day 18 - economic empowerment

“Countries that do not capitalize on the full potential of one half of their societies are misallocating their human resources and undermining their competitive potential.”  –World Economic Forum

“It is impossible to realize our goals while discriminating against half the human race. There is no tool for development more effective than the empowerment of women." –Kofi Annan, former UN Secretary-General

How can countries lift their people out of poverty and transition from being a “developing” nation to a developed one? In countries where many live as subsistence farmers (and men are usually the breadwinners of a family), this transition from a barely-surviving to a fully-thriving economy seems almost impossible. Other developed countries can pour in aid, but unless a system of sustainability is established, relief organizations will remain for that purpose: relief. But by realizing the economic potential of women and giving them economic opportunity, countries can take another step towards gender equality and breaking the poverty cycle.

According to a report by the World Economic Forum, China ranks 9^th out of 58 countries in women’s economic participation, and 23^rd in women’s economic opportunities. Compare this to South Africa, where women’s economic participation is 39^th, and opportunity, 56^th. Part of the reason why China has modernized and become a tiger economy is because they recognize the extent to which women can positively contribute to their nation’s economy and GDP. Rather than refusing women economic participation, countries have capitalized on this human resource.

I don’t want to say that this system of economic empowerment for women is perfect, because it has its faults – for example, China’s capitalizing on its labor resources by providing factory jobs with low wages. Sweatshops have given women work, but the women are not paid much for their labor. According to the World Economic Forum, women “In some parts of the world provide upwards of 70% of agricultural labor, and produce over 90% of the food”. Allowing women to own their own land could not only provide a more stable food source, “increase agricultural production in developing countries by 2.5% to 4%, and reduce the number of hungry people by 17%” (Food and Agriculture Organization) – it can provide a form of economic empowerment for these women.

Over the next few days, we’ll be discussing education and microfinance business. Together, these can provide economic stability for women in developing nations. Their family’s economic standing becomes stronger, contributing to a stronger local economy; and with a stronger local economy, the nation’s economy is also strengthened.

Janna