REDUCING GLOBAL POVERTY: The Role of Women in Development

AStatement by the Research and Policy Committee of the Committee for Economic Development

July 2003

CED is a nonprofit, nonpartisan organization of business leaders and educators that has worked for sixty years to address the critical economic and social issues facing American society.

REDUCING GLOBAL POVERTY: The Role of Women in Development

AStatement by the Research and Policy Committee of the Committee for Economic Development

July 2003 Library of Congress Cataloging-in-Publication Data

How economies grow : the ced perspective on raising the long-term standard of living : a statement on national policy / by the Research and Policy Committee of the Committee for Economic Development. p. cm. Includes bibliographical references. ISBN 0-00000-000-X 1. Economics—United States. I. Committee for Economic Development. Research and Policy Committee.

QA00.L00 2003 510’.71’073—dc21 2003043432

First printing in bound-book form: 2003 Paperback: $15.00 Printed in the United States of America Design: Rowe Design Group

COMMITTEE FOR ECONOMIC DEVELOPMENT 261 Madison Avenue, New York, N.Y. 10016 (212) 688-2063

2000 L Street, N.W., Suite 700, Washington, D.C. 20036 (202) 296-5860

www.ced.org CONTENTS

RESPONSIBILITY FOR CED STATEMENTS ON NATIONAL POLICY...... iv

PURPOSE OF THIS STATEMENT...... vi

EXECUTIVE SUMMARY...... 1

INTRODUCTION...... 2

THE ROLE OF WOMEN IN PRODUCTION...... 4 Agriculture...... 4 Industry/Export Trade...... 5 Entrepreneurship, Retail Trade, and Services...... 6

THE ROLE OF WOMEN IN THE FAMILY ...... 8

REMOVING RESTRICTIONS ON WOMEN’S ACCESS TO RESOURCES ...... 9 Education ...... 9 Health and Nutrition...... 11 Physical and Financial Capital ...... 12 Land Use and Property...... 14

CONCLUSION ...... 16

ENDNOTES ...... 17

OBJECTIVES OF THE COMMITTEE FOR ECONOMIC DEVELOPMENT...... 19

iii RESPONSIBILITY FOR CED STATEMENTS ON NATIONAL POLICY

The Committee for Economic Develop- specific legislative proposals; its purpose is to ment is an independent research and policy urge careful consideration of the objectives set organization of some 250 business leaders and forth in this statement and of the best means of educators. CED is nonprofit, nonpartisan, and accomplishing those objectives. nonpolitical. Its purpose is to propose policies Each statement is preceded by extensive dis- that bring about steady economic growth at cussions, meetings, and exchange of memo- high employment and reasonably stable prices, randa. The research is undertaken by a sub- increased productivity and living standards, committee, assisted by advisors chosen for their greater and more equal opportunity for every competence in the field under study. citizen, and an improved quality of life for all. The full Research and Policy Committee All CED policy recommendations must have participates in the drafting of recommenda- the approval of Trustees on the Research and tions. Likewise, the trustees on the drafting Policy Committee. This committee is directed subcommittee vote to approve or disapprove a under the bylaws, which emphasize that “all policy statement, and they share with the research is to be thoroughly objective in char- Research and Policy Committee the privilege acter, and the approach in each instance is to of submitting individual comments for publica- be from the standpoint of the general welfare tion. and not from that of any special political or economic group.” The committee is aided by a The recommendations presented herein are those Research Advisory Board of leading social sci- of the Trustee members of the Research and Policy entists and by a small permanent professional Committee and the responsible subcommittee. They staff. are not necessarily endorsed by other Trustees or by The Research and Policy Committee does nontrustee subcommittee members, advisors, contrib- not attempt to pass judgment on any pending utors, staff members, or others associated with CED.

iv RESEARCH AND POLICY COMMITTEE

Co-Chairmen GEORGE H. CONRADES CHARLES R. LEE Chairman and Chief Executive Officer Chairman PATRICK W. GROSS Akamai Technologies, Inc. Verizon Communications Chairman, The Lovell Group Founder and Senior Advisor, AMS RONALD R. DAVENPORT ALONZO L. MCDONALD Chairman of the Board Chairman and Chief Executive Officer BRUCE K. MACLAURY Sheridan Broadcasting Corporation Avenir Group, Inc. President Emeritus The Brookings Institution JOHN DIEBOLD NICHOLAS G. MOORE Chairman Chairman Emeritus John Diebold Incorporated PricewaterhouseCoopers Vice Chairmen FRANK P. DOYLE STEFFEN E. PALKO IAN ARNOF Retired Executive Vice President Vice Chairman and President Retired Chairman General Electric XTO Energy Inc. Bank One, Louisiana, N.A. T.J. DERMOT DUNPHY CAROL J. PARRY CLIFTON R. WHARTON, JR. Chairman President Former Chairman and Chief Executive Kildare Enterprises, LLC Corporate Social Responsibility Officer Associates TIAA-CREF CHRISTOPHER D. EARL Managing Director VICTOR A. PELSON Perseus Capital, LLC Senior Advisor UBS Warburg LLC W. D. EBERLE REX D. ADAMS Chairman PETER G. PETERSON Professor of Business Administration Manchester Associates, Ltd. Chairman The Fuqua School of Business The Blackstone Group Duke University EDMUND B. FITZGERALD Managing Director NED REGAN ALAN BELZER Woodmont Associates President Retired President and Chief Operating Baruch College Officer HARRY L. FREEMAN AlliedSignal Inc. Chair JAMES Q. RIORDAN The Mark Twain Institute Chairman PETER A. BENOLIEL Quentin Partners Co. Chairman, Executive Committee BARBARA B. GROGAN Quaker Chemical Corporation President LANDON H. ROWLAND Western Industrial Contractors Chairman ROY J. BOSTOCK Janus Capital Group Chairman Emeritus, Executive RICHARD W. HANSELMAN Committee Chairman GEORGE RUPP Bcom3 Group, Inc. Health Net Inc. President International Rescue Committee FLETCHER L. BYROM RODERICK M. HILLS President and Chief Executive Officer Chairman ROCCO C. SICILIANO MICASU Corporation Hills Enterprises, Ltd. Beverly Hills, California

DONALD R. CALDWELL MATINA S. HORNER MATTHEW J. STOVER Chairman and Chief Executive Officer Executive Vice President President Cross Atlantic Capital Partners TIAA-CREF LKM Ventures

JOHN B. CAVE H.V. JONES ARNOLD R. WEBER Principal Managing Director President Emeritus Avenir Group, Inc. Korn/Ferry International Northwestern University

CAROLYN CHIN EDWARD A. KANGAS JOSH S. WESTON Chairman Chairman and Chief Executive Officer, Honorary Chairman Commtouch/C3 Partners Retired Automatic Data Processing, Inc. Deloitte Touche Tohmatsu A. W. CLAUSEN DOLORES D. WHARTON Retired Chairman and Chief Executive JOSEPH E. KASPUTYS Former Chairman and Chief Officer Chairman, President and Chief Executive Officer BankAmerica Corporation Executive Officer The Fund for Corporate Initiatives, Inc. Global Insight, Inc. JOHN L. CLENDENIN MARTIN B. ZIMMERMAN Retired Chairman CHARLES E.M. KOLB Group Vice President, Corporate BellSouth Corporation President Affairs Committee for Economic Development Ford Motor Company

*Voted to approve the policy statement but submitted memoranda of comment, reservation, or dissent, See page 41

v THE PURPOSE OF THIS STATEMENT

In May 2002, CED released a policy state- ACKNOWLEDGEMENTS ment, A Shared Future: Reducing Global Poverty, This program statement was developed by which called on leaders of global enterprises CED staff under the guidance of the co-chairs “to rally public and private support for a strategy to of CED’s Subcommittee on Globalization, overcome global poverty.” This program state- Edmund Fitzgerald and Paula Stern. We are ment provides greater background and deep- grateful for the time, effort, and care they put er analysis than could be attained in the initial into the development of this report. policy statement with regard to the important The report was drafted by Elliot Schwartz, role played by women in both economic and Vice President and Director of Economic social change. In addition, this paper goes Studies at CED, with the able assistance of beyond the recommendations of the original Sylvia Ciesluk and Megan Kormi. Everett M. statement to recommend further measures Ehrlich, CED’s Senior Vice President and that both global enterprises and official devel- Director of Research, supervised the project. opment programs can take to help promote Isaiah Frank, CED’s Advisor on International development by promoting women’s roles. Economic Policy, contributed valuable com- ments.

Patrick W. Gross, Co-Chair Research and Policy Committee Chairman, The Lovell Group Founder and Senior Advisor, AMS

Bruce K. MacLaury, Co-Chair Research and Policy Committee President Emeritus The Brookings Institution

vi EXECUTIVE SUMMARY

The Chinese adage “women hold up half the sky” aptly captures the contribution of CED RECOMMENDS women to economic development. In most RESOURCES FOR WOMEN societies women are important productive “Special attention and resources should be agents in the economy. In addition, women dedicated to improving the status of take primary responsibility within families for women: investments in the education and the education and health of their members. health of women have high social rates of Yet many developing countries undervalue return because of their work and family roles.” women’s actual and potential contribution to economic and social advancement; some SOURCE: CED, A Shared Future: Reducing Global Poverty (New York, NY: CED, 2002), p. 6. actively discriminate against women. In many societies, cultural biases against women suppress their ability to contribute to the economy. also should support U.S. ratification of the In the developing world, women generally UN Convention on the Elimination of All face greater difficulty than men in securing Forms of Discrimination Against Women necessary resources and basic services—educa- (CEDAW). tion, health and nutritional services, physical Country development programs and inter- and financial capital, and land—that would national aid programs should promote needed make them more productive and allow them social, legal, and cultural changes that support to earn higher incomes. In addition to directly women. Reforms are especially needed to: improving economic productivity, reducing • Pass property rights laws that allow women discrimination against women and improving to hold individual or joint title to land; their access to resources would likely: • Lower fertility rates; • Establish labor policies that reduce wage gaps and incorporate supportive policies • Decrease incidences of child and maternal for female workers (such as child care and mortality; paid maternity leave); • Increase life expectancies; • Support women’s access to credit; and • Contain the spread of HIV/AIDS; • Guarantee equal access for women to • Increase household incomes; education and health resources. • Reduce malnutrition; and, The bilateral and multilateral aid programs • Improve overall health and well-being of all of developed countries should focus parts of society. resources on women’s needs by: In CED’s recent report, A Shared Future: • Incorporating interventions designed to Reducing Global Poverty, we called attention to increase access to the resources that sup- the role women play in developing countries. port women’s income earning and care This CED update expands on that recommen- giving roles; and dation and goes further to suggest specifically • Becoming more transparent and account- that U.S.-based businesses should support the able for outcomes, which would help equal status of women in all of their practices ensure that funds intended for women and programs in developing countries. They reach them.

