Economic Exclusion and Poverty Linkages: A Reflection on Concept, Consequences, and Remedies in an Asian Context

There is exclusion on the basis of race, religion, color, gender, or ethnicity in many nations under diverse social, economic, and political systems. Such exclusion is a problem in several countries in Asia. And although many Asian countries— such as China, India, Japan, Malaysia, Nepal, New Zealand, Pakistan, and the Philippines—have developed equal opportunity policies to overcome economic discrimination, the nature of both marketand non-market-related discrimination is still not well understood, and neither are its direct and indirect effects on poverty. The limited number of studies on exclusion in Asia has affected the development of appropriate policies to overcome discrimination and its impact on poverty. This chapter presents the argument that marketand non-market-related forms of discrimination directly affect poverty but also exacerbate it indirectly by reducing economic growth. The chapter highlights the need for socially inclusive policies; offers an analysis of the consequences of discrimination through the historical example of scheduled castes in India; and indicates potential policy options to redress exclusion and its effects.