Gender equality is an even bigger driver of economic progress than we thought
It is hard to find a word that is more relevant to the world’s greatest challenges and policy priorities than ‘inclusion.’ Inclusive, green economic growth that benefits all of society is an essential component of sustainable prosperity, social cohesion, competitiveness and geopolitical stability. Supporting a ‘just transition’ that includes all members of our societies is crucial to ensure that climate action and the digital transformation lead to a more sustainable and secure world.
Gender equality and equal rights are not just a matter of equity; they are also of paramount economic importance. Research from the International Monetary Fund (IMF) suggests that narrowing the gender gap in labour markets could increase gross domestic product (GDP) in emerging markets and developing economies by almost 8%.
The gains from fully closing the gender gap would be even higher, lifting GDP in those countries by 23% on average. Simply put, diversity and an equal role for women in the economy, in decision-making, and in policy debates bring better results.
Mobilizing all available talent maximizes productivity and competitiveness, which will be crucial for addressing climate change and promoting global prosperity. It is especially important at a time when the combined effects of the climate crisis, the covid pandemic and Russia’s invasion of Ukraine threaten to reverse many of the achievements we thought we had secured.
With four billion people around the world voting in elections this year, there is no better time to highlight the large and positive impact that gender equality has on all societies. For example, research by the European Central Bank suggests that a one-percentage-point increase in female managers at a firm leads to
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