context, exclusion results
from a process of social "closure" by which the access to resources is limited
to "elected" communities or entitled groups.
The notion of social exclusion does not permit easy generalizations and
comparisons, but the research does nonetheless provide clues for constructing a
first and impressionist global view of social exclusion. In industrialized coun-
tries, exclusion is very much associated with long-term unemployment, the loss
of rights associated with work and the old welfare state, and the process of break-
down of social ties and disaffiliation. In developing countries and economies in
transition, social exclusion is very much related to the process of labour market
formation; moreover, in such more "fragile" societies, it is not only closely asso-
ciated to social rights, but also to the enforcement of civil and political rights.
There are major gaps between rights formally held and their exercise. Also insti-
tutions of civil society are particularly important in these societies where citizen-
ship rights (and associated responsibilities and expectations) are not well-
entrenched, where social exchanges tend to be unbalanced because of ill-
distribution of bargaining power between social agents, and where personal rather
than non-arbitrary procedures in such exchanges tend to predominate.
Finally, social exclusion can also be used as an organizing framework
which can help agencies concerned with the reduction of poverty to deal with
the heterogeneity of the poor's situations and needs, and the consistency be-
tween sectoral policies. Moreover, for the poor themselves, social exclusion
can represent a useful political category for mobilizing and organizing their
resources in attempts to strengthen their "voice" and collective actions. Poverty
versus Social Exclusion?
The relationship between material poverty and social exclusion is a key
and necessary element for the understanding of social disadvantage. But this
relationship can be defined in various ways. Social exclusion can be:
10 SOCIAL EXCLUSION AND ANTI-POVERTY POLIC v. A DEBATE
A replacement to poverty as a description of personal disadvantage;
An element which has to be taken into account in calculating a poverty

line on the basis of income and consumption;
A particular way of conceptualizing poverty which emphasizes process,

multi-dimensionality, societal standards and the heterogeneity of the poor;
A consequence of material poverty;
A cause of material poverty;
A normative concept which is founded on a different view of social jus-

tice to the utilitarian thinking which underpins much (though not all) think-
ing about poverty.
A central issue in thinking how the notion of social exclusion should be

introduced into anti-poverty strategy is: How is the relationship between pov-
erty and social exclusion best conceptualized?
Referring to the two basic ways in which social exclusion can be seen,
it may be suggested that, as an attribute of individuals, it may be most pro-
ductive to see social exclusion not as a replacement for the term poverty but
rather as a wide and multi-dimensional notion of poverty which considers
material deprivation, employment situation and social relatedness (formal
and informal) as major components of people's disadvantage. Social exclu-
sion in this sense is very similar to Peter Townsend's notion of relative dep-
rivation. But the aim here is not to use income thresholds, where social par-
ticipation becomes severely attenuated, to identify a material poverty line.
Rather, whether an individual is considered excluded or included is distin-
guished through a norm based on a principle of citizenship or the legal or
social status of individuals.
This view of social exclusion may raise the issue of whether a multi-
dimensional societally-specific notion of poverty is as relevant in policy de-
sign as absolute poverty. This is an important issue but discussion must assess
the relativity of absolute poverty. Perhaps the best way to avoid unproductive
debate on this point is to see the concept of social exclusion (as an attribute of
individuals) referring to processes of impoverishment. Its value then is that it
enables causal analysis of various paths into and out of poverty, getting beyond
the unhelpful lumping together of diverse categories of people as "the poor".
Social exclusion as an attribute of societies has a more complex and indi-
rect relationship to poverty. In this case the focus is not on individuals but on
the structural properties of societies. These can be understood as institutions,
which in a broad sense denote the formal or informal "rules" or "elements of
the structural framework" which constrain and enable social interaction. As

such, social exclusion is a lack of social integration (or social cohesion) which
is manifested in rules constraining the access of particular groups of persons to
resources or limiting their access to citizenship rights.
These institutions are important as they constrain and enable various forms
of social participation, and are implicated in processes of income acquisition.
They structure the access to various assets associated with livelihood, and thus
they affect income distribution. Social exclusion may therefore be an obstacle to
egalitarian growth. One interesting question which then arises is: Could the con-
cept of social exclusion illuminate the growth-poverty relationship? A further
important hypothesis is whether the globalization of economic relations is pro-
moting institutional change at the national level and increasing national frag-
mentation and segmentation, leading to institutional configurations which are
engendering more social exclusion, income inequality and poverty.
On causes of social exclusion
The research does not primarily lead to statements concerning the num-
bers and attributes of the socially excluded but rather focuses on the economic,
social and cultural processes and institutions which are identified as the causes
of social disadvantage and inequality. Various causes of social exclusion can
be derived from the country case studies and an important issue is to assess the
commonalities between countries and regional variations. A tentative list of
commonalities would include the following:
Within countries, social exclusion is the result of policies and institu-

tions, and cannot simply be attributed to individual choices; the attributes
of individuals are regarded as being socially constructed; at the individual
level social exclusion is involuntary;
The institutions which act to include and exclude are both formal and
informal;
Such institutions encompass the working of the basic markets, the scope
and configuration of citizenship rights, and the patterns of associational
life of civil society;
Such institutions structure the relationship between the pattern of economic

growth, and the changing life-circumstances of individuals, households and
groups; adopting a social exclusion approach implies analysing this macro-
micro relationship and proposing meso-level and institution-centred policies;
12 SOCIAL EXCLUSION AND ANTI-POVERTY poLiCy: A DEBATE
(v) Social exclusion within countries cannot be explained without reference to

international relationships, as these relationships have important effects on
domestic economic, social and political institutions and developments.
Social exclusion and the new poverty agenda
A major area of consensus in the new poverty agenda of international

development agencies of the 1 990s is that the most effective way to reduce
poverty in countries where a significant proportion of the population are poor
is through development policies rather than simply through isolated projects
targeted at the poor. However, there is much less agreement about how this
should be operationalized. Policy design has been hampered because insuffi-
cient attention has been given to causal analysis and processes of impoverish-
ment, and to implications of globalization for the design and efficacy of pov-
erty reduction policies. Moreover a major task is to work out how social and
economic concerns can be integrated in overall development policy-making. A
key issue is whether and how the notion of social exclusion can be introduced
to address this challenge.
Because the notion of social exclusion can lead to both a specific under-
standing of what poverty is (which includes welfare and agency aspects) and a
specific understanding of how processes of impoverishment occur, it may offer
an alternative policy paradigm to existing approaches to poverty reduction through
overall development policy. Social exclusion can be seen as an alternative policy
paradigm by identifying three different approaches to poverty reduction, basi-
cally in terms of their conception of poverty and its proximate determinants.
The goals of the three approaches are based on different ways of seeing
the justice (injustice) of social and economic arrangements. The focus of atten-
tion in defining social justice in a "goods-centred" view is command over com-
modities which is seen as a source of welfare (utility). The basic goal of
policy is to increase the supply of goods and services, and to increase and
secure personal and household incomes, and human beings are seen as hu-
man capital for the production process. The "people-centred" approach has
been elaborated in particular through Amartya Sen's critique of the evaluational
foundations of the goods-centred approach. It is founded on the view that what
matters is the nature of the lives which people lead, and in particular their
freedom of choice in terms of achieving valued "functionings" (such as being
well-nourished, healthy, literate). Finally, in an "institution-centred" view, what
matters are institutional arrangements, the rules which provide the enabling
framework within which individuals and groups make choices and go about
their daily business of making a living. The institution-centred approach does
not seek to engineer outcome "patterns" in the same way as the "people-
REsouRcEs FOR DEBATE 13
centred" approach. But an important feature of the social exclusion approach (in
contrast to a libertarian approach to rights and institutions) is that it does
not simply see institutions as intrinsically valuable. It is also sensitive to con-
sequences of institutions for poverty outcomes.
The policy instruments of the different strategies are similar but are con-
certed in different ways.The country case studies suggest that a central analyti-
cal issue is the way in which institutions constrain and enable inclusion and
exclusion in various dimensions of economic and social life. What is of con-
cern is the way they limit the field of action of persons; how they are thereby
implicated in processes of absolute and relative impoverishment in conditions
of growth, decline and economic transformation; and how, embedded within
macro-policies, this can lead over time, through path-dependency, to irrevers-
ible patterns of disadvantage for certain types of people. Thus, a central issue
in the institution-centred approach based on a social exclusion perspective is
the design of (meso-) policies to promote institutional change.
Major policy issues
It is debatable whether it is desirable (analytically and operationally) to de-

velop the notion of social exclusion as an alternative policy paradigm and a distinct
approach. But perhaps too much time should not be spent on this. For whether or
not it is seen as a distinct approach to the design of anti-poverty policy, it is possible
to "unpack" the various elements of an institution-centred approach to poverty
reduction and thus isolate some key policy issues which arise from the introduc-
tion of social exclusion into questions of anti-poverty policy design.
The focus on meso-policies
The central issue of policy design is how to change institutions so that

social participation permits a level of well-being (welfare and agency) which
is above a minimum standard as defined by members of society. This raises a
number of issues concerning the design of meso-policies. Such policies may
be defined as policies which seek to influence the relationship between macro-
policies and individual outcomes Their importance rests on the fact that the out-
comes of macro-policies and the pattern of growth depends on the social matrix
within which policies are introduced and growth occurs. Also, though less is known
on this, they are implicated in the behaviour of macro-economic variables.
At present within development policy analysis, questions of the design of
meso-policies focus on issues of the structure of social sector expenditures. In
an institution-centred approach founded on a social exclusion perspective, it is
14 Soc/AL EXCLUSION AND ANTI-POVERTY POLICY: A DEBATE
necessary to extend the scope of meso-policy analysis to production sectors and

informal institutions. Industrial organization (for example, relations between
small-scale and large scale enterprises, wage-setting institutions) and agrarian
institutions (such as linked credit and product market contracts, property rights
systems) are important elements of a meso-policy.
General policy issues are:
Which institutions should be the targets of policy?
What are the pressure-points through which policy can induce desirable
and predictable institutional change?
More specific issues are:
(i) Are there efficiency-equity trade-offs or synergies? Policy towards inter-

ventions should not be based on the assumption that if an institution ex-
ists it must be efficient. The fact that existing institutions may not be the
most efficient opens important opportunities for achieving equity and ef-
ficiency objectives together through institutional change.
How does one avoid the "irony of equity"? This phrase is due to Schaffer
who defines the "irony of equity" as follows: "Public action may be intended
to correct an 'inequity' athving from the operation of institutions and rules
(e.g. markets, agencies, laws, household structures). It does so characteristi-
cally and unavoidably, however, by setting up fresh institutions and new bod-
ies of rules which have their own ironic outcomes of exclusion and inequity."
What is the relationship between institutional change and globalization?

Can policies towards institutions provide a way of ensuring that potential
aggregate benefits of increasing economic interdependence are not asso-
ciated with adverse social consequences?
What are the interrelationships between institutions and how can these
interrelationships be managed operationally? Do interactions mean that it
is necessary to "sectoralize" policies towards institutions?
How to promote institutional change
The empirical studies suggest that the main areas for the design of meso-
policies are: (i) market institutions; (ii) citizenship rights; and (iii) voluntary
associations and civic values. Specific issues arise regarding the formulation
and implementation of policies to promote institutional change in each of these
policy areas.
With regard to market institutions, a particular focus of attention is the
structure of basic markets. These may be defined as those markets which de-
termine the generation of incomes and the reduction of risks. The principal
ones are: labour, credit, land, insurance, but arguably housing and food mar-
kets should also be included. A key policy question is: What are the main policy
instruments for effecting change in market institutions. Possibilities are: in-
centives; information; changes in asset distribution so that particular agents
have countervailing power; technology.
With regard to citizenship rights, the central analytical issue is the ways in
which the absence of certain rights (and associated responsibilities) undemiines
social and occupational participation, and leads to levels of well-being below
societally acceptable standards. A key issue is how much can be secured through
the law. Also it is important to see whether some kinds of affirmative action pro-
granimes are necessary for specially disadvantaged groups. In general, a central
question is: What is entailed by a rights-based approach to poverty reduction?
With regard to civil society, key issues are: What are the goals of policy?
and, How may they be achieved? Should the goal be simply to promote a thick-
ening social web of voluntary organizations at the local level (increasing social
capital)? Or rather should it be to forge mechanisms of dialogue and social
concertation centred on pivotal relationships which affect well-being? It may
be, for example, that the notion of social exclusion suggests new roles for
traditional tripartite actors - firms and trade unions. East Asian experience
may suggest that the firm is a particularly important institution for developing
an inclusive society in processes of transformation.
With regard to policy means, it may be that policy design in fostering
voluntary associations is particularly sensitive and may be founded on a para-
dox, namely the independence of civil society from the state. Key policy in-
struments might be: networking and information, the provision of expertise
and education. Key operational issues might be: What is the role of lending in
supporting local institutions? Should support be demand-driven? Is this itself
likely to be exclusionary?
Relationships to macro-policy
Meso-policies are important as they interrelate macro-economic poli-

cies with individual outcomes. But the studies suggest that the exclusionary
outcomes of institutions are affected by the overall pattern and rate of growth.
Institutional configurations themselves may also affect the behaviour of
16 SOCIAL EXCLUSION AND ANTI-POVERTY POLICY. A DEBATE
macro-economic aggregates. This implies that policies against social exclu-

sion should not simply be focused on the meso-level but also include the
design of macro-policies.
A critical difficulty here is that we know little about how different institutions
and institutional configurations affect macro-economic outcomes. Also, how in
practice one integrates institutional perspectives into macro-policy design is hin-
dered by problems of conceptualization. Possible insights are provided by work
which is being done on introducing gender into macro-economic policies. This
work sees unequal gender relations as an intervening variable that structures eco-
nomic processes at macro-, meso- and micro-levels.
One specific policy issue here is whether "full employment" in some guise
should be an important macro-policy goal. The answer may depend on the extent
to which occupational participation is seen as a pivotal fomi of social participation.
In western societies at the present, fractures reflect the conjunction between the
abandonment of "full employment" as a policy goal, and the continuing impor-
tance of having a job to social identity and recognition.
Dfrect targeted projects and safety nets
The focus on institutions as a means of integrating social and economic

concerns in development policy design does not imply that projects directly
targeted at the poor should be abandoned. They can play a supportive role.
This role may be particularly important if institutional change is slow. Projects
targeted at the poor may also be particularly important for those groups suffer-
ing from "hard-core" exclusion, i.e. for whom institutional interactions mutu-
ally undermine participation in economic and social life.
With regard to project design, the social exclusion perspective may imply: a
revisiting of how one identifies target groups; a consideration of multi-dimensionality
of disadvantage; and a re-evaluation of the importance of locality in direct assistance.
Safety nets can also play a role in a social exclusion approach. But the
stigmatizing effects of targeted benefits are recognized The key policy ques-
tion here: What role do safety nets have given a social exclusion perspective?
A summary of empirical findings2

It is apparent from the foregoing that social exclusion is a complex notion
but one which may have great potential for opening new insights (or revisiting
2The six country studies which form the basis for this synthesis are: India, Peru, Russia,
Tanzania, Thailand and Yemen. See the list of publications, in Annex II.
old insights) which can facilitate better development policy design. The em-
pirical research conducted within the framework of the IILS/UNDP project
was intended to be "a catalytic, innovative and experimental initiative". It aimed
to explore the value of a social exclusion perspective in a range of country
settings, including developing countries and countries in transition.
For this purpose, a loose general framework was designed, setting out
broad guidelines but giving wide discretion to national research teams as to
how they applied it. This enabled new initiatives, but a consequence is that
comparative analysis of findings is difficult. The studies suggest new method-
ologies and new perspectives on social development issues, and provide clues
as to how social exclusion is related to poverty in societies at different levels of
development and with different forms of integration into the world economy.
Overall, they provide an empirical touchstone for thinking about how the no-
tion of social exclusion can be introduced into development policy analysis in
general, and debates about the design of anti-poverty strategy in particular.
Concepts of social exclusion
Each of the research teams began by identifying and defining the concept
of social exclusion in a way which was "appropriate in the particular country
situation". This led to a variety of working definitions which can be paraphrased
as follows:
Social exclusion is the inability to participate in aspects of social life con-

sidered important. These are economic, cultural and political. "Hard-core"
social exclusion occurs when there is mutual feedback, rather than offset-
ting, relationships between the inability to participate in these three di-
mensions of social life (Peru).
Social exclusion is the denial of the basic welfare rights which provide
citizens positive freedom to participate in social and economic life and
which thereby render meaningful their fundamental negative freedoms
(India).
Social exclusion is a process through which citizenship rights on which

livelihood and living standards depend are not recognized and respected.
This involves relationships between people, in which rights are challenged
and defended through negotiations and conflict (Thailand).
Social exclusion is both an objective and subjective feature of people's

lives. As an objective condition, it is characterized by material depriva-
tion and infringement of social rights (including rights related to employ-

ment for the employed and the unemployed). As a subjective feeling, it is
characterized by a sense of social inferiority in the community or a loss of
prior social status (Russia).
Social exclusion is both a state and a process. As a state, it is equivalent to

relative deprivation; as a process, it refers to the socially-determined struc-
tures and processes which impede access on the part of some members of
society to economic resources, to social goods, and to institutions which
determine their destinies (Tanzania).
Social exclusion is the opposite of social integration. It is present when

some individuals and groups cannot participate, or are not recognized, as
full and equal members of society, at local community or national level
(Yemen).
These diverse definitions have a number of common ingredients.

Firstly, social exclusion is a state of ill-being and disablement (dis-
empowerment, inability) which individuals and groups experience. As a
description of individual disadvantage, social exclusion encompasses both
the welfare and agency aspects of persons. In terms of the former, social
exclusion is manifest in low levels of welfare, utility and happiness, as
conventionally understood in economic analyses of poverty. In terms of
the latter, social exclusion is manifest in an inability to do certain things, in
particular to find employment and make a livelihood, to achieve certain
minimum standards in working, to make claims through which rights are
realized, and to participate politically.
Secondly, social exclusion is a feature of the structure of societies, and is
manifest in recurrent patterns of social relationships in which individuals and
groups are denied access to the goods, services, activities and resources which
are associated with citizenship. Citizenship is understood as the possession of
rights and also more broadly as membership in society and participation in
economic and social life. Different societies have different common
understandings of the meaning of membership and value of different dimen-
sions of participation, and these different social expectations (which may also
vary within societies) mean that social exclusion is understood differently in
different societies, and is often essentially contested. Finally, social exclusion
can be analysed both as a state and a process. The former offers a way of
describing social exclusion and can for instance be used to define situations of
permanent exclusion. In the latter, the focus is on the mechanisms which create
or recreate exclusion, and on how poverty and deprivation are associated with
structural economic and social change.
Relationships between poverty and social exclusion

The different conceptions of social exclusion in the studies lead to differ-
ent analyses of the relationships between material poverty and social exclu-
sion. In the studies of Russia and Tanzania, material deprivation in consump-
tion and possession is one aspect of social exclusion, which also includes vari-
ous material deprivations in the living and work environment, and also social
deprivations. Social exclusion, in these studies, is equivalent to relative depri-
vation, and can be understood as a broader conception of poverty than material
deprivation. In the study of Thailand, in contrast, social exclusion is explicitly
regarded as something different from poverty. For this reason, the study argues
that it is possible to have a falling incidence of poverty amongst a population
and at the same time recurrent instances of social exclusion. However, the fact
that social exclusion pertains to livelihood and employment security and re-
muneration implies that these distinct phenomena are related.
The other three studies identify other causal relationships between material
poverty and social exclusion. In the study of India, poverty is identified as an im-
portant cause of social exclusion because purchasing power acts as a barrier to the
realization of welfare rights. In the study of Peru, a different direction of causality
is examined - poverty is seen as a consequence of social exclusion. The society is
stratified into three main groups: (i) at the top of the social "pyramid" there is a
small exclusive group of professionals and business people (5 per cent of the popu-
lation); (ii) at the bottom there is the Indian peasantry in the Andes and Amazonia
(20 per cent); and (iii) in between (75 percent of the population) there is a "social
magma", where there is much upward and downward mobility, but not into the
exclusive high class networks at the top and the hard core of exclusion at the bot-
tom. Those at the bottom of this "pyramid" are the poorest in society. Their situa-
tion reflects the fact that, for them, economic, political and cultural exclusions are
reinforcing rather than offsetting. Moreover, those experiencing "hard core" social
exclusion are excluded from wage labour. In this society, the poorest are those who
are not exploited. Finally, in the study of Yemen, it is suggested that there are two-
way causal relationships between poverty and social exclusion. "Poverty and so-
cial exclusion seem to reinforce each other regardless of which occurs first. . . At
some stage poverty and social exclusion may become indistinguishable."
Methodology: Analytical approaches

There were three basic analytical approaches adopted in the studies:
Group-focused - Russia, Tanzania, and Yemen;

Rights-focused - India, Thailand;
Structuralist (institution-focused) - Peru.
Group-focused
This approach begins by selecting specific categories of persons who are

defined a priori as experiencing social exclusion and by describing their living
conditions in the broad sense of relative deprivation. It then seeks firstly to
identify the links between the relative deprivation of groups, the working of
social institutions, and personal attributes/social identity; and, secondly, to re-
late these links to country development paths and strategies. In this way, the
studies sought to show how exclusion (and inclusion) might be embedded in
the interrelationships between the pattern of economic change, the social struc-
ture and the culture of a particular country. Social exclusion is then understood
as an outcome of the rate and pattern of economic growth, the ways in which
key social institutions are exclusionary and inclusionary, and the different op-
portunities for action which different categories of persons (defined for exam-
ple by gender, ethnicity, age) face.
A key issue in this methodology is the selection of groups. In each of the
studies, it is emphasized that the groups selected are not the only excluded
groups. The main aim is not to map and catalogue exhaustively excluded groups
in each country, but to illustrate forms and processes of exclusion.
With this in view, selection in the case of Yemen was based on prelimi-
nary analysis of categories of persons in society "who seemed to be the poorest
groups in society, suffered from lack of access to the labour market, and did
not seem to be in the social mainstream". There was also a concern to ensure
that the groups from both the northern and southern governorates of Yemen
and those groups which exemplified the diversity of processes of exclusion in
a dualistic society were represented. In the case of Russia, groups were chosen
to exemplify two basic models of exclusion. Firstly, the loss of previously
acquired rights or social position (the newly excluded in the process of transi-
tion). Secondly, those who for decades of Soviet history were treated as sec-
ond-class citizens and experienced relative deprivation, and whose situation
has been exacerbated in the transition period (the hitherto excluded). In the
case of Tanzania, occupational status and livelihood was chosen as the basis
for identifying groups and those selected as "marginalized groups" were "all
those subjected to precarious living as a result of inadequate earnings, insecure
jobs, or a complete lack of access to employment or productive resources".
There was also a concern to select groups in both rural and urban areas.
The specific groups selected in the studies were:
Tanzania: (i) Beggars;

(ii) Persons in urban informal sector activities of the last
resort - stone crushers, street food vendors, casual
ResouRces FOR DEBATE 21
construction workers, itinerant Street vendors, fish

dressers;
(iii) Rural persons who lack access to productive resources -
landless, near landless, and those without access to fertilizers.
Russia: (i) Scientific-technical intelligentsia in a state of latent unem-

ployment;
Long-term unemployed;
The majority of the rural population.
Yemen: (i) Akhdam;

Urban day-labourers;
Persons living in remote villages;
Returnee international migrant workers.
Rights-focused
The rights-focused studies, India and Thailand, both examine the factors
determining the realization of rights which affect well-being and livelihood.
But they each adopt different approaches to this issue. The former examines
the problem from above, and adopts a "sectoral" approach which focuses on
particular kinds of rights. The latter examines the problem from below, and
adopts a "local" approach which focuses on conflictual events in which people
who are disadvantaged with respect to their livelihood and living standard,
struggle and negotiate to establish their rights.
The study of India is particularly concerned with the realization of
what Marshall3 called social rights - rights "to a modicum of economic
welfare and security. . . to live the life of a civilized being according to the
standards prevailing in society". The study examines the Indian approach
to securing these rights by comparing achievements with respect to key
social services for which the government has accepted some responsibility
- health, education, social security, and housing. In each case the degree of
exclusion, and its pattern with respect to gender, caste and tribe, location,
occupational status, and location, are considered. The data used are official
figures. A particular feature of the methodology is an attempt to identify
the effects of policy on exclusionary outcomes by comparing inter-state
performances.
The study of Thailand in contrast examines events in which poor people's
rights are threatened and describes how they resisted and challenged this threat
3Marshall T. H. and Bottomore T. 1992. Citizenship and social class. London, Pluto Press.
to their livelihood and living standard. The three events are: (i) a resettlement
programme which sought to move villagers in northeast Thailand in order to
use land for industrial forest plantations: (ii) a "slum" clearance programme
which sought to remove a Muslim community from a district of Bangkok in
order to make way for an urban express-way; and (iii) the retrenchment of
women workers in a textile factory in Bangkok following technological up-
grading. In each of these events, the rights being negotiated are important for
livelihood and employment. Detailed attention is paid to the unfolding nego-
tiations and factors which led to success or failure.
Structura list
The study of Peru is structuralist in the sense that it relates the ability
of certain categories of person to participate in social life to the evolving
nature of: (i) the economic organization of production and exchange; (ii)
the political order which "regulates the exercise of power, lays down stand-
ards and duties, and guarantees rights"; and, (iii) culture, understood as
"codes, values and aspirations by means of which people communicate
among themselves, interpret reality and direct practices, and which are trans-
mitted through primary relationships, education, religion and the various
means of communication". The study is within the Latin American intel-
lectual tradition of structuralist analyses, and can be seen as part of a new
wave which seeks to get beyond earlier theories of dualism, marginality
and structural heterogeneity. But another possible way of labelling the ap-
proach would be institution-focused. It is institution-focused not in the sense
that it concentrates on formal organizations, but rather systems of social
relations (regular patterns of social interaction) through which a fragile
social order is constituted.
An important feature of the methodology of the study of Peru, which
contrasts with the other studies, is that it does not treat social exclusion as
an outcome which the study is seeking to explain, but rather as an analyti-
cal category which is deployed to explain inequality. Inequality is very
marked in Peru and the main questions of the study were: What is the role
of social exclusion in the generation of inequality? and, How important are
social exclusion and social integration as mechanisms of differentiation
and stratification?
These questions are answered by hypothesizing a priori which types of
social exclusion are most important in the processes generating inequality, and
then empirically testing whether they are. This is done separately for economic,
political and cultural dimensions of the social order, but the study also seeks to
show how, over time, these dimensions interact.
ReSOURCES FOR OEBATE 23
Methodology: Indicators of exclusion
All three group-focused studies adopted a similar approach to the meas-

urement of social exclusion. They used survey questionnaires to measure the
extent to which the groups pre-identified as socially excluded actually were
experiencing multiple deprivations.
In designing these surveys, the studies of Russia and Tanzania drew
upon the categories which Peter Townsend used to measure multiple depri-
vation in his study of Greater London in 1985-86, and adapted them to the
different country contexts.4 In the study of Yemen, the survey questionnaire
was more loosely based on Townsend's ideas and information was sought on
deprivation with respect to: basic needs satisfaction (living conditions and
access to social services); employment and livelihood; and social and politi-
cal representation. As in the study of Russia, questions on the groups' per-
ception of their position were also sought in order to see in particular if groups
had chosen to exclude themselves from society.
The two rights-focused studies operationally measured social exclusion
in ways which reflect their respective sectoral and local methodologies, and
their orientation to understanding rights realization from above or from be-
low. The study of India draws on measures which have been extensively
deployed in studies of basic needs satisfaction.5 No minimum threshold is
identified to define exclusion, but rather variations in these measures be-
tween groups defined according to gender, caste/tribe, occupational status,
location and income are described. The study of Thailand does not measure
social exclusion in quantitative terms but rather examines sequences of key
events in popular struggles to realize particular rights on which living stand-
ards and livelihoods are based.
Townsend P. 1993. The InternationalAnalvsis ofPover1. New York, Harvester Wheatsheaf.

