Connect with us

Markets in a Minute

The State of Women’s Economic Rights Worldwide

Published

on

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

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.

Advisor channel footer

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
Comments

Markets in a Minute

Visualizing the Hierarchy of Financial Needs

This diagram showing the hierarchy of financial needs is a direct spin-off of American psychologist Abraham Maslow’s famous concept.

Published

on

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

Visualizing the Hierarchy of Financial Needs

Behavioral scientist Abraham Maslow wrote “A Theory of Human Motivation” in 1943, arguing that humans worldwide are influenced by a “hierarchy of needs”.

This theory organizes human needs across five levels, where needs in the lower end must be satisfied before progressing onto the next level. At one end are physiological needs such as sleep and shelter, while at the other end are esteem and self-actualization.

This Markets in a Minute chart from New York Life Investments explores how Maslow’s theory applies to our financial needs, pinning down the steps to creating a strong financial foundation.

The Essentials

What are the five levels in the hierarchy of financial needs?

  1. Cash flow and basic needs:
    Covering food, housing and daily expenses. Ensuring the fundamentals, including our physiological needs, are covered financially.
  2. Financial safety:
    This covers insurance and an emergency fund to help prepare for unforeseen events and risks. As a safety cushion, an emergency fund should cover three months of living expenses in case of an accident, an unexpected health or family issue, or losing a job.
  3. Accumulating wealth:
    This includes growing investments, paying down debt, and saving for retirement. At this level, the focus shifts to growing assets for long-term success and longevity.
  4. Financial freedom:
    Long-term care and children’s education are found within this category, along with retirement savings and vacations. These financial needs are linked with esteem needs, such as self-respect and personal accomplishment.
  5. Legacy:
    Estate planning, tax planning, and business succession planning all fall within this category, connecting with self-actualization in Maslow’s pyramid.

Naturally, financial needs can shift based on a given situation. But as a general rule of thumb, moving along this path can help create an enduring roadmap for financial heath.

Financial Needs Under the Microscope

While it’s easy enough to describe the theory in concept, how does the hierarchy of financial needs impact our day-to-day lives in practice?

To start, as individuals live longer, many are concerned with having enough savings for retirement—across all income levels. For Americans in the lower income bracket, 50% worry about their retirement savings, while 26% worry in upper income levels.

Worry about each of the following oftenLower IncomeMiddle IncomeUpper Income
Being able to save enough for retirement50%37%26%
Paying their bills59%35%15%
The amount of debt they have51%35%21%
The cost of health care for them and their family47%35%18%
Take a pay cut due to reduced hours or demand for their work51%25%18%
Losing their job40%21%11%

Source: Pew Research Center, survey of U.S. adults conducted April 7-12, 2020

Debt is also a primary concern among many Americans, as the cost of both healthcare and education have continued to rise. Average annual college costs, for example, have risen 25% over the last decade, while U.S. household debt has roughly doubled to $14 trillion since 2004.

It’s only once these above needs are taken care of that individuals can focus on the top of the financial needs hierarchy, taking care of legacy-focused items such as estate and tax planning, or business succession planning.

The Importance of Wealth Management

To navigate the hierarchy of financial needs, the importance of having a robust financial plan comes into focus.

Especially during times of uncertainty, individuals need a framework that accounts for changing life circumstances, such as a new job or purchasing a house. And when individuals move up each rung of the financial needs pyramid, they must also recognize how their tactics might need to change to best pursue their financial goals.

Cultivating a stronger awareness of financial needs can help individuals make more informed choices, on both a micro and macro level—from day-to-day purchases to long-term investment decisions.

Advisor channel footer

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Markets in a Minute

The World Macroeconomic Risk Map in 2020

Which countries have the highest macroeconomic risk? This macroeconomic risk map shows how countries are positioned going forward in 2020.

Published

on

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

The World Macroeconomic Risk Map in 2020

In times of crisis, risk is thrown under the microscope and former assumptions are reassessed.

From the political climate to the flow of international trade, the impact of COVID-19 has destabilized macroeconomic conditions in many jurisdictions globally.

The above Markets in a Minute chart from New York Life Investments is a macroeconomic risk map of 241 countries and regions as global economies shift.

Measuring Risk

Data for the risk map comes from Euler Hermes, and it scores macroeconomic risk primarily based on the following categories: political risk, structural business environment, commercial risk, and financing risk.

The political risk category, for example, takes into account the concentration of power in a country. It also assesses the degree of independence of national institutions and social cohesion.

In total, a country’s macroeconomic risk profile is determined, representing the broad risk of non-payment of companies within a country.

Highest Macroeconomic Risk

Given the sheer weight of the current economic climate, which countries have the highest macroeconomic risk?

