How to Achieve Economic Equality between Men and Women

How to Achieve Economic Equality between Men and Women

Abstract

Economic policies are defined in a way that women are not favored, and the only jobs available for them are unpaying domestic jobs. The full potential of women’s capabilities is not realized as a benefit of their contributions are not documented either are their income and details of employment. Therefore banks find it challenging to advance women loans so that they can pursue their dreams of financial independence. Also, women earn far much less than their male counterparts. All of these cases have devastating effects on society as well as the economy of a country. In fact societies with gender inequalities suffer financial loses unknowingly. Fortunately, the economic empowerment of women can be achieved when they have access to credit as men, when the pay gap is addressed and when people realize that for gender equity, there needs be financial empowerment of women.

Despite the presence of social-economic classes, there are systematic gender differences in material wellbeing between men and women in varying degrees across countries. As a result, economic inequality between men and women is evident in many societies, with men on average better placed in social, economic, and political spheres. Genders being one of the primary markers of social and economic stratification, for more than two decades, governments strive to reduce this aspect, thereby becoming the center stage of politics and organizations. Gender equality is one of the significant millennium development goals, as the issue affects women across the world. The need for women empowerment in all aspects and especially economically is essential for ensuring an inclusive future society.

According to Oxfam, “effective economic empowerment for women happens when women enjoy their rights to control and benefit from resources, assets, income and their own time, and when they can manage risk and improve their economic status and wellbeing. However, for WEE to translate into meaningful empowerment, women must also have the autonomy and self-belief to make changes in their own lives, including having the agency and power to organize and influence decision making, while enjoying equal rights to men and freedom from violence.”( Oxfam 2017)

In 2017, women around the world contributed up to 47 percent of the formally employed persons but only earned 33 percent on average while men gained 77 percent of the total global per capita income. These data are crucial in understanding the immense economic inequalities between men and women in the world. Therefore, in addressing gender equity and financial support through an economic view, it is critical first to understand that both aspects are inseparable. In other words, without the ability to have and make independent financial decisions for themselves and their families, women are not able to sincerely attain equality. Achieving gender empowerment and equity requires well-laid policies to intervene and address factors that slightly deter women’s economic freedom.

Women’s economic empowerment entails achieving women’s equal access to financial resources and control over these resources to give them the power to make uninterrupted decisions over their lives. Gender equity is now a global policy and marks the core of Sustainable Development Goals (SDGs). This initiative will ensure economic growth due to an increase of per capita income across gender, which will ultimately reduce poverty and improve human development across the world. The benefits for society and families are immense: Women’s economic empowerment leads to an increase in children’s investments, including, children’s education and health hence reduce poverty. Recent studies estimate that gender parity has the potential to boost global gross domestic product by $ 12 trillion or $28 trillion between 2019 and 2025. On the other side, gender inequality makes countries’ economies to lose out, and these economies cannot compete favorably with countries that embrace gender parity.

There are compelling arguments on equality, its efficiency, and how to tackle inequality in labor markets around the world. In addressing gender equality, it is one cannot ignore the fact that both men and female face different challenges and thus may have different goals in life. However, both of them have equal rights, and this factor entitles both genders to equal opportunity. Currently, women experience a disproportionate share of domestic work, which translates to about 80 percent of unpaid household duties around the world. Also, women across all value chains and paid workforce are statistically likely to have considerable amounts of domestic responsibilities than their male counterparts in the same working-class bracket. UN research on gender and care states that women work twice as men in unpaid local care work. Outstanding domestic work plays a significant role in economic inequality but also plays a vital role in businesses implicitly, and therefore, the women responsible should receive compensation. In other words, the business cannot function effectively without immensely relying on this unpaid workforce which provides and ensures healthy lives, and education provision for these employees daily.

Steps to Achieve Equal Pay For Both Man and Women

Most governments are now focusing on mitigating barriers that have in the past limited or barred women’s financial freedom, factors such as, women’s access to credit, equal pay for work and financial independence are the vital first steps in achieving gender equity.

Acknowledging Institutional Barriers to Credit

The first step to achieve economic empowerment for women means that everyone should have to be treated equally and fairly; this does not mean equal treatment across the board. Therefore, equitable treatment regarding access to finance should consider the specific aspects between men and women, where women have more needs that are more distinct hence require separate and specialized tools to achieve the same status as men’s financial status. In particular, women have a higher likelihood to work primarily in the unpaid domestic sector; thus, their employment and salary records are ambiguous, making it impossible for statisticians to provide proof of women’s financial stability. Most of the time, such trends often bar women from obtaining bank loans or credit to start small businesses, grow wealth, purchase land parcels, or engage in any investments to improve their financial wellbeing. On the other side, men are more likely to get hired in paying jobs (formal employment), and because they have a regular income, they are readily offered financial support by banks. As a result, men can start a business, borrow money to buy lands, and eventually, they can improve their revenue earnings. Bearing in mind the presence of this aspect, it prudent for the society to open its eyes and support women to get financial backing from these financial institutions.

To narrow this gap, banks must directly take into consideration the effects of denying women credit and evaluate ways in which women who do not receive any regular payment due to unemployment can obtain loans at the same rate that their male counterparts do.  Even though financial institutions will not readily accept this method because they should see documentation, they should look for other ways to evaluate the credibility of these women to access the credit. Banks should also offer economic support by providing solutions that will specifically enhance women’s funding. There are some cases that banks have allowed women to have multiple co-signers and attend weekly technical courses to improve their knowledge of financial matters. Eventually, with time, women can attain the same economic status as men, regardless of the unequal initial support.

Addressing the Gender Pay Gap

A recent study in 2017 by the UN shows that women earn only 37 percent while male workers earn 73 percent in equivalent work. This pay gap has considerable effects on both a single woman and a woman who has a family. Lower wages for households with women as the sole breadwinners make it difficult for the family to have a comfortable life. Low wages also limit the affected woman’s sense of choice as it prevents her from chasing her dreams, including land ownership, business involvement, future education, or investment in any financial activity. The report also brings to light evidence that households with women earning considerable salaries benefit their families, and generally, the society at large because they are likely to spend the money on food and education. On the other hand, men earning the same salary and have sole control of financial faculties rarely support society in the same way as women.

Realizing Financial Independence in the Battle for Gender Equity

There is a global reaffirmation that empowering women leads to greater following and institutional changes that generally leads to an all-inclusive society. When the exclusion of girls in decision-making levels, whether knowingly or unknowingly, their potential is silenced. Evidence shows that they are many women who are primary caregivers and do not earn any compensation; therefore, for women to exercise the benefits of empowerment, their financial independence needs to be realized.

A society where women work and treated equally as men is an important goal that everyone in the community should not only envision but also have an opportunity to experience.