Harnessing the Economic Power of Gender Equality

Abstract

According to the World Economic Forum in 2016, only 59% of the world’s gender gap

has been closed (Profeta). Women have historically been excluded from society’s main

workforces leading to an underutilization of the available human capital among other side

effects. While strides have been made in recent years in multiple developed countries, third

world countries are lagging in creating equal roles for all people regardless of gender,

specifically those where religion dominates people’s personal and professional lives. Unequal

opportunities for women and men lead to a lesser quality of life and contribute to the world

economic crisis. With the world population predicted to grow exponentially until 2050, the

question of gender equality is becoming unavoidable yet still meets significant resistance.

Underdeveloped regions are both the least progressive in terms of gender equality yet will be the

first to feel the hard-hitting effects of the world’s anticipated population boom.

The relationship between gender equality and other issues countries face is an

intertwined one. When progress is made for gender equality, other issues such as economic

growth and sustainable development follow suit. Tackling the issue of gender equality is just the

start to remedying other issues that plague countries such as poverty and violence. The cost of

inaction is much greater, as we are heading to a stress scenario in the southern Mediterranean

that can have negative effects within the EU and worldwide. As quality of life decreases in the

southern Mediterranean countries, more people choose to leave the country depleting their

resources even further. This then puts stress on the resources of the countries they are emigrating

to such as Italy, France, and Greece. This doubled effect increases poverty, political instability,

and social and ethnic conflicts while decreasing availability of natural and manmade resources.

By increasing gender equality and increasing the amount of quality of resources in these worse-
Harnessing the Economic Power of Gender Equality

off countries, the quality of life can increase to a level where these communities can thrive and

retain traits that give each country its own character. This paper will explore the issue of the

gender inequality by researching how it affects women’s lifestyles, productivity, and economic

contributions in the Mediterranean region, demonstrate the link between sustainable economic

development and gender equality, and suggest solutions for the research’s implementation and

use.

Background

The Mediterranean region can be easily divided into two categories with their own

unique characteristics. The Northern Mediterranean and the Southern Mediterranean regions

share many of the same qualities as well as the same resources, but exist in almost two separate

worlds. The Northern region is more developed than not with limited issues in government and

other stuff I’ll add later. The Southern region consists of underdeveloped countries plagued with

political issues, limited resources, and political instability. This paper will examine the issues of

gender in equality and its effects from a holistic perspective but suggest solutions for

implementation for each region specifically. The individual challenges of the North and South

cannot be ignored when it comes to gender inequality, and will be treated as such.

It has already been proven in many cases that gender inequality affects several facets of

the economy. In one study by Profeta it is stated that “eradicating gender inequalities is not

independent from strong economic performance and in fact triggers higher GDP growth,

investment and competitiveness”. When women are actively included and participative in the

economy, everyone benefits. There are several specific key issues that feed into the larger

problem of inequality: underrepresentation, underutilization, and mistreatment. This paper will

Harnessing the Economic Power of Gender Equality

explore these issues and then demonstrate key strategies for tackling each one in each region of

the Mediterranean.

The Mediterranean presents a unique situation unlike most others in the world with a

strong identity in the world of agriculture. Within this region’s economic driver lies a whole new

perspective on gender equality. In ancient times, women were often unable to own land and were

quite literally the property of their fathers, brothers, or husbands. While women generally

participated in agricultural work to the same or similar extents as men, “women are often

underrepresented in rural organizations and institutions and generally poorly informed regarding

their rights”. Poverty remains a rampant issue in southern Mediterranean countries, and the gains

to be made from increasing gender equality are massive. As stated by Caren Grown, “Gender

inequalities result in less food been grown, less income being earned and higher levels of poverty

and food insecurity”. In an area greatly in need of food and income, taking steps towards

eliminating gender inequality is becoming less of an option and more of a necessity.

Underrepresentation

Underrepresentation of minority populations is a huge issue in modern society today, and

is one that affects most other areas of inequality. When a population is not represented, often

their voices are not accounted for or considered in legislative decision-making processes.

Historically women have been unable to voice their opinions legally, such as the time before

women were first able to vote. Despite legislation passed in the Mediterranean region, many

women are still unwilling to participate in elections and some are even silenced by other citizens.

When you magnify the issue, only 11% of the governing bodies of listed companies are made up
Harnessing the Economic Power of Gender Equality

of women. This so-called “bullwhip effect” is seen when decisions related to women’s healthcare

and other women-centric issues are made mainly by the male population.

