Economic significance of women's empowerment goes beyond GDP growth

Bangladesh is a small country in South Asia with a population of 172.92 million. Over the past few decades, the country has emerged as a development success story. Currently, the female population in Bangladesh is 88.07 million, slightly higher than the male population of 84.85 million. Although women are an important part of the country's demographic and economic reality, gender disparities in education, employment and professional representation are still evident, highlighting the need to take more initiatives to empower women economically. Women's empowerment is not only a social imperative, but also an economic imperative for Bangladesh. By removing barriers to women's participation and advancement in various economic activities, the country can unlock significant economic potential and accelerate the pace of development.

Bangladesh has made significant progress in improving gender equality in some areas. For example, the average life expectancy of women is 73.8 years, which is higher than the average life expectancy of men of 70.8 years. Again, the female infant mortality rate is 24 per 1,000 births, which is lower than the male infant mortality rate of 30 per 1,000 births. These indicators reflect improvements in healthcare and maternal and child welfare. However, disparities persist in other areas such as education and employment. The female literacy rate is 75.8 percent, which is significantly lower than the male literacy rate of 80.1 percent. Low literacy rates limit women’s access to high-salaried jobs and leadership positions. In addition, the female labour force participation rate (41.56 percent) is almost half that of the male participation rate (80.65 percent), indicating a large gap in economic participation.

Analysing data on professions, gender inequality in the labour force becomes even more evident. Women are more likely to participate in low-wage labour-intensive sectors such as agriculture, forestry, and fishing, where 75% of the total female labour force is employed. Most people are still unaware that women's labour provides the basic food supply for the citizens of this country. On the other hand, women are severely underrepresented in high-wage positions. For example, women are employed in managerial positions at 0.3 percent of the total female labour force, 4 percent in professional positions, and only 0.9 percent in technical positions. The reasons for the emergence of this occupational division are deeply rooted in social customs that reflect a kind of structural barrier for women. At the same time, it limits women's economic mobility and reiterates traditional gender-discriminatory ideas.

Women's economic empowerment can cast a far-reaching impact on Bangladesh's development. Studies have shown that increasing women's participation in the labour force can significantly increase GDP. For example, the McKinsey Global Institute found in their study that achieving gender parity in the labour force could add $12 trillion to global GDP by 2025. This suggests that since women make up more than half of the population in Bangladesh, closing the gender gap in employment could unlock billions of dollars in economic potential.

Women's economic empowerment not only improves the distribution of wealth within the household, but also has long-term effects. Women spend a larger portion of their income on children's education, health, and nutrition, more than men. This creates a positive impact that helps build a healthy, educated, and productive human capital for the future. In a country like Bangladesh, where child mortality and literacy gaps remain major challenges, women's empowerment can not only address these issues but also accelerate long-term economic growth.

The role of women in the manufacturing sector of Bangladesh is highly commendable. Women constitute 43.9 percent of the total workforce in micro, small, medium and large industries, while their participation in large industries is particularly notable. According to statistics, out of the total 3.67 million workers in large industries, 2.02 million are women workers. This is mainly due to the dominance of women in the ready-made garment sector. A total of more than 4 million workers are employed in various garment factories, both large and small, of which 80 percent are women. The ready-made garment industry is the backbone of Bangladesh's export sector, earning more than 80 percent of the country's total export earnings. The contribution of women in this sector has played a significant role in establishing Bangladesh as the world's leading garment exporter.

The ready-made garment industry has had a profound impact on the economic empowerment of women in Bangladesh. By creating millions of formal employment opportunities, the industry has played a significant role in poverty alleviation and challenging traditional gender roles. Most women employed in the RMG sector report increased decision-making power within their families, financial independence, and access to education and healthcare for their children.

However, barriers to ensuring decent working conditions and fair wages for women in the ready-made garment industry still remain. If these issues can be addressed through strong labour laws and their proper enforcement, and corporate accountability, the sector can further enhance its contribution to women’s empowerment.

Despite its significant contribution, women in Bangladesh face many obstacles to full economic participation. One of the most pressing challenges is the gender gap in education. While overall literacy rates have increased, there is a significant gap between boys and girls’ education, especially in rural areas. This limits women’s access to high-paying jobs and leadership positions, forcing many women into low-skilled, informal, or unpaid work.

Social norms and cultural expectations also play a significant role in limiting women’s economic opportunities. Prevailing gender roles often encourage women to prioritise household responsibilities over paid work, which in turn reduces their participation in the labour force. In addition, women often face bias, harassment, and unequal pay at workplaces, which discourage their economic participation.

Women with disabilities face even greater barriers. According to the data, only 2.32 percent of girls with disabilities are reported, compared to 3.28 percent of boys with disabilities. This gap indicates potential underreporting and marginalisation, as women with disabilities often face multiple barriers to education, employment, and health care.

To realise the full economic potential of women, Bangladesh needs to take multifaceted steps to address the root causes of gender inequality. The following strategies can help close the gap and build an inclusive economy:

1) Expanding access to education and vocational training: Expanding access to quality education for girls will help close the literacy gap and equip them with the skills needed for high-paying jobs. At the same time, providing women with demand-driven vocational training programmes will increase their participation in high-growth sectors such as healthcare, technology-based enterprises, and financial institutions, which will contribute to overall women’s empowerment.

2) Promoting gender equality in the workplace: Adopting anti-bias and anti-harassment policies that promote equal pay in the workplace is crucial to building an inclusive workforce. Encouraging businesses to adopt such policies by ensuring the dignity of female workers and providing incentives for hiring and promoting women can help reduce the occupational gap.

3) Expand microfinance and entrepreneurship opportunities: Microfinance has already been successful in empowering women in rural areas of Bangladesh. Expanding credit access, financial literacy programmes and entrepreneurship training will enable more women to start their own businesses and contribute to economic development.

4) Addressing cultural norms and stereotypes: Changing societal attitudes about women’s roles is essential for long-term progress. Awareness campaigns, community engagement, and the appropriate role of the media can help undermine traditional gender stereotypes and create a global view of women’s contributions.

5) Strengthening legal and policy frameworks: Enforcing laws against child marriage, violence against women, and discrimination in the workplace is important for creating an enabling environment for women’s economic empowerment. In addition, policies such as maternity leave and affordable childcare can help women balance their professional and personal responsibilities.

Women’s empowerment is an essential pillar of Bangladesh’s economic development. The country’s 88.07 million female population holds immense potential for the country’s development and prosperity. By removing barriers to women’s participation in education, employment and entrepreneurship, Bangladesh can harness the economic contribution of its female population and build an inclusive and expanding economy.

The economic significance of women’s empowerment extends beyond GDP growth. It improves household well-being, reduces poverty and helps build an equitable society. As Bangladesh graduates to a middle-income country, women’s empowerment is essential for achieving sustainable investment and inclusive development. The time to act is now. By empowering women, Bangladesh can ensure a brighter future for all its citizens.

Dr Mohammad Alamgir Hossain, a teacher of Economics