In addition to posing a profound moral problem, social exclusion producesa tremendous inefficiency that is detrimental to the economy, democracy,and the whole of society. Discrimination leads to a very unequal distribu-tion of opportunities, which in turn prevents society from benefiting froma greater human capital, independent of race, that could contribute tohigher rates of production, productivity, and competitiveness. Therefore,discrimination impedes economic growth and poverty reduction.

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