By Age 60, 40% of People Have an Acquired Disability
By Nancy Marangu
The World Bank estimates between 5% and 7% of GDP is forgone by the economic exclusion of persons with disabilities. At the microeconomic level, financial service institutions are losing out on a large and attractive market segment. This is with the appreciation that persons with disabilities comprise over 15% of the population in developing countries, yet based on anecdotal evidence, only 0.5% of current microfinance clients come from this underserved community. Disability inclusion represents an excellent opportunity for a win-win situation for nations, their citizens, and inclusive financial service providers.
Furthermore, persons with disabilities in low- and middle-income countries are not only exposed to the same factors that cause poverty- they also face barriers that limit equitable access to health care, education, skills development, social participation and other services, further reducing their chances of securing financial stability. These barriers include a lack of information about financial access, benefits and opportunities for economic empowerment, as well as stereotypes and deeply ingrained prejudices about disabilities or their lack of abilities.
Significantly, barriers to gaining access to microfinance institutions and financial services through banks and savings groups include a lack of physical access and the absence of sign language interpreters and Braille-transcribed documentation.
Therefore, to promote inclusive economic growth, it is imperative that industry players break the aforementioned attitudinal barriers, which often lead to poverty and marginalisation—even within the person’s own family. When allowed to take part in economic empowerment initiatives, persons with disabilities are productive and efficient in executing the responsibilities assigned to them. The social capital aspect, through improved self-esteem and the respect and acceptance of others, is also an important factor to consider in fostering their integration within the financial sector.
It is worth noting that the United Nations Convention on the Rights of Persons with Disabilities mandates economic inclusion programmes. Article 27 of the Convention underscores the critical role that economic empowerment plays in integrating persons with disabilities within the social and financial ecosystem. Indeed, ratifying countries are required to promote opportunities for formal employment, self-employment, entrepreneurship, the development of cooperatives, and inclusive social protection. Regarding strategic economic growth, inclusive social protection enables persons with disabilities to transition from receiving tax-funded social assistance to contributing to social insurance systems.
Importantly, the World Report on Disability (2011), underlines that by the age of sixty, 40% of humanity has some form of acquired disability, and the demographic reality of an aging global population is incontrovertible. This creates an impetus for societies that are inclusive of persons with disabilities. A financial institution that distinguishes itself by its high accessibility standards will have a competitive advantage in future over those that do not. Business profitability and sustainability strategic goals have to intentionally integrate disability mainstreamed products and services within their financial portfolios.
Consequently, the International Labour Organisation (2011) states that: persons with disabilities make good, dependable employees and emphasize that hiring persons with disabilities can contribute to the overall diversity, creativity and morale in the workplace and enhance a company’s image among its staff, community and customers. This implies that the financial sector has to reconsider the diversity of their human capital and provide opportunities to all equitably.
Worth noting, despite enormous physical, communication, attitudinal, legal and process barriers, millions of PWDs are successful in business and have achieved financial independence. But most of their success has been based on individual efforts, family, or support from development organisations, and these are the exception rather than the rule. What these trailblazers teach us is that small accessibility changes and modest support can transform life outcomes. By lowering the barriers to financial inclusion (often in very low-cost ways) many more can become economically self-sufficient, having the opportunity to earn a living through work they choose on an equal basis with others, and serve as inspirational role models.
In view of the above, financial institutions, are encouraged to facilitate unhindered access to these services and:
Mainstream disability by strengthening the institutional commitment and code of ethics
Reinforcing inclusion within institutional leadership and at all staffing levels to ensure capacity building on disability mainstreaming is provided for to foster understanding of the concept of inclusion and rights of persons with disabilities. In addition to the development and implementation of a code of ethics with specific guidance on how employers must treat clients and potential clients with disabilities and provide staff training and monitoring mechanisms to ensure full compliance on disability mainstreaming.
Review and amend key policies to foster inclusion
The Central Bank of Kenya, Kenya Bankers Association and the Institute of Certified Public Accountants of Kenya ought to provide guidelines to local banks, on the review of existing banking legislation to mainstream disability and practices, examine client recruitment methods, loan application procedures and interview processes, staff incentives, and the way information is collected, stored and presented from an inclusion perspective. Critically, ensure that references that directly or indirectly cause discrimination against persons with disabilities are amended or removed.
Integration of persons with disabilities to the workforce
The financial sector ought to review their employment guidelines and policies and actively recruit persons with disabilities at board and staff levels, and encourage persons with disabilities to apply for competitive job opportunities. What is more, institutions need to ensure that human resource policies take into account disability-specific needs such as physical accessibility and access to information and communication technologies. Moreover, interaction with staff and clients with disabilities to ensure that inclusion becomes part of the permanent corporate culture.
In conclusion, disability is both a cause and a consequence of poverty, contributing to increased vulnerability and social exclusion of persons with disabilities from mainstream socio-economic advancement. Majority of persons with disabilities in the world venture into self-employment through micro enterprise development. The main barrier to a greater uptake of informal sector work by persons with disabilities is lack of access to comprehensive financial services including credit. Therefore, existing financial institutions and services must be opened up to persons with disabilities to make inclusion a reality.
The United Nations Sustainable Development Goals make explicit reference to persons with disabilities and carries the tagline, “Leave No One Behind.” It is indisputable that, to meet poverty-reduction targets, persons with disabilities must move from the periphery to the centre of the world’s poverty alleviation effort on the financial sector ecosystems.
The writer is a Policy & Strategy Specialist at Chemichemi Foundation