1 Introduction

In June 2002, former U.S. Treasury try and region in which they live, in virtually Secretary Paul O’Neill visited a number of every nation women also play the primary role African nations, accompanied by the Irish in tending to the basic needs of their families. musician and activist Bono. Among other CED’s recent report, A Shared Future: Reducing accomplishments, the visit highlighted the Global Poverty, argues the case for investing in important roles played by women in those people generally, because such investments economies, as individuals, mothers, workers, improve lives and enhance the productive and entrepreneurs. In South Africa, they visit- capacity of the economy.1 Since women are ed a hospital where doctors were using a drug often neglected in these investments, the therapy to prevent transmission of the AIDS report specifically recommends: special atten- virus from mother to child. At a Ugandan vil- tion and resources be dedicated to improving lage, they met with women who travel several the status of women; investments in the educa- miles daily to fetch water needed for the tion and health of women have high social household. Also in Uganda, they went to a rates of return because of their work and fam- restaurant that was started by a woman with ily roles. Similarly, development programs that micro-loan financing. They visited an assist small businesses, farmers, and other American software subsidiary in Ghana, where commercial ventures should recognize the hundreds of women are employed in data unique contributions of women. entry positions and paid three times the Despite the major role women play in national minimum wage. developing economies, and their potential to In most developing countries, women play contribute even more, the difficulty of access- significant roles as workers in the agricultural, ing resources and basic services denies many industrial, and service sectors of the economy women the opportunity to make such contri- and, although the specific roles and responsi- butions. The education and health status of bilities of women differ according to the coun- women and girls in the majority of developing countries are well below that of men and boys. Women farmers do not have the appropriate, simple tools that would enable them to RECOGNIZING THE ROLE OF WOMEN IN DEVELOPMENT increase food production and reduce the load and physical toil of their labor. Cumbersome “Nothing, arguably, is as important today in the political economy of development as an legal and cultural obstacles often prevent adequate recognition of the political, eco- women from gaining access to needed nomic, and social participation and leader- resources. Women are denied rights to land ship of women. “ and property in many areas, thus making it SOURCE: Amartya Sen, Development as Freedom, (New more difficult to secure loans or other forms York: Anchor Books, 1999) pp.104-107. of credit, and limiting incentives to invest and produce. Prohibitions on women’s property

2 Introduction

rights and other legal rights and gender gender inequalities would raise living stan- stereotypes concerning women in the work- dards by directly improving human capital force are just a few of the many obstacles and reducing population growth. Perhaps standing in the way of potentially large gains more important, eliminating gender inequali- for national economies, and for the quality of ty would directly improve the lives of women, life for women and their families. which in many societies are exceedingly harsh, This paper is focused primarily on the eco- and include such extreme forms of violence as nomic contribution that women make to their sexual assault, mutilation, sex-selective abor- societies, as both workers and family care- tion, and infanticide. Nobel Prize-winning givers. Research shows that gender inequality economist Amartya Sen has calculated that directly lowers labor productivity and creates there are more than 100 million “missing inefficiencies in the allocation of resources, women” in Asia and North Africa due solely to especially that of labor. Such inequality, as neglect of female health and nutrition. Almost noted by the World Bank, directly limits without exception, good corporate engage- growth by reducing the economy’s flexibility, ment is good both for the firm and for the responsiveness, and dynamism.2 Eliminating economy and society overall. 3

3 The Role of Women in Production

Women are a key element of the world’s to the lowest class live and work more like labor force, with the potential to contribute African women. substantially more to the growth and develop- ment of their nations. Women work in almost every part of both the formal and informal AGRICULTURE sectors of developing economies. In many The United States Agency for International poorer countries, women play an especially Development (USAID) describes women as large role in subsistence agriculture and earn “the backbone of the world’s agricultural supplemental income for the family through labor force.”7 In many countries, women per- production and trade in the informal sector— form the majority of the work in food produc- defined as producing goods or services on a tion, yet their role is seldom incorporated into small scale, with labor relations based on casu- agricultural policy, and they are often over- al employment, kinship, or social relationships looked by official development projects and rather than contractual arrangements. Income improvement and extension efforts. derived from trade of food, textiles, and other Worldwide, rural women are responsible goods in local markets supports the house- for half of food grown.8 In developing coun- hold and contributes to national production. tries, they comprise about 67 percent of the In some countries, such small-scale trading by agricultural labor force and produce between women in the informal economy can account 60 and 80 percent of food.9 Women’s role in for as much as 30-50 percent of GDP.4 agriculture varies among different regions in Women’s work roles differ significantly the developing world. In Africa, where a tradi- along regional as well as class lines. Worldwide tion of subsistence food production predomi- female participation in the formal labor force nates, nearly all tasks connected with food averages nearly 41 percent. In the Middle East production are left to women.10 A recent study and North Africa, it is about 27 percent.5 concludes that 70-80 percent of all subsistence Women in the Middle East frequently live in farming in Africa is carried out by women, veiled seclusion and do not work, while mostly because women work longer hours African women mostly work in the informal than their male counterparts.11 In different sector to feed themselves and their families.6 forms of agriculture, such as the plough culti- Latin American women are primarily involved vation systems more common in Asia, women in domestic activities and do very little farm- have a less substantial role. Nevertheless, ing. South East Asian women are known to Asian women are responsible for about 50 share in the burden of the household farm as percent of food production. Female participa- well as work in factories. In India, the roles of tion in the agricultural labor force in Asia women vary among the different castes; those varies widely, from about 35 percent (in at the highest levels have lifestyles similar to Malaysia) to 60 percent (in Thailand). The Middle Eastern women, while those belonging role of Latin American and Caribbean women

4 The Role of Women in Production

in agriculture is the smallest among develop- the Bank’s analysis, improving rural women’s ing regions, with participation rates ranging access to productive resources in Africa from 2 percent (Costa Rica) to 12 percent (including education, land, and fertilizer) (Mexico), although women in this region could increase agricultural productivity there maintain significant roles in subsistence farm- by as much as one-fifth.16 An increased focus ing, poultry and small animal production for on the role of women in agriculture could domestic consumption.12 also improve the effectiveness of rural devel- Researchers have noted that differences in opment programs. Rural aid programs would women’s participation rates among regions be more likely to increase food security, with different farming systems are correlated reduce poverty levels, and raise living stan- with the observation that women are generally dards if this aid were targeted and develop- restricted to the use of simple hand tools ment initiatives oriented towards women’s (more advanced machines, such as plows, are roles and needs, including promoting neces- generally controlled by men).13 Thus, women sary legal and social changes concerning dominate subsistence farming, while men play women’s property rights. a larger role in commercial agriculture. This division of labor in agriculture based on gen- der may have indirectly deterred increased INDUSTRY/EXPORT TRADE mechanization. Agricultural change has often Low labor costs have allowed many devel- stalled because both men and women refuse oping countries (led by the successful emerg- to do more work than is customary or work ing markets in Asia) to excel in the export of that is traditionally performed by the opposite simple manufactured products. Women work- sex.14 Development and modernization are ers make up a substantial portion of the low- slowed in these cases, and potential increases wage labor force employed in the manufac- in productivity are never realized. ture of these products. It has been noted that, In some countries, female participation is “In the contemporary era, no strong export beginning to increase in the traditionally male- performance in manufactures by any develop- dominated production of cash crops, and ing country has ever been secured without women are starting to contribute more directly reliance on female labor.”17 Even at low wages, to family cash income. Women have become employment in manufacturing has brought valued and sought-after workers in commercial about many gains for women, who most often plantations and agribusinesses, most notably in prefer such work to more difficult toil in the Latin America and Asia, primarily due to a fields. Industrial employment in many cases growing demand for agribusiness products and allows women to attain greater physical mobil- the lower cost of women’s labor relative to ity, personal autonomy, and the possibility of men. In addition, women workers generally breaking gender barriers and other means of are knowledgeable and experienced in agricul- male control.18 ture and have a reputation for “patience, dex- Women’s lower wages—on average two- terity, and attention to detail.”15 thirds the cost of male labor—are at least part- Because women work in all forms of agri- ly due to the perception that women’s tradi- culture in most present day developing tional childbearing and rearing roles reduce economies, their potential to improve the per- their commitment to formal-sector work. Most formance of this sector is substantial. World important, women are frequently equipped Bank research shows that agricultural growth with fewer skills than their male counterparts, is far below its potential, in part due to the due to the lower levels of investment made in lack of empowerment of women workers. In their education, health, and training.19 addition, overall economic growth would be Although women’s low wages have been a increased if resources were better allocated. In major contributing factor to the outstanding

5 REDUCING GLOBAL POVERTY

economic growth experienced in many bined female primary, secondary, and tertiary regions of the world, leading emerging mar- gross enrollment ratios range from a low of 45 kets have successfully shifted production to percent in Guatemala (somewhat of an out- more skill-based manufacturing that relies on lier, the next lowest is 62 percent in Jamaica), better-trained and educated workers. Korea, to a high of 86 percent in Argentina.22 Hong Kong and Malaysia, for example, have Sub-Saharan African nations have not diversified exports primarily by focusing on experienced growth in export manufacturing electronics manufacturing. Typically, a higher to the degree seen in Asian and Latin level of education and training is needed of American countries, and women remain con- electronics workers than of workers in indus- fined to production of traditional manufac- tries such as apparel or shoe manufacturing. tured items. In addition, African women’s Experience in those countries suggests that responsibilities in subsistence agriculture and training and educating women and girls pays in the home (water and fuel collection, cook- off in increased productivity. All three coun- ing, cleaning, raising large numbers of chil- tries have relatively high levels of female edu- dren) are so extensive that they rarely have cation, with female enrollment ratios in 1999 the time to work for pay in the organized of 85, 66, and 67 percent respectively for labor force. Korea, Hong Kong, and Malaysia.20 Countries that have relatively low female education lev- els and enrollment ratios, such as Bangladesh, ENTREPRENEURSHIP, RETAIL Morocco, and India, must rely on low-tech, TRADE, AND SERVICES low-skill manufacturing. Clothing is the largest Women’s entrepreneurship accounts for a category of exports in these nations. Failure to substantial portion of developing countries’ improve female education is likely to impede economic production and trade. However, these nations’ diversification into more prof- because the majority of women entrepreneurs itable industries. work in the informal sector of the economy, Latin American and Caribbean nations their contributions are often overlooked. have also experienced higher GDP growth Women-run enterprises tend to rely heavily on from exports of manufactured goods. With unpaid, informal workers and use less modern strong culturally derived gender roles in the machinery and technology than similar enter- region, Latin American and Caribbean prises headed by men. They tend to be con- women are often found in low-paid, low- centrated in traditional activities, such as skilled jobs especially in the production of tailoring, food preparation, and handicrafts. clothing and textiles.† However, as in Asia, In Bangladesh, for example, one fourth of women in this region are being increasingly women-run enterprises provide tailoring integrated into the modern sector, and the services, and 21 percent provide dyeing and range of opportunities available to them is printing services, both sub-sectors of a market greatly expanding. Thus, women are playing a in which male-run enterprises have a less than large part in the success of exports such as ten percent share.23 electronics, chemicals, and other manufac- Women-run enterprises also tend to be tures.21 The region also has relatively high concentrated in less lucrative sectors of vari- female school enrollment ratios. The com- ous industries. For example, although both men and women entrepreneurs are prevalent in the production of food products in the † Much attention has been directed to export manufac- turing sweatshops (also known as maquiladoras) which Philippines, women are almost exclusively arose in great numbers in Latin America in the late involved in general food production. In con- 20th century, and are known for hiring women who are paid significantly less, work longer hours, and are trast, male entrepreneurs are more highly subjected to worse conditions than men. concentrated in specialized sub-sectors of food

