Economic Economic Development:Development:

Women and the Women and the FamilyFamily

Dr. Maria Sophia AguirreDr. Maria Sophia AguirreDepartment of Business and EconomicsDepartment of Business and Economics

The Catholic University of AmericaThe Catholic University of America

UN 49UN 49thth Session of the Commission on the Status Session of the Commission on the Status of Womenof Women

New York City, New YorkNew York City, New YorkMarch 3,2005March 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 - 2003Status, 2002 - 2003

10.4

33.7

20.4

10.8

38.6

20.4

0

5

10

15

20

25

30

35

40

45

Families Unrelated SubFamilies

UnrelatedIndividuals

Families UnrelatedSubfamilies

UnrealtedIndividuals

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

Source: March Current Population Survey, US Census Bureau, Table POV 13, July 2004.

Percentage of Women who are in Poverty by Family Structure and Ethnicity

6.7

48

9.1

73.4

8.4

67.9

8.4

43.4

01020304050607080

Married Single Married Single Married Single Married Single

White Black Hispanic Asian

Perspectives on Women's RightsPerspectives on Women's Rights

FamilyFamily is seen is seen as a factor that as a factor that oppresses and oppresses and subordinates subordinates women socially women socially because because children children curtails the curtails the mother’s mother’s developmentdevelopment..

Women have the Women have the right to be right to be women, whether women, whether they work in the they work in the home or outside home or outside of it. of it. Motherhood Motherhood and the family do and the family do not oppress not oppress women, but rather women, but rather offer women fuller offer women fuller expression.expression.

Role of Women in the Role of Women in the FamilyFamily

Beijing +5 Point 60: Beijing +5 Point 60: Women play a Women play a critical role in the family.critical role in the family. The family is The family is the basic unit of society and is a strong the basic unit of society and is a strong force for social cohesion and integration force for social cohesion and integration and, as such, should be strengthened. and, as such, should be strengthened. The The inadequate support to womeninadequate support to women and and insufficient protectioninsufficient protection and support to and support to their respective familiestheir respective families affect society as affect society as a whole and undermine efforts to a whole and undermine efforts to achieve gender equality.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

5

29.6

6.9

49.6

14.7

46

7.4

34.1

0

10

20

30

40

50

60

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

0

1

2

3

4

5

0 20 40 60 80

Labor Force Participation

Div

orc

e

United States

UK Sweden

Japan

Australia

France

Netherlands

Italy

Germany

Source: International Labor Organization.

Developed Countries Welfare Expenditures vs. Developing Countries Debt in 2002

Source: CIA World Handbook, 2003.

2120

728

462

393221

25170

191

1632

0 500 1000 1500 2000 2500

Million of Dollars

US

Germany

France

UK

Brazil

Mexico

Nigeria

WE FD

The family faces serious health and The family faces serious health and poverty problems, especially in the poverty problems, especially in the

developing worlddeveloping world Lack of income and assets to attain Lack of income and assets to attain

basic needs:basic needs: Human assetsHuman assets Natural assetsNatural assets Physical assetsPhysical assets Financial assetsFinancial assets Social assetsSocial assets Aging securityAging security

Vulnerability to adverse shocks are Vulnerability to adverse shocks are linked to an inability to cope with linked to an inability to cope with themthem

Environmental Health, Welfare and Living Environmental Health, Welfare and Living Conditions in Low Income vs Developed Conditions in Low Income vs Developed

CountriesCountriesIndicatorIndicator % access% access

House Connection: waterHouse Connection: water 48 / 9948 / 99

House Connection: sewerageHouse Connection: sewerage 46 / 9946 / 99

House Connection: electricity House Connection: electricity 62 / 10062 / 100

Water consumption (liter per person)Water consumption (liter per person) 30 / 60030 / 600

Wastewater treatedWastewater treated 29 / 9729 / 97

Solid waste disposal: landfill or Solid waste disposal: landfill or incineratedincinerated

31 / 7831 / 78

Solid waste disposal: other Solid waste disposal: other (dump,recycled,etc.)(dump,recycled,etc.)

66 / 2266 / 22

Paved RoadPaved Road 19 / 9419 / 94

LiteracyLiteracy 49 / 10049 / 100

Under-five mortality (per 1000)Under-five mortality (per 1000) 107 / 6107 / 6

Public Expenditures on Health Public Expenditures on Health (%GDP)(%GDP)

1.3 / 6.21.3 / 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.

