Unlocking the Social Economy 2025

1.2 Marginalized communities at risk of exclusion While marginalization is context-specific and dependent on geography, historically marginalized groups are at greater risk of being excluded from the benefits of the green and digital transitions. They may face greater risks of exclusion because of several interlinked factors, including:  –Political marginalization: Historically, marginalized groups have had less political power and representation. This lack of influence means their needs and interests are often overlooked in policy-making processes.24 –Economic disparities: Marginalized groups often face higher levels of poverty and lower income levels.25 The high costs associated with green and digital technologies can be prohibitive for lower-income individuals, potentially skewing benefits towards wealthier groups.  –Educational barriers: As new technologies and sustainable practices emerge, there is a critical need to provide widespread access to training programmes for all. Lower levels of education and limited access to quality educational resources can prevent individuals in marginalized groups from gaining the skills and knowledge needed to participate in the digital economy and understand green technologies.26 –Lack of access to infrastructure: Marginalized groups often lack access to critical infrastructure and financing, including reliable internet, modern energy grids and transport networks, further isolating them from the benefits of green and digital advancements.27 The exclusion of marginalized groups has proven to be costly for both the individuals concerned, and wider society. Excluded individuals may face physical and mental health costs and loss of wages. For wider society, rising inequality has been associated with social discontent and contributed to increased political polarization. It can weaken trust in public institutions and undermines democratic governance.28 The economic costs of exclusion are also significant: globally, the loss in human capital wealth due to gender inequality is estimated at $160.2 trillion.29 In the US alone, it is estimated that the widening racial wealth gap will cost the country up to $1.5 trillion in economic growth by 2028.30 This translates to a cap on gross domestic product (GDP) growth of 6%.31 Image credit: Amazon Sacred Headwaters Alliance Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions 9