Women’s Economic Empowerment: the Untapped Potential for Social Change

Women represent half of the world’s population and yet only 55% of them are employed, in comparison to 79% of the male population (Organisation for Economic Co-operation and Development [OECD]). Throughout the world, women have limited decision-making power over economic and financial resources. For example, women in countries such as Norway and Iceland have wider access to educational and work opportunities than women in other parts of the world, but in terms of economic participation they only occupy the 13th and 17th places (World Economic Forum, 2005).

Despite significant progress in recent decades, women’s contribution to the labour market and economic growth remains far below its potential. Women experience barriers in almost every aspect of work, and in many regions women perform the bulk of unpaid labour. In addition, the principle of equal pay for work of equal value (International Labour Convention [ILO] No. 100) has not yet been realised across all sectors and States. Women still face wage differentials compared to their male colleagues. For example in 2011, the ILO reported that in the European Union, women earn on average 17.5% less than men during their lifetimes. Barriers exacerbating gender inequality in pay include: different perceived roles and careers for women; lack of social infrastructure to allow women to balance work life with domestic commitments; and less emphasis on the preparation of women for leadership and decision-making roles in their societies. These unequal opportunities between men and women continue to hamper women’s ability to lift themselves out of the poverty trap and access more professional options to improve their lives.

Millennium Development Goal (MDG) 3 is to promote gender equality and to empower women. To achieve greater progress on MDG 3, equitable access to infrastructure and financial resources is critical for women’s economic empowerment, sustainable economic growth and development (UN Department of Economic and Social Affairs, 2009). Concrete policy requirements that recognise legal protection for economic rights of women must be introduced, while at the same time encouraging culturally and traditionally motivated change. These are critical steps to help women realise their financial independence and empowerment.

Women are vulnerable to financial hardship in part due to traditional norms, which see men as the breadwinners and providers in their society and women as the care providers. To help break this socio-cultural norm, education is the most fundamental instrument for empowering women in all spheres of society. The International Federation of University Women (IFUW) urges all States to prioritise financial literacy in the education system, which enables women to take charge of their own economic independence and must be fostered from an early age as part of the school curricula. Women’s access to financial empowerment gives them the confidence they need to properly manage their personal and household expenses. It also equips them with management skills on how to become entrepreneurs.

Particularly at-risk groups including women with disabilities and those from indigenous, minority and migrant backgrounds face increased marginalisation from economic participation. Policy makers must ensure that women with disabilities are provided with tailored education and training, while legislation must prevent employers from discriminating in hiring practices. IFUW believes that indigenous and minority women should not be practically prevented from accessing learning due to linguistic, geographical or other barriers. It is critical for States to incorporate technology and non-traditional means of education to allow these marginalised women access to the job market. Studies indicate that female migrant workers often work as domestic workers and in unregulated, informal sectors. As such, these women are under-represented in professional and skilled jobs (UN Women, 2011). Migrant women are vulnerable to abuse such as working long hours, low wages and poor working and living conditions. To increase the economic protection of female migrant workers, the empowerment of women should be a specific target in all migration policies. A number of key recommendation to focus on, includes;

• Recognising equivalent foreign qualifications and providing transfer programmes to align foreign with national qualifications.
• Incorporating gender perspectives in legal policies.
• Investing in free language programmes to assist in integration and access to the job market
• Providing evening, part-time or other vocational training to allow migrant workers the opportunity to access formal education, skills training and work ready programmes.

When women are economically empowered, there are many positive outcomes for their communities. A study by the Global Economics (paper no.154) found that when women participate in the labour force, global economies grow. For instance, raising female employment to male employment levels would increase United States gross domestic product (GDP) by 9%, the Eurozone by 13% and, Japan by 16%. In other words, investing in women empowers them to effectively contribute financially to their countries, helps women raise educated families and equips them with leadership skills for strengthening their communities.

Lorraine Mangwiro, IFUW