Publication:
Assessing the Impact and Cost of Economic Inclusion Programs: A Synthesis of Evidence

Loading...
Thumbnail Image
Files in English
English PDF (957.02 KB)
1,537 downloads
English Text (145.64 KB)
140 downloads
Published
2021-02
ISSN
Date
2021-02-04
Editor(s)
Abstract
This paper analyzes global evidence on the impact and costs of economic inclusion programs to transform the economic lives of households and communities living in extreme poverty. The analysis uses 107 quantitative and qualitative impact evaluations from 80 economic inclusion programs. Additionally, the paper presents analysis of costing data from 34 programs, surveyed using a newly developed PEI Quick Costing Tool 2020. The programs represent a range of sectors, geographies, contexts, and target populations; were both nongovernmental organization- and government-led; and represent programs implemented through social safety nets, livelihoods and jobs, and financial inclusion. Despite the challenges of the small number of studies available and limited comparability of impact and cost data, the findings indicate that a broad range of economic inclusion programs show promising and potentially sustained impact on a wide range of outcomes, with a bundled set of interventions showing larger impact on income, assets, and savings relative to stand-alone interventions. In many cases, the overall cost of economic inclusion programs is largely driven by a single component -- most frequently, business capital or consumption support. In its discussion, the paper explores drivers of impact and cost optimization strategies, preparing a preliminary understanding of cost-effectiveness of economic inclusion programs. The paper also identifies key areas for further research, including the need to shift the discussion on program impact from stand-alone, nonprofit-led programs to government-led programs; the opportunity to use a more systematic evidence base with comparable impact and cost outcomes and indicators; and prospects for using data, including disaggregated cost data, to inform policy and programming decisions more intentionally.
Link to Data Set
Citation
Paul, Boban Varghese; Dutta, Puja Vasudeva; Chaudhary, Sarang. 2021. Assessing the Impact and Cost of Economic Inclusion Programs: A Synthesis of Evidence. Policy Research Working Paper;No. 9536. © World Bank. http://hdl.handle.net/10986/35109 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    Climate and Social Sustainability in Fragility, Conflict, and Violence Contexts
    (Washington, DC: World Bank, 2026-01-07) Cuesta Leiva, Jose Antonio; Huff, Connor
    Climate change is widely recognized as a driver of violent conflict, but its broader social effects remain less understood. Ignoring these dimensions risks a vicious cycle where climate policies might undermine socially just adaptation. Evidence is still limited on how climate shocks influence political participation, trust, or migration. This paper helps fill that gap by examining links between climate change, conflict, and social sustainability, with a focus on inclusion, resilience, cohesion, and legitimacy. Using secondary data from 2019–24, the study applies simple correlation-based methods to test three hypotheses on the nature, severity, and composition of these associations. The analysis combines multiple climate impact measures, new conflict classifications, recent social sustainability frameworks, and controls for population and geography. The results reveal strong correlations—not causation—between climate events and contexts of fragility, conflict, and violence. Climate impacts are most pronounced in both national and subnational conflict settings. The study also finds robust links between fragility, conflict, and violence and low levels of social sustainability, reflecting its role as both a driver and consequence of conflict. Some dimensions—such as violent events and insecurity—appear weaker in areas most affected by climate shocks. Two of the hypotheses are supported, and one remains inconclusive.
  • Publication
    The Macroeconomic Implications of Climate Change Impacts and Adaptation Options
    (Washington, DC: World Bank, 2025-05-29) Abalo, Kodzovi; Boehlert, Brent; Bui, Thanh; Burns, Andrew; Castillo, Diego; Chewpreecha, Unnada; Haider, Alexander; Hallegatte, Stephane; Jooste, Charl; McIsaac, Florent; Ruberl, Heather; Smet, Kim; Strzepek, Ken
    Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.
