Why identity matters for development

This paper argues that while development economics has moved beyond income-based metrics toward a broader capabilities framework, it remains insufficiently attentive to the role of social identity in shaping life chances. Identities such as caste, race, gender, and ethnicity structure access to resources, opportunities, and power in ways that conventional and multidimensional indices fail to capture. Drawing on evidence from global gender disparities and caste-based inequalities in India, the paper demonstrates how identity-blind policies risk reinforcing structural hierarchies. It concludes by advocating an identity-conscious development framework that centres historical injustice, targeted interventions, and inclusive governance to advance equitable development.