Authors: Erika Martínez Fernández, Lina Tafur Marín, Laura Silva Aguilar, Susana Martinez-Restrepo
During COVID-19 times, for every 100 men aged 25 to 34 living under extreme poverty, meaning living on 1.90 USD a day or less, 118 are women. Unequal access to economic opportunities, gender-based violence, among other issues, have been fuelled during COVID-19 by increasing women’s unemployment, economic inactivity, and the closure of schools and daycare centers, mainly affecting women of reproductive age. If public and private institutions disregard adopting gender-sensitive measures in the following years, women’s large share among the world’s poorest —also known as the feminization of poverty— could increase.
COVID-19 and the female poverty trap is the fifth brief of the Gender and COVID series by CoreWoman and Cepei. The analysis conducted in this brief, which explores the impact of COVID-19 on the feminization of poverty in the Global South, uses the 2020 estimates and forecasts of extreme poverty by UN Women, the United Nations Development Program, and the Pardee Center for International Futures at the University of Denver.
One of the challenges to carry out the analysis on the feminization of poverty is that available data on poverty by sex has not been updated in most countries. Moreover, some official statistic institutions still fail to disaggregate poverty rates by sex, limiting the sample size of countries with available data in some regions.
POVERTY RATES INCREASED IN ALL REGIONS OF THE GLOBAL SOUTH DURING COVID-19 AND HIT WOMEN THE HARDEST
Before the pandemic, women in the Global South were more at risk of poverty due to their likelihood of having vulnerable employment. For instance, informality, closely related to this phenomenon, is higher among women, [1] meaning they are more exposed to job insecurity and lack access to social safety nets against economic crises. Thus, an expected rise in poverty rates will probably come from households and individuals who had only recently escaped poverty and were unable to cushion the crisis. [2]
COVID-19 exposes vulnerabilities everywhere but has hit women of the Global South the most because of pre-existing inequalities. The fact that all new extreme poor reside in the Global South and are primarily women proves this. [3] Estimates suggest that the pandemic will add 47 million more women and girls into impoverished lives out of the 96 million people expected to be pushed into extreme poverty by 2021. [4] Although increasing poverty rates also affect men, they hurt women the most, especially within reproductive age (15-49), which is seen in women’s higher poverty rates compared to men.
As Figure 1 shows, the extreme poverty rate increased globally from 8.9 in 2019 to 9.5 in 2021. The increase in extreme poverty makes a case in all regions of the Global South, except for Oceania, where it decreased, and Eastern and South-Eastern Asia, where it remained the same. The economic fallout has led to a resurgence in extreme poverty as more women are unemployed, exiting the labor markets, or holding vulnerable employment. [5] In addition, more women are also experiencing time poverty during COVID-19 as they increase their time-use in unpaid work, which becomes a barrier for women willing to access the labor markets and getting employment under decent work conditions. [6]
As Figure 1 shows, before COVID-19, Sub-Saharan Africa had hosted the majority of women in extreme poverty. However, due to the pandemic, the region experienced a surge of a percentage point that makes it the part with the highest concentration of the world’s extreme poor in the Global South. As depicted in Figure 2, Sub-Saharan Africa has 48.2% of all new women in extreme poverty by 2021. Despite the progress achieved over the past years to eradicate extreme poverty, Central and Southern Asia experience a resurgence of women living in extreme poverty, representing 34.5% of new women below the poverty line. On the contrary, Eastern and South-Eastern Asia, which maintained their rates of women in extreme poverty from 2019 to 2021, host 1.5% of the new impoverished women.
THE COST IN INCOME LOST BY WOMEN DURING THE PANDEMIC LEADS TO HIGHER GENDER POVERTY GAPS IN THE GLOBAL SOUTH
In the economies of the Global South, labor market indicators have historically portrayed women’s struggle to partake in and take advantage of economic activity in the same way as men do. For instance, in the Global South, where female unemployment and inactivity were already high before COVID-19, a large share of women held vulnerable employment or held jobs in the informal sector. Additionally, women and girls already put in 12.5 billion hours of daily unpaid care work [7] at the expense of less time to invest in productive activities or leisure.
Note: The Poverty Femininity index indicates the number of women in extreme poverty for every 100 men in extreme poverty.
When the COVID-19 struck, it showed no mercy on women, and it ended up costing women globally over $800 billion in lost income in one year, which is equivalent to the combined GDP of 98 countries. [9] This estimation excludes earning losses of women in the informal economy, which could still suggest a higher toll for the adverse economic effects of COVID-19 on women.