The categories listed in Townsend (pp. 70-74) are the following:
Material Deprivation: Dietary deprivation, clothing deprivation, housing deprivation, deprivation
of home facilities, deprivation of environment, deprivation of location,
deprivation of work.
Social Deprivation: Lack of rights of and in employment, deprivation of family activity,
lack of integration into the community, lack of formal participation
in social institutions, recreational deprivation, education deprivation.
The indicators used are: measures of mortality and morbidity; measures of nutritional status
and access to public nutrition support programmes; measures of utilization of health services;
measures of literacy; enrolment rates in basic education; measures of educational provision
(physical and human); availability of formal social security entitlements; nature of housing
structures and neighbourhood environment; and access to water and sanitation.
Finally, the Peruvian study uses a diverse range of indicators of exclusion,

mainly associated with labour and the social sector.6
Causes of social exclusion
The studies provide a variety of explanations of the causes of social ex-

clusion. These explanations have a number of common features, in particular:
Social exclusion within countries is the result of policies and institutions,

and cannot simply be attributed to individual choices.
The institutions which act to include and exclude are both formal and
informal, and encompass the working of: the basic markets which deter-
mine incomes and their security; the scope and configuration of citizen-
ship rights; and the patterns of associational life, including discrimina-
tory practices, of civil society. As a corollary, social exclusion is caused
by both markets and states.
Institutions are important in processes of social exclusion as they struc-

ture the relationship between macro-economic change and the pattern
of economic growth on the one hand, and the changing life-circum-
stances of individuals, households and groups on the other. Under-
standing social exclusion involves analysing this macro-micro rela-
tionship.
Social exclusion within countries cannot be explained without reference

to international relationships, as these relationships have important ef-
fects on domestic economic, social and political institutions.
Not individual choices
All the studies see social exclusion as something bad. Whilst they recog-
nize the importance of individual attributes in social exclusion, they analyse
these attributes as being socially-constructed and reject the notion that social
exclusion can be explained as an outcome of individual choices.
Specific measures are: proportion of the labour force in wage employment; proportion of
the labour force unemployed; concentration of formal credit allocation; measures of school
attendance; formal entitlement to social security; right to unionization; percentage of the
population with ownership titles; and illiteracy rates.
The study of India is eloquent on this issue with respect to the withdrawal
of children from basic education. As it puts it: "When people (of certain com-
munity, caste or income group) are at the margin of human existence, what is at
risk is not the quality of life, but life itself; and in that situation it is grossly
inadequate to attach a great deal of explanatory importance to their so-called
"lack of demand". Instead, we need to probe into the social mechanisms that
deform their desires. We need to understand why a child is doomed to a miser-
able educational status merely because she happens to be born in the wrong
caste or in the wrong class or to be of the wrong sex."
The study of Tanzania, in a similar vein, writes: "Only when we view
poverty and inequality in the context of larger socio-economic relations are we
able to grasp the role of agency in their causation and persistence, the nature of
the consciousness which they engender on the part of the socially disadvan-
taged and the possible remedies we might prescribe".
States and markets and civil society
Whilst the studies share the view that social exclusion is involuntary, they
together suggest that both states and markets are implicated in processes of
social exclusion, and that the associations of civil society work, in interaction
with these institutions, to attenuate or exacerbate the problem.
This is stated most clearly in the study of Peru. It argues that social exclu-
sion is built into the workings of a capitalist democracy which is over-popu-
lated and composed of multi-cultural and multi-ethnic groups. Social exclu-
sion is found in economic, political and cultural processes, and there are spe-
cific reasons for this in each case.
Exclusions from market exchange occur in the "basic markets" which deter-
mine the generation of incomes and reduction of risks - labour, credit and
insurance markets. The reason is that they are non-Wairasian and as such they
do not clear through price adjustment, and thus quantitative rationing, based
on screening devices and selection procedures, occurs. Some of the people
who are capable and willing to participate in market exchange are excluded or
relegated to segments which are less profitable or more risky. For credit mar-
kets this is due to adverse selection and perverse incentive effects. For labour
markets, it is due to payment of higher wages in order to secure a supply of
trustworthy workers and create an excess supply which operates as a discipline
device. For insurance markets, it is due to the existence of unmeasurable risks.
Exclusions from universal rights and political processes are derived from
a number of countervailing tendencies. Firstly, the need to legitimate their
26 SOCIAL EXCLUSION ANO ANTI-POVERTY POLICY. A DESArE
authority encourages elites to share certain powers and recognize certain

rights, but this tendency is moderated by the development of populist and
clientelist politics which include certain groups and social segments. Sec-
ondly, to the extent that democratic institutions are operating, citizenship
rights are nourished and the two basic principles which they promote -
personal autonomy and freedom on the one hand, and equality and social
justice on the other hand - are reconciled. Thirdly, there is a gap between
the formal and genuine enforcement of rights which arise because of dis-
crimination, the precarious legitimacy and instability of political institu-
tions, legal insecurity, and the fiscal inability of the state to deliver. Some
of these are rooted in extreme social inequality.
(iii) Cultural exclusions arise in the sense that certain individuals can or can-
not participate in social networks, which are like clubs. There is a hierar-
chy of these networks, and ruling classes set restrictive conditions for
membership of high-class networks in order to preserve privileges.
The studies of India and Yemen both identify factors which facilitate and
constrain the ability of the state in low income countries to deliver, to all citizens,
basic rights to education, health and social security. The mechanisms of exclu-
sion are similar. Slow growth (or stagnation) limits the amount of financial re-
sources available for social expenditures, whilst at the household level low in-
comes limit the ability of the poor to pay for services. Administrative inefficien-
cies, weak organizational and planning priorities, a wrongly focused structure of
expenditure, and lack of accountability all compound the problem of lack of
resources. But the critical factor which prevents realization of these rights, which
the governments recognize as desirable, is the working of the political system.
Exclusionary outcomes reflect two contradictory dynamics in the demo-
cratic experience in India. On the one hand, ruling parties "have increasingly
displayed an enduring perception that it is politically ruinous to neglect the
problem of poverty and unemployment among the numerically large popula-
tion groups which are increasingly aware of their political rights"; and on the
other hand, "short-run pork-barrel politics has fuelled an extensive network of
patronage and inter-elite struggle over the share of the national economic pie,
at the expense of the welfare claims of the majority".
In Yemen, the situation is worse. Newly formed political parties "are
strongly influenced by the traditional social order and networks of power" and
the poor and disadvantaged are "unaware of how to organize or to utilize po-
litical parties to represent their needs and demands". In the northern and east-
ern governorates, where traditional social institutions - especially powerful
tribes - are particularly strong, those outside these institutions "face monu-
mental barriers in attaining their social rights since strong social networks are
REsouRcEs FOR DEBATE 27
needed at all levels to process demands"; and in the southern and urban re-
gions, where tribal links are weaker, "access to representation is based on net-
working among socio-economic equals" and thus "as individuals and groups
descend on the socio-economic scale so do their privileges and citizen's rights".
The study of Russia introduces a wide variety of formal organizations
which act as mechanisms of inclusion and exclusion. These include: trade
unions, courts, Peasant Farm Associations, Employment Centres and the
about-to-be privatized state enterprises, and new small finns which have been
created since the start of the reform process. These, together with the survival
strategies of people facing declining living standards and an erosion of ex-
pectations, are important in shaping the emerging labour market.
Finally, the studies of Thailand, Yemen, Peru and India, provide evidence
on how associational life and pervasive values in civil society intertwine with
the working of markets and states to reinforce or counteract social exclusion.
All studies present evidence of pervasive value-systems in which persons of
particular categories are integrated in society as inferiors owing to social cat-
egorization. In Thailand, such politico-cultural predispositions are held towards
women, non-Thai, and non-Bangkok persons. In Yemen and India, there are
caste identities. In Peru, indigenous peoples are identified as inferior. But
associational groups can, as both the studies of Thailand and India show, act to
support the realization of rights.
Macro-micro relationships
A central contribution of a social exclusion perspective is not simply to

examine institutions as mechanisms of exclusion and inclusion, but also to
show how institutions structure the relationship between macro-economic
change and the pattern of economic growth (or decline) on the one hand, and
the changing fortunes of individuals, households and groups on the other. This
is a critical issue in studies of social exclusion, and together with an analysis of
how different exclusion mechanism interact to create, over time, multiple dis-
advantages for particular categories of person, is a major contribution which a
social exclusion perspective can make.
The studies identify a range of macro-processes in which social exclusion
is embedded. These include: industrialization; modernization; transition from a
socialist to a market economy; and a historical path of change, which involves
urbanization, industrialization and ever closer integration into the world economy.
In the study of Russia, the central process of change is the transition to a
market economy. The economic reform process, entailing the exposure of tech-
nologically inefficient state industries to international competition, and the po-
litical uncertainty, have resulted in a collapse of production, and a significant
28 SOCIAL EXCLUSION AND ANTI-PD VEFITY POLICY: A DEBATE
proportion of the working population is now surplus to requirements. In this

situation unemployment is increasing, but more significantly, there is latent un-
employment as state enterprises, awaiting privatization, hold on to their employ-
ees. A large proportion of the Russian population have fallen into poverty, and
social exclusion - defined as multiple deprivation of material living conditions
and social rights - is apparent amongst the unemployed and latent unemployed.
In rural areas, conditions are even worse: People in villages have few economic
opportunities and they must survive through heavy manual labour. But they
usually dare not move because their housing is tied to membership of a Peasant
Farmers Association.
This study also argues that the critical institution which interrelates the
process of macro-economic change to individual and household outcomes is
the labour market. The economic transition requires the creation of a labour
market and the abandonment of the old socialist employment guarantees. The
way in which the labour market is forming reflects the situation of surplus
labour and mass poverty. The main characteristics of the new employment
model are: (i) alongside the employed population there are the unemployed;
(ii) the number of persons employed in the state sector is diminishing; (iii)
employment in the non-state sector is more precarious, than in the state sector;
and (iv) employment in the non-state sector has become polarized between
core and periphery. The "nutritive medium", as the study puts it, for the
dualization of the labour market is the exclusion which people are experienc-
ing when they become open or latent unemployed. In particular, the exclusion
in the internal labour market in the state sector (delayed pay, no real work) is
leading people to adopt informal work of various kinds. Thus the study dialec-
tically interrelates the process of labour market formation to the objective con-
dition and subjective sense of exclusion at the individual level.
Various formal organizations could act to cushion the effects of the eco-
nomic collapse and the social and cultural shocks of transition on individuals
and alter this process. But there has been a disorderly transfer of the costs of
the social reproduction of the labour force from the state to the family. Old
state institutions have collapsed and become ineffective, but new institutions
of social protection and security are still being created. There is thus a vacuum
of formal institutions. Key organizations which might be inclusionary - trade
unions, employment centres, peasant associations - do not work in that way.
In the study of Yemen, social exclusion is also understood in relation to
processes of change, but in this case what is regarded as important is the
transformation of a traditional society to a modern state with a market
economy. During this transformation, a dual society has formed. On the one
hand, close personal relationships based on traditional norms and values oc-
cur at the level of the family, tribe or communal group. On the other hand, an
attempt is being made to modernize from above, including the adoption of
social integration as a national goal, which is pursued through the adoption

of policies at the national level.
Social exclusion is dualistic in nature in such a society. On the one hand,
traditional ascriptive values define certain persons as being outside the social
order. The project of modernization is seeking to displace traditional
compartmentalized patterns of social membership with the notion of citizen-
ship in a national community. But sufficient jobs are not being created and thus
there is a very high rate of unemployment and a low labour force participation
rate. Key social services and infrastructure for the satisfaction of basic needs
(education and training, health services, public roads, water and sanitation,
and other basic services) are not equally accessible to all citizens. Moreover,
official political representation is weak.
The three basic "dimensions of exclusion" - basic needs, labour markets,
and political representation - are not mutually exclusive, but interact, making
the life circumstances of certain types of person particularly difficult. The at-
tributes of persons (categoric identities) which are identified as being impor-
tant in Yemen are: status in the traditional social order; geographical location;
and migratory status.
In the study of Thailand, the critical process of change is the transforma-
tion of the economy from an agricultural to an industrial economy. Rapid growth
and industrialization has produced conflicts over rights. Areas of land, desig-
nated by the government as "forest reserves", are a major source of conflict
between business interests and peasants. The former seek to establish eucalyp-
tus plantations to supply the growing pulp industry, whilst the latter - some of
whom were earlier encouraged to settle in the forest and many of whom were
living in the forest areas before they were officially designated as such - seek
to retain access to the natural resources on which their livelihoods are based. In
urban centres, particularly Bangkok, rapid urban growth and land develop-
ment is similarly setting up tensions over land use, and long-established com-
munities living in areas which are designated as "slums" are threatened with
eviction, dispersal and loss of livelihood. Finally, sustaining the process of
rapid industrialization requires technological upgrading. The process of tech-
nological change is particularly apparent in the textiles sector which is an im-
portant basis of export-oriented, labour intensive industrialization, and is
conflictual as the drive to improve efficiency and remain competitive threatens
workers' jobs. What is clear also is that the rights of workers in the supposed
"formal" sector, though apparently better on paper than the informal sector, are
not necessarily realized in practice. As in the study of Russia, it is possible to
have exclusion on internal labour markets.
The three rights conflicts which are analysed are rooted in competition for the
control and utilization of natural and human resources in the process of industriali-
zation. They illustrate how conflicts over rights are embedded in a particular devel-
opment strategy and growth pattern which have made rural areas into a source of
labour and natural resources, and which demands technological upgrading. But
their form also reflects politico-cultural predispositions which sees non-Bangkok,
non-Thai and women as inferior identities. In Thailand, those struggling to estab-
lish their entitlements to forest land are peasants in northeast Thailand, the slum
dwellers seeking to preserve their community are Moslems, and the factory work-
ers threatened with redundancy after technological upgrading are women.
The study of Peru explains how the changing fortunes of individuals can
be related to the economic, political and cultural mechanisms of exclusion
using the concept of social assets. Social assets are of three types: economic
assets - productive resources (e.g. land, physical capital, financial capital, hu-
man capital); political assets - including citizenship rights of various kinds;
and cultural assets - including membership of social networks. Inequalities in
these assets together define social inequality in Peru. But individual endow-
ments with respect to these assets at any given moment in time are not only
indicators of inequality but also causally implicated in generating inequality in
the sense that they affect individual mobility from one time period to the next.
The development of inequalities of social assets is thus path-dependent.
The change in the different asset "endowments" of individuals over
time reflects the working of inclusion/exclusion mechanisms with regard to
the organization of production and markets, the realization of citizenship
rights, and membership of social networks. The study identifies a number of
events which are important historical determinants of patterns of asset en-
dowments. These are: (i) colonization and the rupture of the production base
and social cohesion of indigenous people; (ii) economic and social moderni-
zation based on urbanization and industrialization, which excluded the rural
populations and certain ethno-cultural groups and gave rise to urban mar-
ginality; (iii) adjustment which has created newly excluded groups: and pres-
ently (iv) the globalization of the economy. Each of these "social ruptures"
has left and is leaving traces on present processes of social exclusion. Sum-
ming up, there has been a tendency over time for increasing equality in po-
litical and cultural assets which has offset continuing and increasing inequality
of economic assets. But for particular groups - the indigenous populations -
this offsetting process, has not been so marked.
A final important feature of the analysis of the macro-micro relationship
methodology in the Peru study is that it considers the economy- and society-
wide feedback effects of social exclusion. These stem from the existence of a
distributional crisis, which is occurring because actual inequalities are greater
than those tolerated by the national "culture of inequality". This crisis acts as a
constraint on economic growth and threatens political stability. The working of
the exclusion mechanisms, in the context of a marked initial inequality in social
assets, is itself contributing to a macro-context which is reinforcing exclusion.
International relationships and social exclusion
Although social exclusion within countries is the result of the way in

which their economic, social and political institutions are changing and of
the nature of domestic policies, the studies make it clear that social exclusion
cannot simply be attributed to "internal factors". International relationships
are implicated in what is happening in countries. This is explicit in the key
social ruptures which are shuffling the patterns of individual endowments of
social assets in key historical periods in Peru. But it is also apparent in all the
other studies.
In the studies of Tanzania, India and Russia, a major event shaping social
exclusion is the reform programmes which are encouraging economic restruc-
turing and redefining the role of the state in social provision and economic
activity. In each case, reforms which seek to open up economies to competi-
tion from the rest of the world have been associated with the erosion (or com-
plete breakdown) of old social contracts which were a central means of social
integration. In this process, citizenship rights have shrunk.
The situation in Yemen is very complicated because of the recent unifica-
tion of the Yemen Arab Republic and the People's Democratic Republic of Yemen,
and conflict after unification. But the country has in the recent past experienced
an economic crisis because of its changing relationship with the rest of the world.
In this case, it reflects the curtailment of remittances and the return of approxi-
mately 1 million migrant workers to Yemen after the Gulf War.
For Thailand, social exclusion is related to the process of moving up the
global economic ladder through technological change, and also to the position
of agriculture in the development strategy which has been giving more empha-
sis to exports rather than the domestic market.
Policy proposals
All the studies, except the one on Russia, include discussion of the policy
implications of their analyses. These indicate that the social exclusion approach
can lead to a number of different policy ideas. Most of the suggested initiatives
are not new. Some of the policy proposals conform to mainstream ideas founded
on traditional poverty analysis, and some provide new justifications for old pro-
posals which are not necessarily currently fashionable. However, it is apparent
that discussions have some common features which clearly contribute to enrich
the debate on anti-poverty strategy, notably by proposing a shift in emphases of
policy design which involves, in particular, the need to devise mutually reinforc-
ing policies in different dimensions, an emphasis on institutional reform, and the
need for ensuring social and political representation.
The Tanzanian study argues for a policy framework which aims at both
poverty alleviation and social integration. This must generate economic growth,
but also seek to open opportunities for underprivileged members of society.
Efforts to increase the productive capacity of the economy and the earning
capabilities of those on low incomes, or with no income at all, should focus on
the rural sector and the informal sector. In the former, the key problem is ac-
cess to credit, inputs, skills, transport infrastructure and marketing services to
ensure adequate returns to land and labour inputs. With regard to the latter,
access to credit is vital.
Alongside efforts to expand economic opportunities, the government
needs to provide adequate health and education services and safety nets. This
is important as, "given the low level of the economy and the inherent nature
of how market forces operate, a significant proportion of the citizenry is
unlikely to be able to meet all its basic needs in the foreseeable future", even
if production and productive capacity increases. Administrative reform is
also necessary to ensure that poor people have access to social services. Fi-
nally, the policy should focus on all those whose economic, social and politi-
cal rights are in jeopardy. Women are a particularly disadvantaged group.
Action should be taken to reform or repeal laws which discriminate against
them, and affirmative action programmes should be implemented to redress
ingrained inequalities. For the rural population, the implementation of a na-
tional land policy which safeguards customary land rights is required. In
general it is important that laws are equitable and justly administered, and
efforts should be made to put in place mechanisms which would ensure that
"every individual and social group has sufficient scope for participating in
institutions which determine their destinies".
The study of Yemen argues that to combat social exclusion and promote
social integration, action should be concentrated on the provision of housing
and education. The government already emphasizes the latter, but it is impor-
tant that more effort should be placed on the children of poor and of marginalized
groups so that they complete their schooling. Also it is necessary to have spe-
cific housing policies, a relatively neglected area of social policy, which cater
for low income groups. With regard to labour markets, it is important to moni-
tor the recent law on social security and to give priority to workers from Yemen
in the labour market. NGOs, labour organizations and unions have an impor-
tant role to play as they can act to facilitate social and political representation.
Finally, this study also resorts to the concept of social exclusion to
evaluate and review development polices and strategies. For example, it is
apparent that there are no human resource development programmes spe-
cifically targeted at the poor rural areas. Expansion of the country's road
network represents a labour-intensive project which could have a major
impact on integration.
The Peruvian study argues that the policy priority should be to combat
social exclusion, as it is the latter which causes the high levels and perpetua-
tion or deterioration of inequalities which in their turn prevent rapid growth to
develop, and constitute a threat to democratic stability. "Policies must be ad-
dressed to change the market structures and the initial distribution of assets,
which are the factors at the base of exclusion mechanisms." A major ,problem
in achieving appropriate market reform is that is it is assumed by authorities
and some decision makers that basic markets are developed. In reality they are
not. The policy question is then not how to deregulate markets, but how to
create them. Policy makers have very little experience in this regard. Appro-
priate policies should seek to facilitate credit for small producers through insti-
tutional reforms which secure legal property rights, set up small financial in-
termediaries, supply public goods such as communications systems, and es-
tablish an efficient judiciaiy system. Insurance markets should be developed
through making more risks measurable. It may also be possible to shift risks
from small producers to firms or to find ways to share risks with the rest of
society. Tackling asset distribution is likely to be most feasible in the cultural
and political spheres, and this suggests that it is important to promote and se-
cure universal social and political rights, and to change cultural values. Uni-
versalization of the realization of these rights can improve the distribution of
social and political assets and act to offset trends towards increasing inequality
in the distribution of economic assets.
Finally, a necessary condition for promoting rights is effective and demo-
cratic political institutions. Priority also needs to be given to education and
health, as these can contribute to the redistribution of economic assets. Educa-
tion is also central in overcoming cultural exclusion, and an important area is
language policy.
The study of Thailand suggests that it is important that the government
should add equity consideration to its concerns over growth in policy formation.
Five specific types of measure are identified as crucial for combating exclusion.
Firstly, local community institutions, which are the best means through which
vulnerable groups can protect themselves against exclusion, need to be strength-
ened. In particular they need to be equipped technologically to fight modern
battles. Secondly, it is necessary to establish the legal basis for access to natural
resources for vulnerable groups facing competition for the resources on which
their livelihood depends. Thirdly, it is necessary to reinforce training programmes
to provide specific skills to more people. This is particularly important as labour
markets are changing rapidly. Fourthly, as women tend to be exploited because
of lack of experience in participating in labour markets, particular support should
be given to their organizations to help them negotiate better terms of inclusion.
Fifthly, institutional reforms should be supported to promote decentralization
and the empowerment of local bodies.
34 SOCIAL EXCLUSION AND ANTI-POVERTY POLICV. A DESATE
The study of India concluded, on the basis of comparison between the

performance of different states, that the critical issue was to create a political
support base for anti-poverty programmes and policies of inclusion. This re-
quired attention to power relations amongst social agents, to mechanisms which
consolidate democracy, and to re-orientate institutions in favour of the poor. In
addition, it is important to create efficient and accountable public and private
institutions which are both nurtured, and tempered, by civil society.
This study also concluded that the effects of the New Economic Policies
(1991) on poverty are not yet clear. But it seems that in the initial stages there
have been some negative social impacts: there has been a sharp contraction of
aggregate employment growth and reduced social expenditure. Revisiting this
macro-policy is needed to ensure the satisfaction of the basic needs of the
population within an adequate time-frame.
The debate
The conceptual debate
A major thrust of discussion was to identify the strengths and weaknesses

of the notion of social exclusion in addressing deprivation, disadvantage and
ill-being. This entailed (i) the identification of the differences between poverty
and social exclusion as conceptions of disadvantage; and, (ii) assessment of
the specific value added of the notion of social exclusion. Attention was also
paid to the various ways in which the notion may be deployed, namely as: a
descriptive concept; an analytical concept; a normative concept; and an organ-
izing framework. In addition, there was discussion of its positive and negative
potential as a political concept.
Overview and the main positions in the debate

In general, it was suggested that:
The social exclusion approach should not be seen as, or promoted as, a
replacement for the long and varied tradition of poverty analysis.
The notion had more value as an analytical concept, which directed atten-
tion to the way in which societal structures can generate poverty, through
actors and institutions, rather than as a new way of describing outcomes.
There were dangers in seeing it as an organizing policy framework which

lumped together unrelated processes, such as gender and caste discrimi-
nation; or exclusion from the labour market and exclusion from political
participation.
The notion is not simply a technical concept deployed in social science

but also a political concept. For some participants this was dangerous
whilst others saw it as an opportunity.
To maximize the value of the concept it is necessary to specify it more

precisely and avoid some of the rhetorical traps to which its deployment
gave rise.
The approach can have a policy analytical value added as a description of

outcomes or as an analytical concept. As a description of outcomes, its
key advantage is that it provides a broader view of deprivation and disad-
vantage than poverty. It directs attention to: non-material aspects of dep-
rivation which can act as additional handicaps for the poor; and, catego-
ries of deprived person (such as the aged in Europe) whose disadvantage
does not arise from lack of financial resources. As an analytical concept,
it has various advantages, particularly: it is founded on a multi-discipli-
nary approach which integrates social and economic analysis; it focuses
on processes, and the role of agency and institutions; and, it directs atten-
tion to the working of society as a cause of poverty rather than individual
failings.
Processes of exclusion should not be analysed independently of processes

of inclusion; and it was important to analyse the political implications
of policies against exclusion and find ways of prioritizing between
competing claims.
Within this overall picture, it is possible to identify three major views in

the Forum on the conceptual value added of the notion of social exclusion. All
participants recognized that the notion raised some issues which were not treated
in traditional poverty analysis (even if the latter was not artificially caricatured
and narrowed as only concerned with income and consumption). However, the
first view - which saw the least potential value added - argued that (i) those
issues should not be a priority concern in analysis of disadvantage, particularly
in developing countries; or (ii) even if those issues were relevant there was no
need to spread confusion by seeking to introduce a new language or revive old
concepts in a new guise. At worst, the notion could distract attention from real
problems of absolute poverty and destitution, and could be (and had) been
applied politically for this purpose. Moreover, exclusion should not be identi-
fied with poverty. There are examples of excluded groups in rich Western coun-
tries, such as the elderly or the disabled or women, and of included groups
which in some societies (e.g. feudal) are the very poor.
The second view recognized that the notion could bring a value added and
assessed this in relation to the strengths and weaknesses of traditional poverty
analysis. From this perspective the social exclusion approach was something
which could continue the trend of broadening traditional poverty analysis by
including facets of deprivation which were not due to lack of resources, and by
THE DEBATE 39
focusing on processes. The problem was to realize this potential which created
major challenges in terms of (i) specification of the concept; (ii) measurement;
(iii) the realization of an interdisciplinary approach, which added the insights
of sociologists and anthropologists to economic analysis; and, (iv) the devel-
opment of theoretical underpinnings and, through empirical research, analyti-
cal understanding. Different persons articulating this position wondered how
long it would take to realize potential value added given the current state of the
art in social exclusion analysis. In general the sociologists were more en-
thusiastic, and it was suggested that the concept would be of most value in
societies which were not homogeneous.
The third view, like the second, recognized that there was some value
added in the notion in relation to existing approaches to poverty. But in addi-
tion, it argued that there was a need for new concepts and analytical approaches
because we were living at a time when there was very rapid and drastic eco-
nomic change in the world to which people could not adapt fast enough. This
was having multiple effects on class structures, population movements, insti-
tutions, politics, policies, and public reactions. What was happening was de-
scribed in various ways - as globalization, post-industrialism, the erosion of
welfare systems, a new wave of democratization and an increasing labour-
saving technological change. But whatever was happening there was now a
gap between what was going on and our cognitive apparatuses for understand-
ing it. From this perspective, the notion of social exclusion was valuable not
simply because it extended poverty analysis, but because it offered a possible
language for understanding the shifts occurring and the new forms of social
dynamics.
Finally, it is worth noting that various participants underlined the point
that although the notion of social exclusion has been around, in various guises,
for a long time it was unclear whether this notion was an appropriate way to
conceptualize disadvantage in the new situation of change, and whether it was
valuable might only become clear in the future.
Social exclusion as an outcome
An important theme in the discussions was the ways in which social ex-
clusion differed from, or overlapped with, poverty as a description of an out-
come. An important underlying question was whether the value added of the
social exclusion notion could be best enhanced by dissociating it from the no-
tion of poverty.
Debate took as its starting-point two observations from work in Western
Europe. Firstly, it is apparent that certain types of people there were not poor,
but were socially isolated and in that sense could be considered in a situation
40 SOCIAL EXCLUSION AND ANTI-PD VERIY POLIC v: A OSEATE
of social exclusion. Examples were the elderly, and social categories such as
ethnic minorities who faced segregation problems because of cultural preju-
dices. These groups did not necessarily face problems of deprivation because
of lack of (financial) resources, though such social exclusion could overlap
with (and interact with) poverty. Secondly, it was suggested that the social
exclusion concept offered a broader view of ill-being and disadvantage than
the poverty concept in the sense that it directed attention to non-material as-
pects which had not been analysed so much in work on the poverty concept,
but which acted as additional handicaps for the poor. Critical non-material
aspects were social status, psychological status and cultural status. The social
exclusion concept also directed attention to the spatial dimension of disadvan-
tage, and highlighted the existence of territorial exclusion - excluded localities
and regions in countries, and also excluded countries.
It was stressed that it was important not to caricature the tradition of pov-
erty research in a vulgar way, falsely maintaining that it only considered mon-
etary problems, or was always static, or even ignored exclusion as a characteris-
tic of poverty. The notion of social exclusion would bring a value added if it
retained and included the notion of poverty, and if it did not overestimate the
virtues of the notion of social exclusion at the cost of underestimating the merits
of the notion of poverty. As such, it was possible to identify three different ways
in which poverty and social exclusion could be seen as outcomes: (i) as a "nested"
relationship, in which disadvantage was conceptualized in broader and narrower
ways - say from hard-core absolute poverty, to less hard-core material poverty,
to non-material aspects of disadvantage; (ii) as an "overlapping" relationship, in
which there was societal prejudice towards persons with certain more or less
immutable social identities (gender, race) which was often although not always
(there are many ethnic groups which are rich and excluded, such as the Chinese
and Indians in Malaysia, the Lebanese in West Africa, etc.) correlated with pov-
erty; and (iii) as a "non-overlapping" relationship in that persons were not poor,
but were excluded. To this it was added that some people were poor but not
excluded, a fact which was of some significance in the discussion of social ex-
clusion as a causal process.
Finally, and going against the grain of most of the discussion on social
exclusion as an outcome, it was suggested that social exclusion was best un-
derstood as a "second-tier" concept which expresses the cumulation of social
risk factors (such as unemployment, lack of access to social services, and fam-
ily breakdown) for certain social categories. Social exclusion is multi-dimen-
sional not simply in the sense that it includes different social risk factors, but
more specifically because it identifies the cumulative effects of risk factors,
which creates a new phenomenon. This new phenomenon is characterized by
the undermining of agency, more specifically the diminished capacity of indi-
viduals, families and groups to control risk and reduce its effects. In this view,
THE DEBATE 41
the specific aspect of social exclusion is that it considers the relationship be-
tween social risk factors, the cumulation of social risk and the capacity of groups
as a regime of risk. The notion of social exclusion is therefore not a broad notion
of poverty which encompasses non-material aspects and deprivations which do
arise from lack of resources. Rather poverty is a part of social exclusion. It is one
of various risk factors which together cumulate to form a risk regime.
Causes of exclusion and terms of inclusion
Whilst recognizing the possible value added of social exclusion as a de-

