By Stephanie Leutert, CFR
Editor's note: Stephanie Leutert is a research associate at the Council on Foreign Relations. This entry of Latin America's Moment originally appeared here. The views expressed are her own.
Over the last decade, poverty, and inequality have fallen throughout Latin America. Behind these positive trends are external factors, such as high global commodity prices and substantial foreign direct investment flows. And there are also internal influences, such as Latin America’s growing middle class, increased consumption, and successful government-run conditional cash transfers (which offer money to low income families who keep their kids healthy and in school). But another, less talked, about factor moving the region toward greater economic development is the millions of Latin American women in the workforce.
According to an August 2012 World Bank report, Latin American women have been responsible for 30 percent of the region’s extreme poverty reduction over the past decade, as a result of their increased workforce participation and higher earnings. Women’s income has had an even greater effect on the lowest rungs of the socioeconomic ladder, reducing the severity of poverty more than twice as effectively as men’s earnings. And, as in other places, the global economic downturn hit men’s incomes the hardest. In response, Latin American women picked up the slack, resulting in more than half of 2009’s poverty reduction.
Still, this proven economic engine faces huge challenges. Women continue to be employed disproportionately in less productive sectors. Men also continue to far outnumber women in corporate leadership positions across industries, and, like most of the world, studies report that Latin America’s women are often paid significantly less than men for the same labor. Even when Latin American women make it to the top of their field, 61 percent report some form of discrimination at work.
Having more Latin American women in the workplace isn’t just an issue of equity – it’s also good for business. Study after study shows that more women mean a better bottom line. An August 2012 Credit Suisse report found that when companies have one woman or more on their boards, they perform significantly better than companies that don’t (yet 60 percent of Latin American companies’ boards do not have a single female member). And how much better do these more diverse companies do? Stocks of large companies that had women on their boards performed 26 percent better than those that didn’t.
If other nations’ histories are any guide, one can expect more of the region’s women to come into the workplace. And this is likely to increasingly center the conversation on the tough juggling act of work, family, and other responsibilities – à la Anne-Marie Slaughter’s now widely read Atlantic article – that many working women (and men) throughout the region and world confront.
Despite the challenges for Latin American women, the numbers make the opportunities clear: women in the workforce, and especially women in leadership positions, are good for Latin America – for its families, for its businesses, and for its future.
So true. The women down here tend to be more honest and hard working than the macho men.
Even Sweden, a country used to top the charts, when it comes to gender equality, has still a long way to go. According to a survey done in 2010, the number of female managing directors in listed companies was just eight out of 269. Swedish women earn on average 15% less than men, and one third of them work part-time, because they can't find full-time jobs. Others have family responsibilities which hold them back. This conflict between employment and childcare stops many women from becoming economically independent, and reinforces the tradition of men being the principal breadwinners.
Respected, Mr. Stephanie Leutert Garu,
You mentioned WOMEN KEY TO LATIN AMERICA ECONOMIC PROGRESS it is absolutely wright, and, lot of thanks to your thesis.
The Global Public Square is where you can make sense of the world every day with insights and explanations from CNN's Fareed Zakaria, leading journalists at CNN, and other international thinkers. Join GPS editor Jason Miks and get informed about global issues, exposed to unique stories, and engaged with diverse and original perspectives.
Every week we bring you in-depth interviews with world leaders, newsmakers and analysts who break down the world's toughest problems.
CNN U.S.: Sundays 10 a.m. & 1 p.m ET | CNN International: Find local times
Buy the GPS mug | Books| Transcripts | Audio
Connect on Facebook | Twitter | GPS@cnn.com
Buy past episodes on iTunes! | Download the audio podcast
Check out all of Fareed's Washington Post columns here:
Obama as a foreign policy president?
Why Snowden should stand trial in U.S.
Hillary Clinton's truly hard choice
China's trapped transition
Obama should rethink Syria strategy
Enter your email address to follow this blog and receive notifications of new posts by email.
RSS - Posts
Get every new post delivered to your Inbox.
Join 4,862 other followers