  • Publication
    Institutional Capacity for Policy Implementation: An Analytical Framework
    (Washington, DC: World Bank, 2026-01-07) Kim, Galileu; Kumar, Tanu; Ramalho, Rita; Russell, Stuart
    State capacity is an important prerequisite for policy implementation, yet at the country level it is difficult to measure, assess, and reform. This paper proposes a focus on institutional capacity: the ability of public institutions to implement the specific policy mandates for which they are responsible. Based on a review of existing literature, the paper defines the different dimensions that compose institutional capacity and groups them into two cross-cutting categories: organizational dimensions (personnel, financial resources, information systems, and management practices) and governance dimensions (transparency, independence, and accountability). The paper proposes measures for organizational and governance dimensions using existing data, shows intra-institutional variation of these measures within countries, and discusses how new data could be collected for better measurement of these concepts. Finally, the paper illustrates how the framework can be used to diagnose the sources of common problems related to weak policy implementation.
  • Publication
    South Africa’s Fragmented Cities: The Unequal Burden of Labor Market Frictions
    (Washington, DC: World Bank, 2026-01-08) Baez, Javier E.; Kshirsagar, Varun
    Using high-resolution administrative, census, and satellite data, this paper shows that South African cities are characterized by spatial mismatches between where people live and where jobs are located, relative to 20 global peers. Areas within 5 kilometers of commercial centers have 9,300 fewer residents per square kilometer than expected, which is 60 percent below the global median. Poor, dense neighborhoods are most affected. In Johannesburg, a 10-percentile increase in distance from the nearest business hub corresponds to a 3.7-percentile drop in asset wealth (a proxy of household wellbeing) and 4.9-percentile drop in employment. In Cape Town, the declines are 4.0 and 3.7 percentiles, respectively. Employment is 87 percent lower in the poorest decile than the richest in Johannesburg and 61 percent lower in Cape Town. These findings suggest that South Africa’s spatial organization of people and economic activity constrains agglomeration and reinforces inequality. This methodology provides a scalable and standardized data-driven framework to analyze spatial accessibility and agglomeration frictions in complex, data-constrained urban systems.
  • Publication
    Investment in Emerging and Developing Economies
    (Washington, DC: World Bank, 2026-01-07) Adarov, Amat; Kose, M. Ayhan; Vorisek, Dana
    The world faces a pressing challenge to meet key development objectives amid slowing growth and rising macroeconomic and geopolitical risks. With the number of job seekers rising rapidly, infrastructure shortfalls continuing to be large, and climate costs mounting, the case for a significant investment push has never been stronger. Yet the capacity to respond in many emerging markets and developing economies has eroded. Since the global financial crisis, investment growth has slowed to about half its pace in the 2000s, with both public and private investment weakening. Foreign direct investment inflows—a critical source of capital, technology, and managerial know-how—have also fallen sharply and become increasingly concentrated, leaving low-income countries with only a marginal share. The risks of further retrenchment are significant, as trade tensions, policy uncertainty, and elevated debt levels continue to weigh on investment. Reigniting momentum will require ambitious domestic reforms to strengthen institutions, rebuild macro-fiscal stability, and deepen trade and investment integration—the foundations of a supportive business climate. At the same time, international cooperation is indispensable. A renewed commitment to a predictable system of cross-border trade and investment flows, combined with scaled-up financial support and sustained technical assistance, is essential to help emerging markets and developing economies—especially low-income countries and economies in fragile and conflict situations—bridge financing gaps and implement the domestic reforms needed to restore investment as an engine of growth, jobs, and development.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    The State of Economic Inclusion Report 2021
    (Washington, DC: World Bank, 2021-01-19) Andrews, Colin; de Montesquiou, Aude; Arevalo Sanchez, Ines; Dutta, Puja Vasudeva; Paul, Boban Varghese; Samaranayake, Sadna; Heisey, Janet; Clay, Timothy; Chaudhary, Sarang; Archibald, Edward; Bossuroy, Thomas; Premand, Patrick; Samaranayake, Sadna; Singh, Paramveer; Ranjan, Ajit; Guha, Kshovan; Patel, Gautam; Whisson, Isabel; Haque, Rozina; Kedroske, Julie; Sulaiman, Munshi; Matin, Imran; Das, Narayan; Hashemi, Syed; Asensio, Raul
    The State of Economic Inclusion Report 2021 sheds light on one of the most intractable challenges faced by development policy makers and practitioners: transforming the economic lives of the world’s poorest and most vulnerable people. Economic inclusion programs are a bundle of coordinated, multidimensional interventions that support individuals, households, and communities so they can raise their incomes and build their assets. Programs targeting the extreme poor and vulnerable groups are now under way in 75 countries. This report presents data and evidence from 219 of these programs, which are reaching over 90 million beneficiaries. Governments now lead the scale-up of economic inclusion interventions, often building on pre-existing national programs such as safety nets, livelihoods and jobs, and financial inclusion, and 93 percent of the total beneficiaries are covered by government programs. The report offers four important contributions: • A detailed analysis of the nature of these programs, the people living in extreme poverty and vulnerability who they support, and the organizational challenges and opportunities inherent in designing and leading them. • An evidence review of 80 quantitative and qualitative evaluations of economic inclusion programs in 37 countries. • The first multicountry costing study including both government-led and other economic inclusion programs, indicating that programs show potential for cost efficiencies when integrated into national systems. • Four detailed case studies featuring programs underway in Bangladesh, India, Peru, and the Sahel, which highlight the programmatic and institutional adaptations required to scale in quite diverse contexts. Data from the report are available on the PEI Data Portal (http://www.peiglobal.org) where users can explore and submit data to build on this baseline.
