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The State of Women’s Economic Rights Worldwide

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Womens Economic Rights

Women's Economic Rights

This Markets in a Minute Chart is available as a poster.

The State of Women’s Economic Rights Worldwide

While significant progress has been made over time, women still face entrepreneurship and employment barriers. In fact, on average around the globe, women have just three-quarters of the legal economic rights granted to men.

Equal opportunities are important not only from a human rights perspective, but also from an economic perspective. When women are able to work outside the home and manage money, they are more likely to join the workforce and contribute to economic growth.

In this Markets in a Minute chart from New York Life Investments, we show the state of women’s legal economic rights around the world.

Economic Opportunity by Country

The World Bank analyzed eight metrics that affect women’s economic empowerment at various life stages: mobility, workplace, pay, marriage, parenthood, entrepreneurship, assets, and pension. For example, in places where women are able to move around freely, they are more likely to join the workforce.

To ensure comparability, women are assumed to work in the main business city of their country and in the formal sector. The formal sector refers to work with companies that contribute taxes and/or are registered with the government. It’s also worth noting that the data is based on legal rights, and religious or customary laws are not considered unless codified.

A score of 100 means that women have the same legal economic rights as men for the eight metrics measured. Here’s how each of the 190 economies stack up, sorted by score.

EconomyScore
Belgium100.0
Canada100.0
Denmark100.0
France100.0
Iceland100.0
Latvia100.0
Luxembourg100.0
Sweden100.0
Estonia97.5
Finland97.5
Germany97.5
Greece97.5
Ireland97.5
Italy97.5
Netherlands97.5
Portugal97.5
Spain97.5
United Kingdom97.5
Australia96.9
Hungary96.9
Norway96.9
Peru95.0
Austria94.4
New Zealand94.4
Paraguay94.4
Slovak Republic94.4
Croatia93.8
Czech Republic93.8
Lithuania93.8
Poland93.8
Serbia93.8
Slovenia93.8
Kosovo91.9
Mauritius91.9
Albania91.3
Cyprus91.3
Taiwan, China91.3
United States91.3
Bulgaria90.6
Romania90.6
Ecuador89.4
Hong Kong SAR, China89.4
El Salvador88.8
Malta88.8
Uruguay88.8
Lao PDR88.1
South Africa88.1
Guyana86.9
Zimbabwe86.9
Cabo Verde86.3
Dominican Republic86.3
Namibia86.3
Nicaragua86.3
São Tomé and Príncipe86.3
Georgia85.6
Switzerland85.6
Bosnia and Herzegovina85.0
Korea, Rep.85.0
North Macedonia85.0
Venezuela, RB85.0
Moldova84.4
Tanzania84.4
Togo84.4
Liberia83.8
Mexico83.8
St. Lucia83.8
Côte d’Ivoire83.1
Timor-Leste83.1
Armenia82.5
Bolivia82.5
Mongolia82.5
Singapore82.5
Turkey82.5
Brazil81.9
Colombia81.9
Japan81.9
Montenegro81.9
Bahamas, The81.3
Philippines81.3
Puerto Rico81.3
Zambia81.3
Grenada80.6
Kenya80.6
Malawi80.6
Costa Rica80.0
Samoa80.0
San Marino80.0
Belize79.4
Burkina Faso79.4
Fiji79.4
Panama79.4
Azerbaijan78.8
Congo, Dem. Rep.78.8
Kiribati78.8
Tajikistan78.8
Ukraine78.8
Vietnam78.8
Rwanda78.1
Thailand78.1
Chile77.5
Israel77.5
Barbados76.9
Kyrgyz Republic76.9
Mozambique76.9
Argentina76.3
Seychelles76.3
Belarus75.6
China75.6
Lesotho75.6
Morocco75.6
Cambodia75.0
Ghana75.0
Honduras75.0
Trinidad and Tobago75.0
Benin74.4
Gambia, The74.4
India74.4
Maldives73.8
Nepal73.8
Angola73.1
Burundi73.1
Russian Federation73.1
Uganda73.1
Kazakhstan72.5
Bhutan71.9
Ethiopia71.9
Madagascar71.9
Central African Republic71.3
St. Kitts and Nevis71.3
Guatemala70.6
Saudi Arabia70.6
South Sudan70.0
Tunisia70.0
Eritrea69.4
Djibouti68.1
Jamaica68.1
Sri Lanka68.1
St. Vincent and the Grenadines68.1
Uzbekistan67.5
Antigua and Barbuda66.3
Chad66.3
Suriname66.3
Guinea65.0
Indonesia64.4
Botswana63.8
Senegal63.8
Nigeria63.1
Sierra Leone63.1
Dominica62.5
Haiti61.3
Micronesia, Fed. Sts.61.3
Mali60.6
Papua New Guinea60.0
Niger59.4
Comoros58.8
Marshall Islands58.8
Myanmar58.8
Palau58.8
Tonga58.8
Vanuatu58.1
Algeria57.5
Gabon57.5
Cameroon56.9
Solomon Islands56.9
United Arab Emirates56.3
Brunei Darussalam53.1
Lebanon52.5
Equatorial Guinea51.9
Libya50.0
Malaysia50.0
Bangladesh49.4
Pakistan49.4
Somalia46.9
Bahrain46.3
Congo, Rep.46.3
Eswatini46.3
Mauritania45.6
Egypt, Arab Rep.45.0
Iraq45.0
Guinea-Bissau42.5
Jordan40.6
Oman38.8
Afghanistan38.1
Syrian Arab Republic36.9
Kuwait32.5
Qatar32.5
Iran, Islamic Rep.31.3
Sudan29.4
Yemen, Rep.26.9
West Bank and Gaza26.3

Data as of September 1, 2019.

Following the introduction of paid paternity leave, Canada joined seven other countries that have a perfect score of 100. Paid leave for fathers contributes positively to women’s economic opportunity as it allows childcare responsibilities to be distributed more evenly.

At the other end of the spectrum, economies in the Middle East and North Africa had the lowest scores, with women having only half of the economic rights granted to men. However, these regions have also seen their scores improving the most.

For example, Saudi Arabia was the top-improving economy, more than doubling its score from 31.8 in 2017 to 70.6 in 2019. The country exacted reforms that had an impact on six out of the eight metrics. The amendments included allowing women to travel abroad without the approval of a male guardian, and changes that prohibit employment discrimination.

A Force for Good, and Economic Growth

All regions have improved their scores, but most countries still need further legal reform to put women on an equal economic footing with men. Doing so will have important socioeconomic implications. For instance, greater equality of economic opportunity is correlated with a reduction in the wage gap, increasing women’s earning power.

It also has positive economic outcomes. One study published in the Harvard Business Review found that when more women joined the workforce, they helped make cities more productive and increased real wages for both women and men.

As investors pursue geographic areas with economic growth potential, they may want to consider countries that are making the biggest strides for women’s economic rights.

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Markets in a Minute

What is the Success Rate of Actively Managed Funds?

For actively managed funds, the odds of beating the market over the long run are like finding a needle in a haystack.

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Actively Managed Funds

What is the Success Rate of Actively Managed Funds?

Over a 20-year period, 95% of large-cap actively managed funds have underperformed their benchmark.

The above graphic shows the performance of actively managed funds across a range of fund types, using data from S&P Global via Charlie Bilello.

Missing the Mark: Actively Managed Funds

Several factors present headwinds to actively managed funds.

  • Trading costs: First, fund managers will trade more often than passive funds. These in turn incur costs, impacting returns.
  • Cash holdings: Additionally, many of these funds hold a cash allocation of about 5% or more to capture market opportunities. Unlike active funds, their passive counterparts are often fully invested. Cash holdings can have the opposite effect than intended—dragging on overall returns.
  • Fees: Active funds can charge up to 1-2% in investment manager fees while funds that tracked an index passively charged just 0.12% on average in 2022. These additional costs add up over time.

Below, we show how active funds increasingly underperform against their benchmark over each time period.

Fund Type1 Year
% Underperformed
5 Year
% Underperformed
10 Year
% Underperformed
20 Year
% Underperformed
All Large-Cap 51879195
All Small-Cap 57718994
Large-Cap Growth 74869698
Large-Cap Value 59698587
Small-Cap Growth 80598597
Small-Cap Value 41819192
Real Estate 88627487

As we can see, 51% of all large-cap active mutual funds underperformed in a one-year period. That compares to 41% of small-cap value funds, which had the best chance of outperforming the benchmark annually. Also, an eye-opening 88% of real estate funds underperformed.

For context, Warren Buffett’s firm Berkshire Hathaway has beat the S&P 500 two-thirds of the time. Even the world’s top stock pickers have a hard time beating the market’s returns.

2020 Market Crash: A Case Study

How about active funds’ performance during a crisis?

While the case for actively managed funds is often stronger during a market downturn, a 2020 study shows how they continued to underperform the index.

Overall, 74% of over 3,600 active funds with $4.9 trillion in assets did worse than the S&P 500 during the 2020 market plunge.

Stage of 2020 CycleTime Period% Underperforming S&P 500
CrisisFeb 20 - Apr 30, 202074.2
CrashFeb 20 - Mar 23, 202063.5
RecoveryMar 24 - Apr 30, 202055.8
Pre-CrisisOct 1 2019 - Jan 31, 202067.1

Source: NBER

In better news, roughly half underperformed through the recovery, the best out of any market condition that was studied.

