WASHINGTON,
January 14, 2020 — The regulatory environment for women’s economic
participation has improved over the past two years, with 40 economies enacting
62 reforms that will help women – half the world’s population – realize their
potential and contribute to economic growth and development, says a new World
Bank study. Still, the results are uneven — women in many countries have only a
fraction of the legal rights of men, holding back their economic and social
development.
The
study, Women Business and the Law 2020, measures 190 economies, tracking how
laws affect women at different stages in their working lives and focusing on
those laws applicable in the main business city. It covers reforms in eight
areas that are associated with women’s economic empowerment, conducted from
June 2017 to September 2019.
“Legal
rights for women are both the right thing to do and good from an economic
perspective. When women can move more freely, work outside the home and manage
assets, they are more likely to join the workforce and help strengthen their
country’s economies,” said World Bank Group President David Malpass. “We stand
ready to help until every woman can move through her life without facing legal
barriers to her success.”
The
areas of Workplace and Marriage saw many reforms, especially in the enactment
of laws that protect women from violence. In the last two years, eight
economies enacted legislation on domestic violence for the first time. Seven
economies now have new legal protections against sexual harassment in
employment.
Twelve
economies improved their laws in the area of Pay, removing restrictions on the
industries, jobs and hours that women can work. Globally, the most frequent
reforms were in areas related to Parenthood, with 16 economies enacting positive
changes. Reforms included expansion of the amount of paid maternity leave
available to mothers, introduction of paid paternity leave and prohibition of
dismissal of pregnant employees.
Achieving
legal gender equality requires strong political will and a concerted effort by
governments, civil society, and international organizations, among others. But
legal and regulatory reforms can serve as an important catalyst to improve the
lives of women as well as their families and communities.
“This
study helps us understand where laws facilitate or hinder women’s economic
participation. It has incentivized countries to undertake reforms that can
eliminate gender imbalances,” said World Bank Group Chief Economist Pinelopi
Koujianou Goldberg. “Achieving equality will take time, but it is encouraging
that all regions have improved. We hope that this research will continue to
serve as an important tool to inform policy making and level the playing field
for women.”
The
WBL index measures only formal laws and the regulations which govern a woman’s
ability to work or own businesses– a country’s actual norms and practices are
not captured. The global average score was 75.2, which improved slightly from
73.9 two years ago. Clearly, much more work remains as women in many countries
have only a fraction of the legal rights of men, holding them back from
opportunities for employment and entrepreneurship.
The
eight areas covered by the index are structured around women’s interactions
with the law through their careers: Mobility, Workplace, Pay, Marriage,
Parenthood, Entrepreneurship, Assets, and Pension.
Reforms
are urgently needed in the area of Parenthood, which scored just 53.9 on
average. In almost half of economies that provide any form of paid maternity
leave, the burden falls on the employer, making it more costly to hire women.
But paid maternity leave can help to retain female employees, reducing turnover
cost and improving productivity. These
longer-term benefits often outweigh the short-term costs to employers, according
to the study.
Of
the ten economies that improved the most, six are in the Middle East and North
Africa, three are in Sub-Saharan Africa and one is in South Asia. While there
was considerable progress, the Middle East and North Africa remains the region
with the most room for improvement.
Eight countries now have a score of 100, with Canada joining Belgium,
Denmark, France, Iceland, Latvia, Luxembourg and Sweden due to a recent reform
in parental leave.
Regional
Highlights
Advanced
Economies: Advanced economies continue to make progress on the indicators. Of
the 40 economies with scores above 90, 27 are OECD high-income economies. The
Czech Republic and the United States reformed laws related to paternity and
parental leave, giving parents more opportunity to share childcare
responsibilities, while Italy and Slovenia equalized pension benefits between
men and women.
East
Asia and the Pacific: Four economies conducted four reforms in three areas.
Thailand introduced a reform in the area of getting paid, and Timor-Leste in
the area of getting a pension. Fiji increased the duration of paid maternity
leave and introduced paid leave for fathers for the first time.
Europe
and Central Asia: Four economies enacted five reforms in five areas, and two
economies changed laws to reduce opportunities. Armenia enacted legislation
protecting women from domestic violence. Cyprus introduced paid paternity
leave. Georgia adopted legislation to provide for civil remedies in the case of
the unfair dismissal of a victim of sexual harassment. Moldova lifted some restrictions on women’s
employment by limiting them to pregnant, nursing, and postpartum women.
Latin
America and the Caribbean: Four economies made four reforms in four areas.
Barbados enacted legislation on sexual harassment in the workplace. Peru and
Paraguay received high scores in the 90s. Economies in this region made
important strides toward lifting restrictions placed on women in the 1980s and
1990s, but the pace of reforms slowed over the past decade.
Middle
East and North Africa: Seven economies enacted 20 reforms in seven areas,
although one economy implemented a negative reform. Saudi Arabia made the
biggest improvement globally, enacting reforms in six out of eight areas
measured including in women’s mobility, sexual harassment, retirement age and
economic activity. The United Arab Emirates also reformed in five areas.
Djibouti, Bahrain, Jordan, Morocco and Tunisia implemented an additional nine
reforms.
South
Asia: Four economies enacted seven reforms in four areas. Nepal introduced a
new labor law that prohibits discrimination in employment, paternity leave and
new pensions regulation. Three other countries also enacted reforms: Pakistan
and Sri Lanka made progress in the area of Parenthood. In India, the state of
Maharashtra eliminated restrictions on women’s jobs.
Sub-Saharan
Africa: Eleven economies implemented 16 reforms in seven areas. The Democratic
Republic of Congo introduced social insurance maternity benefits and equalized
retirement ages. In Côte d’Ivoire, spouses now have equal rights to own and
manage property. Mali enacted reforms on non-discrimination in employment. São
Tomé and Príncipe adopted a new labor code to meet job market demands and bring
laws in compliance with international standards. South Sudan adopted its first
labor law since independence.
