Women’s Economic Rights: Why Legal Gaps Hurt Growth | Project Syndicate
The global effort to achieve economic equality for women faces significant headwinds, with no country currently providing a level playing field in terms of legal rights, according to recent reports. While progress has been made since 1970, substantial gaps remain, particularly in areas of safety, entrepreneurship, and childcare, hindering economic growth and opportunity worldwide.
A new report from the World Bank, Women, Business, and the Law 2026, examined 190 economies and found that none offer women the same legal rights as men. This disparity isn’t merely a matter of fairness; it represents a substantial drag on global economic potential. The report highlights the considerable costs to developing economies in terms of foregone growth and employment opportunities.
The findings echo concerns raised by UN Women, which , warned of a global regression in women’s rights. The UN agency’s report points to a “justice gap” stemming from discriminatory laws prevalent in most countries, exacerbated by increasing conflicts and a rise in gender-based violence. Sarah Hendriks, UN Women Director, Policy, Programme and Intergovernmental Division, stated that justice systems are not immune to broader societal pressures, but rather reflect them, leading to laws being reshaped to restrict women’s freedoms and allow abuse to go unpunished.
The economic implications of these legal and societal barriers are significant. According to the World Bank, women worldwide currently possess only 64% of the legal rights enjoyed by men. 54% of countries lack legal definitions of rape based on consent, leaving women vulnerable and without adequate legal recourse. These systemic inequalities prevent women from fully participating in the workforce and contributing to economic growth.
The experience of Japan offers a compelling case study. In , facing a shrinking labor force and economic stagnation, then-Prime Minister Abe Shinzō implemented a series of reforms aimed at encouraging greater female workforce participation. These reforms included expanded childcare provisions, enhanced parental leave policies, and tax incentives for companies that actively promoted women. By , these measures resulted in the employment of 2.5 million additional women, raising female labor-force participation to 67% and achieving near-universal job placement for graduates. This demonstrates a clear correlation between removing barriers to women’s participation and improved economic outcomes.
The World Bank identifies three key areas where focused interventions can unlock women’s economic potential: digital inclusion, social protection, and access to capital. Millions of women remain offline, excluded from the opportunities offered by the digital economy. Gaps in social protection, including limited income support and unaffordable childcare, force many women to leave the labor force. And a lack of access to credit hinders the growth and expansion of women-led businesses.
Addressing these challenges requires a multi-faceted approach. Expanding access to digital tools and training can empower women to participate in the digital economy. Strengthening social protection programs, including affordable childcare and income support, can help women balance work and family responsibilities. And increasing access to capital, through targeted lending programs and financial inclusion initiatives, can enable women entrepreneurs to start and grow their businesses.
The UN Women report identifies five key barriers preventing fairness in outcomes for women and girls: discriminatory legal frameworks, harmful social norms, gaps between laws and their implementation, traditional justice systems operating outside the formal legal framework, and conflict settings. These barriers reinforce existing inequalities and impede progress towards meaningful justice for women.
The World Economic Forum also emphasizes the importance of women’s economic empowerment, recognizing it not only as a matter of fairness but also as a smart economic strategy. However, translating this recognition into concrete action remains a significant challenge. The current global landscape, characterized by democratic backsliding, rising conflicts, and economic pressures, is creating a “pushback” against gender equality, threatening to reverse decades of progress.
The need for sustained and concerted efforts to advance women’s economic empowerment is more urgent than ever. As the UN Women report warns, failing to address these challenges will leave women and girls exposed to abuse, injustice, and impunity, undermining economic growth and stability worldwide. The evidence is clear: when women win, the world wins, but realizing that potential requires a commitment to dismantling systemic barriers and creating a truly level playing field.