0

2

4

6

8

10

12

14

16

18

20

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2003

Year

Per

cent

age

of T

otal

Population Energy IndustryTransport Communications Trade and DevelopmentScience and Technology Employment

Expenditure on Grant-Financed Development Activities of the United Nations System by Sector

(Percentage of Total)

EducationEducation

Educational opportunities and equality of Educational opportunities and equality of education are important for economic growth, education are important for economic growth, worker productivity, increasing the quality of worker productivity, increasing the quality of both social and human capital, improving both social and human capital, improving health and healthcare, and achieving gender health and healthcare, and achieving gender equalityequality

Beijing Point 277 (a): “Promote an educational Beijing Point 277 (a): “Promote an educational setting that eliminates all barriers that impede setting that eliminates all barriers that impede the schooling of married and/or pregnant girls the schooling of married and/or pregnant girls and young mothers, including, as appropriate, and young mothers, including, as appropriate, affordable and physically accessible child-care affordable and physically accessible child-care facilities…”facilities…”

02468

101214161820

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2003

Year

Per

cent

age

of T

otal

Population Education

Expenditures on Grant-Financed Development Activities of the United Nations System by Sector

Source: Compiled from Comprehensive Statistical Data on Operational Activities for Development, years 1990-2003.

The Family and The The Family and The Millennium Development Millennium Development

GoalsGoals The MDGs are missing the Family completely, yet, The MDGs are missing the Family completely, yet,

the family is crucial to the success of all 8 goalsthe family is crucial to the success of all 8 goals All MDGs are interdependentAll MDGs are interdependent Resources are used inefficiently when directed Resources are used inefficiently when directed

towards policies that weaken families instead of towards policies that weaken families instead of policies that strengthen them. This hampers the policies that strengthen them. This hampers the sustainability of real economic growth and sustainability of real economic growth and perpetuates poverty. perpetuates poverty.

Family breakdown directly harms women, children, Family breakdown directly harms women, children, equality of education, and healthcare—all crucial to equality of education, and healthcare—all crucial to the success of the MDGsthe success of the MDGs

MicrocreditMicrocredit It has shown to be a successful and dollar-efficient lending tool that has 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 positive results for both individuals and families. It opens doors to low-income populations in developing countries while generating low-income populations in developing countries while generating significant financial return.significant financial return.

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

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

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

A group lending model without non-business socialA group lending model without non-business social objectives programs objectives programs attached to it has proven to be most successfulattached to it has proven to be most successful

Productivity IndicatorsProductivity Indicators

134

75

169

221

150

445

050

100150200250300350400450500

Latina America Gramen Bank Africa

NBS

NCCF

Source: MicroRate and Grameen Bank

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Banks Savings Banks Credit Unions NGOs

Ratio of Social to Financial Staff Ratio of Social to Financial Staff by Regional Institutional by Regional Institutional

CharacteristicsCharacteristics

Source: Paxton, Julia. A Worldwide Inventory of Microfinance Institutions. Washington, DC: Sustainable Banking with the Poor, The World Bank, 1996.

00.05

0.10.15

0.20.25

0.30.35

0.40.45

0.5

Latin America Asia Africa

Ratio of Social to Financial Staff Ratio of Social to Financial Staff by Regional Institutional by Regional Institutional

CharacteristicsCharacteristics

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

ConclusionsConclusions To achieve economic development, To achieve economic development,

opportunities need to be promoted, opportunities need to be promoted, empowerment at all levels facilitated, and empowerment at all levels facilitated, and stability ensured for both men and women. stability ensured for both men and women.

Data suggest that it is the family that should Data suggest that it is the family that should be the point of reference if sustainable be the point of reference if sustainable development is to be achieved for it is within development is to be achieved for it is within the family where human, moral and social the family where human, moral and social capital are supported or hampered. capital are supported or hampered.

The breakdown of the family damages the The breakdown of the family damages the economy and the society since human and economy and the society since human and social capital is reduced and social costs social capital is reduced and social costs increasedincreased

Conclusions Conclusions

The most potent evidence for the The most potent evidence for the rational observer is the scientific rational observer is the scientific data, which hold that legislation and data, which hold that legislation and policy which support the family are policy which support the family are most beneficialmost beneficial