GenderandEconomicDevelopmentin MillenniumChallengeCorporationIndicators: AnAssessmentandRecommendations

Preparedforthe MillenniumChallengeCorporation By Xiaojia(Lydia)Bi MariahQuinnDuffy BickeyRimal KellyThorngate AndrewTrembley WorkshopinInternationalPublicAffairs Spring2011

 2011BoardofRegentsoftheUniversityofWisconsinSystem Allrightsreserved. Foradditionalcopies: PublicationsOffice LaFolletteSchoolofPublicAffairs 1225ObservatoryDrive,Madison,WI53706 www.lafollette.wisc.edu/publications/workshops.html publications@lafollette.wisc.edu TheRobertM.LaFolletteSchoolofPublicAffairsisateaching andresearchdepartmentoftheUniversityofWisconsinMadison. Theschooltakesnostandonpolicyissues;opinionsexpressedinthesepages reflecttheviewsoftheauthors. ii

TABLEOFCONTENTS
ListofTables................................................................................................................................iv Foreword.........................................................................................................................................v Acknowledgments.....................................................................................................................vi AbbreviationsandAcronyms..............................................................................................vii ExecutiveSummary..................................................................................................................ix

Introduction.......................................................................................................1 I.GenderandEconomicDevelopment:WhatDoWeKnow?.............2
A.MarketParticipationandGenderEquality.................................................................2 LaborForceParticipationandWages..............................................................................2 . ChildcareAccess..........................................................................................................................4 Entrepreneurship........................................................................................................................5 CreditAccess.................................................................................................................................5 Agriculture.....................................................................................................................................6 B.MacroeconomicPoliciesandGenderEquality..........................................................7 GenderResponsiveBudgeting..............................................................................................7 . TradePolicy...................................................................................................................................8 C.LandUseandGenderEquality.........................................................................................9 PropertyRightsandAccesstoLand...................................................................................9 InfrastructureDevelopment...............................................................................................10 EnvironmentalManagement..............................................................................................11 D.HealthServicesandGenderEquality..........................................................................13 MaternalHealthServices.....................................................................................................13 ReproductiveHealthServices.............................................................................................14 CervicalCancerScreenings.................................................................................................16 . E.EducationandGenderEquality.....................................................................................16 PrimaryEducation..................................................................................................................16 SecondaryEducation.............................................................................................................17 .

II.GenderandEconomicDevelopment:MCCIndicators.................23
A.MarketParticipationandGenderEquality...............................................................23 RegulatoryQuality..................................................................................................................23 BusinessStartUp.....................................................................................................................24 B.MacroeconomicPoliciesandGenderEquality........................................................26 TradePolicy................................................................................................................................26 Inflation........................................................................................................................................27 FiscalPolicy................................................................................................................................28 C.LandUseandGenderEquality.......................................................................................28 LandRightsandAccess.........................................................................................................28 NaturalResourceManagement.........................................................................................29 D.HealthServicesandGenderEquality..........................................................................31 ImmunizationRates...............................................................................................................31 HealthExpenditures...............................................................................................................33 E.EducationandGenderEquality.....................................................................................34

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 PrimaryEducationExpenditures......................................................................................34 GirlsPrimaryEducationCompletionRate...................................................................35

III.GenderandEconomicDevelopment:Indicator Recommendations........................................................................................39
A.MarketParticipationandGenderEquality...............................................................40 BusinessStartUp.....................................................................................................................40 CreditMarkets...........................................................................................................................41 B.MacroeconomicPoliciesandGenderEquality........................................................42 GenderResponsiveBudgeting...........................................................................................42 . C.LandUseandGenderEquality.......................................................................................44 LandRightsandAccess.........................................................................................................44 NaturalResourceManagement.........................................................................................46 D.HealthServicesandGenderEquality..........................................................................48 WomensHealth.......................................................................................................................48 E.EducationandGenderEquality.....................................................................................52 PrimaryEducationExpenditures......................................................................................52 GirlsSecondarySchoolEnrollmentRate......................................................................54

RecommendationsandConclusion.........................................................57 WorksCited.....................................................................................................59 Appendices......................................................................................................72

AppendixA:InternationalFinanceCorporationsAssumptionsaboutthe Business........................................................................................................................................72 AppendixB:NewDataSourcesUsedinSectionIIIIndicators..............................73 AppendixC:AlternativePolicyInstrumentsandMeasures...................................74 AppendixD:WorldEconomicForumsEconomicParticipationand OpportunitySubIndex...........................................................................................................81 AppendixE:CalculationoftheModifiedNaturalResourceManagement Indicator.......................................................................................................................................82 AppendixF:CalculationoftheWomensHealthIndicator.....................................85 AppendixG:CalculationofthePrimarySchoolExpendituresIndicator..........87

ListofTables Table1.PolicyOpportunities:EconomicDevelopmentThroughGender Equality.........................................................................................................................................21 Table2.GenderSensitivityofCurrentMCCIndicators............................................37 Table3.AnalysisofGenderSensitiveInstrumentsforEconomicGrowth.....56 . TableB1.DataSourcesforRecommendedIndicators............................................73

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FOREWORD
StudentsintheMasterofInternationalPublicAffairs(MIPA)programinthe RobertM.LaFolletteSchoolofPublicAffairsattheUniversityofWisconsin MadisonproducedthisreportfortheMillenniumChallengeCorporation, representedforthisprojectbyAndriaHayesBirchler,DevelopmentPolicy Officer.ThestudentsareenrolledintheWorkshopinInternationalPublic Affairs,thecapstonecourseintheirgraduateprogram.Theworkshop providesMIPAstudentstheopportunitytoimprovetheiranalyticalskillsby applyingthemtoanissuewithasubstantialinternationalcomponentandto contributeusefulknowledgeandrecommendationstotheirclient. TheLaFolletteSchooloffersatwoyeargraduateprogramleadingtoa MasterofPublicAffairsoraMasterofInternationalPublicAffairsdegree.In bothprograms,studentsdevelopanalytictoolswithwhichtoassesspolicy responsestoissues,evaluateimplicationsofpoliciesforefficiencyandequity, andinterpretandpresentdatarelevanttopolicyconsiderations. Theworkshopprovidespracticalexperienceapplyingthetoolsofanalysis acquiredduringthreesemestersofcourseworktoactualproblemsclients faceinthepublic,nongovernmental,andprivatesectors.Studentsworkin teamstoproducecarefullycraftedpolicyreportsthatmeethighprofessional standards.Thereportsareresearchbased,analytical,evaluative,and(where relevant)prescriptiveresponsestorealworldclients.Thisculminating experienceistheidealequivalentofthethesisfortheLaFolletteSchool degreesinpublicaffairs.Whiletheacquisitionofasetofanalyticalskillsis important,itisnosubstituteforlearningbydoing. Theopinionsandjudgmentspresentedinthereportdonotrepresentthe views,officialorunofficial,oftheLaFolletteSchooloroftheclientforwhich thereportwasprepared. MelanieFrancesManion ProfessorofPublicAffairsandPoliticalScience May2011

ACKNOWLEDGMENTS
Wethankthefollowingpeople:AndriaHayesBirchleroftheMillennium ChallengeCorporationfortheopportunitytoconductthisresearch;Karen Faster,PublicationsDirectorfortheLaFolletteSchool,forherassistancein editing;andProfessorMelanieManion,ourfacultyadvisor,forherthoughtful andgenerousguidancethroughoutourwritingandrevisingprocess.

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ABBREVIATIONSANDACRONYMS
CDC DALY DHS DPT3 ECD EFA GDI GEI GDP GEM GGHE GRB IFAD IFC IMF MCC NRM UIS UNDP UNESCO UNFPA UNICEF UNIFEM USAID WHO U.S.CentersforDiseaseControlandPrevention DisabilityAdjustedLifeYear DemographicandHealthSurvey DiphtheriaPertussisTetanus EarlyChildhoodDevelopment EducationforAll GenderRelatedDevelopmentIndex SocialWatchsGenderEquityIndex GrossDomesticProduct UNDPsGenderEmpowermentMeasure GeneralGovernmentHealthExpenditure GenderResponsiveBudgeting InternationalFundforAgriculturalDevelopment InternationalFinanceCorporation InternationalMonetaryFund MillenniumChallengeCorporation NaturalResourceManagement UNESCOInstituteforStatistics UnitedNationsDevelopmentProgramme UnitedNationsEducational,ScientificandCulturalOrganization UnitedNationsPopulationFund UnitedNationsChildrensFund UnitedNationsDevelopmentFundforWomen UnitedStatesAgencyforInternationalDevelopment WorldHealthOrganization

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EXECUTIVESUMMARY
Recentscholarshipindicatesthatpromotionofgenderequalityrepresentsa meaningfulinvestmentinarobusteconomicfuture.TheMillennium ChallengeCorporation(MCC)iscommittedtotherealizationofgender equalityasameansofbolsteringeconomicgrowth.TheMCCdispenses foreignaidaccordingtoanapplicantcountrysperformanceagainstasetof indicators.Inthisreport,weassessthegendersensitivityoftheMCCs existingindicatorsandofferrecommendationsaimedatenhancingtheMCCs capacitytoencourageeconomicgrowththroughgenderequality.TheMCC requestedthatweconsiderindicatorsintheMCCsEconomicFreedomand InvestinginPeoplecategoriesspecifically. InSectionI,wereviewtheempiricalevidenceofarelationshipbetween genderequalityandeconomicgrowth.Togatherthisevidence,wereliedon recent,highqualityresearch,andweemphasizefindingsthatare particularlypertinenttolowincomeandlowermiddleincomecountries.We focusourreviewonfivebroadareas:marketparticipation,macroeconomic policies,landuse,healthservices,andeducation.Ineacharea,weidentify specificpolicyinstrumentsofgenderequalityandexaminethedegreeto whicheachinstrumentcontributestoeconomicgrowth. WeemploythefindingsreviewedinSectionItoinformourcritiqueof existingMCCindicatorsinSectionII.Weanalyzeeachindicatortodetermine whetherandtowhatdegreeitsmeasurementsaregendersensitive.Wealso assesseachindicatorsstrengthinencouraginglowincomeandlower middleincomecountriestopursuepoliciesthatpromotegenderequality. Specifically,weconsidergendersensitivityofdatacollectionandanalysis, genderequalityintermsofaccesstoandoutcomesofpolicies,andrelevance tothepolicyinstrumentsreviewedinSectionI. InSectionIII,weproposemodificationstosomeexistingMCCindicatorsand recommendsomenewindicatorsforMCCadoption.Foreachproposed change,webrieflyreviewhowthepolicyinstrumentpromoteseconomic growththroughgenderequality.Weprovideadetaileddescriptionofeach indicatorscalculationandidentifythesourceforrelevantdata.Finally,we assessthefeasibilityofimplementingeachpolicyinstrumentinlowincome andlowermiddleincomecountries.Specifically,weproposemodifications, aimedatenhancingthegendersensitivityofmeasurements,tofourexisting MCCindicators:BusinessStartUp,LandRightsandAccess,NaturalResource Management,andPrimaryEducationExpenditures.Additionally,we recommendfournewindicators:DomesticCreditMarket,Gender ResponsiveBudgeting,WomensHealth,andGirlsSecondarySchool EnrollmentRate.Together,ourproposedmodificationsandrecommended indicatorsimprovethegendersensitivityofMCCmeasurementsandbetter enabletheagencytopromoteeconomicgrowththroughgenderequality.

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INTRODUCTION
TheMillenniumChallengeCorporation(MCC),aU.S.federalagency, dispensesforeignaidtolowincomeandlowermiddleincomecountries whosegovernmentshaveademonstratedcommitmenttopromoting developmentwithintheircountries.TheMCCevaluatesapplicantcountries againstasetofindicatorstoidentifythecountriesinwhichforeignaidwill mosteffectivelycontributetopovertyreductionandeconomicgrowth.The MCCreliesondatabasesdevelopedandmaintainedbythirdpartiesto calculateitsindicators.TheMCCsortstheindicatorsintothreebroad categoriesRulingJustly,InvestinginPeople,andEncouragingEconomic FreedomspecifiedattheestablishmentoftheMCCbytheMillennium ChallengeActof2003.1 TheMCCreviewsitsindicatorsandassociatedmethodologyannuallyand implementschangesbasedontheresultsofthisevaluation.Thisyear,the MCChasdirectedthatsomeofthisevaluationshouldanalyzethegender sensitivityofitsmeasurestocomplywiththeorganizationsdirectiveto includeagenderedperspectiveinallstagesofpolicydesign,implementation, andevaluation.Specifically,indeterminingacountryseligibilitybasedon InvestinginPeople,theMillenniumChallengeActcallsforinvestmentsin thepeopleofsuchcountry,particularlywomenandchildren. 2 Thisstatutory mandate,alongwiththeMCCsGenderPolicydevelopedtobetter incorporateintothebroadcategoryofEconomicFreedomthenotionthat genderinequalitycanconstrainpovertyreductionandeconomicgrowth directstheorganizationtoencourageaidthatremovesimpedimentsto genderequality.Initsownworkandintheselectionoftheindicatorsit employs,theMCCstrivestoreducegenderinequalityand,insodoing, bolstereconomicgrowthinrecipientcountries. AttheMCCsrequest,weanalyzethegendersensitivityofcurrentand potentialindicatorsforuseinevaluatingapplicantcountries.Ouraimsare threefold:(1)toidentifywhichkeypolicyinstrumentspromoteeconomic growththroughgenderequality,(2)todiscernwhethertheindicatorsthe MCCemploysaresufficientlygendersensitiveandaccuratelyreflect investmentsingenderequality,and(3)toproposegendersensitive measuresornewgenderrelatedindicatorsfortheMCCtoconsider.Our reportisstructuredaccordingtothesethreeobjectives.Itisdividedintothe followingthreesections:GenderandEconomicGrowth:WhatDoWeKnow?, GenderandEconomicGrowth:MCCIndicators,andGenderandEconomic Growth:IndicatorRecommendations.

122U.S.C.7701 222U.S.C.7706(b)(3)

I.GENDERANDECONOMICDEVELOPMENT:WHATDOWEKNOW?
Althoughgenderequalityhaslongbeenrecognizedasasociallyimportant goal,achievinggenderequalitywasoncethoughttoentailsubstantialcosts andconstraineconomicgrowth(seeSmith&Bettio,2008).Recent scholarshiphasshiftedthisdiscoursebydemonstratingthatgenderequality infactconstitutesameaningfulinvestmentinarobusteconomicfuture.A substantialbodyofliteraturenowsuggeststhatbecausewomenpossess uniquestrengthsaswellasdistinctneedsandvulnerabilities,gender sensitiveapproachestoeconomicpolicymaybeessentialforeconomic development. Inthissection,wereviewtheempiricalevidenceofarelationshipbetween genderequalityandeconomicgrowth.Togatherthisevidence,wereliedon recent,highqualityresearchpublishedinacademicjournalsandreportsof theUnitedNations,WorldBank,andInternationalMonetaryFund(IMF).We focusourreviewonfivebroadareas:marketparticipation,macroeconomic policies,landuse,healthservices,andeducation.Withineachcategory,we identifyspecificinstrumentsofgenderequalityandexaminethedegreeto whicheachinstrumentcontributestoeconomicgrowth.Weconcentrateon evidencethatisespeciallypertinenttolowincomeandlowermiddleincome countries.Wheretheliteraturelacksconsensusontherelationshipbetween aninstrumentofgenderequalityandeconomicgrowth,weclarifywhether theevidenceisweak,mixed,orcontextdependent.Weconcludethissection withatableinwhichwesummarizefindingsforthe15policyinstruments reviewed. 3 ThisliteraturereviewinformsouranalysisoftheMCCsinclusion ofgendersensitiveindicators,thesubjectofthenexttwosectionsofour report.

