The economic and social benefits of gender equity
Closing the gender gap would not only imply significant advances for the development of Latin America, but would also generate important economic benefits
In addition to representing one of the pillars of any development public policy, gender equity is also an invaluable driver of economic growth. In fact, a significant part of the Latin American economic boom at the beginning of the century may be explained by the incorporation of close to 70 million women to the labor market, contributing, among other things, to reduce poverty, energize national markets, and reduce inequalities.
But there is still a long road ahead and a great potential to unleash. It has been estimated that the economic impact of closing the gender gap in the labor market would lead to an increase of close to USD 2.6 trillion in the GDP, which represents a growth of 34 percent.
The study "The power of parity: How advancing women's equality could add $12 trillion to global growth" written by Mckinsey & Company, indicates that the benefits of advancing in gender equity would translate into more than USD 1 trillion in the next decade, the second highest potential gain at a global level. Given the current low growth scenario in the region, this opportunity represents an important value added.
According to the research, women hold three times more non-remunerated jobs than men, and while this value is within the average at a global level, it is still relevant. In addition, the participation of women in the labor force reaches close to 70 percent, a number that is well below China, Europe, or even Sub-Saharan Africa, where it reaches close to 80 percent.
To accelerate the process toward gender parity in Latin America, it is necessary to focus on the economic empowerment of women, so priority must be given to their access to education, financial and digital services, as well as ensure greater legal protection and reduction of non-remunerated work.
With the objective of ensuring sustainable growth and social inclusion in the region, CAF, Development Bank of Latin America, incorporates the gender approach to its operations so that the benefits may be tangible in the medium term and in the different sectors of society.
In this respect, the RUTAS program has facilitated the incorporation of women to the local labor market, whether as entrepreneurs, creating and managing their own businesses, or as employed workers. This increases their financial autonomy and improves the valuation of female work, contributing to provide power to women within the family, increase their self-esteem as well as their sense of citizenship. Indirectly, the increase of purchasing power has a positive impact on the schooling of children and, therefore, their future development.
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