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Here Are Those of the Author(S) and Not Those of the Centre for Economic Policy Research DISCUSSION PAPER SERIES No. 8734 WOMEN’S EMPOWERMENT AND ECONOMIC DEVELOPMENT Esther Duflo DEVELOPMENT ECONOMICS ABCD www.cepr.org Available online at: www.cepr.org/pubs/dps/DP8734.asp www.ssrn.com/xxx/xxx/xxx ISSN 0265-8003 WOMEN’S EMPOWERMENT AND ECONOMIC DEVELOPMENT Esther Duflo, Massachusetts Institute of Technology and CEPR Discussion Paper No. 8734 January 2012 Centre for Economic Policy Research 77 Bastwick Street, London EC1V 3PZ, UK Tel: (44 20) 7183 8801, Fax: (44 20) 7183 8820 Email: [email protected], Website: www.cepr.org This Discussion Paper is issued under the auspices of the Centre’s research programme in DEVELOPMENT ECONOMICS. Any opinions expressed here are those of the author(s) and not those of the Centre for Economic Policy Research. Research disseminated by CEPR may include views on policy, but the Centre itself takes no institutional policy positions. The Centre for Economic Policy Research was established in 1983 as an educational charity, to promote independent analysis and public discussion of open economies and the relations among them. It is pluralist and non- partisan, bringing economic research to bear on the analysis of medium- and long-run policy questions. These Discussion Papers often represent preliminary or incomplete work, circulated to encourage discussion and comment. Citation and use of such a paper should take account of its provisional character. Copyright: Esther Duflo CEPR Discussion Paper No. 8734 January 2012 ABSTRACT Women’s Empowerment and Economic Development* Women’s empowerment and economic development are closely related: in one direction, development alone can play a major role in driving down inequality between men and women; in the other direction, empowering women may benefit development. Does this imply that pushing just one of these two levers would set a virtuous circle in motion? This paper reviews the literature on both sides of the empowerment-development nexus, and argues that the inter-relationships are probably too weak to be self-sustaining, and that continuous policy commitment to equality for its own sake may be needed to bring about equality between men and women. JEL Classification: D1, O12 and O15 Keywords: gender equality and women's empowerment Esther Duflo Department of Economics Massachusetts Institute of Technology 50 Memorial Drive, E52-252G Cambridge MA 02142 USA Email: [email protected] For further Discussion Papers by this author see: www.cepr.org/pubs/new-dps/dplist.asp?authorid=147793 Submitted 18 December 2011 WOMEN’S EMPOWERMENT AND ECONOMIC DEVELOPMENT ESTHER DUFLO REVISED NOVEMBER 2011 Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics Massachusetts Institute of Technology Abstract Women’s empowerment and economic development are closely related: in one direction, development alone can play a major role in driving down inequality between men and women; in the other direction, empowering women may benefit development. Does this imply that pushing just one of these two levers would set a virtuous circle in motion? This paper reviews the literature on both sides of the empowerment-development nexus, and argues that the inter- relationships are probably too weak to be self-sustaining, and that continuous policy commitment to equality for its own sake may be needed to bring about equality between men and women. 1. Introduction The persistence of gender inequality is most starkly brought home in the phenomenon of “missing women”. The term was coined by Amartya Sen in a now classic article in the New York Review of Books (Sen, 1990) to capture the fact that the proportion of women is lower than what would be expected if girls and women throughout the developing world were born and died at the same rate, relative to boys and men, as they do in Sub Saharan Africa. Today, it is estimated that 6 million women are missing every year (World Development Report, 2012) Of these, 23 percent are never born, 10 percent are missing in early childhood, 21 percent in the reproductive years, and 38 percent above the age of 60. Stark as the excess mortality is, it still does not capture the fact that throughout their lives, even before birth, women in developing countries are treated differently than their brothers, lagging behind men in many domains. For each missing woman, there are many more women who fail to get an education, a job, or a political responsibility that they would have obtained if they had been men. Table 1 summarizes some indicators of the relative position of women and men circa 1990 and circa 2009 in poor countries. Both the relative deprivation of women, and the extent to which there have been improvements over the last 20 years are apparent in a number of spheres. In access to education: in low and moderate income countries, the enrollment rate for girls in secondary school was 34% in 2010, while that for boys was 41%. 20 years before, the rates were respectively 22% and 30%. Meanwhile, primary school enrollment has become nearly universal for both boys and girls. In labor market opportunities: Women are less likely to work, they earn less than men for similar work, and are more likely to be in poverty even when they work. Women spend almost twice as much time on housework, almost five times as much time on child care, and about half as much time on market work as men do (Beniell and Sanchez, 2011). In political representation: women constituted just 19.4 percent of the members of lower and upper houses of parliaments in July 2011 (Inter-Parliamentary Union, 2011) In legal rights: women in many countries still lack independent rights to own land, manage property, conduct business, or even travel without their husband's consent. 21 of the 63 countries studied by Htun and Weldon (2011) have unequal inheritance rights for men and women. There is a bi-directional relationship between economic development and women’s empowerment defined as improving the ability of women to access the constituents of development—in particular health, education, earning opportunities, rights, and political participation. In one direction, development alone can play a major role in driving down inequality between men and women; in the other direction, continuing discrimination against women can, as Amartya Sen has forcefully argued, hinder development. Empowerment can, in other words, accelerate development. Policy makers and social scientists have tended to focus on one or the other of these two relationships. Those focusing on the first have argued that gender equality improves when poverty declines. They argue that policymakers should therefore focus on creating the conditions for economic growth and prosperity, while seeking, of course, to maintain a level playing field for both genders, but without adopting specific strategies targeted at improving the condition of women. In contrast, many emphasize the second relationship, from empowerment to development. The Secretary General of the United Nations, Kofi Annan, for example, has argued that achieving gender equality is a “prerequisite” to achieving the other Millennium Development Goals (MDG), including eliminating poverty, reducing infant mortality, achieving universal education, and eliminating the gender gap in education by 2015 (United Nations, 2005). In its report, “Engendering Development,” the World Bank (2001) calls for policies to address gender imbalance in “rights, resources, and voice,” and recommends that institutional structures be overhauled to promote equality, and that specific measures, such as girls’ scholarships and quotas for women in parliament, be adopted. These measures are justified, according to the report, not only because they promote equity, but also because they are necessary to accelerate development. Interestingly, the 2012 World Development Report (World Bank, 2011) adopts a much more nuanced message. While it emphasizes the “business case” for women empowerment, it mainly takes it as given that the equality between women and men is a desirable goal in itself, and policies should aim to achieve that goal. This paper reviews the evidence on both sides of the empowerment-development relationship. It first shows that poverty and lack of opportunity breed inequality between men and women, so that when economic development reduces poverty, the condition of women improves on two counts: first, when poverty is reduced, the condition of everyone, including women, improves, and second, gender inequality declines as poverty declines, so the condition of women improves more than that of men with development. Economic development, however, is not enough to bring about complete equality between men and women. Policy action is still necessary to achieve equality between genders. Such policy action would be unambiguously justified if empowerment of women also stimulates further development, starting a virtuous cycle. This essay argues that empowering women does indeed change society’s choices in important ways, although the usual depiction of women as always making the best decisions for long-term development is somewhat exaggerated. The conclusion here is a more balanced, somewhat more pessimistic picture of the potential for women’s empowerment and economic development to mutually reinforce each other than that offered by the more strident voices on either side of the debate. 2. Can economic development cause women’s empowerment? Gender inequality is often greater among the poor, both within and across countries. For example, while the gender gap in primary and secondary
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