"Daring the Difference: The 3 L’s of Women’s Empowerment" — Christine Lagarde, Managing Director, International Monetary Fund

IMF News, May 19, 2014

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Authors: Christine Lagarde
Published: May 19, 2014

Overview / Introduction

Speech delivered at the National Democratic Institute, Washington DC, May 19, 2014.
Core message: adopt a 21st century mentality for women’s economic participation by "daring the difference"—expanding women’s contribution through Learning, Labor, and Leadership (the “3 L’s”).
Framing: gender prejudice (“malignant mind bugs”) limits recognition of women in powerful roles and constrains economic potential.
Ethical and economic imperatives: gender equality is both a moral duty and an engine for improved economic outcomes.

Learning

Key findings and evidence:

Women account for 41 percent of science and engineering doctorates in the US, but form less than a quarter of the workforce in science, technology, engineering and mathematics.
One study: an extra year of primary school boosts earning potential by 10-20 percent.
One study: an extra year of secondary school boosts earning potential by 25 percent.
A study of 60 developing countries estimated the economic loss from not educating girls equally as boys amounted to $90 billion a year.
One study suggests women invest up to 90 percent of their earnings on health and education, versus 30-40 percent for men.

Policy emphasis and implications:

Prioritize girls’ and women’s education globally, with particular focus on developing countries.
Education is framed as foundational—an “elevator” and “springboard”—to reduce exclusion and improve intergenerational outcomes.
Public advocacy: support for figures like Malala Yousafzai; condemnation of extremist actions (e.g., Boko Haram) that deprive girls of education.

Labor

Key findings and statistics:

Estimated about 865 million women worldwide who have the potential to contribute more fully—described as almost a “blocked billion”.
Gender participation gaps: range from 12 percent in OECD economies to 50 percent in the Middle East and North Africa.
Globally, women earn only three-quarters as much as men (same education and occupation).
Globally, women spend twice as much time on household chores as men, and four times as much time on childcare.
Women constitute 70 percent of the billion people living on less than a dollar a day.
Eliminating gender gaps in economic participation can increase income per capita substantially—examples: Middle East and North Africa gains of 27 percent; South Asia gains of 23 percent.
Women account for over 70 percent of global consumer spending.
Case studies: Brazil increased women’s participation from 45 percent to 60 percent in two decades through pro-family and pro-poor policies; Sweden achieves high female participation via childcare, early education, flexible work, and parental leave.

Policy recommendations and actions:

Reform discriminatory laws (e.g., property and inheritance) to increase women’s economic agency.
Improve access to healthcare, education, training, and credit for women in developing countries.
Protect social safety nets in IMF-supported programs; IMF evidence shows spending on health and education rises faster in countries with programs the IMF supports.
Adopt pro-women, pro-family policies in richer countries: publicly-funded parental leave, quality affordable childcare, individual taxation rather than family taxation, tax credits or benefits for low-wage workers.
Encourage cultural change in workplaces: reduce norms favoring excessively long hours; value creative output over "face time".

Leadership

Key findings and evidence:

Only 4 percent of CEOs in the Standard and Poor’s 500 company list are women.
Only one-fifth of parliamentary seats worldwide are held by women.
Less than 10 percent of countries have female leaders.
Firms with strong records of promoting women to prominent positions are 18-69 percent more profitable than median firms in their area (study cited).
Men trade 45 percent more than women in a 1990s investment community experiment, and are more likely to lose big.
A study of over 7,000 leaders showed women fared better in 12 of 16 competencies in 12 of 15 sectors.
Women are often brought in to rescue troubled companies, although they are more likely to be fired from these turnaround positions.

Arguments and policy prescriptions:

Women often lead with consensus-building, inclusion, long-term sustainability, and risk-aversion—traits valuable for crisis management and prudent economic governance.
Gender targets and quotas are advocated to accelerate change—“the mountain is simply too steep to climb without a little help on the way up.”
Promote mentors and role models to address confidence gaps; tackle the cultural barriers that leave competent women doubting themselves while underqualified men advance.
Change attitudes that equate toughness with testosterone and reinforce male-dominated leadership norms.

Conclusion and Call to Action

The speech closes with a call to fulfill the promise of equal opportunity so every girl can fulfill her potential without impediment or prejudice.
Final exhortation: “If we dare the difference, the difference will deliver.”
Emphasized linkage: advancing the 3 L’s—Learning, Labor, Leadership—yields social and economic returns, and requires legal reform, policy action, cultural change, and targeted measures such as quotas and mentorship.

Source: "Daring the Difference: The 3 L’s of Women’s Empowerment" — Speech by Christine Lagarde, Managing Director, International Monetary Fund, May 19, 2014.