Want to fight gender inequality? Study of data from 118 countries shows development aid works

Gender inequality is not only unfair, it is also a drag on the global economy. Giving women the same economic opportunities as men would add about $12 trillion to global gross domestic product by 2025, according to one analysis. That’s an increase of 11%.

The link between women’s empowerment and economic growth is well established. When women are economically empowered, they invest more in their families, creating a cycle of positive outcomes that spans generations. Women’s participation in the workforce leads to greater productivity and brings diverse perspectives that improve decision-making and drive innovation.

Recognizing these benefits, governments and nongovernmental organizations have increasingly directed aid (funds provided to developing countries to foster economic growth) toward promoting women’s empowerment.

As an economist who studies development, I wanted to know if all that money was really making a difference. So in a recent study, my colleagues and I analyzed the impact of gender-specific aid on gender inequality using data from 118 countries over a 13-year period, from 2009 to 2022.

What we found is encouraging: gender-specific aid reduced inequality in most of the countries we studied.

We looked at two types of gender-related aid. The first involves funding projects that link gender to broader economic goals. Development experts call this “significant gender-related aid.” There is also funding that specifically and explicitly targets gender equality. Experts call this “core gender-related aid.”

We found that the first approach consistently and significantly reduced gender inequality in 115 of the 118 countries studied. The second approach had statistically significant effects in 85 countries. It was also much more effective when combined with the first approach.

Our findings strongly suggest that integrating gender-related aid into broader development efforts is essential to promote gender equality. Gender and development are closely linked, a fact that is often overlooked. Recognizing this link is essential to achieving sustainable and inclusive growth.

Women Empowerment Success Stories

This may all sound abstract, but our research shows that the world has made progress in people’s lives in recent decades. Cases from several countries show how much progress is possible:

Rwanda: Following the 1994 genocide, Rwanda made concerted efforts to rebuild its society with gender equality at its core. Today, women hold 61 percent of parliamentary seats, the highest percentage in the world. This remarkable achievement is in part a direct result of gender-focused policies and significant investments in women’s political empowerment. Rwanda’s progress illustrates how political will and dedicated gender-focused assistance can transform a society.

Bangladesh: Despite traditional gender roles, Bangladesh has made significant progress in gender equality, particularly in education and economic participation. Through targeted programs such as the Girls’ Secondary School Scholarship Program and microfinance initiatives by organizations such as Grameen Bank, Bangladesh has seen substantial improvements in girls’ education and women’s economic empowerment. These initiatives have helped reduce gender disparities and boosted economic growth.

Ethiopia: Over the past few decades, Ethiopia has invested heavily in education, particularly for girls. Programs to increase enrollment and reduce girls’ dropout rates have improved literacy rates and health outcomes. These educational advances have given women greater economic and social power, reducing gender inequalities.

Despite the progress made, these results are not set in stone. Instability can quickly undo years of progress. Recent political setbacks in Afghanistan, Brazil and the United States show the need for vigilance.

Women’s empowerment also empowers men

Debates about the importance of reducing gender inequality often revolve around the direct benefits it brings to women and girls. But everyone, including men, stands to gain from a more gender-equal society.

First, women’s economic empowerment leads to stronger economies, which benefits everyone. Research shows that gender equality fosters healthier relationships, reduces violence, and fosters more cohesive and supportive communities. Similarly, workplaces that prioritize gender equality tend to have better team dynamics, higher employee satisfaction, and increased productivity. These benefits benefit everyone, regardless of gender.

Gender equality has clear benefits for men. It alleviates the pressures associated with traditional masculinity, which can lead to better mental health. For example, in more gender-equal societies, men report being happier with life and less stressed and depressed.

This shows that the benefits of gender equality are not limited to women and girls; they extend to all members of society. Everyone has a stake in contributing to the advancement of this cause.

Best practices supported by research

There are five steps governments and aid professionals can take to successfully maintain gains in gender equality and continue to make progress:

1. Keeping aid afloat: Continued financial and technical support for gender equality initiatives is essential. Our research suggests that policymakers should strive to integrate gender considerations into all development projects.

2. Get everyone involved: Engaging men and boys in gender equality efforts helps challenge and change harmful gender norms, fostering a more inclusive society.

3. Adapt strategies: Although aid has effects at all levels, gender equality initiatives must take into account the specific socio-political and cultural contexts of each country. Adapting strategies to these contexts ensures the relevance and practicability of interventions.

4. Strengthening institutions: Effective institutions and governance are essential to successfully implement and sustain gender equality initiatives. Efforts to improve governance and reduce corruption will enhance the impact of aid.

5. Promote education: Schools are a powerful tool to promote gender equality. Investing in educational programs that empower women and girls and raise awareness about gender issues is essential for long-term change.

Gender equality is the cornerstone of a just and prosperous society. The benefits of women’s empowerment extend far beyond the immediate beneficiaries of gender-related aid, fostering economic growth, political stability and social cohesion. Our research shows that efforts to empower women do indeed pay off – literally and figuratively.