Transforming the economy by financing for gender equality and women's empowerment

 

 

Transforming the economy by financing gender equality and women's empowerment

Key challenges

There is a lack of awareness on leveraging the benefits of financing for gender equality and women's empowerment. Financial institutions are not fully aware of how they can use financial products and services to support SDG achievement. Many governments have yet to recognize the importance of gender equality for sustainable development, so there is a less political commitment in this area.

What is the gender gap?

The gender gap refers to the differences in opportunities and access to resources between men and women. It is not the same as gender inequality when one gender has more opportunities or resources than another.

The term "gender gap" implies that biases against women cause it. Still, many times this isn't true: sometimes the tendency comes from favouring men over women, sometimes it's just a difference in preferences between men and women (e.g., some studies show that young girls are less likely than boys their age to want careers in science), other times it's due entirely to random chance (e.g., someone with a given name happens to be born into a society where its meaning is associated with male behaviour).

Changing the way we work and live, together

Supporting women's economic empowerment is not just the right thing; it also makes good business sense.

We now know that countries that empower women are growing faster than those that don't. We need more of this kind of understanding to drive change across sectors and communities worldwide. Businesses can take the lead here by investing in their female talent and setting the agenda for change at all levels—from sourcing raw materials from diverse suppliers to implementing policies that promote gender equality across their supply chains, operations and workforce (including boardroom representation). Investing in social infrastructure will help unlock new markets for growth. At the same time, ensuring companies remain competitive in an increasingly globalized economy where talent is scarce.[1]

There are four fundamental principles for achieving gender equality and women's empowerment through sustainable economic transformation.

Gender equality and women's empowerment are critical to economic growth, poverty reduction and sustainable development.

In particular, promoting an equal distribution of resources between men and women will help address the root causes of gender inequality. It involves ensuring that girls have access to quality education, ensuring that women have access to productive land, providing opportunities for women farmers to form cooperatives or associations with other women farmers to learn new skills, etc.

In addition, many studies show that when women participate in decision-making processes at all levels (households, communities, governments), they tend to invest more in their children than men do when it comes to education expenses or health care costs. They know better what those expenses entail since they experience them every day – unlike men who pay for them without understanding how much time their wives put into raising children (or caring for elderly family members).

Why are fiscal policies so critical?

When it comes to gender equality, tax policies are essential because they significantly impact our lives. Tax policies can have a profound impact on future generations as well.

Taxes shape the future for women and men alike, so taxes must help reduce gender inequalities in society. Taxation is also one of the most effective ways governments can use public funds to promote gender equality and women's empowerment.

Countries can use tax policies to close the gender gap by incentivizing positive behaviours such as investing in health care services or providing incentives for employers who have female workers on their payrolls.

How significant are fiscal policies in the promotion of a gender-sensitive economy?

Fiscal policies have an essential role to play in promoting a gender-sensitive economy.

A gender-sensitive approach to fiscal policies can help raise more revenue from taxpayers and redistribute resources more equitably. For example, in Kenya, women pay less income tax than men because they earn lower wages and cannot benefit from the same tax exemptions offered to men (KIGE 2013). A similar situation exists in Tanzania, where women's share of total national revenue is only 12%, even though they make up two-thirds of the country's labour force (UNDP/GEF 2017a).

Women's contributions to taxes, both direct and indirect, are often overlooked. If women were paid equally with men for their work today, global GDP would increase by 26% by 2025.

Beyond fiscal policies - Addressing gender inequality in other areas.

Gender inequality is not just an economic problem but plagues every aspect of our society. It manifests in discriminatory laws and policies, inadequate data; gender-based violence; gender-biased social norms and stereotypes; and a lack of women's decision-making participation.

There has been limited progress in some countries like Afghanistan, Angola, Burkina Faso, and Senegal, where gender gaps are most significant. While some countries have made significant improvements in recent years (such as South Africa), others have stagnated (like South Korea).

Wages, jobs and care - progress, but more to do!

The report shows that there has been progress. Still, more needs to be done for women's economic empowerment to become a reality.

The gender pay gap is still high, and women earn less than men in most countries, even when they have the same qualifications. "In nearly all countries, women are underrepresented in management positions and science and technology professions," the report says.

Underrepresentation of women also relates to the unpaid care work: time spent doing this reduces opportunities for paid employment or investment in skills development. The World Bank estimates that women carry out two-thirds of all unpaid care work globally - an estimated value of US$10 trillion per year! It also accounts for 70% of household chores globally (including food preparation).

Addressing inequalities in unpaid care work.

Women are disproportionately affected by unpaid care work, which women often perform. Women spend two and a half times more time than men on outstanding care work such as cooking, cleaning, washing clothes and providing health care for children or the elderly.

Gender-responsive social protection systems can support women's and men's ability to balance paid and unpaid work. Providing adequate cash transfers to families that can meet basic needs can reduce the amount of time needed for women to carry out due care work while simultaneously increasing their freedom of choice regarding what they do with their time outside the home.

The government can also promote gender equality through its public services. Providing education facilities that cater specifically to girls' needs will help ensure that they have equal access to education levels on par with boys; this will increase girls' empowerment in both economic and political spheres.

For sustainable economic transformation that leaves no one behind, governments need to harness their revenue potential through fair and progressive tax systems; invest in social infrastructure such as care services that provide essential support to women and men alike; and increase women's labour market participation by improving labour standards, promoting equal pay for work of equal value and addressing discrimination.

Governments need to harness their revenue potential through fair and progressive tax systems; invest in social infrastructure such as care services that provide essential support to women and men alike; and increase women's labour market participation by improving labour standards, promoting equal pay for work of equal value and addressing discrimination.