The cost of income lost by women globally is probably higher among countries in the Global South, where informality among women is rampant. However, it showcases differential effects across and within regions due to COVID-19. For instance, the gender poverty gap is expected to increase in Latin America, but projections do not suggest a dramatic increase in Sub-Saharan Africa. Therefore, women have been differentially affected by the COVID-19 crisis more strikingly in Latin America than in Sub-Saharan Africa or South Asia. However, it is noteworthy that both regions already had a higher share of women living in extreme poverty relative to Latin America. Similarly, differences in the gender poverty gaps within the Global South geographical regions are noticeable. In Colombia, for instance, 119 women are expected to live in poverty for every 100 men in 2021, while in Peru, there will be 101 women living in poverty for every 100 men in 2021.
CONSIDERATIONS FOR POLICY ACTION
The quest to reduce poverty among women could take a century and cost more if the problem is overlooked by governments and institutions
This brief casts light on the fact that COVID-19 has increased the feminization of poverty. There has been a sharp increase in women’s unpaid care, informality, and vulnerable employment, as well as unemployment and inactivity. Figure 4 shows that considering the impact of the pandemic on women’s labor markets and their overrepresentation in unpaid jobs before and during COVID-19, the Global South will take an average of 40 years to close the gender poverty gap among the population aged 25-34.
Estimations and forecasts by the UN suggest that it would take 0.14 percent of global GDP ( USD 2 trillion) to lift the world out of extreme poverty by 2030; and USD 48 billion to close the gender poverty gap, benefiting more than 100 million women. [10] However, if governments underestimate or postpone tackling the issue, the cost could be higher.
Some initiatives to reduce the feminization of poverty take distance from the “business as usual” approach and focus more on long-term gender-sensitive measures, but they are still few. Although virtually no country stands out for designing and implementing interventions to tackle the feminization of poverty challenge, Ethiopia has taken advantage of pre-existing Conditional Cash Transfer programs with an innovative tweak. During COVID-19, recipients of the Rural Productive Safety Net Project for Ethiopia, the rural safety net of the country that mostly outreaches female-headed households, anticipated three months payments to program beneficiaries to avoid the adverse effects of the economic shock. [11] In Costa Rica, social assistance measures included childcare support to families. Even when most countries shut off their childcare facilities, nurseries in Costa Rica remained open for those workers that needed to work even during the containment measures/partial lockdown. [12] While in Argentina, maternal paid leave was widened to reach previously uncovered groups, for example women working in the informal sector, such as domestic workers. [13]
In the short term, scale social benefits to women to alleviate the economic crisis’ impact taking advantage of existing programs
Cash transfers during COVID-19 are necessary for social and economic alleviation. Particularly for women, evidence suggests that it helps them navigate economic crises and increases their financial decisions and power, enhancing their empowerment in the long run. [14] However, social transfers require collecting data from individuals and households to channel resources while adequately responding to economic shocks. [15] India is an excellent example of transfers to women during the pandemic. The country’s efforts to increase women’s financial inclusion before and during COVID-19 enabled it to channel emergency transfers to 200 million women. Previous policy responses with women in poverty or those who go in and out of poverty should be used as a data basis to better target assistance. The development of digital infrastructure to ensure transfers is also fundamental. As seen during the pandemic, many governments have partnered with diverse financial institutions to digitize government-to-person payments to limit contact and scale their impact. [16]
In the long term, leverage all at once initiatives that are critical to avoid that more women fall into the world’s poorest
There are several measures that governments can pursue in the long term to tackle the structural root causes of the feminization of poverty. Some include establishing fiscal reforms that benefit women, creating childcare programs, and equal parental leave policies to decrease women’s time-use in unpaid care-work.
Women’s unequal access to education is a determinant of the feminization of poverty. Therefore, governments need to guarantee that girls and adolescents do not drop out of the educational system while supporting their families financially to ensure that girls return to school instead of staying home to do unpaid care work or becoming unpaid family workers. [17] For instance, the Keeping Girls in School Program in Zambia provides cash transfers to families of adolescent girls so they can afford to keep their daughters in school. [18]
[1] Martínez Fernández, Erika, Lina Tafur Marín, Pablo Cortés, and Susana Martínez-Restrepo. “The Many Faces of Labor Markets’ Vulnerability for Women in the Global South amid COVID-19.” COVID-19 Data & Innovation Centre. Cepei, July 29, 2021. http://knowledge4recovery.org/news/labor-markets-vulnerability-women-global-south/.
[2] Azcona, Ginette, Antra Bhatt, Jessamyn Encarnacion, Juncal Plazaola-Castaño, Papa Seck, Sike Staab, and Laura Turquet. From Insight to Action Gender Equality in the Wake of COVID-19. Un Women, 2020. https://www.unwomen.org/-/media/headquarters/attachments/sections/library/publications/2020/gender-equality-in-the-wake-of-covid-19-en.pdf?la=en&vs=5142.
[3] Poverty rate is understood as the ratio of the number of people whose income falls below the poverty line. Poverty line and extreme poverty are used interchangeably across this brief.
