Economic Development Women and the Family

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					Economic Development:
Women and the Family

             Dr. Maria Sophia Aguirre
         Department of Business and Economics
          The Catholic University of America

UN 49th Session of the Commission on the Status of Women
                New York City, New York
                       March 3,2005
Nobel Laureate, 1992

 “No discussion of human capital can omit the influence of
  families on the knowledge, skills, values, and habits of their
  children and therefore on their present and future
  productivity.” Becker (1991)

Nobel Laureate, 1998

 “The human development approach must take full note of
  the robust role of human capital, while at the same time
  retaining clarity about what the ends and means respectively
  are. What needs to be avoided is to see human beings as
  merely means of production and material prosperity.” Sen
  (1994)
             Percentage of Families that are in
               Poverty by Status, 2002 - 2003
           45


           40                                                                         38.6


           35                        33.7


           30

           25
                                                      20.4                                            20.4
           20


           15
                     10.4                                             10.8
           10

            5


            0
                   Families      Unrelated Sub      Unrelated       Families        Unrelated       Unrealted
                                   Families        Individuals                     Subfamilies     Individuals

                                     2002                                             2003

Source: US Census Bureau, Cureent Population Survey, 2003 and 2004 Annual Social and Economic Supplements
Percentage of Children who are in Poverty by
    Family Structure and Ethnicity, 2003
          Percentage of Women who are in Poverty by Family Structure
                               and Ethnicity


  80                                    73.4
                                                            67.9
  70
  60                   48
  50                                                                             43.4
  40
  30
  20                          9.1                 8.4                  8.4
         6.7
  10
   0
       Married Single       Married Single     Married Single       Married Single
               White                Black           Hispanic                 Asian


   Source: March Current Population Survey, US Census Bureau, Table POV 13, July 2004.
       Perspectives on Women's Rights

 Family is seen as a  Women have the right
  factor that oppresses to be women, whether
  and subordinates      they work in the home
  women socially        or outside of it.
  because children      Motherhood and the
  curtails the mother’s family do not oppress
  development.          women, but rather
                        offer women fuller
                        expression.
     Role of Women in the Family
   Beijing +5 Point 60: Women play a critical role in
    the family. The family is the basic unit of society
    and is a strong force for social cohesion and
    integration and, as such, should be strengthened.
    The inadequate support to women and insufficient
    protection and support to their respective families affect
    society as a whole and undermine efforts to achieve gender
    equality.
Percentage of Women who are in Poverty by
   Family Structure and Ethnicity, 2003
          Percentage of Women who are in Poverty by Family Structure and
                                   Ethnicity

   60
                                            49.6
   50                                                        46

   40                                                                               34.1
                   29.6
   30
   20                                               14.7
           5                  6.9                                     7.4
   10
    0
        Married Single     Married Single          Married Single   Married Single
               White                Black             Hispanic              Asian



         Source: Poverty in the U.S.: US Census Bureau, July 2004, Table POV2.
                  Divorce vs Female Labor
                    Force Participation

          5
          4                                United States
                        Australia
                                                 UK                   Sweden
Divorce




          3           Netherlands
                        Germany                                       France
          2
          1                 Japan                            Italy
          0
              0        20                 40                     60            80
                         Labor Force Participation


                     Source: International Labor Organization.
Developed Countries Welfare Expenditures
  vs. Developing Countries Debt in 2002

    Nigeria        32
                        16
     Mexico                                                WE     FD
                         191
                   70
      Brazil          251
                    221
         UK                    393
     France                    462
   Germany                           728

         US                                                            2120

               0           500         1000       1500          2000          2500

                                      Million of Dollars


  Source: CIA World Handbook, 2003.
    The family faces serious health and poverty
    problems, especially in the developing world
   Lack of income and assets to attain basic
    needs:
      Human assets
      Natural assets
      Physical assets
      Financial assets
      Social assets
      Aging security

   Vulnerability to adverse shocks are linked to
    an inability to cope with them
Environmental Health, Welfare and Living Conditions in Low
            Income vs Developed Countries
                    Indicator                      % access
House Connection: water                            48 / 99
House Connection: sewerage                         46 / 99
House Connection: electricity                      62 / 100
Water consumption (liter per person)               30 / 600
Wastewater treated                                  29 / 97
Solid waste disposal: landfill or incinerated       31 / 78
Solid waste disposal: other (dump,recycled,etc.)    66 / 22
Paved Road                                          19 / 94
Literacy                                           49 / 100
Under-five mortality (per 1000)                     107 / 6
Public Expenditures on Health (%GDP)               1.3 / 6.2
        The family faces serious health problems,
           especially in the developing world
 The main health risks and causes of death for men and women are:
    Cardiovascular diseases (kills 16.7 million)
    Malignant neoplasms (cancer) (kills 7.1 million per year)
    Injuries (kills 5.2 million)
    Respiratory diseases (kills 3.7 million)
    Perinatal conditions (kills 2.5 million)
    Respiratory infections (kills 3.9 million)
    HIV/AIDS (produces 5 million new cases and kills 2.8 million)
    Diarrhoeal Diseases (kills 1.8 million per year)
    Tuberculosis (produces 8 million new cases per year and kills 1.8 million
     people per year)
    Malaria ( produces 300-500 million new cases per year and kills 1.2 million)
    Maternal condition (kills 540,000 per year)
    These diseases are rare and treatment is accessible in developed countries
     and their cost is remarkably low.
                                          WHO, World Health Report, 2003 , Annex Table 3.
                            Expenditure on Grant-Financed Development Activities
                                   of the United Nations System by Sector
                                                (Percentage of Total)


