Equality of opportunity as an engine of prosperity
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| EEOC 35th Anniversary Art Contest Chelsea Lapp, Age 11 Sixth Grade Flying Hills Elementary School El Cajon, CA |
We have learned much over the past several decades about the connection
between gender inequality and economic growth, particularly when we talk
about inequalities in education and employment. Inequalities in
education, for instance, artificially reduce the pool of talent which
societies can draw from; by excluding qualified girls from the
educational stream and promoting less qualified boys, the average amount
of human capital in a country will be reduced and this will have an
adverse impact on economic performance. We also know that the promotion
of female education leads to lower births per women, not only because
educated women will have greater knowledge about family planning but
also because education creates greater opportunities for women that may
be more attractive than childbearing.
Lower fertility levels help reduce child mortality and expand the range
of educational opportunities available to the next generation. All of
these factors combine to boost economic growth. Indeed, the effects of
lower fertility levels associated with improved female education have
long-lasting effects and deliver a “demographic dividend” a couple of
decades later. With reduced fertility levels the working-age population
will grow more rapidly than the overall population and this will boost
per capita economic growth.
Yet another powerful driver of economic growth associated with the
narrowing of employment gender gaps has to do with the “bargaining power
within families.” Not surprisingly, when women work and earn income as a
result, they will be more empowered within the home. Beyond the direct
personal benefits to her, the economics literature has identified a
number of other favorable effects such as higher savings, more
productive investments and better use and repayment of credit, all of
which are beneficial for economic growth. Other studies have shown that
with greater female power within the household there will be higher
investments in the health and education of children, thereby planting
the seeds for the accumulation of human capital in the next generation.
A further avenue of influence has to do with growing evidence that women
workers are less prone to corruption and nepotism than men workers. The
criminology literature, for instance, has long established that “the
most consistent pattern with respect to gender is the extent to which
male criminal participation in serious crimes at any age greatly exceeds
that of females, regardless of the source of data, crime type, level of
involvement or measure of participation.” [1]
More recently, a survey of 6,500 companies carried out in the United
Kingdom looking at the gender composition of company boards showed clear
evidence that companies with greater female participation in boards
were less likely to be hit by governance scandals involving bribery,
fraud and other factors likely to depress business confidence.[2]
So, boosting the employment of women is likely to be beneficial for
economic growth through improvements in the quality of governance.
Of course, while governments have played a central role over the past
century in the creation of a legal framework that has placed important
limitations on women’s ability to contribute meaningfully to the economy
or that have shaped in some adverse way her economic surroundings (see
the Women, Business and the Law
report for a detailed compendium across 143 countries of the ways in
which this has been done), there are many other forms of discrimination
embedded in the law, that go well beyond issues of gender.
Article 20 of the Constitution of Iran establishes that all citizens of
Iran have to be "in conformity with Islamic criteria." Hence, members of
the Baha’i community, Iran’s largest religious minority, are denied
access to schools and universities, barred from public sector
employment, and face severe work restrictions in virtually every other
sector of the economy. In Lebanon, groups such as Baha'is, Buddhists,
and Hindus may own property and assemble for worship, but may not marry,
divorce, or inherit property within the country. The Uganda
Anti-Homosexuality Act of 2014 punishes "aggravated homosexuality" with
life imprisonment and the "offence of homosexuality" with a prison
sentence of up to 14 years.
There is clearly a role for government to create the enabling conditions
for a sound economy and an equitable society that makes efficient use
of the natural, economic and human resources available to it to meet the
needs and ensure the well-being of everyone. Poverty is one indicator
of government failings in this area. Despite the rapid growth
experienced in several developing countries over the past few decades,
more than 1 billion people still live in extreme poverty, and inequality
is increasing around the world.
The World Bank has committed to achieving the twin goals of eliminating
extreme poverty and boosting shared prosperity. These goals go hand in
hand with equality of opportunity and the inclusive participation of all
segments of society in the economic and social spheres. Poverty is
often greatest in traditionally marginalized groups, and various forms
of discrimination can greatly depress the prospects for its alleviation.
The most sustainable path towards ending extreme poverty and promoting
shared prosperity is through creating an inclusive society, allowing
everyone, including traditionally marginalized groups such as ethnic,
religious, and other minorities, the same opportunity to participate in
and benefit from the economy. Governments have a critical role in
creating a foundation for equality of opportunity, both through
dismantling laws, regulations and policies which actively discriminate
against certain groups, and through adopting and promoting mechanisms
enhancing the enforcement of anti-discrimination legislation.
Prosperity involves more than just increasing and distributing wealth.
Human well-being includes social, cultural, ethical and spiritual
dimensions. The diversity and additional perspectives contributed by
presently marginalized groups can, when allowed full expression and
participation, enrich the community and society and add to collective
prosperity. Equality of opportunity not only prevents a waste of human
resources and capacities, but also opens the potential to even higher
levels of social and economic well-being.
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