A.MARKETPARTICIPATIONANDGENDEREQUALITY
Wefirstconsiderthebroadintersectionofgenderandthelaborforce.We notethatalackofaccesstochildcareconstrainswomenswagework.We discussbarrierstowomensbusinessownership,underentrepreneurship andcreditaccess.Finally,weconsiderthegenderdimensionsofeconomic growthintheagriculturalsector.

LaborForceParticipationandWages
Areviewoftheliteratureontherelationshipbetweengenderequalityin employmentandwagesandeconomicgrowthyieldsconflictingresults. Generally,theliteratureindicatesthatgenderequalityinemploymentand earningimpactseconomicgrowththroughthreebroadmechanisms:

3SeeTable1.PolicyOpportunities:EconomicDevelopmentThroughGenderEquality,page

21.

 allocativeefficiency,demographiceffect,andbargainingpowerofwomenin thehousehold. Genderinequalityinemploymentresultsinallocativeinefficiencyby artificiallyreducingthesupplyoflaboravailabletoemployers.Usingpanel datafrom1961to1991for16statesinIndia,EsteveVolart(2004)findsthat theratiooffemaletomalemanagersandtheratiooffemaletomale workersarepositivelyrelatedtototaloutputpercapita.Specifically,a10 percentincreaseinthefemaletomaleratioofmanagersimprovesper capitaoutputby2percent,whilea10percentincreaseinthefemaletomale ratioofallworkersexpandspercapitaoutputby8percent.Some researchersfindthatwomenarebettersuitedtocertainjobscomparedto men,whichhasimportantimplicationsforwomenswages.Forexample, GalorandWeil(1996)determinethat,asthecapitalperworkerincreases, womensrelativewageslikewiseincreasebecausecapitalismore complementarytowomenslaborinputsthantothoseofmen. Thereductionofgenderinequalityinemploymentandpaycanleadto economicgrowththroughthedemographiceffectthataccompaniesreduced fertility.GalorandWeil(1996)findthataswomensrelativewagesincrease, fertilityratesfall.Thisreducedfertilityinturnraisesthecapitalperworker, whichultimatelyleadstoincreasedoutputandhigherpercapitaincomes. Young(1995)calculatesthatthegrowthinthesupplyoflaborresultingfrom fallingfertilityratesandrisingfemalelaborforceparticipationrates accountsforabout0.6percentto1.6percentofannualpercapitalgrowthin thefourEastAsiantigereconomiesbetween1966and1990.Conversely, CavalcantiandTavares(2007)findthatwagediscriminationleadstolower outputpercapita,directlyduetoadecreaseinfemalelaborforce participationandindirectlythroughanincreaseinfertility. Aswomensemploymentandearningsincrease,theirbargainingpowerin termsofdecisionmakingwithinthehouseholdislikewiseenhanced(Klasen &Lamanna,2009).Thisimprovedbargainingpowercanleadtoeconomic growthinseveralways.First,itresultsinahigheraggregatesavingsrate becausewomenhaveagreaterpropensitytosavethandomen(Floro& Seguino,2002).Second,itleadstoincreasedinvestmentsinhealthand educationforchildren,allowingforfutureeconomicgrowth(WorldBank, 2001). Assuggestedearlier,ourreviewoftherelevantliteratureindicatesthat genderinequalityinemploymentandpaycanactuallycontributeto economicgrowth.Forexample,BleckerandSeguino(2002)findthathigh genderpaygaps,andspecificallylowfemalewages,enhancethe competitivenessofexportorientedsemiindustrializednations.Busseand Spielmann(2006)likewisedeterminethatgenderedwageinequalityis positivelyassociatedwithcomparativeadvantageinlaborintensivegoods.

 Nevertheless,inamorerecentstudy,Seguinoetal.(2010)acknowledgethat whilelowwagesforwomenmayincreaseprofits,investment,andexportsin theshortrun,thisinequalitywillharmthecountryslongrunproductivity andgrowth.Furthermore,BusseandSpielmann(2006)determinethat genderinequalityintermsoflaborforceparticipationdiscourageseconomic growth. Ourreviewoftheempiricalevidenceindicatesthatthecausalrelationship betweengenderequalityinemploymentandwagesisinconclusiveinthe shortrun.However,enhancinggenderequalityinemploymentandwages mayleadtoeconomicgrowthinthelongrunbyimprovingallocative efficiency,reducingfertilityrates,andincreasingtheintrahousehold bargainingpowerofwomen.

ChildcareAccess
Womenslaborforceparticipationisconstrainedbytheneedtocarefor youngchildren.Researchfindsthatthepriceofchildcarehasnontrivial effectsonwomensworkforceparticipationrates(Connelly,DeGraff,& Levinson,1996;Wong&Levine,1992).Whenamothercannotcommand highwagesandcannotrelyonfamilymemberstoprovidechildcare,sheis lesslikelytoengageinwagework.EmployingdatafromKenya,Lokshinetal. demonstratethatthehighcostsassociatedwithformalchildcarediscourage mothersfrompursuingwagework(Lokshin,Glinskaya,&Garcia,2004). EvidencefromTogo,Brazil,andGuatemalalikewiseconfirmsthatwomens laborforceparticipationisenhancedwhenlowcostchildcareoptionsare readilyavailable.Lessclear,however,iswhetherwomenswagesimproveas accesstochildcareexpands(Tabbert,2009;Hallman,2003;Deutsch,1998). SeveralcountriesinLatinAmericahavepilotedhomebasedchildcare programs,inwhichonemotherisresponsibleforthecareof1015 neighborhoodchildren.Thismodelisrelativelyinexpensiveforboththe governmentandparticipatingfamilies,allowsmotherstoenterthe workforce,andproduceslongtermpositiveeffectsforenrolledchildren (Attanasio&VeraHernandez,2004;Ruel,2002).Suchcommunity arrangementsandotherlowcostchildcareoptionshelptofacilitatewomens equalaccesstothelabormarket. Lackofaccesstochildcarelikewisedampensthesecondaryschool enrollmentratesofolder,femalesiblings.Whenamotheroptstoengagein wageworkbutlacksaccesstoaffordablechildcare,herdaughtersserveas substitutesforhomeproductionandcareofyoungerchildren(Lokshin, Glinskaya,&Garcia,2004).AdolescentgirlsinKenyaare41percentless likelytoattendsecondaryschoolwhenachildundertheageof3residesin theirhousehold(Deolalikar,1998).Insum,convincingevidencefindsthat theprovisionoflowcostchildcarenotonlyenhanceswomensaccesstothe labormarket,italsoimprovessecondaryeducationratesforgirls. 4

Entrepreneurship
Economicdevelopmentrequiresafunctioningprivatesector.The governmentplaysanimportantroleinfosteringavibrantbusinessclimate byminimizingunnecessaryregulationandensuringthatmarketsfunction efficiently.Thegovernmentsupportsmarketsbyprovidingalegal infrastructureandallowingentrepreneurstoeasilyjoinmarketsandconduct transactions.Asexplainedabove,anexpansionofwomensincome facilitatespovertyalleviation;itisthereforeproblematicthatwomen constitutetheminorityofregisteredbusinessowners(Boserup,2007). Womendo,however,appeartooftenfulfillanentrepreneurialrolein informalbusinesses(Charmes,2000).Despiteanapparentlinkbetweenan entrepreneursgenderandparticipationintheformaleconomy,wefoundno studiestosuggestthatlawsorregulationsregardingbusinessstartupand transactionsarethecauseofwomensexclusion(Ahl,2006). Intheory,genderinequalityinentrepreneurshipandinaccesstothe resourcesrequiredtostartabusinessleadstoallocativeinefficiency,whichin turnnegativelyimpactseconomicgrowth.However,literaturethatexamines theimpactofgenderequalityinentrepreneurshiponeconomicgrowthis limited,particularlyforlowincomeandlowermiddleincomecountries.In addition,thefewstudiesthatdoexistyieldinconclusiveresults.Bardasietal. (2007)suggestthatgenderspecificbarriersdohaveanadverseimpacton enterprisedevelopment,productivity,andcompetitivenessinAfrica.Onthe otherhand,someresearchersarguethatwomenaremorelikelytochooseto investtheirextraearningsontheirfamilyswelfareand,asaresult,women mayforgoopportunitiestoexpandtheirbusinesses.KevaneandWydick (2001)findthatfemaleentrepreneursdonothireasmanyemployeesasdo theirmalecounterparts(implyingthatwomenownedbusinessesarenot growingasfast)duringchildbearingyears.DeMeletal.(2009)reporthigher socialreturnsfromfemaleownedbusinessessupportedbymicrofinancethan fromsimilarmaleownedbusinesses.Basedonthecurrentlackofempirical evidence,itisdifficulttogeneralizewhetherandhowgenderequalityin entrepreneurshipcontributestoeconomicgrowth.

CreditAccess
Substantialliteraturedatingtothe1960sunequivocallydemonstratesthe imperativeoffunctioningcreditmarketsforeconomicgrowth(seeCarter, Waters,Branch,Ito,&Ford,2004).Creditminimizesthreecommon impedimentstoanefficienteconomy:riskconstraints,ortheabilitytoshare riskamonginvestors;liquidityconstraints,ortheabilitytomaintain sufficientcashflowsfordailyoperation;andsavingsconstraints,orefficient methodsofinvestingextracapital(Boucher,Barham,&Carter,2005). Recentmicroeconomicliteraturefocusesontheeffectsofcreditonborrower householdexpenditureandwealthandinparticularonwomenborrowers. Initially,twoeconomicrationalesexistedforofferingmorefinancialproducts 5

 towomen:1)womentraditionallywereexcludedfromconventionalcredit markets,and2)womenfacedsignificanteconomicbarriersthatcouldbe overcomethroughaccesstocredit.Theresultsofearlystudiessuggesteda thirdrationale:providingcreditaccesstowomenmayhaveagreatereffect onpovertyreductionthanofferingthesametomen(Morris&Meyer,1993; Besley,1995;Khandker&Chowdbury,2005).Accordingtooneestimate, aftereightyearswithcreditaccess,femaleborrowerscanbringtheirfamilies abovethepovertylineandsustainthemselvesthere(Khandker& Chowdbury,2005).Inaddition,someliteraturesuggeststhatcreditaccess enhanceswomensautonomyandaffectshouseholdfamilyplanning decisions(Amin&Li,1996;Amin,Becker,&Bayes,1998). Despiteanabundanceofrecentliteratureoncreditandgender,thereis reasontodoubtthegeneralizabilityofthefindings.Manyofthestudiesare fromnovelmicrocreditprogramsinSouthAsiaandmaynotbeapplicable worldwide.Moreover,someeconomistsarguethatincreasingcreditaccess towomenratherthantomenhasalargereconomiceffectbecausewomen aregenerallymorecreditconstrained(Berger,1999).Asaccesstocredit equalizes,somaythepositiveoutcomes(Morris&Meyer,1993).Empirical literaturesupportstheargumentforgenderequalityincreditaccessbuthas yettodemonstratethatwomenmeritpreferentialcreditaccess.

Agriculture
Improvementstoagriculturalmarketsgenerateparticularlyhighpayoffs. Substantialempiricalevidencedemonstratesthatimprovingagricultural outputshaslargeandsignificanteffectsonpovertyalleviation(Datt& Ravillion,1998;Irz,Lin,Thirtle,&Wiggins,2001).Studiesfindthatcountries thatlackafunctioningagriculturalsystemrarelydevelopsustainable economicgrowth(Ruttan,2002;Christiaensen&Demery,2007).Agriculture playsadualrole:asanindustry,itistheprimarysourceofincomeformore peoplethananyothersector;assustenance,itisinseparablefromthehealth ofsubsistencefarmersandthepeoplesmallcommercialfarmersfeed.Women arehighlyinvolvedintheagriculturalsector;indeed,inAfrica,womenare responsiblefor70percentofagriculturalproduction(Bruinsma,2003).

LiberalizingTraditionalGenderRoles
Tomaximizehouseholdincome,allmembersoughttopooltheirresources, regardlessoftraditionalgenderroles.However,empiricalstudiessuggest thathouseholdsdonotdefygendernormsinanefforttomaximize householdproduction.Forinstance,ifsowingistraditionallyamansjobbut hiswifeisthemoreefficientplanter,thespouseswillnottraderolessimply forefficiencyssake(Duflo,2005;Udry,1996).Incaseswhereculturalnorms ofagriculturalrolesareexogenouslyliberalized,perhapsduetoaneconomic ordemographicshock,householdsenjoylargeincreasesinagricultural productionthatresultinimprovedincomeandnutrition(Tibaijuka,1994). Yet,asgendernormsandagriculturalproductionprocessesvaryfrom 6

 countrytocountry,itisunlikelythatthefewavailablestudiesare generalizableworldwide.

EducationandExtension
Agriculturaltechnicalextensionandeducationrepresentsasuccessful methodforimprovingagriculturaloutputs(Birkhaeuser,Evenson,&Feder, 1991).Numerousstudiesdemonstratethatfarmerswithmoreformal educationandmanytechnicalandextensionproductshavehigher agriculturalproductivityandaremorelikelytoadoptnewtechnologies (Quisiumbing,1995;Lockheed,1980).Strengtheningwomenascommercial farmersmeritsattention,asevidenceindicatesthatimprovementsin womensincomeproducegreaterpositiveeffectsforchildrensnutritional andeducationaloutcomes(Thomas,1990;Kennedy&Peters,1992).Women arealsomorelikelythanmentoworkinsubsistencefarming(Posel&Casale, 2001;Pingali,1997).Subsistencefarming,oftenoverlookedinestimatesof production,hasalargerandmoredirecteffectonhouseholdnutritionthan doesproductionformarkets(DeWalt,1993). Despitetheevidencethatwomenfarmersareabetterinvestmentforpoverty alleviation,mostagriculturalextensionandeducationisprovidedtomen (Kandiyoti,2008;Mehra&Gammage,1999).Evidencealsosuggeststhat therearegenderlinkagestohouseholdtechnologyadoption(Morris&Doss, 2001).ResearchfromsubSaharanAfricashowsthatwomenprefer incrementaltechnologicalchange,grouprisktaking,anddifferentformsof pedagogythanmen(Morris&Doss,2001;Saito&Weidemann,1990).These findingsimplythatforeducationandextensiontobeeffective,projectsmust betailoredtotheintendedaudienceandmustconsiderthedifferent preferencesofmenandwomen.Althoughthebodyofliteratureongenderin agriculturalextensionandeducationisgrowing,culturalcontextconfounds currentfindingsandlimitsthedegreetowhichthesefindingscanbe generalizedacrosslowincomeandlowermiddleincomecountries.