6 The Role of Women in Production

production, such as frozen food production, The role of women in teaching is illustra- which are both more technologically demand- tive of their positions in other service profes- ing and profitable.24 sions. Women in developing nations who hold Women entrepreneurs also tend to have teaching positions are more economically lower participation rates in international trade independent, mobile, and respected in the than their male counterparts. In Sao Paulo, community. But, women’s contribution to Brazil, only 25 percent of women-run busi- education is mainly home-based, and unpaid. nesses are involved in either exporting or There is a shortage of women teachers in importing goods or services; in Mexico City, most developing countries and men most 21 percent of women-run businesses do so. often fill professional teaching positions. For Globally, 64 percent of women-run businesses example, in Bangladesh 92 percent of primary with 100 employees or more engage in and 93 percent of secondary school teachers international trade, compared to 83 percent are male. In Pakistan, only 32 percent of pri- of corresponding male-run businesses.25 mary school teachers are women, and only 30 Participation in international trade can be percent of secondary school teachers are an indicator of an enterprise’s success and women.29 However, in the Western is often far more lucrative than a sole focus Hemisphere in particular, women comprise a on domestic trade. large portion of the teaching labor force, and Women also account for large portions of teaching is an important source of income for retail trade and services employment in devel- many women. In Bolivia, 64 percent of women oping countries. In Ghana, for example, in the workforce are teachers, in Costa Rica 80 women constitute approximately 85 percent percent, in Honduras 63 percent; women of the labor force in wholesale and retail trad- teachers in Latin America are most likely to ing industries.26 In Bolivia, 82 percent of the be married to higher wage-earning heads of female work force is in the service industry, households and carry the majority of the which includes wholesale and retail trade, responsibility for child care and health care restaurants and hotels, real estate, community for the family, because their incomes are treat- and personal services, communications, etc.27 ed as secondary.30 However, for unmarried In Gambia, women’s employment in the infor- women in these same communities, the mal sector is at 83 percent, in Cote d’Ivoire 73 income and autonomy that come with holding percent, in Bolivia 64 percent, and in teaching positions have helped advance their Tanzania 85 percent.28 position in society.

7 The Role of Women in The Family

In addition to playing a direct role in eco- directly reflected in child nutritional and nomic production, most of the world’s women health status, as the child weight-for-height provide for the basic needs of their families, index increased substantially faster in cases often placing other family members’ needs where women rather than men controlled before their own. Where women are able to income. Similar results were found in case attain higher incomes and more education, studies in Kenya, Malawi, and Chile.34 Even they are often able to achieve greater equality though poverty rates and public health expen- in the sharing of household decision-making.† ditures are similar in South Asia and Africa, That can benefit the family unit in many ways. Experience shows that when income is in the hands of women more money and attention THE IMPORTANCE flow to areas such as children’s education, OF EDUCATING WOMEN food, and health. Families become more “[E]ducating women and giving them equal child-focused and oriented to meeting basic rights…increases children’s chances of needs.31 A mother’s level of education has a surviving to become healthier and better strong positive correlation with family health. educated because educated women do a better job caring for children.” These results are confirmed by a growing body of evidence from case studies through- SOURCE: World Bank, World Bank Development Indicators 2002 (Washington, D.C.: World Bank, 2002). out the developing world that find links between female education levels and the qual- ity of their children’s care, education, health, mortality, and nutrition. One study concluded half of all South Asian children are malnour- that, “women’s educational and health status ished because South Asian women generally as well as reproductive autonomy have at least have considerably less independent power as much, if not more, impact on child survival than women in Africa.35 According to the than does a nation’s level of industrializa- World Bank, if African men and women had tion.”32 A study of Brazilian families showed experienced greater equality in education, that additional income managed by women child mortality would have been 25 percent was associated with an approximate 3 percent lower than it was (in 1990).36 The increase in food expenditures (as opposed to International Food Policy and Research only 0.6 percent in the hands of men).33 Institute (IFPRI) also found female education Gender difference in food expenditure is to be the most important factor in reducing child malnutrition, determining that women’s † Where significant legal and cultural constraints on education and status within the household gender roles exist, income earned by women is given to husbands, in which case the benefits to women may contributes more than 50 percent to the be greatly reduced. reduction of child malnutrition.37

8 Removing Restrictions on Women’s Access to Resources

Development experts are in general agree- vides the basis for realizing equality between ment that increasing the economic participa- women and men through ensuring women’s tion of women would promote more rapid equal access to, and equal opportunities in, economic and social development. Despite political and public life—including the right women’s extensive and varied responsibilities, to vote and to stand for election—as well as they face significant constraints that impede education, health and employment. their ability to contribute to the health and well-being of themselves, their families, and their national economies. In most countries DISCRIMINATION DEFINED women lack equal access to critical The CEDAW defines discrimination against resources—education, health services, physical women as “...any distinction, exclusion or and financial capital, and natural resources. restriction made on the basis of sex which has the effect or purpose of impairing or Enabling women to gain access to and control nullifying the recognition, enjoyment or of these general resources, and to specifically exercise by women, irrespective of their tailored reproductive health services, would marital status, on a basis of equality of men lead to gains in productivity and economic and women, of human rights and funda- progress.38 mental freedoms in the political, economic, Therefore, CED recommends that U.S.- social, cultural, civil or any other field.” based businesses should support the equal sta- SOURCE: United Nations, CEDAW, available at tus of women in all of their practices and pro- Accessed July 30, 2002. grams in developing countries. They also should support U.S. ratification of the UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW). The CEDAW was adopted in 1979 by the UN EDUCATION General Assembly. As of June 2002, 170 coun- As noted above, a large and growing body tries had ratified the Convention and an addi- of research and experience supports educat- tional 3 had signed the treaty, binding them- ing women and girls to achieve among other selves to do nothing in contravention of its goals, improved public health, slower popula- terms. Although the United States signed the tion growth, and higher economic growth. Convention in 1980, it has yet to ratify it.† The Nations that have high levels of female school CEDAW is often described as an international enrollment have significantly higher levels of bill of rights for women. The Convention pro- economic productivity, lower fertility, lower infant and maternal mortality, and longer life † Opponents of the Convention claim it would under- expectancies than other countries. Despite the mine U.S. sovereignty and overly impede the goals of anti-abortion activists. The Senate held hearings in many benefits to be gained from a more high- 2002 but failed to vote on the issue. ly educated female population, girls’ educa-

9 REDUCING GLOBAL POVERTY

tions are consistently unequal to boys and in by women instructors, the lack of women in many parts of the developing world unavail- the teaching profession is a significant obsta- able at all. According to the United Nations, cle to female education. In Yemen, for exam- 50 percent of African women aged 20-24 can- ple, prevailing cultural norms dictate that girls not read or write (compared to 30 percent of be educated by women teachers; however, men).39 In the Middle East, nearly two-thirds only 16 percent of all teachers in Yemen are of women are illiterate.40 In South Asia women women.42 have only about half as many years of educa- Providing girls with a proper education has tion as men, and female secondary school positive returns to society overall as well as to enrollment rates are only two-thirds of male the economy specifically. Education gives girls rates.41 the skills, opportunities, and self-confidence Culture and religion account for some of they need to become active contributors to this inequality, yet poverty is the main reason their nation’s development. Education why girls do not attend school. Because they increases the likelihood that women will wait lack sufficient disposable income to pay longer to marry, have fewer children, and school fees, families may be forced to choose earn better wages.43 Investment in the educa- which of their children to educate, and boys tion of women and girls also lowers their inci- are almost always given priority. Women’s dence of HIV/AIDS and better equips them work burdens also contribute to low enroll- to care for others with AIDS. (See discussion ment rates, as young girls are often pulled out of AIDS to follow.) of school to assist their mothers at home. Research concludes that gender bias in Additional factors include the lack of girl- education, among other negative effects, sig- friendly school structures, pregnancy, early nificantly contributes to higher fertility—on marriage, and gender insensitive curriculums average, every year of female education and classroom environments. In cultures that reduces the total fertility rate by 0.23 per- display a preference for girls to be educated cent.44 (As illustrated in the table below.) In

Table 1 Female Education and Fertility Rates, Selected Countries

Net Primary Female Total Fertility Rate Enrollment Ratio, (per women) Country 1995-1997 1995-2000 Indonesia 93 2.6 Botswana 83 4.4 Nicaragua 78 4.3 Saudi Arabia 58 6.2 Haiti 55 4.4 Senegal 55 5.6 Mozambique 34 6.3 Ethiopia 27 6.8 Mali 25 7.0 Niger 19 8.0

SOURCE: United Nations Procurement Division, Human Development Indicators, 2001 (New York, NY: United Nations, 2002), pp. 90-91, 26-27.

