Fighting LGBT exclusion isn't just the right thing to do – it's good business

Lesbian, gay, bisexual and trans (LGBT) people face a range of threats and challenges across the world. At best this involves stigmatisation from relatives, colleagues or neighbours who disapprove of their identity and treat them as deviant. At worst it involves their state-sponsored prosecution, imprisonment, and even execution.

Millions of lives are ruined every year by homophobia, biphobia and transphobia. There is clearly a moral case for tackling this oppression, but there is a growing body of evidence to suggest it makes economic sense too.

The impact of oppression

Even in more liberal countries, LGBT people are still regularly attacked and stigmatised. Research from the UK, regarded as one of the best places in the world for gay people to live in, identified various ways that LGBT people still face inequality:

• Half of LGBT school children face homophobic bullying
• A quarter of LGB employees report bullying or discrimination in the workplace
• 80% of all LGBT people had experienced a hate crime of some kind, with more than a third of these involving violent attacks

All this takes a toll on their mental health. LGBT people under 35 are twice as likely to report a mental health problem. Still worse, a fifth of LGB young people have attempted suicide. The figure is over 40% for young transgender people.

The cost of exclusion

LGBT people are more likely to suffer from mental health problems, substance abuse and bullying from an early age. All of these have an economic impact. In the US, around 29% of LGBT people face food insecurity compared with 16% of non-LGBT. Furthermore, LGBT people make up nearly 40% of the homeless young.

Even in the workplace, LGBT people are held back. Many young LGBT people fail to develop human or social capital as a result of feeling excluded in schools, by families or peer groups. Even as an adult, they may feel unable to express their identity in the workplace. Both social networking and the sense of authenticity we seek from leaders can be compromised by having to be a different person in one’s work and home lives.

Clearly the situation in countries that legislate against same sex relationships is even graver. The personal cost of individuals being criminalised – often leading to job loss and exclusion from higher paid roles – and the additional cost of policing and processing such individuals through the justice system only adds to the economic drain.

This combination of increased demand on public services and lower economic contributions means that LGBT people are not propelling the economy as they would in a more equal society. The Rockefeller Foundation puts the cost of LGBT inequality in an economy the size of India at between $1.25 and $7.7 billion, depending on the assumed size of the LGBT population.

The rewards of inclusion

Clearly the opposite of the above is true where governments invest in equality: LGBT people will have the opportunity to develop and deploy far more human capital.

The Williams Institute compared the economic output of 39 developed and emerging countries in relation to how LGBT inclusive they are. They found a clear correlation between greater legal protections for LGBT people and increasing per capita GDP. They equated the impact to around $1,400 of per capita GDP per point, on an eight-point scale of LGBT rights. Other positive correlations included increased educational attainment and life expectancy.

Local government has a great role to play, too. The UK’s Manchester was an early adopter in terms of supporting and encouraging LGBT people. The City Council visibly supported NGOs working for LGBT equality and reflected on how its own spending and practice could be used to push this agenda. While it suffered along with other northern English cities as a result of de-industrialisation, its recovery has been faster and steeper than many comparable cities. In particular it has done well in attracting significant players in media and creative industries. These tend to be areas of employment perceived as being less homophobic in attitude surveys of LGBT people.

Such ‘gaytrification’ - that is, the influx of significant numbers of LGBT people (particularly gay men) leading to a process of regeneration in neighbourhoods – can be seen across the world. It has contributed to the rejuvenation of inner city areas in cities such as Montreal, Paris, Berlin, London, and San Francisco to name only a few.

LGBT inclusion: a cornerstone of inclusive growth

Government, both national and local, can drive LGBT equality and reap the rewards from it. They will get more from their current citizens and also attract skilled LGBT workers from less friendly areas.

But it’s also worth reflecting on the diversity of individuals within the LGBT community. There are very different issues around gender identity compared with sexual orientation. There’s still a big gap for cities to mark themselves as beacons for trans friendly policy and spaces. And there will probably be significant economic opportunities in doing so.

Homophobia, biphobia and transphobia cost lives but they also have an economic cost. Fighting them is not just the right thing to do – it’s good business.

Tommy McIlravey is CEO of Sahir House, a charity based in Liverpool UK, supporting people living with HIV

With thanks to Carrie Davis of the LGBT Centre in New York

(Picture credit: Flickr/Rosefirerising)