This article was first published on The Economist Now & Next hub on 23 January 2025.
Women & Leadership NOW: Empowered women are better for countries and companies
Laws, customs and corporate policies that have a negative effect on women are bad for political stability and company profits
There is a clear correlation between misogynistic policies and political instability, according to the Fragile States Index, created by the think-tank Fund for Peace. Countries such as Australia, Sweden and Switzerland, which achieve the best possible score in terms of misogyny, are also low on the Fragile States Index. In contrast, countries at the other end of the spectrum of misogyny ratings—Nigeria, Yemen, Pakistan and South Sudan—are very fragile states.
How this dynamic works is clearly illustrated by two customs—polygamy and bride prices. Simply put, polygamy is not good for women. A recent study found that 90% of women in polygamous unions experience high rates of depression and anxiety, even physical distress. Polygamy is common in all of the 20 most unstable countries in the Fragile States Index.
The traditional practice of placing a price on a would-be bride has been around for thousands of years. But this used to be more of a social ritual, allowing two families to get to know each other and cement new familial bonds. However, in recent years, the process has become more commercial, with women seen as assets to be traded—enabling rich men to have more wives, because they can afford them.
As bride prices in many countries are paid partly or entirely in cows, and because it is very difficult for many men to legitimately obtain enough cows to get married, violent cattle raids have become very common. Thousands have lost their lives in these raids. This has further destabilised countries such as South Sudan, which is struggling against poverty and the legacy of civil war.
This instability incentivises families to grow their wealth as quickly as possible, so it is girls, not women, who are being married off. Although South Sudan’s 2008 Child Act prohibits early and forced marriage, 52% of Sudanese girls are married before they turn 18, with some as young as 12 years old, according to Unicef.
Girls who marry young are unable to continue their studies—educating girls has proven to not only benefit them, but to build stronger, healthier families, communities and economies. In addition, uneducated young brides are more likely to suffer domestic violence. And men who commit violence at home are more likely to do so in public as well, giving rise to further instability.
View from the top
Although repression of women can clearly be seen to have negative consequences for countries, companies that empower women enjoy positive effects. Bringing more women into businesses increases profitability by as much as 63%, according to the International Labor Organization, and companies with the largest proportion of women on executive committees see a 47% higher rate of return on equity than those with no female executives.
Around the world, more women now graduate from university than men, and they outnumber men in entry-level positions. But over time, women are less likely than men to move up the career ladder. Even in rich democracies such as the UK and the US, only 10% of the largest corporations have female CEOs.
“Supporting women to play full roles in the workplace and achieve their potential ought to be a primary goal for all economies,” says Anju Suneja, partner, real estate, at Mishcon de Reya. “The UK has some of the highest childcare costs in the world. When parents are unable to access quality, affordable childcare, more often than not the childcare burden will fall on women who are subsequently unable to work full-time or accept more responsible or senior roles. This damages career prospects, stunts potential and acts as a drag on the economy. As the UK looks to grow, properly funded childcare is part of the vital economic infrastructure needed to deliver growth.”
An estimated 80% of the gender gap in employment is due to women leaving the workforce after starting a family. This “motherhood penalty” also negatively affects women with children who stay in the workforce. On average, they are paid and promoted less than male colleagues with children.
For women who do make it to the top, prospects are still not good. Almost a quarter of female CEOs leave their jobs within two years, compared with 10% of men. They are also more likely to be sacked—34% get pushed out, against just 25% of their male counterparts. This is thought to be a consequence of the “glass cliff”; companies in crisis are more likely to hire a female CEO, on the assumption that stereotypically female skills are needed to turn things around. But as the company is already heading for a crash, the female CEO gets the blame (or burns out) when a miraculous recovery fails to occur.
Company policies such as parental leave, affordable childcare and flexible work schedules can help mothers—and others—to progress in their careers. But even countries that are the best for working women—Iceland, Sweden, Norway and Finland—still have low numbers of female leaders. Norway leads the world, with just 13.4% of female CEOs.
Motherhood is not the only barrier for women. The concept of successful leadership is still shaped around typical male attributes. Promotions and hiring processes remain influenced by this. Therefore, women are twice as likely as men to be mistaken for someone more junior, and they are far more likely to have colleagues question their judgment or imply that they are not qualified for their jobs. This obviously holds women back, but it also makes them doubt themselves, resulting in fewer women putting themselves forward for leadership positions.
Until this unconscious bias is tackled, women—and the companies they work for— will continue to be at a disadvantage.