  • Publication
    The State of Economic Inclusion Report 2024: Pathways to Scale
    (Washington, DC: World Bank, 2024-11-20) Arévalo-Sánchez, Inés; Heisey, Janet; Chaudhary, Sarang; Clay, Timothy; Strokova, Victoria; Vasudeva Dutta, Puja; Andrews, Colin
    The State of Economic Inclusion Report (SEI) 2024 explores efforts to scale up economic inclusion programs - bundles of coordinated, multidimensional interventions that support individuals, households, and communities to sustainably increase their incomes and assets - in the context of overlapping crisis. These programs transform the economic lives of the poorest and most vulnerable people, building their resilience and creating job opportunities. The report features data from 405 programs across 88 countries, benefiting over 70 million individuals either directly or indirectly. This marks almost doubling in the number of programs and nearly a 50 percent increase in coverage since the SEI 2021 report. Governments continue to lead in scaling up these economic inclusion programs, covering nearly three-fourths of program participants. However, non-governmental programs have also significantly contributed to the increase in coverage in recent years, in addition to serving as both service providers and capacity building providers for governments. The report offers five important contributions: 1) Positioning economic inclusion programs as crucial for building resilience and providing job opportunities for the poor and vulnerable in the face of overlapping crises. 2) Analyzing the global landscape over the past three years, highlighting the extent to which economic inclusion programs are being customized for diverse contexts and groups, including a cross-cutting focus on gender. 3) Reviewing progress and challenges in the design and implementation of government-led programs, including the interplay with communities, non-governmental organizations, and the private sector. 4) Examining the emerging agenda of designing economic inclusion programs to enhance the long-term climate resilience of poor and vulnerable individuals and communities. 5) Featuring three spotlights that unpack emerging evidence from government-led programs, customization strategies targeting youth, and the increasing role of digital tools and technologies in program delivery. Data from the report are available on the PEI Data Portal (www.peiglobal.org).
  • Publication
    Reaching the Poor and Vulnerable in Myanmar
    (World Bank, Washington, DC, 2015-07-07) Dutta, Puja Vasudeva; Okamura, Yuko
    Several government and development partner programs employ different approaches to ensure the inclusion of poor and vulnerable areas and people in Myanmar’s development. Buildingon this experience, this note aims to identify feasible options to effectively reach these groups, as government programs expand. Depending on program-specific choices about geographic focus andindividual, household eligibility, identifying poor and vulnerable areas and people in Myanmar can become more evidence-based, effective, and systematic, as better data become available and administrative systems develop. While targeting is currently done by individual programs, there can be important economies of scale in sharing and developing these systems in a coordinated manner so as to support multiple programs.
