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INCLUSIVE GROWTH

08/06/2021 20:35:00 Sanele Sibiya

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AS we enter into Pride month marking exactly 52 years since the Stonewall Inn riots, it is, therefore, fitting that we dedicate this week’s column to the economics of diversity and the economic price of freedom of being and the freedom of expression.

Gender equality, economic development

An increasing number of economists and policy makers across the world have explicitly embraced the idea that inclusion of all groups in a population, particularly women and other marginalised persons, promote shared prosperity and economic development. This perspective is the key motivation behind the idea that social inclusion of lesbian, gay, bisexual, transgender and intersex (LGBTIQ) people positively affects economic development. LGBTIQ people are limited in their human rights in ways that create economic inefficiencies including reduced productivity, under-investment in human capital and suboptimal allocation of human resources. Diminishing investment in human capital and use of human resources may inhibit growth at the broader level of the macro economy. In principle, when LGBTIQ people are deprived full participation in the society due to their identities, their human rights are violated.

Inclusion

Although no research examining the broader concept of LGBTIQ inclusion and the lived experiences of LGBTIQ persons in a macro-economic framework, has been conducted in the kingdom, we can confidently say that exclusions and violations of LGBTIQ human rights have adverse effects on the country’s level of economic development. Inclusion of LGBTIQ persons has the potential to lead to more efficient utilisation of existing human capital, which maximises overall productivity and economic output. In the perspective of human capital theory, greater inclusion of LGBTIQ people could expand the economy’s human capital by generating opportunities for LGBTIQ people to enhance human capital through more education, better health outcomes and job-related trainings. On the flip side, exclusion of LGBTIQ people in economic settings and health related contexts will diminish their human capital. With a diminished stock of human capital or inefficient use of existing human capital, the economy is not operating at its optimal capacity.

Economics of inclusion and entitlements

In the eloquent words of Amartyasens; “in every society each person can be thought of as having an ‘entitlement’ to all possible combinations of the goods and services to which he has access”.The fundamental idea behind this eloquent piece of work in development economics is that people die of famine not because there is an overall shortage in food production, but rather because there is a shortfall in their entitlement bundle. In short, you are just not entitled to certain commodities and services. A persons entitlements may change for a varying number of reasons including, but not limited to social perceptions and cultural distribution of entitlements. This brings to mind the registration case of Eswatini Sexual Gender Minorities, a scoping of the laws of the land shows no cause why the entity should not be registered. However, it is my strong belief that the registrar of companies saw it fit not to register the entity, because it is their perception that the LGBTIQ community in Eswatini is not entitled to freedom of association and the freedom to exist and register companies. This type of thinking tends to stifle economic growth and distorts economic outcomes, as it results in adverse selection of the labour force and economic ideas.

One cannot help but wonder if the registrar of companies would not register any company that seeks to target the LGBTIQ community, regardless of the freedom of association. If the company sought to serve and target the LGBTIQ community and has a potential to make millions, do we then leave it to the registrar of companies to decide whether that is permissible or not in the kingdom. This effectively means that we leave the economic success of the kingdom to the vices of one man. If that human being does not subscribe to certain views, then they will never see the light of day. In my view, the registrar is becoming a gate keeper and the office needs to be called to order, we cannot have entitlements decided by the sentiments of one human being.

Economic contribution of LGBTIQ organisations

LGBTIQ-led organisations contribute to the economic growth of the country, they contribute to employment creation, contribute to the government tax base and provide services to underserved communities that the state does not adequately cover. LGBTIQ persons contribute to economic growth through taxes and also through productivity in industry. The annual Eswatini pride hosted by The Rock of Hope contributes to tourism and local economic development. An event that can be expanded to a big tourism event, celebrating pride Eswatini Style. Is it not fair for the government to look the other way when it comes to revenue mobilisation? Yet vehemently fail to acknowledge the existence of LGBTIQ persons when it comes to the registration of ESGM? It’s only through understanding the strength in our diversity that we will reach our full economic potential as a country. Embracing diversity is a key step towards inclusive growth and development in the kingdom, it is through including everyone that we ensure we leave no one behind.