Gender inequality must be tackled if the G20 is to achieve its commitment to 'inclusive growth', argues Caroline Green.

As the great and the good prepare to gather at the snow-capped mountains of Davos for the World Economic Forum, a vital question sits on the agenda that holds the potential to transform the lives of the world's poorest people. That question, as Lee Howell, Managing Director for the Centre for Global Events at the World Economic Forum puts it, is how do we ensure growth that is, "Sustainable... equitable and...  inspiring for future generations?" Beyond this, how can we ensure that equitable growth really extends to women, who continue to face multiple barriers to equal rights and opportunities across the world?

Today's launch of Oxfam's report, Left behind by the G20?, challenges the assumption that strong growth is enough in itself to prevent poverty. It shows that income inequality is actually growing in most G20 countries at the same time as unsustainable economic expansion is depleting natural resources. The net effect is deadly: not only rendering the benefits of economic growth inaccessible for the poor, but diminishing the natural resources so many rely on to survive and exposing them to the impacts of climate change.

The report shows that only four countries in the G20 have improved income inequality since 2000: Brazil, Korea, Mexico and Argentina; something they have managed to do while growing. But income inequality only tells part of the story. Inequalities of wealth and gender inequalities also impact on development outcomes. In many countries, the subordinate status of women and girls translates into less access to education, health services, political spaces, land and credit.

Take India for example. From 1994 to 2005 growth boomed; GDP per capita grew at an annual average of nearly five per cent. And inequality, although rising, performed relatively well under the Gini-coefficient measurement of income inequality. But we did not see a significant drop in the poverty rate, and, with India's increasing population, this resulted in over  3.4 million more people living on less than $1.25 a day. 

Furthermore, looking beneath the surface, gender inequalities continued to prevail. The entry of women into the workforce was far below what would be expected given increases in girls' education and average incomes. And despite high levels of growth, maternal mortality remained relatively high. Director of the Development Research Group at the World Bank, Martin Ravaillon has confirmed that prevalent aspects of inequality in India include gender inequality and inequality of land ownership.

The G20 has committed to 'inclusive growth', but it's time these words were matched at national levels with inequality-lowering and environmentally sustainable policies. And these policies, desperately needed in many G20 (and other non-G20 countries), must not only redress income inequalities but also gender inequalities. As India's Prime Minister Manmohan Singh said recently, 'Rapid growth will have little meaning...unless social and economic inequalities, which still afflict our society, are not eliminated quickly and effectively.' 

Redistributive policies, investments in universal access to education and healthcare, progressive taxation, strengthening access to land, and improving environmental sustainability are essential. So too are policies that tackle existing gender inequalities - whether exercised formally or informally, by the state, society or in the home - that continue to trap women in poverty. Governments must urgently reform discriminatory legislation and institutions, target action to meet women's health and educational needs, and remove barriers to women's quality employment. Women must be given a voice - in parliaments, society at large and in the home. And the social norms that limit women's access to assets, income and decision-making must be addressed.

Today's report studies income inequality in the G20, and a range of non-G20 lower middle-income countries, and demonstrates that reducing inequality is achievable for these economies. It is as much a matter of political decision as of economics and rests on governments to act. The challenge is not insurmountable; in fact reducing poverty can drive growth. The world is finally waking up to the importance of addressing the barriers faced by women, with donors such as the UK and World Bank focusing further on women and girls. So let's ensure women's rights are at the heart of forms of growth that are truly inclusive and sustainable.

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Download the Left Behind by the G20 paper