Women empowerment: A dismal global picture

In the end, Hillary Clinton could not shatter what she called the “highest, hardest glass ceiling”. But away from that electoral battle, it is time to pause and look at two incongruous trends in women empowerment. On the one hand, there is a growing recognition of the need for empowering women the world over, irrespective of the level and status of development of the nation. At the same time, the reality is that we have a global order in which gender discriminatory practices thrive, making it that much more difficult for women to contribute to the growth of nations.

Approximately 60 per cent of economies do not have laws mandating gender non-discrimination in hiring and equal remuneration for work of equal value. Such laws are more common in OECD high-income economies, followed by economies in Europe and Central Asia.

The bitterness of the US election as also the anti-women and ugly remarks of the GOP nominee Donald Trump, who eventually (and convincingly) won the race to the White House, is in itself a reminder of the prejudices at work in what is considered a leading developed economy and the most powerful democracy. The story elsewhere around the world is no better. When it comes to women empowerment, the world is a backyard of underdevelopment.

Women account for nearly 50 per cent of world population but account for only about 41 per cent of the formal work force. Approximately 60 per cent of economies do not have laws mandating gender non-discrimination in hiring and equal remuneration for work of equal value. Such laws are more common in OECD high-income economies, followed by economies in Europe and Central Asia. Women’s earnings globally are estimated to be on average 77 per cent of men’s earnings and the magnitude of the wage gap varies significantly by economy, sector and occupation.

These data points are reported in the World Bank Group flagship report, Doing Business 2017, which compares business regulation for domestic firms in 190 economies. This is the 14th edition of the report but the first time gender specific scenarios have been discussed and their linkages to doing business reported by the World Bank.

In emerging market economies, between 31 and 38 per cent of formal small and medium size enterprises have only one women owner. But the average growth of these firms is reported to be significantly lower than that of male owned firms. The gender gap in women’s entrepreneurship and labour force participation account for a total income loss of 27 per cent in the Middle East and North Africa, a 19 per cent loss in South Asia, a 14 per cent loss in Latin America and the Caribbean and a 10 per cent loss in Europe. Globally, if all women were to be excluded from the labour force, income per capita would be reduced by an alarming 40 per cent.

The gender focus of the World Bank report this time discusses three indicators (a) starting a business (b) registering property and (c) enforcing contracts in order to study the impact of gender discriminatory practices.

The report points to linkages between school attendance by girls and opportunity to work: less girls will attend secondary school “as families may decide that it is not worthwhile to invest in girls’ education in economies where women face legal barriers to labour market access”.

The area of company incorporation, for example, now explores whether companies owned by women have the same registration requirements as companies owned by men. It finds that in some economies, women must submit additional paperwork or authorisations from their husbands. In the case of property transfers, there is a new focus on property ownership and how different sets of rights between men and women affect female entrepreneurs’ access to credit. Finally, when it comes to gender equality in court, the enforcing contracts indicator now highlights places where a woman’s testimony is given less weight in court than a man’s, thereby putting her at a fundamental disadvantage in commercial dealings.

The report shows that women are facing higher barriers while starting a business or getting a job compared to men. In as many as 155 economies, women do not have the same legal rights as men, much less the supporting environment that is vital to promoting entrepreneurship.  

Restrictions on working hours for non-pregnant and non-nursing women are present in 18 per cent of economies and are most common in the Middle East and North Africa.  Legal barriers to women’s work in certain industries and occupations are much more common—100 out of 173 economies for which data are available prohibit women’s participation in certain economic activities. For an example, in the Kyrgyz Republic women cannot enter approximately 400 professions and in the Russian Federation women are barred from 456 specified jobs. Such legislation is often meant to protect women’s interests but has been associated with occupational segregation and larger wage gaps.

In the above context, it is worthwhile to examine the Indian scenario. The constitution of India protects women from many areas of discrimination. Women do enjoy equal rights and privilege as men in many areas. But female labour force participation is low at 29 per cent, marginally better than Pakistan, which is at 26%, and far lower than Bangladesh at 60 per cent. India is the lowest in female labour participation of BRICs economies –Brazil reports 65 per cent, the Russian Federation is 69 per cent and China is at 70 per cent.

In India, the law does not still mandate equal remuneration for work of equal value, prospective employers are not prohibited to ask about family status and mothers are not guaranteed an equivalent position after maternity leave.

Though there are special provisions for women empowerment, like a 33 per cent reservation in local panchayat governments and free education for the girl child, the benefits may not accrue. The report points to linkages between school attendance by girls and opportunity to work: less girls will attend secondary school “as families may decide that it is not worthwhile to invest in girls’ education in economies where women face legal barriers to labour market access”.

The message is clear: More policy reforms are required in the areas of providing credit, getting land, enforcing contracts and overall for starting a business.  When it comes to women empowerment, there is a lot remaining to be achieved globally.

(Dr.R K Pattnaik is Professor, SPJIMR. Jagdish Rattanani is Editor, SPJIMR. Views re personal)