A global imperative

• Author: Christine Lagarde
• Position: Managing director of the IMF
• Pages: 5-5

M arch 8 marks International Women’s

Day, which provides a chance to reflect

on the struggle for greater gender

equality. e roots of this annua l event

reach back more than a centur y, yet

its focus on respect and opportunities for women

remains strik ingly relevant today—from sexual

harassment and violence to unequa l laws and unfair-

ness in the workplace, where women are too often

underemployed, underpaid, and underpromoted.

Unequal or unfair treatment can marginalize

women and hinder their participation as produc-

tive individuals contributing to society and the

economy in invaluable ways. Yet when I consider

the rich tapestry of organizations and individu-

als who can make a difference to ensure women

have equal opportunities, I a lso see a crucial role

for policymakers. ey c an use their positions to

design policies that help women and girls access

what they need for a fulfilling life—including

education, health services, safe transportation,

legal protection against harassment, finance, and

flexible working arrangements.

e IMF recommends these kinds of policy

measures to its member countries—and works

with many governments to examine how pol-

icies affect women. In recent years we have

increased our emphasis on women’s empower-

ment precisely because, beyond the importa nt

ethical considerat ions, it also represents a missed

opportunity in the pursuit of macroeconomic

stability and inclusive grow th—where the IMF’s

expertise lies.

Our research has shown, for example, that if

women’s employment equaled men’s, economies

would be more resilient and economic growth

would be higher. Our new estimates show that,

for the bottom half of countries in our sample in

terms of gender inequality, closing the gender gap

in employment could increase GDP by an average

of 35 percent—of which 7–8 percentage points are

productivity gains due to gender diver sity. Adding

one more woman in a firm’s senior management

or corporate board—while keeping t he size of the

board unchanged—is associated with an 8 –13

basis point higher return on assets. If banks a nd

financial super visors increased the share of women

in senior positions, the banking sector would be

more stable too.

e IMF’s 189 member countries face many dif-

ferent challenges, but empowering women remains

a common denominator and a global imperative

for all those who care about fa irness and diversity,

but also productivity and grow th of societies and

economies that are more inclusive. If we can ac hieve

this, we all gain.

CHRISTINE LAGARDE is managing director of the IMF.

Empowering women is critical for the world’s economy and people

Christine Lagarde

A Global

Imperativ

March 2019 | FINANCE & DEVELOPMENT 5