B.MACROECONOMICPOLICIESANDGENDEREQUALITY
Althoughoftendifficulttoperceive,macroeconomicpolicyhasreal implicationsforindividualwellbeing.Inthepasttwodecades,asubstantial bodyofresearchhasclarifiedhowbroadmacroeconomicpoliciesdirectly affectparticulardemographicsofacountry.Weconsidergenderresponsive budgetingandtradepolicyspecifically.

GenderResponsiveBudgeting
Genderresponsivebudgetingentailstheincorporationofagendersensitive perspectiveintothedesign,development,adoption,andexecutionofall budgetaryprocesses.Genderresponsivebudgetingaimstopromote equitable,effective,andappropriateresourceallocationandestablish adequatebudgetaryallocationstosupportgenderequality(UnitedNations,

 1995).Becausebudgetssetforthagovernmentsprioritiesandthe commitmentoffinancialexpenditurestoachievethosepriorities,gender responsivebudgetinghasbeenrecognizedascentraltotheachievementof genderequality(UNFPA&UNIFEM,2006). Governmentbudgetsareassumedtobegenderneutralbecausetheyare generallypresentedinfinancialaggregates,withnospecificreferencesto menorwomen.However,recentstudiesdemonstratethatgenderinsensitive macroeconomicpoliciesproducedifferentimpactsonmenandwomen.For example,becausewomenusuallyearnlessthanmenandtheirworklivesare morelikelytobeinterruptedforfamilyrelatedmatters,womencontribute lesstowelfarefundsandthereforereceiveloweraveragesocialwelfare payments(Rubin&Bartle,2005).Rubin&Bartle(2005)alsofindthat reductionsingovernmentspendingonhealthcarearelikelytoincreasethe amountoftimethatwomenspendincarerelatedworktocompensatefor thelostpublicservices. Thegenderinsensitivityofmacroeconomicpoliciesnotonlyimpedes progresstowardgenderequalitybutalsoresultsininefficientbudgeting allocations,thushinderingeconomicgrowth.Byrecognizingandaccounting forgenderdifferentiatedneeds,genderresponsivebudgetingcontributesto improvedeconomicefficiencythroughbetterinformedfinancialallocations (Balmori,2003).Becausegenderresponsivebudgetingprovidesameansof assessingwhetherstatedobjectiveshavebeenachieved,itcanalsoproduce betterregulatoryqualitythroughincreasedgovernmenttransparency, accountability,predictability,andparticipation,whicharepreconditionsfor thesustainableeconomicgrowth(Rubin&Bartle,2005).Lastbutnotleast, inlightofpersistentinequalitiesintermsofhumanrights,including educationandhealth,genderresponsivebudgetingisapowerfulpolicy instrumenttosituatepeoplesrightsatthecoreoftheirpolicies(Rubin& Bartle,2005;Durojaye,Keevy,&Oluduro,2010).

TradePolicy
Strongevidencesuggeststhatopentradepoliciesareapreconditionfor economicgrowth(Pleskovic&Stern,2003).Tradepoliciesinherentlyalter theportfolioofindustriesimportanttoaneconomyandconsequentlyalter therelativepoweroffactionswithinthelaborforce.Assuch,tradepolicies cansignificantlyaffectthecreationoreliminationofinstitutionalized economicinequality(Goldberg&Paveenik,2004). Tradepoliciesaffectthenationaljobprofilewhilegendernormsinfluence thejobsavailabletomenandwomen(Goldberg&Paveenik,2004;Robbins, 1996).Ifaliberalizedtradepolicyincreasestheeconomicopportunityof menmorethanitdoesforwomen,thegenderedwagegapwillincrease.As outlinedabove,anincreaseinawomansincomeyieldsimproved educationalandnutritionaloutcomesforherchildrenmoresothandoesa 8

 similarincreaseinmensincome.Thus,tradepolicythatimprovesmens employmentratewhiledecreasingwomensemploymentratereduces investmentsinfamilywellbeingandundermineslongtermeconomic growth.Severalstudiesfindthatanincreaseintheavailabilityoflabor intensivemanufacturingemploymentprovidesthegreatestincreasein earningsforwomen(Menon&vanderMeulenRodgers,2009)andis thereforeapowerfulmeansofalleviatingpoverty.

C.LANDUSEANDGENDEREQUALITY
Below,wehighlightthegendereddimensionsoftherelationshipbetween propertyrightsandpovertyalleviation.Wealsoconsidertheeffectsof incorporatingagendersensitiveperspectiveintoinfrastructure developmentandenvironmentalmanagement.

PropertyRightsandAccesstoLand
Thecausallinkbetweenpropertyrightsandpovertyreductioniswell established.Genderequalityinpropertyrightsencompassesstatutory guaranteesandcustomarypracticesthatenablewomentoaccessland throughpurchaseorinheritance.Additionally,equalityinaccesstoland impliesthatwomenareabletoutilizetheirpropertyforpersonal,business, oragriculturalpurposes(Mak,2005). Propertyrights,particularlywhenbestoweduponwomenwholivewitha headofhouseholdman,correlatewithwomensincreasedparticipationin householdfinances.Whenwomencontrolhouseholdfunds,theytendto spendmoremoneyontheirfamilysfood,education,andhealthcarethan wouldtheirmalecounterparts(Grown,Gupta,&Pande,2005).This enhancedinvestmentinhumancapital,inturn,promoteseconomicgrowth. Theincreaseinhouseholdwealththatstemsfromgenderequalityin propertyrightsalsoallowsforexpandedinvestmentinlandorbusiness ventures.Householdwealthconsistingprimarilyofpropertyownershipis lessdependentonwagelabor;thus,aspecificbenefitofindependent householdwealthintheformofpropertyisagreaterresiliencytochangesin aregionorcountryseconomiccycles(WorldBank,2003).Thisoverall increaseinhouseholdwealthbasedonpropertyownershipleadstopoverty reduction.LandreformeffortsthatequalizedwomenslandaccessinIndia andthePhilippinesresultedinsignificantincomegrowthandincreased personalinvestment(Gersbach&Siemers,2010). However,maximalutilizationofthelandrequirescleardefinitionofthe propertysboundaries(maintainedthroughbureaucraticmeans)and statutorydevicestoenablethepropertyownertoeasilysecuretheproperty withoutexpendingadditionalresourcesondefense.Thevalueoflandthatis consideredsecureinitsownershipisreportedtobe3080percenthigher thanlandthatisinsecure(WorldBank,2003). 9

 Insum,genderequalityinpropertyrightsandlandaccesscanleadto economicdevelopment(Mak,2005).However,whereaccesstocreditor otherformalmarketsislacking,theeconomicbenefitsofpropertyrightsmay notbesufficienttooutweighthecostsassociatedwithgovernment maintenanceanddefenseofpropertyboundaries(Feder&Feeny,1991). Therefore,genderequalityinpropertyrights,whilecontributingtopoverty reductionandeconomicgrowth,isnotsufficientinandofitself.

InfrastructureDevelopment
Infrastructuredevelopment(includingwater,sanitation,transportation, energyprovision,andtelecommunications)hastraditionallybeenatop downprocessdominatedbytechnologicalconcerns,withlittlesocial engagement.Mostliteratureontherelationshipbetweeninfrastructure developmentandeconomicgrowthlacksagendersensitiveperspective. However,ithasbecomeincreasinglyapparentthatafailuretoprovide adequateandaffordableinfrastructurefacilitiesandservicesaccordingto genderdifferentiatedneedscanhavenegativeeconomicandsocial implications(Masika&Baden,1997).Belowweoutlinethemechanismsby whichafailuretoincorporateagenderperspectiveininfrastructure developmentcanimpedeeconomicgrowth. ResearchontheimpactofamicrohydroelectricityplantinSriLankashows strikingevidenceofgenderdifferentiatedperceptionsofinfrastructure services:mensawthebenefitsofelectricityintermsofleisure,qualityoflife, andeducationfortheirchildren;womensawitasprovidingthemeansfor reducingtheirworkload,improvinghealth,andreducinghousehold expenditures(Barnett,2000).Thisisaclearexampleofhowagenderbased divisionoflabor(inwhichwomenareresponsiblefordomesticneeds, includingwater,householdenergysupply,andsanitation)hasresultedin genderdifferentiatedneedsandpreferencesforinfrastructure. Genderrelateddifferencesinphysicalattributesrestrictwomensaccessto infrastructure.Masika&Baden(1997)demonstratethatwaterpumps, introducedtoprovidecleanwater,withhandlesdesignedforusebymen havefailedbecausewomenandchildren(theprincipalwaterbearersinthe community)areunabletooperatethem.Certainfeaturesofcultureand customalsoconstrainwomensaccesstoinfrastructure.Forexample,in Africa,becauseoftheimportancewomenplaceonsafety,security,and privacy,aswellasmensreluctancetoallowvehiclestobeusedforwomens tasks,womenareunderrepresentedintheownershipandoperationof motorizedandnonmotorizedvehiclesforthetransportationofagricultural goods(Amponsah,Turner,Grieco,&Guitink,1996). Womensrelativelyweakpropertyandeconomicrights(e.g.,accesstocredit) compoundwithinequalitiesinintrahouseholdrelationstoconstrain womensabilitytoaffordinfrastructurefacilitiesandservices(Doran,1990). 10

 Forexample,duetolimitedaccesstolandtitles,womenareoftenunableto securethecreditnecessarytomakeinfrastructureimprovements.Female headedhouseholdsareparticularlyvulnerableinlowincomecountries, wheretheycannotsecureloansforprivateinfrastructureimprovementsand publicfinanceisinadequatetoaddressallinfrastructureneeds. Gendersensitiveinfrastructuredevelopmentcanbenefittheeconomy throughlinkageswithenhancedaccesstocreditandmarkets,improved health,andgreatereducationalattainment.Infrastructuredevelopmentthat istargetedtowomensneedsreducesthedemandsonwomenstimefrom domesticresponsibilities.Thetimesavedcaninsteadbeinvestedinactivities thataremorebeneficialtotheeconomy(e.g.incomegeneratingactivities throughaccesstocreditormarkets),therebyimprovingoveralleconomic efficiency(Masika&Baden,1997).Grownetal.(2005)andMwanikietal. (2002)findthatimprovingtheaccessibilityandaffordabilityof transportationservicesincreaseswomensandchildrensuseofhealth services.GuioTorres&Taylor(2006)findthattakingwomensneedsinto accountwhenimprovingsanitationfacilitiesincreaseswomensuseofthese facilities,reducesviolenceagainstwomen,andmakesmaintenanceand cleaningtasksofwomeneasier.Furthermore,gendersensitivesanitation projectsimprovegirlsschoolattendance.Recognizinggenderdifferentiated needsandpreferencesforinfrastructureimprovesefficiencybyoptimizing theuseoflimitedfundsandhumanresources(GuioTorres&Taylor,2006). Insum,theincorporationofagendersensitiveperspectiveininfrastructure developmentcanbenefiteconomicgrowththroughavarietyofmechanisms. Still,withoutfundamentalgenderequalityinlandrights,economicrights, health,andeducation,infrastructuredevelopmentaloneisinsufficientfor economicgrowth.

EnvironmentalManagement
Whilepreservingtheenvironmentiswidelyrecognizedasanimportant aspectofsustainableeconomicgrowth,introducingagenderperspectiveinto thiscausalrelationshipisarelativelynewnotion.Preliminarylinkages betweengenderandtheenvironmentandtheimplicationsoftheselinkages forpovertyreductionhavebeenidentified.GuioTorres&Taylor(2006) estimatethat90percentoftheworlds1.1billionpoorrelyonthe environmentforatleastafractionoftheirincomethroughsmallscale farming,fishing,hunting,andcollectionoffirewood,herbs,orothernatural products.Inpoorhouseholdswherethegenderbaseddivisionoflaboris especiallypronounced,womenmeetdomesticneeds,includingwater,food, andsanitation.Therefore,womenaredisproportionatelyvulnerablewhen theenvironmentsuffers. Althoughthedirectbenefitsofintroducingagendersensitiveperspective intoenvironmentalmanagementhavenotbeenadequatelyexamined,the 11

 potentialmechanismsthroughwhichgenderequalityinenvironmental managementmayimpacteconomicgrowtharefairlyclear.Wesummarize thesemechanismsbelow. First,agendersensitiveperspectiveinenvironmentalmanagementhasthe potentialtosignificantlyaffectwomenshealth,safety,andwellbeing. Becauseofthegenderbaseddivisionoflabor,whentheenvironmentsuffers womenoftenstandtolosetheirlocalmeansofsubsistence;asaresult,they mayneedtotravellongerdistancestocollectneededenvironmentalgoods, thusfacinghigherlevelsofmental,economic,andsocialstress(Organisation forEconomicCooperationandDevelopment,2002;GuioTorres&Taylor, 2006).Scientificevidencedemonstratesthatwomenaregenerallymore vulnerabletochemicalpollutionthanmenbecausewomentendtohave higherpercentagesofbodyfat,whichtrapsenvironmenttoxins(United NationsEnvironmentProgramme,2005).Generally,becausewomenliveand workincomparativelyclosercontactwithnature,environmentalpollution canhaveamoresignificantimpactonwomenshealth. Second,themisalignmentbetweenthesupplyofresourcesandtheneedsand preferencesofwomen,theprimaryusersoftheseresources,canresultin diminishedhouseholdsupply,whichinturndecreaseseconomicefficiency andeventhreatensthehealthandwellbeingofallhouseholdmembers. ResearchbyDankelman(2005)findsthatwomensknowledgeofand interestinenvironmentalresourcesareoftenignoredinenvironmental managementdecisionmakinganddevelopmentplanning.Enhancing womensparticipationinenvironmentalmanagementcanresultinbetter technologyselection,earningsequityandcapacity,andenvironmental stewardship(GuioTorres&Taylor,2006).Theseimprovementsreducethe timewomenspendinresourcecollectionandincreasehouseholdaccessto essentialresources,leadingtogreatereconomicefficiency(Organisationfor EconomicCooperationandDevelopment,2002;GuioTorres&Taylor,2006; Lwanga,2001). Third,becauseofwomenscomparativelylimitedaccesstoeducation,their abilitytomakeinformedandsustainablechoicesisconstrained.Womens overexploitationofresourcesendangerstheenvironmentandthreatens economicgrowth(Skutsch,1996;Gurung,Thapa,&Gurung,2000; OrganisationforEconomicCooperationandDevelopment,2002;Clancy, 2003;GuioTorres&Taylor,2006).Atthesametime,womenappeartobe betterattunedtotheneedsoftheenvironmentandmorecommittedtoits protectionthanmen,providedwomenhaveaccesstothenecessary knowledgeandarepermittedtoparticipateindecisionmaking(United NationsEnvironmentProgramme,2005).Inthisregard,givingwomenequal accesstoknowledgeanddecisionmakinginenvironmentalresource managementcanbetterpreservetheresourcesneededforsustainable economicgrowth. 12

 Insum,agendersensitiveapproachtoenvironmentalmanagementcan benefiteconomicgrowththroughchannelssuchasimprovedhealth outcomes,increasedhouseholdsupply,andbetterconservationtechniques. However,moreresearchisneededtoestablishdirectlinksandfurtherclarify themechanismsconnectinggendersensitiveenvironmentalmanagement andeconomicgrowth.Gendersensitivityinenvironmentalmanagement doesnot,inandofitself,contributesignificantlytoeconomicgrowth.

