This post is written by María Sofía Muratore, Master in International Development and Cooperation at Comillas University.

The private sector is challenged to work on the closing gap in terms of disability and building more equitable economies.

People with disabilities are often excluded from the economic system. This is due to the fact that they lack financial products or services that meet their demands. However, the International Finance Corporation (IFC, 2022) establishes that despite being the group with the lowest income, it is estimated that 1,850 million people with disabilities have an annual disposable income of USD 1.9 trillion.

It is highly significant to mention that more than 15% of the world population have a disability. Therefore, this group constitutes an emerging market of almost two trillion dollars in annual disposable income, and a potential market of more than 3.4 billion people when family members and caregivers are included (IFC, 2022). That is why the public sector must encourage international investors to bet on companies that respond to the needs of this group. Indeed, the public sector considers them essential to establish more solid and diverse economies.

How to close the economic gaps in people with disabilities?

The private sector is challenged to work on the closing gap in terms of disability and building more equitable economies.

In the first instance, job opportunities must be created for this group. The possibility of accessing a formal job links them directly with the regular financial system. However, physical and institutional barriers often prevent access to jobs. For this reason, it is not only necessary to encourage hiring, but also to think of structural programmes that favour the development of people with disabilities in the institution. In addition to this, research by Accenture (2018) estimates that US companies leading disability inclusion enjoy 28 percent higher revenues and 30 percent higher profit margins than their peers.

On the other hand, the financial services are usually limited for people with disabilities since the main problems lie in inaccessible banking products, the scarce creation of financial instruments for their development such as microcredits, and the lack of financial education for the sector. Therefore, it is imperative to create a more inclusive financial system.

What specific actions should the public sector take to promote a more inclusive financial system in terms of disability?

In the first instance, it is pertinent to emphasise that in order to create political initiatives and programmes that respond to systemic development of financial access, an evaluation and analysis of the particular situation of the country or region in question must be established.

In turn, a specific indicator system must be established in this area, and thus respond to the collection of data segregated by sex and socio-economic characteristics, since the objective is to establish concrete actions that allude to existing needs or that are functional for the near future.

On the other hand, they must create incentives for those companies or investment groups that bet on these initiatives. Thus, the possibility of establishing monetary policies in favour of companies that generate jobs for people with disabilities is highlighted; or whose purpose is to create or provide a product in pursuit of equity and inclusion.

In addition, meeting spaces and exchanges of good practices of the different actors must be established: public, private (emphasising the financial sector and the entrepreneurial sector), the third sector, international entities, and academia. With the desire that they can dialogue, discuss needs and possible mechanisms of action. Among the possibilities, the promotion of alliances, forums, networks, and tools or initiatives for training in the matter stands out.

Finally, the public sector must work to raise awareness and communicate about the impact of this type of investment and the creation of new financial products to encourage a change in the economic system in pursuit of inclusion.

Why is it important for the state to work together with the private sector to find a solution?

Beyond accurate data and specific market needs, the lack of guarantees regarding equal access to employment, and financial services for all people violates universal human rights. Within this context, the absence of addressing discrimination and exclusion can cost some economies up to seven percent of GDP, which is why it is valuable to pursue a more inclusive economy.

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