CountryRisk Level
🇦🇫 AfghanistanHigh Risk
🇦🇱 AlbaniaHigh Risk
🇦🇴 AngolaHigh Risk
🇦🇷 ArgentinaHigh Risk
🇦🇲 ArmeniaHigh Risk
🇦🇿 AzerbaijanHigh Risk
🇧🇩 BangladeshHigh Risk
🇧🇧 BarbadosHigh Risk
🇧🇾 BelarusHigh Risk
🇧🇿 BelizeHigh Risk
🇧🇴 BoliviaHigh Risk
🇧🇦 Bosnia and HerzegovinaHigh Risk
🇧🇮 BurundiHigh Risk
🇨🇲 CameroonHigh Risk
🇨🇻 Cape Verde IslandsHigh Risk
🇨🇫 Central African RepublicHigh Risk
🇹🇩 ChadHigh Risk
🇰🇲 ComorosHigh Risk
🇨🇩 Congo (Democratic Rep Of)High Risk
🇨🇬 Congo (People's Rep Of)High Risk
CubaHigh Risk
DjiboutiHigh Risk
Equatorial GuineaHigh Risk
EritreaHigh Risk
FijiHigh Risk
GabonHigh Risk
GambiaHigh Risk
GeorgiaHigh Risk
Guinea (Rep Of)High Risk
Guinea BissauHigh Risk
HaitiHigh Risk
IranHigh Risk
IraqHigh Risk
KazakhstanHigh Risk
KyrgyzstanHigh Risk
LaosHigh Risk
LebanonHigh Risk
LiberiaHigh Risk
LibyaHigh Risk
MadagascarHigh Risk
MalawiHigh Risk
MaldivesHigh Risk
MaliHigh Risk
Marshall IslandsHigh Risk
MauritaniaHigh Risk
MoldovaHigh Risk
MongoliaHigh Risk
MontenegroHigh Risk
MozambiqueHigh Risk
Myanmar (Burma)High Risk
NauruHigh Risk
NepalHigh Risk
NicaraguaHigh Risk
NigerHigh Risk
NigeriaHigh Risk
North KoreaHigh Risk
PakistanHigh Risk
Papua New GuineaHigh Risk
SeychellesHigh Risk
Sierra LeoneHigh Risk
Solomon IslandsHigh Risk
SomaliaHigh Risk
South SudanHigh Risk
Sri LankaHigh Risk
SudanHigh Risk
SurinameHigh Risk
SyriaHigh Risk
TajikistanHigh Risk
Timor LesteHigh Risk
TogoHigh Risk
TongaHigh Risk
TurkmenistanHigh Risk
UkraineHigh Risk
UzbekistanHigh Risk
VenezuelaHigh Risk
YemenHigh Risk
ZambiaHigh Risk
ZimbabweHigh Risk

Argentina’s soaring inflation is estimated to reach 40.7% in 2020. Coupled with a poorly-timed debt restructuring, its economy is anticipated to shrink 12% over the course of the year. Yet for all its hardship, the country managed to send COVID-19 relief money to its citizens in just three days.

Meanwhile, countries including Venezuela and Bolivia are at steeper risk, compounded by their heavy reliance on commodity exports, such as oil.

Medium to Sensitive Risk

Overall, roughly 100 jurisdictions live within this mid-range risk threshold.

CountryRisk Level
🇦🇼 ArubaMedium Risk
🇧🇼 BotswanaMedium Risk
🇧🇷 BrazilMedium Risk
🇧🇬 BulgariaMedium Risk
🇨🇳 ChinaMedium Risk
🇭🇷 CroatiaMedium Risk
🇨🇾 CyprusMedium Risk
🇩🇴 Dominican RepublicMedium Risk
🇸🇻 El SalvadorMedium Risk
🇬🇷 GreeceMedium Risk
🇬🇹 GuatemalaMedium Risk
🇭🇺 HungaryMedium Risk
🇮🇸 IcelandMedium Risk
🇮🇳 IndiaMedium Risk
🇮🇩 IndonesiaMedium Risk
🇯🇴 JordanMedium Risk
🇰🇼 KuwaitMedium Risk
🇲🇦 MoroccoMedium Risk
🇳🇺 NiueMedium Risk
ParaguayMedium Risk
PhilippinesMedium Risk
QatarMedium Risk
RomaniaMedium Risk
RwandaMedium Risk
Saudi ArabiaMedium Risk
ThailandMedium Risk
Trinidad & TobagoMedium Risk
AnguillaMedium Risk
BahamasMedium Risk
BruneiMedium Risk
ChileMedium Risk
ColombiaMedium Risk
Costa RicaMedium Risk
French PolynesiaMedium Risk
Hong KongMedium Risk
IsraelMedium Risk
LatviaMedium Risk
LithuaniaMedium Risk
MacaoMedium Risk
MalaysiaMedium Risk
MauritiusMedium Risk
MexicoMedium Risk
MontserratMedium Risk
PanamaMedium Risk
PeruMedium Risk
PolandMedium Risk
PortugalMedium Risk
Puerto RicoMedium Risk
SloveniaMedium Risk
United Arab EmiratesMedium Risk
UruguayMedium Risk
AlgeriaSensitive Risk
Antigua & BarbudaSensitive Risk
BahrainSensitive Risk
BeninSensitive Risk
BhutanSensitive Risk
Burkina FasoSensitive Risk
CambodiaSensitive Risk
Cook IslandsSensitive Risk
Côte d'IvoireSensitive Risk
CuracaoSensitive Risk
DominicaSensitive Risk
EcuadorSensitive Risk
EgyptSensitive Risk
EswatiniSensitive Risk
EthiopiaSensitive Risk
GhanaSensitive Risk
GrenadaSensitive Risk
GuyanaSensitive Risk
HondurasSensitive Risk
JamaicaSensitive Risk
KenyaSensitive Risk
KiribatiSensitive Risk
LesothoSensitive Risk
MicronesiaSensitive Risk
NamibiaSensitive Risk
North MacedoniaSensitive Risk
OmanSensitive Risk
PalauSensitive Risk
RussiaSensitive Risk
SamoaSensitive Risk
Sao Tome & PrincipeSensitive Risk
SenegalSensitive Risk
SerbiaSensitive Risk
South AfricaSensitive Risk
St. Kitts & NevisSensitive Risk
St. LuciaSensitive Risk
St. MaartenSensitive Risk
St. Vincent & The GrenadinesSensitive Risk
TanzaniaSensitive Risk
TunisiaSensitive Risk
TurkeySensitive Risk
TuvaluSensitive Risk
UgandaSensitive Risk
VanuatuSensitive Risk
VietnamSensitive Risk