  • Publication
    Regional Study on Targeting Systems and Practices : Draft Policy Note
    (World Bank, Washington, DC, 2010-06-28) Vasudeva Dutta, Puja; Sanchez-Paramo, Carolina; Ghorpade, Yashodhan
    This policy note aims to take stock of regional experiences in the area of targeting, both in the context of government systems and the World Bank's operational work, in South Asia. The main objectives are to review targeting systems and practices in the context of government programs; to critically review the role for and impact of targeting in the WB's operational work; and to extract lessons that can be used to deepen the relevance and impact of the WB's operational work in South Asia. The evidence presented in this note will serve as a resource for those interested in and/or planning some work on targeting related work in the region. In this sense, by presenting information on both country systems and performance of WB-led work, the note targets both practitioners and managers. The analysis focuses first on the architecture of targeting systems in South Asia, and on the determinants of targeting effectiveness, including the choice and design of the targeting tool, implementation and monitoring of the targeting tool, and the design, implementation and monitoring of the targeted program. The note concludes that international evidence a large fraction of the observed differences in targeting effectiveness across systems and programs, can be attributed to factors related to implementation and monitoring. This implies that investments aimed at correcting resource, capacity and logistic limitations in government systems could go a long way in improving targeting outcomes in the region.
  • Publication
    Breaking Barriers: Empowering Women through Economic Inclusion Programs
    (Washington, DC: World Bank, 2025-11-18) Moqueet, Nazia; Kaladi, Meghana; Dutta, Puja
    Ninety percent of economic inclusion programs target women, yet only a third prioritize women’s economic empowerment (WEE) as a core objective. Unless programs are designed to address gender-specific barriers, they risk reinforcing rather than reducing gender inequalities. Economic inclusion programs offer a scalable and proven solution to address inequalities by advancing women’s economic empowerment. Evidence from economic inclusion programs shows that they have delivered significant gains in women’s labor force participation and economic outcomes across various countries. This paper provides guidance on how economic inclusion programs can advance women's economic empowerment, drawing on best practices from programs that have demonstrated success. It adapts the operational framework presented by Cunningham and Ringwala and van Eerdewijk et al., which includes three pillars: agency, resources, and context. The paper also highlights how setting WEE as a core objective allows women to participate in economic activity and exercise agency, access resources, and influence decisions. The paper includes: (i) an overview of gender-focused economic inclusion programs; (ii) a conceptual framework and rationale for incorporating a gender lens in economic inclusion programs; (iii) global evidence and operational experience; and (iv) standardized tools for measuring women's economic inclusion for practitioners and policymakers.

Users also downloaded

Showing related downloaded files

  • Publication
    Integration of Venezuelan Refugees and Migrants in Brazil
    (World Bank, Washington, DC, 2021-03) Shamsuddin, Mrittika; Acosta, Pablo Ariel; Battaglin Schwengber, Rovane; Fix, Jedediah; Pirani, Nikolas
    An unprecedented number of Venezuelans have left behind the worsening economic and social crisis at home to look for better future prospects. Brazil is hosting about 261,000 Venezuelans as migrants, asylum seekers, or refugees, which, at 18 percent, constitutes the largest share of Brazil’s 1.3 million refugees and migrants population (as of October 2020). Although previous literature on other host countries found that Venezuelan refugees and migrants are struggling to secure high-paying jobs that are commensurate with their education, little is known about their access to education and social protection. This paper fills this gap by analyzing various administrative and census data to explore whether Venezuelan migrants and refugees face differential access to education, the formal labor market and social protection programs. It finds that even though there is minimum legal constraints and work permits are relatively easy to obtain, Venezuelan refugees and migrants face challenges integrating into the education system, social protection programs and the formal labor market. The results suggest that Venezuelan refugees and migrants have faced downgrading in grades at school and occupations at work. They are more likely to attend overcrowded schools than their host community counterparts and more likely to do inferior jobs characterized by temporality, lower wages and higher hours worked. Overall, the results suggest that improvement in school capacity, accreditation of Venezuelan education or degrees and relocation to places with favorable employment opportunities may facilitate integration.
  • Publication
    Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done?
