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Women represent half the world's population, yet their economic potential remains grossly underutilised. The numbers tell a staggering story: unlocking women's economic participation could boost global GDP by $172 trillion in human capital wealth, with estimates suggesting gains of 20 to 35 percent to the world economy. This represents not just an opportunity, but an economic imperative that countries can no longer afford to ignore. Doing so has the capability of increasing household incomes, expanding access to resources, and promoting higher quality of life, which reduces grievances and further promotes stability.
"While progress has been made, the gap between men's and women's expected lifetime earnings globally is US$172 trillion, nearly two times the world's annual GDP," reveals Mari Pangestu, World Bank Managing Director of Development Policy and Partnerships.
In 2024, women's global labour force participation stood at 40.2 percent, which represents millions of talented minds sidelined from economic contribution, translating to profound losses in innovation, productivity, and prosperity.
Our Secure Future’s research demonstrates that economic empowerment and security are inextricably linked, and an integral foundation for peaceful societies. Recognising this connection between women's economic roles and global stability, OSF works to strengthen the Women, Peace and Security agenda by ensuring such economic considerations inform broader security governance.
The multiplier effect
The economic behavior of women reveals a profound truth about development priorities and societal advancement. Research consistently demonstrates that women reinvest up to 90 percent of their income back into their families and communities, particularly in nutrition, health, and education, compared to 30 to 40 percent for men. This reinvestment pattern creates what economists call a "multiplier effect," where every dollar earned by women generates exponentially greater social and economic returns as compared to traditional investment models. These patterns generate increased access to resources for families and communities, which reduces economic hardships and promotes peace and stability.
Closing the gap in women’s labour force participation and working hours could raise GDP by an average of 9.2% across OECD countries by 2060. This projection highlights a core economic truth: investing in women’s economic empowerment yields exponential returns fueling growth and community stability that spans generations, industries, and entire economies.
Conversely, studies of sub-Saharan Africa reveal that when the share of women affected by gender-based violence rises by even 1 percentage point, economic activity falls by up to 8 percent primarily due to drops in female employment. This underscores how gender-based violence is not only a grave human rights issue but also a critical barrier to economic development. When women’s safety is compromised, their ability to participate in and contribute to the economy is diminished, demonstrating that women’s security, equity, and economic growth are deeply interconnected.
The price of economic exclusion
The barriers preventing women's full economic participation carry costs that reverberate through entire economies. According to the International Labour Organization, an estimated 708 million women worldwide remain outside the labour force because of unpaid care responsibilities. This unequal distribution of unpaid care work represents $10.8 trillion or 9 percent of lost global GDP when valued at market rates. Women spend on average three times more hours per day than men on unpaid care and domestic work, equivalent to approximately 201 working days per year for women compared to 63 for men.
In the Middle East and North Africa, the challenge proves particularly acute. Despite having a growing pool of highly educated women who want to work, the region maintains the lowest female labour force participation rate globally at 24 percent. Yemen presents an extreme case where women's labour force participation has plummeted to just 5.1 percent by 2023, yet research indicates that closing gaps in women's labour force participation there would increase the country's GDP by 27 percent.
Legal impediments compound these challenges. Around 2.4 billion women of working age lack equal economic opportunity, with 178 countries maintaining legal barriers preventing their full economic participation. In 86 economies, women face job restrictions, and 95 economies fail to guarantee equal pay for equal work. These systemic barriers create what economists term "institutional drag" on economic growth, where discriminatory policies actively constrain GDP expansion.
National-level success stories
Rwanda stands as a beacon of what becomes possible when countries prioritise women's economic empowerment. Despite starting from a position of extreme adversity, the country has emerged as a leader in advancing women's participation. The country ranked 39th globally in the World Economic Forum's 2024 Global Gender Gap Report, placing it among the top performers in Africa. The government reports that women in Rwanda own almost twice as many land parcels as men, due to legal efforts in advancing women’s land rights.
The transformation can be attributed to government policies such as Rwanda's National Gender Policy, which was revised in 2021, and specifically targets women's economic empowerment as a priority area. The policy has prompted increased equality between men and women across multiple sectors by focusing on integrating women’s perspectives into national planning frameworks, sector policies, and programs in both public and private sectors; accelerating women's economic empowerment; and continuously promoting equality in education, health, and social protection. The overarching goal is to ensure equal access to economic resources and opportunities while eliminating all forms of violence against women.
Legal reforms in Peru provide another example of how government actions on women’s economic participation and financial inclusion can support overall economic development. The country reformed laws in the 1990s that had restricted women’s right to work, as well as their access to financial services and assets. Women’s participation in the labour force increased by 15 percent after these reforms were enacted, and further increased from 58 to 68 percent from 2000 to 2014. Although there are still advancements to be made in supporting women’s economic opportunities, these actions strengthened Peru’s GDP growth and the country now ranks as the second-fastest growing economy in Latin America.
International initiatives have demonstrated similar success patterns. The 2X Challenge, launched at the 2018 G7 Summit, has raised women’s investments totaling $33.6 billion. While specific revenue growth figures for individual programs like Invest2Impact require further verification, the broader initiative has demonstrated that targeted support for women entrepreneurs generates measurable economic returns across East Africa.
Harnessing economic potential
The economic benefit when women gain equal economic participation is more than a statistical improvement. It signals a fundamental shift toward economies that harness their full human potential. Nations that invest in women's economic empowerment create durable competitive advantages that compound over time.
The $172 trillion opportunity awaits. The question is not whether countries can afford to invest in women's economic empowerment, but whether they can afford not to. Advancing women’s economic participation not only boosts economic growth, but it creates reinvestments in communities and unlocks resources that contribute to overall peace, security, and stability. The evidence suggests that in an increasingly competitive global economy, the nations that unlock women's economic potential will be the ones that thrive in the decades ahead.