I opened my first bank account as a new student at the London School of Economics in 1987. This seemingly small act meant that I could manage my own finances, spend my own money, and make my own financial decisions. It meant freedom to decide for myself.
That financial freedom is still elusive to 980 million women around the world. And, worryingly, this does not seem to be improving. Our Global Findex database shows that
There are some bright spots. In Bolivia, Cambodia, the Russian Federation, and South Africa, for example, account ownership is equal for men and women. And in Argentina, Indonesia, and the Philippines, the gap we see at the global level is reversed—women have more accounts than men.
But there are also some very troubling, and persistent gaps. The same countries that had gender gaps in 2011 generally have them today. In Bangladesh, Pakistan, and Turkey, the gap in account ownership between men and women is almost 30 percentage points. Morocco, Mozambique, Peru, Rwanda, and Zambia also have double-digit differences between men and women.
We need to make sure that everyone has the opportunity to work, earn, and participate in his or her economy. This is at the core of our work at the World Bank Group, especially as we look at the skills people will need for the jobs of the future.
But there are some reasons that keep women specifically from opening accounts.
Countries have to do better in unraveling the complicated web that women face when they try to do something that for a man, is quite simple. How can we level it up? Let me suggest three things as a start:
Photo: Carol Mitchell | Flickr Creative Commons
As the backbone of development, infrastructure provides vital support for the twin goals of poverty reduction and shared prosperity. Considering the different needs, roles, and responsibilities of men and women in infrastructure design makes the achievement of these goals more sustainable.
Women and men face constraints both as beneficiaries and producers of infrastructure services. For example, there can be inequitable access to roads, financing for electricity connections, or clean water. There are also inequities in the infrastructure business value chain: Do utilities have a balance of women and men on technical and leadership teams? Is there diversity on boards, with regulators or policy makers? Are women-owned firms in supply chains?
When we speak of gender equity in education in developing countries, and particularly in the South Asian context, we immediately think of the disadvantages girls face in access to education. The case in Sri Lanka, however, will make you think twice.
While most of South Asia still faces the gender gap challenge in favor of boys, we think that Sri Lanka’s educational gender gap favors girls. Like their counterparts in most high-income countries, Sri Lankan girls are consistently outpacing boys both in terms of educational access and achievement.
Since childhood, Gircilene Gilca de Castro dreamed of owning her own business, but struggled to get it off the ground. Her fledgling food service company in Brazil had only two employees and one client when she realized she needed deeper knowledge about what it takes to grow a business. To take her business to that next level, she found the right education and mentoring opportunities and accessed new business and management tools.
- financial inclusion
- International Finance Corporation
- Goldman Sachs
- Small Businesses
- Overseas Private Investment Corporation
- Career & Money
- Income Inequality
- Gender Gap
- Private Sector Development
- East Asia and Pacific
- Latin America & Caribbean
- Congo, Democratic Republic of
- United States
These are some of the views and reports relevant to our readers that caught our attention this week.
Tomorrow’s world: seven development megatrends challenging NGOs
As we move into 2015, many UK-based NGOs are wondering how to meet the challenges of a crucial year. What is the unique and distinct value that each organisation, and the UK sector as a whole, brings to international development, and how might this change in future? To help the sector get on the front foot we have identified seven “megatrends” and posed a few questions to highlight some of the key choices NGOs might need to make. At the end of next week we’ll be concluding a consultation with DfID on the future of the sector – all your thoughts are welcome.
Why emerging markets need smart internet policies
The Alliance for Affordable Internet (A4AI) has released its latest study into, well, the affordability of internet access. The study shows how big the challenge is on that front in emerging markets – for over two billion people there, fixed-line broadband costs on average 40 percent of their monthly income, and mobile broadband costs on average 10 percent of their monthly income. The United Nations’ “affordability target” for internet access is five percent of monthly income, so there’s clearly a ways to go in many developing countries. Almost 60 percent of global households are still unconnected and, unsurprisingly, those who can’t afford to get online tend to be poor, in rural communities and/or women.
Women are less productive farmers than men in Sub-Saharan Africa. A new evidence-based policy report from the World Bank and the ONE Campaign, Leveling the Field: Improving Opportunities for Women Farmers in Africa, shows just how large these gender gaps are. In Ethiopia, for example, women produce 23% less per hectare than men. While this finding might not be a “big” counter-intuitive idea (or a particularly new one), it’s a costly reality that has big implications for women and their children, households, and national economies.
The policy prescription for Africa’s gender gap has seemed straightforward: help women access the same amounts of productive resources (including farm inputs) as men and they will achieve similar farm yields. Numerous flagship reports and academic papers have made this very argument.
A commitment to gender equality in economic outcomes, as in other areas of social development and human rights, has emphasized women's empowerment. There is evidence that expanding woman's opportunities - particularly in the areas of health, education, earnings, civic rights, and political participation - decreases gender inequality and accelerates development. However, despite important advances towards equality, gender differences in many socioeconomic outcomes still persist. In light of this, policy makers and social scientists have shifted attention to the role of men in reducing gender disparities.
The 2012 World Development Report, Gender Equality and Development, argues that gender equality “contributes to economic efficiency and the achievement of other key development outcomes.” U.S. Secretary of State Hillary Clinton stated at the APEC Women and the Economy Summit that “the increase in employment of women in developed countries during the past decade has added more to global growth than China has, ” and argued that incorporating women into the formal workforce is critical for economic progress. Understanding how major policy changes affect women’s employment and the gender wage gap is therefore critical for implementing future policies that may affect women’s status and opportunities.
The phrase “gender gap” may be well known – but what about the gender gap for data? Today at an event at the Gallup Organization in Washington, D.C., U.S. Secretary of State Hillary Clinton and World Bank Group President Jim Yong Kim called for better data-gathering on girls and women as an essential way to boost women’s empowerment and economic growth.
“Gender equality is vital for growth and competitiveness,” said Dr. Kim at “Evidence and Impact: Closing the Gender Data Gap” in Washington, co-hosted by the State Department and the Gallup Organization.
But the lack of gender-disaggregated data hampers development efforts in many countries, Dr. Kim said.
“We need to find this missing data. We need to make women count.”
Before I started working on the World Developmnet Report 2012 (WDR), I often thought of gender equality being at the periphery of my work on development. Like many other World Bank colleagues, I would have told you: “Yes, gender equality matters and it is a good thing.” But in my mind gender equality was something that happened pretty much automatically with economic development. If asked about policy priorities, I would say: focus on growth, on creating jobs, on reducing poverty and improving equity in opportunities, and gender equality will come right along. But I was wrong. Gender equality is not just something that ‘happens’ with development. Gender equality is both fundamental to and a means for development. And countries need to work hard at achieving it, because it does not come about on its own with economic growth.