D.HEALTHSERVICESANDGENDEREQUALITY
Weconsiderthreemechanisms(maternalhealthservices,reproductive healthservices,andearlydetectionandtreatmentofcervicalcancer)by whichgendersensitivehealthservicescanimprovemortalityandmorbidity ratesforwomen,guaranteethehealthandwellbeingoffuturegenerations, andcontributetoeconomicgrowth. Illnessorprematuredeathofamotherresultsinacuteeconomic repercussionsforherfamily,intheformofmedicalexpensesandlostincome. Womenarelikewiseresponsiblefornonincomegeneratingtasksthat ensurefamilywellbeing,includingfoodpreparationandfirewoodcollection. Givenamotherspivotalroleinsupportingtheeducationofherchildren, highratesofmaternalmortalitywilllikelyharmthenextgenerationsstock ofhumancapital.EvidencefromTanzanialendssupportforthisrelationship: childrenlivinginhouseholdsinwhichanadultwomanhasdiedinthepast 12monthsspendhalfasmuchtimeinschoolastheirpeerswhose householdshavenotexperiencedsuchadeathorwhereanadultmalehas died.Finally,lossofawomanslaborduetoillnessordeathaffectsthewider economy,aswomenareresponsiblefornearly75percentoffoodproduction inlowincomeandlowermiddleincomecountries(Tsu&Levin,2008). Incontrast,goodhealthisstronglyassociatedwithenhancedeconomic growth.Healthyworkersaremoreeffective,moreefficient,andbetterableto dedicatemoretimetoproductiveactivities(Balducci,Clements,Gupta,&Cui, 2004).Havingcalculatedthataoneyearimprovementinapopulationslife expectancyresultsina4percentincreaseinaggregateoutput,Bloomand colleaguesobserve:increasedexpendituresonimprovinghealthmightbe justifiedpurelyonthegroundsoftheimpactonlaborproductivity(Bloom, Canning,&Sevilla,2004).Agendersensitiveapproachpermitsforamore precisearticulationofthepreventativehealthservicesnecessaryforthe promotionofgenderequalityandeconomicgrowth.

MaternalHealthServices
Maternalhealthisimprovedthroughtheprovisionofaccessibleand affordableservicesthroughoutpregnancy,childbirth,andthepostpartum period.TheUnitedNationsPopulationFund(UNFPA)calculatesthatonly onehalfofwomenwhogivebirtheachyearreceiveanyformofmaternal healthcare.Ofthosewhodoreceivesomematernalhealthservices,many 13

 moredonotbenefitfromallessentialcomponentsincludingantenatalcare, deliveryassistance,andpostpartumcare(Singh,2009).Theprovisionof adequatematernalhealthserviceswouldprevent70percentofmaternal deaths,reducingtheannualincidenceofmaternalmortalityfrom360,000to 90,000peryear(WHO,UNICEF,UNFPAandTheWorldBank,2010). Furthermore,fewerwomenwouldsufferfromfistula,anoutcomeof obstructedlaborthatissociallyostracizingandcompels22percentof afflictedwomentobegforfood(Ahmed&Holtz,2007).TheU.S.Agencyfor InternationalDevelopment(USAID)estimatesthattheeconomicimpactof maternalandnewbornmortalityamountsto$15billionperyearinlost productivity(UnitedStatesAgencyforInternationalDevelopment(USAID), 2002).Thepreventionofmaternalmortalityandothercomplicationsof pregnancyandchildbirthpermityoungwomen,duringtheirmostproductive years,tocontinuetoserveasmothersandworkers. Akeycomponentofcomprehensivematernalcareistheprovisionof adequatenutrition.AstudypublishedinTheLancetin2008examinedthe healthandhumancapitalofindividualsborntomalnourishedmothers.The researchteamdeterminedthathealthatbirthisassociatedwithcrucialadult healthoutcomes,includingheight,bodymassindex,andsusceptibilityto chronicdiseasessuchasdiabetesandhypertension(Victora,2008). 4 Because heightandbodymassindexaffectproductivityinmanuallabor,children borntowellnourishedmotherswilllikelybenefitfromimprovedwork capacityasadults,asrecentstudiesfromGuatemalasuggest(Hass,1995). Birthweightispositivelyassociatedwithacademicachievement.Incontrast, poornutritionbeforeandimmediatelyfollowingbirthcancausestructural damagetothebrainandhaslikewisebeenshowntoimpairexploratory behavior,dampeningcognitivedevelopment.Furthermore,childrenwho experiencepoorfetalgrowthorstuntingaremorelikelytothemselveshave childrenwithdecreasedbirthweight(Victora,2008).Insum,inorderto ensurethehealthandproductivityoffuturegenerations,pregnantwomen mustbeequippedwiththeresourcesnecessarytobirthhealthy,well nourishedbabies.

ReproductiveHealthServices
Reproductivehealthservicesensurethatwomenarecapableofcontrolling thenumberandspacingoftheirchildren.TheUNFPAestimatesthat215 millionwomenwhowanttoavoidpregnancyareneverthelessnotusingan effectivefamilyplanningmethod(Singh,2009).Lowerfertilityrateshavea
4Althoughsuchchronicdiseaseswerepreviouslymostlyconfinedtoeconomically developedcountries,hypertension,obesityanddiabetesnowrankamongthemajorhealth problemsthreateningthedevelopingworld.Indeed,accordingtoarecentarticleintheNew EnglandJournalofMedicine,theprevalenceofhypertensionisalreadyhigherindeveloping thandevelopedcountries.Inthepast20years,obesityrateshavetripledindeveloping countries.By2030,thenumberofpeopleinthedevelopingworldwithdiabeteswillincrease from84millionto228million(Hossain,Kawar,&Nahas,2007).

14

 demonstrated,positiveeffectoneconomicgrowthinlowincomecountries (Bloom,Canning,&Malaney,2000).Infact,familyplanninghasbeendeemed oneofthemostcosteffectiveinvestmentsavailabletogovernmentsseeking toovercomeentrenchedpovertyandpromoteeconomicdevelopment(Singh, 2009).Lowerfertilityratesimplyalowerdependencyburden,whichpermits foranincreaseinpercapitaincomeevenifwagesandproductivityremain stagnant.Therefore,asthedependencyburdenfalls,therateofsavingsand investmentareexpectedtoincrease(Klasen,2002).Bloomandcolleagues attributeonethirdofEastandSoutheastAsiasrapideconomicgrowth duringthe1990stosubstantialfertilitydeclines,orwhattheydeemthe demographicdividend(Bloom,Canning,&Malaney,2000).Inthisway, guaranteeingwomenaccesstothereproductivehealthservicestheydesire willenhanceeconomicgrowth. Failingtoachieveuniversalaccesstomaternalandreproductivehealthwill renderotherdevelopmenttargetsunachievableaswell.Childhealthis closelyrelatedtoreproductivepatterns:whenpregnanciesoccurearlyor late,arenumerousorcloselyspaced,infantandchildmortalityratesare higher.DatafromBolivia,Guatemala,andPeruconfirmthatchildrenborn afterbirthintervalsof2429monthsare70to90percentmorelikelytodie beforeagefivethanchildrenbornafterintervalsof3641months(UNFPA, 2007).Evenwhenthesechildrensurvivetoadulthood,theirhealthmaybe compromisedandtheircontributionstoeconomicgrowthdampened. Womenwhoexperiencecloselyspacedbirthsfrequentlydiscontinue breastfeedingoftheolderchildearlierthanrecommended(Lindstrom& Berhanu,2000;Defo,1997).TheAmericanDieteticAssociationadvocatesfor exclusivebreastfeedingforthefirstsixmonthsoflife,followedby breastfeedingwithcomplementaryfoodsuntilatleast12monthsofage. Theseguidelinesareintendedtoensureoptimalhealthofthechildand motheraswellasreducehealthcarecosts(James,2009).Breastfeeding protectsinfantsfrominfectionandlowerstheirriskforcertainacuteand chronicillnesses.Thepreventionofchronicdiseases,includingdiabetes, hypertension,andobesity,impliesasubstantialsavingsinhealthcare expenditureandallowsforenhancedproductivity.TheWorldHealth Organizationhasfurtherdeterminedthatchildrenwhoarebreastfedas infantsoutperformtheirpeersonintelligencetestsanddemonstratebetter schoolingoutcomesthroughadolescence(Horta,2007).Researchershave confirmedthatpoornutritioninthefirstyearsoflifeisstronglyassociated withimpairedcognition,lessschoolingandreducedeconomicproductivity (Victora,2008),allofwhichimpedepovertyreductionandeconomicgrowth. Whenreproductivehealthcareislackingandfertilityratesarehigh, educationobjectivesareundermined.Childrenfromlargefamiliesmaybe deniedaneducationaltogetherortheirschoolingmaybedelayed, interruptedorshortened.Smallerfamilysize,incontrast,permitsfora greaterinvestmentintheeducationofeachchild.Amultiyearstudy 15

 conductedinlowincome,ruralcommunitiesreportsthattheintroductionof familyplanningservicesincreasestheeducationratesforgirlsby15percent andforboysby12percent(UNFPA,2007).Intheabsenceofsufficient reproductivehealthservices,thelikelihoodthatawomanwillfulfillherown educationalgoalsisdiminished.Specifically,anadolescentgirlwhoseneed forfamilyplanningservicesremainsunmetmayfindherselfunableto completehereducationduetoanunplannedpregnancy(Singh,2009).Inthis way,neglectingtoprovidereproductivehealthserviceswillonlyexacerbate thegenderinequalityinsecondaryschoolcompletionrates.

CervicalCancerScreenings
Anestimated300,000womendieeachyearfromcervicalcancer (Kankaranarayanan&Boffetta,2010).Ofthesewomen,morethan85 percentresideinlowincomeorlowermiddleincomecountries(Jamel, 2011).Disparitiesincervicalcancerriskandsurvivalratesreflectpoor accesstoscreeningservices,asevidencedbythefactthat80percentof cervicalcancerinthedevelopingworldisdiagnosedintheadvancedstages ofthedisease(Kanavos,2006;Kankaranarayanan&Boffetta,2010). Mortalityratesfromcervicalcancercouldbesubstantiallyreducedifwomen inlowincomeandlowermiddleincomecountrieswereaffordedaccessto earlydetectionandtreatmentservices.Efficientandcosteffective techniquesfordetectionofprecancerouslesionshavebeenidentifiedand successfullyimplementedinlowresourcessettings(Kankaranarayanan& Boffetta,2010;Jamel,2011).Mostrecently,astudyconductedinruralIndia foundthatasingleroundofscreening(usingthetechniqueofDNAtestingfor thehumanpapillomavirus)resultedina50percentreductioninthe incidenceofadvancedcervicalcancerandassociateddeaths(Jamel,2011). Theprovisionofcervicalcancerscreenings,asonecomponentof comprehensivegendersensitivehealthservices,promisestosubstantially reducethediseaseburdenandmortalityratesofwomeninthedeveloping world.Throughsustainedcontributionsashealthymembersoffamiliesand communities,thesewomenwouldsupporteconomicgrowth.

E.EDUCATIONANDGENDEREQUALITY
Wenowturntotheimpactofgenderequalityineducationoneconomic growthandpovertyreduction.Weconsiderbothprimaryandsecondary schoolandoutlinethemechanismsbywhichequalityineducation contributestoeconomicgrowth.

PrimaryEducation
Theeffectsofgirlsprimaryeducationoneconomicgrowthinlowincome andlowermiddleincomecountriesarewelldocumented,asevidencedby theMCCsinclusionofagirlspecificprimaryeducationindicatorinthe InvestinginPeoplecategory.Primaryeducationcompletionbygirls positivelycorrelateswithotherpolicyinstrumentsdiscussedabove:the

16

 market,withhigherwagesandincreasedlaborproductivity;landuse,with higheragriculturalproductivity;andhealthcare,withdecreasedmortalityfor bothmotherandchildandslowerpopulationgrowththroughlowerfertility rates(SchultzT.P.,1999;Psacharopoulos&Patrinos,2004;Subbarao& Rainey,1995) Althoughimprovingeducationcompletionratesgenerallybenefitsa developingcountry,specificallyincreasinggirlseducationratesismost beneficialforeconomicgrowth.Becausefewergirlsaresenttoprimary schoolandbecausegirlshavelowercompletionratesthanboys,UNICEFhas calculatedagendergapinprimaryschoolcompletionofmorethan10 percentagepointsbetweenboysandgirlsinlowincomeandlowermiddle incomecountries(Herz&Sperling,2004).Thisgapleadstoahigher marginalreturnforeducatingtheaveragegirlinthedevelopingworld;that is,duetogenderdisparityineducationalaccess,acountryseconomic growthispositivelyaffectedbyadditionalgirlseducation,whilethesame effectisnotfoundwitheducatingmoreboys(Knowles,2002).

SecondaryEducation
Theprovisionofcontinuededucationtoayoungwomanbeyondtheprimary levelsolidifiesthebenefitsassociatedwithaprimaryeducationintermsof reducedfertilityandimprovedhealthoutcomesforherchildren.Continued educationalsoconfersadditionalbenefitstothewoman,herfamily,andher society.Webeginbydescribingtheeconomicreturnsassociatedwithagirls secondaryeducation.Wethendetailthebenefitsofagirlssecondary educationintermsofpostponedmarriageandpregnancy,lowerfertility rates,protectionfromHIV/AIDS,reductioninmaternalandinfantmortality, andimprovedchildhealth.

ReturnsonInvestmentinGirlsSecondaryEducation
Genderequalityinsecondaryeducationallowsforeconomicgrowthby enhancingthecountrysstockofhumancapital.Enhancedlevelsofhuman capital,inturn,implyahigherreturnoninvestment.Byboostingacountrys investmentrate,genderequalityinsecondaryeducationpermitsfor economicgrowth(Klasen,2002).Thus,economicgrowthisachieveddirectly andindirectlyasaconsequenceofextendingsecondaryeducation opportunitiestogirls. Threeseminalstudiesdemonstratethesubstantialreturnsassociatedwith girlssecondaryeducation. 5 DollarandGattiestimatethata1percent increaseintheproportionofwomenenrolledinsecondaryschoolwill generatea0.3percentgrowthinannualpercapitaincome(Dollar&Gatti,
5Themostrecentestimatespresentedinthissectionarefrom2004.Inourreviewofthe

relevantliterature,theresultsofthesethreestudiescontinuetobecited,anditdoesnot appearthatupdatedestimatesareavailable.