Women need to be more present in top decision-making roles. As Paola Profeta states in

her article on gender equality in decision-making roles, “having both men and women involved

in decision-making broadens the perspectives, increases creativity and innovation, diversifies the

pool of talents and competences, reduces conflicts, improves the process of decision-making, and

may better represent the firm’s various shareholders”. The synergies created by an equal

workforce cannot be found or created elsewhere. Having female role models within business can

have unprecedented effects for younger populations within the company or on larger scale. It is

essential that women receive promotions they deserve and pass along their legacy to those under

them to continue the ripple effect, closing the gender gap as they do so.

Each gender group and their experiences bring a unique set of skills to the table, and

through collaboration can drastically improve the organizations they lead. Profeta cites in her

article “it is recognised that women are less susceptible to corruption, more responsible and

absent less often.”. When the leadership demonstrates these qualities, the effects tend to trickle

down into the employees they preside over, and so on. Having women in leadership roles

presenting these qualities to their employees can lead to an overall decrease in corruption, more

responsibility in the overall workforce, and fewer employee absences. It is also worth noting that

across all ethnic groups, women hold a higher percentage of college degrees than men. As stated

by Yucel and Ekici, “an increased proportion of women in primary school and higher education

levels, as well as a greater number of women in professional and technical jobs, trigger more

women to take part in lower levels of education as well.”. When educated leadership is present in
Harnessing the Economic Power of Gender Equality

an organization, there will be positive effects on lower ranking employees, therefore increasing

the economic gains made by the company.

Underutilization

With women making up more than half the world’s population it doesn’t make logical

sense that they make up a minority of the labor force. The historical role of women can be

summed up in one word: mother. For centuries women have been expected to stay home with

their children and mind their homes. In developing countries with a lack of food and other scare

resources, it is becoming crucial to utilize our human capital base more now than ever. With

exponential population growth, especially in underdeveloped and developing countries, more

people are needed to support the ever growing economy and future generations.

The EU and Mediterranean countries are currently suffering under the global economic

crisis. The Lisbon Agenda 2000, created by the EU Council, presented the idea that “the EU

should strive to exhaust its potential labour by encouraging populations which do not work, such

as women…to join in the general effort of raising the growth rate…” as a means of fighting

against the economic crisis. This applies to all Mediterranean countries, and improving the poor

growth rate of these economies is one of the key ways obstacles standing in the way of escaping

the crisis.

Working women are also key to reducing poverty later on in life. In Turkey older women

are the most at-risk for falling into poverty because “Their right to a pension income is often

linked to their marital status and they rarely have adequate pension rights of their own…this is

also true for a section of working women, due to career breaks, pay gaps, part-time work, etc.”.
Harnessing the Economic Power of Gender Equality

A sort of bullwhip effect becomes present with impoverished women-if they are not able to be

supported by a man in any case, their children are at a higher risk of staying in poverty than those

with a healthy income to back them up. With the number of young people under the age of 15

expected to increase by over 18% by 2020, there is no better time than now to begin work to

support current and future generations of all people.

In North Africa, women hold less than 20% of paid jobs in non-agricultural fields. The

employment of women in the agricultural sector surpassed 40% in 2015, but that still leaves a

substantial gap to be filled when the area is in the middle of such dire economic and political

crises. It has been stated that “the under-representation of women in the workforce explains why

MENA [Middle East and North Africa] countries lack the capacity to meet the challenges of

globalization” (feminism article). In these poverty-stricken countries, the obvious choice should

be to utilize the part of their human capital that has been previously ignored. Challenges,

however, present themselves when you look at the individual cultures within these countries.

Most of these countries are Muslim-majority and religious law forbids certain activities to be

performed by women. The question now becomes where is the line between preserving the

culture of a nation, and making sure they can keep up with the rest of the world.

Mistreatment

According to the UN, women have less access to property ownership, credit, training and

employment and are far more likely to be victims of domestic violence. Women continue to face

discrimination in the world’s economy although much of the world’s unpaid work within

families and communities is performed by women. When women aren’t treated equally and
Harnessing the Economic Power of Gender Equality

given the same access to resources as men, they can’t contribute their fullest potential to the

societies in which they belong.

