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Providing public
services that contribute
to a healthy, educated
labour force helps
build national stability,
reducing the likelihood
of political unrest and
strengthening the
legitimacy of governments
equality—also helps reduce social conflict.
The sharpest contractions in growth after
1975 occurred in countries with divided
societies (as measured by indicators of inequality
and ethnic fragmentation). They also
suffered from weak institutions for conflict
management, with poor quality government
institutions that had less capacity to ensure
the rule of law, democratic rights and social
safety nets. 93
Education, health care, social protections,
legal empowerment and social organization all
enable poor people to participate in growth.
But even these basic policy instruments may
not empower disenfranchised groups. Poor
people on the fringes of society struggle to
voice their concerns, and governments do not
always evaluate whether services intended to
reach everyone actually do. 94 Often, problems
are exacerbated by external shocks, but in many
cases policies are implemented where local
institutional capacity and community involvement
are low.
• Uganda. In post-conflict Uganda, a series
of macroeconomic reforms, from the
loosening of price control and exchange
rates to changes in state-owned enterprises
and the civil service, paved the way for a
wide-ranging poverty reduction plan in
1997. Uganda went on to become one of
the few Sub-Saharan African countries to
have halved extreme poverty before the
Millennium Development Goal deadline of
2015, from 56.4% in 1992–1993 to 24.5%
in 2009–2010. However, increasing income
inequality has slowed the pace of poverty reduction.
95 On balance, the economic success
of these efforts show that programmes are
more effective when the national leadership
is committed to reducing poverty, notably
by enhancing the consistency of goals and
approaches across government agencies. 96 In
turn, such progress can have a profound influence
on the legitimacy of leaders and their
governments.
Promoting inclusion
All countries have, to a greater or lesser extent,
multireligious, multicultural, pluralistic
societies, and different groups generally have
different levels of human development. Even in
advanced countries, there is persistent discrimination
against certain ethnic groups in labour
markets. 97 Nonmarket discrimination can be
equally severe and destabilizing. Moreover,
historical discrimination has long-lasting effects.
Ensuring nondiscrimination and equal
treatment, including providing special programmes
for disadvantaged groups, is becoming
increasingly critical for political and social
stability.
In the South, too, different levels of achievement
often have historical or colonial origins—
for instance, in India, between upper and lower
castes, and in Malaysia, among Bumiputras
(Malays), Chinese and Indians. Economic
prosperity alone cannot end group discrimination
that leads to horizontal inequality.
To bridge inequalities and correct historical
disadvantages, both India and Malaysia have
adopted deliberate policy interventions, such
as affirmative action.
Providing basic social services
States can underpin long-term economic
growth by providing public services that
contribute to a healthy, educated labour
force. Such measures also help build national
stability, reducing the likelihood of political
unrest and strengthening the legitimacy of
governments.
Developing countries sometimes receive
policy advice urging them to view public
expenditures on basic services as luxuries
they cannot afford. Over the long term,
however, these investments pay off. Although
not all services need be publicly provided,
a minimum universal level of basic health,
education and social security needs to be established
to ensure that all citizens have secure
access to the basic requirements of human
development, whether from public or private
providers. Compulsory public primary and
secondary education has contributed decisively
to human development in Europe and
in some developing countries, such as Costa
Rica.
Access to high-quality education
Growth in HDI value is associated with growth
in public spending on education. On average,
78 | HUMAN DEVELOPMENT REPORT 2013