10 Removing Restrictions on Women’s Access to Resources

Africa, women with more than seven years of agricultural technologies that increase pro- education have two fewer children, on aver- ductivity and efficiency.51 In Kenya, where age, than their counterparts who received no female education is particularly low, it is esti- formal education.45 Lowering fertility is an mated that a year of primary education pro- essential step towards raising per capita vided to all female farmers would boost maize income. Fewer children per family lowers the yields by 24 percent.52 dependency burden (thus increasing family In addition to these benefits, the value of savings and disposable income), increases the education in improving the quality of life of share of working age population, provides women themselves should not be overlooked. women with more job choices, and increases The intrinsic value of education can provide women’s work productivity and mobility. great fulfillment, a higher quality of life, and According to UNICEF, “family planning is one confidence to pursue greater achievements. of the most important of all contributions to social and economic development.”46 By limiting the potential gains to the quali- HEALTH AND NUTRITION ty of human capital, gender discrimination Similar to education, women lack sufficient against women in education slows economic access to health care and nutrition. Poor growth. Between 0.4 and 0.9 percentage health status among women directly affects points of the growth rate differences between both their own productivity and the productiv- East Asia, on the one hand, and Sub-Saharan ity of their families. Health related disabilities Africa, South Asia and the Middle East, on the have been found to reduce women’s labor other, can be accounted for by gender gaps in force participation by as much as 22 percent education.47 Sub-Saharan Africa has the slow- in some settings, and the health status of est economic growth, highest fertility and women plays an important role in the health under-five mortality, and slowest annual of other family members, especially children.53 growth in female schooling and formal sector According to the World Bank, improvement employment.48 Differences within Africa make of health care for women aged 15-44 offers an equally strong case. Botswana, with low lev- the highest return on health care spending els of gender inequality in education, grew 5.5 for any demographic group of adults.54 percent per year in the period 1960-1992. Studies suggest that as improvements in Ghana and Niger grew less than 0.3 percent women’s health and nutrition reduce infant per year and had high levels of gender and child mortality, the demand for larger inequality in education.49 While many factors families is reduced, which in turn allows fami- have contributed to this disparity in growth lies to share more resources per person. rates, research lends support to the argument Data reported by developing countries, that gender inequalities accounted for nearly especially in Asia and Africa, show clearly that one-third of the difference and, moreover, care for women and girls is inferior to that for that the causality runs from gender bias in men and boys. Females have higher rates of education to economic growth.50 mortality, morbidity, undernourishment, and Improving the level of human capital medical neglect. To overcome those biases through education increases productivity from experts recommend a package of essential ser- the fields to the factory floors. Research shows vices for women that includes: prevention and that education leads to greater productivity management of unwanted pregnancies, safe among women farmers, particularly for those pregnancy and delivery services, prevention whose education levels are the lowest. and management of sexually transmitted dis- Educated women are more likely to adopt eases, promotion of positive health practices,

11 REDUCING GLOBAL POVERTY

and prevention of practices harmful to health. Programs to increase health literacy—defined PHYSICAL AND FINANCIAL as the ability to comprehend and apply basic CAPITAL medical information geared to treating or Simple technologies that could greatly avoiding illness—can also redress the imbal- reduce women’s workloads, as well as improve ance in care between men and women. This food production and forest management, are has been shown in surveys and research spon- not available to most women in developing sored by Pfizer and other leading companies 55 countries. Introducing basic technologies such with an interest in literacy issues. The deliv- as water pumps, millet mills, shellers, ery of these services need not be expensive. improved stoves, etc. could relieve women of Many services can be delivered at relatively difficult domestic tasks, thus creating more low cost or through simple improvements in time for productive, income-generating activi- existing or proposed services, such as fitting ties. The introduction of new technology does services to local conditions, involving women not always benefit women, it often leads to a in the design and implementation of pro- change in the division of labor that reinforces grams, providing gender-specific information, male domination, as men gain control of new and putting greater stress on the education of machinery and women remain relegated to communities to change attitudes and conduct the hardest manual jobs.57 that are harmful to women. As previously noted, male farmers (espe- In addition to the direct health benefits cially in Africa) are primarily involved in agri- that accrue to the women who receive care, cultural production for export while women improvements in women’s health provide mul- dominate subsistence farming. Men tend to tiple benefits through the various roles that have exclusive access to modern technologies women play in work, childcare, and the house- and agricultural techniques, and improve- hold. Improvement in the health, nutrition, ments and productivity gains are isolated to and maternity care of women improves their the larger commercial farms, which produce ability to earn income and the health and life for export. Women, however, do not enjoy any expectancy of their newborns, older children, of these gains, and subsistence agriculture and other family members. (which is the source of most local food con- AIDS is a health problem that deserves 58 sumption) continues to suffer. special attention, especially for women in Microcredit lending provides an important sub-Saharan Africa, where 75 percent of the example of how the promotion of women’s world’s HIV/AIDS-infected population is self-employment and entrepreneurship can be located and where women account for 58 successful. A small loan would enable many percent of adult cases. (See box.) AIDS dis- women to start a business or to increase the proportionately affects women and adolescent productivity of their agricultural activities. girls who are socially, culturally, biologically, This potential goes mostly unrealized, as and economically more vulnerable.56 In many shown by the fact that African women account cultures, prevailing views and practices put for more than 60 percent of the agricultural women and young girls in extreme danger of labor force and contribute up to 80 percent of HIV infection, while gender inequalities in total food production, yet receive less than 10 access to medical treatments and health ser- percent of credit to small farmers, (and less vices limit women’s ability to obtain treatment. than 1 percent of total credit to agriculture).59 Among the many consequences of the AIDS Without access to credit, women in agriculture epidemic in Africa are declining productivity cannot hire labor or purchase other farm and labor shortages in the agricultural sector, inputs that would improve productivity and where women are the major producers of decrease work burdens. Experience has shown food for domestic consumption.

12 Removing Restrictions on Women’s Access to Resources

WOMEN AND AIDS • The incidence of HIV/AIDS among women has risen at an alarming rate. In 1997, 41 per- cent of HIV infected adults were women; this figure rose to 50 percent in 2002. • In 2002, 1.2 million women died of AIDS, 19.2 million women were living with AIDS, and 2 million women were newly infected. • Fifty-eight percent of all HIV positive adults in Sub-Saharan Africa are women. • In Sub-Saharan Africa, teenage girls are 5 times more likely to be infected than boys, since girls are mostly infected not by boys their own age, but by older men. • Transmission of AIDS from men to women is two times more likely than from women to men. The risk is especially high in the case of unwilling sex with an infected partner since condom use is unlikely. • Because of the belief that sex with a virgin will cure HIV, younger girls have been forced into unsafe sex with HIV-positive men.* • In Senegal, men who were surveyed believed that female circumcision was advantageous as it “rationalizes women’s desire and helps women resist men.” Female circumcision increases women’s risk of contracting HIV/AIDS and other sexually transmitted infections. • Rape has been used as a weapon of war in many countries engaged in armed conflict. • In several countries in Sub-Saharan Africa, almost half of all girls aged 15-19 did not know that a person who looks healthy could be infected with HIV and could transmit it to others. • Due to their low status in many developing countries, women have limited access to health care, which means their symptoms often go unrecognized and untreated. • A study in Senegal showed that the combination of availability of training in the use of female condoms and in negotiating skills resulted in 80 per cent of the women being able to protect themselves from unsafe sex. • In Uganda, which has one of the most comprehensive prevention programs in Africa, infec- tion rates among educated women dropped by more than half between 1995 and 1997. • Studies in Zimbabwe show that girls are increasingly pulled out of school to take on the bur- den of health care. There is a decrease in school enrollment of girls, and 70 percent of the children pulled out of school are girls.

*“SA Policy Deny Baby Rape Claim,” BBC News World Edition, July 31, 2002. SOURCES: United Nations Development Fund for Women (UNIFEM), Gender and HIV/AIDS, available at Accessed July 30, 2003; UNAIDS, available at Accessed July 30, 2003.

that women use available capital for produc- of villagers (predominantly women) who pool tive investments, in some cases more than their savings for their own investment needs. male counterparts. For example, a case study Such programs make available to women in the Lyamungo villages in Tanzania found much needed credit that they would not oth- that if women had the same access to financial erwise have access to and provides them with resources as men they would purchase rela- management skills and self-confidence. tively more labor and energy saving agricultur- Women use these loans to launch small al inputs for subsistence farming.60 businesses such as goat and poultry raising, Microcredit programs, such as the USAID vegetable marketing, biscuit making, crafts, initiative entitled the “Women’s Empower- etc. The experience of USAID has shown ment Program,” typically involve small groups that “women are frugal borrowers, prudent

13 REDUCING GLOBAL POVERTY

entrepreneurs, and low business risks.”61 Many opment organizations (for example, the women use their increased earnings to World Bank and the United Nations buy instructional material for literacy and Development Program (UNDP)) as well as numeracy training. many developed country bilateral aid agencies Many development institutions have fol- (USAID). A UNDP initiated program in lowed the lead of the Grameen Bank. (See Cambodia provided 6,882 loans to the people box.) These include most multilateral devel- of the Kampot province (with a total popula- tion of 528,700), of which 99 percent of bor- rowers were women. The project achieved GRAMEEN BANK considerable success: sixty-six percent of bor- rowers reported an increase in income, and a The use of microcredit as a tool to 9 percent increase in child school enrollment reduce poverty earned international 62 attention with the work of the Grameen resulted from the initiative. Bank in Bangladesh (formally founded in 1983). The bank founder, Dr. Muhammad Yunus, began by providing small loans to a few poor villagers. LAND USE AND PROPERTY Today the Grameen Bank has over 2.4 Laws and norms restrict rights to land own- million borrowers, 95 percent of whom are women. There are currently 1,170 ership and inheritance in many underdevel- branches servicing 40,000 villages in oped nations. These limitations undermine Bangladesh. The idea has spread to optimal land use by excluding the most effi- developing countries throughout the cient agricultural workers, who often are world. Similar programs have been initi- women.63 Some historians trace this situation ated in Asia, Latin America, and West to European colonization, which often Africa. Microcredit has enabled women, who were never before able to access deprived women cultivators of access to agri- credit on reasonable terms, to begin to cultural technology and land. European-style generate additional family income. A land reforms generally eliminated female land resulting large increase in small busi- ownership, even where female farming pre- ness formation and family income has dominated. Land that belonged to women contributed greatly to the reduction of poverty in these regions as well as to farmers was given to their husband or closest 64 growth of national output. The male relative. Property rights are key to agri- Grameen Bank estimates that it con- cultural efficiency, and the denial of rights to tributed 1.5 percent to GDP in 1994 women, given their substantial involvement in (1.33 and 1.1 percent in 1995 and 1996, agricultural activities, affects crop yields and respectively). Aside from the financial weakens the potential for modernization. benefits, microcredit has engaged women in productive activities that (See box.) increase their own security, autonomy, When ownership of land is uncertain, self-confidence and status within the farmers are unlikely to take risks by making household.* long-term investments or improvements that *United Nations, Role of Microcredit in the would increase the quality and productivity of Eradication of Poverty- Report of the Secretary- the land. This negative incentive is true for all General, (1997), available at farmers and is especially significant where Accessed July 2, 2002. women dominate food production. Food SOURCE: Grameen Bank, Contribution of scarcities that exist in Africa today may be Grameen Bank to GDP of Bangladesh 1994-1996 avoidable through increased productivity in (Taka million), available at subsistence agriculture. Without permanent Accessed July 2, 2002. rights to land, women lack both the incentive and legal collateral to obtain resources to

14 Removing Restrictions on Women’s Access to Resources

pursue investments that could improve pro- PROPERTY — A BASIC RIGHT ductivity. FOR WOMEN Farmers depend not only on suitable land for farming, but also sufficient clean water Property rights are the rights to use and fuel wood. Collection and preparation of and manage resources—land, personal water and fuel is generally a woman’s task. property, money, and other assets. They Poor women in developing countries can are a key legal element in a successful economic system because they provide spend up to two hours each day collecting 65 an incentive to work, save, and invest. these necessities. Often women must travel In many developing nations, women great distances, reducing the time they can are denied basic property rights. Many spend in other pursuits. In Burkina Faso, women lack independent rights to own Uganda, and Zambia, for example, women land, manage property, conduct busi- ness or even travel without their hus- could save hundreds of hours per year if walk- bands’ consent. In Sub-Saharan Africa, ing time to water and fuel sources were social norms and customs dictate that reduced to 30 minutes or less.66 Improved women generally do not have secure access to these resources would allow for more rights to the land on which they farm. time dedicated to improved and increased Women obtain land rights through food production or additional income-gener- their husband as long as their marriage lasts and often lose these rights once ating activities, as well as potential health divorced or widowed. In such circum- benefits and schooling. stances, with property rights skewed in favor of men, women often experience other forms of gender discrimination and lower status as well, and may be left in poverty.