                      20
                      18
                      16
Percentage of Total




                      14
                      12
                      10
                       8
                       6
                       4
                       2
                       0
                           1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2003
                                                          Year
                      Population                  Energy                    Industry
                      T ransport                  Communications            T rade and Development
                      Science and T echnology     Employment
                      Education
   Educational opportunities and equality of education are
    important for economic growth, worker productivity,
    increasing the quality of both social and human capital,
    improving health and healthcare, and achieving gender
    equality
    Beijing Point 277 (a): “Promote an educational setting
    that eliminates all barriers that impede the schooling of
    married and/or pregnant girls and young mothers,
    including, as appropriate, affordable and physically
    accessible child-care facilities…”
Expenditures on Grant-Financed Development Activities
        of the United Nations System by Sector

                         20
                         18
                         16
   Percentage of Total




                         14
                         12
                         10
                          8
                          6
                          4
                          2
                          0
                              1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2003
                                                             Year

                                                Population          Education

Source: Compiled from Comprehensive Statistical Data on Operational Activities for Development,
years 1990-2003.
     The Family and The Millennium
           Development Goals
   The MDGs are missing the Family completely, yet,
    the family is crucial to the success of all 8 goals
   All MDGs are interdependent
   Resources are used inefficiently when directed
    towards policies that weaken families instead of
    policies that strengthen them. This hampers the
    sustainability of real economic growth and
    perpetuates poverty.
   Family breakdown directly harms women, children,
    equality of education, and healthcare—all crucial to
    the success of the MDGs
                         Microcredit
   It has shown to be a successful and dollar-efficient lending tool that has
    positive results for both individuals and families. It opens doors to
    low-income populations in developing countries while generating
    significant financial return.

   It increases income and improves consumption patterns while bettering
    the well-being of families. Reduces dependency

   Targeting women and married men has proven to be especially
    advantageous for successful programs and for family well-being.

   It fosters development, as well as habits that are fundamental for
    economic growth: responsibility, accountability, trust, market
    operations, education, and creativity.

   A group lending model without non-business social objectives programs
    attached to it has proven to be most successful
       Productivity Indicators
 500                                        445
 450        NBS
 400        NCCF
 350
 300
 250            221
 200                                  169
          134                   150
 150
                           75
 100
  50
   0
       Latina America   Gramen Bank    Africa




Source: MicroRate and Grameen Bank
       Ratio of Social to Financial Staff by
       Regional Institutional Characteristics

 1.4

 1.2

   1

 0.8

 0.6

 0.4

 0.2

   0
            Banks          Savings Banks     Credit Unions          NGOs


Source: Paxton, Julia. A Worldwide Inventory of Microfinance Institutions. Washington,
DC: Sustainable Banking with the Poor, The World Bank, 1996.
      Ratio of Social to Financial Staff by
      Regional Institutional Characteristics
   0.5
  0.45
   0.4
  0.35
   0.3
  0.25
   0.2
  0.15
   0.1
  0.05
     0
             Latin America                Asia                   Africa

Source: Paxton, Julia. A Worldwide Inventory of Microfinance Institutions. Washington,
DC: Sustainable Banking with the Poor, The World Bank, 1996.c
         How Government Policies Can Help:
                 Some Examples
 Legislation that supports families vis a vis other types of
  living styles
 Programs that support and promote healthy marriages and
  stable families
 Changes in family subsidies for children
 Parental leaves
 Promotion and protection of the family as a means to
  eradicate poverty, especially the feminization of poverty
 Programs directed towards fostering functional societies and
  markets, where corruption is not a fundamental part of
  governmental operations
                   Conclusions
   To achieve economic development, opportunities
    need to be promoted, empowerment at all levels
    facilitated, and stability ensured for both men and
    women.
   Data suggest that it is the family that should be the
    point of reference if sustainable development is to be
    achieved for it is within the family where human,
    moral and social capital are supported or hampered.
   The breakdown of the family damages the economy
    and the society since human and social capital is
    reduced and social costs increased
                  Conclusions
   The most potent evidence for the rational
    observer is the scientific data, which hold that
    legislation and policy which support the family
    are most beneficial