As Russia contends with sanctions and counter-sanctions with the West, its political conditions face greater risks. Alongside this, increased involvement in the Syria crisis also factors negatively.

On the other hand, Indonesia’s strong banking system and solid fiscal policies are met with interest rates that fall around 4%. This means that its central bank has leeway to lower interest rates to help spur growth.

Lowest Macroeconomic Risk

As the dust begins to settle, which countries are positioned with the least risk?

France’s high quality education system and diversified economy provide key strengths. Sweden, also with a highly educated population, is cushioned with solid public finances. Also, its R&D spending is among the highest globally.

Meanwhile, Japan, Taiwan, and South Korea have favorable factors at play.

CountryRisk Level
🇦🇸 American SamoaLow Risk
🇧🇲 BermudaLow Risk
🇻🇬 British Virgin IslandsLow Risk
🇰🇾 Cayman IslandsLow Risk
🇨🇽 Christmas IslandLow Risk
🇨🇨 Cocos (Keeling) IslandsLow Risk
🇨🇿 Czech RepublicLow Risk
🇫🇰 Falkland IslandsLow Risk
🇫🇴 Faroe IslandsLow Risk
🇬🇮 GibraltarLow Risk
🇬🇱 GreenlandLow Risk
🇬🇺 GuamLow Risk
🇮🇪 IrelandLow Risk
🇮🇹 ItalyLow Risk
🗾 JapanLow Risk
🇲🇹 MaltaLow Risk
🇾🇹 MayotteLow Risk
🇳🇨 New CaledoniaLow Risk
🇳🇫 Norfolk IslandLow Risk
Northern Mariana IslandsLow Risk
Pitcairn IslandsLow Risk
San MarinoLow Risk
SlovakiaLow Risk
South KoreaLow Risk
SpainLow Risk
St HelenaLow Risk
St. Pierre Et MiquelonLow Risk
Svalbard & Jan MayenLow Risk
TaiwanLow Risk
TokelauLow Risk
Turks & CaicosLow Risk
US Virgin IslandsLow Risk
Wallis & FutunaLow Risk
AndorraLow Risk
AntarcticaLow Risk
AustraliaLow Risk
AustriaLow Risk
BelgiumLow Risk
BES Islands (Bonaire, St Eustatius, Saba)
Low Risk
Bouvet IslandLow Risk
British Indian Ocean TerritoryLow Risk
CanadaLow Risk
DenmarkLow Risk
EstoniaLow Risk
FinlandLow Risk
FranceLow Risk
French GuianaLow Risk
French Southern TerritoryLow Risk
GermanyLow Risk
GuadeloupeLow Risk
Heard and McDonald IslandsLow Risk
LiechtensteinLow Risk
LuxembourgLow Risk
MartiniqueLow Risk
MonacoLow Risk
NetherlandsLow Risk
New ZealandLow Risk
NorwayLow Risk
ReunionLow Risk
SingaporeLow Risk
South Georgia/Sandwich IslandsLow Risk
SwedenLow Risk
SwitzerlandLow Risk
United KingdomLow Risk
United StatesLow Risk
US Minor Outlying IslandsLow Risk
Vatican CityLow Risk

How about the U.S.? Backed by the world’s reserve currency, its strengths rest on its diverse GDP and low interest rates. However, the implications of high corporate debt—climbing to $10.2 trillion—weighs significantly, not to mention increasing political fragmentation.

As central banks in wealthy countries press ahead, the end of stimulus packages still seems like a distant prospect. Together, rich nations are projected to borrow a combined 17% of their GDP in this year alone. This, matched with low inflation, is helping to defend economies from collapse.

Still, it raises a key question—is this necessary for a sustainable global recovery ahead?

Advisor channel footer

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
New York Life Investments Company Spotlight

Subscribe

Are you a financial advisor?

Subscribe here to get every update, including when new charts or infographics go live:

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular