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The majority of women remain locked out of economic opportunities, a situation that is both unjust and detrimental to society’s growth and resilience. According to the 2024 Global Gender Gap report, out of 146 countries assessed, the gap is 68.5% closed, leaving 31.5% still to be bridged. At this pace, achieving full gender parity will take 134 years—pushing the goal roughly five generations beyond the 2030 Sustainable Development Goal (SDG) target. Efforts to prevent further widening of this gap are crucial, and one promising solution is gender budgeting. By involving women at every stage of the budgeting process, we ensure their representation and recognition within society and businesses alike.
WHAT IS GENDER BUDGETING?
Gender budgeting is tied to the integration of gender mainstreaming into the budgetary process. This is carried out by conducting gender-based assessments of budgets, implementing gender perspectives at all stages of the budget-making process, as well as restructuring revenue and expenditure allocation to promote gender equality. Roughly more than half of the G20 countries, a group of all inhabited continents that contributes to 80% of the world GDP, have implemented legal frameworks mandating the inclusion of gender-related goals and activities in their budget processes. A GREAT success case is Iceland, where the gender gap is estimated to be 91.2% closed. Gender budgeting has been practiced in Iceland since 2009 and has become mandatory at the state level in 2016. The protection of women’s equality is emphasized in law, and the Act on Equal Status and Equal Rights of Women and Men stands as the main driver behind gender equality becoming a hallmark of Icelandic culture.
CHALLENGES IN IMPLEMENTATION
The International Monetary Fund (IMF) conducted a survey that identified key challenges in implementing gender budgeting, including a lack of guidance, coordination, and expertise in gender analysis and data. While having strong political backing, legislative requirements, and a Ministry of Finance in control can be powerful tools for success, culture also plays a crucial role in bridging the gender gap. Even with political support, an example of how gender budgeting may be difficult to achieve is evident in Japan. Despite receiving a high score in the gender budgeting index, the nation ranked among the lowest in the Global Gender Gap score, with particularly poor gender equality levels in politics (125 out of 146 countries). One possible explanation is that Japan’s professional and social cultures are deeply intertwined. Gender roles in Japan are highly traditional and profoundly rooted. Many women in the country are willing to sacrifice a higher salary offer to gain a better work-life balance or care for their families. The unique mindset and cultural pressure within Japanese society contribute to the gender gap, presenting challenges to the implementation of gender budgeting in spite of extensive efforts.
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Although Thailand may appear to be progressing on gender equality, the reality shows a different picture, with the female employment-to-population ratio still at only 60%. Even with the increased incorporation of gender budgeting, some countries remain struggling to close the gender gap. Challenges in culture, policy, and coordination between entities are major hindrances that must be addressed. At last, this highlights how both culture and policy play pivotal roles in bridging the gender gap; one cannot work to its fullest potential without the other.
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