A World Bank report states that “not only are young women…healthier and better

educated than their mothers, but their generational improvement has been greater than that in any

other major world region. Still, women in…face greater obstacles finding jobs and playing active

public roles in their society than women do elsewhere”. In Muslim majority countries there is

much greater resistance to the fight for gender equality than around the rest of the world. This

presents a unique situation where many women accept the patriarchal structure that is presented

to them. Women’s empowerment is based on fighting societal norms such as the patriarchal

structure as well as the laws that mimic the same attitudes.

Family laws in the southern Mediterranean are the most in need of reform if one hopes to

fix the problem of gender inequality. These are the laws that govern affairs conducted inside of

the family such as inheritance and child custody. Women are at a severe disadvantage when it

comes to family laws because they are not entitled to the same privileges as men. Men are first in

line, and sometimes the only one in line, when it comes to child custody, land ownership, and

inheritance. Women are also required to have permission from their male guardians to do things

like seek employment, start a business, or travel outside the home. Many women often end up in

poverty after incurring unfortunate circumstances because family laws don’t allow them to

inherit their due share or keep the place where they live.

Solutions

The path to a collective, gender equal society is neither a clear nor easy one. The

overarching theme of solutions presented for remedying the issue lie in public policy and
Harnessing the Economic Power of Gender Equality

financing. Without laws and the promotion of gender equality, there can be no hard and fast

standard against which to hold oneself to. The United Nations has named gender equality one of

their Sustainable Development Goals (SDGs) but individual countries, especially those plagued

with political instability, are having a tougher time taking action.

There are two areas of focus that have been referenced in this paper’s problem statements

and will continue to be referenced when examining solutions: the northern and southern

Mediterranean. While this region relies on similar resources and shares a myriad of

characteristics, when it comes to political and lifestyle decision-making the two can be vastly

different. Southern Mediterranean countries such as Tunisia, Algeria, and Libya where religion

and culture that has existed for centuries continues to play such an important role need a different

approach than Northern Mediterranean countries that are able to spearhead gender equality

initiatives in the name of social and economic justice.

Improving Research and Analytics

One of the main issues present in researching the issue of gender equality is the lack of

information. Issues such as lack of knowledge, interest, and awareness make it quite difficult to

study within the field and even more so to effectively change anything. Traditional studies are

often inconclusive because they cannot pinpoint the specific cause-and-effect relationships

present in the gender equality issue. For example, the traditional role of women sometimes leads

women themselves to not desire any position outside their home, which contributes to lower

female employment rates in all sectors. Whether this is because they truly desire that societal role

or because they are unaware of other options is sometimes unclear.

Harnessing the Economic Power of Gender Equality

Also, it is often the case that “there is adequate understanding of gender, poverty and

vulnerability in relation to rural development but there had been insufficient focus on the

incorporation of this analysis into the development programmes”. Information and awareness of

the problem need to be incorporated into more than just the discussion, they need to be the

driving force behind the action. Without concrete evidence of what specific actions can bring, it

can be hard to convince the masses to change their ways. Progress towards any goal is easier

when there is cooperation, and cooperation requires mutual understanding. The people need to

understand the policy, and the policy needs to be built with the people in mind.

Increasing Legislation

In the more developed areas of the Mediterranean, one of the first steps towards creating

an equal future for women is increasing legislation supporting their own growth and

development. In countries like Turkey, legislation needs to be passed so women can be entitled

to a pension and other rights that men have to improve the general welfare of the population.

Respecting human rights, including women’s rights, is an integral factor in the law of the EU and

countries like Tunisia in the southern Mediterranean could use to follow suit. Following the Arab

Spring protests, certain laws were lifted like the ban on Muslim women only marrying Muslim

men, but there is still much room for improvement. As the protests continue, it becomes very

clear that the need for change is imminent and the people who can bring about such change are in

government.

Some examples in northern EU countries that are spearheading efforts in gender equality

are Iceland, blah, and blah. In 2017 the Icelandic government passed a law dictating that

“employers with at least 25 workers obtain a certificate proving they offer equal pay regardless
Harnessing the Economic Power of Gender Equality

of the gender, ethnicity, sexuality, or nationality” (Tuttle). The World Economic Forum already

ranks Iceland as the world leader in gender equality, but women are still routinely paid less than

men. In Iceland, men have 90 days of paid paternity leave which can help ease the burden on

new mothers and have fully closed the educational gender gap so all children receive the same

education regardless of their gender. The Icelandic Social Affairs and Equality Minister

Thorsteinn Viglundsson states “Equal rights are human rights” which is an approach many

Mediterranean countries could use to adopt, especially in the south where women are even more

so deprived of their equal rights.

