In this issue of The Global Conversation, Sasha Vakulina receives Kristalina Georgieva, Director of the IMF, who discusses the indisputable benefits of reducing gender inequalities, both on a societal and economic level.
Europe is going through a special moment: it must both work to restore price stability and guarantee strong, green growth. But how can we ensure that this growth is inclusive and equitable by mobilizing the full potential of the Union?
This is the subject of this issue of The Global Conversation, in which Kristalina Georgieva, Managing Director of the International Monetary Fund, speaks. An interview by Sasha Vakulina.
Sasha Vakulina – Ms Georgieva, two thirds of the richest countries in the world are in Europe, and yet income inequality is widespread on the continent. What are the effects of these inequalities on economic growth?
Kristalina Georgieva, Managing Director of the IMF – Growth and inequality are closely linked. But let me raise a very important point for Europe: as a European, I am particularly proud that the attention paid in Europe to inclusion and equality is greater than in many countries. other regions of the globe.
Also, Europe benefits from safety nets, on a social level, which were put in place after Covid or after the invasion of Ukraine by Russian forces, in order to protect the most vulnerable people in society. . That said, can Europe still do better? Yes of course. Because in Europe, as in the rest of the world, we have to face very anemic growth, slow growth. So how can we boost growth prospects? By exploiting all the resources we have. Which brings us to a particular aspect of inequalities, namely gender inequalities.
By further integrating women into the workforce, and into the power structures of our societies and economies, we will reap immense benefits.
Let’s look at this in more detail. The usual engines of growth are running out of steam, and many economies, as you said, are missing out on this opportunity by not harnessing the potential of women. How big is this shortfall?
We are missing out on a lot of things. Unfortunately, according to the most recent analysis by the World Bank, there is not a single country on our planet in which women are strictly considered equal to men. So we have our work cut out for us. And I can affirm, according to the analyzes carried out at the IMF, that the evidence of the benefit that there would be to gain for everyone is glaring. In this period of sluggish growth, we could hope for an increase of up to 23% in GDP in emerging markets and developing economies. If we take a global average, this figure would be 20%. Why deprive yourself of it? This is what we all aspire to.
As you pointed out, why not exploit this potential? We know the figures, they speak for themselves, we know the factors and the expected benefits. How can we act to move the lines?
There is one way to move things forward, and that is to have political foundations based on reliable data. The G20 has launched a very important initiative which aims to “fill the data gaps”. This includes having reliable data on income distribution, what we should know when making decisions, and how to remove these barriers. We know that tax policies can help, as can investing in childcare or transportation safety, so women don’t fear getting on a bus or the subway. And we also know that the way women are treated by the financial system can also help remove these barriers, when they have equal access to finance, which is still not the case.
Ms. Georgieva, despite significant progress over the past decades and the current pace of reforms, it is estimated that it will take three centuries to close the gender gap globally. I repeat: three centuries. And one of the most important measures to improve the situation is to increase the representation of women in decision-making positions. This is a subject on which you have a lot to say. To what extent has your journey been strewn with pitfalls and what is your point of view on the subject?
I started my professional career as a young teacher in Bulgaria. From the start, one thing was clear: to be treated equally, I had to work harder than my male colleagues. And I regret to say that this has been the case throughout my career, or almost.
What I can say to women, young women in particular, is that despite this, even if there are obstacles, number one, you can do it. You are strong, you are intelligent. You are beautiful. You can move forward for yourself, but also for what you will bring to society. Second, when you get there, and this is a very important lesson that has served me personally and which I have seen useful many times throughout my career, believe in yourself. Do not hesitate to present your references with confidence. I’m going to tell you a little anecdote from Brussels. When I was vice president in charge of human resources, we had a very ambitious goal: to increase the number of women in management positions to 40%. And I can say that the Commission has done an excellent job in achieving this goal. But one thing I noticed was that when we were down to two candidates, a man and a woman, when they were interviewed, both had strong and weak points. out of five benchmarks, by fulfilling three criteria out of five, this is how the man approached the question. He said: “Look, I perfectly meet the three most important criteria and I bring to the job my extraordinary personality. So of course I’m the best person for the job.” And how did the woman pass the interview? – She said: “I only fulfilled three criteria, I don’t know, maybe there is someone better than me”. Don’t do this. Because if you don’t believe in yourself, why should others believe in you?
And I would also advise women to work with other women. Critical size is a strength. I see it all the time. I see it at the International Monetary Fund (IMF), at the World Bank, at the European Commission, and when there are more women around the table, you can feel that energy in the room, and you make better decisions because that we have different perspectives, covered in this interview. So, take a step forward for yourself, for girls and women, for boys and men. Make your contribution to society!
