Economic Empowerment of Women: What Will it Take?

Estimates state that 1.5 billion people worldwide live in abject poverty with the majority living in the developing world. Research has shown that the depth and incidence of poverty are very high in sub-Saharan Africa in comparison to other regions of the world.

Doris Murimi, Deputy Director, ISS – Head Office, Pretoria

Estimates state that 1.5 billion people worldwide live in abject poverty with the majority living in the developing world. Research has shown that the depth and incidence of poverty are very high in sub-Saharan Africa in comparison to other regions of the world.

Given the current global economic and financial crisis that has seen the collapse of financial markets in both Europe and the US, there has been a significant decline in Africa’s economic growth in terms of falling commodity prices, diminishing foreign direct investments and reduced remittances from the diaspora.

The World Bank recently predicted that as many as 53 million more people in the developing world could likely slip into poverty due to this crisis. As a result, it is viewed by some economists that a chronic cycle of poverty is set to prevail in developing countries. Of particular note is that women bear a disproportionate burden of poverty compared to men which is a phenomenon that has been described as the ‘feminization of poverty’.

There are existing barriers which inhibit the economic participation and empowerment of women. One of these barriers is land access, ownership and control especially given that a large proportion of women earn a living from the agricultural sector. The value of land is seen in its ability to spur economic development as well as promote financial viability. However, it is not only about land access and ownership, but the ability of women to influence the use of effective operational management practices that are geared towards maximizing returns and business re-investment. This is in order to attain sustainable business growth that empowers women and enables them to escape the clutches of poverty.

There are also socio economic barriers amongst them, those that relate to: women’s ability to access resources such as investment capital and property; men’s dominance in key decision making positions particularly in the economic and political spheres; the high levels of illiteracy amongst women; effects of conflict and the resultant migration practices that worsen the vulnerability of women; the relatively higher predisposition of women to contracting HIV/AIDs than men which inadvertently affects capacity and productivity; and gender based violence that restricts women’s involvement in sustainable income generating activities.

Cultural barriers relate to cultural and societal perceptions that prevent the participation of women in empowerment and development activities. In particular, the patriarchal culture, which is described as a system of social organization that validates social hierarchy and gender relations of inequality, serves to restrict the access of women to various opportunities such as education, finance, markets and technology.

In addition, labour market barriers exist. According to the social construction of gender roles, a large proportion of women undertake roles that are termed as reproductive. These are roles engaged in caring, farming (food production) and hospitality which are perceived as domestic in nature. By implication, little worth is accorded to these roles and this is reflected in remuneration levels. To compound the issue, many of these functions operate within an informal environment which means that women’s contributions are not captured and reflected in the GDP of respective countries. An informal environment also signifies job insecurity and instability. Also, in respect to women’s multiple roles, the time allotted to household chores and responsibilities adds to the ‘time poverty’ of women further restricting their participation in the labour market.

Women have to a large extent been excluded from the financial or economic sector for various reasons. Primarily, it is because they do not have the requisite capital to be recognized as key players nor the muscle to negotiate for opportunities and terms in the financial markets. Consequentially, the sector does not design services that specifically cater and speak to the socio economic needs of women. In addition, entry barriers continue to exists into these markets such as: minimum prohibitive standards; bureaucratic registration processes that require women to have enlisted male support for example in the opening of bank accounts; and there is limited supply of available loan capital which automatically translates to men’s prioritization over women.

The legal environment has served to perpetuate the inequalities of women by not addressing existing disparities between legal and customary laws such as inheritance laws and land ownership which work against women. There continues to be lack of consultation and gender sensitive considerations in the formulation of laws and policies. Governments have also been slow at implementing and adopting reforms that cater to the specific needs of women such as gender mainstreaming and gender budgeting.

The lack of adequate female participation and representation in the political arena is one of the fundamental reasons why women’s issues and concerns continue to be sidelined. Some may question the validity of this argument given that party priorities and not individual consciousness tends to take centre stage in politics, irrespective of the leader’s gender. My response would be that granted, if the top bottom approach is not working, then the bottom up approach should be adopted in empowering women. This would see the championing of women’s initiatives, projects and enterprises from grass root levels. The responsibility would then be for those in government to recognize and support these grass root actions, through the creation of enabling environments with appropriate structures and mechanisms.

In conclusion, a quote from a Boston Consulting Group study in a recent Newsweek [21st September 2009] article on ‘The female factor’ and advocating for future markets to invest in women, states that “Worldwide total income for men is 23.4 trillion and is still more than double that for women [10.5 trillion] but the gap is poised to shrink significantly because the vast majority of new income growth over the next few years will go to women due to a narrowing wage gap and rising female employment.…..”

How many African women can fit into this new idealism? It will require the creation of an alternative inclusive economic framework, which reflects both a paradigm shift and transformation, resulting in women’s equal participation as both market producers and consumers. This is what it will take to empower women and narrow the gender gap.

Related content