Article by Muntahar Ul Muzaffar from Economics Wing, GAEE JMI

This article analyses the bidirectional relationship between economic development and women’s empowerment. Further, two possible outcomes are examined and supported by case studies from Tanzania and China, recent research, and arguments advanced by renowned economists. Women’s fundamental rights and the status they deserve in society are also emphasized. Finally, various systematic flaws are identified, and it is emphatically stated that policy actions should prioritize the welfare of women.

Since humanity became aware of the perils of gender inequality, there has been a persistent shift in the discourse on development and women. People of various standing, position, and power have deduced a bidirectional relationship between economic development and women’s empowerment.

Although development can bridge the inequalities, it has also been found that the perpetual increase in discrimination against women will impede development. In an article in the New York Review Of Books, Amartya Sen sheds light on the injustices that women face as a result of their gender. He has further coined the term “missing women” i.e., women who would likely be alive today if they had been born men. Essentially, they are missing due to neglect, as well as a lack of respect, poor nutrition, and healthcare.

Certain estimates on the subject are harrowing— highlighting that the number of missing women in today’s world exceeds the total number of men who died in all of the twentieth century’s wars. Sen further contends that increasing women’s voice and agency by empowering them to be self-sufficient can help in the resolution of the problem.

Gender inequality is widespread in developing countries. Recent research suggests that economic growth achieved by reducing poverty and increasing opportunity can positively impact gender equality. Effectively, economic development reduces the constraints that are unique to poor households, making them less likely to make life-or-death decisions.

Since women bear the brunt of such constraints and choices, increasing the availability of resources to such families under the pretense of economic development can save women from the excess vulnerabilities they are subjected to.

In rural Tanzania, an unusual phenomenon has been observed in which, during times of crisis when the harvest is poor, or there is drought, the vulnerability of women increases to the point where murders of “witches” (especially old women) are twice as likely to occur as in normal years. Therefore, it may be concluded that women’s vulnerability would be greatly reduced by assisting these poor households in weathering the crises properly.

Regardless of whether or not women are at the forefront of the effort, combating poverty is bound to benefit everyone— including women. Pension remittances in South Africa are an excellent example of how nontargeted transfers have benefited women. Witch hunts in rural Northern Province decreased significantly in the early 1990s after universal old-age pension programs were implemented.

The gendered division of labor expects women to use their time in such a manner that they perform housework and provide caregiving services. This type of work saves women time that they could spend working in the market. Economic development can aid in women’s empowerment by freeing up a significant amount of time.

Dinkleman’s (2010) use of the logical feasibility of electrification in South Africa provides an explanation for this. She had hoped to investigate the impact of electricity supply on male and female labor force participation. The findings revealed that electrification increased female employment by 9.5 percentage points while having no effect on male employment. This increase was due to more time available for women to work at home. 

Economic development is also linked to women’s legal rights (in property rights, access to land and bank loans, etc.). In addition, Doepke and Tertilt (2009) discovered a negative correlation of 0.4 (or higher) across countries between a lack of rights and GDP per capita.

Although the statements above emphasize the importance of economic growth in empowering women, this story has another side. Economic growth is still insufficient to end gender discrimination. Despite massive economic growth in China, the sex ratio at birth has worsened alarmingly since 1970.

The labor market in developed countries does not paint a favorable picture, as women, despite being as efficient as men, continue to earn less than men at all levels of qualification. However, women’s empowerment can be a means of achieving economic development. As Kofi Annan has stated, bridging inequalities between men and women and empowering women is critical.

Allowing a woman’s full participation in all levels of decision-making is a fundamental human right. Furthermore, women play an important role in development, and women empowerment remains desirable for efficiency. Micro-credit schemes are aimed at women because it is believed that women spend and invest in ways that improve family well-being and in goods that lead to development.

This is also why several conditional cash transfer benefit programs only transfer to women. In addition, empowering women and closing gender gaps globally is one of the keys to achieving the 2030 Agenda for Sustainable Development.

At the Fourth United Nations Conference on Women, former World Bank President James Wolfensohn stated:

“Education for girls has a catalytic effect on every dimension of development: lower child and maternal mortality rates; increased educational attainment by daughters and sons; higher productivity; and improved environmental management. Together these can mean faster economic growth and, equally important, wider distribution of the fruits of growth… More education for girls will also enable more and more women to attain leadership positions at all levels of society: from health clinics in the village to parliaments in the capitals. This, in turn, will change the way societies will deal with problems and raise the quality of global decision-making.” 

Therefore, It is not incorrect to say that economic development leads to women’s empowerment, and women’s empowerment, in turn, leads to economic development because it aids in decision-making. However, this narrative cannot overlook the inadequacy of economic development in bringing about women’s empowerment.

Furthermore, it has been observed that how women’s empowerment has been forged has resulted in only minor improvements, i.e., children’s welfare. Hence, to achieve better results in economic growth and women’s empowerment, it is necessary to combine the two with policy actions prioritizing women’s welfare.

(Muntahar Ul Muzaffar is a B.A. programme Economics student at Jamia Millia Islamia, Delhi, and a part GAEE JMI, an autonomous branch of Global Association of Economics Education in India. The views expressed are personal and they do not purport to reflect the opinions or views of GAEE or its members.)