BARRIERS TO WOMENS FULL FINANCIAL INCLUSION Tazeen Hasan GBA - - PowerPoint PPT Presentation

LEGAL & REGULATORY BARRIERS TO WOMEN’S FULL FINANCIAL INCLUSION

Tazeen Hasan GBA Annual Summit November 13, 2018

MEASURING GENDER EQUALITY IN THE LAW FOR 10 YEARS

2010 2010 2012 2012 2014 2014 2016 2016 2018 2018

In its fifth edition, Women, Business and the Law 2018 expands its analysis to 189 economies

WHY DO LAWS MATTER?

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Equality of

• pportunity allows

women to make the choices that are best for them, their families and their communities

GENDER EQUALITY IS SMART ECONOMICS

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▪ Legal gender differences significantly decrease female labor force participation and undermine GDP growth ▪ If women’s labor force participation were the same as men’s, as much as $28 trillion could be added to global GDP by 2025 ▪ Legal gender equality is associated with lower gender gaps in labor force participation without any significant effect on male participation rates

27% 19% 15% 10% 9% Middle East & North Africa South Asia Latin America & Caribbean Europe Sub-Saharan Africa

Estimated income losses due to gender gaps in women's employment and entrepreneurship

IDENTIFICATION MATTERS FOR FINANCIAL INCLUSION

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Women cannot legally apply for a national ID card in the same way as men in 11 economies globally, including 4 in the Middle East and North Africa

LAWS RESTRICTING WOMEN’S AGENCY AND MOBILITY CAN HINDER THEIR FINANCIAL INCLUSION

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3 4 17 31 37

Open a bank account Register a business Travel outside the home Be head of household Apply for a passport

Afghanistan; Algeria; Bahrain; Barbados; Belize; Benin; Botswana; Cameroon; Congo, Rep.; Cyprus; Dominica; Egypt, Arab Rep.; Fiji; Gabon; Grenada; Guyana; Haiti; Iran, Islamic Rep.; Jordan; Malawi; Mali; Myanmar; Nigeria; Oman; Pakistan; Philippines; Samoa; Saudi Arabia; Seychelles; Solomon Islands; St. Vincent and the Grenadines; Sudan; Trinidad and Tobago; Uganda; United Arab Emirates; Yemen, Rep.; Zambia Bahrain; Burundi; Cameroon; Central African Republic; Chad; Chile; Comoros; Congo,

• Dem. Rep.; Congo, Rep.; Djibouti; Gabon; Guinea; Guinea-Bissau; Indonesia; Iran,

Islamic Rep.; Iraq; Jordan; Libya; Madagascar; Mali; Mauritania; Morocco; Niger; Oman; San Marino; Saudi Arabia; Senegal; Sudan; Tunisia; United Arab Emirates; Yemen, Rep. Afghanistan; Bahrain; Brunei Darussalam; Egypt, Arab Rep.; Iran, Islamic Rep.; Iraq; Jordan; Kuwait; Malaysia; Oman; Qatar; Saudi Arabia; Sudan; Syrian Arab Republic; United Arab Emirates; West Bank and Gaza; Yemen, Rep. Bhutan; Guinea- Bissau; Pakistan; Suriname

Chad; Guinea- Bissau; Niger

Actions that women cannot legally perform in the same way as men

GE GEND NDER ER GA GAPS PS IN IN ACC CCOU OUNT T OWNE WNERSH RSHIP IP AR ARE E LARGER WHERE WOMEN’S MOBILITY IS CO CONS NSTRA TRAINED NED

56% 60% 17% 25% Female Male Female Male YES NO

Can a married woman choose where to live in the same way as a married man?

Account at a financial institution (% age 15+)

12% 15% 4% 7% Female Male Female Male YES NO

Can a married woman choose where to live in the same way as a married man?

