economic image by WA State Library

Economic Empowerment of Women – economic

When we talk about “economic empowerment of women” we must understand that the biggest problem that women face today is that their work is not recognized at all. Women have always contributed to the society and the economy in the form of a helping hand in agriculture and food production in the developing countries and in the form of part time and temporary workers in developed countries. This is apart from their role as a homemaker which is not even valued economically. In fact the recent statistics of the UN tell us that 53% of work in developing countries is carried out by women and out of $ 16 trillion global output which is invisible, $ 11 trillion is contributed by women. Even after so much contribution there is a lack of acknowledgement regarding the role of women in every sphere of life. The problem is actually much larger than what we perceive and therefore the issue is not just about economic empowerment of women. It is in fact about the deep rooted bias and discrimination against women that is prevalent in the society.

Economic empowerment of women: Discrimination against women

It is ironical and sad to note that that there is a wide scale discrimination against women in virtually all aspects of life. She is in a disadvantageous and deprived position even as regards to basic rights like the right to education and health. Further she does not have access to capital or other resources to make an informed choice in her life. Women are kept out of the decision making power structure in every sphere of life including the political, economic, social and religious structures of the society. Coming back to the question of active contribution made by women in economic terms or otherwise we find that the society happily laps up the labour efforts of women in every part of the world but when it comes to sharing the spoils of that labour she is kept out. This is not only happening in the developing countries but it is also true for the developed countries where majority of women who are working in the informal economies as part time workers have less access to basic health care services, education, financial resources, employee rights and land ownerships. If we look at the “decision making structure” in any field whether it be economic, social, political or religious arena then we will find that it becomes virtually impossible for women to climb up the ladder and reach the positions that matter because of open discrimination and bias. But we cannot sit with all these problems and loathe about it. Somewhere we have to make a beginning and making a beginning at the economic front is the best step forward.

Economic empowerment of women: Income generation and increased flow of capital in the hands of women

A major initiative that is needed for changing the situation for women is to increase the flow of capital in the hands of women. More the women get financially empowered and generate income the more is the chance of her overall development and progress. This is because of the fact that women use a major chunk of their income for providing themselves and their family better healthcare, education and nutrition. Moreover steady income in hand makes women more confident to take economic and other decisions related to her family. It has been seen that when women start earning they also adopt more of environmental friendly lifestyle as well as they tend to have lower fertility rates leading to fewer children. Overall we can see that more the women are economically and financially sound more they become capable of taking informed choices about their life. Stable income and financial independence leads to improvement and progress of women through various efforts like contraception, age of marriage, fertility, child mortality and modern sector employment. Economic empowerment of women leading to steady income generation and financial independence will therefore definitely help women take decisions and select the best among choices in their personal and professional life.

Economic empowerment of women: Resistance to economic empowerment of women

We must acknowledge the fact that when we talk about economic empowerment of women and enhancing the financial independence of women we face great resistance from the current structures of the society at every level. The resistance comes in various forms and it is entrenched in the society as gender bias and gender discrimination. There are many ugly facets of it around the world and many of them are in the form of open physical and psychological abuse. One of the most common forms of abuse is violence against women. Violence against women is virtually seen in every part of the world. Major types of violence against women are in the form of domestic violence and rape. Apart from violence there is great gender discrimination and bias in the form of substandard and pathetic living conditions that is forced upon women. There are millions of women around the world who don’t have even their basic needs met in terms of food and nutrition, healthcare and education.

Further in many countries there are horrendous practices that are taking place and which can be equated to genocide amounting to crime against humanity. Female feticide falls in this category. Other evils like trafficking of young women and girl child, early marriage and dowry system play a major role in pulling down women to a life of infinite misery and suffering. In these conditions how can we think about economic empowerment of women? To top it all we can find a clear bias against women in the decision making power structures of the society which is insensitive to the cause of 50% of human population and which is in fact poorly represented by women in the first place. Fighting all these odds, even if women think about generating income on their own with the help of a economic enterprise then they face the hurdle of capital and other resources. In total women are in a highly disadvantageous and marginalized position. The tragedy is that this situation prevails even when studies show that once women are economically empowered they become the biggest assets of their family, the society, the nation and the world in terms of their savings and their efforts towards the overall development of the family, the society as well as the nation. This is true because when women starts earning, she channels back a major chunk of her earning into the family for better health, education and nutrition. This has a tremendous impact on the growth and development of the next generation who are the future seed of human evolution.