[4] Azcona, Ginette, Antra Bhatt, Jessamyn Encarnacion, Juncal Plazaola-Castaño, Papa Seck, Sike Staab, and Laura Turquet. From Insight to Action Gender Equality in the Wake of COVID-19. Un Women, 2020. https://www.unwomen.org/-/media/headquarters/attachments/sections/library/publications/2020/gender-equality-in-the-wake-of-covid-19-en.pdf?la=en&vs=5142.
[5] Martínez Fernández, Erika, Lina Tafur Marín, Pablo Cortés, and Susana Martínez-Restrepo. “Latin America’s Female Staircase Fall During Covid-19.” COVID-19 Data Innovation Centre. CEPEI, July 9, 2021. http://knowledge4recovery.org/news/latin-americas-female-staircase-fall-during-covid-19/.
[6] Martínez Fernández, Erika, Lina Tafur Marín, Laura Silva, and Susana Martínez-Restrepo. “Time use and the care economy in times of COVID-19.” COVID-19 Data Innovation Centre. CEPEI, Forthcoming.
[7] Coffey, Clare, Patricia Espinoza Revollo , Rowan Harvey , Max Lawson, Anam Parvez Butt, Kim Piaget, Diana Sarosi, and Julie Thekkudan. Rep. Time To Care: Unpaid and Underpaid Care Work and the Global Inequality Crisis. Oxfam, 2020.
[8] This measure is equivalent to the ratio between the poverty rate of women over the poverty rate of men. Technical UN. Note of Estimates and Forecasts of Extreme Poverty by sex and age, 2020. https://www.unwomen.org/-/media/headquarters/attachments/sections/library/publications/2020/gender-equality-in-the-wake-of-covid-19-technical-note-en.pdf?la=en&vs=2156
[9] International Labour Organization. COVID-19 and the world of work. International Labour Organization, January 2021. https://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/briefingnote/wcms_767028.pdf.
[10] Azcona, Ginette, Antra Bhatt, Jessamyn Encarnacion, Juncal Plazaola-Castaño, Papa Seck, Sike Staab, and Laura Turquet. Rep. From Insight to Action Gender Equality in the Wake of COVID-19. Un Women, 2020. https://www.unwomen.org/-/media/headquarters/attachments/sections/library/publications/2020/gender-equality-in-the-wake-of-covid-19-en.pdf?la=en&vs=5142.
[11] World Economic Forum. (2020). Are countries doing enough to support women through the pandemic? https://www.weforum.org/agenda/2020/10/covid19-employment-gender-gap-policy/
[12] Presidencia de Costa Rica. (2020, 3 abril). Red Nacional de Cuidado y Desarrollo Infantil mantiene operaciones [Comunicado de prensa]. https://www.presidencia.go.cr/comunicados/2020/04/red-nacional-de-cuido-y-desarrollo-infantil-mantiene-operaciones/
[13] Coronavirus en la Argentina: quiénes y cuándo cobrarán el bono extraordinario de Anses. (2020, 18 marzo). LA NACION. https://www.lanacion.com.ar/economia/quienes-cuando-cobraran-bono-extraordinario-anunciado-anses-nid2344443/
[14] Zimmerman, Jamie, Maria May, Elizabeth Kellison, and Jeni Klugman. Digital Cash Transfers in Times of COVID-19 : Opportunities and Considerations for Women’s Inclusion and Empowerment. Washington, D.C.: World Bank Group, 2020. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/378931596643390083/digital-cash-transfers-in-times-of-covid-19-opportunities-and-considerations-for-womens-inclusio
[15] The World Bank. Scaling Up Social Assistance Payments as Part of the COVID-19 Pandemic Response. World Bank Group, 2020. https://thedocs.worldbank.org/en/doc/655201595885830480-0090022020/original/WBG2PxScalingupSocialAssistancePaymentsasPartoftheCovid19PandemicResponse.pdf.
[16] Zimmerman, Jamie, Maria May, Elizabeth Kellison, and Jeni Klugman. Digital Cash Transfers in Times of COVID-19 : Opportunities and Considerations for Women’s Inclusion and Empowerment. Washington, D.C.: World Bank Group, 2020. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/378931596643390083/digital-cash-transfers-in-times-of-covid-19-opportunities-and-considerations-for-womens-inclusion-and-empowerment
[17] Bentaouet Kattan, Raja, Claudio E. Montenegro, and Harry A. Patrinos. “Realizing the Returns to Schooling: HOW COVID-19 and School Closures Are Threatening Women’s Economic Future.” World Bank Blogs. The World Bank Group, February 2021. https://blogs.worldbank.org/education/realizing-returns-schooling-how-covid-19-and-school-closures-are-threatening-womens.
[18] Botea, Ioana, and Sophia Friedson-Ridenour. “Lessons from Zambia: How to Bring Adolescent Girls Back to School Post-COVID-19.” World Bank Blogs. The World Bank Group, July 2020. https://blogs.worldbank.org/nasikiliza/lessons-zambia-how-bring-adolescent-girls-back-school-post-covid-19.