Working with local governments is a key step in this solution, since they are the most in

touch with the people they preside over and have the most control over the circumstances that

affect their daily lives. This step also encompasses working alongside men to achieve common

goals that enhance everyone’s livelihood rather than one population’s over another. Men need to

be empowered to make the right decisions for women and to use the power that society has

already bestowed upon them to make real change. The trickle-down effect cannot be

underestimated in a situation like this. Passing legislation giving women equal rights as well as

encouraging participation in government practices such as voting and running for office will

increase the voice of women in need, and with their input governments can better adjust to what

will benefit the female population.

According to a study by Quagliarello, alongside a community-based approach at all

levels of government there should be

“the creation of an inter-departmental steering committee to guide and oversee over

all progress; the development of a clear internal accountability structure; the

development of staff capacity on gender equality; gender sensitive communications

Harnessing the Economic Power of Gender Equality

and partnership building; establishment of knowledge building system and gender

sensitive monitoring and reporting evaluation and audit.”

Accountability is a necessity when tackling gender equality; there is awareness but very

little action. An oversight committee can help turn people’s awareness into action by

holding them accountable and keeping them true to their word. The importance of

education on this issue can also not be overstated, even the highest elected officials may

need education on the topic. Educating people at all levels of the issue, effects, and

potential solutions will cause them to incorporate issue-specific problem solving into

everything they do.

Supporting Underdeveloped Regions

Looking at examples for solutions for the southern Mediterranean, a very solid case study

is found in Turkey. They are currently in negotiation for accession into the European Union, and

throughout the process have vastly changed their laws and attitudes towards the role of women.

The EU requires all members to abide by certain standards, and the measures Turkey has taken

to abide by these standards are forming a blueprint for other southern Mediterranean countries to

follow. In 1992, a law was passed abolishing the need for women to have their husband’s

approval to work. In 2004, an amendment to the Turkish constitution provided men and women

with equal rights. Passing legislation is a first step, but cultures so rooted in history and tradition

have a hard time adopting and enforcing new legislation. More concrete steps still need to be

taken to affect the daily lives of women,

Turkey’s entry into the European Union may be important for strengthening the

relationship between the EU and the Mediterranean region as a whole. Bridging the gap between
Harnessing the Economic Power of Gender Equality

the two cultures and cultivating a closer relationship can spur new dialogues that can accelerate

the changes towards issues such as gender equality. Since each area has their own distinct

challenges that don’t always overlap, closing the gaps between the two is becoming of the utmost

importance in these challenging economic times. As Turkey is physically and culturally in the

middle region between the northern and southern regions of the Mediterranean and has the

opportunity to be a bridge for cultural and economic improvement to the south where change is

needed the most.

The need for specific, measurable steps is recognized by the European Union and they

have several programs available for financial assistance and technical support. The Union for the

Mediterranean, a parallel organization whose goal is to promote stability and growth in the

region, can act in a similar fashion to create programs promoting gender equality in the region.

While not as prevalent or active as the European Union, creating standards for membership and

providing financial and technical resources to support Mediterranean countries in need could be

instrumental in how Mediterranean countries proceed with their progress towards gender

equality.

Microfinancing

Microfinancing is a source of improvement that can be used to help women, particularly

single women, start their own businesses and create their own valuable assets. Microfinancing is

a subdivision of finance that provides low-income individuals with loans and other financial

support that they can’t get at other larger institutions. Microfinancing is an effective tool towards

reducing the gender gap because lots of these organization focus on loans for women because it

has been proven that in general “household improvements on nutritional status, housing
Harnessing the Economic Power of Gender Equality

conditions, savings behaviour and agricultural productivity are associated with women’s control

of funds and income generating activity”.

After entering a microfinancing program, women increased their savings, overcame food-

related issues, and improved their housing conditions. It is important to note that most of these

changes were found in the southern part of the Mediterranean, in countries such as Kosovo,

Jordan, Tunisia, and Morocco. Some other improvements that women found after entering a

program were increased mobility, the ability to make decisions independently, and an increase in

bargaining power within the family. When a wife, daughter, or sister is on a level playing field as

the men in her life, she can advocate for herself and her children better. Women and children’s

lives improve because their needs are heard and cared for more than when there is just a sole

head of the household. The impact that these programs can have on women in developing areas

is literally life-changing, and with expansion into the rest of these nations have the power to

shape their future economies.