The Bigger Impact

Of course, some actively managed funds outperform.

Still, choosing the top funds year after year can be challenging. Also note that active fund managers typically only run a portfolio for four and a half years on average before someone new takes over, making it difficult to stick with a star manager for very long.

As lower returns accumulate over time, the impact of investing in active mutual funds can be striking. If an investor had a $100,000 portfolio and paid 2% in costs every year for 25 years, they would lose about $170,000 to fees if it earned 6% annually.

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Markets in a Minute

Ranked: The Largest Bond Markets in the World

The global bond market stands at $133 trillion in value. Here are the major players in bond markets worldwide.

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The Largest Bond Markets in the World

The Largest Bond Markets in the World

In 2022, the global bond market totaled $133 trillion.

As one of the world’s largest capital markets, debt securities have grown sevenfold over the last 40 years. Fueling this growth are government and corporate debt sales across major economies and emerging markets. Over the last three years, China’s bond market has grown 13% annually.

Based on estimates from the Bank for International Statements, this graphic shows the largest bond markets in the world.

ℹ️ Total debt numbers here include both domestic and international debt securities in each particular country or region. BIS notes that international debt securities are issued outside the local market of the country where the borrower resides and cover eurobonds as well as foreign bonds, but exclude negotiable loans.

Ranked: The World’s Top Bond Markets

Valued at over $51 trillion, the U.S. has the largest bond market globally.

Government bonds made up the majority of its debt market, with over $26 trillion in securities outstanding. In 2022, the Federal government paid $534 billion in interest on this debt.

China is second, at 16% of the global total. Local commercial banks hold the greatest share of its outstanding bonds, while foreign ownership remains fairly low. Foreign interest in China’s bonds slowed in 2022 amid geopolitical tensions in Ukraine and lower yields.

Bond Market RankCountry / RegionTotal Debt OutstandingShare of Total Bond Market
1🇺🇸 U.S.$51.3T39%
2🇨🇳 China$20.9T16%
3🇯🇵 Japan$11.0T8%
4🇫🇷 France$4.4T3%
5🇬🇧 United Kingdom$4.3T3%
6🇨🇦 Canada$4.0T3%
7🇩🇪 Germany$3.7T3%
8🇮🇹 Italy$2.9T2%
9🇰🇾 Cayman Islands*$2.7T2%
10🇧🇷 Brazil*$2.4T2%
11🇰🇷 South Korea*$2.2T2%
12🇦🇺 Australia$2.2T2%
13🇳🇱 Netherlands$1.9T1%
14🇪🇸 Spain$1.9T1%
15🇮🇳 India*$1.3T1%
16🇮🇪 Ireland$1.0T1%
17🇲🇽 Mexico*$1.0T1%
18🇱🇺 Luxembourg$0.9T1%
19🇧🇪 Belgium$0.7T>1%
20🇷🇺 Russia*$0.7T>1%

*Represent countries where total debt securities were not reported by national authorities. These figures are the sum of domestic debt securities reported by national authorities and/or international debt securities compiled by BIS.
Data as of Q3 2022.

As the above table shows, Japan has the third biggest debt market. Japan’s central bank owns a massive share of its government bonds. Central bank ownership hit a record 50% as it tweaked its yield curve control policy that was introduced in 2016. The policy was designed to help boost inflation and prevent interest rates from falling. As inflation began to rise in 2022 and bond investors began selling, it had to increase its yield to spur demand and liquidity. The adjustment sent shockwaves through financial markets.

In Europe, France is home to the largest bond market at $4.4 trillion in total debt, surpassing the United Kingdom by roughly $150 billion.

Banks: A Major Buyer in Bond Markets

Like central banks around the world, commercial banks are key players in bond markets.

In fact, commercial banks are among the top three buyers of U.S. government debt. This is because commercial banks will reinvest client deposits into interest-bearing securities. These often include U.S. Treasuries, which are highly liquid and one of the safest assets globally.

As we can see in the chart below, the banking sector often surpasses an economy’s total GDP.

Banking Sector

As interest rates have risen sharply since 2022, the price of bonds has been pushed down, given their inverse relationship. This has raised questions about what type of bonds banks hold.

In the U.S., commercial banks hold $4.2 trillion in Treasury bonds and other government securities. For large U.S. banks, these holdings account for almost 24% of assets on average. They make up an average 15% of assets for small banks in 2023. Since mid-2022, small banks have reduced their bond holdings due to interest rate increases.

As higher rates reverberate across the banking system and wider economy, it may expose further strains on global bond markets which have expanded rapidly in an era of dovish monetary policy and ultra-low interest rates.

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