17

 1999).Thiscontributiontoeconomicgrowthisdramaticconsideringthat mostlowincomecountriesgenerallyachieveonly3percentgainsinper capitaincomeeachyear(Herz&Sperling,2004).Psacharopoulosand Patrinos(2004)determinethatthereturnsonagirlssecondaryeducation exceedthereturnsenjoyedbyhermalecounterparts.Specifically,agirls secondaryeducationproducesan18percentreturnwhileaboyssecondary educationresultsina14percentreturn.Schultz(1999)likewisecalculates thatthereturnstoagirlssecondaryeducationfallbetween15and20 percent.Notsurprisingly,therateofreturnvariesamongandwithin countries;however,Schultzconcursthatthereturnsforfemalesgenerally surpassthereturnsformalestudents.Incontrast,thereturnsonaprimary educationareinfacthigherforboys(20percent)thangirls(13percent). Patrinos(2008)thereforecautionsthattherelativelylowreturnsonprimary educationmaydiscouragefamiliesfrominvestinginadaughtersschooling, unlessopportunitiestoattendsecondaryschoolarereadilyavailableand affordable.Thus,theprovisionofsecondaryeducationmayadvancethegoal ofuniversalprimaryeducationaswell. Anadditionalyearofsecondaryschoolwillincreaseagirlsfutureearning potentialby10to20percent,whilesecondaryschoolwillimproveaboys wagesby5to15percent(Psacharopoulos&Patrinos,2004).Thus,the observedgenderinequalityinsecondaryenrollmentratesappearsto contradicttheoptimalinvestment,fromtheperspectiveofthefamilyorthe societymorebroadly.However,DollarandGatti(1999)arecarefultonote thatnotallunderinvestmentingirlssecondaryeducationstemsfrom marketfailure;rather,societalpreferencesmaydictatethatonlyboys continueinschool.Similarly,AminandAlBassusi(2004)observethat culturalorreligiousnormsmaypreventwomen,educatedthroughthe secondarylevel,fromsubsequentlyenteringtheworkforce.Underthese circumstances,genderequalityinsecondaryeducationmaynotproducethe anticipatedeconomicoutcomesandtheefficacyofgovernmentinterventions willlikelybeconstrained.

MarriageandFertilityDecisions
Marriageandpregnancyoftenprecludewomenfromenteringthelabor marketorcompelwomentocurtailtheirwageworksubstantially.Fora womanwithasecondaryeducation,marriageandmotherhoodentaila higheropportunitycost,asherearningpotentialexceedsthatofherless educatedoruneducatedpeers(Mathur,Greene,&Malhotra,2003). Enrollmentinsecondaryschoolisassociatedwithadeclineintheratesof earlymarriageforgirls,definedasmarriedbeforeage18.Aglobalreviewof earlymarriagedeterminedthataprimaryeducationisinsufficientinthis regard(Grown,Gupta,&Pande,2005).Secondaryeducationlikewise reducestherateofpremaritalsexamongyoungwomen(Lloyd,2005).In Kenya,adolescentgirlswhoremaininschoolarefourtimeslesslikelytobe sexuallyactivethantheirpeerswhohaveexitedtheeducationsystem(Herz 18

 &Sperling,2004).Postponementofmarriageandmotherhoodallowsyoung womentoentertheworkforce,realizethereturnstotheinvestmentintheir education,andcontributeaswageearnerstoeconomicgrowthintheir communities. Womenwithasecondaryeducationnotonlydelaytheirfirstpregnancy,but alsodemonstratelowerfertilityratesoverall.SubbaraoandRainey(1995) presentamodel,basedondatafrom65lowincomeandlowermiddle incomecountries,thatsuggeststhatiftheproportionofwomenwitha secondaryeducationweretodouble,theaveragefertilityratewouldfall from5.3to3.9childrenperwoman.Reducedfertilityrateslikelyreflectthe findingthatwomeneducatedthroughsecondaryschoolaremore knowledgeableaboutspecificfamilyplanningmethodsandbetterequipped toaccesssuchservices(RoudiFahimi&Moghadam,2003).Asnotedinthe discussionofwomenshealthabove,lowerfertilityratesofferanopportunity forademographicdividend,includingimprovedpercapitaincome,higher savings,andenhancedeconomicgrowth.

ImprovedHealthOutcomesforMothersandChildren
Whenadolescentgirlsdobecomesexuallyactive,thosewhoremaininschool aremoreinclinedtousecontraceptives.Asaconsequence,girlsinsecondary schoolarelesslikelytoexperienceunplannedpregnancyanddemonstratea reducedriskforsexuallytransmittedinfections(Lloyd,2005).Inrural Uganda,girlswithasecondaryeducationarethreetimeslesslikelytobe HIVpositivethanthosewithoutaneducation(Herz&Sperling,2004).The differenceinZimbabweisevenmorestriking:adolescentgirlswhohave droppedoutofschoolaresixtimesmorelikelytobeHIVpositivethantheir counterpartswhoremaininschool.Additionally,womenwithasecondary educationexhibitlowerHIVinfectionratesforyearsaftergraduating (Gregson,Waddell,&Chandiwana,2001).PreventingthespreadofHIV/AIDS allowsforcostsavingsintermsofhealthcareexpenditureandenables womentocontinueintheirproductiverolesasmothersandworkers. Althoughwomenwithaprimaryeducationaremorelikelytoutilize maternalhealthservices,theeffectisconsistentlymorepronouncedfor womenwithasecondaryeducation(Grown,Gupta,&Pande,2005).Maternal andinfantmortalityratesareconsequentlylowerforthosewomenwhohave obtainedasecondaryeducation.Forexample,inEgyptchildrenof uneducatedmothersaremorethantwiceaslikelytodieaschildrenbornto motherswithasecondaryeducation(RoudiFahimi&Moghadam,2003).As noted,awomaneducatedthroughtheprimarylevelwilllikelyraisehealthier, bettereducatedchildren.Asecondaryeducationfurtherempowerswomen toaccesspublicservicesforherselfandherchildren,evenifsheisamember ofanindigenousorotherwisemarginalizedgroup.Additionally,asecondary educationappearstoemboldenwomentodefysocietalnorms,ifnecessary, inordertoguaranteeadequatehealthandeducationfortheirchildren 19

 (Grown,Gupta,&Pande,2005).Forexample,inIndia,womenwitha secondaryeducationareconsistentlyandsignificantlylesslikelytosharethe societalpreferenceforsons(Pande&Astone,2007).Throughoutmuchofthe developingworld,includingtheMiddleEast,NorthAfrica,SouthAsia,and SoutheastAsia,sonpreferenceresultsinthepoorhealthofgirlsrelativeto boychildrenandcontributestogirlsexcessmortality.Tosummarize,girls secondaryeducationresultsindelayedmarriageandpregnancy,lower fertilityrates,andimprovedhealthforbothmotherandchild. InTable1,weoutlinethe15policyinstrumentsdiscussedinSectionI.We summarizeresearchfindingsastowhetherandtowhatdegreethepolicy contributestoeconomicdevelopment.Wealsohighlighttherelationships amongthevariouspolicyinstruments.

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Table1.PolicyOpportunities:EconomicDevelopmentThroughGenderEquality
PolicyInstrument LaborForceParticipation andWages ChildcareAccess Entrepreneurshipin FormalEconomy Market CreditAccess: EqualityofAccess RelevantScholarship
Contradictoryevidence, especiallyintheshortrun Consensusonlabormarket participation;mixedonwages Lackofresearchlinkingbias togovernmentregulation Consensus

Impacton Development
Unclear ModeratetoBig Unclear Moderate

LinkageswithOtherPolicyInstruments
Fertilitydependentonemploymentandpayofwomen Girlssecondaryeducation,childrensacademicachievement, andchildrenshealthdependentonchildcare Participationinformaleconomylinkedtolaborforce participation,creditaccess,andtraditionalgenderroles Effectsmaximizedwithpropertyrightsandmarketaccess Preferentialcreditaccessincreaseseffectonimproved agriculturalmethods Effectsofchangesingendernormsmaximizedwithmarket access,education,andcreditaccess Effectivenessincreasedwithcreditaccess,marketaccess, infrastructure,andpropertyrights Environmentalmanagementaffectedbyeducationand extension Marketaccess,infrastructuredevelopment,environmental management,health,andeducationdependentongender responsivebudgeting Stronglinktolaborforceparticipationandwages

CreditAccess:Preferential Contradictory AccessforWomen Agriculture:Liberalizing TraditionalGenderRoles Agriculture:Education andExtension

SparseEvidence

Macroeconomics

21

Unclear

Small

Consensus

Moderate

GenderResponsive Budgeting TradePolicy

Consensus Stronglinktowomens income,unknownfinaleffect onpoverty

ModeratetoBig

Unclear

PolicyInstrument PropertyRightsand AccesstoLand LandUse Infrastructure Development Environmental Management HealthServices MaternalHealthServices ReproductiveHealth Services

RelevantScholarship
Consensusoneffect; applicabilitydependenton culturalnorms Sparseevidence

Impacton Development
Moderate

LinkageswithOtherPolicyInstruments
Propertyrightsdependentoncreditaccessandmarketaccess Propertyrights,marketaccess,andcreditaccess preconditionsforeffectoneconomicgrowth Healthcareandeducationdependentoninfrastructure Propertyrightsandinfrastructuredevelopmentpreconditions foreffectoneconomicgrowth Womenshealthdependentonenvironmentalmanagement Childhealthand academicachievementdependenton maternalnutrition Childhealth,schoolingopportunities,andacademic achievementdependentonreproductivehealth Adolescentgirlsschoolingdependentonreproductivehealth Notapplicable Wages,laborforceparticipation,fertilityrates,maternal mortality,andagriculturalproductivityaffectedbyprimary educationcompletion Primaryschoolenrollmentperhapsdependentonsecondary schoolopportunities Womenswages,timingofmarriage/motherhood,fertility ratesandHIV/AIDSinfectionrates,maternalhealthandchild health,andchildrensschoolingopportunitiesdependenton secondaryeducation

Moderate

Sparseevidence Consensus Consensus

Small Big Big Moderate Moderate

Education

22

CervicalCancerScreenings Consensus PrimaryEducation

Consensusongeneral educationeffects;unclearon primaryeducationonly

SecondaryEducation

Consensus

Big

Source:AuthorsAnalysis

II.GENDERANDECONOMICDEVELOPMENT:MCCINDICATORS
Havingreviewedtheempiricalevidenceontherelationshipbetweengender equalityandeconomicgrowthinSectionI,wenowassessthegender sensitivityoftheexistingMCCindicators.Weclassifytheindicatorsfromthe MCCsEconomicFreedomandInvestinginPeoplepolicycategoriesintothe samefivebroadareasusedinSectionImarketparticipation, macroeconomicpolicies,landuse,healthservices,andeducation.Weanalyze eachindicatortodetermineifitsmeasurementsaregendersensitive.We alsoassesseachindicatorsstrengthinencouraginglowincomeandlower middleincomecountriestopursuepoliciesthatpromotegenderequality. WeemploymodifiedcriteriadevelopedbytheUnitedNationsDevelopment Programme(UNDP)andUnitedNationsDevelopmentFundforWomento createamatrixforconsistentevaluationofeachindicator(Corner&Repucci, 2009).Specifically,weconsidergendersensitivityofdatacollectionand analysis,genderequalityintermsofaccesstoandoutcomesofpolicies,and relevancetothepolicyinstrumentsreviewedinSectionI.Weconcludethis sectionwithatableinwhichwepresenttheanalysismatrixforthe11MCC indicatorsreviewed. 6 Thisanalysisinformsourfinalsection,inwhichwe offerrecommendationsforenhancingthegendersensitivityofexisting indicatorsandproposesomealternativepolicymeasures. 7

A.MARKETPARTICIPATIONANDGENDEREQUALITY
First,weassesstwooftheMCCsindicatorsofEconomicFreedomthat broadlyrelatetomarketparticipation,namelyRegulatoryQualityand BusinessStartUp.

RegulatoryQuality
TheRegulatoryQualityindicatoraimstomeasuregovernmentcapability andcommitmenttoformulateandimplementpolicythatpromotesahealthy privatesector.Incontrasttoindicatorsthatdirectlymeasureasingle phenomenon,theWorldBanksWorldwideGovernanceIndicatorsfor RegulatoryQualityservesasaclearinghouseof19separateindicators ofagovernmentsregulatoryqualityanditssuccessincreatingaclimate conducivetobusiness.

Data
Eachofthe19measuresintheWorldwideGovernanceIndicatorsfor RegulatoryQualityisbasedononeormoresurveysofpublicperceptions ofgovernmentalregulationpolicy.Anyindicatorthatbasesitsfindingson
6SeeTable2.GenderSensitivityofCurrentMCCIndicators,page37.

relationshiptoeconomicgrowth,seeGuidetotheMCCIndicatorsandtheSelection Process(MillenniumChallengeCorporation,2011).

7Foradetailedexplanationofindividualindicators,including,source,methodology,and

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 publicperceptionriskslosinglegitimacyifitdoesnotsamplefrommen andwomenequally.AlthoughthemajorityofWorldwideGovernance Indicatorssurveysdosamplemenandwomenequally,nosurveysappear todisaggregatedatabysex.Noneofthesurveysappeartodiscussgender issuesastheyrelatetobusinessregulation.

Policy
Thegoalofmonitoringregulatoryqualityistoensurethatgovernments placeminimalconstraintsonprivatebusinessesandintervenewhenmarkets fail.Here,genderequityofaccessincludesensuringthatanyregulatory burdenfallsequallyonmenandwomenandthatattemptstoaddressmarket failureconsiderbothmaleandfemalemarketactors.Thepervasivenessof regulationmakesensuringitsgendersensitivitypivotal;thecurrent RegulatoryQualityindicatorisweakinthisregard.

Relevance
GivenourfindingsinSectionIontheimportanceofgenderequalityinlabor forceparticipation,accesstopropertyrights,accesstocreditmarkets,and agricultureparticipation,genderequalityinregulationofthesevarious marketsishighlyrelevant,particularlygiventheimpactregulationcanhave ongenderequalityintheregulatedsystems.Therefore,enhancingthegender sensitivityoftheRegulatoryQualityindicatorwouldhelptoidentifyother potentialgenderbasedlimitationstoeconomicgrowthinthesesystems.

BusinessStartUp
TheBusinessStartUpindicatormeasuresthetimeandcostassociatedwith startingandformallyoperatinganindustrialorcommercialbusiness.The BusinessStartUpindicatoriscomposedoftwovariablesobtainedfromthe InternationalFinanceCorporations(IFC)DoingBusinessSurvey.Thefirst variablemeasuresthenumberofdaysrequiredtocomplywithofficially mandatedprocedurestostartandoperateabusiness.Thesecondvariable measuresthecostofstartingabusinessasapercentageofacountrysper capitaincome.TheMCCnormalizestheformervariabletocreatethe compositeBusinessStartUpindicator.

Data
SincetheIFConlyrecordstheproceduresthatareofficiallyrequiredtostart andoperateabusiness,onewouldnotexpecttoobservedifferencesintime andcostbasedonthegenderofthebusinessownerandhenceitisnot possibletoobtainsexdisaggregateddata.However,ifinequalityexists betweenmenandwomenintermsofowningandoperatingbusinesses,the datacollectionandanalysiswouldbemoreeffectiveifitaccountedforthis genderinequality.Indeed,arecentstudybytheWorldBankfindsthatofthe 128countriesexaminedwithrespecttoequalityintermsofbusinessandlaw, 20countriestreatmenandwomenequally(InternationalBankfor 24

 ReconstructionandDevelopment/WorldBank,2010).Accordingtothereport, inequalityismorepronouncedinsomecountriesthaninothers.Forexample, amarriedwomanmustobtainauthorizationfromherhusbandbeforesigning acontractorstartingabusinessintheDemocraticRepublicofCongo.Similarly, inNigeriaitisillegalforwomentoworkatnightinagricultureor manufacturing.TheBusinessStartUpindicatorinitspresentformisunableto accountforthesegenderinequalitiesinbusinessownershipandoperation.

Policy
Acloserexaminationofthecriteriausedtoclassifyanentityasabusiness bytheIFCsuggeststhatthesecriteriamayberestrictiveandmayinducea genderbiasintotheBusinessStartUpindicator.Someofthecriteriausedby theIFCthatmayinducegenderbiasarediscussedbelow.8 Requiringthebusinesstooperateinthecountryslargest businesscitymayproducegenderbiasifonegenderismore likelytoengageinbusinessactivityinaruralsetting. Requiringthestartupcapitaltobeatleast10timesthe incomepercapitamayresultingenderbiasifbusinesses ownedbyonegendertendtohavelowerinvestedcapital.The requirementthattheinvestedcapitalbeincashfurther exacerbatesthisbias. Requiringthenumberofownerstobeatleastfivemayresult ingenderbiasifonegenderismorelikelytoformasmaller business.Similarly,requiringthenumberofemployeestobe between10and50mayproducegenderbiasifonegenderis morelikelytoengageinsmallerbusinesses. Requiringtherevenuetobeatleast100timestheincomeper capitaofthecountrymayinducegenderbiasifonegenderis morelikelytobeengagedinsmallerbusinesses. Basedonthecriteriausedtoclassifyanentityasabusiness,itissafeto concludethattheBusinessStartUpindicatorfailstocapturethecostand timeassociatedwithstartingandoperatingabusinessthatissmalland/or rural.Ifonegenderismorelikelytoengageinthesetypesofbusiness activities,thenthisindicatorwillsufferfromgenderbias. Bruhn(2009)findsthatwomenownedbusinessestendtohavefewer employees,lowersales,lowerinvestedcapital,andlowerprofit.This suggeststhattheBusinessStartUpindicatordisproportionatelyexcludes businessestypicallyownedbywomenasaresultofitsrestrictivedefinition ofabusiness.Therefore,womendonotenjoyequitableaccessunderthe BusinessStartUpindicatorandthisinequitableaccesswilllikelyleadto inequitableoutcomes.
8AdetailedlistofalltheassumptionsmadebyInternationalFinanceCorporationregarding

abusinessisincludedinAppendixA.

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Relevance
InSectionI,wehighlightedthatgenderequalityinemploymentandwages, entrepreneurship,andcreditaccessgenerallyhasthepotentialtocontribute toeconomicgrowth.Inlightoftheseconsiderations,modifyingthegender sensitivityoftheBusinessStartUpindicatorwouldlikelyenhanceits effectiveness.Specifically,thisindicatorneedstobemodifiedtoaccountfor theconstraintswomenfaceintermsofstartingandoperatingabusiness.In addition,thedefinitionofabusinessmustbealteredtoensurethatwomen ownedbusinessesenjoyequitableoutcomesofbusinessstartuppolicy.

B.MACROECONOMICPOLICIESANDGENDEREQUALITY
Below,weevaluatetheMCCsEconomicFreedomindicatorsthatrelateto macroeconomicpolicies:TradePolicy,Inflation,andFiscalPolicy.

TradePolicy
TheMCCscurrentTradePolicyindicator,whichusestheHeritage FoundationsTradeFreedomindicator,measuresgovernmenteffortsto minimizetariffsandnontariffbarrierstotrade.Thischoiceofindicatoris basedonthenotionthatbarrierstofreetradelimitaneconomysabilityto interactwithworldmarketsinawaythatpermitittogrowthroughexports andenjoythereducedpricesthatimportsbring.However,theTrade Freedomindicatorisnottailoredtothecontextoflowincomeandlower middleincomecountriesandhighmarksmaydisproportionatelyburden womenandpoorpeople.

Data
Theindicatorprimarilyconsistsofarankingoftradeweightedtariffrates. Additionally,theHeritageFoundationusesdiscretiontoloweracountrys scorebasedonitsnontariffbarriers.Asamacroeconomicmeasurement,the indicatorisbasedonproductsandtariffrates;itcontainsnodirectformof genderbiasinitsdatacollection.

Policy
Asameasureoftradeliberalization,theTradePolicyindicatorleaveslittle wanting.Theindicatortransparentlyandobjectivelydescribesone componentoftradepolicy.However,bymeasuringtarifflevelsexclusively, theindicatorsacrificesnuanceandrelevancetodevelopingcountriesfor objectivity.Theindicatorplacesequalweightonalltradedgoodsandignores thevaryingimportanceofdifferentgoodstopovertyalleviation.Forexample, GuatemalasexportstotheUnitedStatesincludedanequalvalueofjewelry andsoybeanslastyear(U.S.CensusBureau,2010).Whileatariffonjewelry wouldhaveamuchsmallereffectonGuatemalaseconomicgrowthand povertyalleviation,atariffoneitherwouldhavethesameeffectonthe indicatorsvalue.

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 TheTradeFreedomindicatorignoresthedifferentbasketsofgoodsof differenthouseholdspoorandnonpoor,femaleheadedandmaleheaded. Amoregendersensitiveindicatorwouldweightheimportanceoftrade barriersbytherelativeimportanceoftheproducttopoorhouseholdsand particularlypoor,femaleheadedhouseholds.

Relevance
Thecurrentindicatormeasuresinputsintotradepolicy(i.e.,specifiedtariffs) butnottheoutcomesofaneffectivetradepolicy:increasedaccesstojobsand reducedpricesonconsumptiongoodsforthemajorityofacountrys residents.AsweindicatedinSectionI,tradepolicyisrelatedtogender equalityinemploymentopportunities.Additionally,thebasketofgoodsin whichpricesarereducedwillaffectmenandwomenindistinctways,given theirdistinctrolesandneeds.Amoregendersensitivetradeindicatorwould considertheseoutcomes.

Inflation
TheMCCfocusesoninflationasanindicatorofsustainablemonetarypolicy. Soundmonetarypolicyisnecessaryformacroeconomicstability.Excessive inflationisalsoaconcernbecauseitdisproportionatelyhurtsthosewith limitedassets(Easterly&Fisher,2001).TodeterminetheInflationindicator, theMCCreliesonmacroeconomicdatatheIMFpublishesregularly.

Data
Duetothenatureofmacroeconomicdata,collectionisnotgendersensitive (norinsensitive).

Policy
Althoughprudentfiscalmanagementisintheinterestofmenandwomen, someevidencesuggeststhatattemptstominimizeinflationrateshavea disproportionateeffectonwomen.Nationaleffortstoreduceinflation typicallyresultinmoderateshorttermdecreasesinemployment.Womens employmentlevelsdecreasemorethanmensintheseperiods,resultingina disproportionateburdenonwomen(Braunstein&Heintz,2006).Insum, whileminimizinginflationisimportant,doingsoexclusivelymayproduce genderbiasedresults.Giventhepotentialnegativeeffectsofcontractionary inflation,alternativemeasuresareworthconsidering.

Relevance
Contractionaryinflationpolicieslowerwomenslaborforceparticipation.As discussedinSectionI,increasedfemalelaborforceparticipationalleviates povertyandimproveshouseholdeconomicgrowthtoagreaterextentthan increasedmalelaborforceparticipation.

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FiscalPolicy
Chronicfiscaldeficitsinlowincomeandlowermiddleincomecountriescan resultinfearsofinflationandharmexchangerates.Byminimizingtheriskof macroeconomiccrisesandencouragingresponsiblepublicexpenditures, fiscalpolicyremainsanimportantcomponentofeconomicdevelopment.The MCCreliesontheIMFsWorldEconomicOutlookdatabasetocalculatethe FiscalPolicyindicator.

Data
TheMCCmeasuresprudentfiscalmanagementasathreeyearaverageofnet governmentlendingandborrowingasapercentofgrossdomesticproduct (GDP).Aswithothermacroeconomicindicators,thereisnocleargender dimensiontomeasurementtobeaddressed.

Policy
Thereisnoobviousgenderdimensiontotheimpactormeasurementoffiscal deficits.Thus,genderequalityintermsofaccesstoandoutcomesofpolicies associatedwiththeexistingindicatorisnotaconcern.Nevertheless,byonly focusingondeficits,thisindicatorisinsulatedfromotherimportantfiscal policyissues.Itwouldbeappropriatetoseekanindicatorthatconsiders equityofaccesstopublicdollarsthroughgenderresponsivebudgeting.

Relevance
Fiscalpolicynotonlyreferstotherelativemagnitudeofrevenuesand expenditures,butalsotoacountrysbudgetscomposition.Thecurrent FiscalPolicyindicatoronlyreflectstheformer.Amoregendersensitive indicatorwouldconsiderhowagovernmentsbudgetaryallocationsaffect menandwomenindistinctways.AswehighlightedinSectionI,gender responsivebudgetingconsidersgovernmentalservicesthroughagender sensitivelensandhelpstoidentifyhowgenderbiasinserviceprovision hinderseconomicgrowthandpovertyalleviation.

C.LANDUSEANDGENDEREQUALITY
TheMCCemploystwoindicatorsrelatingtolanduse:LandRightsandAccess undertheEconomicFreedomcategory,andNaturalResourceManagement undertheInvestinginPeoplecategory.Weconsiderthegendersensitivityof thesetwoindicatorsbelow.

LandRightsandAccess
ThecurrentLandRightsandAccessindicatorisbasedonacountrys institutional,legal,andmarketmechanismsandmeasurestheextentto whichthesesystemsallowforsecureandequitablelandusebyitsresidents. UsingdatafromtheInternationalFundforAgriculturalDevelopment(IFAD) andtheIFC,thisindicatorequallyweightsaccesstorurallandandthedays

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 andcostsrequiredtoregisterpropertyinperiurbanareas,measuredasthe urbanareasincludingandsurroundingcapitalcities.

Data
Thisindicatorismoderatelysuccessfulinincorporatingassessmentsof genderequalityintoitsexistingframework,withitsruralpropertymeasures greatlysurpassingtheperiurbanmeasuresintermsofgendersensitivity. Thedataonrurallandaccess,whichaccountfor50percentoftheoverall indicator,includeasoneoffivecomponentsameasureoflegalguaranteesto securelandaccessforwomenandothervulnerablegroups.Twoadditional measuresofrurallandaccessconsideracountryslandmarketandits successinregisteringandtitlingland.Thesearetwohurdlestolandsecurity thatoftendisproportionatelyaffectwomen,particularlyincountrieswith establishedculturalpropertynorms(WorldBank,2003).Thesemeasuresof rurallandaccesshavethepotentialtocapturewhetherwomensproperty rightsareadequatelyprotected;however,becausethedataforthese measuresarenotsexdisaggregated,athorough,gendersensitiveanalysis mayprovedifficult. TheotherhalfoftheLandRightsandAccessindicator,whichmeasuresthe daysandcostsrequiredtoregisterpropertyforbusinessuseinperiurban areas,demonstratesnogendersensitivityinitsdatacollectionoranalysis.

Policy
TheLandRightsandAccessindicatorsucceedsinitsmeasurementofgender equalityinrurallandaccessbutfailstoincorporategendersensitivemeasures forperiurbanlandaccess.Theindicatorincorporatessomemeasuresthat relatetooutcomeequality,namely,theabilityofanindividualtoaccessland marketsandtoutilizeofficiallandregistrationsystems.However,other significantfactors(i.e.,marketaccessandcreditaccess)thatalsodetermine outcomeequalityintermsoflandrightsarealreadyincludedinother indicatorsandprobablyshouldnotbedoublecountedintheLandRightsand Accessindicator.

Relevance
InlightoftheresearchcitedinSectionIestablishingthatgenderequalityin propertyrightscansignificantlyaffectacountryseconomicdevelopment(in particular,throughpovertyalleviationforfemalepropertyowners),the gendersensitivityofthisindicatorishighlyrelevanttothebroadgoalof usinggenderequalitytoachieveeconomicgrowth.Thecurrentindicatorisa qualifiedsuccessinincorporatinggenderconcerns.

NaturalResourceManagement
TheNaturalResourcesManagement(NRM)indicatorseekstomeasure nationallevelsustainability,resilience,andvulnerability.Specifically,the

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 NRMindicatormeasuresecoregionprotection,accesstoimproved sanitation,accesstoimprovedwater,andchildmortality.Dataforthis indicatoraremadeavailablethroughColumbiaUniversitysCenterfor InternationalEarthScienceInformationNetworkandtheYaleCenterfor EnvironmentalLawandPolicy.

Data
GivenourdiscussioninSectionI,itisapparentthatthefourmeasures includedintheNRMindicatorcoulddisproportionatelyaffectwomen. However,thedataarenotdisaggregatedbysex,whichmakesitdifficultto analyzetheindicatorsimpactinagendersensitivemanner. GenderequalityinNRMcannotbeeffectivelymeasureduntilreliablesources ofsexdisaggregateddataaremadeavailable(Dankelman,2003;Schultz, Hummel,&Empacher,2001).Problematically,however,thereislittle consensusonhowaccesstoandoutcomesofNRMservicesshouldbe measuredandwhichtypesofdatashouldbecollected.Currently,estimates ofgenderequalityintheoutcomesofNRMrelyonproxies,suchaspoverty, education,health,anddecisionmaking/policyformation,forwhichsex disaggregateddataareavailable(Akiyode,2010).Measuringthegendergap inaccesstoNRMservicesdirectlyischallengingbecausebaselinesurvey dataregardinggenderdifferentiatedneeds,perceptionsofproblemsand solutions,andintensityofusearegenerallynotavailableonanationalscale (Schultz,Hummel,&Empacher,2001).

Policy
TheNRMindicatorisrelativelystrongerinmeasuringaccesstoservicesbut failstomeasurewhethermenandwomenenjoyequalityinspecificpolicy outcomes.ThreeofthefourmeasuresthatconstitutetheNRMindicator (namelyecoregionprotection,accesstoimprovedsanitationandaccessto improvedwatermeasureaccess)measureaccesstoservices;onlyone indicator(childmortality)measuresoutcomes.Furthermore,becausethe childmortalityindicatorisnotsexdisaggregated,itcannotcaptureagap betweengirlsandboys. Alackofsexdisaggregateddataimpedesagendersensitiveassessmentof NRMpolicyoutcomes.Sexdisaggregateddatawoulddemonstrategender differentiatedsocioeconomicchangesandwouldfacilitatetheformulation ofefficientgendersensitiveNRMresponses(e.g.,projects,programs,and policies).Furthermore,sexdisaggregateddatawouldhelptoensurethat genderismainstreamedthroughoutthemonitoringandevaluationprocess ofrelevantNRMresponses(e.g.,assessingtheprogressmadetowardtheUN MillenniumDevelopmentGoalofgenderequalityintheareaofNRM)(Food andAgricultureOrganization,2003).

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 Insum,theNRMindicatorismoderatelysuccessfulinguaranteeingequality ofaccessbutfailstoholdgovernmentsaccountableforensuringgender equalityintheoutcomesofNRMpolicies.

