A Global Imperative

A Global Imperative

Empowering women is critical for the world’s economy and people. One of the outcomes of the Aus4Reform Program's goal is to "Strengthen the basis of evidence and awareness of the relationship between economic empowerment for women (Women Economic Empowerment-WEE), reducing gender gaps in labor productivity dynamic and promote productivity growth”. Promoting a more equitable development process, reducing the gap between men and women in business, in labor force participation and labor productivity is expected to make an important contribution to the growth of productivity factors synthetic.

March 8 marks International Women’s Day, which provides a chance to reflect on the struggle for greater gender equality. The roots of this annual event reach back more than a century, yet its focus on respect and opportunities for women remains strikingly relevant today—from sexual harassment and violence to unequal laws and unfairness in the workplace, where women are too often underemployed, underpaid, and underpromoted.

Unequal or unfair treatment can marginalize women and hinder their participation as productive individuals contributing to society and the economy in invaluable ways. Yet when I consider the rich tapestry of organizations and individuals who can make a difference to ensure women have equal opportunities, I also see a crucial role for policymakers. They can use their positions to design policies that help women and girls access what they need for a fulfilling life—including education, health services, safe transportation, legal protection against harassment, finance, and flexible working arrangements.

The IMF recommends these kinds of policy measures to its member countries—and works with many governments to examine how policies affect women. In recent years we have increased our emphasis on women’s empowerment precisely because, beyond the important ethical considerations, it also represents a missed opportunity in the pursuit of macroeconomic stability and inclusive growth—where the IMF’s expertise lies.

Our research has shown, for example, that if women’s employment equaled men’s, economies would be more resilient and economic growth would be higher. Our new estimates show that, for the bottom half of countries in our sample in terms of gender inequality, closing the gender gap in employment could increase GDP by an average of 35 percent—of which 7–8 percentage points are productivity gains due to gender diversity. Adding one more woman in a firm’s senior management or corporate board—while keeping the size of the board unchanged—is associated with an 8–13 basis point higher return on assets. If banks and financial supervisors increased the share of women in senior positions, the banking sector would be more stable too.

The IMF’s 189 member countries face many different challenges, but empowering women remains a common denominator and a global imperative for all those who care about fairness and diversity, but also productivity and growth of societies and economies that are more inclusive. If we can achieve this, we all gain.

Source: Christine Lagarde/imf.org