The State of Economic Inclusion 2024 report, released today by the World Bank, showcases the transformative impact of economic inclusion programs on youth employment opportunities. These programs, which empower youth through skills training, apprenticeships, and job placement, are cost-effective and impactful. However, they currently reach only about one in ten people living in extreme poverty, according to the report.
Economic inclusion programs provide cash transfers, skills training, business capital, coaching, and market access to build a ladder out of poverty for the poorest and most vulnerable people, particularly women. While these programs are rapidly expanding, the report reveals that they currently reach only 10% of the approximately 700 million people living in extreme poverty, or just over 70 million people across 88 countries.
The report, authored by the Bank’s Partnership for Economic Inclusion, underscores the importance of improving program quality and impact through evidence-based design, effective monitoring, evaluation, and learning. While governments lead the scale-up, collaboration with non-governmental and community-based organizations and the private sector is critical to overcoming capacity constraints.
“There is strong evidence of the significant impact that economic inclusion programs have on food security, consumption, and income,” said Iffath Sharif, Global Director for Social Protection at the World Bank. “When implemented through government systems, these programs can be highly cost-effective and yield high returns on investment.”
The report examines the coverage of economic inclusion programs, documents evidence of progress, and shares country examples. In Zambia, an economic inclusion program for women led to a 19% increase in consumption, a 45% rise in business profits, and cost recovery within 12 months. Similarly, a program in Niger increased consumption by 15% and doubled business revenue for women.
In July, at the G20 Global Alliance Against Hunger and Poverty in Brazil, the World Bank announced an ambitious goal to reach 500 million people with social protection measures by 2030. This includes supporting 250 million women with social protection programs, focusing especially on the poorest and most vulnerable. Scaling economic inclusion programs will be essential to this effort. The Bank is already working with 42 countries to deliver comprehensive economic inclusion programs through their social protection systems.
“Economic inclusion programs have the potential to address critical development challenges by empowering women economically and reducing youth unemployment,” said Victoria Strokova, Program Manager, Partnership for Economic Inclusion at the World Bank. “But to realize that promise, more intentional design and delivery are needed. For example, while 90% of programs target women, only one-third deliberately focus on women’s economic empowerment. We can further enhance these programs to overcome the social norms, the unpaid care work, and other barriers that prevent women from fully participating in the economy.”
The report suggests that more programs be designed to tackle the legislative and regulatory barriers women face. While two-thirds of programs target youth, wage employment opportunities could be enhanced through skills training, apprenticeships, and job placement partnerships with employers.
The report also highlights climate resilience as a new frontier for economic inclusion efforts. It finds that two-thirds of economic inclusion programs are integrating climate resilience practices to help people adapt to environmental challenges. These practices include innovative approaches such as climate risk insurance and low-cost green technologies.