Relevance
InSectionI,weidentifiedthreechannelsthroughwhichagendersensitive approachtonaturalresourcesmanagementcanimproveeconomicgrowth: namely,betterhealthoutcomes,economicandsocialempowermentthrough increasedsupplyofhouseholdresources,andbetterconservationtechniques througheducationandoutreach.ThecurrentNRMindicatormainlycaptures themechanismregardinghealthandwellbeing;theindicatordoesnot incorporatemeasuresofotherimportantprocessesthatarealsohighly relevanttonaturalresourcesmanagement,suchasempowermentand education.Specifically,womensparticipationinNRMdecisionmaking providesachannelfortheirvoicestobeheardandtheirneedstobe addressed.Additionally,womensparticipationineducationaloutreachand knowledgesharingactivitiesenablesthemtomakeenvironmentallysound decisionsandfurtherempowersthemsociallyandpolitically.Anindicator thatneglectstomeasurethesetwocriticalgenderresponsiveprocesses cannoteffectivelyevaluatethegendersensitivityofNRMpolicyresponses.

D.HEALTHSERVICESANDGENDEREQUALITY
Next,weassessthegendersensitivityoftheMCCsInvestinginPeople indicatorsthatpertaintohealth:ImmunizationRatesandHealth Expenditures.

ImmunizationRates
TheImmunizationRatesindicatorisintendedtoproxyagovernments commitmenttoprovidingpublichealthservicesandpreventingchild mortality.Indeed,immunizationcampaignsarecriticalforreducingchild deaths:eachyear2.5millionchildrenslivesaresavedastheresultof immunizationforavaccinepreventabledisease(UNICEF,2010). Immunizationsrepresentacosteffectivestrategyforensuringthehealthand productivityoffutureworkersand,inthisway,contributetoeconomic growth.TheImmunizationRatesindicatorreliesonestimatesof immunizationcoveragepublishedbytheWorldHealthOrganization(WHO) andtheUnitedNationsChildrensFund(UNICEF).

Data
Immunizationcoverageiscalculatedasthenumberofdosesadministeredto thetargetpopulationdividedbythetotalestimatednumberinthetarget population.TheWHOandUNICEFsupplementadministrativedatawith contributionsfromlocalexpertsandconsiderationofpotentialbiasesto determineanaccurateestimateofimmunizationcoverage(Grown,Gupta,& Pande,2005).Dataofimmunizationadministration,asreportedbytheWHO 31

 andUNICEF,arenotdisaggregatedbysex.Becausesexdisaggregateddata arenecessaryforgendersensitiveanalysis,suchananalysisisnotfeasible.

Policy
Countrycasestudiesrevealthatgirlsdonotenjoyequitableaccessto immunizations.GirlsinPakistanaresubstantiallylesslikelythanboysto havereceivedthediphtheriapertussistetanus(DPT3)vaccine:while62 percentofboysareimmunized,thecoveragerateis55percentforgirls (UNICEF,2010).InIndia,thelikelihoodthatagirlwillbeimmunizedwiththe DPT3andmeaslesvaccinesis5percentagepointslowerthanthatforboys (Borooah,2004).Similarly,casestudiesinZambia(Pillai&Conaway,1992) andBangladesh(Chowdhury,2006)findthatfemalechildrenarelesslikely tobeimmunized. Immunizationcampaignsaimtoreducechildmortalityratesandguarantee thehealthandproductivityofthefutureworkforce.Duetocertainbiological advantages,femaleinfantsaremorelikelytosurvivetotheirfirstbirthday. Becausemostchildmortalityoccurswithinthefirstyearoflife,theunder5 mortalityrateisconsequentlylowerforgirlsthanforboysinmostcountries (UNICEF,2010).However,wheregirlsaredeniedequitableaccesstobasic healthcare,thispatternisreversedandtheunder5childmortalityratiois higherforgirlsthanboys(see Barcellos,Carvalho,&LlerasMuney,2010). Thus,inequitableaccesstobasichealthcare,includingimmunizations, producesinequitableoutcomesintermsofchildmortality.
()

Becauseimmunizationdataarenotdisaggregatedbysex,discrepanciesin theoutcomesofimmunizationpolicycannotbereadilyidentified.Theutility ofsexdisaggregateddataisapparentinthefollowingcasestudy:inIndia, girlsarelesslikelythanboystobevaccinatedinhealthfacilities;however, outreachprogramsthatimmunizechildrenathomesuccessfullyreachand immunizegirls(Collaborators,2010).Inthisway,sexdisaggregateddatacan servetoinformpoliciesandensuremoreequitableaccesstoandoutcomesof basichealthcareservices.

Relevance
TheImmunizationRatesindicatorservesasaproxymeasurefora governmentscommitmenttopublichealthand,morespecifically,it representsagovernmentsinvestmentinpreventativehealthmeasures.As weoutlinedinSectionI,agendersensitiveapproachtohealthcarereinforces theimportanceofotherpreventativehealthservicesforgenderequalityand economicgrowth.Specifically,maternalhealthservices,reproductivehealth services,andcervicalcancerscreeningsfacilitatewomenscontinued, productivecontributionsasmothersandworkers.Throughtheprovisionof adequatenutritiontopregnantwomenandsustainedbreastfeedingfor infants,madepossiblebyadequatebirthspacing,thesegendersensitive,

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 preventativehealthserviceslikewisereducechildmortalityandpromotethe healthoffuturegenerations.

HealthExpenditures
TheHealthExpendituresindicatormeasuresagovernmentscommitmentto thehealthandwellbeingofitspopulation.AsweoutlinedinSectionI, investmentsinhealthallowforeconomicgrowthandpovertyreduction.The MCCcalculatestheHealthExpendituresindicatorusingdatafromtheWHO.

Data
TheHealthExpendituresindicatormeasuresgeneralgovernmenthealth expenditure(GGHE)asapercentageofGDP,wherethemeasurement includesoutlaysforhealthmaintenance,restoration,orimprovementmade byfederal,state,orlocalauthoritiesorotherfinancingagents.Todetermine theGGHE,theMCCreliesondatafromtheWHOsNationalHealthAccounts, whichmonitorresourceflowswithinacountryshealthsystem.Inparticular, theaccountstrackwhereresourcesarespent,whereservicesarepurchased, andwhobenefits(WorldHealthOrganization,2011b).Inaddition,theWHO includesaReproductiveHealthsubaccountthattracksmaternaland reproductivehealthservices(WorldHealthOrganization,2009).Insum,the NationalHealthAccountsofferhighquality,sexdisaggregated,andgender sensitivedata.However,theHealthExpendituresindicatordoesnotreflect themoredetaileddataavailablethroughtheNationalHealthAccountsorthe ReproductiveHealthsubaccount;rather,theindicatorreliesexclusivelyon expendituresintheaggregate.Inthisway,theMCCsHealthExpenditures indicatordoesnotreflectagendersensitiveapproachinthedataanalysis phase.

Policy
TheNationalHealthAccountsareexplicitlydesignedtoassistpolicymakers inallocatingfundsinanefficientandequitablemanner(WorldHealth Organization,2011b).Therefore,theaccountsalongwiththeReproductive Healthsubaccountsoughttorevealwhethergovernmenthealthexpenditure facilitatesequityofaccessandequityofoutcomeforwomen.However, becausetheHealthExpendituresindicatordoesnotconsidersex disaggregateddata,agendersensitivecritiqueofhealthpolicyisnotpossible.

Relevance
TheHealthExpendituresindicatorfailstoaccountforthedistincthealthcare needsofwomen,asexpendituresintheaggregatedonotprovideadequate informationregardingtheprovisionofmaternalandreproductivehealth services.Fundingforreproductivehealthservicesinlowincomeandlower middleincomecountrieshasbeensteadilydecliningasapercentageof healthexpendituresincethemid1990s.Whereasspendingbydonor countriesforinfectiousdiseasehasballoonedinrecentyears,budgetsfor 33

 familyplanningandmaternalhealthhaveremainedstagnant:asa percentageoftotalhealthrelatedfunding,familyplanningfellfrom55 percentin1995tojust5percentin2007(Engelman,2009).Thesestatistics reinforcetheinadequacyofaggregatemeasuresofhealthexpendituresin ensuringthatthehealthneedsofwomenareappropriatelyaddressed.Aswe detailedinSectionI,neglectingtoadequatelyemphasizematernaland reproductivehealthserviceswillnotonlycompromisetheMCCsdedication togenderequality,butwillalsojeopardizeotherstrategiesofpoverty reductionandeconomicgrowth.

E.EDUCATIONANDGENDEREQUALITY
Finally,weanalyzetheMCCsPrimaryEducationExpendituresandGirls PrimaryEducationCompletionrateindicators.Weconsiderwhetherthese indicators,whichfallundertheInvestinginPeoplecategory,aresufficiently gendersensitive.

PrimaryEducationExpenditures
ThePrimaryEducationExpendituresindicatorisoneofthefewMCC indicatorsthatmeasuresinputsasaproxyforoutcomes.Education outcomesaredifficulttomeasurebecauseofthetimeneededforan educationalpolicytofosterchangeandthedifficultyinacquiringqualitydata fromlowincomeandlowermiddleincomecountries.Relevantdataforthe PrimaryEducationExpendituresindicatorareavailablethroughUNESCOs InstituteforStatistics.

Data
Thisindicatormeasurestotalexpendituresonprimaryeducationan aggregateofspendingbylocal,regional,andcentralgovernmentsdivided byGDP.Byusingasinglemeasureofexpendituresonprimaryeducation, neitherthedatacollectionprocessnortheanalysisofthedataisgender sensitive.

Policy
Giventhelackofgendersensitivedata,thePrimaryEducationExpenditures indicatorcannotprovideinformationongenderequalityintermsofaccessto oroutcomesofeducationpolicy.Researchconfirmsthatgirlsaccessto schoolsisenhancedwiththeprovisionofprivatelatrinesforgirls,safeand reliabletransportationtoschool,andanincreaseinfemaleteachers(Herz& Sperling,2004).Ifavailable,sexdisaggregateddataonspecificeducation expenditurescouldrevealthepresenceofsuchgendersensitivepolicies. ForthePrimaryEducationExpendituresindicatortomeasurepoliciesina gendersensitivemanner,disaggregateddatadetailingspecific,gender relatedinvestmentsarerequired.

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Relevance
Giventhelinkagesbetweengirlseducationandpovertyreductionoutlined inSectionI,thisindicatorslackofgendersensitivityisacauseforconcern. AsthisindicatorpresentsthebestproxyoftheMCCscurrentindicators ofthequalityofeducationprovided,itsrevisiontoincludedataongender specificeducationexpenditurescouldprovideimportantinsightintothe genderequalityofacountrysinvestmentingirlseducationatalllevels.

GirlsPrimaryEducationCompletionRate
TheGirlsPrimaryEducationCompletionRateindicatormeasuresa governmentscommitmenttoeducatingyounggirls.Specifically,the indicatorseekstomeasuregirlsaccess,enrollment,andretentioninprimary school.ThisindicatorreliesontheInternationalStandardClassificationof Education(ISCED)definitionoftheprimaryschoolcycleandthenecessary dataareavailablethroughtheUIS.

Data
TheGirlsPrimaryEducationCompletionRateindicatoremploysthegross intakeratiointothelastgradeofprimaryschoolasaproxyforprimary schoolcompletion.Specifically,theindicatorisameasureofthetotalnumber offemalestudentsenrolledinthelastgradeofprimaryschool,minusthe numberoffemalestudentsrepeatingthatgrade,dividedbythetotalfemale populationofthestandardageforenteringthelastgradeofprimaryschool. TheUISofferssexdisaggregateddataforallindicators,includingenrollment bygradeinprimaryeducation,repeatersbygradeinprimaryeducation,and schoolagepopulation.Thus,theGirlsPrimaryEducationCompletionRate indicatorisgendersensitiveinthedatacollectionphase.However,because theMCCneglectstoconsidergirlscompletionratecomparedtoboys completionrate,theMCCsindicatorisgenderbiasedratherthangender sensitive.Furthermore,agendersensitiveapproachrequiresathorough analysisofallsexdisaggregateddata.Inthisway,merelypresentingthesex breakdownofdata,intheabsenceofananalysisofdifferences,isinsufficient (Corner&Repucci,2009).

Policy
Genderequalityatthepolicylevelimpliesequityintermsofbothaccessto andoutcomesofprimaryeducation.TheMCCreliesoncompletionratesasa proxyforgirlsaccesstoprimaryeducation.Asindicatedabove(seePrimary EducationExpendituresindicator),researchhasidentifiedmoreprecise variablesthatdeterminewhethergirlsenjoyequitableaccesstoschools.To enhancethegendersensitivityoftheGirlsPrimaryEducationCompletion Rateindicator,theseadditionalvariablescouldbeconsidered.Intheabsence ofdataregardingboysprimaryschoolcompletionrate,itisdifficultto ascertainwhethergirlsenjoyequitableaccesstoprimaryschool. 35

 TheMCChasdeterminedthateducationalqualityandlearningoutcomesare toodifficulttocalculateandcomparecrossnationally(MillenniumChallenge Corporation,2007).Asaconsequence,thegendersensitivityoftheMCCs educationindicatorscanonlybeassessedaccordingtoequalityofaccess.

Relevance
TheGirlsPrimaryEducationCompletionRateindicatorencourages governmentstoinvestinequitableaccess,enrollment,andretentionofgirls tocapturetheeconomicgrowthassociatedwiththeireducation.Educatinga girlbothimprovesherearningpotentialandproducessocialoutcomesthat contributetopovertyreduction,suchaslowerfertilityrates,improved maternalhealth,andbettereducationaloutcomesforherchildren.However, asweoutlinedinSectionI,theseoutcomesareamplifiedwhenagirlis enrolledinsecondaryschool. Todemonstrategirlsimprovedearningpotential,theMCCreferences PsacharopoulosandPatrinosfindingthatgirlswhoobtainoneextrayearof schoolingbeyondtheaveragewilleventuallyenjoya1020percentboostin earnings(MillenniumChallengeCorporation,2011).Yet,Psacharopoulosand Patrinos(2004)determinethatthereturnstoaprimaryeducationareinfact higherformalestudents.Thereturnstogirlseducationonlysurpassthe returnsachievedbyboysatthesecondaryschoollevel.Thenonwage outcomesofagirlseducationarelikewisemorepronouncedatthe secondarylevel,aswedetailedinSectionI.Whilecompletionofprimary educationis,ofcourse,anecessaryprecursortoasecondaryeducation,a primaryeducationmayprovelessrelevantforeconomicgrowthandpoverty reductionthanenrollmentinsecondaryschool. InTable2,wesummarizeourreviewof11oftheMCCindicators,including ourevaluationofthegendersensitivityofthedata,howwelltheindicator measuresgenderequityintermsofaccessandoutcome,andtheindicators relevancetothepolicyinstrumentsoutlinedinSectionI.

