Address inclusion in public budgets for greater gender equality

March 8, 2020 was marked in the history of Latin America and the Caribbean as the moment when women in the region took International Women's Day as their own, calling for one of the most massive regional mobilizations in recent times. .

From Mexico to Argentine Patagonia, millions of women united in protest to demand equal opportunities.

Ironically, the noise of this protest was overshadowed by the emergency of the Covid-19 pandemic that was declared that same month.

Today, four years later, it can be seen that the profound impact of the pandemic and the confinement imposed to mitigate it worsened, in some cases, inequalities, implying a setback in many of the achievements in terms of gender equality in the region.

“Firstly, in Latin America and the Caribbean the world of work continues to be restrictive for women compared to men, with 34% of women employed in vulnerable jobs that are often less productive and offer lower salaries,” she explains. Paola Buitrago, World Bank Economist.

“In addition, a marked inequality persists in the distribution of unpaid domestic responsibilities, where women spend more than twice as much time as men,” says the economist.

One of the clearest post-pandemic lessons in terms of public policies is the prevailing need to address gender inequalities comprehensively in the region.

Furthermore, today it is recognized that the worsening of natural phenomena due to global warming, economic and financial crises, as well as armed conflicts, are not gender neutral.

Women are the most affected by multiple global crises.

Field visit of the Specific Dedicated Mechanism (SDM) for indigenous peoples and local communities in the state of Oaxaca, in Mexico.Jessica Belmont/World Bank

In this context, Urska Zrinski, senior public sector specialist for the World Bank, expert in gender-sensitive budgeting, emphasizes: “Right now, the stakes are high and the commitment to gender equality must be reflected in national budgets.” .”

The specialist points out that “although inequality between men and women persists, the truth is that Latin America and the Caribbean have experienced important advances in the empowerment of women in recent years, as indicated in the Global Report on the Gender Gap. Gender 2023 of the World Economic Forum, which positions the region as the third most gender equal after Europe and North America.

A gender-sensitive budget is one that recognizes the differential impacts of the spending and income policies of public entities between women and men, thus contributing to the creation of more inclusive societies.

Several countries in Latin America and the Caribbean have made important progress in integrating gender considerations in public budget planning, according to a report prepared by the World Bank.

Mexico, for example, has one of the most developed gender-sensitive budgeting approaches in the world.

Countries with active initiatives, such as Argentina, Guatemala and others, are already beginning to integrate gender considerations into their budgets, highlighting the impact of closing gender gaps and promoting the financial empowerment of women.

Despite this progress, challenges remain in terms of implementation, political will, and monitoring mechanisms.

Expenditures for gender parity in Mexico 2018-2023 from the Center for Public Finance Studies.

Zrinski also highlights other notable practices in the region.

“In countries like Guatemala, Argentina and Colombia, labeled spending is implemented, which is a spending budget tool that guarantees the allocation of specific resources to address the needs of women.

“This contributes to estimating the amount of public spending that supports gender equality goals and promotes transparency and accountability,” she says.

“Another good practice is found in Ecuador, Guatemala, Honduras and Uruguay, where there are gender audits in institutions, which effectively contribute to evaluating policies and identifying areas of opportunity.”

On the other hand, for Caribbean countries, the gender perspective budgeting approach becomes vitally important, given that these countries are more vulnerable to the impacts of climate change.

“It is imperative to budget for equity and equality in natural disaster risk management, as these have been shown to disproportionately impact women, children, people with disabilities, ethnic and racial minorities, indigenous peoples and other marginalized communities.” ”Adds Urska Zrinski.

In this regard, the World Bank is also providing support to Caribbean States in the development of gender-sensitive budgeting with a broad approach, which includes the aspect of gender-responsive public procurement.

Regarding this topic, senior public procurement specialist Manjola Malo explains: “According to recent data, women own 34% of small and medium-sized businesses globally, but their participation in the public procurement market varies. between 1 and 5%.

In this sense, the purchasing power of governments has an enormous influence on the markets, being capable of establishing the foundations for economic and financial inclusion in the Caribbean.

That is why we are exploring, through the analysis of available data and current legislation, different entry points in public procurement processes in the Caribbean that allow more women to access public tenders.”

Finally, it should be noted that, in addition to promoting inclusion, budgeting with a gender perspective brings other benefits such as accountability in different aspects of public spending, since it allows access to established information on budget performance. the case of Grenada, as well as Saint Vincent and the Grenadines, where the development of a financing framework for gender equality is promoted, which allows better monitoring of results and identification of gaps in areas such as health and participation in the labor market,” concludes Zrinski.

By considering social inclusion in the budget process, governments can ensure that the needs of the other fifty percent of the population are taken into account.

Faced with a complex reality of multiple crises, budgeting with a gender perspective represents a tool with the potential to generate multiple solutions to the challenge of inequality in Latin America and the Caribbean.