The Missing Link: The Economics of Empowering Women

Earlier this month, the White House launched the Women’s Global Development and Prosperity (W-GDP) Initiative. W-GDP aims to help women in developing countries realize their economic potential through workforce development and vocational education, entrepreneurial support, and by removing obstacles that inhibit their full participation in the economy.   

I had the privilege of attending the event, joining a bi-partisan government official attendee group, and delegates from the public and private sectors to discuss how the business community can amplify its support for the advancement of women, who remain the most untapped resource in the global marketplace. It was a conversation that inspired each of us to take actions to support and drive economic opportunities for women around the world. At the same time, the challenges ahead of us are significant, as the barriers are well known, but the economic benefits of empowering women are also well documented. 

Research by the Organisation for Economic Co-operation and Development (OECD) estimates that factors stifling the economic potential of women cost the global economy up to $12 trillion. While more than half a billion women have been able to join the world’s labor force over the past 30 years, recent research from Catalyst, a nonprofit dedicated to building workplaces that work for women, found that globally, women’s participation rate in the workforce is actually declining, going from 51.4 percent in 1990 to 48.5 percent in 2018.

It’s hard to fathom how much we’ll continue to leave on the table by not moving more quickly to tackle barriers that prevent all women from becoming true participants in the global economy.

Some of these impediments include the absence of basic needs like clean water and reliable forms of energy, as well as access to an education—a fundamental prerequisite for attaining and retaining a job. Today, more than 130 million girls are out of school. If that population were a country, it would be among the top ten largest in the world. An estimated 775 million adults—64 percent of whom are women—still lack basic reading and writing skills. And across the world, 200 million young people leave school without the skills they need to thrive. As technologies continue to enhance the quality of life for many around the world, there are 3.9 billion people offline in rural areas. Most of these people are poorer, less educated and tend to be women and girls.

Women around the world also continue to face legal, regulatory and cultural challenges that prevent them from participating in their local economies. Globally, 104 of the 189 economies assessed in 2018 still have laws preventing women from working in specific jobs. In 18 economies, husbands can legally prevent their wives from working.

The economic benefits of knocking down these barriers, and empowering and educating women are well-documented. For developing countries, addressing the gender gap in education could yield between $112–$152 billion a year. Studies show that in countries as varied as Brazil, China, India, South Africa, and the United Kingdom, when women have greater control over household resources—either through their own earnings or cash transfers—they enhance a country’s growth prospect by influencing value-add purchases that benefit children, including increased spending on food and education. And as the OECD pointed out, the global economy stands to gain $12 trillion with increased labor and economic participation from women.

When we think about what more we can do to accelerate change and create long-term, sustainable economic opportunities for women, we have to look at public and private partnerships. Together, we can make investments in foundational elements like infrastructure and education to help develop and strengthen the global female talent pipeline across all stages of their lives.

Deloitte’s WorldClass initiative is one way we’re collaborating with businesses, government, and educators around the world to transform learning and help individuals in underserved communities develop the skills they need to meet future job demands. I know many other companies—from consumer goods to technology—are also collaborating through public-private partnerships to meet the essential needs of those in developing nations.

There is still a long way to go, but it’s important we stay the course. It is in our collective interest and vital to global economic growth to create and advance opportunities to empower women across the globe.