Borrowed from a financial institution (% age 15+)

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BARRIERS AND ENABLERS TO FEMALE ENTREPRENEURSHIP: ACCESS TO PROPERTY

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• In some economies, e.g. Brunei Darussalam, Indonesia and Malaysia, the value of

a wife’s non-monetary contributions, such as taking care of the children and household, is recognized when dividing property between spouses upon divorce

• In Jordan a law was introduced in 2010 requiring registration of inheritance and a 3-

month waiting period during which a woman cannot waive her inheritance rights

THE LEGAL RECOGNITION OF NONMONETARY CONTRIBUTIONS CAN PROMOTE WOMEN’S USE OF DEBIT CARDS

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54% 56% 10% 17% Female Male Female Male YES NO

Does the law recognize nonmonetary contributions in separate property regimes? Debit card in own name (% age 15+)

42% 43% 5% 10% Female Male Female Male YES NO

Does the law recognize nonmonetary contributions in separate property regimes? Debit card used in the past year (% age 15+)

ESTABLISHING GOOD CREDIT HISTORIES CAN HELP WOMEN BUILD REPUTATION COLLATERAL FOR LOANS

Utility bill in woman’s name Utility company records her successful repayment Credit agency collects repayment information Women can leverage payment of utility bills to build their reputation collateral

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BARRIERS AND ENABLERS TO FEMALE ENTREPRENEURSHIP: ACCESS TO CREDIT

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• 66 economies, including Malta

and Morocco, prohibit discrimination in access to credit based on gender

• 32 economies, including

Morocco and Tunisia, prohibit discrimination in access to credit based on marital status

LAWS ON NON-DISCRIMINATION IN ACCESS TO CREDIT CAN PROMOTE FINANCIAL INCLUSION

65% 39% Yes No

Does the law prohibit discrimination based on gender in access to credit? Account at a financial institution, female (% age 15+)

50% 22% Yes No

Does the law prohibit discrimination based on gender in access to credit? Debit card in own name, female (% age 15+)

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THE TACKING CHILDCARE PROJECT

A WBL AND IFC STUDY OF 50 COUNTRIES HIGHLIGHTING THE BUSINESS CASE FOR CHILDCARE (2017)

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IN 15 ECONOMIES IN MENA THE GOVERNMENT PROVIDES CHILDCARE SERVICES

THE CHILDCARE BUSINESS AND DEVELOPMENT CASE

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✓ GOOD FOR CHILDREN

• Benefits of early childhood development range from healthy development and greater

capacity to learn while in school to increased productivity in adulthood (World Bank, 2015)

✓ GOOD FOR WOMEN’S EMPLOYMENT

• Investments in care economy would create twice as many jobs than investments in

construction industry and decrease the gender gap in employment (ITUC, 2016)

• Value of unpaid care estimated at $10 trillion or 13% of global GDP (McKinsey, 2016)

✓ GOOD FOR ECONOMIES

• Investing 2% of GDP in care economy of 7 developed countries would create more

than 21 million jobs and help countries overcome challenges of aging populations and economic stagnation (ITUC, 2016)

• Investing in early childcare could generate 719,000 jobs in Turkey alone and expand

the skilled talent pool by encouraging women’s labor force participation (ILO et al, 2015)

MORE WOMEN RECEIVE WAGES WHERE GOVERNMENTS SUPPORT CHILDCARE

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ENROLLMENT IN PRE-PRIMARY SCHOOL IS HIGHER WHERE CHILDCARE FEES ARE TAX DEDUCTIBLE

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FROM INFORM TO REFORM WOMEN’S FINANCIAL INCLUSION

ECONOMY REFORMS Islamic Republic of Iran The Islamic Republic of Iran improved access to credit information by reporting data on credit payments from an automobile retailer Iraq The 2015 Labor Law mandates employers to provide childcare services Tunisia Tunisia strengthened credit reporting by distributing payment information from a telecommunications company West Bank and Gaza West Bank and Gaza passed the Palestinian Law in 2017 on Education and Higher Education, which for the first time mandates the government to provide one year of free and compulsory public preschool

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USING WOMEN, BUSINESS AND THE LAW IN YOUR WORK

IDENTIFY GOOD PRACTICES INCORPORATE AN ECONOMIC ANALYSIS INFLUENCE REFORM

Reform laws, unleashing women’s full potential Examine the legislation that works for women employees and entrepreneurs Demonstrate how gender gaps undermine growth

POLICY RECOMMENDATIONS

Enact laws that promote women’s access and control over assets e.g. recognition of women’s non-monetary contribution and mandatory joint titling of land Reform laws that constrain women’s mobility and access to national IDs and enact laws that provide an enabling childcare framework Ensure credit agencies collect repayment history from microfinance institutions, retailers and utility companies Introduce laws on non-discrimination in access to credit based on gender and marital status

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VISIT OUR WEBSITE AT WBL.WORLDBANK.ORG

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#WomenBizLaw #Get2Equal

@womenbusinesslaw

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