Washington, DC November 2005

1. ANNEX III Presentation to the Working Group to Prepare a Draft Inter-American Convention Against Racism and All Forms of Discrimination and Intolerance - OAS Washington, DC November 2005

2. Key Dimensions of Social Exclusion • In Latin America and the Caribbean (LAC), inequality and exlusion are embedded in the collective histories of the nations and peoples in the region. • Socially excluded peoples and populations in the region today, suffer multiple and cumulative disadvantages, stigma and discrimination and share poverty as a common cause of the impact of exclusion. • In LAC today, the legacies of colonialization are manifested in the unequal ditribution of productive assets, human physical and social or political capital, which determine income inequality, • Social exclusion intensifies the unequal distribution of income earning assets and concentrates inequalities among groups.

3. The Impact of Social Exclusion • In the region, high inequality and exclusion not only reduce the impact of growth on the most excluded groups but also restrains the overall growth rates themselves. • Inequality and social exclusion have been linked, in LAC, with social upheaval and threats to public safety, especially in countries with high ethnic or racial diversity and in environments where social injustice and discrimination pervade. The democratic process in these cases is also undermined as a result, limiting a county’s chances for growth.

4. Other Examples of Exclusion • Primary school enrollment rates are lower and repetition and drop out rates are higher for children from indigenous and African descendant families. • Indigenous women have the lowest educational levels and the lowest returns to the education in contrast with the overall progress women have made in education in the region. • In Brazil, the costs of labor market discrimination translates into 30-40 percent lower earnings in the case of women and 50% lower earnings in the case of People of African descent overall. • Excluded groups have least access to land and other forms of property and credit. And, socially excluded groups lack voice and influence over the policy processes that shape structural reforms. • In countries in Latin America with the largest percentages of African descendant and indigenous peoples, political representation from these communities is relatively scarce. And women on average, still represent less than 15 % of those holding political decision making positions.

5. Social Inclusion: a working definition Equal rights and opportunities for all regardless of gender, race, ethnicity, class, sexuality, disability or those with HIV/AIDS where diversity is respected and valued.

6. The Social Inclusion Trust Fund (SITF) • Social inclusion is among the most urgent needs in Latin America and the Caribbean (LAC) to address its persistent and rising inequality. • The goal of the Social Inclusion Fund is to promote social inclusion in LAC. This is accomplished by incorporating this theme into the IDB’s operations, policies and strategies, its advocacy work with the governments of the region as well as the activities of non-governmental organizations and civil society.

7. Objectives The main objectives of the SITF are to: • Promote sustained and integrated programs and policies to address social inclusion by targeting traditionally excluded groups including: indigenous peoples, people of African descent, persons living with HIV/AIDS, persons with disabilities and poor women • Support organizational strengthening of local institutions that work with traditionally excluded groups. • Increase awareness among governments in the region regarding the importance of social inclusion as a development objective.

8. SITF History • The Fund started in February 2003 with contributions from Norway and DFID (UK) • Fund’s size: ~$2 million in the first two years (2003-2004)

9. How does the SITF work? • Call for Proposals • Special Line of Activity

10. Call for Proposals • Distinct from other Trust Funds, the SITF hosts a call for projects on a competitive basis which includes a technical committee selection process at least once a year.

11. Criteria for Eligibility The following types of proposals are considered: (i) proposals which fall within one of the Fund’s three areas of action; (ii)that have as beneficiaries one of the Fund’s target groups; (iii)that have eligible executors; and (iv)that do not exceed the maximum financing. A Bank Specialist, from headquarters or the pertinent country office, must present external proposals in order to be considered by the Technical Committee.

12. Special Line of Activity • The SITF aims to support the Bank and the region in incorporating social inclusion more systematically within lending, national investments and programs, and public policy. To do so, the Fund increased support for greater social inclusion analysis and consideration in the first step of the programming and analysis cycle – IDB Country Papers (CPs) and Poverty Assessments (PAs.)

13. Thinking Strategically The Fund is expanding and deepening key building blocks to inclusion: • Widening and Deepening Links with Bank Operations; • Increasing Participation and Diversity; • Strengthening Policy Processes and Links with other Funds; and • Advancing Awareness-raising, Outreach and Lessons Learned.

14. Deepening Relationships to Bank Operations & Programming Increasing Percentage of SI Projects related to Bank Operations 2003: 60% = 24% + 36%  2004: 73% = 45% + 28% Direct Support

15. Financing by Beneficiary Group 2004-2005

16. Strategic Line 3:Contributing to Larger Policy Processes • National Processes: Colombia – Brazil Ecuador – Mexico • Larger Policy Processes: Gender Mainstreaming, Indigenous Strategy, Rights, MDGs, Development Effectiveness, Collaboration/Synergies with other Trust Funds • Multilateral Initiatives: Inter-Agency Consultation on Race, Rights, MDGs

17. Strategic Line 4:Raising Awareness & Knowledge Base on Social Inclusion • EXR Campaign • Expanded Knowledge – Research Products • Exchange among SITF projects, greater dissemination: ‣ Wider range + more integrated social inclusion proposals; ‣ Within IDB, greater prevalence of social inclusion at project / policy level; ‣ More effective project monitoring

18. National Examples Nicaragua • Designed the methodology used to ensure the participation of ethnic groups in the census process. • Established a special community committee (Comité de Acompañamiento) to follow up on the analytical stage and dissemination of data 

19. More National Examples Ecuador • Supervised the project from the Country Office and an Afro Ecuadorian NGO served as executing agency • Set up a Special Committee of key NGOs (5) to coordinate consultation processes related to the capacity building activities • Coordinating consultant is training NGOs in the fundraising process for their project proposals.

20. Some Observations in the SITF Experience • Key countries in the region are demonstrating the political readiness and advancing policy instruments for more comprehensive social inclusion policies. • The Fund has sought to expand the impact of small grants by focusing on supporting the incorporation of inclusion from the outset – incorporating social inclusion in the initial national poverty assessments and strategy (e.g. Bank country papers).

21. More Observations • The Fund has also identified that the greatest impact on Bank Operations can be made in the diagnostic process of a country’s development and programming needs.

22. Recommendations • One of the key failings of past economic and social policy has been inattention to excluded populations for reasons of gender, age, ethnicity, race, disability etc. • Policies and processes which address the specific impact of discrimination, stigma on excluded groups should be supported throughout the region and best practices shared widely. • Despite advances made in this area in the region, there is still inadequate information available on excluded groups – which increases their invisibility and contributes to their exclusion • Disaggregated data initiatives in the form of restructured census or data collection with identity should be supported by all actors including multilaterals and national policymakers.

23. Reccommendations – Cont. • There is also a compelling need for mechanisms and instruments which seek ways to raise awareness and minimize the effects of discrimination and exclusion on peoples and communities in LAC as noted earlier policies of inclusion which confront invisibility, lack of political representation, lack of access to education, healthcare and substandard living conditions.

24. For Information about the Social Inclusion Trust Fund… • Access the website: www.iadb.org/sds/sifund 1 This document was prepared with data from EC/IADB Seminar IDB Document: Inequality, Exclusion and Poverty in Latin America and the Caribbean: Implications for Development, “Seminar on Social Cohesion in Latin America, Brussels, June 5-6, 2003.