KEY POINTS:
Inequality between men and women is costing the world billions a year and this justifies a global initiative to force governments to address the issue, new research shows.
Ground-breaking research by economists at the International Monetary Fund shows that governments should use economic policy to reduce gender inequalities, which result in lost economic growth. Countries should use their annual budgets to ensure that public money is spent in ways that reduce the gender gap, and to follow through on rhetoric.
The report, which is not endorsed by the IMF, suggests that the fund itself could use the surveillance of its 184 members to encourage governments to see the benefits of reducing the gender gap and of removing "arbitrary discrimination".
The report comes a week ahead of the launch of the European Year of Equal Opportunities for All, which will highlight the lack of representation of women at all levels of one of the world's richest societies.
A survey of more than 40 rich and poor countries found that gender divides reduced economic growth while economic growth tends to narrow the gap between the sexes.
On one level, women with the power over a household's resources tend to devote more to fostering their children's potential and this has knock-on - but unrewarded - benefits to society as a whole. Women also tend to invest savings in more productive ways and keep up the repayments on loans better, both of which have wider economic benefits.
The survey also found that women were more supportive of collective insurance and redistributive spending, although the author of the report, Janet Stotsky, admits it is debatable whether that is a laudable outcome.
"Women often face barriers in gaining access to a good education and health care for economic and cultural reasons," she said. "The end result is a lower level of educational attainment, a higher rate of infant mortality for girls ... and markedly lower wages and fewer job opportunities."
- INDEPENDENT
