Empowered Women, Empowered World: The Transformative Power of Financial Autonomy
- Financial Autonomy as a Catalyst for Gender Equality: Financial independence empowers individuals, breaking traditional societal norms, and is fundamental for personal and communal development, ultimately driving gender parity.
- Historical and Ongoing Struggle: Women’s economic empowerment has progressed through suffragist movements, feminist campaigns, and modern initiatives like the #MeToo movement, yet the gender pay gap and unequal opportunities persist.
- Economic and Social Impact: Financially independent women contribute significantly to economic growth, community development, and poverty reduction. Efforts by governments, NGOs, and advancements in technology, such as microfinance and fintech, play a pivotal role in fostering financial autonomy.
Financial autonomy is a pivotal element in the tapestry of gender equality. It catalyzes individual empowerment and societal transformation by transcending economic barriers. This independence allows individuals to become active agents of change by participating actively in personal and communal development. Hereby, in a dynamic landscape of gender equality, the new driver for social change is financial independence. The adage ‘He who holds the purse strings holds the power’, is particularly pertinent when we delve into the intricate connection between economic autonomy and gender parity.
The quest for gender equality has been protracted and arduous, frequently encountering opposition and significant resistance. Reflecting on history, we realize that the patriarchal system has always traditionally relegated women to the domestic sphere, making them financially reliant on male members of the family—fathers, brothers, or husbands. In many areas, women’s rights to own property, enter contracts, or earn wages were severely curtailed. It was not until the mid-19th century that women began to make significant strides towards financial autonomy.
The long-standing battle for gender equality through feminist movements, spanning from the Suffragist movements of the 20th century to the present-day #MeToo movement, has always been underpinned by the understanding that economic empowerment is a key factor of social and political change. However, in the United States, women secured property rights in the mid-1800s, but significant workplace participation did not emerge until the 19th and early 20th centuries. The convergence of feminist and civil rights movements in the 1960s and 1970s broadened the struggle to encompass economic autonomy alongside political equality.
Despite substantial historical progress, a significant gender gap in financial independence persists, albeit with promising signs of change. According to the Global Gender Gap Report 2023 by the World Economic Forum, women continue to earn on average 16 percent less than men. The global gender gap in economic participation and opportunity has narrowed by only 0.8 percent in the last year, which means that at the current rate of progress, it will take another 60 years to close the gap entirely. This demonstrates the significant correlation between economic participation and gender equality.
The value of financial independence can’t be neglected. It assists in achieving a higher level of education and gives access to better health care, career success, and ultimately a better life. Financially independent women are key contributors to economic growth, community development, and above all, poverty. McKinsey & Company’s 2020 report underscores the potential of closing the gender gap in labor force participation, estimating a 12 trillion-dollar boost to global GDP by 2025. Moreover, the Bill and Melinda Gates Foundation’s research shows that women are more likely to invest in their children’s education and health, creating a lasting impact on future generations.
Even though we still have a long way to go, a lot of progress has been observed in the form of institutions and organizations, which are playing a crucial role in fostering financial independence. NGOs have been pioneers in advocating for women’s financial empowerment, raising awareness, providing resources, and driving policy changes to ensure gender equality. UN Women is playing a leading role in this. ‘Financial Inclusion for Women seeks to bridge the gender gap in financial services by credit access, asset ownership, and many more. Furthermore, the government too has had a significant part in shaping the economic landscape for marginalized groups, especially women. The Equal Pay Act of 1963 in the United States sought to eliminate the wage disparities between men and women.
Technology has further propagated financial autonomy for women. Platforms like cryptocurrency, blockchain technology, and fintech, to name a few, offer a large number of opportunities for women and other marginalized groups in all regions, especially benefiting developing areas. Additionally, Microfinance Institutions (MFIs) are breaking down barriers by giving small loans to women in developing countries. The concept of microcredit in Bangladesh has been revolutionary, assisting millions of women to become financially independent by providing access to resources and capital.
‘Financial independence is the foundation upon which women can build the life they desire‘, says Sallie Krawcheck, CEO of Ellevest.
Role models in the form of powerful and remarkable women—who have defied traditionally persisting societal norms—have demonstrated that financial independence is the only means for empowerment and gender equality. Indian-born Indra Nooyi is an example—of the very few women in the global business arena who brook the proverbial glass ceiling, Noohi is one of them. She is the former CEO of PepsiCoand; under her leadership, the company’s revenue increased by 80 percent. She also championed efforts to introduce much healthier options to PepsiCo’s portfolio. Her strong financial acumen has aided her in becoming an advocate for women in leadership, encouraging them to step ahead and take charge of their financial futures. Her legacy underscores that financial independence is not merely a personal goal but a platform for broader societal impact. More notable names include Oprah Winfrey, Malala Yousafzai, Mary Barra, Melinda Gates, and many more who paved the way for financial autonomy and gender equality.
In a nutshell, the relationship between financial independence and gender equality is undeniable. It is not only taken for self-employment but also a source of the betterment of society and the future. A strong, independent woman can build a strong, independent society. Despite the barriers, there is a need to create a world where gender equality must be the norm, not the only exception. The future is not only about the dissolution of the gender gap but also about the formation of a community free from oppression, inequality, and poverty. It may seem difficult and imaginative, but it is a reality within reach.
The author is pursuing a Bachelor's degree in International Relations at NUML, Islamabad. She has a strong interest in research and creative writing on a range of topics, including politics, climate change, and more.
