By Rajkumar Singh
The global economic security of women is a critical issue, as gender inequality in economic participation and opportunity continues to persist.
This encompasses women’s access to financial resources, employment, education, and the ability to build wealth over time. Several key aspects contribute to impact women’s economic security globally:
a- Workforce Participation and Gender Wage Gap: Women earn approximately 20-30% less than men for the same work globally, depending on the region. Representation in Leadership: Women remain underrepresented in senior management and board-level positions. Informal Employment: Many women work in informal sectors with low wages, lack of benefits, and minimal job security.
b- Education, Skill Development and Access to Education: Girls in many parts of the world still face barriers to completing education due to cultural, economic, or systemic factors. STEM Fields: Women are underrepresented in science, technology, engineering, and mathematics (STEM) careers, which are often higher-paying.
c- Financial Inclusion and Access to Credit: Women are often less likely to have access to formal banking systems or credit, limiting entrepreneurial opportunities. Wealth Gap: Women globally own less wealth than men due to historical and systemic inequalities in property rights and inheritance laws.
d- Unpaid Labour and Care Work: Women disproportionately shoulder unpaid domestic and care work, which limits their participation in the formal economy. Value of Unpaid Work: The economic value of unpaid care work globally is estimated to be trillions of dollars annually.
e- Legal and Policy Frameworks and Workplace Protections: Maternity leave, childcare support, and anti-discrimination laws vary significantly across countries, affecting women’s job security. Gender-Based Violence: Harassment and violence in and out of the workplace undermine women’s economic participation.
f- Efforts to Improve Economic Security and Education Initiatives: Expanding access to quality education and vocational training. Financial Empowerment: Microfinance, digital banking solutions, and policies to promote women’s financial independence. Policy Advocacy: Strengthening laws and policies to ensure equal pay, workplace protections, and social safety nets.
g- Support for Entrepreneurship: Providing resources, mentorship, and networking opportunities for women entrepreneurs. Investing in women’s economic security not only enhances their quality of life but also drives economic growth, reduces poverty, and promotes overall societal well being. Addressing these disparities requires coordinated efforts by governments, international organizations, businesses, and civil society.
Background and Need
Women’s economic security refers to the ability of women to have stable and sustainable access to income, resources, and opportunities to meet their needs and those of their families.
Historically, women have faced structural inequalities in economic systems due to social norms, discriminatory policies, and lack of access to education and financial resources.
a- Gender Inequality in the Workforce: Historically, women were excluded from formal labour markets or relegated to low-paying, informal roles. Industrialization and globalization have opened more opportunities, but a significant gender gap remains in wages, leadership, and workforce participation.
b- Legal and Institutional Barriers: In many regions, women lacked property rights, inheritance rights, and access to credit or land ownership. Gender-biased laws and cultural practices restricted women’s ability to build wealth and economic independence.
c- Unpaid Labour: Women have traditionally performed a disproportionate share of unpaid domestic and caregiving work, which has limited their participation in the formal economy.
d- Education Disparities: Limited access to education and vocational training, particularly in STEM fields, has restricted women’s earning potential and economic mobility.
e- Impact of Globalization and Crises: Global economic shifts have exposed women to vulnerabilities, particularly in informal sectors. Crises like pandemics, wars, and climate change disproportionately affect women’s economic security due to their roles in caregiving and subsistence farming.
f- Need for Women’s Economic Security: Economic security for women is essential for achieving gender equality, social development, and global economic progress. It benefits not only women but also their families, communities, and nations.
Key Reasons for Addressing Women’s Economic Security
a- Reducing Poverty: Women reinvest up to 90% of their earnings into their families and communities, compared to men’s 30-40%. Empowering women economically can help break cycles of poverty, especially in low-income households.
b. Boosting Economic Growth: Studies suggest that closing the gender gap in labour markets could add trillions of dollars to global GDP. Countries with higher female workforce participation often experience faster economic development.
c- Improving Family Well-Being: When women have economic security, families benefit through better access to education, healthcare, and nutrition.
d- Mitigating Vulnerability: Economic independence reduces women’s vulnerability to exploitation, abuse, and dependence on others. It strengthens resilience against crises such as unemployment, climate change, and pandemics.
e- Fostering Sustainable Development: Empowering women economically contributes to achieving the United Nations Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). Thus, the background and need for women’s economic security involves tackling systemic barriers, investing in education and skill development, promoting legal reforms, and ensuring access to financial resources and social protection systems. It is a crucial step toward achieving inclusive and equitable global development.
Challenges of economic security
Despite progress in gender equality, women worldwide continue to face significant barriers to achieving economic security. These challenges are deeply rooted in social norms, systemic inequalities, and structural issues in economies and societies:
a- Gender Wage Gap and Unequal Pay: Women earn less than men for the same work globally, with an average wage gap of 20–30%. Concentration in Low-Paying Sectors: Women are disproportionately employed in lower-paying industries, such as caregiving, retail, and hospitality.
b- Unpaid, Care Work and Disproportionate Burden: Women perform over 75% of the world’s unpaid domestic and care work, limiting their time for paid employment. Economic Invisibility: The economic value of unpaid work is not recognized in GDP calculations, underestimating women’s contributions to economies.
c- Financial Exclusion and Limited Access to Credit and Financial Services: Women often lack access to loans, credit, and banking services due to legal and cultural restrictions or lack of collateral. Gender Wealth Gap: Women own significantly less wealth than men globally due to historical inequalities in inheritance, property rights, and savings opportunities.
d- Vulnerability to Global Crises: Pandemics: COVID-19 disproportionately affected women, particularly in caregiving roles and informal sectors. Climate Change: Women, especially in rural areas, are more vulnerable to climate-related economic shocks due to their reliance on natural resources and subsistence farming. Economic Downturns: Women are often the first to lose jobs during recessions due to their concentration in less secure employment.
e- Social Norms, Cultural Barriers and Patriarchal Attitudes: Societal expectations about women’s roles often prioritize caregiving over careers, limiting their economic opportunities. Cultural Restrictions: In some regions, women face mobility restrictions or societal disapproval of working outside the home.
f- Digital Divide and Limited Access to Technology: Women, particularly in low-income countries, have less access to digital tools and the internet, which are increasingly critical for economic opportunities.
g- Digital Skills Gap: Lack of training in technology and digital literacy further widens economic disparities. A coordinated global effort by governments, businesses, and civil society is essential to overcome these barriers and achieve true economic security for women.
Author: Dr. Rajkumar Singh – Youth motivator and former Head of the University Department of Political Science, B.N. Mandal University, Madhepura, Bihar, India.
(The views expressed in this article belong only to the author and do not necessarily reflect the editorial policy or views of World Geostrategic Insights).
Image Source: World Economic Forum