SOURCE: World Bank, Summary: Engendering Development: Through Gender Equality in Rights, Resources, and Voice (Washington, D.C.: World Bank Group, 2001), pp. 12-13.

15 Conclusion

Women play a significant role in the and effectiveness of international develop- economies of developing nations. These ment programs. nations can achieve substantial increases in CED believes that, to be most effective, economic growth and efficiency by allowing country development programs and interna- women to realize their fullest potential. For tional aid programs should promote needed this to occur, countries and development part- social, legal, and cultural changes that support ners must focus efforts on women’s specific women. Reforms are especially needed to: economic needs. Providing women with • Pass property rights laws that allow women greater access to education, technologies, cap- to hold individual or joint title to land; ital, land, and water will contribute to national economic growth, alleviate poverty, and • Establish labor policies that reduce wage improve the well-being of women, their fami- gaps and incorporate supportive policies lies, and society in general. Given access and for female workers (such as child care and control over resources, women have signifi- paid maternity leave); cant potential to help themselves, their fami- • Support women’s access to credit; and, lies, and their societies. • Guarantee equal access for women to edu- In A Shared Future, CED expressed its opin- cation and health resources. ion that, “special attention and resources should be dedicated to improving the status The bilateral and multilateral aid programs of women: investments in the education and of developed countries should focus health of women have high social rates of resources on women’s needs by: return because of their work and family • Incorporating interventions designed to roles.” The central roles women play as increase access to the resources that sup- income earners and household caretakers war- port women’s income earning and care giv- rant increased attention to both their quality ing roles; and, of life and their ability to best perform those roles. We should invest in women because it is • Becoming more transparent and account- good for women—it will improve the quality able for outcomes, which would help of women’s lives. But, it is also good for devel- ensure that funds intended for women opment in general; it will enhance the impact reach them.

16 Endnotes

1. The Committee for Economic Development, A Shared 16. World Bank, Women Key to Effective Development, Bank Future – Reducing Global Poverty (New York, NY: The Says: Experts Say Gender Inequality (Washington, D.C.: Committee for Economic Development, 2002). World Bank Group, 2002). 2. World Bank, “Gender, Growth, and Poverty 17. Susan Joekes, Trade Related Employment for Women in Reduction,” Africa Region FINDINGS, no. 129 Industry and Services in Developing Countries, Section 2: (February, 1999). Understanding the Past Trade and Gender Dimension in Manufacturing (August 1995), available at 3. Amartya Sen, Development as Freedom (New York: Anchor Books, 1999) pp.104-107. Accessed June 27, 2002. 4. World Bank, World Development Report 1995: Workers in 18. Gita Sen, Gender Justice and Economic Justice: Reflections an Integrating World, (Washington, D.C.: International on the Five Year Reviews of the UN Conferences of the Bank for Reconstruction, World Bank Group, 1996). 1990’s, available at Accessed 5. “As Go Women, So Goes the Economy” The Globalist July 25, 2002. (November 2001). 19. World Bank, Summary: Engendering Development: 6. Ester Boserup, Woman’s Role in Economic Development Through Gender Equality in Rights, Resources, and Voice (London, England: Earthscan Publications, Ltd., (Washington, D.C.: World Bank Group, 2001), 1995), p. 70; World Bank, “Ghana: Women’s Role in pp.11-12. Improved Economic Performance,” Africa Region 20. For combined female primary, secondary, and tertiary FINDINGS, no. 145 (October, 1999); United Nations gross enrollment ratios: United Nations Development Development Programme (UNDP), Arab Human Programme (UNDP), Human Development Indicators Development Report 2002, (New York, NY: United 2001, 21 Gender-related Development Index (2001), avail- Nations, 2002); “Self-Doomed to Failure,” The able at Accessed Economist, July 6, 2002. June 26, 2002. 7. United States Agency for International Development 21. Anita Spring and Rita Gallin, ed., Women Creating (USAID), Women 2000 Beijing Plus Five: The USAID Wealth: Transforming Economic Development Commitment (2000), available at Accessed June 7, 2002 Development, 1985). 8. Food and Agriculture Organization of the United 22. UNDP, Human Development Indicators 2001, 21 Gender- Nations, Gender and Food Security, available at related Development Index. Accessed July 30, 2002. 23. Marcucci, Pamela Nichols, “Jobs, Gender and Small Enterprises in Africa and Asia: Lessons Drawn From 9. Kathleen Kurz and Charlotte Johnson-Welch, Bangladesh, the Philippines, Tunisia and Zimbabwe”, Enhancing Nutrition Results: The Case for a Women’s SEED Working Paper 2001/18, Series on Women Resources Approach (Washington D.C.: International Entrepreneurship, Development and Gender Enter- Center for Research on Women, 2000), p.10. prises B WEDGE. International Labour Organisation. 10. Boserup, Woman’s Role in Economic Development, p.16. 24. Marcucci. 11. Jennifer Green and Lori Ann Thrupp, “Gender, 25. Julie R. Weeks, “International Trade Opens New Sustainable Development and Improved Resource Doors for Women Enterprises,” Economic Reform Management in Africa,” in Peter Veit, ed., Africa’s Today, no. 3 (1999), available at Accessed Institute, 1998), pp.271, 278. July 30, 2002. 12. Kurz and Johnson-Welch, Enhancing Nutrition Results, 26. World Bank Group, Ghana: Women’s Role in Improved p. 10. Economic Performance, Africa Region Findings No. 145 13. Boserup, Woman’s Role in Economic Development, p.24. (October 1999), available at 14. Boserup, Woman’s Role in Economic Development, p.35. Accessed July 30, 2002. 15. USAID, Office of Women and Development, Sowing 27. The World Bank Group, World Development Indicators, the Seeds of Opportunity: Women in Agribusiness 2001. Table 2.3: Employment by Economic Activity. (Washington D.C.: USAID, 1999).

17 REDUCING GLOBAL POVERTY

28. The World Bank Group, World Development Indicators, 47. Klasen, Does Gender Inequality Reduce Growth and 2001. Table 2.9: Assessing Vulnerability. Development?, p.1. 29. World Bank Group, World Development Indicators, 48. Klasen, Does Gender Inequality Reduce Growth and 2000. Table 2.13: Gender and Education. Development?, pp.14-15. 30. Liang, Xiaoyan, Teacher Pay and Teacher Quality in 49. Klasen, Does Gender Inequality Reduce Growth and Latin America: Evidence from Household Surveys in 12 Development?, p.21. Latin American Countries, slide entitled “Gender, age and schooling for teachers and non-teachers,” World 50. Klasen, Does Gender Inequality Reduce Growth and Bank Group, available at Accessed July 30, 2002. p.18. 31. World Bank, “Gender, Growth, and Poverty 52. International Food Policy Research Institute (IFPRI), Reduction.” Women: The Key to Food Security — Looking into the 32. Ce Chen and John B. Williamson, “Child Mortality, Household (Washington, D.C.: IFPRI, 2000), p.1. Women’s Status, Economic Dependency, and State 53. World Bank, “Why Invest in Women’s Health and Strength: A Cross-National Study of Less Developed Nutrition?” A New Agenda for Women’s Health and Countries,” Social Forces, vol. 76, no. 2 (December Nutrition. 1997), p. 679. 54. World Bank, “Why Invest in Women’s Health and 33. Kurz and Johnson-Welch, Enhancing Nutrition Results, Nutrition?” A New Agenda for Women’s Health and p.9. Nutrition. 34. Kurz and Johnson-Welch, Enhancing Nutrition Results, 55. Pfizer, Health Literacy, available at Accessed July 30, 2002; “Health 35. “Always with us,” The Economist, June 15, 2002, p.73. Literacy, Report of the Council on Scientific Affairs,” JAMA, vol. 281, no. 6 (February 10, 1999), pp. 552- 36. World Bank, Women Key to Effective Development: World 556. Bank Issues New Press Backgrounder (December 6, 2001) available at 56. UNAIDS, “Gender and HIV” Accessed July 29, 2002. (Geneva, Switzerland: The United Nations, 1996), 37. Madeleine Burka, “Women’s Equity a Critical Factor p.4. in Building Stronger Nations,” The Academy News, 58. Boserup, Woman’s Role in Economic Development, p.56. Spring 2001, p.1. 59. World Bank, “Gender, Growth, and Poverty 38. World Bank, Summary: Engendering Development, p.10. Reduction.” 39. Green and Thrupp, “Gender, Sustainable 60. Green and Thrupp, “Gender, Sustainable Development and Improved Resource Management Development and Improved Resource Management in Africa,” p. 283. in Africa,” p.291 40. UNDP Arab Human Development Report 2002. 61. USAID, Women 2000 Beijing Plus Five: The USAID 41. World Bank, Women Key to Effective Development. Commitment (2000). 42. World Bank Group, The World Bank Annual Report: 62. Sustainable Development Networking Programme Human Development, 1999, available at (SDNP), UNDP, Cambodia: Women’s Participation in Accessed July 30, 2002.. org/perl-bin/gidp/project.pl?do=view&id=7> Accessed June 7, 2002. 43. Green and Thrupp, “Gender, Sustainable Development and Improved Resource Management 63. Green and Thrupp, “Gender, Sustainable Develop- in Africa,” p. 293. ment and Improved Resource Management in Africa,” p.280. 44. Stephan Klasen, Does Gender Inequality Reduce Growth and Development? Evidence from Cross-Country 64. Boserup, Woman’s Role in Economic Development, p.60. Regressions, Working Paper No.7 (Washington D.C.: 65. Women’s Edge, Women and International Development: The World Bank, November 1999), p.22. Statistics on Women 1997-1998, available at Development?, p.5. Accessed June 17, 2002. 46. Chen and Williamson, “Child Mortality, Women’s 66. World Bank, Summary: Engendering Development, p.20. Status, Economic Dependency, and State Strength,” p. 667.

