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While there are ample reasons for discussing gender diversity in good times, there is an even greater need in bad times. At the time of this report, the economic and social consequences of the Covid-19 pandemic, as well as the negative spillovers and higher inflation following Russia’s war in Ukraine, have exacerbated pre-existing gender gaps, disproportionately affecting women’s jobs, incomes, and security. The stall in progress towards gender parity has resulted in a call for further action to reduce gender inequality, as seen in the Strategy for Mainstreaming Gender at the Fund. The integration of gender in the Fund’s core activities, when macro-critical, recognizes the fact that reducing gender disparities results in higher economic growth, greater economic stability and resilience, and lower income inequality.
1. Reducing gender disparities in opportunities, outcomes, and decision-making roles raises economic growth and enhances macro-financial stability. There is growing evidence that a country’s economic growth rises with greater participation of women in the labor force. This happens when women face fewer legal barriers, participate more fully in the formal economy, and have more equal access to education, finance, infrastructure, assets, and technology. Closing these gender gaps can also help lower income inequality and increase economic diversification, which in turn contribute to economic growth and macroeconomic resilience.
IMF STRATEGY TOWARD MAINSTREAMING GENDER—BACKGROUND PAPER
Executive Directors underscore the importance of promoting gender diversity at the IMF’s Executive Board and the Offices of Executive Directors (OEDs). The Executive Board recognizes that a diversity of views contributes to stronger decision making and is committed to ongoing efforts to improve the gender profile of the Board and Offices of the Executive Directors. The Fund’s membership has also indicated that it places importance on this issue; the International Monetary and Financial Committee (IMFC) has consistently drawn attention in its communiqués to the importance of enhancing the gender diversity of the Executive Board.
This paper explores some of the key factors behind Rwanda key successes, including unique institution-building that emphasized governance and ownership; aid-fueled and government-led strategic investment in people, infrastructure, and high-yield economic activity; re-establishment and expansion of a domestic tax base; policies to reduce aid dependency by attracting private investment and bolstering exports; and a purposeful strategy to harness the economic power of gender inclusion.