Submission by Outright International to the European Bank for Reconstruction and Development (EBRD) of comments on the Draft Gender Equality and Human Capital Strategy 2026–2030

The draft GEHC Strategy appropriately recognizes the causal role of gender norms in constraining women's accumulation of human capital. It notes that disparities faced by women are “the result of deep-rooted structural barriers.”   The GEHC emphasizes that “[a]mong the most persistent barriers are rigid social norms and entrenched stereotypes.”   These insights reflect a well-established understanding that, for women, “restrictive social norms … hinder their ability to invest in and realize their human capital.”

However, the draft Strategy does not extend this causal analysis to the exclusion of LGBTIQ people. While it acknowledges that LGBTIQ individuals face discrimination, the GEHC frames this exclusion primarily as a consequence of group-specific bias similar to exclusion faced by other intersectional identities, such as war-affected workers,  or those excluded because of age, disability, or geographical location. Missing from the analysis is the more fundamental point that the same gender norms identified as constraining women’s human capital are also a primary driver of exclusion affecting sexual and gender minorities. The central premise of the gender strategy is that inclusive economic growth is constrained when segments of the population cannot fully participate due to social norms or structural barriers.  

Treating LGBTIQ exclusion as parallel rather than as structurally linked to gender norms will limit the GEHC's impact.  As the Strategy is currently written, a reader can easily conclude that discrimination against LGBTIQ people is collateral to, not part of, a gender analysis.  The GEHC should explicitly recognize this link, making it part of the gender analysis that underlies project development and strategic discussions at the EDRB and among clients. Not explicitly including LGBTIQ people has economic consequences.  The strategy's premise is that economic growth is constrained when segments of the population cannot fully participate because of social norms or structural barriers.  To achieve its goals of inclusive economic growth, the EBRD must support activities that challenge the gender norms constraining the economic potential of LGBTIQ populations.

A growing body of development policy and research makes clear that gender norms restrict the capabilities of people across the full spectrum of gender and sexual diversity. As recognized in World Bank analysis, “[d]eep-rooted social norms and expectations related to gender and gender roles often lead to inequality for women and girls, as well as sexual and gender minorities. Just as gender inequality in labor markets comes at great cost, SOGI exclusion significantly impacts economies, including at the level of GDP.”  Even more relevant is the World Bank’s gender strategy, which defines gender as “roles, behaviors, activities, and attributes that a given society at a given time considers appropriate for men and women, as well as encompasses the concepts of gender” diversity and gender identity.”  

The Inter-American Development Bank explicitly groups gender and diversity together in its corporate strategy documents, noting that “entrenched gender norms”  and “long-standing cultural and social norms”  link violence and discrimination against women and LGBTIQ+ people. Guidance from the OECD Development Assistance Committee recognizes that “gender norms contribute to the discrimination, marginalization and violence faced by LGBTQIA+ persons.”  

The mechanisms by which these norms constrain human capital are well documented. In education, stigma shapes school environments in ways that undermine both access to learning and the returns on it. LGBTIQ students frequently experience bullying, harassment, and exclusion, which disrupt educational trajectories, reduce attainment, and weaken long-term skill formation. These effects are cumulative: early exclusion reduces incentives to invest in education and limits future economic participation. 

Health is another critical channel. Social stigma and discrimination contribute to increased exposure to violence, chronic stress, and barriers to accessing healthcare. These factors lead to poorer physical and mental health outcomes, which in turn reduce individuals’ capacity to learn, work, and participate productively in the economy. At the same time, fear of discrimination can deter individuals from engaging with health systems altogether, further compounding disparities and diminishing human capital over time. 

In labor markets, these constraints persist and intensify. Discrimination in hiring, workplace harassment, and occupational segregation limit access to employment, reduce job stability, and suppress returns on education and experience. As a result, individuals are often unable to apply their skills in roles that match their capabilities, leading to underemployment and lower productivity. Across education, health, and employment, these dynamics create a cumulative process in which stigma reduces both the development of human capital and its effective use.  Cumulatively, these costs add up to as much as 1 - 3% of the GDP.