18 OBJECTIVES OF THE COMMITTEE FOR ECONOMIC DEVELOPMENT

For 60 years, the Committee for Economic foundations, and individuals. It is indepen- Development has been a respected influence dent, nonprofit, nonpartisan, and nonpolitical. on the formation of business and public policy. Through this business-academic partner- CED is devoted to these two objectives: ship, CED endeavors to develop policy state- To develop, through objective research and ments and other research materials that com- informed discussion, findings and recommenda-tions mend themselves as guides to public and busi- for private and public policy that will contribute to ness policy; that can be used as texts in college preserving and strengthening our free society, achiev- economics and political science courses and in ing steady economic growth at high employment and management training courses; that will be con- reasonably stable prices, increasing productivity and sidered and discussed by newspaper and maga- living standards, providing greater and more equal zine editors, columnists, and commentators; opportunity for every citizen, and improving the and that are distributed abroad to promote bet- quality of life for all. ter understanding of the American economic To bring about increasing understanding by pre- system. sent and future leaders in business, government, and CED believes that by enabling business lead- education, and among concerned citizens, of the ers to demonstrate constructively their concern importance of these objectives and the ways in which for the general welfare, it is helping business to they can be achieved. earn and maintain the national and communi- CED’s work is supported by private volun- ty respect essential to the successful function- tary contributions from business and industry, ing of the free enterprise capitalist system.

19 CED BOARD OF TRUSTEES

Chairman DEREK BOK, President Emeritus CAROLYN CHIN, Chairman Harvard University Commtouch/C3 Partners ROY J. BOSTOCK, Chairman Emeritus, National Chair Bcom3 Group, Inc. Common Cause * JOHN L. CLENDENIN, Retired Chairman LEE C. BOLINGER, President BellSouth Corporation Vice Chairmen Columbia University FERDINAND COLLOREDO-MANSFELD, GEORGE H. CONRADES, Vice Chairman JACK O. BOVENDER, JR., Chairman and Chairman and Chief Executive Officer Akamai Technologies, Inc. Chief Executive Officer Cabot Properties, Inc. HCA Inc. JAMES A. JOHNSON, Vice Chairman JAMES P. CORCORAN, Consultant Perseus, LLC JOHN BRADEMAS, President Emeritus DAVID M. COTE, President and Chief ARTHUR F. RYAN, Chairman and Chief Executive Officer Executive Officer JOSEPH BRANDON, Chairman, Honeywell International Inc. The Prudential Insurance Company of President and Chief Executive Officer America General RE Corporation STEPHEN A. CRANE, Chairman, President and Chief Executive Officer FREDERICK W. TELLING, Vice President WILLIAM E. BROCK, Chairman Stirling Cooke Brown Holdings Limited Corporate Strategic Planning and Policy Bridges Learning Systems, Inc. Division W. BOWMAN CUTTER, Managing Pfizer Inc. THOMAS J. BUCKHOLTZ, Executive Director Vice President Warburg Pincus Beyond Insight Corporation PAUL DANOS, Dean REX D. ADAMS, Professor of Business MICHAEL BUNGEY, Chief Executive The Amos Tuck School of Business Administration Officer Dartmouth College The Fuqua School of Business Cordiant Communications Group Duke University RONALD R. DAVENPORT, Chairman of TONY BUZZELLI, Deputy Managing the Board PAUL A. ALLAIRE, Retired Chairman Partner Sheridan Broadcasting Corporation Xerox Corporation Deloitte & Touche LLP JOHN T. DEE, Chairman and Chief COUNTESS MARIA BEATRICE ARCO * FLETCHER L. BYROM, President and Executive Officer Partner Chief Executive Officer Volume Services America American Asset Corporation MICASU Corporation JOHN J. DEGIOIA, President IAN ARNOF, Retired Chairman DONALD R. CALDWELL, Chairman and Georgetown University Bank One, Louisiana, N.A. Chief Executive Officer Cross Atlantic Capital Partners ROBERT M. DEVLIN, Former Chairman MERRILL J. BATEMAN, President and Chief Executive Officer Brigham Young University DARALD W. CALLAHAN, Executive American General Corporation Vice President JAMES S. BEARD, President ChevronTexaco Corporation JOHN DIEBOLD, Chairman Caterpillar Financial Services Corp. John Diebold Incorporated DAVID A. CAPUTO, President HENRY P. BECTON, JR., President and Pace University SAM DIPIAZZA, Global Chief Executive General Manager PricewaterhouseCoopers WGBH Educational Foundation FRANK C. CARLUCCI, Chairman Emeritus LINDA M. DISTLERATH, Vice President, THOMAS D. BELL, JR., President and The Carlyle Group Global Health Policy Chief Executive Officer Merck & Co., Inc. Cousins Properties JOHN B. CAVE, Principal Avenir Group, Inc. IRWIN DORROS, President ALAN BELZER, Retired President and Dorros Associates Chief Operating Officer RAYMOND G. CHAMBERS, Chairman AlliedSignal Inc. of the Board * FRANK P. DOYLE, Retired Executive Amelior Foundation Vice President PETER A. BENOLIEL, Chairman, General Electric Company Executive Committee ROBERT CHESS, Chairman Quaker Chemical Corporation Nektar Therapeutics PHILIP DUKE, Executive Vice President, Retired MELVYN E. BERGSTEIN, Chairman and MICHAEL CHESSER, Chairman and Lockheed Martin Corporation Chief Executive Officer Chief Executive Officer Diamond Cluster International, Inc. United Water

*Life Trustee FRANK DUNN, President and Chief EARL G. GRAVES, SR., Publisher and ROBERT J. HURST, Vice Chairman Executive Officer Chief Executive Officer The Goldman Sachs Group, Inc. Nortel Networks Black Enterprise Magazine SHIRLEY ANN JACKSON, President Rensselaer Polytechnic Institute T. J. DERMOT DUNPHY, Chairman WILLIAM H. GRAY, III, President and Kildare Enterprises, LLC Chief Executive Officer WILLIAM C. JENNINGS, Chairman The College Fund US Interactive, Inc. CHRISTOPHER D. EARL, Managing Director GERALD GREENWALD, Chairman JEFFREY A. JOERRES, President and Perseus Capital, LLC Greenbriar Equity Chief Executive Officer Manpower Inc. W. D. EBERLE, Chairman BARBARA B. GROGAN, President Manchester Associates, Ltd. Western Industrial Contractors L. OAKLEY JOHNSON, Senior Vice President, Corporate Affairs ROBERT A. ESSNER, President and PATRICK W. GROSS, Chairman, American International Group Chief Executive Officer The Lovell Group Wyeth Founder and Senior Advisor, AMS ROBERT M. JOHNSON, Chairman and Chief Executive Officer DIANA FARRELL, Director JEROME H. GROSSMAN, M.D., Senior Bowne & Co., Inc. McKinsey Global Institute Fellow John F. Kennedy School of Government VAN E. JOLISSAINT, Corporate G. STEVEN FARRIS, President, Chief Harvard University Economist, Retired Executive Officer and Chief Operating DaimlerChrysler Corporation Officer RONALD GRZYWINSKI, Chairman Apache Corporation Shorebank Corporation H.V. JONES, Managing Director Korn/Ferry International KATHLEEN FELDSTEIN, President JUDITH H. HAMILTON, Former Economics Studies, Inc. President and Chief Executive Officer PRES KABACOFF, President and Classroom Connect Co-Chairman E. JAMES FERLAND, Chairman, Historic Restoration, Inc. President and Chief Executive Officer WILLIAM A. HASELTINE, Chairman and Public Service Enterprise Group Inc. Chief Executive Officer EDWARD A. KANGAS, Chairman and Human Genome Sciences, Inc. Chief Executive Officer, Retired *EDMUND B. FITZGERALD, Managing Deloitte Touche Tohmatsu Director WILLIAM F. HECHT, Chairman, Woodmont Associates President and Chief Executive Officer JOSEPH E. KASPUTYS, Chairman, PPL Corporation President and Chief Executive Officer HARRY L. FREEMAN, Chair Global Insight, Inc. The Mark Twain Institute WILLIAM HENDERSON Former Postmaster General WILLIAM E. KIRWAN, Chancellor MITCHELL S. FROMSTEIN, Chairman University System of Maryland Emeritus RICHARD H. HERSH, President Manpower Inc. Trinity College THOMAS J. KLUTZNICK, President Thomas J. Klutznick Company PAMELA B. GANN, President JOSEPH D. HICKS, Retired President and Claremont McKenna College Chief Executive Officer CHARLES F. KNIGHT, Chairman Siecor Corporation Emerson Electric Co. JOSEPH GANTZ, Partner GG Capital, LLC HEATHER HIGGINS, President CHARLES E.M. KOLB, President Committee for Economic Development E. GORDON GEE, Chancellor Vanderbilt University RODERICK M. HILLS, Chairman C. JOSEPH LABONTE, Chairman Hills Enterprises, Ltd. The Vantage Group THOMAS P. GERRITY, Dean Emeritus The Wharton School HAYNE HIPP, President and Chief BENJAMIN LADNER, President University of Pennsylvania Executive Officer American University The Liberty Corporation FREDERICK W. GLUCK, Of Counsel KURT M. LANDGRAF, President and McKinsey & Company, Inc. DEBORAH C. HOPKINS, Chief Chief Executive Officer Corporate Strategy Officer Educational Testing Service CAROL R. GOLDBERG, President Citigroup, Inc. The AvCar Group, Ltd. ROBERT W. LANE, Chairman and Chief PAUL M. HORN, Senior Vice President, Executive Officer ALFRED G. GOLDSTEIN, President and Research Deere & Company Chief Executive Officer IBM Corporation AG Associates W. MARK LANIER, Partner MATINA S. HORNER, Executive The Lanier Law Firm, P.C. JOSEPH T. GORMAN, Retired Chairman Vice President TRW Inc. TIAA-CREF CHARLES R. LEE, Chairman Verizon Communications RICHARD A. GRASSO, Chairman and PHILIP K. HOWARD, Vice Chairman Chief Executive Officer Covington & Burling WILLIAM W. LEWIS, Director Emeritus New York Stock Exchange, Inc. McKinsey Global Institute McKinsey & Company, Inc.

