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WPS6616 Policy Research Working Paper 6616 Public Disclosure Authorized Women’s Legal Rights over 50 Years Progress, Stagnation or Regression? Public Disclosure Authorized Mary Hallward-Driemeier Tazeen Hasan Anca Bogdana Rusu Public Disclosure Authorized The World Bank Public Disclosure Authorized Development Research Group Finance and Private Sector Development Team September 2013 Policy Research Working Paper 6616 Abstract Using a newly compiled database of women’s property associated with higher probabilities for reform, but rights and legal capacity covering 100 countries over only in lower-income countries. With the remaining 50 years, this paper analyzes the triggers and barriers constraints as prevalent in middle- as low-income to reform. The database documents gender gaps in the countries, increased growth is not necessarily going to ability to access and own assets, to sign legal documents spark additional reforms. Clearer patterns emerge from in one’s own name, and to have equality or non- the momentum created by international conventions, discrimination as a guiding principle of the country’s such as the Committee to Eliminate All Forms of constitution. Progress in reducing these constraints has Discrimination against Women (CEDAW), women’s been dramatic—half of the constraints documented in political representation at the national level, mobilization the 1960s had been removed by 2010. However, some of women’s networks, and increasing labor force sticky areas persist where laws have not changed or have participation in sectors that provide a voice for women, even regressed. The paper analyzes potential drivers of which are positive forces for change. Conversely, conflict reforms. A significant finding is that the relationship and weak rule of law can entrench a discriminatory with a country’s level of development and the extent status quo. And much is at stake; strengthening women’s of its reforms is not straightforward. For the first half legal rights is associated with important development of the sample, there was no systematic connection; outcomes that can benefit society as a whole. only in the last 25 years have increases in income been This paper is a product of the Finance and Private Sector Development Team, Development Research Group. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The authors may be contacted at [email protected]. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Produced by the Research Support Team Women’s Legal Rights over 50 Years: Progress, Stagnation or Regression? 1 Mary Hallward-Driemeier, Tazeen Hasan and Anca Bogdana Rusu JEL Codes: K37; N40; O1 Key terms: Law; gender; property rights; legal capacity; CEDAW; development. 1 World Bank, Development Research Department, Finance and Private Sector Development. The authors gratefully recognize financial support from the UK’s Department For International Development (DFID). Special thanks go to Sarah Iqbal who, along with Tazeen Hasan, supervised the data collection effort, and to the team members from the Women, Business and the Law who contributed to the database: Garam Dexter, Khrystyna Kushnir, Lourdes Lizarraga Ortega, Nayda Almodovar Reteguis, Paula Tavares, Thibault Meilland and Yasmin Klaudia bin Humam. In addition, Abhinav Goel, Ashley S. Zohar, Erin F. Rogers, Lindsey Scannell, Sarah Knapp, Shazia Akhter, Tatyana Chursova, Yulia Dovgaya and Zachary Walter conducted research for the database as part of their internships with the World Bank Group. The opinions expressed here do not necessarily reflect the position of the World Bank, its Board of Executive Directors or the member countries they represent. Comments can be sent to [email protected]. 1 Women’s Legal Rights over 50 Years: Progress, Stagnation or Regression? “Life must be lived forward, but it can only be understood backward.” Kierkegaard “Study the past if you would define the future.” Confucius Introduction "Gender equality means having the same rights and opportunities." "It means the same rights at work and in the home." Two urban adult women, Lambayeque, Peru.2 Discriminatory laws in many countries across the world continue to act as a significant brake on women’s entrepreneurship. Gender differences are not found in business laws, which are generally gender-neutral, but in laws that are ostensibly supposed to regulate the private space, such as family and inheritance laws. These laws can determine the amount of assets controlled and owned by women, restrict their mobility, and limit their autonomy to make everyday decisions, such as getting a job outside the home or going to court. The restrictions can trigger marriage resulting in a paradox; a married woman can have a similar legal capacity as a child when it comes to opening a bank account or signing a contract in that she cannot do it on her own. This study tracks the evolution of key constraints to women’s and girls’ equal rights to property and restrictions on their legal capacity over the past 50 years across 100 countries. The database of legal indicators represents all geographic regions, legal traditions, and income levels (see annexes 1-3 for more details on methodology and country coverage). The paper describes the nature and implications of these legal restrictions and analyzes how their prevalence has changed across countries and over time. It demonstrates that change is possible; over half of the constraints that were on the books in the 1960s were removed by 2010. Whereas 75 countries in the initial period had at least one constraint to women’s economic rights, only 47 did in 2010. Of the 75 countries with some initial inequalities, all but 18 countries had closed at least one legal gender gap. And 28 countries had eliminated all the inequalities analyzed here. The extent of progress, however, is uneven. Eastern Europe and Central Asia, a region that began with very few inequalities, no longer has any that are followed here. Many high-income OECD countries started with several inequalities, but all have removed them and countries in Latin America have also made tremendous progress. Countries in Sub-Saharan Africa, which had a higher rate of constraints than any other region, have removed more than half of the constraints that had been on the books. East Asian countries have also halved the number of constraints. However, in the Middle East and North Africa and in South Asia, much less progress has been realized. 2 World Bank Dataset 2011a. 2 This paper explores some of the factors that can trigger reforms. It examines which country characteristics and processes are associated with reforms, focusing on income growth, education, patterns of employment, conflict, women’s empowerment (e.g. women parliamentarians, ratification of CEDAW, women’s age of first marriage) and the strength of the rule of law. The relationship between reform and higher income is not straightforward. It is not the case that development itself will help close these gender gaps. While income is not associated with reforms during the first half of the period studied here, in the last 20-25 years, there is more of a positive association between income and reforms, but only in low-income countries. As the constraints that still remain on the books are as prevalent in middle-income countries as low- income countries, this is unlikely to be a strong predictor of future reforms. On the other hand, two positive trends are particularly striking. The first trend can be referred to as the “CEDAW effect.” The ratification by states of the CEDAW convention is linked to reform within a short-term period, benefiting unmarried women in particular. The average pace of reform within the 5 years after ratification is almost double the pace in the 15 years prior to ratification. The second significant trend is based on increases in women’s political representation. Increased female legislators at the national level (25% and over) has catalyzed the reform of discriminatory laws. Thus, CEDAW and higher rates of women in parliaments are associated with more reforms closing legal gaps in women’s economic rights. If active engagement is needed to move the reform agenda forward, these may be the more promising channels. The next section will give a brief background of the literature of the impact of legal reforms, motivating why it is important to remove the remaining inequalities women and girls face. The paper then provides more background on the historical and legal sources for why many of the constraints are on the books in various countries. The following section then discusses the methodology for collecting the legal indicators. Then paper examines the overall trends – where there has been improvement and where the sticky points are. Finally we analyze in greater detail some of the underlying factors behind these trends. Literature Review of the Impact of Legal reforms Reforming discriminatory laws is important for women’s economic participation. A 2013 World Bank report highlights how gender differences in legal status and property rights are a significant constraint on women’s entrepreneurship. Stronger economic rights are linked to higher ratios of female employers within a country.

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