Economic empowerment of women: Statistics show the alarming situation

Statistics show how bad the situation is for women. As per recent UN figures, 60 % of the world’s 135 million children who are not getting education are girls. These girls end up living a life of drudgery, misery and open exploitation. Out of the number of girls going to primary school only 1 in 4 remain in school after four years and the rest who drop out are sucked back into the vortex of living hell with open marginalization, discrimination and abuse. It is shocking to note that out of the 880 million illiterate adults of the world two-third are women. What more proof we need to understand the circumstances of women in our society and the world.

Economic empowerment of women: Biased patriarchal structure and the need for fundamental change

We must recognize the fact that until we drastically change the structure of the society which is patriarchal and highly biased against one half of human population we can never think of eradicating the evils of gender bias and gender discrimination that exist in our society. Without the fall of the patriarchal structure based on power and control and replacement of it by an all inclusive structure based on unification of forces we cannot think of moving forward to achieve true economic progress and development. To change the existing structures women need to take initiative. They need to come forward for creating new structures which will positively empower them as well as act as a catalyst for massive change in the society. We have to make a beginning somewhere and the beginning can be through the economic empowerment of women. Only when women get empowered economically we can think about a movement which will work towards further change whereby better healthcare, education, housing and nutrition will be available for the next generation. The seed for change are the next generation and their future lies in the hands of women who are economically empowered today and who can make informed choice about their life and their family. So if we have to start somewhere it would be to work in the direction of economic empowerment of women. Only through this route we can think about tackling the many other aspects related to women’s empowerment. Every problem in the society today hits the women hard whether it is war, health issues like AIDS, poverty, violence, unemployment or population growth. The solution to all these problems is definitely complex but the initiative can begin with the economic empowerment of women.

Economic empowerment of women: Bringing women into the mainstream economy

When we talk of economic empowerment of women we need to understand one more point very clearly. It is a fact that despite efforts to bring women into the mainstream of economic activity, the majority of the active female population continues to be confined in the micro small-scale enterprises and the informal sector. This is represented by agriculture and daily wage jobs in the rural sector and part time jobs in the urban sectors. The big question is how to bring these women working in the informal sector into a broader loop where their rights are protected and where they are not exploited in any form. Formation of functional associations for the protection of the rights of women in these sectors needs to be a top priority. More than protection these associations should work towards finding means for overall development of their women members with a great focus on economic empowerment.

On the other hand there are also some indications that women are increasingly seeking self-employment in the formal private sector and that’s a good trend that needs to be encouraged further as it is a creative and generative form of economic empowerment. Moreover women are now organizing themselves into associations of entrepreneurs or bankers in order to enhance their economic status and have an impact on economic policies. However, their integration into the formal sector is still constrained by limited access to credit, property, technology and technical skills. Keeping all these developments in mind, creation of multilateral financial institutions exclusively catering to women at the international, national and regional levels would help cater specific financial needs of women at all levels and help faster integration of women in the informal, formal and organized sector.

Economic empowerment of women: Initiation steps for economic empowerment of women

Economic empowerment of women can be initiated by working on some very fundamental issues like training and education of women for gainful income generation, bringing about gender sensitisation in all spheres of human life as well as initiating awareness programs which can help women make informed choice regarding the various aspects of their life. The following are some major initiatives which can be taken towards economic empowerment of women

1. Recognizing that education and training are important for economic empowerment of women in the short term as well as long term periods.

2. To acknowledge and accept the glaring gender based bias that is so much prevalent in all parts of the world and taking concrete steps towards gender analysis and gender sensitization in every sphere of human life.

3. Empowering women who are part of the labour force by increasing awareness regarding the rights of an employee.

4. Work on the communication skills of women so that they become self-confident and master the technique of advocacy and negotiation.

5. Encouraging and supporting women entrepreneurs to develop marketable models of enterprise through expert guidance and “skills development” support.

6. Planning educational and training modules for women based on their professional as well as home commitments and helping women to balance between the two.

7. Using communication technology to galvanize women for a radical shift in their thinking through shared experiences of success and skills. These communication activities can be taken across the rural and urban landscape for motivating women to take up self empowerment programmes.