When creating a microfinance program specifically aimed at women, it is important to

“address women’s specific needs and constraints (limited mobility, lack of land title as collateral,

etc.) and consistently translate them into credit terms, financial products and delivery

mechanisms.”. Gender specific contracts have been proven to be the most beneficial because

they take these issues into account rather than having a general plan that women must then adapt

to. Some of the largest improvements in women’s empowerment through microfinancing were in

the Arab countries that traditionally view women as less than, or even the property of, the man in

their life. These countries have the farthest to go in terms of remedying the issue of gender

equality, and addressing the specific needs of these women through microfinancing can be a

huge step towards leveling the playing field.

Harnessing the Economic Power of Gender Equality

Conclusion

As it can be seen, there are many opportunities for women to become involved and

contribute to the communities in which they belong. This participation can both close the gender

gap as well as aide in several other worldwide issues that plague many countries. Opportunities

for women increase each day, yet the rate at which they are increasing is not fast enough to meet

the demands of the modern world. Women still aren’t given choices in key areas of life even

inside the home, much less outside. The cost of inaction is hard to calculate exactly, but we know

it’s there and we know it’s large. We see it when communities institute reforms like the ones

mentioned in this paper, how much the communities gain when women are included in decision-

making and are active participants in their economies. The gains made were ones being

previously missed out on, and imagining the missed opportunities on the scale of the

Mediterranean and worldwide gives an idea of the cost of not acting on this very pertinent issue.

When everyone plays an active role in their life and their decision making, we will be able to see

the effects of true progress.

Reforms that have been put into place have mainly affected the elite; white middle and

upper-class women have mainly benefitted from gender equality policies that have been enacted.

Progress is good in whatever magnitude it can happen, but most of the female population in the

Mediterranean falls into the category that haven’t seen any positive effects from these policies,

either because they aren’t effective or because they just don’t exist yet. These women play key

roles in the Mediterranean economy as workers in agriculture or other industrial activity but also

as child bearers. Their contribution to society is huge when it comes to non-monetary benefits

yet they aren’t rewarded for these. The effects of activities such as raising children are hard to

put a monetary value on but need to be valued when it comes to looking at holistic solutions for
Harnessing the Economic Power of Gender Equality

gender equality. Further research is necessary in this area to see what types of contributions are

necessary and which types of policies can help support women through those contributions.

Countries that have a culture of being more family-focused need policies that focus on family

planning and support for mothers at home, yet more industrialized cultures need more

opportunities for women to enter the workforce and be compensated fairly for their time.

Culture and religion play an important role in the identity of a country and therefore the

country’s role worldwide. The term “cultural relativism” has been coined to define the way

cultural and regional disparities exempt certain regions from what others consider fundamental

human rights such as the right to an education and the right to family planning. This is a delicate

balance to maintain because it can be used as a cover for patriarchal societies who don’t have

intentions of changing their policy and procedures to further benefit women. Culture is flexible

and ever-changing, so seeing where this line can be drawn over time to balance the scale

between equal treatment and the preservation of culture is an area of study that needs much more

exploration. There needs to be a balance between maintaining tradition and meeting the demands

of the modern world which can’t happen without progressive action from all groups.
Harnessing the Economic Power of Gender Equality

Works Cited

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Grown, Caren. “Gender and Agriculture.” Open Learning Center, World Bank Group,

olc.worldbank.org/print/content/gender-and-agriculture.

Profeta, Paola. “Gender Equality in Decision-Making Positions: The Efficiency

Gains.” Intereconomics, Jan. 2017, pp. 34–37.

Quagliarello, R., Hamdy, A., Liuzzi, G. T., & Ciannamea, C. (2015). Achieving Gender Equality

and Sustainable Rural Development in the Mediterranean: Institutional Obstacles and

Possible Solutions. Agriculture & Forestry / Poljoprivreda I Sumarstvo, 61(1), 261-271.

doi:10.17707/AgricultForest.61.1.33

Schwab, Klaus. “Global Gender Gap Report 2017.” World Economic Forum, 2 Nov. 2017,

reports.weforum.org/global-gender-gap-report-2017/.

Tuttle, Brad. “Gender Equality: Iceland First Country to Require Equal Pay | Money.” Time,

Time, 9 Mar. 2017, time.com/money/4696591/equal-pay-gender-gap-iceland-women/.