scriptive concept, participants generally argued that the notion of social exclu-
sion had more value in developing and post-socialist countries as an analytical
concept referring to the causal mechanisms producing poverty. From this per-
spective, social exclusion referred to a feature of the structure of society, or a
feature of the way social institutions function and develop.
Discussion particularly focused on whether social exclusion was signifi-
cant as a cause of poverty. Those questioning its significance posed two basic
questions: (i) Were people who were described and classified as "excluded"
actually people who were included, but on bad terms? and (ii) Is not the real
problem the terms of inclusion?
Regarding the first question, it was argued that it was difficult to sustain
the view that people were excluded from the development process (as for ex-
ample in some dualistic models of plantation agriculture and subsistence peas-
ant agriculture) in that those who were apparently outside the process were
often connected to that process in some indirect way. Exclusion, therefore, was
better seen as occurring when all people were part of the process but the rules
of the game meant that some always ended "at the bottom of the heap".
Secondly, it was suggested that what matters in determining poverty is the
terms of inclusion. Some views of exclusion (in particular the French Republi-
can tradition) assumed the existence of a harmonious community with shared
moral values. But often inclusion itself is problematic. This could be because: (i)
the terms of inclusion are not accepted; or (ii) the terms of inclusion are inher-
ently unequal or hierarchical. It was argued that many conflicts, and those in
Africa in particular, were conflicts of "contested inclusion". Moreover it was
evident that it was possible to have great inequalities without exclusion (as under
feudalism) and one of the worst things about poverty was being included on
terms which are terrible. It was also argued that more people are poor because
they have low productivity, low wage work rather than because they are unem-
ployed. A particularly challenging question posed was: If "exclusion" arises from
a situation of contested inclusion, do people regard their situation as better when
they are "excluded"? And it was argued that in adopting social inclusion as a
42 SOCIAL EXCLUSION AND ANTI -P0 VERTY poLicy: A DEBATE
desirable policy goal we may be taking for granted that the kind of society
which we want the excluded to enter is the desirable one, though in fact it may
be corrupt and dictatorial. Was promoting inclusion likely to improve well-
being in all cases?
These sceptical views - which went counter to an aphorism of Joan Robinson's
which one participant quoted, namely that "There is only one thing that is worse
than being exploited by capitalists; that is, not being exploited", helped to sharpen
the discussion of social exclusion as a causal mechanism. They emphasized the
point that you could not explain poverty by exclusion alone. And they highlighted
the importance of the observation that exclusion was intenelated with inclusion.
This last point was particularly evident in the Indian case study presenta-
tion which noted that inclusion in a strange paradoxical way fuelled exclusion,
for in that society, where caste and income worked together as primary sources
of exclusion, the culture of certain groups was devalued and these groups were
"forced" to be part of an artificially homogenized society whilst at the same
time they were excluded from participation in society. Also it was argued that,
just as many people did not know they were poor until they were thus defined,
so many became excluded as they were incorporated into larger systems which
placed them in a subordinate and vulnerable position.
Together, these ideas prompted the important assertions that:
The process of exclusion is not independent from the process of inclu-

sion, and vice versa;
processes of exclusion need to be analysed together with modes of incor-

poration (modes of social integration).
Further insight was generated through discussion of the nature of the

structure of society. The image of a dichotomous society in which there were
"insiders" and "outsiders", and individuals were either in or out, was strongly
rejected. Instead it was suggested, in one formulation, that there exists a size-
able grey area between social exclusion and social inclusion, and in the real
world most people live most of their lives in this zone, moving closer to
social exclusion and social inclusion at various points during their lifetime.
This echoed a description of UK society as a 30:40:30 society, with the top
30% contented, the middle 40% vulnerable, and the bottom 30% excluded.
In another formulation, which was classically Weberian, it was suggested
that society could be seen as multi-layered, like a kind of staircase, with
processes of exclusion and inclusion occurring at all levels and executed by
various kinds of organized groups and associations who are seeking on the
one hand to exclude others, to defend privilege and limit competition, and on
the other hand to counter exclusion. This view coincided with the assertion
THE DEBATE 43
from a policy perspective that "the breaking of exclusion is happening all the
time". It also implied that in seeing social exclusion as a cause of poverty, it
was important to focus on the exclusionary and inclusionary processes occur-
ring "at the bottom of the staircase".
Apart from the discussion on inclusion/exclusion and the structure of
society, other important points were raised in considering social exclusion
as a causal mechanism. Firstly, it was emphasized that an important feature
of the concept of social exclusion is that it drives attention away from at-
tributing poverty to personal failings and directs attention towards societal
structures. Secondly, an important feature of the concept was that it fo-
cused on the "destructive synergies" between different kinds of disadvan-
tage whereby disadvantages in one sphere spill over into other spheres,
rendering some social groups to be whatM. Waltzer' calls "radically disad-
vantaged". A key research issue was to collect evidence showing whether
or not such "hard exclusion" was associated with particular racial or ethnic
identities.
Finally, it was noted that much analytical and operational insight might
stem from viewing social exclusion in relation to the rapid institutional change
which was occurring with different institutions (e.g. education systems and
labour markets) changing at different speeds: social exclusion occurred as a
result of the consequent mismatches.
Social exclusion as a normative concept
There was very little discussion of social exclusion as a normative con-

cept, but important caveats were raised which pointed to the need for more
systematic analysis in this area.
Firstly, it was argued that the view that social exclusion was a violation of
rights established by democratic communities could be potentially problem-
atical. This was because in democracies what the majority decides often tends
to exclude and to exclude legally. Should such a situation be regarded as un-
just? Putting someone in prison, for example, was a form of exclusion from
society, but it was not necessarily illegitimate. Possible further progress in this
area could be made through work on the distinction between legitimate and
illegitimate exclusion.
Secondly, it was pointed out that inclusion could be a bad thing - for
example, many people argued that children should be excluded from the la-
bour market, and there was vigorous debate on whether children with special
needs because of handicap should be segregated in separate schools.
'Waltzer M. 1983. Spheres of Justice. Oxford, Blackwell.

44 SOCIAL EXCLUSION AND ANTI-PD VERIY poLiCy: A DEBATE
Finally, the suggestion was made that in order to be excluded it was neces-
sary that the norm was to be part of the system, or to espouse mainstream values,
or to have a feeling of belonging. This implied that in analysing exclusion as an
outcome it was necessary to examine people's perceptions, how people feel at
the cultural level, the ideological level and the psychological level.
Social exclusion as a political concept
It was evident from the account of the deployment of the notion of social
exclusion in policy debates in Western europe that political considerations played
an important role in its introduction. One participant, reviewing this experi-
ence, thus argued that social exclusion was not a social scientific concept but
rather a political concept which had been introduced for political reasons rather
than for research purposes.
This comment provoked much reaction. It was generally agreed that an
important feature of the notion of social exclusion was the way in which it could
be deployed politically. But the idea that one could sharply distinguish between
social scientific and political concepts was strongly disputed, and there were a
variety of opinions on whether the political deployment of the notion of social
exclusion was positive or negative in terms of achieving poverty reduction.
The great danger of the deployment of the notion of social exclusion was
that it was being politically used to make "real, nasty, genuine, poverty" invis-
ible as it became hidden under the umbrella of social exclusion. This was evident
in the fact that politicians in some European countries found the term social
exclusion more acceptable than poverty (which was considered too "touchy"). It
was also pointed out that in the immediate post-colonial situations exclusion had
been a broad screen, a curtain, which hid problems of desperate destitution.
A strong statement, which struck a chord, was that it was important that so-
cial exclusion did not become a "blaming label", which was used to make the poor
responsible for their predicament, as had happened with the term "underclass" in
the USA. Against this it was suggested that the fact that it was a political concept
was actually a source of strength. The notion had great political appeal. It enabled
better understanding of the politics of growth, and the fact that the politicians were
using it reflected their greater sensitivity to the great changes occurring in the world.
Social exclusion as an organizing framework
One point raised in the Issues note for the meeting was that the notion of
social exclusion could not only work as a descriptive, analytical or normative
concept, but could also be deployed as an organizing framework.
TI-IE DEBATE 45
In the discussions, this view was both supported and questioned. For
some, social exclusion usefully provides a framework for understanding why
all people in a particular society or context are not enjoying an acceptable
livelihood. But others questioned the value of social exclusion as a synthe-
sizing umbrella.
In particular, it was explicitly argued that it was not an unreasonable
hypothesis to suppose that exclusion from different arenas - for example,
from civil society, from the labour market, from voting, from university edu-
cation, from access to hospitals - was generated by different processes, and
that it would be impossible to attribute them to a single process unless we
moved to a high level of generalization. Fitting them all together under the
label "social exclusion" was very difficult and required consideration of how
the processes fit together, whether they all work in the same direction and
under the same conditions.
Similarly it was argued that you cannot merge an analysis of gender and
caste very easily, or of ethnicity and caste. Each of these different dimensions
of social disadvantage has very specific conditions. Bringing them all together
under the broad umbrella of social exclusion and hoping that this could lead to
a unified understanding was misguided.
Overall, these contributions implied that the notion had to be used with
care as an organizing framework.
Sharpening the concept
Throughout the discussion, various constructive suggestions were made

to strengthen the analytical and paradigmatic perspectives opened up by the
notion of social exclusion. An important preliminary aspect was whether the
notion could be applied in contexts outside Western Europe. Some radical
questioning of wider applicability was voiced at the outset with observations
from regional perspectives which indicated for instance that life and death
associated with absolute poverty, rather than people not having a place in
society or losing acquired rights, were the crucial issues. That one should not
talk about social exclusion in situations where the majority were excluded,
or that social exclusion was not relevant to the understanding of processes of
economic transition or adjustment. But other participants, and the evidence
of the case studies, suggested that wide application of the concept was possi-
ble and could generate insights. Rather than expecting that applying the con-
cept universally would lead to the identification of similar excluded groups
or similar causes of exclusion in different societies, universalization should
be expressed in a common approach to problems of poverty and social exclu-
sion in different settings.
46 Soc/AL EXCLUSION AND ANTI-POVERTY POLICY A DEBATE
Having the question of "universalizability" in mind, the four following

constructive suggestions to sharpen the concept were made:
It was necessary to distinguish different types of social exclusion more

clearly. A promising line in this regard might be to distinguish inten-
tional - legal exclusion (e.g. apartheid) and non-legal social exclusion
(e.g. discrimination in the USA) - from non-intentional exclusion (ne-
glect) and, as noted earlier, distinguishing legitimate and illegitimate
exclusion. Another view further distinguished in the latter between so-
cial exclusion in the initial conditions (the assets which persons bring to
an interaction) and social exclusion in the rules of the game. Whilst
another interesting point for specification was whether exclusion should
be limited to situations of active exclusion, and what that actually meant
(including intention and decisions to exclude) and how active exclusion
was different from discrimination.
It was wrong to analyse processes of social exclusion within coun-

tries in isolation from the international/global context. The modes
of inclusion of regions and countries into the international division
of labour was an important aspect of social exclusion processes within
countries.
Besides identifying the societal mechanisms which were responsible

for social exclusion, it was important to identify the political implica-
tions of those mechanism. This was vital for the design of realistic poli-
cies. For example, if certain mechanisms were found constantly to re-
produce social exclusion, it may be that the political consequences of
seeking to change those mechanism are too great. In those circumstances,
policy might best focus on putting in place compensatory mechanisms
which continuously offset the mechanisms constantly reproducing so-
cial exclusion.
It is important to avoid the misperception which was possible in the de-

ployment of social exclusion in political rhetoric that policies of inclu-
sion are invariably positive sum games. They are not and they can lead to
distributive conflicts.
It is important to distinguish between the exclusion occurring at differ-

ent levels - local, national and global. And it was also important to
specify the boundaries of the system from which people were being
excluded.
THE DEBATE 47
Implications of a social exclusion perspective for the

design of anti-poverty strategy
Current challenges in the design of anti-poverty strategy
The discussions about the implications of a social exclusion perspective

were introduced against the background of the current challenges facing anti-
poverty design. Some views were that there are major differences in the nature
of the problems facing different regions. In Latin America, after the 1980s, the
development style had been transformed. Growth was now associated with
greater inequality, greater poverty, and greater labour under-utilization and un-
deremployment. In general there was an increase in the structural heterogene-
ity in the production systems. In Eastern Europe (excluding Yugoslavia), the
transition process was associated with phenomenal dislocation. In a short pe-
riod of time, there were 75 million new poor, 10 million newly unemployed
and 10 million voluntary exits from the labour force. It is estimated that there
were 2 million additional deaths from 1989-94. In Africa, a major problem for
the last 20 years has been economic stagnation. Structural adjustment pro-
grammes had been associated with a fall in investment, and there was little
sign of recovery of international terms of trade. Many policy prescriptions
were misdirected because of lack of data and mistaken assumptions. In Asia,
where growth was occurring in many countries it was apparent that poverty
was still persisting and in some countries there had been a tremendous increase
in inequality.
Putting these comments in a global context, it was suggested that globaliza-
tion was redefining the nature of the social question. Globalization was intensi-
fying existing social problems and giving rise to new ones. National govern-
ments were still responsible for solving these problems but their capacity for
doing so was at the same time being reduced by the increasing international
mobility of capital. Global wealth coexisted with national poverty and, it seemed
that we were unable to organize society in a way which was consistent with
ongoing technological changes. Institutions for global governance were weak.
And competition was not a seeking together for solutions but rather a process of
elimination.
General policy implications of a social exclusion approach
Against this background the thrust of the discussion suggested that what
a social exclusion perspective did was not necessarily to offer a source of new
policy ideas, but to reinforce the justification for some policy orientations and
48 SOCIAL EXCLUSION AND ANTI-POVER1Y pOLICY: A DEBATE
ideas which were not currently fashionable (for example, to put inequality back
on the agenda together with absolute poverty) and to "shine a light on prob-
lems in a slightly different way".
In general, the thrust of the discussions of the Forum led to a broader shift
in policy emphasis which can best be summarized as:
Policy against social exclusion should not simply be remedying the dis-
advantaged situation of individuals in society, but also changing society.
Policy needs to focus on the non-poor as well as the poor. The social
exclusion approach also calls for increased coordination of interventions
at the local level, where the perceptions of exclusion are strong and the
possibilities of mobilization important.
The scope and content of meso-policies should be widened to facilitate

institutional change in a range of reinforcing arenas. The thrust of policy
should be to reorientate institutions so that they do not disfavour (and, in
some views, favour) the poor. A central element of policy to combat in-
justice, ill-being and disadvantage should be the creation of mechanisms
- participatory, communicative, informational, educational - through
which an idea of the public good is generated and shared.
A poverty reduction strategy should give a good deal of emphasis to im-

proving the assets of the poor. But assets must be seen in broad terms and
would include in particular associational skills and would be provided
through efforts to modify cultural codes and ensure rights realization.
A central thrust of anti-poverty strategy should be to promote creative

synergies between, on the one hand, a framework of rights which strength-
ened representative, participatory, communicative and democratic insti-
tutions, reformed the justice system, and rendered illegal all forms of dis-
crimination, and, on the other hand, the associational activity of civil so-
ciety, including collective action to break illegitimate exclusion.
It was emphasized that it was important to articulate policy measures at

the macro-, meso- and micro-levels, and also that it was important to
extend the policy discussion to the micro-micro-level (influencing rela-
tionships and exclusionary practices which might exist inside the family,
the firm and the farm) and also at the macro-macro- (global) level.
There was much support for the need for action at the global level, and one
participant formulated the position that it was difficult to institute inclusionary
policies in countries and regions which are themselves marginalized from the world
THE DEBATE 49
economy. Participants also raised the question of the relationship of the social ex-
elusion perspective to the 20:20 proposal and to the introduction of a Social Clause
into the WTO. Both questions were advocated as significant initiatives in the fight
against injustice of various kinds. But given the agenda of the meeting, the global
context of national anti-poverty strategy did not receive much attention.
Issues and priorities in key policy areas

Given the structure of the Forum (see agenda), discussion focused on the
ways in which institutional change might reduce poverty and social exclusion,
particularly at the meso-level, through policies affecting (i) market institutions,
(ii) citizenship rights and (corresponding obligations), and (iii) civil society,
None of these arenas was idealized as a solution to the problems of social
exclusion. It was pointed out that citizenship, which was usually conceived in
territorial terms, generally excluded others, and that civil liberties were
exclusionary by definition. Civil society was at present being idealized and
was best seen as both a primary cause of social exclusion as well as a primary
means of countering it. Key basic markets through which people get an in-
come and insure against risks - the labour market, credit market and insurance
markets - were non-Walrasian (markets which do not clear) and in situations
of overpopulation worked to exclude certain categories of people.
It was important to seek to achieve reinforcing measures in the three are-
nas rather than to see them as substitutes for each other. One general strategic
suggestion was that it was possible to reduce exclusions which were inherent
to the working of markets through "equalizing" (or homogenizing) political
assets and cultural assets. This entailed a mix of policies to actualize equality
in the possession of a particular (to be specified in each context) set of citizen-
ship rights together with educational measures to flatten the cultural status
hierarchies which are the basis of discrimination.
Market institutions
There was little discussion of which types of market institutions were the
most important objects of policy. There was support, which was particularly
strong for the Latin American case, for the idea that the labour market was the
critical mechanism for inclusion and exclusion. But the meaning of exclusion
from the labour market was contested. Neither open unemployment nor inabil-
ity to achieve formal sector employment was seen as an adequate way of de-
fining labour market exclusions. It was suggested that it would be particularly
helpful to consider how underemployment could be conceptualized in relation
50 SOCIAL EXCLUSION AND ANTI-PD VERTY poLICY: A DEBATE
to social exclusiom Also it was considered important to specify the relation-

ship between low paid employment and exclusion.
Regarding policies, it was argued that in some contexts it was important
deliberately to create markets. Many liberalization programmes were proceed-
ing under the assumptions (i) that markets existed and were repressed/distorted
because of government activity, or (ii) that they could be created simply by
increasing people's purchasing power or dismantling bureaucratic resource
allocation mechanisms. These assumptions were false. But standard economic
theory gave no indication of the factors which determine the evolution of mar-
kets, nor how markets could be created through policy means.
Given that markets existed, the key policies which were identified as ways
of combating exclusion were (i) to eliminate all forms of discrimination, and
(ii) to increase the material, human and social assets of the poor. The single
most important asset repeatedly referred to was human capital, and a recurring
issue was the best way to increase human capital - vocational training? spe-
cialized or general education? literacy and numeracy? - particularly to enable
people to deal with rapidly changing labour markets. But reducing the highly
restricted access to financial capital - which reflects imperfections in the work-
ing of credit markets - was identified as a priority for developing countries.
Finally, and perhaps most significantly, it was stressed that the notion of social
exclusion led to a wider view of the assets which enabled participation in mar-
kets. Access to information and also social networks and legal advice were
important, particularly so in labour markets.
Both the firm and the family were also identified as key institutions. It was
stated that the family was the most pervasive form of economic organization in
poor economies today. It acts as basic determinant of the potential and capacity for
change, as well as the only means of social security for most of the population, and
a means of education (through savings), But it was a highly unequal instrument.
Policy needed to examine how to encourage family institutions to create new en-
terprises. The firm, through its rationalization strategies,was a major (unintentional)
agency of exclusion, but it was also a mechanism of inclusion. There was thus a
need to examine the area of corporate social responsibility.
Finally, it was reasserted that poor people were not simply poor because
they lacked access to markets. The second part of the puzzle was to redress
imbalances arising from people's inclusion.
Citizenship rights
The discussion of the role of citizenship rights in policy against poverty and
social exclusion included a strong statement arguing that economic, social and
cultural rights provided a mechanism for countering the adverse social consequences
THE DEBATE 51
of (i) economic globalization (in which power was shifting from national sover-
eignties to TNCs and iFIs); (ii) current technological changes; (iii) large scale in-
ternational migrations and the influence of outside cultures which were breaking
down local institutions. These trends were leading to increasing numbers of weak-
ened, atomized individuals. Rights offered a countervailing mechanism because
(i) they provided an alternative vision to the ruling ethos of the market, a vision
based on human dignity, human needs and human welfare; (ii) they provided a
language and a set of tools which people recognize, and (iii) they provided a bench-
mark and a mechanism for measuring and holding people accountable.
At present, there was a general tendency to replace a universal concept of
social citizenship with means testing (on the basis of need). In this process social
expenditure ceases to be a right, in the sense that it is sufficient to be a member of
the community to qualify for some benefit, and it becomes instead a gift. Target-
ing was thus tending to convert former rights into "gifts". This can easily rein-
force a sense of stigma, as to qualif' one has to "prove" one's poverty. Also, gifts
empower the giver, who can withdraw them, while rights empower the receiver
by shifting the obligation to the giver.
Much of the debate did not focus on the effectiveness of a rights-based
approach to poverty reduction, but rather sought to raise questions concerning
(i) how a rights-based approach might be pursued in a variety of contexts with-
out imposing particular value-systems; and (ii) what the meaning of citizen-
ship is at the present moment when there were strong global and transnational
challenges to building and maintaining citizenship in national contexts.
From the theoretician's point of view, answering these questions was
particularly difficult because existing theories of social integration were de-
rived from the nineteenth century and based on the conception of a homogene-
ous nation-state. It was suggested that in the current situation it may be helpful
to conceive of citizenship as membership of a political culture which allows
different ways of life to co-exist in a common political framework. Citizenship
in this sense would not be exclusionary (on the basis of a way of life) but rather
be universalistic, in the sense that it was open to all who would participate on
equal terms. Important issues were whether states should privilege certain groups
in order to combat exclusion (affirmative action, positive discrimination), and
whether group rights should be legislated. It was argued that "a social exclu-
sion perspective allows us to transcend the narrower focus on individual rights
- be they civil, political, or social - and to assess the need and justification for
the so called group rights". But how this assessment could be made was not
broached.
From the practitioner's and advocate's point of view, the style of rights pro-
motion was very significant. A problem which was identified here was that in
Anglo-Saxon discourse which tends to dominate rights talk, there is a tendency to
adopt a top-down approach directed at national governments. This, it was stated,
52 SOCIAL EXCLUSION AND ANTI-POVERTY PoLICy: A DEBATE
was becoming an increasingly irrelevant way of looking at rights and it tended to

weaken local communities. Instead, the object of attention should be transnational
actors, particularly TNCs and IFIs. It was also necessary to look to communities to
incorporate principles embodied in rights into their local context.
Through the discussions, four key priorities were identified in terms of
citizenship rights which would be important in reducing poverty and combat-
ing social exclusion:
The reform of the justice system is a key element in an anti-poverty strat-

egy. Poverty is exacerbated by an extremely inefficient and corrupt jus-
tice system. Thus, even if there were high growth in an economy and full
employment, many people cannot get out of poverty because they cannot
get a just resolution to their problems. Policy should strengthen the rule
of law and the functioning of justice to make claims and conflict resolu-
tion operational. In some contexts it was also very important to confront
narco-traffic and problems of organized violence which were eroding the
social fabric and creating exclusions.
It is necessary to establish resource rights. Many vulnerable groups in

rural areas were losing competition over natural resources because they
could not establish a legal basis for access to land.
It is necessary to address the difficult issue of rights to language and cul-

ture, which might entail particular attention to the organization of the
education system.
Itis necessary to reinforce democratic institutions (the point which was stressed
most repeatedly), but what this meant in practice varied between participants.
For some it was sufficient to have multi-party electoral processes. A broader
view was that it was necessary to strengthen representative, participatory, com-
municative and democratic institutions which could act as a mechanism for
producing a notion of the public interest and an idea of the public good. Iristi-
tutional development and improved governance should give people a space in
which to organize themselves and press for change. It was also crucial to estab-
lish efficient and accountable government institutions which are nurtured and
tempered by civil society. Decentralization may be important in this regard.
With respect to this latter point, it was stressed that the recent wave of de-
mocratization throughout the world is a positive trend which opened up new op-
portunities for action against social exclusion. But there is a tension between de-
mocratization and globalization which is diminishing the capacity of governments
to achieve specific goals. In Africa, where the 1980s had seen the implementation
THE DEBATE 53
of adjustmentprogramrnes and a movement towards democratization, the style of

adjustment, in which policies were decided from outside, was leading to the
phenomenon of choiceless democracies. This was very detrimental for it was
leading to people losing interest in the idea of democracy.
Civil society
An important argument which emerged was that polices against social exclu-
sion should best promote a creative synergy between the protection and promotion
of civil, political and social rights and the activity of associations in civil society.
This was apparent in various suggestions. Firstly, electoral voting systems were
associated to varying degrees with poverty reduction, and this reflected the organi-
zation of social movements and mobilization of social forces. Secondly, it was
pointed out that education was necessary for civil society to act. Participation with-
out empowerment meant nothing. Empowerment required education so that peo-
ple were able to know their rights, to find out what they need, analyse how they can
get it and consolidate their hold on it when they got it. Thirdly, it was argued that
the expansion of civil society associated with the current wave of democratization
meant that the realization and enforcement of political and social rights was be-
coming a possibility in many societies for the first time.
In developing policy against poverty, it was argued that it was important not
to idealize civil society as many of its institutions or organizations are far from
participatory. From the point of view of political realism, three facets of the situa-
tion are important. Firstly, there are limits to the extent to which participatory em-
powerment through NGOs could lead to poverty reduction. These limits are founded
on the catch-22 that a weakened capacity for collective action is part of the condi-
tion of social exclusion. Secondly, empowering the poor does not take place in a
vacuum and is likely to lead to a response from the powerful which may be violent.
Thirdly, within civil society, there are also some very powerful religious and la-
bour associations, including business associations and trade unions. These associa-
tions are part of the institutional structure which is reproducing social exclusion.
Against this background, the following policy recommendations were made:
Community organizations should be "equipped to fight modem battles". Com-

munication capabilities for networking seemed to be central for this.
Alliances between domestic and global NGOs were important.
It is important to create alliances between different sections of civil society.
It is possible to create alliances of groups in civil society organized through

political parties, in which the interests of the poor are incorporated, and
through this means change the balance of power which influences the
formation and implementation of state policy.
Of these four suggestions, the third received much support. One model for
this was territorial coordination of key actors at the local/regional level. This
would include traditional tripartite actors, but would bring in other groups. From
a trade union point of view the key ones were: Human rights organizations, edu-
cation, environment, indigenous people, women's movements and children. In
Latin America a focal point for territorial coordination was action against labour
market exclusions and the actors involved included employers, enterprises, trade
unions, local interest groups, local administration and financing agencies. An-
other model was to create new forms of partnership between more powerful
actors. The example given was a partnership between the private sector, a multi-
lateral agency and government, to provide vocational training.
It was argued that policies towards civil society required different prac-
tices and organizational forms from donors. Perhaps they were inappropriate
vehicles for effecting policy goals in relation to civil society. They even may
tend to reinforce the processes of structural change which create problems in
the first place. From this perspective it was important to support national civil
society through global civil society.
Finally, it was suggested that although a facet of exclusion was a lack of
capacity for collective action, there was a wealth of experience on how collec-
tive action takes place. Also, it was argued that there was evidence that a thick-
ening web of civil society organizations could lead to better economic out-
comes including poverty reduction, even if this was not founded on altering
the balance of power and influencing policy formulation.
Specific operational issues
Most of the discussion was concerned with identifying general policy

ideas. But some interventions in the debate pinpointed operationalization as-
pects. These were however to which most clearly the project as well as the
Forum were less performing in contributing to current knowledge.
Measurement of social exclusion
Measurement of social exclusion is important both for the operationalization

of the concept and for "publicity", broadly understood as public understanding and
.awareness. Operationalization required that combating exclusion was a central
THE DEBATE 55
verifiable goal. The discussion did not focus in detail on the problems and possi-
bilities of measurement. However, two ideas were put forward.
Firstly, it was suggested that one way to measure exclusion was to de-
velop a refined index of life expectancy which divided a person's life into
segments, counted how long a person was in "excluded states" (say, underem-
ployed, unemployed or retired; in health, in hospital), and then calculated a
ratio of the period - time-span is critical - in excluded states to average life
expectancy. Secondly, it was suggested that although the notion of social ex-
clusion is not in broad currency in Nordic countries, the level-of-living survey
which were instituted there offers a major methodological tool for mapping
social exclusion as an outcome. This survey has information on public partici-
pation, including the profiles for specific groups.
It was also stressed that in measuring social exclusion as an outcome, it
was necessary to identify some threshold which, like the poverty line, distin-
guished those who were in from those who were out.
Other operational suggestions
A number of other operational suggestions were made.