8. Educating and training women to gainfully engage in markets and institutions where they primarily go for generating income.

9. Publicizing the central role of women in the national economies and celebrating the success stories of women entrepreneurship and women professionalism in every field.

10. Gender training and sensitization of the current structures of the society represented by the government, social bodies and private enterprises.

11. Proving opportunities to women for interlinking and interacting across border for economic empowerment. Networking, export development and joint venture promotion among female entrepreneurs and relevant associations can be taken under the interlinking and interacting activities.

12. Improving the flow and access of credit and finance for women through financial institutions for female entrepreneurs at the governmental and social levels.

13. The access of credit to be financed through collateral for loans. Such loans should be made available to those women who do not have any individual resources, property and land rights. Further micro-finance schemes to be made available to women.

14. Building and strengthening networks where women come together from different nations and regions for common goals of economic empowerment of women. Such networks can influence the international and national policy formulation including international and national economic agreements. Further these networks among women from different nations can help in increased participation of women in the governmental structures like chambers of commerce, can help them access latest technologies, can help them access management and marketing skills and can help them in nurturing female entrepreneurs in the incubator centres for training and skills development.

The desire to live in a secure, maintenance-free home is among the reasons a growing number of independent women in Alberta are opting for condos when it comes time to get into home ownership.

For about 48 per cent of women across the province who responded to a Women and Home Ownership poll by TD Canada Trust, the cost of maintenance and repairs steered them away from buying a single-family detached home.

Nationally, 40 per cent pointed to maintenance costs as the main reason not to buy a detached home. But buying an apartment condo or townhouse is a different matter. There is little in the way of maintenance that isn’t taken care of for purchasers.

“My husband and I owned a home on a double lot,” says Carole Hackett. “I stayed there for a couple of years after he died, but the grass always needed cutting and there was always the maintenance, so I sold it.”

Hackett, who works as an assistant to Marlene Swinton of Real Estate Professionals Inc., bought a townhouse in northwest Calgary where she feels safe and secure.

“It’s a good neighbourhood, so when I want to travel, I just lock the door, tell my neighbours I’m going — and I’m gone,” she says.

Home ownership makes sense financially, says Swinton, who focuses much of her attention on finding condominiums for women.

“For many women, it’s the first time they owned a home on their own and it’s the best investment they can make,” she says.

Condo living also makes sense because they don’t have to worry about maintenance or their personal security, says Swinton.

Safety and financial security, along with lifestyle, were the main reasons why Stacey Taggart moved into a condo last fall.

Her work takes her away from the city for periods of time and she felt a condo would work better for her.

“I’ve owned homes before, but I don’t like a lot of space anymore so a condo was much more attractive to me,” she says.

Being centrally located, with access to shopping, entertainment and recreational outlets, the condo is a good fit for her lifestyle, says Taggart. “I’ve got all the space I need, a balcony for the views I have, and I can lock and leave.”

Second to security on the list of best things about owning a home (38 per cent) was not having to pay rent.

Chris Wisniewski, group product manager for real estate secured lending at TD Canada Trust, says 44 per cent -women surveyed in 2009 ranked financial security as the best thing about home ownership.

She says there are three main – why more women are getting into ownership:

- “They see more women doing it and decide that -they will do it as well,” says Wisniewski.

- There are more women in the marketplace and they are more able to afford a home.

- Because they typically don’t earn as much as men, women are taking advantage of low interest rates to buy.

Although financial security continues to top the list of ownership benefits, the survey also found the comforts of having a home are increasingly important to Canadian women.

According to the third annual survey, the key features of home ownership, in general, also include being able to renovate to suit individual tastes, along with having a garden.

But these traits are typically tied to detached home ownership, although they apply to some bareland condominiums (where buyers individually own their homes, but the land in the community is owned in common).

The financial benefits of home ownership are the main reason more women are buying, says Jessy Bilodeau, a Calgary-based mobile mortgage specialist with TD Canada Trust,

“They want to invest in their future, -build equity and to have a place of their own,” she -

|Women and home ownership poll

Women were asked nationally what they liked best – home ownership:

2008 2010

- Financial security 23% 44%

- Not paying rent or pay other people 19% 38%

- Having a place of my own 22% 34%

- Can decorate or renovate the way I want 14% 34%

Despite India’s rapid economic growth, why are more and more women opting out of the workforce?

