Speech by Christine Lagarde, President of the ECB, at the International Women’s Day event organized by the World Trade Organization (WTO) in Geneva
Geneva, March 8, 2023
It is my pleasure to be here at the WTO to discuss women and business on such an important occasion, International Women’s Day.
And this discussion comes at a critical juncture: Geopolitical tensions and global trade fragmentation threaten to erase decades of progress in women’s economic empowerment.
Since the Great Financial Crisis, the global economy has been hit by a series of unprecedented shocks, most recently Russia’s war against Ukraine. And all of this has taken its toll on trade growth, which has plateaued as a share of world GDP.[1]
Instead, protectionism is on the rise – and may well get worse – as countries reconfigure their supply chains to align with new strategic goals. The number of trade restrictions in force has increased tenfold in the last ten years.[2]
This is not to say that we are facing downright deglobalization – far from it. The strong economic logic underlying the gains from international trade remains as valid for governments and corporations as ever.
But the nature of globalization is changing. We are likely to see more trade within blocs as countries that share common values and interests deepen trade ties to increase their resilience to external shocks and threats. And the changing nature of globalization can have implications for women’s empowerment.
The rise of world trade is closely linked to the emancipation of women. International companies in developing countries also employ more women. Women make up a third of the workforce at such companies, compared to less than a quarter at non-exporting companies.[3]
And in advanced economies, tariffs can sometimes fall disproportionately on women’s shoulders. In the US, average duty rates on women’s products are higher than those on men.[4]
Overall, countries that are more open to trade tend to exhibit higher levels of gender equality.[5] This is partly because trade liberalization has been associated with greater accumulation of education and skills for women.[6]
We must therefore act immediately – not only to maintain the existing achievements for the economic empowerment of women, but also to expand them. And we must ensure that a changing global economy does not lead to new inequalities.[7]
Action can be taken on three broad fronts.
First, we must ensure trade remains as open as possible within new geopolitical constraints. And this applies in particular to maintaining market access for developing countries that do not have to suffer from great power competition.
Second, we need to make gender a more substantive part of trade negotiations so that women benefit as much as they should. Today, over 80 regional or bilateral trade agreements contain at least one provision mentioning gender or women.[8] This number needs to increase.
Third, we need to see more women in leadership positions, as this could encourage open trade and halt the slide towards fragmentation.
Female leaders tend to possess qualities that can be particularly beneficial in times of geopolitical tension. According to one study, they are particularly good at thinking holistically, dealing with complexity and relying on cooperation – qualities that are ideal when it comes to trade negotiations.[9]
At the core is a two-way relationship – trade can empower women and women can empower trade.
But we still have a long way to go before female leadership becomes as prominent in this world as it needs to be. For example, since 1945 women have held only 12% of top positions in the largest multilateral institutions.[10] That needs to change. And I have no doubt that together we will make it.
As we celebrate International Women’s Day, I think of the young women I see today and the opportunities that are before them. And the words of the writer Gertrude Stein come to mind: “You are extraordinary within your limits, but your limits are extraordinary.”
Because today is not just about how we as women react to a changing global economy. It’s also about how we design it.
Thank you very much.
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