Firstly, the Country Assistance Strategy (CAS) - the key document which
the World Bank used in its policy dialogues with countries - was a document
in which analysis of social exclusion could be incorporated. Secondly, there
were examples of sectoral projects, particularly in the area of human resource
development, where social exclusion issues are being addressed (though not
under that name). These projects, which were exemplified by an indigenous
development project which was being undertaken jointly by the Secretary
for Ethnic Affairs in conjunction with various major indigenous organiza-
tions and with the support of the World Bank, could provide examples of
how the social exclusion idea could be incorporated into anti-poverty work
at the sectoral level. Thirdly, it was suggested that the participation of the
excluded was vital in combating exclusion. NGOs were an important mecha-
nism through which the excluded could find their voice. Fourthly, one ad-
vantage of the social exclusion approach was that it focuses on agency and
institutions. It enables the building of a territorial approach, focused on la-
bour market exclusions, which sought to achieve coordination between em-
ployers, enterprises, trade unions, local interest groups, local administration
and financing agencies. Fifthly, it was suggested that the exclusion approach
allowed the mapping of (legitimate) claims for inclusion, but not the identi-
fication of priorities amongst them.
Finally, and significantly for operationalization, some doubts were raised
about the congruence of the goal of combating social exclusion and the
modalities of action of current development agencies. Breaking exclusion was

happening all the time, but it was difficult for it to be planned, delivered and
programmed. Basically it depended on various forms of collective action.
Selected presentations*
This part of the report includes selected presentations by some of the

speakers who acted as panellists during the Forum. In line with the format of
the meeting these presentations were designed to be "think-pieces" which would
provoke discussion and were usually given in a strictly limited period of time.
The presentations which have been selected are intended to illustrate a range
of views in the debate on the policy value of the notion of social exclusion.
They are divided here into three groups: firstly, general perspectives; secondly,
institutional issues, in relation to labour markets, citizenship and the role of
civil society; and thirdly, the perspectives of a range of social actors, including
business, trade unions, government, and international agencies.
General perspectives
Social exclusion and the new poor:
Trends and policy initiatives in Western Europe
by Alfredo Bruto da Costa, Portuguese Catholic University (Lisbon)
Introduction
I wish to thank the organisers for having invited me to participate in this

Forum on the implications of the social exclusion perspective for the design of
anti-poverty strategies. As mentioned in the programme, I am expected to com-
ment on the theme within the context of Western Europe.
May I begin by saying a few words on the concept of social exclusion, a
term recently adopted by the discourse of the European Union and that has not
yet deserved sufficient debate to yield the minimum consensus needed to take
its meaning for granted.
' Some presentations are based on edited transcripts of presentations whilst others are revised
versions of short papers prepared for the meeting.
60 SocIAL EXCLUSION AND ANTI-POVERTY POLICv: A DESATE
In 1988, the European Commission published a document in which there

was reference to social exclusion, marginalization and new forms of rty1 Some
months later, in 1989, the European Council of Ministers adopted a resolution on
"combating social exclusion", thus confirming the use of the term. However, the
last medium-term programme in favour of the most disadvantaged in the European
Union (1989-94) was still a programme aimed at combating poverty. Although the
official name of the programme referred to the "economic and social integration of
the least privileged groups", the actual content of the projects had to do with poverty,
and the programme was generally known as Poverty 3, meaning that it was the
third programme to combat poverty. Later, however, and still during the third
programme, the Community shifted decidedly from poverty to social exclusion,
and, consequently, this term spread to all the Member States.
The Poverty 3 programme
The last medium-term anti-poverty programme (1989-94) had some in-

teresting features that I would like to stress. Firstly, it should be noted that it
was an experimental programme, in the sense that it tried to test new ways of
dealing with poverty, in a set of projects that did not go beyond the number of
52 in all the (then) Member States. It required each Member State to assess the
results and then decide whether or not the approaches and methodologies should
be replicated in other similar settings.
The programme was based on a few fundamental principles. Firstly, the
projects should adopt a multidimensional approach. Poverty was understood as a
multidimensional phenomenon and, therefore, one of the conditions for the ef-
fectiveness of the action was that it should be comprehensive at the local level. In
those cases where poverty had a spatial character - that is, when it struck not
only certain persons and groups, but the whole space - the projects resembled
local development projects. It was, however, recognized that there were some
types of poverty and exclusion that were so complex and specific that demanded
especially tailored action. Such was, for example, the case of the homeless. In
these specific cases, the projects did not have a comprehensive character, but had
to be innovative in the way of understanding and tackling the problems.
The multidimensional nature of poverty should also have an institutional
translation. This led to the second principle, that was partnership. The projects
were expected to congregate all the different institutions that could contribute
to solving the problems: Public agencies and private institutions and organiza-
tions, local authorities, the central government and all the sectors of economic
'The reference for this document is: Commission of the European Communities (CEC).
1988. Social Dimension of the Internal Market. Brussels.
SELECTED PRESENTATIONS 61
and social activity that were relevant to the project. Some countries already
had a long tradition in this type of partnership. Others, however, did not, and,
in these cases, things were not easy at the beginning.
The third principle was participation. The projects should foster the partici-
pation of all the interested parties, especially that of the poor. Fourthly, the projects
should give attention to the policy implications of their analyses and work. A
possible criticism of local initiatives is that they may divert the attention from the
wider policies and deeper social changes that the eradication of poverty demands.
The concern with the policy implications could help to avoid that diversion.
Incidentally, the integration that the name of the programme referred to was not
understood as the integration of the poor in a society taken as good, but as a
process during which all the parties concerned would undergo a change.
Finally, the programme tried to place both the action as well as the evalu-
ation on solid scientific grounds. With this in mind, it included a research com-
ponent. Each project allocated 5 per cent of the respective budget to research,
and the programme, as a whole, commissioned comparative research projects
of an amount that did not exceed 9 per cent of the global budget.
As said earlier, it was during the third programme that the Community
shifted from poverty to social exclusion. It seems clear that the notion of
social exclusion stems from the French intellectual tradition, and historians
will explain the extent to which its adoption by the European Union was
influenced by the French "lobby" within the European Commission. How-
ever, since the term was picked up by the other European countries, the con-
cept has been subject to debate, and, despite its generalized usage, there is no
common understanding about what social exclusion actually means.2
Social exclusion
I would argue that the introduction of the notion of social exclusion

brings along a value added in dealing with the problems of disadvantaged
persons and groups, provided that, first, it retains and includes the notion of
poverty, still indispensable in at least some of the European countries, and
secondly, it does not overestimate the virtues of the notion of social exclu-
sion at the cost of underestimating the merits of the notion of poverty. In my
opinion, these two conditions can be satisfied, and therefore I welcome the
conceptual innovation.
2 the end of the Poverty 3 programme, it was decided to inquire about the meaning
of social exclusion that was implicit in the approaches adopted by the action projects included in
the programme, and a working team was set up to undertake this task.
62 SOCIAL EXCLUSION AND ANTI-PD VEflTY POLICY: A DEBATE
The IlLS has commissioned and published excellent theoretical and em-
pirical work on the concept of social exclusion, that I presume is known to the
participants of this Forum. Therefore, I need not elaborate on the subject. I will
rather focus on the trends and policies in the European Union concerning so-
cial exclusion and the so-called new poverty.
New poverty is an expression that seems to have emerged in the early
I 980s, to refer to those persons whose real incomes fell abruptly, due to unem-
ployment and/or inflation that were associated with the world recession, the
process of globalization of the economies, industrial restructuring programmes
and the creation of the European internal market. In some cases, this process
had a spatial dimension, comprising entire industrial zones.
It seems that the main devices that the European Community as a whole
used to combat this type of poverty - the new poverty - were the so-called
Structural Funds, with which the Member States were expected to face the
new challenges of economic restructuring and modernization, constructing
infrastructures, developing programmes of occupational training, etc. Inci-
dentally, it was precisely when the European Commission had consolidated
the conceptual shift from poverty to social exclusion - and, accordingly,
prepared a medium-term programme that would follow the third poverty
programme - that the European Council of Ministers rejected the pro-
gramme, namely due to the veto from one of the Member States. I would
argue that the rejection of the new programme had no relation with the
adoption of the concept of social exclusion, a term that was well accepted
mainly by those who felt that the term poverty was not suited to the situa-
tion in their societies.
Poverty 3 ended in June 1994, and since then the Union has no compre-
hensive action programme devoted to the least privileged groups. The main
argument was, and is, that this is a domain that belongs to national policies and
in which the Union, as such, has no competence. A complementary reason
was, perhaps, that the results of the third programme were not strong enough
to convince the political decision makers.
Meanwhile, the size and the pattern of unemployment in the Union pushed
the latter to the forefront of the political agenda. Indeed, employment creation
seems to be the only social major concern in the frame of the current concerns of
the Union, dominated as they are by the fulfilment of the criteria for the so-called
nominal convergence, having in view the next phase of the monetary union and
in the establishment of a single currency. A considerable effort is being made, at
the Community level, in the direction of the so-called active policies for reduc-
ing unemployment. However, action against all the other forms of poverty and
exclusion that are not directly related to unemployment have been substantially
downsized and devolved mostly to the initiative of the individual Member States.
As a result, poverty and social exclusion have been practically wiped out from
the political agenda of the Union. The intergovernmental conference that will
meet in 1997, with the objective of revising the Maastricht Treaty, may offer an
opportunity to bring back to the centre stage the social concerns, in general, and
poverty and social exclusion, in particular.
I am sure you will not be surprised to hear that, in my opinion, the two
principles that were less successfully implemented within the Poverty 3 pro-
gramme concerned participation and the policy implications. Indeed, to foster
participation means, inter alia, to empower the poor. And such an aim, if taken
seriously, would imply major social changes that most probably no European
society is prepared to accept. Something similar happens with the policy impli-
cations. When working at the local level it is important to distinguish local prob-
lems - that is, problems with local causes and local solutions - from mere local
manifestations of national or wider problems - therefore, demanding national or
wider solutions. Here, the implementation of the necessary policies depends upon
their acceptance by the national or regional authorities.
What I wish to stress is that, notwithstanding the relevance of the ap-
proaches and of the scientific bases of the strategies, action to combat poverty
and social exclusion has also an important political component that should not
be underestimated.
The contradictory concepts of social exclusion and

social inclusion
by Else Oyen (University of Bergen)
Let me start by saying that neither social exclusion, nor social inclu-
sion, are analytical concepts. They are political concepts, and they have been
introduced for political reasons. The original concept launched by the Euro-
pean Union's Targeted Socio-Economic Research (TSER) programme was
poverty. Apparently the politicians found this concept too loaded, so they
asked for another concept and were satisfied with social exclusion/inclusion.
Now poverty may not have been a much more precise concept. But
sizeable amounts of research have gone into identifying different concep-
tual contents and their contexts, and at least we know the major weak-
nesses of the different kinds of poverty concepts and the areas in which to
search further.
The politicians' choice is legitimate. They point their fingers at an im-
portant social process, and ask the researchers to find the necessary screws
and bolts to stop or reverse the process. The researchers' response may be
less legitimate. They pick up the concept and are now running all over the
place arranging seminars and conferences to find a researchable content in
an umbrella concept for which there is limited theoretical underpinning. The
original document3 they react to is a mixed bag of moral, political and aca-
demic statements and good wishes for an enormous amount of uncoordi-
nated research questions, to be provided with minimal funding. Connect the
five sets of Objectives in the six page document provided, and the hollow-
ness of the exercise becomes visible.
The picture reflects a trend in the social sciences by which applied social
science means that the social science research agenda is set by non-social sci-
entists, and hungry researchers run where the money is. I would rather see the
social science community set the agenda for how important social issues can
be tackled, through concerted efforts and long time investments in providing
basic insights and relevant data for meeting such challenges as social exclu-
sion. The result is that poverty, the real and nasty poverty, becomes invisible
because it is being hidden under the umbrella of social exclusion which em-
braces several other phenomena.
So much for the policy issues. Let me now turn to some of the theoretical
issues which trouble me.
Social exclusion/inclusion is portrayed as a dichotomy. Either you are
out or you are in. But that in itself gives us a static theory. Actually people
are moving in and out, and we need a dynamic theory which leads up to
work within certain time-spans. The choice of time-span will influence the
observed consequences of social exclusion/inclusion. Using, for example, a
life-span as the observational unit will provide different results than using a
randomly chosen period of say five years. The dichotomy is deceptive in
other ways. There already exists a sizable grey zone area between social
exclusion and social inclusion where the majority of the population is found.
One hypothesis is that people move closer to and further from some kind of
social exclusion or some kind of social inclusion (depending on how we
define the two concepts) most of their lives and in different phases of their
lives. During those movements a grey zone is generated and upheld where
people mill about in constantly changing positions in relation to the two
extreme points.
Social exclusion is a process leading to some undesirable place, while
social inclusion is leading to some desirable place. Is the undesirable place
part and parcel of the desirable place, or are we relating to two different kinds
of places which call for different analytical understandings? For the sake of
simplicity, let us decide to concentrate on the concept of social exclusion in the
following, and leave the problems of social inclusion and the interrelation of
the two concepts behind us for a while.
The reference is: European Commission, DG XII (Science, Research and Development),
Targeted Socio-Economic Research (TSER), Fourth Framework Programme (1994-98), Area
II, 1-5.
Before we start it is necessary to specify the context in which social exclusion

is supposed to be at work. Is it exclusion from civil society (another umbrella
concept), the labour market, political life, voting, university education or access to
hospitals which is in focus? This question has already been raised by many, but it
still needs to be repeated. However, it should be added that it is not an unreasonable
hypothesis that exclusion from the different arenas mentioned here is generated
through different processes, and not from one and the same process, unless we
move up to a higher level of generalization.
Now, if this is the case, we are faced with an entire set of processes pro-
ducing social exclusion. How do these processes actually fit together? Do they
all work in the same direction and under the same conditions? Most likely not.
Again, if this is the case, how do we fit them together in a synthesis under the
label of social exclusion?
Let us for a moment look at the role of the Scandinavian welfare state tradi-
tion and its impact on the understanding of social exclusion. Traditionally, the
Scandinavian welfare state has been described as universalistic, i.e. all citizens
should have the same rights and be covered under the same health and social
policy programmes. While it does not work so in practice, the welfare state has
certainly been a major instrument against social exclusion, and there is still a
fairly strong ideology expressed about the need for inclusion, equality, justice
and share of resources. The Scandinavian welfare states have been described
also as "averaging societies", i.e. societies where the idea of equality dominates
to such a degree that individuals deviating too much from the normal are pulled
towards an average standard through the politics of the welfare state and taxa-
tion. Although it sounds a bit dull, the picture is not altogether wrong.
The level-of-living studies developed in four of the Nordic countries during
the late sixties and the seventies can be seen as an expression of both the universalistic
approach and the averaging societies. Upon the request of the governments (except
in Finland where the initiative came from the research community) social researchers
were asked to provide a mapping of the living standards of the entire population on
a set of extended social indicators. The approach was new in at least two ways. The
focus was on everybody, not only the deprived part of the population. The indica-
tors went far beyond the traditional economic indicators and the few social meas-
ures thrown in for good measure. The indicators covered systematically important
areas for participation in society, such as access to public life, membership in or-
ganizations and networks, social and political positions, voting and personal feel-
ing of influence, etc. The indicators also followed the more traditional trail of map-
ping individual resources, such as education, health, family network, use of leisure
time, work conditions and well-being.
On the basis of these studies, a political instrument was developed which has
been put to use in monitoring social exclusion. The national bureaux of statistics
were ordered to follow up the studies on a continuous basis, and each of the
66 SociAL EXCLUSION AND ANTI-POVERTY POLICY: A DEBATE
welfare state countries now publishes profiles of the different population groups
on a wide set of indicators. Examples of such groups are single parents, elderly
people, immigrants, etc. In the comments following the profiles, the national bu-
reaux point out which groups are losing out at present and discuss how the resource
distribution profile of the population looks compared with earlier years. The pro-
files are not used to monitor exclusion of only certain groups; they can be tailored
to all kinds of groups. They have also become an instrument in social negotiations,
for example in wage settlements and collective claims for social benefits.
The indicators have all the same weaknesses that other indicators have.
But brought together they give a fairly good picture of the landscape of social
exclusion in some vital areas, and they add significantly to making the ex-
cluded visible. They tell us nothing about processes of exclusion, but they
provide a good basis for generating hypotheses. The way I see it, such data are
one of the several necessary tools to be developed if we are to proceed with a
broad social understanding of processes of exclusion, and of where the cut-off
points for society's tolerance of social exclusion can be drawn.
The same data tell us very little about social inclusion. It maybe argued that
there is no upper limit to social inclusion, and the more included and individual
it is, the better. Politically, the upper limits can be established through different
kinds of taxation. Empirically, people define their hierarchies and set the upper
limits through negative sanctions and according to built-in images of right and
proper behaviour. But the upper limits of a certain distribution is hardly the issue
here. The concept of social inclusion used for the purpose of TSER is meant to
include only the excluded. So first the excluded have to be identified. Then fol-
lows the question as to how much inclusion for the excluded is needed (before a
certain result/state/desired place is obtained), and where the actual tolerance lim-
its for inclusion go (similarly to the discussion of poverty lines). Who is to be the
beneficiary of less exclusion/more inclusion, and who is to extend less exclu-
sion/more inclusion (similarly to the classic discussion on social welfare), and
through which mechanisms is it all to be done?
All these questions, and many more, need to be answered before we can
start using the concepts of social exclusion and social inclusion as valuable
tools in our understanding of poverty.
Some reflections on social exclusion

by Paul Streeten
Exclusion broadens the concept of deprivation
The shortest shorthand definition of poverty eradication is income (jobs)

plus social services plus participation, or development of the people, for the
people, by the people. There are three aspects to income/employment: the ca-
pability and opportunity to earn, the contribution to production, and the aspect
of recognition. The new concept of exclusion stresses the third aspect of the
first element, the unmeasurable component of status that goes with employ-
ment (including self-employment); and the third element in the definition: par-
ticipation. It points to the fact that poverty is a much wider concept than just
lack of money.
Participation means that people are not treated as passive targets (nor as
target groups, which seems to imply that they are not only got at but actually
shot at), but as fully active agents. Targeting the poor, which may imply means
testing, is inconsistent with equality of status; it is a form of exclusion.
In order to make good sense of exclusion as a concept different from
poverty, either of two conditions would have to be fulfilled. Either exclusion
must cover, at least partly, different conditions from those of poverty, so that
there are some non-poor who are excluded and some poor who are not ex-
cluded; or the mechanisms of pushing into poverty or staying in it must be
different from those normally discussed by analysts of poverty. I shall return to
this point.
Exclusive forms of growth
Economic growth has been generally regarded as almost equivalent to

development. But there are some forms of economic growth that contain di-
mensions of exclusion and are therefore undesirable.
Jobless growth has been much discussed. Of course, if jobless growth
meant more production with less application of irksome or dangerous or disa-
greeable work and more leisure, we should welcome it; but not if it means that
some people work very hard while others are unemployed, deprived and ex-
cluded. We hear a lot about the importance of free consumers' choice. But
since most of us spend more time producing than consuming, producer choices
between jobs are at least as important as consumer choices between different
detergents, car models or television channels. Free workers' choice therefore
means not just full employment but over-full employment, so that there are
more vacancies than job-seekers. Yet we have very high levels of unemploy-
ment in most OECD countries.
What about those whose disabilities in the light of globalization and the
revolution in communications and information - lack of learning ability or of
self-confidence or of self-discipline - render them unemployed and perhaps
unemployable? They raise the problems that used to be discussed under the
heading of unemployment, or later, mainly in Latin America, marginalization,
or here and now, exclusion.
68 SOCIAL EXCLUSION AND ANTI-POVERTY POL!CV. A OEEATE
There is a lot of talk about the need for education, training and retraining. But
education, skills and aptitudes are not enough. A change in attitudes is also needed.
When there were 12 ditch diggers digging a trench a supervisor could see to it that
they were doing the job. If today a clerk feeds data into a computer a supervisor is
redundant because he could just as well do the job himself. The computer operator
has to have a degree of commitment and responsibility. He or she has to undergo
almost a revolution in attitudes, which is more difficult than the acquisition of
aptitudes and skills usually emphasized. A strategy that is concerned with remov-
ing exclusion will not accept jobless growth, even if the unemployed were pro-
vided with enough handouts to live on. But this may not be easy.
Even though few would maintain today that a higher level of effective de-
mand (e.g. through public investment), even if buttressed with an incomes policy
to keep inflation under control, is the whole answer to "structural unemploy-
ment", it would surely make a contribution to reducing unemployment as part of
a package. And it is not at all clear that our society cannot use plenty of health-
workers, nurses, child rearers, gardeners, plumbers, sweepers, protectors and
restorers of the environment, and other service-workers who do not need the
high and scarce skills demanded by modem technology and whose services can-
not be replaced by either computers or imported low-cost goods from low-in-
come countries (though imported low-cost workers should he welcomed). Many
of these jobs are, however, in the currently despised or neglected public sector
and may call for even more despised higher taxation. They are also often ill-paid
and not recognized as valuable. We need to change our valuation of such work
and should guarantee minimum standards of reward for them.
There are other forms of exclusive growth that should be rejected. Voice-
less growth is growth without participation, without empowerment of the poor
or without at least their access to power. Freedom is an important dimension of
human development as contrasted with narrowly interpreted economic develop-
ment. Basic material needs could be met in a well-managed prison. The world
has found unworkable and has rejected the process of centralized decision-mak-
ing in centrally planned economies. But the very same hierarchical process gov-
erns the relations between management and labour within both capitalist and
public sector firms. We know that under regimentation people do not give their
best. Democracy, participation, and inclusion should be introduced not only in
politics but also in the private sector; and not only in government and in profit-
seeking firms, but also in private voluntary societies and non-governmental or-
ganizations such as trade unions and churches; even in some families there is a
need for greater participation and inclusion, or at least better access to those in
power, particularly by women and in some areas by children.
In addition to jobless and voiceless growth there is ruthless growth.
Growth can occur with increasing inequality, with greater insecurity, with
growing violence.
Then there can be futureless growth with unsustainable development. It is a

form of exclusion of future generations from the benefits we, or at least some of
us, are enjoying now. We should not want to increase the well-being of future
generations at the expense of the poor now, including them by excluding others.
Inter-generational and intra-generational concerns should go together.
Rootless growth means growth that rejects cultural identity. Cultural iden-
tity often is the only thing a poor person can assert. In the early days scholars like
Gunnar Myrdal regarded local culture as an obstacle to development. Later au-
thors have looked upon it as an input to production and development and dis-
cussed how to build modernity on tradition. Now we are beginning to approach
culture in a different way. The purpose of the whole development process is to
find our cultural identities; it is the ultimate objective of development.
Limitless growth is the belief in the possibility and desirability of infinite
additions to production and consumption. It is neither desirable nor possible.
We should set limits to the accumulation of goods and services. Some forms of
excluding infinite time horizons, of setting limits to acquisitive behaviour, are
desirable.
In a recent film, Cold Comfort Farm, there are (I am told) four cows
called Pointless, Feckless, Aimless and Graceless. They remind me of jobless,
voiceless, ruthless, and rootless growth, all forms of exclusive growth. Alas,
we know that there has also been in many countries jobless, voiceless, ruthless
and rootless non-growth. I hope that this exercise in forms of lessness was
neither worthless, nor hopeless, nor fruitless, nor thoughtless.
Different forms of exclusion
We should distinguish between intentional and unintentional exclusion. In-

tentional exclusion can be encoded in law as was the case under apartheid in
South Africa or it can be social exclusion such as discrimination against Blacks
in the USA. It can take the form of self-exclusion such as the assertion of an
independent identity of some ethnic minorities in America or of irredentism in
many ethnic groups in the world. Unintentional exclusion can take the form of
lack of access to assets, entitlements, resources or power. Perhaps the worst legacy
of colonialism is not intentional discrimination or exploitation but neglect.
Another distinction is that between legitimate and illegitimate exclu-
sion. An obvious form of legitimate exclusion is that of convicted criminals
in prisons. In London there has recently been a passionate discussion on
whether the old male clubs are entitled to exclude women. "Exclusive" is
used as a word of commendation, praise and advertisement, as in "exclusive
club", "exclusive restaurant", "exclusive dinner". Groucho Marx famously
remarked "I would not wish to join a club that accepts people like me". Eti-
70 SocIAL EXCLUSION AND ANTI-POVERTY POLICV A DEBATE
quette - as complicated as a cotillion - is a form of exclusion. Manners are