*Life Trustee RA A. LIPMAN, Chairman of the Board STEFFEN E. PALKO, Vice Chairman and GEORGE RUPP, President and President President International Rescue Committee Guardsmark, Inc. XTO Energy, Inc. SANDRA PANEM, Partner EDWARD B. RUST, JR., Chairman and BRUCE K. MACLAURY, President Cross Atlantic Partners, Inc. Chief Executive Officer Emeritus State Farm Insurance Companies The Brookings Institution JERRY PARROTT, Vice President, Corporate Communications MARGUERITE W. SALLEE, Chairman COLETTE MAHONEY, President Human Genome Sciences, Inc. and Chief Executive Officer Emeritus Brown Schools Marymount Manhattan College CAROL J. PARRY, President Corporate Social Responsibility Associates STEPHEN W. SANGER, Chairman and EDWARD A. MALLOY, President Chief Executive Officer University of Notre Dame VICTOR A. PELSON, Senior Advisor General Mills, Inc. UBS Warburg LLC ELLEN R. MARRAM, Partner BERTRAM L. SCOTT, President North Castle Partners DONALD K. PETERSON, President and TIAA-CREF Life Insurance Company Chief Executive Officer ALLAN MCARTOR, Chairman Avaya Inc. MICHAEL M. SEARS, Senior Vice Airbus of North America, Inc. President and Chief Financial Officer PETER G. PETERSON, Chairman The Boeing Company ALONZO L. MCDONALD, Chairman The Blackstone Group and Chief Executive Officer JOHN E. SEXTON, President Avenir Group, Inc. TODD E. PETZEL, President New York University Azimuth Alternative Asset EUGENE R. MCGRATH, Chairman, Management LLP DONNA SHALALA, President President and Chief Executive Officer University of Miami Consolidated Edison Company of RAYMOND PLANK, Chairman New York, Inc. Apache Corporation JUDITH SHAPIRO, President Barnard College DAVID E. MCKINNEY, President ARNOLD B. POLLARD, President and The Metropolitan Museum of Art Chief Executive Officer WALTER H. SHORENSTEIN, Chairman The Chief Executive Group of the Board DEBORAH HICKS MIDANEK, Principal The Shorenstein Company Glass & Associates, Inc. HUGH B. PRICE, President National Urban League * GEORGE P. SHULTZ, Distinguished HARVEY R. MILLER, Managing Director Fellow Greenhill & Co., LLC GEORGE A. RANNEY, JR., President and The Chief Executive Officer Stanford University ALFRED T. MOCKETT, Chairman and Chicago Metropolis 2020 Chief Executive Officer JOHN C. SICILIANO, Director, Global American Management Systems, Inc. NED REGAN, President Institutional Services Baruch College Dimensional Fund Advisors NICHOLAS G. MOORE, Senior Advisor Bechtel Corporation JAMES Q. RIORDAN, Chairman RUTH J. SIMMONS, President Quentin Partners Co. Brown University DIANA S. NATALICIO, President The University of Texas at El Paso E. B. ROBINSON, JR., Chairman FREDERICK W. SMITH, Chairman, Emeritus President and Chief Executive Officer MARILYN CARLSON NELSON, Deposit Guaranty Corporation Federal Express Corporation Chairman, President and Chief Executive Officer JAMES D. ROBINSON, III, General JOHN F. SMITH, JR., Chairman Carlson Companies, Inc. Partner and Founder General Motors Corporation RRE Ventures MATTHEW NIMETZ, Partner DAVID A. SPINA, Chairman and Chief General Atlantic Partners ROY ROMER Executive Officer Former Governor of Colorado State Street Corporation THOMAS H. O’BRIEN, Chairman of the Superintendent, Los Angeles Unified Executive Committee School District ALAN G. SPOON, Managing General PNC Financial Services Group, Inc. Partner DANIEL ROSE, Chairman Polaris Ventures DEAN R. O’HARE, Chairman and Chief Rose Associates, Inc. Executive Officer, Retired STEPHEN STAMAS, Chairman Chubb Corporation HOWARD M. ROSENKRANTZ, Chief The American Assembly Executive Officer RONALD L. OLSON, Partner Grey Flannel Auctions PAULA STERN, President Munger, Tolles & Olson The Stern Group, Inc. LANDON H. ROWLAND, Chairman ROBERT J. O’TOOLE, Chairman and Janus Capital Group Inc. DONALD M. STEWART, President and Chief Executive Officer Chief Executive Officer A.O. Smith Corporation NEIL L. RUDENSTINE, Chair, ArtStor The Chicago Community Trust Advisory Board The Andrew Mellon Foundation

*Life Trustee ROGER W. STONE, Chairman and Chief TALLMAN TRASK, III, Executive HAROLD M. WILLIAMS, President Executive Officer Vice President Emeritus Box USA Group, Inc. Duke University The J. Paul Getty Trust

MATTHEW J. STOVER, President JAMES L. VINCENT, Chairman, Retired L. R. WILSON, Chairman LKM Ventures Biogen, Inc. Nortel Networks Corporation FRANK VOGL, President LAWRENCE SUMMERS, President Vogl Communications LINDA SMITH WILSON, President Harvard University Emerita DONALD C. WAITE, III, Director Radcliffe College RICHARD J. SWIFT, Chairman, President McKinsey & Company, Inc. and Chief Executive Officer MARGARET S. WILSON, Chairman and Foster Wheeler Corporation HERMINE WARREN, President Chief Executive Officer Hermine Warren Associates, Inc. Scarbroughs RICHARD F. SYRON, President and Chief Executive Officer ARNOLD R. WEBER, President Emeritus JACOB J. WORENKLEIN, Managing Thermo Electron Corporation Northwestern University Director Societe Generale HENRY TANG, Chairman JOSH S. WESTON, Honorary Chairman Committee of 100 Automatic Data Processing, Inc. KURT E. YEAGER, President and Chief Executive Officer JAMES A. THOMSON, President and CLIFTON R. WHARTON, JR., Former Electric Power Research Institute Chief Executive Officer Chairman and Chief Executive Officer RAND TIAA-CREF RONALD L. ZARELLA, Chairman and Chief Executive Officer THOMAS J. TIERNEY, Founder DOLORES D. WHARTON, Former Bausch & Lomb, Inc. The Bridgespan Group Chairman and Chief Executive Officer The Fund for Corporate Initiatives, Inc. MARTIN B. ZIMMERMAN, Vice STOKLEY P. TOWLES, Partner President, Corporate Affairs Brown Brothers Harriman & Co. RICHARD WHEELER, Chief Executive Ford Motor Company Officer STEPHEN JOEL TRACHTENBERG, InContext Data Systems, Inc. EDWARD ZORE, President and Chief President Executive Officer The George Washington University MICHAEL W. WICKHAM, Chairman and The Northwestern Mutual Life Insurance Chief Executive Officer Co. Roadway Express, Inc.

*Life Trustee CED HONORARY TRUSTEES

RAY C. ADAM, Retired Chairman ROBERT R. DOCKSON, Chairman ROBERT W. LUNDEEN, Retired NL Industries Emeritus Chairman CalFed, Inc. The Dow Chemical Company ROBERT O. ANDERSON, Retired Chairman LYLE EVERINGHAM, Retired Chairman RICHARD B. MADDEN, Retired Hondo Oil & Gas Company The Kroger Co. Chairman and Chief Executive Officer Potlatch Corporation ROY L. ASH THOMAS J. EYERMAN, Retired Partner Los Angeles, California Skidmore, Owings & Merrill AUGUSTINE R. MARUSI Lake Wales, Florida SANFORD S. ATWOOD, President DON C. FRISBEE, Chairman Emeritus Emeritus PacifiCorp WILLIAM F. MAY, Chairman and Chief Emory University Executive Officer RICHARD L. GELB, Chairman Emeritus Statue of Liberty-Ellis Island Foundation, ROBERT H. B. BALDWIN, Retired Bristol-Myers Squibb Company Inc. Chairman Morgan Stanley Group Inc. W. H. KROME GEORGE, Retired OSCAR G. MAYER, Retired Chairman Chairman Oscar Mayer & Co. GEORGE F. BENNETT, Chairman ALCOA Emeritus GEORGE C. MCGHEE, Former U.S. State Street Investment Trust WALTER B. GERKEN, Retired Chairman Ambassador and Under Secretary and Chief Executive Officer of State HAROLD H. BENNETT Pacific Life Insurance Company Salt Lake City, Utah JOHN F. MCGILLICUDDY, Retired LINCOLN GORDON, Guest Scholar Chairman and Chief Executive Officer JACK F. BENNETT, Retired Senior The Brookings Institution Chemical Banking Corporation Vice President Exxon Corporation JOHN D. GRAY, Chairman Emeritus JAMES W. MCKEE, JR., Retired Chairman Hartmarx Corporation CPC International, Inc. HOWARD W. BLAUVELT Keswick, Virginia RICHARD W. HANSELMAN, Chairman CHAMPNEY A. MCNAIR, Retired Health Net Inc. Vice Chairman MARVIN BOWER Trust Company of Georgia Delray Beach, Florida ROBERT S. HATFIELD, Retired Chairman J. W. MCSWINEY, Retired Chairman ALAN S. BOYD The Continental Group, Inc. of the Board Lady Lake, Florida The Mead Corporation ARTHUR HAUSPURG, Member, Board ANDREW F. BRIMMER, President of Trustees ROBERT E. MERCER, Retired Chairman Brimmer & Company, Inc. Consolidated Edison Company of The Goodyear Tire & Rubber Co. New York, Inc. PHILIP CALDWELL, Retired Chairman RUBEN F. METTLER, Retired Chairman Ford Motor Company PHILIP M. HAWLEY, Retired Chairman and Chief Executive Officer of the Board TRW Inc. HUGH M. CHAPMAN, Retired Chairman Carter Hawley Hale Stores, Inc. NationsBank South LEE L. MORGAN, Former Chairman ROBERT C. HOLLAND, Senior Fellow of the Board E. H. CLARK, JR., Chairman and Chief The Wharton School Caterpillar, Inc. Executive Officer University of Pennsylvania The Friendship Group ROBERT R. NATHAN, Chairman LEON C. HOLT, JR., Retired Vice Nathan Associates, Inc. A.W. CLAUSEN, Retired Chairman Chairman and Chief Executive Officer Air Products and Chemicals, Inc. J. WILSON NEWMAN, Retired Chairman BankAmerica Corporation Dun & Bradstreet Corporation SOL HURWITZ, Retired President DOUGLAS D. DANFORTH Committee for Economic Development JAMES J. O’CONNOR, Former Chairman Executive Associates and Chief Executive Officer GEORGE F. JAMES Unicom Corporation JOHN H. DANIELS, Retired Chairman Ponte Vedra Beach, Florida and Chief Executive Officer LEIF H. OLSEN, President Archer-Daniels Midland Co. DAVID KEARNS, Chairman Emeritus LHO GROUP New American Schools RALPH P. DAVIDSON NORMA PACE, President Washington, D.C. GEORGE M. KELLER, Retired Chairman Paper Analytics Associates of the Board ALFRED C. DECRANE, JR., Retired Chevron Corporation CHARLES W. PARRY, Retired Chairman Chairman and Chief Executive Officer ALCOA Texaco, Inc. FRANKLIN A. LINDSAY, Retired Chairman Itek Corporation ILLIAM R. PEARCE, Director WILLIAM M. ROTH EDGAR B. STERN, JR., Chairman American Express Mutual Funds Princeton, New Jersey of the Board Royal Street Corporation JOHN H. PERKINS, Former President WILLIAM RUDER Continental Illinois National Bank and William Ruder Incorporated ALEXANDER L. STOTT Trust Company Fairfield, Connecticut RALPH S. SAUL, Former Chairman RUDOLPH A. PETERSON, President and of the Board WAYNE E. THOMPSON, Past Chairman Chief Executive Officer Emeritus CIGNA Companies Merritt Peralta Medical Center BankAmerica Corporation GEORGE A. SCHAEFER, Retired THOMAS A. VANDERSLICE DEAN P. PHYPERS Chairman of the Board TAV Associates New Canaan, Connecticut Caterpillar, Inc. SIDNEY J. WEINBERG, JR., Senior EDMUND T. PRATT, JR., Retired ROBERT G. SCHWARTZ Director Chairman and Chief Executive Officer New York, New York The Goldman Sachs Group, Inc. Pfizer Inc. MARK SHEPHERD, JR., Retired ROBERT C. WINTERS, Chairman ROBERT M. PRICE, Former Chairman Chairman Emeritus and Chief Executive Officer Texas Instruments, Inc. Prudential Insurance Company Control Data Corporation of America ROCCO C. SICILIANO JAMES J. RENIER Beverly Hills, California RICHARD D. WOOD, Director Renier & Associates Eli Lilly and Company ELMER B. STAATS, Former Controller IAN M. ROLLAND, Former Chairman General of the United States CHARLES J. ZWICK and Chief Executive Officer Coral Gables, Florida Lincoln National Corporation FRANK STANTON, Former President CBS, Inc. AXEL G. ROSIN, Retired Chairman Book-of-the-Month Club, Inc. CED RESEARCH ADVISORY BOARD

