Economic Development: Women and the Family Dr. Maria Sophia Aguirre Department of Business and Economics The Catholic University of America UN 49 th 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)

Status, Percentage of Families that are in Poverty by Status, 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.

Perspectives on Women's Rights  Family is seen as a factor that oppresses and subordinates women socially because children curtails the mother ’ s development.  Women have the right to be women, whether they work in the home or outside of it. Motherhood and the family do not oppress 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. 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 Source: Poverty in the U.S.: US Census Bureau, July 2004, Table POV2.

Divorce vs Female Labor Force Participation 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.

The family faces serious health and poverty problems, especially in the developing world Lack of income and assets to attain basic needs: Lack of income and assets to attain basic needs: Human assets Human assets Natural assets Natural assets Physical assets Physical assets Financial assets Financial assets Social assets Social assets Aging security Aging security Vulnerability to adverse shocks are linked to an inability to cope with them 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 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)

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 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…” 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 Source: Compiled from Comprehensive Statistical Data on Operational Activities for Development, years

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 The MDGs are missing the Family completely, yet, the family is crucial to the success of all 8 goals All MDGs are interdependent 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. 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 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 Source: MicroRate and Grameen Bank

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