simply a way of including some and excluding others. They are the oil that
lubricates the mechanisms of society. It was an act of grace and diplomacy
when Queen Victoria followed in the footsteps of a guest's faux pas and
drank from her finger bowl to set him at ease.
People who want to get together under a certain banner are surely entitled
to exclude those who do not subscribe to their rules. Countries regard themselves
as fully entitled to exclude certain foreigners. Illegal aliens in the United States
do not have the same rights as US citizens or legal immigrants. On the other
hand, even the poorest, most deprived, most miserable people form social net-
works and communities. In the shantytowns, favellas, slums and among the ur-
ban poor we find rich diversity and creativity in inclusion in their community.
Related to the distinction between legitimate and illegitimate exclusion is
that between equitable and inequitable exclusion. The important distinction
between equity and equality is normally ignored by economists who use in-
equity as synonymous with inequality. Inequity is not the same as inequality.
If you have more and I have less, this is inequality. If you have more because
I have less, or I have less because you have more, that is inequity. If you
have acquired your riches in an unethical way, or if you spend them in a
particularly vulgar or revolting way, that is an inequitable way of exclusion.
To give the concept "exclusion" some weight, it should not cover exactly
the same ground as poverty. You can be not poor but excluded, such as the eld-
erly in some societies who are often socially shunned, though they are quite well
off. And you can be poor but not excluded, such as the poor under feudalism.
There is an Anglican hymn that goes: "The rich man in his castle, the poor man
at his gate, God made them high or lowly, And order'd their estate." (The hymn
is by Mrs Alexander, who also wrote "All things bright and beautiful. . ."). The
aristocratic command "noblesse oblige" points to responsibilities towards the
poor, do not exclude them from your heart or your pocket. So substantial income
inequalities are consistent with absence of exclusion, just as equalities are con-
sistent with its presence.
The notion of exclusion points to the fact that income poverty is too nar-
row a concept to embrace all aspects of deprivation. In re-surveying villages in
Gujarat, after twenty years, N. S. Jodha found that the households whose real
income per head had declined by more than five per cent were, on the average,
better off on 37 of their own 38 criteria of well-being. Besides income and
consumption, they were concerned with independence, especially from pa-
trons; mobility, security and self-respect. This should serve as a warning against
attempting to simplify measures of poverty into single indicators, especially
those relying on income and consumption, and against relying solely on quantita-
tive indicators. Any attempt to understand poverty must include the way in
which poor people themselves perceive their situation.
SELECTED PHESENTATIONS 71
On the other hand, a person may be miserably poor but not feel deprived.
Self-assessment is only one aspect of poverty. In one of Anita Brookner's nov-
els there is a woman who is "so modest that she does not even presume to be
unhappy". Susan Minot says of a woman in one of her novels that she knows
her husband's choices will determine her life. "Not only did she not think of
making certain choices herself, she was completely unaware of having the
desire to do so." And Newland Archer says about May Welland in Edith Whar-
ton's Age of Innocence, "There is no point in liberating someone who does not
realize she is not free." It is characteristic that in all these examples the sufferer
is a woman. We should say that these women had a right to be happy, to make
choices, etc., even though they did not realize it.
The other day I read in the New York Times a column of Albert Shanker,
President of the American Federation of Teachers, titled "Inclusion Can Hurt Eve-
ryone". The guest column was written by Romy Wyffie, who is writing a book
about bringing up a son with Down syndrome. She argues against forcing handi-
capped or retarded children into general schools. They need special attention in
separate schools. All children will suffer if the pressure for inclusion eliminates
valuable special education programmes. Inclusion can be undesirable. Children
should be excluded from the labour market, and compelled to be included in the
educational system. Forcing one form of inclusion would eliminate another.
Levels of intervention
Three levels of intervention have been mentioned: the micro-level of the

household, family, firm, NGO; the meso-level, intermediate between micro-
and macro-, and the macro-level of national policies. I agree that the often
neglected meso-level is very important, for it will determine who pays the
taxes, who gets the subsidies, what the informal sector does, and so on. I want
to suggest the addition of two important levels and the need to examine the
interaction between these different levels.
First, we should add the macro-macro- or global level, and secondly the
micro-micro-level where we examine what goes on inside the firm, inside the
family, inside the voluntary society. These five levels interact in complex ways.
Employment opportunities for women, removing exclusion in the workplace,
for example, strengthen women's position inside the household, even if they do
not actually take up the opportunities. Macro-economic policies for trade affect
the distribution inside the household, depending on what crops are exported. If
there is a switch to tradables, which are in the hands of men, whereas non-tradabIes
were cultivated by women, this would weaken the position of women.
Meso-policies have important implications for the distribution of ben-
efits and costs. The international migration of workers, for example from
Malawi to South African mines (macro-macro-), has important consequences

for the families and the position of the women inside the families they
leave behind (micro-micro-). The cuts in social services that have gone
with adjustment programmes have thrown additional burdens on already
overworked poor women.
At the macro-macro-level the question of the right to international migra-
tion arises as does the right of countries to exclude foreigners. Everyone says
that the world today is becoming more integrated. But to judge by the freedom
of movement of people, it is much less integrated than it was before 1914 when
passports were not needed, citizenship was easily granted, and people moved
freely around the world. Globalization has greatly increased unemployment,
one of the most important forms of exclusion.
There is considerable scope for policies that make for complementarity
between different agents: between NGOs, profit-seeking firms and govern-
ments, between small informal sector firms and large domestic or foreign firms,
between private and public sector firms. In view of the rapid rise in the labour
force, we should think in particular about how to use the large, powerful firms
to provide non-exploitative links with the informal sector and micro-enter-
prises through subcontracting, putting-out systems, etc. As things are, the large
firms all too often compete their small rivals out of existence.
Research priorities
An important and under-cultivated area is research into the political economy

of fighting exclusion. Where there is unjustified exclusion, how do we build the
political support, the coalitions, the reformist alliances that would exert pressure
to reduce and eliminate that exclusion? How can we sketch maps of interest-
alignments that lead to the desired reforms? Bacteria do not draw the line be-
tween rich and poor, and international and national action for infectious disease
eradication has been very successful. Amartya Sen once said he wished poverty
was like an infectious disease; we would then soon see the end of it. On the other
hand, the rich might wish to put the poor into quarantine. Quarantine is, of course,
a way of exclusion to avoid contamination or infection.
Actually or potentially common interests is one important area of investiga-
tion, but there are others. Karl Marx talked about the expropriation of the expro-
priators. Perhaps we should turn our minds and actions to the exclusion of the
exciuders. Exclusion by the dominant system is met by appeals for the exclusion of
the dominators by the excluded. There may not be monolithic interests among the
excluders and conflicts within this group can be used for the benefit of the ex-
cluded. Empowerment is obviously important. At the macro-macro-level the Group
of Seven is a crass example of exclusion. Some time ago Stephen Man-is advo-
cated the formation of a Group of Non-Seven (oi; in his days, of Non-Five) who
would put pressure on the Seven for wider inclusion in the Group and representa-
tion of present outsiders.
I do not have time to discuss the question of the measurement of exclu-
sion. I have suggested earlier some possible approaches to indicators or even
a single index. One could take average life expectancy of the relevant group
as the principal dimension and then identify segments of time spent in vari-
ous states of exclusion: unemployed, in hospital, in prison, in retirement, on
a psychiatrist's couch, etc. The argument for a single index, which would
add up these periods and express them as a ratio of life expectancy, is not
intellectual but political. It catches the headlines more easily, captures lay
people's imagination and draws attention to the problem. It also provides
alternative ways of looking at poverty and exclusion to those of GNP or
income per head. There is considerable political appeal in a simple indicator
that identifies important objectives and contrasts them with other indicators.
It draws the attention of policy-makers to the problem of exclusion and the
need for public action.
Institutional issues
Labour market exclusions and the roles of social actors
by Gerry Rodgers (ILO, Santiago)
After working on the initial stages of the IlLS project on social exclusion,
I moved to Santiago to work on practical policy advice. That is like moving
from being a designer to being a mechanic. You move from designing sleek
new concepts and then when you actually try to do something practical and
you are a mechanic desperately trying to unscrew a nut, your spanner is the
wrong size, you do not know if your nut is the right one, and you have three
other people trying to screw it up again. Work at this practical level generates
a different perspective on issues like social exclusion.
At the practical level, there are at least two aspects of the notion of social
exclusion which I find particularly useful. One is that addressing social exclu-
sion always brings you back to actors and institutions. When you are working on
policy issues you are always dealing with actors and institutions. You may not
have a very clear idea of what the optimal strategy is and you may always work
at the second-, third-, fourth-best level, but the success or failure of any interven-
tion always depends on the reactions and positions of different actors. Social
exclusion is a framework which allows you to take that into account.
The other thing is that this is an idea which has appeal. In very diverse
sectors there is a positive response to the notion of social exclusion, interpreted
74 SOCIAL EXCLUSION AND ANT! -P0 VERIY poLicy: A DEBATE
as a notion that helps us see the issue of poverty and inequality in a slightly
different light and perhaps opens up new avenues.
So the first reaction from the practical level has not been negative. Never-
theless, there are clearly major difficulties in operationalizing a concept which
is, as Ashwani said, as broad and all-encompassing as exclusion.
The specific subject of this panel is how market mechanisms lead to ex-
clusion. I will look at three countries: Argentina, Brazil and Chile. These coun-
tries have been chosen not oniy because I am presently working on them but
also because they actually represent rather different models of how the labour
market functions. I will conclude with some comments on actors and institu-
tions, and in particular how different social actors may be mobilized in action
against exclusion.
Labour market mechanisms and exclusion
Starting with Argentina, the way labour markets have generated exclu-
sion over the last few years has been quite dramatic. Argentina was a country
which traditionally had low levels of unemployment, a pattern of income
distribution which is more European than Latin American. Recently the coun-
try suddenly found itself in a situation of rapidly rising open unemployment.
This was linked to both short-term recessionary mechanisms - a very intense
recession resulting from Cavallo's attempt to squeeze inflation out of the
Argentinean economy - and structural change, as the Argentinean economy
was opened up to the world market. External tariffs are still 35-40 per cent,
but compared with ten years ago that is extremely open. The result has been
a rather dramatic impact on levels of industrial employment in particular;
large numbers of people found themselves suddenly with unusable skills and
many in unemployment - the official figure at the moment is 16 per cent. In
fact, in Argentina the situation can be compared with the phenomenon of the
"new poor" in Europe, because people who were previously in secure, sta-
ble, reasonably well-paid jobs, suddenly find themselves with nothing and
no prospects. It is fairly clear what the mechanism of exclusion is here. Ex-
clusion is expulsion from the labour market. In the medium term, perhaps
there will be some drift back into employment as the informal sector mecha-
nisms may start to take up some of the slack. Some of the attempts to gener-
ate new opportunities for small businesses to develop may also start to create
new jobs. But massive retraining is required and there are very many groups
with particular vulnerabilities who look as though they are in for an extremely
hard time for the foreseeable future. There is in this case a clear relationship
between labour market adjustment and generation of poverty and inequality,
directly due to a process of exclusion.
In the second case, Brazil, some of the mechanisms are similar but Brazil-
ian institutions in the labour market are both more powerful and more flexible.
What is similar is that the opening up to market forces and to the world economy
has led to a steady haemorrhage of jobs from large industrial enterprises. But this
has not primarily raised open unemployment. There has been some rise in open
unemployment, but it is not of the same order of magnitude as in the Argentinean
case. Adjustment occurs primarily through a shift from registered formal work to
unregistered work. This is not a shift from a formal sector to an informal sector,
or at least not exclusively such a shift, for the employment in question is waged
labour. Even today almost half of wage workers still have a formal protected
employment relationship, but the proportion is dropping by roughly one percent-
age point per year. The shift, therefore, occurs through a conversion of regular
protected work into precarious wage work. It occurs basically through a loss of
labour rights. The nature of the process of exclusion is exclusion from particular
sets of rights to security, to protection, to representation, and also to some degree
of wage stability because wages are much more erratic in the unprotected sector.
In Argentina, wages - although they have started to decline a bit - have stayed
fairly flat through a rather dramatic transition. In Brazil there has been more
variation in real wages. In general, we can characterize the process in Brazil as
one in which people are shifted into relatively less desirable jobs where the qual-
ity of employment is lower.
What is the impact on poverty? Very diverse. In some cases it is clear that
there is a growth of poverty. The decline in quality of employment and the shift
from regular waged labour to clandestine or subcontracted work, result in a
fall in real incomes. But the figures on poverty do not show any dramatic rise
in poverty as a result of these processes, certainly less than in Argentina.
There are many other labour market mechanisms at work in Brazil. If one is
interested in looking at how exclusion occurs, child labour is extremely impor-
tant. Child labour cuts off opportunities, stratifies the labour market and intensi-
fies segmentation. Those entering at the bottom end of the labour market stay in
poor, unskilled jobs. One can model this process very simply by supposing that
there are two different ages of entry to the labour market, one involving child
labour and the other with entry age 17 or 18. This labour market diverges, seg-
ments. That is a very important factor in determining exclusion.
The third case, Chile, shows declining poverty. It does not show declin-
ing inequality. The bottom 40 per cent has stayed relatively stable in their share
of income in Chile, the next 40 per cent up - the middle - has lost, and the top
has gained. So what has happened in Chile is that there has been income po-
larization. The labour market seems also to reflect that polarization. On the
one hand, there has been a very steady creation of jobs. The Chilean economy
is a star in Latin American terms in its capabilities to create jobs but there is
divergence - not as abrupt as in Brazil, but there is divergence - between the
76 SOCIAL EXCLUSION AND ANT/-PD VER7Y poLicy: A DEBATE
good jobs (high skill, high pay, belonging to the right sort of social class) at the
top, and the growth of casual, irregular jobs (with relatively less protection) at
the bottom. It is therefore important to look not only at job creation, which has
been successful. Unemployment in Chile is now around 6 per cent. Consider-
ing that in the early 1 980s it was well over 20 this is quite an achievement.
Nevertheless one needs to look at the pattern of labour market inequality. Why
has growth generated that pattern? I would say that a very important factor in
Chile, compared with both Brazil and Argentina, is the weakness of the institu-
tions for dialogue and interaction between social actors. The space for consen-
sus-building between workers and employers in Chile seems to be very lim-
ited. In part this can be traced to the widespread belief that whatever comes
from the market can only be right. This sharply reduces the space for negotia-
tion, and tends to promote adversarial positions in the labour market. It is plau-
sible to argue that labour relations are likely to be the Achilles heel in the
medium term of the Chilean development strategy.
What is the impact of all this in terms of exclusions? One type of exclu-
sion consists in creating a large group of people who, in a rapidly growing
economy which generates many opportunities, have no opportunities, no ac-
cess to these opportunities. The high-consumption lifestyle is basically closed
off if you are living on a minimum wage of $150 a month. Nevertheless, the
majority of the poor live in urban environments where they are constantly ex-
posed to the visible elements of this lifestyle, intensifying deprivation. At the
same time, there is a growth of various "social" problems which are very fa-
miliar from European experiences: young people who can't get into the eco-
nomic system and who drop out; drug problems which are growing; marginal-
ity of populations without the credentials which the modern economy demands.
The role of social actors
These three examples show that exclusions take many forms; but they
also suggest that there are options for action against exclusion, especially if the
roles of different social actors are understood. In this, actors can be regarded
either as participants in the process of exclusion, or as agents of change.
The former can readily be seen in the strategies and behaviour of enter-
prises. Enterprises generate employment, and thereby include. Indeed, the en-
terprise may be regarded as the primary source of economic inclusion. At the
same time, enterprise behaviour is a source of exclusion, if jobs are lost or
labour market insecurity increases. Such adverse labour market outcomes can
be understood as a by-product of rational strategies of enterprises; competitive
pressures force enterprises to reduce costs and some production is subcon-
tracted out; restructuring occurs; cheaper forms of labour use are sought, etc.
This is not deliberate exclusion. This is not an evil employer attempting to

provoke exclusion, it is part of a much broader process which simply responds
to the changing pressures of market forces.
At the same time, a problem on the other side of the labour market is the
poor representation of many workers. It is virtually a tautology to note that
those excluded from decent jobs are also excluded from effective representa-
tion. There are exceptions; there is an interesting case in Argentina where a
trade union of the unemployed has been formed which tries to defend the inter-
ests of the unemployed, and attempts to identify areas where its members can
earn incomes in odd jobs. But this is an exceptional case, and on the whole it is
very difficult for trade union organizations to effectively encompass the inter-
ests of many groups of the excluded, interests which are often in contradiction
with those of many of their active members. Again, the forces behind worker
representation contribute to a process of exclusion.
But the other side of the coin is that social actors can be agents for change.
Different forms of participation in labour market institutions give some de-
grees of freedom for policies against exclusion. And the declining capability of
the State to intervene effectively in social policy provides a strong incentive to
explore the possible contribution of other elements of civil society. If the State
is retreating from some areas of social policy then the social responsibility of
the private sector is thereby increased. The social responsibility of the enter-
prise is therefore an important consideration, espcially given the potential of
the enterprise for inclusion and exclusion. Such responsibility clearly has to be
exercised in coordination with other actors. Indeed, there is much scope for
coordination in the analysis of the economic and social mechanisms responsi-
ble for exclusion, and in the identification of institutions and incentives which
could be modified in the interests of inclusion.
This can be seen most clearly at the local level, where effective action
against poverty and exclusion depends on coordination between intervention
of different types. A territorial approach to policy against exclusion seems prom-
ising. Within a particular area, a particular labour market, one can try, at the
local level, to achieve a coordination between employers, enterprises, trade
unions, local interest groups, local administrations, state governments and fi-
nancing agencies. In both Chile and Brazil there have been interesting attempts
to build up such local coordination, and at the same time to promote a coordi-
nation between action at the national level and at the community level.
At the national level, institutions for the coordination of interventions by
different actors are equally important; but they always run the risk of being no
more than talking shops if, as is usually the case, they control no resources. Such
institutions promote an exchange of ideas. But even very broad-based councils
at the national level in which all elements of civil society are involved end up
doing little more than issuing recommendations and offering directions. It seems
78 Soc/AL EXCLUSION AND ANTI-POVERTY POL!CY. A DEBATE
to be more difficult to mobilize effectively at national than at local level. One

obvious reason is that much action against social exclusion is pushing against
powerful interests, which operate most effectively on the national stage. Such
interests will not necessarily reject all action against social exclusion but may be
very effective obstacles to raising the resources needed for significant advance.
The problem of the institutional framework for coordinated action against
exclusion remains a major unresolved issue. Nevertheless, the search for coor-
dination among different actors seems an essential ingredient, and one which
the concept of social exclusion itself promotes.
Poverty, exclusion and citizenship rights

by Hilary Silver (Brown University, Providence)
The Issues Paper and particularly, Charles Gore's summary of the institu-
tional approach raise several provocative questions about citizenship as a means
to combat social exclusion. Although sources from legal theory and political
philosophy offer many normative insights about the inclusive aspects of mod-
em citizenship, an institutional approach must deal with empirical realities.
Thus, my remarks reflect the sensibility of a political sociologist who is less
comfortable proposing prescriptions than raising political issues for appropri-
ate decision-makers to debate. To the extent that citizenship is a tool for fight-
ing social exclusion, it must address at least three issues: the national exclu-
sivity of citizenship, the mix of citizenship rights and active duties, and the
extent to which citizenship extends to groups as well as individuals.
Defining citizenship
No discussion of citizenship as a form of social integration can avoid a prior

defmition of the term. Since citizenship rights and duties ultimately refer to social
relationships, even when their object is the relation between individuals and goods,
the universe of people included in such relationships must be addressed.
The most common conception of citizenship, even in T. H. Marshall's
classic formulation, is territorial, as formally or legally recognized member-
ship in a community delimited by nation-state boundaries. Were all the people
in the world clearly members of one and only one nation-state, it might be
possible to avoid considering how citizenship can be exclusive, but unfortu-
nately, immigrants, refugees, asylum-seekers, and exiles may be stateless or
citizens, in effect, of two states at once. The existence of supra-national institu-
tions also complicates matters, for international accords entail, to some extent,
a ceding of sovereignty to authorities beyond territorial borders.
SELECTEO PRESENTATIONS 79
Thus, formal membership in a nation-state is distinct from substantive

citizenship, that is, in Marshall's terminology, the exercise of "an array of civil,
political and especially social rights, involving also some kind of participation
in the business of government". Unlike the formal status of citizen, member-
ship in a community can be a broader, more inclusive category, complex, am-
biguous, and unfortunately, "messy". This suggests a working definition that
delineates the members of a community within which substantive citizenship
operates, i.e. the set of people whose social relationships are governed by a
given set of rights and duties.
Active and passive citizenship
Emphasizing rights to the neglect of obligations too often dismisses a

theoretical tradition, dating from Aristotle, that views citizenship as "ruling as
well as being ruled", one also reflected in Marshall's concern with "participa-
tion in the business of government". Full substantive citizenship includes an
active component, a role in decision-making that accompanies the juridical
membership bestowing rights and privileges.
Yet, as Jurgen Habermas (1995) observes, the negative liberties of civil
and, by extension, human rights may suit markets, and the positive liberties of
social rights may suit bureaucratic states, but both may encourage political
retreatism. In so far as active political participation requires an unimpeded
flow of communication, full substantive citizenship requires an inclusive pub-
lic sphere and a free and egalitarian political culture. In this perspective, citi-
zenship implies equality among those who may be "strangers" to one another
in all other respects. Thus, a community of citizens and its claim to self-deter-
mination cannot rest upon national culture or particular ways of life. Rather,
equal citizenship rests upon a common political culture, enshrined in constitu-
tional and basic laws, that allows for different ways of life to co-exist within a
common political or institutional framework.
In so far as people can communicate within such a political culture, it is
accessible to newcomers. This implies that citizenship should be open to out-
siders with the sole, but essential, proviso that they accept common political
principles and actively fulfil their obligations. Moreover, global communica-
tion means that global citizenship is possible. It is a framework that simultane-
ously allows for national, cultural, and other forms of difference to coexist.
This approach, though abstract, has the advantage of recasting citizenship
to transcend the borders of socially homogeneous nation-states. It detaches na-
tionalism from political arrangements that can accommodate multiculturalism.
It also implies that international accords on human or social rights need not un-
dermine national governance. Even in non-democratic states, all residents who
80 SOCIAL EXCLUSION ANO ANTI-PD VERTY POLICY: A DEBATE
respect the legal principles outlined in transnational agreements can qualify as

"citizens of the world". Rather than a mechanism of exclusion, citizenship can
operate as an institution, however limited, of social integration.
Until now, the substantive citizenship offered in transnational agreements
mainly consists of civil and social rights. Although the negative liberties in
civil rights, like freedom of speech, can be politically enabling, the freedom to
be left alone by the state does not, by definition, promote the actualization of
full participation in the community. Moreover, in some respects, civil liberties
are exclusionary by definition. Just as property rights justify the expropriation
of material goods that may have previously been used in common, so can civil
rights act to confirm possessive individualism. They give individuals control,
and exclude families or communities from the right to dispose of their mem-
bers' lives. In contrast, social rights are positive liberties that make it possible
to secure equal rights to some resources and overcome hobbling inequalities.
Yet, again, freedom from material want is simply enabling. Oppressive gov-
ernments and grinding poverty are not the only obstacles to active political
participation in decision-making. Ruling, as well as being ruled, is often sty-
mied by social exclusion as well.
Social exclusion and group rights
A social exclusion perspective transcends the narrower focus on indi-

vidual rights - be they civil, political, or social to assess the need and justifi-
cation for so-called "group rights". Citizenship, as I have discussed it so far, is
universalistic in the sense that it is inclusive and accessible to all who would
participate on equal terms. However, the existence of socially excluded citi-
zens demonstrates that bestowing equal rights upon previously excluded groups
- women, minorities, immigrants and so on - has not guaranteed equal treat-
ment, participation, or political influence. Anti-discrimination laws often place
the onus on the least powerful to secure their enforcement.
The problem with individual citizenship rights as a way to combat group-
based social exclusion derives from Iris Young's distinction between universal-
ity as generality, i.e. an emphasis on what citizens share, and universality as
equal treatment, which may require a "differentiated citizenship". If citizenship
is constructed as a common denominator, a general will, or a homogeneous com-
munity sharing political norms, as in the Habermasian definition above, some
groups - however formally equal their members - may be excluded as less
capable of exercising their equal rights. Social exclusion, as distinct from mate-
rial disadvantage, inhibits participation, socially isolates certain groups, and dis-
counts what they have to say. They may become "permanently outvoted minori-
ties". Therefore, "special rights" - positive or compensatory discrimination,
affirmative action, or group representation - may be necessary to secure the

equal treatment of groups with unequal participatory capacities that equal rights
cannot alone guarantee.
However, the notion of group rights and related "multicultural" policies
often offend universalistic sensibilities and appear contrary to the inclusive,
non-cultural principles of citizenship. Universalism is a value shared, in their
own manner, by most Western political ideologies. There are at least four rea-
sons for opposing group rights as a means of combating social exclusion.
First, some object that group rights appear to contradict individual
freedoms. Once the law recognizes an official group difference, abstract rights-
bearing individuals can be quickly relegated to second-class citizens. Just as
protective legislation for women justified their disqualification from the fran-
chise on the grounds of their distinctive potential motherhood, so affirmative
action for racial minorities may implicitly stigmatize those individual group
members who did not previously have the "capacity" for full participation in
the community. Young believes such stigmatization will not result because
excluded groups bearing "special" rights will use them to struggle against la-
bels and stereotypes, recasting group identity in positive terms.
Secondly, advocates of direct participatory democracy and decentralized de-
cision-making object that group rights ignore inequality within groups, allowing
more privileged group members to speak for all members, even those who disa-
gree. The presentation on India illustrates how this can happen. But Young be-
lieves this "group-think" can be overcome if excluded groups develop their own
internal democracy. Inclusive decision-making procedures within groups should
guarantee that spokespersons are truly representative. There is some evidence from
NGOs around the world that horizontal ties among local and specialized NGOs
keep them democratic, offsetting the tendency of vertical ties, e.g. national confed-
erations, to produce oligarchy. However, defining group membership ascriptively
or culturally, rather than voluntarily, for the purposes of internal decision-making,
can itself be exclusive, as discussed above with respect to nations.
Thirdly, some communitarians reject group rights because they lead to
a pervasive "rights talk" in which groups proliferate, each claiming their
own special rights and privileges. For every right to bargain collectively,
there is a right to work (in the American sense of refusing union representa-
tion). For every reproductive right, there is a right to life of a potential un-
born child. For every right to medical care, some may claim the right to die.
And so on, ad infinitum. Communitarians despair that group rights under-
mine the slender threads of common loyalty, the commitment to shared prin-
ciples already discussed, and the felt obligations and responsibilities that
transcend groups. Yet communities can also be stifling. Should citizenship
demand conformity beyond the limited sphere of political culture, group rights
may provide protection for distinctive ways of life.
82 SOCIAL EXCLUSION AND ANTI-POVERTY POL!CV A DEBATE
Finally, pluralist theorists have struggled with the dilemma that group
representation can turn previously excluded groups into permanently out-
voted minorities. Even if minorities are provided a place at the table, they
may be mere tokens. Majority rule will never go their way. By analogy, a
weak labour movement rarely wins concessions from its adversaries, so that
inclusion in corporatist collective-bargaining institutions only results in so-
cial control. Other forms of group representation may have the same result.
James Madison, an architect of the American constitutional system, worried
considerably about this problem. His solution was to multiply and overlap
the jurisdictions within which decisions were made, so that institutional con-
stituencies were various and always socially heterogeneous. The US federal
system provided different political arenas where national minorities may be
local majorities and thus enjoy some political victories. Without denying the
importance of group loyalties and interests, appropriate institutions, like
freedoms of association, can check the totalistic, all-encompassing nature of
group membership.
Conclusion
The discussion of group rights was not intended to resolve these issues but
rather to provoke a discussion of the alternative ways to construct inclusive insti-
tutions. Citizenship can be a means to social integration if it is broadly con-
ceived, taking account of both formal and substantive rights and duties, passive
and active mechanisms, and individual and group bases of social exclusion. It
may transcend nation-states, opening up the potential for globally recognized
and enforceable rights and duties. Yet it is important not to conflate citizenship
with nationhood, for its greatest contribution to social inclusion may lie in pro-
viding a political framework within which other forms of difference can coexist.
Civil society, social exclusion and poverty alleviation

by Gordon White (IDS, University of Sussex)
The idea of civil society
The idea of "civil society" is currently very popular in development cir-

cles, but the term embodies an ambiguity which reflects widely different intel-
lectual traditions and practical purposes.4 By far the most common usage is to
denote a realm of intermediate social association between the state on the one
4For a detailed study of this ambiguity, see White, 1994.

hand, and the basic constituents of society on the other (individuals, families/
households and firms). As such, it can be distinguished from society - an all
encompassing notion of the totality of social, economic and cultural relations
within a given national space; political society - those institutions which serve
to link society and state, notably political parties; and economic society - the
particular configuration of economic institutions which define the character of
a society's economic system. Even if we confine ourselves to the idea of an
intermediate associational sphere, however, the real world of civil societies is
highly complex, potentially including organizations as diverse as criminal se-
cret societies, chambers of commerce, fundamentalist religious organizations
and football clubs.
Understandable, therefore, is the desire to simplify, by implicitly or ex-
plicitly equating civil society with a favoured sector of associational life: this
may be the "modern" sector of potentially progressive organizations such as
trade-unions or professional associations as opposed to "traditional" or other-
wise unacceptable "primordial" forms of association such as tribal/ethnic as-
sociations; or, much more commonly of late, the amorphous "NGO" sector. In
this latter incarnation, "civil society" tends to be idealized - as a realm of
participation, voluntarism, emancipation, altruism and accountability - as op-
posed to the putatively bureaucratic, hierarchical and coercive apparatus of the
state or the narrow sectionalism of privilege-seeking interest-groups such as
unions or business associations. While this kind of idealization does contain
potent elements of truth, it creates a discourse which lionizes anything resem-
bling an NGO and demonizes the state and other social associations, creating
unhelpfully stark distinctions which befuddle thought and bedevil practice.
In reality, however, the intermediate realm of civil society should be
seen as a kind of associational map of society itself and thus defined by the
specific contours of inequality, difference and dominance/subordination which
characterize individual societies. Its inherent tensions and conflicts provide
much of the stuff of politics in any society. Moreover, while civil society
may be analytically separate from and in opposition to the state, it also pen-
etrates the public realm and conditions the nature of public action. The realms
of civil society as a whole can be seen as a multi-dimensional and multi-
layered matrix of organized social action, based on principles as diverse as
class, gender, ethnicity or religion and reaching from top to bottom of soci-
ety. Each particular civil association can be situated structurally within this
organizational ensemble and, in the tradition of Weberian sociological analysis
of the process of "social closure",5 operates as an agency for both exclusion
Parkin (1979; 44) defines Weber's action of "social closure" as "the process by which
social collectivities seek to maximize rewards by restricting access to resources and opportunities
to a limited circle of eligibles".
and inclusion in relation to specific social groups. Frank Parkin (1979:44-

