Keeping women on the sidelines of the economy isn’t simply unjust—it’s self-defeating

It’s a shocking statistic: across the world today, more than 95 percent of women live in an economy that does not provide full legal equality—and not one economy has secured the legal rights needed for women’s full economic participation. Even in economies that have modernized their laws, women still face constraints that hamper the work they can do, the businesses they can start, and the safety they need to pursue opportunities. 

The gap grows larger the closer you look. Going by laws on the books, economies score an average of 67 out of 100 on the World Bank’s Women, Business, and the Law index measuring laws that support women’s economic equality—meaning women enjoy barely two-thirds of the economic rights accorded to men. But when it comes to actually enforcing the laws, the average score is 53. And when the systems needed to implement those rights are assessed for adequacy, the score is just 47.

The implications stretch far beyond fairness. At a moment when global growth is sluggish and demographic pressures are intensifying, leaving women on the economic sidelines is not simply unjust, it is self-defeating. A vast body of research shows that when women work, lead, and innovate, economies become more productive, firms perform better, and societies become more resilient. Gender inclusion strengthens labor markets, boosts productivity, and fuels economic dynamism. In some parts of the world such as South Asia, it may well be the single best strategy for increasing the growth potential of the economy.

Yet the regions that most need women’s contributions—the Middle East and North Africa, South Asia, and Sub-Saharan Africa—continue to maintain some of the most restrictive legal barriers to the full economic participation of women. These are also the regions where youth populations are expanding fastest. Without urgent reforms, millions of young women will remain locked out of the workforce just as their economies need their talent most. The opportunity cost of inaction is staggering.

Several barriers consistently block women’s full participation in economic life. Safety is one. When protections against violence are weak or poorly enforced, women cannot work, travel freely, or participate fully in public life. Childcare is another obstacle: In low-income countries, only 1 percent of essential childcare support frameworks are in place. Without reliable and affordable childcare, mothers face impossible trade-offs: cutting work hours, turning down opportunities, or stepping out of the workforce entirely.

Entrepreneurship ought to be a pathway to economic independence and innovation. Yet women continue to face significant barriers to credit, markets, and the enforcement of economic rights. Although the legal ability to start a business is nearly universal, only about half of the world’s economies guarantee equal access to finance. Without capital, women-led firms cannot grow and create jobs. They cannot innovate. They cannot contribute fully to economic development.

To be sure, progress is occurring and, in some places, it is even picking up pace. Between October 2023 and October 2025, 68 economies enacted 113 reforms to expand women’s economic opportunities. Governments strengthened protections against violence, expanded parental leave, raised childcare standards, guaranteed equal pay, and removed restrictions on women’s employment. Countries such as the Arab Republic of Egypt, Jordan, Madagascar, Oman, and Somalia took notable steps toward dismantling discriminatory laws. These reforms show that change is possible when political will coincides with economic necessity.

In general, however, progress remains terribly slow and uneven. If policy makers are serious about unlocking growth, they should quickly complete unfinished legal reforms and eliminate discriminatory provisions that remain in the books. They should then enforce these laws and regulations, so that rights granted in law translate into protection and opportunities in real life. And perhaps most importantly, they must strengthen the institutional arrangements—justice systems, regulatory bodies, and childcare services—that allow women to fully and easily exercise their rights.

No economy can afford to leave half its potential untapped. And no young woman wanting to work or run a business should find her future compromised by outdated laws or institutions that fail to uphold her rights.