    (World Bank, Washington, DC, 2007-12) Estupiñán, Nicolás; Gómez-Lobo, Andrés; Muñoz-Raskin, Ramón; Serebrisky, Tomás
    Subsidy policies on public urban transport have been adopted ubiquitously. In both developed and developing countries, subsidies are implemented to make transport more affordable. Despite their widespread implementation, there are virtually no quantitative assessments of their distributional incidence, making it impossible to determine if these instruments are pro-poor. This paper reviews the arguments used to justify subsidy policies in public urban transport. Using different tools to quantitatively evaluate the incidence and distributive impacts of subsidy policy options, the paper analyzes the findings of a series of research papers that study urban public transport subsidy policies in developed and developing countries. The available evidence indicates that current public urban transport subsidy policies do not make the poorest better off. Supply-side subsidies are, for the most part, neutral or regressive; while demand-side subsidies perform better-although many of them do not improve income distribution. Considering that the policy objective is to improve the welfare of the poorest, it is imperative to move away from supply-side subsidies towards demand-side subsidies and to integrate transport social concerns into wider poverty alleviation efforts, which include the possibility of channeling subsidies through monetary transfer systems or through other transfer instruments (food subsidies, health services and education for the poor). The general conclusion of the paper is that more effort should be devoted to improve the targeting properties of public urban transport subsidies using means-testing procedures to ensure a more pro-poor incidence of subsidies.
  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.
  • Publication
    A Triple Win
    (Washington, DC: World Bank, 2024-06-18) Hoogeveen, Johannes; Obi, Chinedu
    "A Triple Win: Fiscal and Welfare Benefits of Economic Participation by Syrian Refugees in Jordan" is the result of a joint effort by the World Bank and the United Nations High Commissioner for Refugees to explore the welfare of Syrian refugees in Jordan and to review the aid that refugees receive and their participation in the economy. The analysis shows how deprivation among Syrian refugees is elevated, more so for refugees living in host communities. This presents a puzzle because most refugees opt to live outside of the camps, even though they have the option to stay in camps. Why do people voluntarily expose themselves to a higher risk of poverty? The volume finds an answer in the desire of refugees for freedom and autonomy. "A Triple Win" then turns to humanitarian aid that is found important for reducing refugee poverty, but insufficient as poverty levels remain high. After considering the scope for efficiency gains, the conclusion is that at current levels of aid it will not be possible to lift all Syrian refugees out of poverty unless another solution is found. Increasing the financial autonomy of refugees provides the needed solution. Syrian refugees already access Jordan’s labor market, but their access is constrained. Those who work tend to labor in less remunerative jobs, often in the informal sector. Despite this, the incomes earned by refugees exceed aid by a factor of two. The analysis goes on to show that refugee economic participation already reduces the need for aid by US$850 million per year. This reduction could increase if labor market restrictions were eased. The savings that would be generated could then be repurposed. This approach defines the triple win: refugees gain financial autonomy, humanitarian aid is reserved for those most in need, and Jordan receives additional resources to invest in its economic development.
  • Publication
    The Labor Market Impact of Forced Displacement
    (Washington, DC: World Bank, 2024-12-13) von der Goltz, Jan; Schuettler, Kirsten; Bousquet, Julie; Kebede, Tewodros Aragie
    Communities that host refugees are often concerned about how their labor markets will change. Although high-income countries attract most policy attention, low- and middle-income countries host three of every four refugees worldwide. "The Labor Market Impact of Forced Displacement: Jobs in Host Communities in Colombia, Ethiopia, Jordan, and Uganda" seeks to address some of the key questions that arise in these host countries: How does forced displacement affect job outcomes for hosts? What effect do work permit schemes have? How does labor market competition influence attitudes? And what policies can support better job outcomes for hosts and refugees? To address these questions, the book relies on new primary data designed to study host community labor markets and on a careful comparative analysis of existing data. Its four focus countries represent low-income and middle-income economies as well as diverse policy contexts.In its key finding, "The Labor Market Impact of Forced Displacement" shows that across the focus countries, hosting refugees has modest or even positive overall labor market effects. In important instances, however, groups of host workers face adversity from greater labor market competition, while others benefit. The book explains how labor market restrictions rarely prevent refugees entirely from working but shape the type and quality of work they do, their contribution to the economy, and the effects of their participation on hosts. It shows that refugees matter not only as competitors but also as consumers, and it explains the importance of access to capital for hosts and refugees alike in economies where self-employment is key. It also discusses how hosts’ concerns over labor market competition influence their attitudes toward refugees.The book seeks to provide a basis for more confident jobs policy making in host communities. It offers lessons on how to analyze local labor market characteristics that shape outcomes for refugees and hosts alike and on how to think about the likely effects of policies. It encourages policy makers to support workers who face negative impacts—and to proactively seize the opportunities likely to arise.