45), for example, divides this realms into two competing categories. On the
one hand, there are those organizations able to arrogate privilege and re-
inforce dominance through exclusion - for example, attempts by associa-
tions of skilled professionals to institutionalize a privileged role through
"credentialism", or by business associations to strengthen the rights of prop-
erty, restrict competition or weaken unions. On the other hand are those or-
ganizations which seek to redress the social balance by weakening the power
of superior social groups and associations and gaining access to the previ-
ously unevenly distributed social goods (Parkin calls this latter process "usur-
pation", a somewhat misleading label). Each specific associational process
of exclusion and inclusion has an "upper" and a "lower" side to it. While
relatively privileged groups use associational means to consolidate their su-
perior position over society at large, they may also be seeking to counter
pressures form above (for example, from powerful political or ecclesiastical
authorities). While organizations of the poor and excluded may in the main
be striving to reduce the power of superior groups and gain a greater share of
social resources, they too may act to exclude or hamper groups in similar or
even more subordinate positions. Organizations such as unions, particularly
those in key industrial sectors, may find themselves playing a Janus role:
fighting against the dominance of business elites while at the same securing
a privileged position in relation to other sectors of the work-force, still more
the unemployed.
Thus each specific national civil society is complex and conflictual. Rather
than providing an institutional panacea for the ills of society, it embodies the
specific pattern of symptoms. We need to bear this reality in mind when ad-
dressing the main theme of this paper - the relationship between civil society,
social exclusion and poverty and, in particular, the potential capacity of civil
society for alleviating poverty by countering the processes of social exclusion
which cause and shape it. The associational agents of civil society can act both
to cause and to counter social exclusion. They can operate both to reinforce the
superior position of dominant groups, or to provide a way forward for
marginalized groups to claim their social rights and improve their social posi-
tion. Given this inherent ambiguity, how credible is a "civil society" strategy -
in the sense of the associational mobilization of excluded and impoverished
groups - in countering subordination and impoverishment? To the extent that
civil associations embody processes of exclusion and inclusion, at the level of
society as a whole, these should be seen in scalar terms - like a staircase or a
multi-cascade waterfall - rather than in terms of a simple dichotomy between
the "included" and the "excluded". As the work on the "under-class" in rich
countries or "marginals" in poor countries has demonstrated, however, pro-
cesses of exclusion may take more dense and multi-dimensional forms which
throw the boundaries between groups into sharp and invidious relief, making a
dichotomous and antagonistic view of the relationship between the "included"
and the "excluded" a palpable and compelling reality. How effective can a
"civil society" strategy be in dealing with these particularly entrenched and
intense forms of exclusion and deprivation?
Civil society as a remedy for poverty and social exclusion?
Put simply, the "civil society" approach to tackling social exclusion and
poverty argues that, by encouraging organization and participation on the part of
the poor (or, in Putnam's (1993) terms, building up their stocks of "social capi-
tal"), one can bring about their empowerment and assert effective claims to their
legitimate social rights. This strategy can lead to an improvement in their condi-
tions, partly because of the benefits for both participants and their clientele pro-
duced by their own collective action and partly as a result of their enhanced
capacity to exert influence on more powerful elements in both state and society.
In practical terms, the key role is attributed to NGOs and other forms of grass-
roots/community organization acting on behalf of the poor and excluded.
This approach has borne fruit across a wide variety of countries and social
contexts and it is not difficult to cite cases of collective mobilization which were
successful in improving the lives of their participants or beneficiaries. The po-
tential importance of collective initiatives is particularly important in situations
where alternative mechanisms for redressing the situation - notably on the part
of the state - are impeded, losing their efficacy (for example, as a consequence
of government expenditure cuts), or simply non-existent. In spite of this positive
potential, however, a certain amount of constructive scepticism is in order. The
"civil society" strategy is as much myth as method. There are very serious limits
on the effectiveness of this kind of participatory empowerment in terms of its
capacity to tackle the entrenched and intractable problems posed by poverty and
exclusion, particularly in their more extreme forms. These limits are of course
set by the very conditions which collective action is designed to remedy. More-
over, an over-emphasis on the virtue and efficacy of civil society may involve
certain opportunity costs in terms of other institutional options forgone (notably
by rationalizing state indifference or non-involvement)which may lessen a soci-
ety's net capacity to tackle poverty and exclusion.
The limits to effective collective action on the part of the poor and ex-
cluded are well known and should not detain us long. Constraints arise from
various sources: where the organisers and participants are the poor and ex-
cluded themselves, there are serious limits to the resources which they can
mobilize independently for their own empowerment; where organizers are out-
siders, there are problems of trust, communication and potential dependence;
86 SOCIAL EXCLUSION AND ANTI-POVERTY POLICV A DEBATE
and collective action based on small-groups and local communities may be

weakened by lack of coordination or isolation. While collective organization
offers a potential increment in power, there are serious difficulties involved in
organizing collective action on the part of people oppressed and atomized by
the everyday struggle for survival. Indeed, there is an associational catch-22
operating among the different groups of civil society: it is those groups which
are already well-endowed with socio-economic resources that find it easier to
form associations and benefit from them (for example, small cliques of rural
moneylenders or landlords combining against much larger numbers of tenant
smaliholders, or business elites in a particular sector uniting against pressure
from unorganized or divided work-forces).
In consequence, there is an inverse relationship between the extent and
intensity of deprivation and subordination and the capacity for effective coun-
ter-action by associational means. In fact, part of that very condition which
collective empowerment is intended to remedy is precisely a weakened capac-
ity for collective action (for example, Moser and Holland's (1995) study of
urban communities in Jamaica shows how their capacity for collective response
is severely weakened by endemic violence). If one sees this in terms of lower
dwindling stocks of social capital on the part of poor communities, there is the
serious problem of what might be called "Putnam's dilemma', i.e. the strong
conclusion emerging from his historical analysis of Italian localities (Putnam,
1993) to the effect that "social capital" - and the benefits accruing from it -
build up over the historical long-term and cannot be conjured up hastily or out
of nowhere. Moreover, in the context of society as a whole, civil association
functions, as we have seen, as a pervasive mechanism of empowerment and
operates on routine, day by day basis as a key element in the process of social
reproduction at all levels. But associational dynamics may be changed as a
consequence of the very strategy mobilizing the poor. The latter does not take
place in a political vacuum and may provoke a forceful and often coercive
response from the powerful, all the more so in those cases where the empower-
ment of the poor is actually proving effective.
Accordingly, if one looks at the basic sources of power in a society and the
extra increment to be achieved by association, one must confront the unassail-
able fact that, both in terms of mobilizable resources and capacity for organiza-
tion, the more privileged groups in society have a structured and potentially cu-
mulative superiority. To put it directly in relation to the core centres of power in
society - the state and the "big battalions" of civil society (business associations,
professional associations, in some cases powerful trade-unions) - this process of
participatory empowerment on the part of the poor and excluded is likely to be a
peripheral phenomenon. While it may help poor communities cope with the con-
sequences of their exclusion, it does very little to offset the basic institutional and
power relations which create their circumstances in the first place.
Indeed, in spite of its appealing redistributive and egalitarian rhetoric,

the ideology of empowerment may implicitly be avoiding these broader
structural issues which any strategy of action must address to be credible.
Indeed, Doyal and Gough argue in their Theory of Human Need (1991:
308) "that in a society of pervasive inequalities and unmet needs, greater
participation can at best act as a fig leaf to cover the powerlessness of the
poor".6 An overly one-sided stress on the efficacy and appropriateness of
civil association as a method of freeing people from poverty not only has
its internal limitations. It may also sin by omission or antagonism because
it runs the risk of sharing and thus reinforcing the currently hegemonic
antipathy to the state embodied in the theory of neo-liberalism and the prac-
tice of liberalization. In so doing, it may serve to downplay the potentially
very significant contribution which state action can achieve in addressing
the needs of poor people. Indeed, much of the current impetus behind the
civil society paradigm lies in the fact that it is a way of compensating for
the reduction in the role and capacity of the state. Concomitant with this
has been an expansion in the social sphere of markets and, though the so-
cial impact of markets may be ambiguous and contradictory, they can in-
crease tendencies towards inequality, insecurity, impoverishment and ex-
clusion in societies while weakening the capacity of the only agency with
the capacity to curb them in any comprehensive way, i.e. the state. And yet,
much of the urgency underlying the civil society strategy is in response to
just such social consequences of overly hasty and ill-considered liberaliz-
ing economic reforms.
What's to be done: Towards a politics of anti-poverty
It is not the intention of this paper to be dismissive of the civil society

approach. It can and does play an important role in improving for the lives of
poor people. The key issue is how to strengthen it, both in terms of its own
dynamics and its relationship with other methods and institutions. In particu-
lar, it is important to consider how to penetrate into the realm of the domi-
nant excluders, identify the key mechanisms of exclusion and devise ways to
deal with the broader structural issues of maldistributed power and resources
which lie beneath. Perhaps we need a modern Machiavelli who can write a
book called The Pauper not The Prince. The key problem is how to tilt the
balance of power in favour of the poor. Without this, conventional policy
6
This is cited in Vivian 1994: 22. One is also reminded of the graffiti allegedly written on a
wall during the events of May 1968 in Paris: "Je participe, tu participes, ii participe, nous
participons, vous participez, us dcident".
88 SOCIAL EXCLUSION AND ANTI -PD VERPI POLICY: A OSEATE
prescriptions about diverting more resources to the poor, making govern-

ments more "accountable" to the poor or "creating an enabling environment"
for the empowerment of the poor, are not likely to mean much or get any-
where, however essential these measure may be.7
The civil society strategy does offer ways forward, particularly if we con-
ceive of it in terms of a more comprehensive mobilization of power to pen-
etrate and reshape the core sources of exclusion in society and increase access
by excluded groups to their social rights. Such a strategy could have the fol-
lowing components.
As currently advocated, through the empowerment of the poor themselves

by means of grass-roots and community organizations. The country case-
studies in the ILLSIUNDP-sponsored project on social exclusion and pov-
erty alleviation in developing and transitional societies (Rodgers, Gore and
Figueiredo, 1995) provide numerous case-studies of the potential benefits
of popular organization, from women fighting for their rights in Tanzania
to villagers opposing land-grabs in Thailand. In a verbal presentation on the
experience of poverty and social exclusion in Thailand to the Policy Forum
on Social Exclusion in New York in May 1996, Pasuk Phongpaichit argued
the need to "equip community organizations to fight modem battles".8 This
implies the need for further creative thought about practical ways to en-
hance the organizational and political capabilities of grass-roots organiza-
tions, for example through simple technological assistance and careful graft-
ing of relevant external expertise.
Strategic and tactical alliances between elements of domestic and global

civil society. This offers substantial benefits for domestic associations
seeking to alleviate poverty, particularly in countries where these organi-
zations have emerged only recently and are still relatively weak. Contem-
porary Cambodia provides a good example of the benefits of such col-
laboration in a society where previous forms of civil society have been
destroyed or severely weakened by previous regimes, and new forms of
association lack resources and are vulnerable to a still powerful and au-
thoritarian state. The dangers of these liaisons are apparent (notably the
threat of dependence) and considerable thought is being given by both sides
to ways to minimize them, at least in the longer run.
The issue of how to make governments accountable to the needs of the poor is taken up by
Goetz and O'Brien (1995) in their discussion of the lack of complementarity between the World
Bank's policy agendas of poverty alleviation on the one hand and governance on the other.
8
This draws on her study with Piriyarangsanan and Treerat (1996) on patterns of social
exclusion in Thailand.
Strategic and tactical alliances between different segments of civil soci-

ety, including the possibility for cooperation between associations in more
and less privileged sectors which goes beyond traditional tripartism to
include a wide range of associations within a specific territory. In this
regard, the experience of coordinated partnership by a range of civil or-
ganizations operating at the local/regional level in both Western Europe
and the South may be instructive and merit further investigation in search
of the elements of organizational "best practice".9
Alliances of groups in civil society organized in given political expres-

sion by political parties in which the interests of the poor can be incorpo-
rated into a wider coalition of forces capable of changing the national or
regionalllocal balance of power in their favour by taking over and using
the state. Indian states such as Kerala and West Bengal provide some
evidence of the potential benefits of this form of political integration. The
strategy of corporatist alliance, sponsored by the African National Con-
gress in South Africa, is attempting a similar strategy)
The organization of more effective and complementary patterns of co-

operative action between state institutions and civil association, in the
emerging realization that both are necessary to counter poverty, par-
ticularly entrenched forms of it. While there is a need to transcend any
simple, antagonistic view of the relationship between state and civil
society, any effort to organize more productive forms of cooperative
action requires changes in administrative institutions and official be-
haviour as well as appropriate policies. If any substance is to be put into
vapid slogans such as "government involving people" or "partnerships
between state and community", there is considerable scope for devising
and testing concrete ways by which the institutions of state and civil
society can be coordinated in ways which maximize synergy - for ex-
ample, by means of reforms to improve the organizational flexibility,
responsiveness and accountability of public institutions. The successful
Latin American experience documented by Tendler and Freedheim
(1994) and the comparative experience analysed by Evans (1996) offer
recent examples of best practice which could be helpful elsewhere.
While most of these ideas seem self-evident, it should be emphasized that

now is an unprecedently auspicious time for their realization. Over the past dec-
Fox, for example, provides a useful case-study of the role of domestic alliances in
"thickening" civil society in Mexico.
relevant studies of the Kerala experience, for example, see Sen (1992) and Heller (1996).
ade, much of the world's population has witnessed massive political changes, in
particular a vast wave of democratization which has swept across the erstwhile
Second and Third Worlds. As the table below shows, the share of the world's
population living in countries with some form of liberal democratic political
system has increased of late and even in societies which maintain authoritarian
regimes (notably China and Viet Nam), the balance of power between state and
society is gradually shifting in the latter's favour.
This opens up increasing space for the operation of civil society and com-
peting political forces, creates a different set of parameters and pressures on
state action and offers new opportunities for a politics of combating poverty
and exclusion rooted in popular mobilization." Civil society is expanding, its
influence is growing and in many societies the opportunity for realizing the
rights inherent in political and social citizenship is becoming a possibility for
the first time.
The "third wave" of democratization
Political category States Population

Number Percentage Number Percentage
(in millions)
Total 173 100 5450 100

Successful 66 38.1 2260 41.5
Attempting 55 31.8 1 000 18.3
Resisting 52 30.1 2 190 40.2
Industrial or transitional 49 28.3 1210 22.2
of which:
established 27 15.6 860 15.8
attempting 22 12.7 350 6.4
Developing countries 124 71.7 4 240 77.8

of which:
successful 39 22.5 400 25.7
resisting 52 30.1 2 190 40.2
attempting 33 19.1 650 11.9
Source: Compiled from calculations made by Whitehead (1994) based on 1966 data.
"For case-studies of this process in two contrasting societies with previously authoritarian
regimes, see White, 1995.
SELECTeD PEESENTATIONS 91
References
Doyal, L. and Gough, I. 1991. A theory of human need. New York. Guilford Press.
Evans, P. 1996. "Government action, social capital and development: Reviewing the evidence
on synergy", World Development, Vol. 24, No. 6 (June), pp. 1119-1132.
Fox, 3. 1996. "How does civil society thicken? The political construction of social capital in
rural Mexico", World Development, Vol. 24. No. 6 (June), pp. 1089-1104.
Goetz, AM. and O'Brien, D. 1995. "Governing for the Common Wealth? The World Bank's
approach to poverty and governance", IDS Bulletin, Vol. 26, No. 2 (April), pp. 17-26.
Heller, P. 1996, "Social capital as a product of class mobilization and state intervention: Indus-
trial workers in Kerala, India", World Development, Vol.24, No.6 (June), pp. 1055-1071.
Luckham, R. and White, G. eds. 1996. Democratization in the South: The jagged wave,
Manchester University Press, Manchester.
Moser, C. and Holland, J. 1995. "A participatory study on urban poverty and violence in Ja-
maica: Summary findings", mimeo, Urban Development Division, World Bank, Wash-
ington D.C. (December).
Parkin, F. 1979. Marxism and class theory: A bourgeois critique, Tavistock, London.
Phongpaichit, P.; Piriyarangsanan, S. and Treerat, N. 1995. "Patterns and processes of social ex-
clusion in Thailand", in Rodgers et al., eds. op. cit., pp. 147-160.
Putnam, R.D.; Leonardi, R. and Nanetti, R.Y. 1993. Making democracy work: Civil traditions in
modern Italy. Princeton University Press. Princeton N.J.
Rodgers, G.; Gore, C. and Figueiredo, J. (eds.). 1995. Social exclusion: Rhetoric, reality, responses.
Geneva, International Institute for Labour Studies, lLO.
Sen, G. 1992. "Social needs and public accountability: The case of Kerala", in Wuyts M.;
MacKintosh, M. and Hewitt, T., (eds.). Development policy and public action. Oxford
University Press, pp. 253-278.
Tendler, J. and Freedheim, 5. 1994. "Trust in a rent-seeking world: Health and government
transformed in northeast Brazil", World Development, Vol. 22, No. 12 (December),
pp. 1771-1792.
Vivian, J. 1994. "Social safety nets and adjustment in developing countries". Geneva. UNRISD
Occasional Paper. No. 1.
White, G. 1994. "Civil society and democratization I: Clearing the analytical ground", Democ-
ratization, Vol. I, No. 3, pp. 375-390.
White, G. 1994. "Civil society and democratization II: Two case-studies", Democratization,
Vol. II, No. 2, pp. 56-84.
Whitehead, L. 1996. "Concerning international support for "democracy in the South", in Luckham,
R. and White, G., (eds.). Democratization in the South: The jagged wave. Manchester
University Press, Manchester.
Social actors' perspectives

Globalization and the new social question
by L. Emmerij (IADB, Washington)
The paradoxes of globalization
The past 15 years have seen a considerable policy change towards extremes
that many of us thought were defmitely behind us. The emphasis is again on growth
rather than on the redistribution from growth; on free trade, whatever the robustness
of the national economy; on the market, whatever distortions in the economy and in
the society may follow; on global markets, whatever the societal implications; on
privatization of firms, whatever their importance for the strength of the nation.
It can be objected that in the 1970s there was too much emphasis on
redistribution, protectionism, the State, on nationalized and para-statal enter-
prises. Although this is a matter for debate, it is hardly an effective policy to
move from one extreme to the other. It follows that a proper balance is of the
essence. In everything we undertake a judicious mixture must be found com-
bining the best of the "old" and "new" policy ideas; of "hard" and "soft" is-
sues; of international and national policies; of public and private sectors, etc.
Reviewing the world economic and social scene of the mid 1 990s, four
major policy issues stand out: (i) Globalization and its effects on the nation-
state, with particular reference to the social sectors: beyond the dichotomy of
the free market and the welfare state; (ii) employment creation and productiv-
ity increases: beyond the dichotomy of growth and redistribution; (iii) global
markets and global governance: beyond the dichotomy of private versus pub-
lie power; and (iv) the paradox of competition.
The paradox of globalization: Global wealth and national poverty
Globalization is a private sector phenomenon. Global enterprises under-

take their multifarious activities in those geographical locations where it is
most cost-effective to do so. This also applies to the payment of taxes. All this
because globalization sharpens competitiveness which in turn requires ever
greater efficiency and cost-effectiveness on the part of individual enterprises.
The possibility of producing bits and pieces of the final product anywhere; the
successful attempts to minimize the payment of taxes; and the increasingly
footloose characteristics of production units, are among the reasons why na-
tional governments are becoming relatively impoverished.
But there are other problems related to globalization that are mounting
and intensifying, such as unemployment and underemployment, narco-traffic
and the use of drugs, crime and political and economic refugees. All of these
problems also take on global characteristics: the employment problem has be-
come worldwide, narco-traffic has become itself a global enterprise, refugees
are covering ever larger distances, etc.
Questions that arise in this context and that need urgent further examina-
tion are:
(i) What are the exact relationships between the rise of globalization and the
rise and intensification of unemployment, drug use, crime, etc.? There is
no doubt that these relationships are real and there is a growing body of
literature spelling this out.'2
What are the costs and benefits of globalization in the economic and financial
spheres? How can the benefits be maximized and the costs minimized? If the
relationship between economic and financial globalization on the one hand and
increased social problems on the other is real, should one not think of imposing
special taxes on global economic and financial activities in order for the nation-
state to be better armed to tackle the social issues? An example here is the so-
called Tobin tax, named after the Nobel-prizewinning economist James Tobin.'3
(iii) Considerations such as those above raise all the important issues of today, namely
the relationship between state and market; between free trade and protection;
emphasis to be given to economic versus social considerations; the relationship
between international, regional and national activities and policies.
The paradox of globalization illustrates how much an active private sector

at world level has put a passive and impoverished nation-state on the defensive.
The paradox of technological progress: A curse and a blessing
It is under this topic that the issues of employment and unemployment

arise. The blessing of technological progress is, of course, that it enables
people to produce more with less effort. It is amazing to observe once again
how this blessing has been turned into a curse through the lack of insight and
organizational skills of human beings.
In the case of industrial countries, the problem is that economic and tech-
nological changes have not been accompanied by societal changes. Labour
12
For an excellent summary, see UNRISD: States of disarray: The social effects of
globalization, Geneva, 1995.
' See the UNDP Human Development Report 1995, Oxford University Press.
94 SOCIAL EXCLUSION AND ANTI -PD VETV POLICY: A DEBATE
markets, educational systems, pension schemes, etc., continue to be organized

and structured in the same way as decades ago. They have not kept pace with
the new economy that has seen the light of day during this period. This has
given rise to the curse of high levels of open and hidden unemployment in
industrial countries in general, and in Europe in particular. The blessing has
been turned into a curse. We are indeed producing more with less effort and
fewer hours, but these gains are distributed in a terribly wrong fashion. We are
faced with a new distribution problem, namely how to distribute the "less work"
and "fewer hours" in a rational fashion that avoids pushing 25 to 30 per cent of
the population into the margins of the economy and the society.
Full-employment-old-style is no longer attainable and is not even desir-
able. We have to move toward a full-employment-new-style, based on a differ-
ent societal structure in which people can move in and out of school, of work
and of (creative) leave in a recurrent fashion rather than a sequential one. This
will lead to qualitative changes in the economy and in society and to a different
form of full employment which can be combined with a more creative life.
As long as the employment problem in industrial countries is not solved,
the corresponding governments will remain on the defensive with respect to
East and South. Solving the employment problem in the West is therefore of
crucial importance for developing countries and for countries in transition.
The problem in developing countries is not different in essence but needs
a different policy treatment because of the degree in which the problem presents
itself. The emphasis in these countries must be much more on identifying the
right mixture of high-tech production processes in the export sectors on the
one hand, and equally high-tech but more labour-intensive technologies in the
domestic sectors, on the other. The main issue here is not (yet) to redistribute
the available work in a more intelligent and creative fashion but to create addi-
tional employment opportunities and to increase the productivity of those who
are already employed but at low levels of productivity and of income.
Global markets and global governance
As mentioned earlier, globalization is basically private sector driven.

Regionalization on the other hand is state driven. As usual, the public sector is
one lap behind the private sector.
One can observe a growing imbalance between the private and the public
sector at the national and regional levels. This imbalance becomes a gap when
viewed from the global level. Just as there must be a balance between the state
and the private sector at the national and regional levels, so must there be a
balance at the global level. At present there is no equivalent of the state at the
global level. Even worse, at the very moment such an equivalent is needed
SELEcTED PRESENTATIONS 95
most. The weak institutions we do have - like the United Nations and the Bretton
Woods institutions are coming under increasingly severe attack. This is, need-
less to say, typical in the political and ideological situation that has emerged
during the past 15 years.
What is needed here is a very sensitive and subtle approach, because it is
easy to go overboard and to come up with utterly unrealistic proposals. Basi-
cally, we are concerned here with putting new flesh and blood on the existing
institutions at the global and regional levels, in order to make them relevant
and effective to face the new situation of global markets, global enterprises, in
short, of global private power.
The paradox of competition
Globalization tends to push competition to an extreme intensity worldwide.