A recent study casts light on this important and potentially worrying development in the Indian labor market. “Gender Diversity Benchmark for Asia 2011” by Community Business surveyed 21 large multinational companies in six countries in Asia — China, Hong Kong, India, Japan, Malaysia and Singapore — to see how women are doing at junior, middle and senior levels of management.

Here’s the “good” news, such as it is. The percentage of women in the companies’ workforce is of a similar magnitude to the national female labor-force participation rate in each country. In India, just under 25% of the total workforce in the companies surveyed are women, a bit below the national female labor-force participation ratio of 29% as measured in 2010. The top performer was China, with comparable statistics of 46% and 50%, respectively.

Women are best represented at the junior level, less so at the middle level and are least represented at the senior level, which is consistent with trends in developing and developed countries.

But here’s the bad news: India’s the worst performer in terms of the percentage of women at the junior and middle levels; China and Hong Kong are the best performers. At the senior level, India performs slightly better than Japan, but far below Malaysia, the top performer.

Another potentially disturbing finding is that India is unique in having the biggest percentage of women dropping out of the workforce, known as the “leaking pipeline,” between the junior and middle levels. In other countries, the biggest drop-off takes place between the middle and senior levels. The earlier the drop-off occurs, the smaller the base of people who could move up the ranks, and therefore the fewer women there will be in senior positions.

At the junior level, women comprise just under 29% of the workforce in these companies in India, which drops off to just under 15% at the middle level, an attrition rate of almost 50%, and to under 10% of the workforce at the senior level. Whichever way you look at it, India fares poorly in the results of this study.

These results are not outliers but in line with several recent reports which document a decline in women’s labor-force participation in India, which is at its lowest since 1993-94.

In the wider context, employment creation in India has been stagnant altogether, and the labor force has shrunk as discouraged workers — both men and women — have withdrawn from the workforce. Strikingly, between 2004-05 and 2009-10, less than a million new jobs were created despite the nation’s rapid economic expansion.

India may be unique among developing countries in featuring this U.S.-style “jobless growth.” Of course, these statistics do not capture work in the informal sector or unpaid work, such as at home, which is estimated to use a large proportion of women’s time in India.

At a basic level, poor continuation rates by women in corporate India reflect the low national female labor-force participation ratio. Digging deeper, Harvard economics professor Claudia Goldin famously argued that women’s participation in the workforce follows a U-shaped pattern. She originally had in mind the U.S., but the concept has been widely applied even to developing countries. Women’s participation first falls and then rises with income, according to this theory.

In the case of women working for multinationals, one reason for the falling part of the “U” may be that in two-earner families, enough income is being earned by the male partner. As female workers face the transition to middle management, with the additional time and responsibilities involved, a significant number decide to drop out of the workforce altogether to focus on household responsibilities. Their partner’s income provides the necessary financial cushion.

Women face the additional pressure of “daughterly guilt” — the family and social pressure to take care of elderly parents or in-laws. In India, domestic help and extended family typically help with child care and institutional options for elder care are considered culturally unacceptable. So the benefits of child care for a mother are often largely negated by the burdens of elder care.

However, at the very highest levels of management, career-minded women who’ve stuck around respond to the incentives that the higher income and greater responsibilities afford, which accounts for the rising part of the “U”. Taken together, this would seem to suggest that India indeed fits the Prof. Goldin’s U-shaped pattern.

And the reason it seems to be more pronounced in India than elsewhere in Asia may reflect the extent to which cultural patterns, and the associated societal pressures on women, are more engrained here than elsewhere, or at least one of the co-authors of the Community Business study believes.

As Prof. Goldin has rightly noted, “gender equality and economic development share a synchronous existence,” which is to suggest that they go hand-in-hand.

The presence of such a leaky pipeline in India suggests a failure of gender equality, in particular when one considers that India fares so much more poorly than the other countries in the study. It might just be that at India’s current level of economic development, which is yet to catch up to China’s let alone wealthy developed countries, the forces of economic and social change that will empower women have yet to be fully unleashed. Rupa Subramanya Dehejia writes Economics Journal for India Real Time. You may follow her on Twitter @RupaSubramanya.