RALPH D. CHRISTY ROBERT W. HAHN RUDOLPH G. PENNER J. Thomas Clark Professor Resident Scholar Senior Fellow Department of Agricultural, Resource, American Enterprise Institute The Urban Institute and Managerial Economics Cornell University HELEN F. LADD CECILIA E. ROUSE Professor of Public Policy Studies Professor of Economics and ALAIN C. ENTHOVEN and Economics Public Affairs Marriner S. Eccles Professor of Public and Sanford Institute of Public Policy Woodrow Wilson School Private Management Duke University Princeton University Stanford University Graduate School of Business ROBERT LITAN JOHN P. WHITE Vice President, Director of Economic Lecturer in Public Policy BENJAMIN M. FRIEDMAN Studies John F. Kennedy School of Government William Joseph Maier Professor of The Brookings Institution Harvard University Political Economy Harvard University WILLIAM D. NORDHAUS Sterling Professor of Economics Cowles Foundation Yale University CED PROFESSIONAL AND ADMINISTRATIVE STAFF

CHARLES E.M. KOLB President

Research Communications/Government Relations Finance and Administration EVERETT M. EHRLICH MICHAEL J. PETRO LAURIE LEE Senior Vice President and Vice President and Director of Chief Financial Officer and Director of Research Business and Government Policy Vice President of Finance and and Chief of Staff Administration

JANET HANSEN MORGAN BROMAN GLORIA Y. CALHOUN Vice President and Director Director of Communications Office Manager of Education Studies CHRIS DREIBELBIS HOOJU CHOI ELLIOT SCHWARTZ Business and Government Policy Database Administrator Vice President and Director Associate of Economic Studies SHARON A. FOWKES CHRISTINE S. RYAN Executive Assistant to the President VAN DOORN OOMS Program Director Senior Fellow JEFFREY SKINNER ROBIN SAMERS Senior Accountant/Grants Administrator MELISSA GESELL Assistant Director of Communications Research Associate RACQUEL TUPAZ Senior Accountant/Financial Reporting DAVID KAMIN Development Research Associate AMANDA TURNER MARTHA E. HOULE Office Manager JEFF LOESEL Vice President for Development and Research Associate Secretary of the Board of Trustees PATRICE WILLIAMS Receptionist NORA LOVRIEN CAROLINA LOPEZ Research Associate Manager, Development

Advisor on International NICHOLE REMMERT Economic Policy Foundation Relations Manager

ISAIAH FRANK RICHARD M. RODERO William L. Clayton Professor Director of Development of International Economics The Johns Hopkins University STATEMENTS ON NATIONAL POLICY ISSUED BY THE COMMITTEE FOR ECONOMIC DEVELOPMENT

SELECTED PUBLICATIONS:

How Economies Grow: The CED Perspective on Raising the Long-Term Standard of Living (2003) Learning for the Future: Changing the Culture of Math and Science Education to Ensure a Competitive Workforce (2003) Exploding Deficits, Declining Growth: The Federal Budget and the Aging of America (2003) Justice for Hire: Improving Judicial Selection (2002) A Shared Future: Reducing Global Poverty (2002) A New Vision for Health Care: A Leadership Role for Business (2002) Preschool For All: Investing In a Productive and Just Society (2002) From Protest to Progress: Addressing Labor and Environmental Conditions Through Freer Trade (2001) The Digital Economy: Promoting Competition, Innovation, and Opportunity (2001) Reforming Immigration: Helping Meet America’s Need for a Skilled Workforce (2001) Measuring What Matters: Using Assessment and Accountability to Improve Student Learning (2001) Improving Global Financial Stability (2000) The Case for Permanent Normal Trade Relations with China (2000) Welfare Reform and Beyond: Making Work Work (2000) Breaking the Litigation Habit: Economic Incentives for Legal Reform (2000) New Opportunities for Older Workers (1999) Investing in the People’s Business: A Business Proposal for Campaign Finance Reform (1999) The Employer’s Role in Linking School and Work (1998) Employer Roles in Linking School and Work: Lessons from Four Urban Communities (1998) America’s Basic Research: Prosperity Through Discovery (1998) Modernizing Government Regulation: The Need For Action (1998) U.S. Economic Policy Toward The Asia-Pacific Region (1997) Connecting Inner-City Youth To The World of Work (1997) Fixing Social Security (1997) Growth With Opportunity (1997) American Workers and Economic Change (1996) Connecting Students to a Changing World: A Technology Strategy for Improving Mathematics and Science Education (1995) Cut Spending First: Tax Cuts Should Be Deferred to Ensure a Balanced Budget (1995) Rebuilding Inner-City Communities: A New Approach to the Nation’s Urban Crisis (1995) Who Will Pay For Your Retirement? The Looming Crisis (1995) Putting Learning First: Governing and Managing the Schools for High Achievement (1994) Prescription for Progress: The Uruguay Round in the New Global Economy (1994) *From Promise to Progress: Towards a New Stage in U.S.-Japan Economic Relations (1994) U.S. Trade Policy Beyond The Uruguay Round (1994) In Our Best Interest: NAFTA and the New American Economy (1993) What Price Clean Air? A Market Approach to Energy and Environmental Policy (1993) Why Child Care Matters: Preparing Young Children For A More Productive America (1993)

*Statements issued in association with CED counterpart organization in foreign countries Restoring Prosperity: Budget Choices for Economic Growth (1992) The United States in the New Global Economy: A Rallier of Nations (1992) The Economy and National Defense: Adjusting to Cutbacks in the Post-Cold War Era (1991) Politics, Tax Cuts and the Peace Dividend (1991) The Unfinished Agenda: A New Vision for Child Development and Education (1991) Foreign Investment in the United States: What Does It Signal? (1990) An America That Works: The Life-Cycle Approach to a Competitive Work Force (1990) Breaking New Ground in U.S. Trade Policy (1990) Battling America’s Budget Deficits (1989) *Strengthening U.S.-Japan Economic Relations (1989) Who Should Be Liable? A Guide to Policy for Dealing with Risk (1989) Investing in America’s Future: Challenges and Opportunities for Public Sector Economic Policies (1988) Children in Need: Investment Strategies for the Educationally Disadvantaged (1987) Finance and Third World Economic Growth (1987) Reforming Health Care: A Market Prescription (1987) Work and Change: Labor Market Adjustment Policies in a Competitive World (1987) Leadership for Dynamic State Economies (1986) Investing in Our Children: Business and the Public Schools (1985) Fighting Federal Deficits: The Time for Hard Choices (1985) Strategy for U.S. Industrial Competitiveness (1984) Productivity Policy: Key to the Nation’s Economic Future (1983) Energy Prices and Public Policy (1982) Public Private Partnership: An Opportunity for Urban Communities (1982) Reforming Retirement Policies (1981) Transnational Corporations and Developing Countries: New Policies for a Changing World Economy (1981) Stimulating Technological Progress (1980) Redefining Government’s Role in the Market System (1979) Jobs for the Hard to Employ: New Directions for a Public-Private Partnership (1978) CED COUNTERPART ORGANIZATIONS

Close relations exist between the Committee for Economic Development and independent, nonpolitical research organizations in other countries. Such counterpart groups are composed of business executives and scholars and have objectives similar to those of CED, which they pursue by similarly objective methods. CED cooperates with these organizations on research and study projects of common interest to the various countries concerned. This program has resulted in a number of joint policy statements involving such international matters as energy, assistance to developing countries, and the reduction of nontariff barriers to trade.

CE Circulo de Empresarios Madrid, Spain

CEAL Consejo Empresario de America Latina Buenos Aires, Argentina

CEDA Committee for Economic Development of Australia Sydney, Australia

CIRD China Institute for Reform and Development Hainan, People’s Republic of China

EVA Centre for Finnish Business and Policy Studies Helsinki, Finland

FAE Forum de Administradores de Empresas Lisbon, Portugal

IDEP Institut de l’Entreprise Paris, France

IW Institut der deutschen Wirtschaft Köln Cologne, Germany

Keizai Doyukai Tokyo, Japan

SMO Stichting Maatschappij en Onderneming The Netherlands

SNS Studieförbundet Naringsliv och Samhälle Stockholm, Sweden

Committee for Economic Development 2000 L Street, N.W., Suite 700 Washington, D.C. 20036 Telephone: (202) 296-5860 Fax: (202) 223-0776 261 Madison Avenue New York, New York 10016 Telephone: (212) 688-2063 Fax: (212) 758-9068 www.ced.org