Nobody will deny that competition to an extent is positive. A healthy competi-
tion - at school, at work, in research, as well as in the economy - helps a society
or an individual to progress and to remain innovative. The origin of the verb "to
compete" is "cumpetere" which means searching together. What a far cry com-
pared to what competition has become in the global era. Competition has be-
come an arm to wipe out the adversary. It has become an ideology, an impera-
tive, and some even speak of the gospel of competition.'4 Competition has be-
come an answer to everything. Is there an increasing unemployment problem?
You must become more competitive. Is there a growing poverty problem in cer-
tain countries? You must become more competitive. Education and training must
be geared more and more to the gospel of competition. The discussion is remi-
niscent of the proposals concerning a "flat tax" in the United States during the
Presidential Campaign of 1996. Here also we have a case where a proposal is
supposed to remedy every ill in society.
Competition is thus in the process of becoming the only solution to the
problem of globalization. The result is that our societies are ever more engaged
in an economic battle without mercy. Reports abound with such titles as "Win-
ning in a World Economy", and the cult of competition even has its own "sci-
entific" instrument, namely the World Competitiveness Index, published every
year by the World Economic Forum. This index plays the same role as the ATP
in classifying professional tennis players.
Competitiveness pushed to such an extreme has undesirable effects, such
as distortions in national economies, as well as negative social repercussions
like growing unemployment, downward pressure on salaries and income, and
hence growing inequalities. For instance, in the United States of America it has
'
See the Group of Lisbon: The limits to competition, NIT University Press, 1996.
96 SOCIAL EXCLUSION AND ANTI-PD VERIY poLiCy: A DEBATE
been shown that between 1973 and 1993, 50 per cent of the labour force has
seen its income decrease in real terms.
Such an extreme system is bound to flounder. Indeed, extreme competition
diminishes the degree of diversity existing in a society and contributes to social
exclusion. Individuals, enterprises, cities and nations that are not competitive are
being marginalized and eliminated from the race. This is unacceptable morally and
inefficient economically. The more a system loses its variety, the more it will lose
its capacity to renew itself. But above all, the ideology of competition devalues
cooperation, searching together; it wipes out solidarity and it is, therefore, not sur-
prising that this era is also witnessing heavy attacks on the welfare state.
The question could reasonably be asked, whether the fmal winner in this com-
petition will do all by himself. Howevei; the most important weakness of this compe-
tition fundamentalism is that it is incapable of reconciling social justice, economic
efficiency, environmental sustainability, political democracy and cultural diversity.
What we have tried in this first part of the presentation is to show that
current trends in globalization and competitiveness are intensifying social prob-
lems, like unemployment, downward pressure on income levels of parts of the
population and skewed income distributions. These problems are becoming
themselves globalized as are the growing issues of narco-trafficking, crime
and urban problems in general.
These intensified social problems - intensified that is by the private-sector-
driven global financial and goods markets - are left on the plate of nation States
that meet growing problems of public finance and hence are cutting their welfare
systems at the very moment these are needed most. There exists now a growing
imbalance between the power of the free markets and the influence and weight
of the State. Nowhere is this more visible than in the social arena and in the
absence of the equivalence of the State at the global level.
All this combined starts to mean a reversal in the conquests on the social
and welfare fronts that industrial countries had achieved during the decades
after the Second World War. There is no end in sight of this reversal. It has
been going on now for 15 years and it may well continue for another 15. If this
were to happen we would be gradually slipping back into the nineteenth cen-
tury circumstances. We would witness increased global wealth in the midst of
growing national and individual poverty.
But well before these events would have followed their course, more or less
violent reactions are bound to occur on the part of actors in civil society. How can
this be avoided? It is the contention of this presentation that one of the conditions
is a drastic societal restructuring consistent with the economic and technological
changes that are taking place. This will be illustrated by looking at the employment
problem that has now been with us in Europe for 20 years. But before we tackle
this crucial issue in part 3, we turn to the role and effect of education on economic
and societal structures as well as on individual life chances. This is necessary be-
cause there exists a trend worldwide to give an exaggerated weight to the independ-
ent effect of education on these structures and these life chances. Education is impor-
tant, but only in combination with a host of policy actions in complementary fields.
The new social question
The new social question is the intensification and broadening of existing

social problems and the creation of new ones, which remain the responsibility of
nation States that are in their turn impoverished. We can go through the list quickly.
In the European Union, I have already mentioned, we have had high rates of
unemployment for 20 years. Every successive government promises that full
employment is around the corner. There is nothing around the corner. In the
United States of America, over the last 20 years, reliable statistics have shown
that more than 50 per cent of the existing labour force have seen their income
decline in real terms. It is as if Karl Marx has come to life again. Eastern Europe,
as we heard from the presentation of Andrea Cornia, is as chaotic as is Latin
America, as we have heard from Oscar Altimir. The indicators of success in
Latin America and in many other regions are all abstract indicators. They talk
about inflation, exchange rates, rates of interest. But if you look at the indicators
that reflect the real life of people in Latin America: unemployment, underem-
ployment, income distribution, incomes of individuals etc., except for a couple
of million people in a total of 500 million, they are all worsening.
Then we have the urban problem. To my mind one of the key factors in
the new social question is the urban question - it is a global phenomenon.
Cities are becoming "divided against themselves"5 and this is happening glo-
bally with the cities. We heard yesterday, I do not know whether it was here or
in the Social Commission, from our colleague from Thailand. High rates of
economic growth in Thailand, including in Bangkok, have created a mess in
that city. In my own native city, Rotterdam, the biggest port in the world, there
is 25 per cent open unemployment and 50 per cent of the people are
marginalized. It is a poor city in a rich city and in a rich country.
I have not mentioned, for lack of time of course, education and health.
What can be done?
Two examples. First, employment in Europe. I have been pleading for a long
time that we should give up the notion of full employment as we now define it:
' This is a biblical expression from Matthew 12.25: "A city or a household divided against
itself cannot stand".
98 SOCIAL EXCLUSION AND ANTI-pOVERTY POLICY: A DEBATE
people working eight hours a day, five days a week, 48 weeks a year, 45 years over
their lifetime. We have a new distribution problem. In the OECD countries, the
distribution problem is defined as the distribution of existing jobs among more
people. I am not necessarily in favour of the existing ways to redistribute jobs. To
put it very briefly - we can discuss this here if there is time now or later - I am in
favour of giving people the opportunity to withdraw from the labour force for
longer periods of time to do things for which they are motivated, and which makes
them stronger to re-enter the labour force later. Motivation comes at very different
periods in people's lives, and not necessarily during the period when they go to
school. Once you have left school, it is very difficult to come back and so I think
we should do away with the sequential period - school-labour-retirement - and we
should have recurrent education, recurrent employment and indeed retirement "a
la carte". Why do I have to wait, old man as I have become, till I am 62 or 65 to
retire? Why can I not take two years of retirement when I am 40, and take the
consequences later? I know it is too big an idea for you to absorb immediately, but
think about it and I can send to you things in writing for those of you who are
interested in this idea for the industrial countries.
The second example is poverty in Latin America. Poverty there will
only be reduced if the correct instruments are used, i.e. employment creation
for those who have no work, productivity increases for those who work but
in low productivity and low income sectors - as mentioned by Oscar Altimir
- and third, redistributive measures through fiscal policies, for instance, where
that is possible together with the idea of social security that Oscar Altimir
smuggled in at the very end of his expos. I would concentrate on the first
two rather than on the third. The problem is that we do not hear very much
about employment and productivity policies, not only in Latin America but
in general.
Implementation
If you accept that globalization has intensified existing social problems

and is adding new ones, and if you accept that this is the New Social Question,
certainly we should look for a means, also at the global level, to help fight this
social question. The Overseas Development Institute has brought out a very
concise statement which presents the 20-odd measures that have been pro-
duced and have been thought out for international collection of funds. The
Tobin proposal? This is of course the most researched since 1974 and the best
known. And I think, and I am happy that the UNDP in its human development
reports has come back to that, we must insist on this. Of course nothing has
been gained by the fact that when the Secretary-General of this poor organiza-
tion mumbled something about "How could we get some additional money by
adding a little bit to air tickets" bloody hell broke loose at Capitol Hill, and if
bloody hell breaks loose at Capitol Hill, it is really bloody hell.
If I may end on a pessimistic note, in the short term, it will be extremely
difficult even to discuss well-researched proposals like Tobin's seriously. It has
been researched for more than 20 years. But I think we shouldfrapper toujours,
we should not give up. I think we should advise our friends from different or-
ganizations, WIDER for instance, which has a certain independence, to continue
to look into the feasibility of collecting additional funds at the global level.
Poverty, social exclusion and civil society

by Luis A. Anderson (ICFTU-ORIT, Caracas)
Deceptive outcomes from past social interventions
Poverty has been in the past decades a main issue in public discussions in the
Latin American region, mainly due to the implementation of poverty eradication
programmes developed by multilateral agencies aimed at compensating for the
negative effects of stabilization plans. Nevertheless, poverty eradication programmes
meant as well a major shift in the way social policy was conceived in the region.
From the sixties to the eighties the implementation of social policy was a core task
of the State and of public agencies that provided public goods and were responsi-
ble for redistributing incomes at the macro-level. These were the decades in which
public services such as education, health and nourishment both expanded and in-
creased on an overall basis, but income distribution worsened or remained stag-
nant. High levels of employment were attained through economic growth and pro-
duction transformation. As stated, social policies were implemented through the
adoption and application of social budgets which began to decline, from a cost-
behefit point of view, long before the stabilization programmes with their new
approach to social policy emerged. This meant that each dollar invested in public
goods was less and less efficient in terms of the expected outcome. A rapid urbani-
zation process built up a strong middle class but income and rent were polarized
between rich and poor. When economic instability appeared due to the debt crisis
in the mid-eighties, the traditional social approach was overcome by inefficiency
and the income and rent polarization process.
One of the most striking consequences of stabilization programmes in the
region has been the expansion of poverty and a deterioration of the income dis-
tribution situation resulting in a widening of the gap between the rich and the
poor. Focused social programmes were granted by multilateral agencies in order
to reduce or eradicate poverty. These programs were not managed by the State
and were decentralized. NGOs took over the central responsibility using a project
and choices approach, meaning programmes which were "tailored" to people's

needs and in which cost-benefit considerations were included. Moreover, most
of these programmes were financed and evaluated by local or regional agencies
favouring decentralization. The main assumption was that the State is inefficient
administering social policy, that the prevailing universally or generalized public
services provision was good for the middle class but bad for the poor, and that
decentralization and civil society management allowed for individual freedom
and a market oriented distribution. Little, if any, attention was given to distribu-
tion decisions and to market failures, mainly in the labour market, that to some
extent were producing social exclusion, let alone impoverishment. From this
point of view distribution is a result of efficient allocation of resources and not an
explicit tool of policy.
Have these focused programmes helped alleviate or eradibate poverty? We
believe that they were incidental in providing and establishing safety nets for groups
affected by extreme poverty and promoted some civil society institutions in their
efforts to participate in public life. But the overall results are clearly deceptive. The
progression and extension of the informal sector in the region (one out of two are
employed in the informal sector) shows the extent of this project-oriented approach
to social policy. It is true, as some have argued recently, that income grows more
rapidly in the informal sector as compared with the formal sector. Poverty is not
only a question of income. It also concerns the capacity to participate fully in
citizenship and to develop human values. Similarly, as trade unions have been
stressing in the past years, employment is a prerequisite for the eradication of pov-
erty and the promotion of equality, but does not guarantee that individuals will
enjoy full citizenship rights and assume public responsibility.
The main features and challenges of a new approach
It is worth noting that the new approach to social policy in the region under-
lines the importance of the company or firm decision in the economy. Certainly
decisions regarding resource allocation and prices are taken at the firm level affect-
ing in any given society or country the income distribution situation. In addition
the firm is one of the central places for participation in the decision-making proc-
ess. For this to occur trade unions have been traditionally developed, strengthened
and supported within a protective legal system. This system in the past has shown
its limits whenever the State has used it (or abused it) to intervene and interfere in
labour relations. The new social approach substitutes the protective system for a
flexible one, based on individual rights, that undermines collective bargaining and
weakens the traditional participation in decision-making at the firm level. This of
course has consequences from the efficiency point of view as well as for income
distribution purposes.
New problems arise from this situation. How to promote participation at

the firm level without a legal framework supportive of trade unions, and that to
a certain extent establishes a relative equilibrium between firms and trade
unions? Is there a need for new roles of the tripartite actors or a need to expand
the scope of tripartism? How to enhance a human capital approach while la-
bour relations deteriorate and a distribution clash arises as workers' income
deteriorates? An interaction between firm-level decisions and macro-level de-
cisions seems to be needed to arrange for renewed participation mechanisms
and a value added approach or human capital approach to allocation of re-
sources. Up to the present, at least theoretically, incentive mechanisms have
been proposed and to a lesser extent implemented. Yet the underlying labour
relations are collaborative and not cooperative and the incentives for techno-
logical and information diffusion at the micro- or firm-level have to be strength-
ened along with incentives at the macro-level. The compounded results will be
low labour costs, a deterioration of labour standards as defined by the ILO, and
low human development indexes affecting society as a whole.
Labour relations have to be rebuilt in order to cope with globalization
imperatives. In fact they have been reshaped in the past decades in a non-
cooperative way. The results, at least for the Latin American region, are:
deprivation, poverty, income distribution downgrading and social unrest. The
new social approach, while greatly contributing to this situation, has neverthe-
less shown the limits of the traditional approach. But the lack of a comprehen-
sive or global approach to poverty and income distribution problems has resulted
in a growing process of social disintegration and the generalization of non-
participatory processes.
States in Latin America have undergone changes and are not the same nowa-
days, for better and for worse. But a new structure and objectives have not emerged.
Their institutional role as regulators and evaluators in the social arena have not
developed, leaving not to the market forces but to chaos the problems of human
development. Social actors, as independent and autonomous forces, demand a
restructuring of the States and governments, asking them to create an environ-
ment that will promote and foster human development. If they fail to do so,
social unrest and chaos could ensue, but surely the path to both social and eco-
nomic development will be a slow and complex road.
Social exclusion, democracy and modernization

by Amit Mitra (Federation of Indian Chambers of Commerce, New Delhi)
I speak in trepidation because I seem to be the only one from industry in

this meeting. I hope my submissions will provoke enough dissention and
confusion and will have a constructive ending. I would first like to take up an
102 SOCIAL EXCLUSION AND ANTI -P0 VEFIIY poLicy: A DEBATE
issue that does not relate directly to chambers of commerce and then I will
revert back to the chambers of commerce issues, the business issues as busi-
ness sees them, with due modification from my own personal perspective.
Traditional and new forms of exclusion
The first issue I would like to take up is traditional forms of exclusion.

Something that in two days I have not heard people discuss too much. Allow
me to confess that I am informed by the Indian experience which does not
necessarily overlap with the experiences of others.
There is a fascinating process at work in India today which is of rel-
evance to the question of exclusion. That fascinating process militates
around democracy. As you know, those who were excluded not from the
traditional structures but from the growing modern structure came from
lower castes. They began to take advantage of pluralistic electoral democ-
racy. It took them 2O years to do so, but it began to gather momentum. In
the state of Bihar, the most backward state of India, the backward castes
combined and came to power. In other words there is a very special pro-
cess taking place through which the backward castes have captured politi-
cal power, not in one state but in two, in northern India, using pluralistic
democratic institutions.
What has happened is that three backward castes combined to come to
power but two broke with the third and in the last elections the two separated
themselves and joined the upper caste because they felt that the one backward
caste, their partner, had not delivered. In other words, a very fascinating inclu-
sion process is at work through the modern pluralistic democratic process. In
Thailand, on the other hand, the democratic process is not strong enough to
include the once excluded. So my first submission is: You must strengthen the
electoral democratic process.
Articulation of self-interest of smaller groups begins to almost use game
theory methods of collating with each other, breaking with each other and build-
ing civil societies. However, there is a problem with this. The problem is that
when you do this politically and come to power without a human capital base,
then you have a major problem. The Chief Minister of Bihar, the backward
caste leader, will have great difficulty in getting the backward caste population
into the mainstream of industrial society because they do not have the required
human capital. So, on the one hand, there is something very positive happen-
ing, yet on the other hand, there is also a very major problem brewing. I be-
lieve there is a very serious challenge on this matter in many developing coun-
tries which have electoral democracy. The solution is training, particularly
vocational training, and mechanisms to increase productivity and build social
capital. There has been extra market activity on this matter as those people
moving forward in political terms need to be targeted. You will be happy to
know that our Chamber is involved in research and activity in this sphere.
So my first submission is that traditional ways of exclusion also have to be
looked at and carefully studied, but empowerment through human capital is going
to be the key to finally integrating even those who politically move forward.
Exclusion and the process of modernization
Let me back off and ask myself a second question: What happens to those
on the other side, in an environment which is modernizing, liberalizing and
globalizing. Here I must first take a positive position and then I will qualify it.
Let me divide the economy into the formal and the informal sector. First,
what is exactly happening in the formal sector? The formal sector has begun
at a much higher level and is unable to absorb/recruit workers from the
bottom of society, workers who were earlier in the informal sector. We have
been trying to look at these data and we find that this may be true. In fact, if
you go to Delhi, you will find that 75 per cent of the people in a slum have air
coolers. My submission is that many people in such slums do not work in the
informal sector, they work in the formal sector, in factories that have emerged
in the last five years and many of them are export-related factories. How-
ever, the real problem boils down finally to vocational training.
As I have indicated at the beginning of my intervention, there are over
6,000 schools in India which are supposed to offer vocational education at 11th
and 12th grade and they do not. In fact, there is no self-worth to doing vocational
training in the school. Self-worth lies in choosing science or arts. If you do
vocational education you must be third-rate. There are 2,000 industrial training
institutes which have no connection to the industry or commercial activity. We
have done a complete study. We have submitted it to the Government showing
that there is no real connection. Jobs are still found through social networks and
not through the capacity of what people have learned on the shop-floor.
The problem is that those who are joining the formal sector as a result of
liberalization and globalization, are going to stagnate because they are joining
from the bottom of the mill without vocational training. The solution, as I sug-
gested earlier, is to have, together with very strong democratic institutions, joint
projects on vocational training between the state, the private sector and multilat-
eral agencies. In fact, we have got such a project from a multilateral agency on
vocational education. We simply connect the skills to the commercial process.
Next is the informal sector. This sector is no doubt a bridge between the
excluded and the growing part of the economy. I must confess that five years
of liberalization have tremendously stimulated the informal sector of India.
104 SOCIAL EXCLUSION ANO ANTI-POVERTY POLICY. A DESATE
We have done some micro-level research on this through our Chamber which
has a labour force support of 10 million people, has 120,000 business units -
so we are able to collect suitable micro-data. We find that the informal sector
connections, particularly towards ancillarization and vendorization, have gone
up significantly because of the stimuli of growth which, in concentric circles,
starts moving outwards.
The number one problem of the informal sector is the establishment of
property rights. The number two problem is access to credit.
Summing up
I have therefore two submissions to make. One is that democracy must be

strengthened immensely to include the excluded. Here I don't mean democracy
for the sake of democracy but a process which through its own dynamics can
include those who would otherwise be excluded. We would be delighted to do
case studies on this issue. But the problem lies with the sustainability of democ-
racy since bottlenecks in terms of human capital formation are bound to appear
in the future. Such capital is not there among those excluded people of yester-
day, who are included today and would become dysfunctional in the market
place of tomorrow. The second submission is on the formal and informal sec-
tors. I think there is scope in a very modest manner to put a tripartite process to
work - government, multilateral agencies and private business - in order to em-
power those who could fall through the cracks tomorrow.
Policy implications of a social exclusion approach:

An overview
by A. Grinspun (UNDP, New York)
Identifying excluded groups
We are being asked to present our thoughts on the topic of policy implica-
tions of a social exclusion approach and to do this in only six minutes. I believe
there are basically two ways of considering social exclusion. One is to think of
certain individuals or categories of individuals who are excluded from some-
thing or from somewhere. In this view there are those who are included and
those who are excluded, the insiders and the outsiders. Presumably the many
forms of social disadvantage which affect them stem precisely from the fact of
their exclusion, and therefore benefits could be derived from their incorporation
into the larger system. Now, leaving aside some of the problems that Professor
Oyen raised yesterday in terms of thinking of inclusion-exclusion as poiar terms,

I would submit that this way of thinking of social exclusion has many prob-
lems in developing-country settings.
We can think of a great many communities or categories of people who
did not know that they were poor until they were so defined, or did not be-
come excluded until they were incorporated into a larger system. It is not
that they were excluded because they could not access this larger system or
dropped out of the system, but rather it is the very same forces that incorpo-
rate them which have placed them in a dependent, subordinate or vulnerable
position. They often do so undermining the support mechanisms, and with
strategies and means of adaptation developed over generations. We all know
that modernization and change can bring a lot of disruption and increase
vulnerability. The erosion of the social security systems in agrarian societies
is a vivid example of this. So the first policy prescription is not to assume
that inclusion is always a benign process or outcome. It may not be. We need
to recognize and respect the local diversity, traditional coping mechanisms,
values and practices, to avoid blanket top-down solutions, and to support
and strengthen the strategies developed by the communities themselves in
their search for a sustainable livelihood.
Overcoming exclusion
Second point. Once excluded groups have been identified, what can be
done to help them? This very elusive question in an era of increasing globali-
zation, mounting fiscal constraints and state retreat was discussed in these past
days. On the one hand, governments are being forced to cut down expenses
and to refrain from active intervention in key factor markets, in setting ex-
change rates, prices, etc. On the other hand, there are a number of political and
economic considerations that must be taken into account. Any attempt at mas-
sive redistribution of assets is likely to lead the euphemistically called "non-
poor" to resort to capital flight and other means of voting with their feet. Part
of the conventional wisdom nowadays is that, faced with budget constraints,
governments need to adopt targeting as a means of reaching the poor and ex-
cluded groups, and this is something that Charles Gore (IILS/ILO) just men-
tioned when referring to safety nets. No one could question the need for intro-
ducing greater efficiency in social service delivery, and more effective ap-
proaches for reaching the poor. Some form of positive discrimination and af-
firmative action may be justified to assert some group rights.
I would submit that targeting as a principle has its problems. For one
thing, a universal concept of social citizenship is replaced by a concept of need
as the basis for qualifying for social services. Free universal access to services
106 SOCIAL EXCLUSION ANO ANTI-POVER7Y POLICY: A OEBATE
is replaced, for example, by means testing and in the process, social expendi-
ture becomes a gift rather than a right. To qualify for government services it is
not enough for someone to be a member of the community. The person needs
to bear the trappings of her poverty so that everyone may notice. This may
easily reinforce a sense of stigma and dependence in excluded groups, there-
fore setting them further apart from the rest of society. As Peter Fundergeist
noted, gifts empower the givers who can withdraw the gift as they wish and
pose conditions on the receiver; rights empower the receiver by shifting the
obligation to the giver. The current attempt to shift the discourse on welfare
from welfare rights to welfare gifts is in my view very relevant to our discus-
sions of the past two days.
Policy prescriptions
It is first important to avoid a symptomatic approach to poverty and social

exclusion issues. This, which has been the standard way of dealing with poverty,
is probably a reflection of the tendency to treat poverty as an illness, even though
it is not an exclusive monopoly of social sector ministries, as the economists'
concern with inflation shows. What does a symptomatic approach to poverty
entail? People are underfed: a targeted feeding programme is put in place; mi-
cro-entrepreneurs do not have access to credit: small grants or micro-loans are
made available to fill that gap; people do not have jobs: a temporary employ-
ment programme is put together. These are mean palliatives. While we should
not wait until the fever kills the patients to take some action, we should not divert
our attention from attacking the structural causes that have placed them at risk.
First, remove discriminatory practices based on gender, race, ethnicity or
any other form of discrimination. Second, a major redistribution of basic assets.
Third, education skills, development and training. Fourth, nurturing a sense of
self-worth, self-esteem and self-reliance among the excluded and the vulnerable
groups, as opposed to stigm and dependence. Fifth, and critically important,
though largely neglected in our discussions of these days, build institutions for
development and improved governance to give people space to organize
themselves, get their demands represented in the political arena and support
for their claims for change
Social exclusion, macro- and global developments
Very briefly, my fourth and final point refers to macroeconomic policies

and the functioning of the international economic system. We need to revisit
structural adjustment packages and bundle them, making them more conducive
to including rather than marginalizing people. After 15 years of adjustment, the

record in terms of poverty reduction is deceptive in many countries, if not most.
Second, it is difficult to implement inclusionary policies in countries or regions
that are themselves excluded or marginalized from the rest of the world. This
calls for greater attention being paid to the debt problem, to the current trade
regime and especially to the consequences of the Uruguay Round, the WTO and
to the widening technological gaps between countries and regions.
The social exclusion approach: Some policy implications and

priorities
by Vilmar B. Faria (Special Advisor to the President, Brazil)
I would like perhaps to call attention to the fact that in my mind the first
policy implications of the discussions that we held here is that there are a vari-
ety of situations and therefore there should be a diversity of policy solutions.
One of the implications for international agencies, for consultants, for academ-
ics is that they should keep in mind the diversity of situations and the diversity
of policy solutions. Therefore the points that I will try to raise will be made
having a very specific bias in mind. I am thinking about a very particular set of
countries which are developing countries which are highly organized, which
have a very complex industrial structure and which already have a very devel-
oped mass consumption pattern of society. At the same time, these countries
are extremely unequal, extremely poor and they have an array of discriminations,
vulnerabilities, inequalities, injustices, and so forth. I have these kinds of coun-
tries in mind. These countries are mainly in Latin America although not exclu-
sively in Latin America.
I would like to present two sets of observations and one conclusion. I do
not know if there will be time for these three parts so I will be telegraphic and
after the five minutes are over that will be it.
On the application of the social exclusion approach
To start with, I would like to propose four recommendations aimed at en-

hancing the usefulness of the social exclusion approach when applied to these
countries. I may be a little repetitive but I think it is useful to do that. The main
point is that the applicability of the so-called social exclusion approach seems to
me particularly useful to the societies I have in mind - urban, industrial, poor,
mass consumption - given the multiplicity of situations that could be understood
under the general umbrella of social exclusion. But for this to be an improve-
ment, a few adjustments should be made. The first is that the emphasis should be
108 SOCIAL EXCLUSION AND ANTI-POVERTY POLIC V A DEBATE
on processes of social exclusion, as well as on processes or modes of inclusion,

rather than on states of exclusion. I think that by focusing on processes and by
taking care of modes of insertion particular attention will be given to the more
disadvantaged groups in society. Secondly, I think an important point that has
been mentioned here, but not treated systematically and which should receive
more attention in the social exclusion perspective, refers to the modes of inclu-
sion of regions, whole nations and areas within nations in the international divi-
sion of labour. The consequences of the international division of labour seems to
me a very crucial aspect of the exclusion process, particularly concerning the
exclusion processes related to territorial exclusions such as the ones that occur
for instance in the north-east of my country, Brazil.
The other aspect that I think deserves closer attention concerns what has
been called the identification of the societal mechanisms reproducing exclu-
sion. And besides identifying these societal mechanisms, that constantly or
recurrently reproduce exclusion, it is quite important to derive their political
implications. If there are mechanisms which are permanently producing ex-
clusion in a certain societal arrangement, what is the policy implication? Is the
policy implication to change these basic societal mechanisms which constantly
produce and reproduce exclusion? Or is it that these mechanisms are there for
ever and what one has to develop are policies for continuously compensating
for their undesirable effects?
Yesterday, in this Forum, an example of this problem was given. Let us
suppose, for the sake of argument, that there is a trend towards labour-saving
in capitalist societies. What do we do about that? We are permanently running
behind this mechanism. We should seek for policies to change this mechanism.
There seems to be a very important concern here.
Finally, I think that a shortcoming threat to be avoided in the social exclu-
sion is that often the rhetoric of social exclusion, and consequently the policies
based on a social exclusion approach, convey the idea that policies of inclu-
sion are positive, that everybody will gain and nobody lose. But this is not the
case because inclusion policies are or may be zero-sum games. In order for
someone to gain, someone has to lose. And the political consequences of poli-
cies that are zero-sum games are completely different from policies that are
positive-sum games. In other words, in designing policies of inclusion we
privilege the distributive aspect and this can be misleading because they can
move societies into inflation, for instance.
Establishing priorities and defining policies
The second aspect that I would like to talk about very briefly - referring
to the same set of countries - is the policy priorities that emerge from this
approach and that emerge from the Forum. I think that one advantage and
usefulness of the social exclusion approach is that it can help us mapping the
several claims - legitimate claims - for inclusion that we have in such coun-
tries. And these claims are legitimately several claims. The approach is useful
and can be used for mapping these claims. This approach has been less useful
in the establishment of priorities among these several claims. Those working
on social exclusion should seriously consider this aspect.
Moreover, the approach has also not been very creative in suggesting
concrete ways of responding to these legitimate claims. In the case of the
countries that I have in mind, particularly in the case of my country Brazil, if
we take into consideration several suggestions that have been,made here stem-
ming from the social exclusion approach, very rapidly I would say that there
are six or seven very complex policies that should be developed in order to
confront the situation of inequality, discrimination, injustice, vulnerabilities
- old and new - that could be understood in the general umbrella of social
exclusion.
First of all, it is imperative that these countries that have fragile democracies
strengthen their representative, their participatory and their communicative demo-
cratic institutions. The communicative democratic institutions are very important
as mechanisms for disclosing public interest and for producing the idea of a public
good. That is not an easy task. Secondly, it is necessary to strengthen - as it had
been said here also - the rule of law and the functioning of justice because, other-
wise, several of these claims are letra morta, as we say in Portuguese. Thirdly, it is
necessary to fight those forms of discrimination, particularly gender, race and eth-
nic minorities which are widespread in some of the countries that I have in mind.
Fourthly, as the speaker that preceded me (R. van der Hoeven, ILO) emphasized, it
is imperative to promote economic growth. I am not going to elaborate on the
complexity of this policy because of the time constraints that we have at this mo-
ment. Fifthly, it is also imperative that more and better employment or job oppor-
tunities become the strategic content of all government policies - economic poli-
cies, social policies, infrastructural policies. The issues of employment and job
creation should contaminate all policies. Sixthly, it is absolutely fundamental that
we provide more and better basic services of public responsibility by designing
effective basic education, health care, infrastructure programmes. Seventhly, it is
very important in some of our countries to confront the problem of narco-traffic
and the problems of organized violence because those two things are eroding the
social fabric, and generating a huge number of social problems and massive exclu-
sion. Finally, but not less important, it is crucial to have targeted policies for those
who are suffering from hunger and cannot wait for the other policies to produce
results. Therefore, some mechanisms for the coordination of policies have to be
designed so that they can be simultaneously targeted to the segments of society that
are living in very difficult conditions.
Concluding remarks
To implement such set of policies it is not oniy a question of talking of

managerial capability and political will. Of course, these two things are very
important. But there is one thing that is central and, most importantly, has not
been discussed very systematically here, except in two presentations. It is
absolutely essential, in a pluralistic democratic society, with a congress, politi-
cal parties, social movements etc., to create a political coalition to give support
to this kind of growth-cum-inclusion policy, and that is not an easy task.
I think that we should give some thought particularly to the institutional side
of the question. That is: How could these political coalitions, both internally and
internationally, be promoted? And how could the conditions that the national state,
for better or for worse, need in order to be fully responsible for these policies be
created, particularly in the context of a national state whose authority and capabil-
ity has been significantly eroded? And that is the other dimension of the problem.
National States should be intelligent, strong and capable enough so as to be able to
promote, in the long run, an anay of policies which are really extremely demand-
ing on our nations, on our people and on our governments.
Annex I: Agenda and list of participants
IlL S/UNDP Research Project on the Patterns and Causes of Social

Exclusion and the Design of Policies to Promote Integration
Policy Forum on Social Exclusion
ECOSOC Chamber, United Nations Headquarters Building, New York,

22-24 May 1996
AGENDA
The objective of this meeting is to examine the implications of a social exclusion perspec-
tive for the design of anti-poverty strategies.
This will be done in the light of the outcomes of an IILSIUNDP project on social exclusion
which was designed to analyse patterns and processes of social exclusion, particularly in non
industrialized countries, to improve the basis for action aimed at poverty reduction and the promo-
tion of social integration.
It is expected that discussions will also lead to the definition of a policy-oriented research
agenda on social exclusion and development policy.
WEDNESDAY, 22 MAY
09:00 - 10:00 Registration of participants
10:00 - 11:00 OPENING SESSION
Chairperson David Freedman, Director, ILO Office, New York

Opening statements Andrzej Krassowski, Officer-in-Charge, Division
for Social Policy and Development, DPCSD,
United Nations, New York
Jos B. de Figueiredo, International Institute for Labour
Studies, ILO, Geneva
for Padmanabha Gopinath, Director
Thierry Lemaresquier, Director, Social Development and Poverty
Elimination Division, UNDP, New York
Introductory Social exclusion and anti-poverty strategies: Issues for discussion
statement Charles Gore, International Institute for Labour
Studies, ILO, Geneva
114 SOCIAL EXCLUSION AND ANTI-PD VERTY POLICY: A DEBATE
On the basis of findings of the IILS/UNDP project on social exclusion, this introductory
statement will outline key issues for debate. Social exclusion will be considered for the purpose
of the meeting as (1) an attribute of individuals, referring to their marginality or marginalization,
and (2) a property of societies, referring to the fragmentation of social relations, the emergence
of new dualisms, and loss of social cohesion.
11:00- 11:15 COFFEE BREAK
11:15 - 12:30 SESSION ONE - POVERTY AND SOCIAL EXCLUSION

IN ADVANCED ECONOMIES
Chairperson: Hilary Silver, Professor, Department of Sociology and

Urban Studies, Brown University, Providence
The objective of sessions one and two is to review experience with the application of the
concept of social exclusion in analysis and policy design. Session one will focus on advanced
countries in which the concept has been more fully adopted. It will provide a reference point for
discussion of its value in developing countries and countries in transition. Questions for consid-
eration will include: What are the specific differentiating characteristics of this perspective?
How does social exclusion relate to absolute poverty, relative deprivation, discrimination and
exploitation? Is social exclusion mainly due to the breakdown of the welfare state and labour
markets characterized by long-term unemployment and work precariousness? How does social
exclusion vary between different societies, for example, at different levels of development, with
different cultures, and with different relationships with the international economy? What are the
links between macro- and micro-level processes of social exclusion?
11:15 - 11:45 Presentations

Alfredo Bruto da Costa, Portuguese Catholic
University, Lisbon
Social exclusion and the new poor: Trends and policy
initiatives in Western Europe
Herbert J. Gans, Columbia University, New York
Social exclusion and the American underclass
11:45 - 12:30 Discussion
12:30 - 14:00 LUNCH BREAK
14:00 - 17:15 SESSION TWO - POVERTY AND SOCIAL EXCLUSION IN

DEVELOPING COUNTRIES AND COUNTRIES IN TRANSITION
Chairpersons: Jos B. de Figueiredo and Charles Gore, International

Institute for Labour Studies, ILO, Geneva
This session will examine, on the basis of selected country case studies, the value of the
social exclusion approach in developing countries and countries in transition.
14:00 - 15:30 Country Experiences. Part One.

Pasuk Phongpaichit, Associate Professor, Faculty of Economics,
Chulalongkorn University, Bangkok
Challenging social exclusion: Rights and livelihood in Thailand
Adolfo Figueroa, Professor of Economics, Economics Department,
Universidad Catlica del Perd, Lima
Social exclusion and inequality in Peru
ANNEXES 115
Manabi Majumdar, Research Associate, Madras Institute of

Development Studies, Madras,
Social exclusion from a welfare rights perspective in India

15:30 - 15:45 COFFEE BREAK
15:45 - 17:15 Country Experiences. Part Two.
Mouna Hashem, Consultant, Human Resources and Development

Planning, New York
Goals for social integration and realities of social exclusion in the
Republic of Yemen
Natalia Tchermna, Professor of Sociology, Institute of Economics
and Industrial Engineering, Novosibirsk
Economic transition and social exclusion in Russia
Anna Tibaijuka, Economic Research Bureau, University of Dar es
Salaam
Poverty and social exclusion in Tanzania
18:00 Cocktail
THURSDAY, 23 MAY
09:30 - 11:00 SESSION THREE - NATIONAL ANTI-POVERTY

STRATEGIES IN A GLOBAL ECONOMY:
CURRENT ANALYTICAL AND POLICY CHALLENGES
Chairperson: Thierry Lemaresquier, Director, Social Development and

Poverty Elimination Division, UNDP, New York
The objective of this session is to assess the current state of the art in the design of anti-
poverty strategies at the national level, taking into account the new challenges for policy
formulation and implementation posed by globalization.
Oscar Altimir, Director, CEPAL, Santiago

GiovanniAndrea Cornia, Director, World Institute for Development
Economics Research (WIDER), The United Nations University,
Helsinki
Thandika Mkandawire, Executive Secretary, Conseil pour le
Dveloppement de la Recherche conomique et sociale en Afrique
(CODESRIA), Dakar
Louis Emmerij, Special Adviser to the President, Inter-American
Development Bank, Washington
11:00 - 11:15 COHEE BREAK

116 SOCIAL EXCLUSION AND ANTI-POVERTY POLICY A DEBATE
11:15 - 12:45 SESSION FOUR - POVERTY, SOCIAL EXCLUSION

AND MARKET INSTITUTIONS
Chairperson: Dipak Mazumdar, Fellow and Adjunct Professor, Centre for

International Studies, Toronto
The theme of this and the next two sessions is to explore the relationship between social
exclusion and poverty by focusing on the social institutions and agents involved in processes of
impoverishment, either positively or negatively. This session will examine the relationships
between labour market structures and poverty in urban and rural settings, including patterns of
segmentation and informalization.

Subbiah Kannapan, Professor of Economics,
Michigan State University, East Lansing
Gerry Rodgers, Director, ILO Multidisciplinary Technical Advisory
Team, Santiago
Ashwani Saith, Head, Development Studies Institute, London School
of Economics and Political Science, London
12:00- 12:45 Discussion
12:45 - 14:00 LUNCH BREAK
14:00 - 15:30 SESSION FIVE - POVERTY, SOCIAL EXCLUSION

AND CITIZENSHIP RIGHTS
Chairperson: Cynthia Hewitt de Alcantara, Project Director, UNRISD, Geneva

This session continues the theme of the relationship between social institutions and pov-
erty. It explores the ways in which particular citizenship rights could facilitate occupational and
social participation and inhibit processes of impoverishment. Attention will be paid to the policy
experiences to overcome gender and ethnic discrimination, and the efficacy of a rights-based
approach to poverty reduction.
Hilary Silver, Professor, Brown University, Providence

Christopher af Jochnick, Legal Director, Center for Economic and
Social Rights, New York
Else Oyen, Comparative Research Programme on Poverty,
International Social Science Council (TSSC), Bergen
15:30 - 15:45 COH-EE BREAK
15:45 - 17:30 SESSION SIX - POVERTY, SOCIAL EXCLUSION

AND CIVIL SOCIETY
Chairperson: Rolf Van der Hoeven, Head, Employment Planning and Policy,
Employment Department, ILO, Geneva
ANNEXES 117
This session will examine the role of civic associations. Attention will be paid to the
notion that social capital should be a focal goal of policy, and to the way key social actors
perceive the role of civil society in poverty reduction.

Gordon White, Professorial Fellow, Institute of Development
Studies, University of Sussex, Brighton
Luis A. Anderson, General Secretary, Inter-American Regional
Organisation, Caracas, International Confederation of Free Trade
Unions (ICFTU), Brussels
Amit Mitra, Secretary-General, Federation of Indian Chambers of
Commerce and Industry, New Delhi
FRIDAY, 24 MAY
09:30- 11:30 SESSION SEVEN - ALTERNATIVE APPROACHES TO

ANTI-POVERTY sTRATEGIEs: POLICY IMPLICATIONS
OF A SOCIAL EXCLUSION PERSPECTIVE
Chairpersons: Jos B. de Figueiredo and Charles Gore, International Institute

for Labour Studies, ILO, Geneva
This session will focus on the policy implications of the social exclusion perspective and
how they could be used to improve existing approaches to anti-poverty strategies at the national,
regional and international levels. Particular attention will be paid to the relationships between an
institution-centred, a people-centred, and a goods-centred approach to poverty reduction, and the
implications of the perspective for (1) the current strategic recommendations of key national and
international agencies concerned with poverty reduction, (2) the problem of conciliating economic
and social policies, and (3) the role of donors.
Panel One: Alejandro Grinspun, Advisor, Poverty Eradication Strategies,

Social Development and Poverty Elimination, UNDP, New York
Pierre Spitz, Director, Office of Evaluation, IFAD, Rome
Shelton Davis, Principal Sociologist, Social Policy Division,
Environment Department, World Bank, Washington
Roll' Van der Hoeven, Head, Employment Planning and Policy,
ILO Geneva
Panel Two: Wilmar Faria, Special Advisor, Presidncia da Repblica, Brasilia

Hassan Sunmonu, Secretary-General, Organization of African Trade
Union Unity, Accra
Peter Oakley, Research Fellow, Centre for Development Studies,
Swansea
11:00- 11:30 Discussion
11:30 - 11:45 COFFEE BREAK

118 SOCIAL EXCLUSION AND ANTI-POVERTY POLICV. A DEBATE
11:45 - 13:00 CLOSING SESSION - WHERE DO WE GO FROM HERE?
Chairpersons: Jos B. de Figueiredo and Charles Gore, International Institute

for Labour Studies, ILO, Geneva
This closing session will provide an overview of the deliberations of the Forum and will
include suggestions for setting a policy-oriented research agenda.
11:45 - 12:00 Reflexions on the Meeting

by Paul Streeten, Professor Emeritus,
Boston University, Boston
12:00 - 13:00 General Debate

ANNEXES 119
ECOSOC Chamber, United Nations Headquarters Building, New York,

22-24 May 1996
LIST OF PARTICIPANTS
Mr. Oscar ALTIMIR

Director, CEPAL
SANTIAGO
(Chile)
Ms. Lykke ANDERSEN

Programme Officer, JPO
Regional Bureau for Europe and the CIS
United Nations Development Programme FF-532
NEW YORK N.Y.
(United States)
Mr. Luis A. ANDERSON

General Secretary
Inter-American Regional Organisation
of Workers (O1UT)
CARACAS
(Venezuela)
Mr. Luciano d'ANDREA

Head, Department of Social Exclusion
Centro di Ricerca e Documentazione Febbraio 74
CERFE
ROME
(Italy)
Ms. Nadia AURIAT

Programme Specialist
Division of Social Sciences, Research and Policy
Management of Social Transformations (MOST)
UNESCO
PARIS
(France)
120 SOCIAL EXCLUSION AND ANTI-PD VEPTY poucy: A DEBATE
Mr. Stan BERNSTEIN

Senior Research Adviser
External Relations Division, UNFPA
NEW YORK
(United States)
Mr. Alfredo BRUTO DA COSTA

Faculdade de Cincias Humanas
Portuguese Catholic University
LISBON
(Portugal)
Mr. Giovanni Andrea CORNIA

Director
The United Nations University
World Institute for Development Economics Research (WIDER)
HELSINKI
(Finland)
Mr. Shelton DAVIS

Principal Sociologist
Social Policy Division, Environment Department
The World Bank
WASHINGTON D.C.
(United States)
Ms. Juliette EL HAGE

Programme Management Officer
Regional Bureau for Europe and the CIS
NEW YORK
(United States)
Mr. Louis EMMERIJ

Special Adviser to the President
Inter-American Development Bank
WASHINGTON D.C.
(United States)
ANNEXES 121
Mr. Wilmar FARIIA

Special Advisor
Presidncia da RepiThlica
Palcio do Planalto
BRASILIA
(Brazil)
Mr. Adolfo FIGUEROA

Professor of Economics
Economics Department
Universidad Catlica del Per
LIMA
(Peru)
Ms. Sakiko FUKUDA-PARR

Director
Human Development Report Office
NEW YORK N.Y.
(United States)
Mr. Herbert J. GANS

Professor of Sociology
Department of Sociology
Columbia University
NEW YORK. N.Y.
(United States)
Mr. Alejandro GRINSPUN

Advisor, Poverty Eradication Strategies
Social Development and Poverty
Elimination Division
NEW YORK N.Y.
(United States)
Ms. Mouna HASHEM

Consultant
Human Resources and Development Planning
NEW YORK N.Y.
(United States)
122 SOCIAL EXCLUSION AND ANTI -P0 VER7Y poicv: A DEBATE
Ms. Cynthia HEWITT de ALCANTARA

Project Director
UNRJSD
Palais des Nations
GENEVA
(Switzerland)
Mr. R. Van der HOEVEN

Head, Employment Planning and Policy
Employment Department
International Labour Office
GENEVA
(Switzerland)
Mr. Vali JAMAL

Senior Economist
ILO Regional Office
UN Building
BANGKOK
(Thailand)
Mr. Christopher af JOCHNICK

Legal Director
Center for Economic and Social Rights
NEW YORK N.Y.
(United States)
Mr. Richard JOLLY

Special Adviser to the Administrator
NEW YORK N.Y.
(United States)
Mr. Subbiah KANNAPPAN

Professor of Economics
Department of Economics
Michigan State University
EAST LANSING - Michigan
(United States)
ANNEXES 123
Ms. Larissa KAPITSA

Senior Economic Affairs Officer
Department for Economic and Social
Information and Policy Analysis
Micro-economic and Social Analysis Division
United Nations Secretariat
NEW YORK N.Y.
(United States)
Ms. Anne KNIPPER

Assistant to Director, International Affairs
American Federation of Labor and
Congress of Industrial Organizations
WASHINGTON D.C.
(United States)
Ms. Manabi MAJUMDAR

Research Associate
Madras Institute of Development Studies
MADRAS
(India)
Mr. Dipak MAZUMDAR

Fellow and Adjunct Professor
Centre for International Studies
University of Toronto
TORONTO Ontario
(Canada)
Mr. Amit MITRA

Secretary-General
Federation of Indian Chambers of Commerce and Industry
NEW DELHI
(India)
Mr. Thandika MKANDAWIRE

Executive Secretary
CODESRIA
DAKAR
(Senegal)
124 SOCIAL EXCLUSION AND ANTI-POVERTY POLICV. A DEBATE
Mr. Peter OAKLEY

Research Fellow
Centre for Development Studies
University of Wales
SWANSEA
(United Kingdom)
Ms. Else OYEN

CROP
Health and Social Policy Studies
University of Bergen
BERGEN
(Norway)
Ms. Pasuk PHONGPAICHIT

Associate Professor
Faculty of Economics
Chulalongkorn University
BANGKOK
(Thailand)
Mr. Gerry RODGERS

Director
ILO Multidisciplinary Technical Advisory Team
SANTIAGO
(Chile)
Mr. Ashwani SAITH

Head, Development Studies Institute
London School of Economics and
Political Science
LONDON
(United Kingdom)
Ms. Hilary SILVER

Professor,
Department of Sociology and Urban Studies
Brown University
PROVIDENCE, Rhode Island
(United States)
ANNEXES 125
Mr. Pierre SPITZ

Director, Office of Evaluation and Studies
(IFAD)
ROME
(Italy)
Professor Paul STREETEN

SPENCERTOWN. N.Y.
(United States)
Mr. Hassan SUNMONU

Secretary-General
Organization ofAfrican Trade Union Unity
ACCRA
(Ghana)
Ms. Natalia TCHERNII'TA

Professor of Sociology
Institute of Economics and Industrial Engineering
NOVOSIBIRSK
(Russian Federation)
Ms. Anna TIBAIJUKA

Economic Research Bureau
University of Dar es Salaam
DAR ES SALAAM
(Tanzania)
Mr. J. VANDEMOORTELE
UNICEF
NEW YORK N.Y.
(United States)
Mr. Eric WANNER

President
The Russell Sage Foundation
NEW YORK N.Y.
(United States)
Ms. Rekha WAZIR

Vice-President
International Child Development Initiatives
LEIDEN
(The Netherlands)
126 SOCIAL EXCLUSION ANO ANTI-POVERTY POLICY: A DEBATE
Mr. Gordon WHITE

Professorial Fellow
Institute of Development Studies
University of Sussex
BRIGHTON
(United Kingdom)
UN and UNDP
Mr. Bob HUBER
Social Affairs Officer
Division for Social Policy and Development
Department of Policy Coordination
and Sustainable Development
United Nations
NEW YORK N.Y.
(United States)
Mr. Andrzej KRASSOWSKI

Officer-in-Charge
Division for Social Policy and Development
Department of Policy Coordination
and Sustainable Development
United Nations
NEW YORK N.Y.
(United States)
Mr. John E. S. LAWRENCE

Principal Technical Adviser
Human Resources Development
Technical Advisory Division
Bureau for Policy and Programme Support
NEW YORK N.Y.
(United States)
Mr. Thierry LEMARESQUIER

Director
Social Development and Poverty Elimination
Division
NEW YORK N.Y.
(United States)
ANNEXES 127
ILO New York

Mr. David FREEDMAN
Director
ILO Office in New York
NEW YORK, N.Y.
(United States)
Ms. T. PRADA DE MESA

Deputy Director
NEW YORK. N.Y.
(United States)
Administrative Assistant to the Policy Forum:

Ms. Ruxandra BARB
NEW YORK. N.Y.
(United States)
IILS/ILO Geneva
Mr. Jos BURLE DE FIGUBIREDO
GENEVA
(Switzerland)
Mr. Charles GORE

GENEVA
(Switzerland)
Annex II: Meetings and publications
IlLS!UNDP Research Project on the Patterns and Causes of Social

Exclusion and the Design of Policies to Promote Integration
MEETINGS
The First IlLS Workshop on Social Exclusion

VALLEfl'A (Malta), 19-22 January 1994
This was an internal preparatory meeting with all participants in the project, to
define the research strategy and a common framework for the country case studies.
The Second IlLS Workshop on Social Exclusion

CAMBRIDGE (UK), 14-18 July 1994
This was an internal meeting with all participants in the project, to discuss
preliminary research outcomes and prepare a report for the World Summit for
Social Development.
National Technical Workshop on Social Exclusion and Development Policy

in Thailand
BANGKOK, 15-17 August 1994
Co-organized by the Ministry of Labour and Social Welfare, Royal Thai Gov-
ernment, the ILO Regional Office for Asia and the Pacific, Bangkok, and the
IILS/ILO, Geneva.
Asian Subregional Symposium on Social Exclusion and Extension of So-

cial Protection
PATTAYA, 22-25 November 1994
Co-organized by the Ministry of Labour and Social Welfare, Royal Thai Gov-
ernment, the ILO East Asian Multidisciplinary Advisory Team, the ILO Re-
gional Office for Asia and the Pacific, Bangkok, and the IILS/iLO, Geneva.
Taller Regional sobre Exclusion Social en America Latina: un Tema para

el Anlisis y el Dilogo Social
LIMA, 17-19 January 1995
Co-organized by the 1LO Regional Office, Lima, and the IILS/ILO, Geneva.
ANNEXES 129
From Social Exclusion to Social Cohesion: Towards a Policy Agenda

ROSKILDE, 2-4 March 1995
Co-organized by the Management of Social Transformation Programme
(MOST) of the UNESCO, Paris, the IILS/ILO, Geneva, the WHO, Geneva,
the DG-Xll of the Commission of the European Union, Brussels, the ORSTOM,
Paris, and the University of Roskilde, Roskilde.
Taller sobre Exclusion Social en Chile

SANTIAGO, 6-7 December 1995
Co-organized by the ILO Multidisciplinary Technical Team, Santiago, and the
IILS/ILO, Geneva.

NEW YORK, 22-24 May 1996
Organized by the 11LS/ILO, Geneva
130 SOCIAL EXCLUSION AND ANTI-POVERTY POLICY.' A DEBATE
IILS/UNDP Research Project on the Patterns and Causes of

Social Exclusion and
the Design of Policies to Promote Integration
PUBLICATIONS
Books
Apasamy, P. et al. 1996. Social exclusion from a welfare rights perspective in

india. Geneva, IlLS, Research Series No. 106 (133 pp.).
Figueroa, A. et al. 1995. Exclusion social y desigualdad en el Perz. Lima, ILO

Regional Office (151 pp.).
Figueroa, A. et al. 1996. Social exclusion and inequality in Peru. Geneva, ilLS,
Research Series No. 104, (96 pp.).
Gaudier, M. 1993. Poverty, inequality, exclusion: New approaches to theory

and practice - Pauvrets, ingalits, exclusions: renouveau des approches
thoriques et des pratiques sociales. Geneva, IlLS, Bibliographical Series,
No. 17 (E, F) (208 pp.).
Gore, C. and Figueiredo, J. B. (eds.). 1996. Social exclusion and anti-poverty

policy: A debate. Policy Forum on Social Exclusion (New York, 22-24
May 1996), Geneva, IlLS (forthcoming).
Hashem, M. H. 1996. Goals for social integration and realities of social exclu-
sion in the Republic of Yemen. Geneva, IlLS, Research Series No. 105
(116 pp.).
Kaijage, F and Tibaijuka, A. 1996. Poverty and social exclusion in Tanzania.

Geneva, ilLS, Research Series No. 109 (202 pp.).
Phongpaichit, P. et al. Challenging social exclusion: Rights and livelihood in

Thailand. Geneva, IlLS, Research Series No. 107 (122 pp.).
Rodgers, G., Gore C. and Figueiredo, J. B. (eds.). 1993. Social exclusion: Rheto-
ric, Reality, Responses. Geneva, IlLS (310 pp.).
Tchernina, N. 1996. Economic transition and social exclusion in Russia.

Geneva, IlLS, Research Series No. 108 (103 pp.).
ANNEXES 131
Discussion papers
Bedoui, M. 1995. Bibliographie sur I 'exclusion dans les pays arabes du Maghreb
et du Machreq. Geneva, ilLS, Srie Documents de travail No. 80 (73 pp.).
Bedoui, M. et Ridha, G. 1996. Les politiques de lutte contre l'exclusion sociale

en Tunisie. Geneva, ilLS, Srie Documents de travail No. 88 (52 pp.).
Do Duc Dinh. 1995. The social impact of economic reconstruction in Vietnam: A

selected review. Geneva, IlLS, Discussion Papers Series No. 81(21 pp.).
Gore, C. 1993. Social exclusion andAfrica south of the Sahara: A review of the
literature. Geneva, ilLS, Discussion Papers Series No. 62 (96 pp.).
Faria, W. 1994. Social exclusion in Latin America. An annotated bibliography.

Geneva, IlLS, Discussion Papers Series No. 70 (69 pp.).
de Haan, A. and Nayak, P. 1995. Social exclusion and South Asia. Geneva,
IlLS, Discussion Paper Series No. 77 (75 pp.).
Institute for Labour Studies (Manila). 1995. Social exclusion in the Philip-
pines. Geneva, IlLS, Discussion Papers Series No. 79 (104 pp.).
Lim Teck Ghee. 1995. Social integration in Malaysia: A review of literature and
empirical material. Geneva, ilLS, Discussion Papers Series No. 82(31 pp.).
Rodgers, G. 1994. Overcoming exclusion: Livelihood and rights in economic

and social development. Geneva, IlLS, Discussion Papers Series No. 72
(59 pp.).
Silver, H. 1994. Social exclusion and social solidarity: Three paradigms. Ge-
neva, ilLS Discussion Papers Series No. 69 (69 pp.). Also in Geneva,
ILO, International Labour Review, Vol. 133, No. 5-6 (pp. 53 1-578).
Silver, H. and Wilkinson, E 1995. Policies to combat social exclusion: A French-

British comparison. Geneva, IlLS, Discussion Papers Series No. 83 (37 pp.).
Wolfe, M. 1994. Some paradoxes of social exclusion. Geneva, IlLS, Discus-

sion Papers Series No. 63 (16 pp.).
Yepez del Castillo, I. 1994. Review of the French and Belgian literature on
social exclusion. A Latin American perspective. Geneva, ilLS, Discus-
sion Papers Series No. 71(28 pp.).
Leaflets and reports
Bessis, S. 1995. From social exclusion to social cohesion: A policy agenda.

Paris, MOST Programme of the UNESCO, Policy Papers No.2. (B, F, 5).
(56 pp.).
IlLS. 1995. Overcoming social exclusion - A contribution to the World Summit

for Social Development. Geneva, IlLS (B, F, S) (22 pp.).
ilLS. 1996. Social exclusion and anti-poverty strategies. Research project on

the patterns and causes of social exclusion and the design of policies to
promote integration: A synthesis offindings. Geneva, IlLS (31 pp.).
ILO (Bangkok). 1995. Asian subregional symposium on social exclusion and

extension of social protection. Bangkok, ILO Regional Office (36 pp.).
ILO (Lima) and ilLS. 1995. Social exclusion in Latin America - La exclusion
social en America Latina. Lima, ILO Regional Office (E, S) (35 pp.).
ILO (Santiago) and IlLS. 1996. Elements for the design of policies against
social exclusion in Chile. Santiago, ILO Multidisciplinary Technical Team
(39 pp.).
Environmental
business management
An introduction
RECEIVED
11 AUG1997
Internatjoiaj
Labour Office
ILO BIBL rr
A training videocassette entitled The Green Challenge has been produced
by TV Choice Productions (London, 1995) in collaboration with UNEP
and the ILO, based on the ideas contained in this book. Copies are
available from TV Choice Productions, 22 Charing Cross Road, London
WC2H OHR, United Kingdom.

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International Institute for Labour Studies

United Nations Development Programme

Edited by Charles Gore

Research Series 110

Copyright International Labour Organization

First published 1997

The concept of social exclusion is now extensively used in policy debates

Jos B. Figueiredo and Charles Gore

Part One: Resources for debate 5

Issues note for the Policy Forum on Social Exclusion 7

Part Two: The debate 35

Part Three: Selected presentations 57

Social actors' perspectives 92

Annex I Agenda and list of participants 113

Annex II Meetings and publications 128

issues note for the Policy Forum on Social

What analytical, policy and operational benefits arise from introducing

On concepts of social exclusion

Social exclusion is a negative state or process; in both cases, this entails

It can also be regarded as a subjective or objective feature of people's

Social exclusion can be regarded as a description of individual disadvan-

It can also be regarded as an attribute of societies, and is manifest in

A precise definition of social exclusion depends on the paradigms of so-

a major conceptual input to the project, Silver, deconstructing usages of the

A replacement to poverty as a description of personal disadvantage;

An element which has to be taken into account in calculating a poverty

A particular way of conceptualizing poverty which emphasizes process,

A consequence of material poverty;

A cause of material poverty;

A normative concept which is founded on a different view of social jus-

A central issue in thinking how the notion of social exclusion should be

the structural framework" which constrain and enable social interaction. As

On causes of social exclusion

Within countries, social exclusion is the result of policies and institu-

Such institutions structure the relationship between the pattern of economic

(v) Social exclusion within countries cannot be explained without reference to

Social exclusion and the new poverty agenda

A major area of consensus in the new poverty agenda of international

Major policy issues

It is debatable whether it is desirable (analytically and operationally) to de-

The focus on meso-policies

The central issue of policy design is how to change institutions so that

necessary to extend the scope of meso-policy analysis to production sectors and

General policy issues are:

Which institutions should be the targets of policy?

More specific issues are:

(i) Are there efficiency-equity trade-offs or synergies? Policy towards inter-

What is the relationship between institutional change and globalization?

How to promote institutional change

Meso-policies are important as they interrelate macro-economic poli-

macro-economic aggregates. This implies that policies against social exclu-

Dfrect targeted projects and safety nets

The focus on institutions as a means of integrating social and economic

A summary of empirical findings2

Concepts of social exclusion

Social exclusion is the inability to participate in aspects of social life con-

Social exclusion is a process through which citizenship rights on which

Social exclusion is both an objective and subjective feature of people's

tion and infringement of social rights (including rights related to employ-

Social exclusion is both a state and a process. As a state, it is equivalent to

Social exclusion is the opposite of social integration. It is present when

These diverse definitions have a number of common ingredients.

Relationships between poverty and social exclusion