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Table2.GenderSensitivityofCurrentMCCIndicators
MCC Indicator Regulatory Quality Data Collection
Mixed:Onlysome subindicators includedinterviewsof bothsexes Weak:Datacannotbe sexdisaggregatedin currentform; structureinduces genderbias

Policy Analysis AccessEquity

Weak:Noindicator componentassessing regulatoryquality variationbysex Weak:Ignores disproportionate constraintsonwomen instartingand operatingbusinesses Weak:Doesnot accountfordifferential effectsofvarious productsonpoverty andgrowth Varied:Ignores possible womensemployment penaltyforexcessive inflationmanagement Moderate:Discusses deficitsbutoverlooks potentialfiscalpolicy problems

OutcomeEquity
Weak:No measurementsbased onoutcome

RelevancetoSectionI PolicyInstruments

Market

Moderate:Sex disaggregationnot conducted,butalsonot vital Weak:Because collectionnot disaggregatedbysex, analysisnotsensitive

Business StartUp

TradePolicy Macroeconomics

Notapplicable

Notapplicable

Inflation

Notapplicable

Notapplicable

Moderate:Regulatory qualityhasbroadeffects oneconomicparticipation ofmenandwomen Moderate:Gender Weak:Inequitable inequalityinemployment, accessproduces wage,andcreditaccess inequitableoutcomes mayalsoadverselyimpact economicgrowth Moderate: Altersjob profileandthuseconomic Weak:Doesnot opportunityofmenand consideroutcome women,affectinglabor equity marketparticipation Moderate:If Weak:Doesnotaddress contractionary, outcomeequity disproportionatelyharms women Moderate:Doesnot addressoutcomeequity Weak:Ignoresimportance ofgenderawarepublic budgeting

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FiscalPolicy

Notapplicable

Notapplicable

MCC Indicator LandRights andAccess Natural Resource Management Immunization Rates

Data Collection
Mixed:Ruralmea suresincludedataon legalguaranteesfor women,periurban measuresdonot Weak:Datanotsex disaggregated

Analysis
Mixed:Analysisonrural rightsfairlystrong,but periurbananalysisweak becauseofcollection Weak:Becauseof collection,analysis cannotprovideevidence ofgendergap Weak:Because collectionnot disaggregatedbysex, analysisnotsensitive Weak:Onlyconsiders aggregatedhealth expenditures

AccessEquity

Policy OutcomeEquity
Weak:Notincludedin thisindicator,but outcomeeffectscouldbe capturedinother indicators Weak:Singleindicatoron outcomecompromises accountability Weak:Methodofdata collectionandanalysis meansoutcomeequityis notassessed Weak:Dataanalysis methodmeansoutcome equityisnotassessed Weak:Becauseofdata analysis,outcomeequity notassessed Weak:MCCwillnot considermeasuresof educationaloutcomes

RelevancetoSectionI PolicyInstruments
Strong:Indicatoraligns withpropertyrightsand accesstolandinstruments Moderate: Indexcaptures healthandwellbeing,not educationorpolitical empowerment Weak:Reproductiveand maternalservicesand cervicalcancerscreenings notincludedasother preventativemeasures Weak:Doesnotallowfor analysisofinvestmentin womenshealthneeds Weak:Doesnotallowfor analysisofgenderspecific educationexpenditures Moderate:Wageand non wagereturnstogirls secondaryaregreater thanthosetoprimary education

HealthServices

Weak:Datafrom WHOandUNICEFnot sexdisaggregated Strong:Gender sensitive,sex disaggregateddata

Health Expenditures Primary Education Expenditures GirlsPrimary School Completion

Education

Weak:Becauseof Weak:Currentdata collection,cannotshow notsexdisaggregated evidenceofgendergap Strong:UNESCO collectssex disaggregateddata Genderbiased:girls completionratesnot comparedtoboysrates

Mixed:Accesstorural landrightsaddressed, whileaccesstoperi urban/urbanland rightsnotaddressed Moderate:Datalimit abilityofthreeaccess indicatorstomeasure genderdifferences Weak:Althoughcase studiessuggestgirls lackequitableaccess, datainhibitassess mentofaccessequity Weak:Dataanalysis methodmeansaccess equitycannotbe assessed Weak:Dataanalysis methodmeansaccess equitycannotbe assessed Moderate:enrollment isproxyforaccess

Source:AuthorsAnalysis

LandUse

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III.GENDERANDECONOMICDEVELOPMENT:INDICATOR RECOMMENDATIONS
Inthisfinalsection,weproposemodificationstosomeexistingMCC indicatorsandrecommendsomenewindicatorsforadoption.Ourproposed changesreflecttheliteraturereviewweconductedforSectionIonthe linkagesbetweengenderequalityandeconomicgrowthandstemfromour analysisinSectionIIonthegendersensitivityofcurrentMCCindicators.We offeratleastonerecommendationineachofthefivebroadareasconsidered: marketparticipation,macroeconomicpolicies,landuse,healthservices,and education.Specifically,weproposemodificationsaimedatenhancingthe gendersensitivityofmeasurementstofourexistingMCCindicators:Business StartUp,LandRightsandAccess,NaturalResourceManagement,and PrimaryEducationExpenditures.Additionally,weproposefournew indicators:DomesticCreditMarket,GenderResponsiveBudgeting,Womens Health,andGirlsSecondarySchoolEnrollmentRate.TheDomesticCredit Marketindicatordiffersfromourotherproposedindicatorsinthatthe measureweemployisnotinherentlygendersensitive;rather,inclusionofa DomesticCreditMarketindicator,byexpandingtheavailabilityofcredit absolutely,benefitswomenandcontributestoeconomicgrowth. Foreachproposedmodificationorpotentialindicator,webrieflyreviewhow thepolicyinstrumentpromoteseconomicgrowththroughgenderequality. Weprovideadetaileddescriptionofeachindicatorscalculationandidentify thesourceforrelevantdata(seeAppendixBforabriefoverviewofdata sources).Weacknowledgelimitationsoftheproposedmeasureordata source.Finally,weassessthefeasibilityofimplementingeachpolicy instrumentinlowincomeandlowermiddleincomecountries. Additionally,inAppendixCweprovideinformationonalternativepolicy instrumentsnotedinSectionsIandII.Weopttoincludepolicyinstruments inAppendixC,ratherthaninourmainrecommendationsection,wherehigh qualitydataarenotcurrentlyavailable,implementationisnotfeasible,orno changetotheexistingindicatorisrequired.Nevertheless,weencouragethe MCCtorevisitAppendixC;asdatacollectionanddisseminationimprove, thesealternativepolicyinstrumentsmaypresentimportantopportunitiesto encouragegenderequalityandpromoteeconomicgrowth. Weconcludethissectionwithatableinwhichwesummarizethefeasibility andimpactofeachpolicyinstrumentrecommendedinSectionIIIand reviewedinAppendixC. 9

9SeeTable3.AnalysisofGenderSensitiveInstrumentsforEconomicGrowth,page56.

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A.MARKETPARTICIPATIONANDGENDEREQUALITY
Underthebroadtopicofmarketparticipation,weproposeamodificationto theBusinessStartUpindicatorandrecommendanewDomesticCredit Marketindicator.

BusinessStartUp
ToenhancetheeffectivenessandgendersensitivityoftheBusinessStartUp indicator,weproposemodifyingtheexistingindicatorbyincorporatinga newmeasureofwomenseconomicparticipationandopportunity.

RationaleforProposedIndicator
InSectionI,wedemonstratedthatgenderequalityinemploymentandwages, entrepreneurship,andcreditaccessgenerallyhasthepotentialtocontribute toeconomicgrowth.InSectionII,weconcludedthatthecurrentBusiness StartUpindicatorfailstoaccountforgenderinequalityinbusiness ownershipandoperation.Wefurthernotedthatwomenownedbusinesses likelyreceiveinequitabletreatmentunderthisindicatorbecauseoftheIFCs criteriaforclassifyinganentityasabusiness.Ideally,theexistingindicator wouldbemodifiedtoaccountfortheadditionalrestrictionsthatwomenface instartingbusinessesandtheIFCscriteriaforbusinesswouldbe expanded.However,bothoftheseactionsrequirechangestotheIFCdata collectionandmethodology.AstheMCCcannotcompeltheIFCtoalterits indicator,weproposethattheIFCscorebesupplementedwithagender sensitivemeasureforacompositeBusinessStartUpindicator.Specifically, werecommendtheuseofagendersensitivemeasuretoaccountforgender disparitiesintermsofeconomicparticipationandmarketaccess.Our proposedcompositeindicatorenhancesthegendersensitivityoftheexisting indicatorwithoutcompromisingitsstrength.

DescriptionandData
TheWorldEconomicForumpublishes,asasubindexoftheGlobalGender GapIndex,informationonwomenseconomicparticipationandopportunity. Specifically,thesubindexaimstocaptureanygenderdifferencesin participation,compensation,oradvancement.Composedoffiveratiosthe forumcompiles,themeasureusesascalefrom0to1,where1represents perfectequalitybetweenmenandwomen.Thefiveareascoveredare:ratio offemaletomalelaborforceparticipation;ratiooffemaletomalewagefor similarwork;ratioofestimatedfemaleearnedincometomaleearned income;ratiooffemalelegislators,seniorofficials,andmanagerstomale counterparts;andratiooffemaleprofessionalandtechnicalworkersto males.(SeeAppendixDforadetaileddescriptionofeachmeasureandthe relevantdatasources.)Thismetricsatisfiesallthecriteriarecommendedfor indicatorsbytheMCC.InadditiontotheWorldEconomicForumseconomic

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 participationandopportunitymeasure,wealsoconsideredseveralother gendersensitivemeasuresofeconomicparticipation. 10 Ourproposedcompositeindicatorassignsequalweightstotheexisting BusinessStartUpindicatorandtotheWorldEconomicForumseconomic participationmeasure.Sincebothmetricsareona0to1scale,calculationof thenewBusinessStartUpindicatorisrelativelystraightforward.

Feasibility
GivenourconclusioninSectionIthatreducinggenderinequalityinlabor forceparticipationandwagesleadstoeconomicgrowthinthelongrunand theinadequacyofthecurrentBusinessStartUpindicatorinaccountingfor genderinequalityinbusinessownershipandoperation,discussedinSection II,werecommendthatthecurrentBusinessStartUpindicatorbemodifiedto createanewcompositeindicatorbyincorporatingtheWorldEconomic Forumseconomicparticipationandopportunitysubindex.

CreditMarkets
InadditiontotheMCCsexistingindicatorsthatmeasureagovernments commitmenttoacompetitiveandvibrantprivatesector,werecommendthe adoptionofaDomesticCreditMarketindicator.

RationaleforProposedIndicator
Creditmarketsarevitaltoinnovationanddailyoperationofacountrys privatesector.AlthoughtheMCCsRegulatoryQualityindicatorincludesa componentregardingthefinancialsector,itismerelyoneof25makingup theindicator.Furthermore,thefinancialsectorinfluencestheRegulatory Qualityindicatorlessthandoestradepolicy,whichtheMCCcapturesvia anotherindicator.WebelievethataDomesticCreditMarketindicatorwould properlyprioritizecreditintheMCCssetofindicators. AsdiscussedinSectionI,accesstocapitalisessentialforfunctioningprivate marketsandpovertyalleviation.Aswomenoftenlackaccesstootherforms ofcapital(suchaspersonalwealth),theyareparticularlyreliantupona functioningcreditsectorasasourceofcapital.Becausecreditmarketsare ofparticularimporttowomen,theinclusionofaDomesticCreditMarket indicatorimprovesthegendersensitivityoftheMCCssetofindicators.

DescriptionandData
WeproposeaDomesticCreditMarketindicator,calculatedasthedomestic creditprovidedbythefinancialsectortotheprivatesectorasapercentageof GDP.TheIMFcollectsthesedataonanannualbasisfornearlyalllowincome
10ThemeasuresweconsideredweretheUNDPsGenderEmpowermentMeasure(GEM),

andSocialWatchsGenderEquityIndex(GEI).SeeAppendixCforadescriptionofthese measuresanddetailsonwhyweoptedtoexcludethemfromourrecommendedindicator.

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 andlowermiddleincomecountriesaspartofitsInternationalFinancial Statisticsdatabase.Thismeasureprovidessubstantialinsightintothe availabilityofformalcreditaccessandthesizeofthecreditmarket.By focusingondomesticcredit,thisindicatorexplicitlymeasurestheprivate sectorsabilitytoprovidecredit,asopposedtofreedomofinternational funds.Thisfocusensuresthattheindicatormeasuresthetypeofborrowing thatismoredirectlyassociatedwithpovertyalleviation. Wefoundnomeasureofcreditmarketsthatdisaggregatescreditaccessdata bygender;suchdatawouldrequirerecordsofeachloan,whichisnot feasibleinmanylowincomeandlowermiddleincomecountries.Although ourproposedmeasureisnotinherentlygendersensitive,itsinclusion improvesthegendersensitivityofMCCsbasketofindicatorsbyfocusingon anissueofparticularimportanceinimprovingwomenseconomicfreedom. Evenifacountry,motivatedbyMCCsindicators,soughttoimprovethesize ofitscreditmarketsthroughprogramsthatneglectedtoconsiderwomen borrowersspecifically,anabsoluteincreaseinavailablecreditshould improvewomensaccessonthemarginsofthecreditmarket.

Feasibility
Giventheimportanceoffunctioningcreditmarketstoacountrysprivate sector,theadoptionofaDomesticCreditMarketindicatorwouldprovide insightintothefinancialhealthofacountry.Thefeasibilityofourproposed DomesticCreditMarketindicatorisenhancedbytheobjectivityofthe measurementandtheindisputableimportanceofcreditforeconomicgrowth.

B.MACROECONOMICPOLICIESANDGENDEREQUALITY
TostrengthenthegendersensitivityoftheMCCsindicatorsof macroeconomicpolicies,werecommendanewGenderResponsive Budgeting(GRB)indicator.

GenderResponsiveBudgeting
ToenhancethegendersensitivityoftheMCCsfiscalpolicyinstruments, weproposetheadoptionofaGRBindicatoremployingwomenspolitical empowermentasaproxymeasure.

RationaleforProposedIndicator
InSectionI,wehighlightedthatgenderresponsivebudgetingcancontribute toeconomicgrowththrougheffectiveresourceallocationsthataccountfor genderdifferentiatedneeds,canleadtosustainableandhighqualitygrowth throughbettergovernanceandregulatoryquality,andisapowerfulpolicy instrumenttoensurefundamentalequalityineducationandhealthformen andwomen.Thus,theadoptionofaGRBindicatorwouldgreatlyenhancethe MCCseffortstopromoteeconomicgrowththroughgenderequality.

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 Researchconfirmsthatincludingwomensvoicesinthepoliticalprocess enhancesacountrysmacroeconomicstability:duetodifferenteconomic preferences,includingwomenintheelectoratereducesaveragepercapita budgetdeficitsbyastatisticallysignificantamount(Krogstrup&Walti,2007). However,thefactthatmacroeconomicpoliciesaretraditionallynotgender sensitiveimpedesprogresstowardgenderequalityandcanproducenegative repercussionsforwomenspoliticalparticipationandempowerment(Mehra &Gupta,2006). WomenspoliticalempowermentisnecessaryforasuccessfulGRBprocess. Rwandasexperiencedemonstratesthatpoliticalwill,especiallyfromthe highestlevelsofgovernment,isessential.AsBudlenderandHewittnote,ina summaryoflessonsgleanedfromtheRwandaexperience,anybudgetis intrinsicallypolitical.Thebudgetdeterminesfromwhomthestategets resources,andtowhomandwhatitallocatesthem.Eachdecisionisa politicalone,asisthedecisionontheoverallsizeofthebudget(Budlender &Hewitt,2002).Inotherwords,withoutwomensparticipationinand commitmenttothishighlypoliticalprocess,garneringsufficientpolitical willforgenderresponsivebudgetingislikelytobedifficult.

DescriptionandData
Despiteseveralrecenteffortstocomparegenderresponsivebudgeting crossnationally,datasourcesremainincomplete.Rubin&Bartle(2005)list 61countriesthathadundertakenGRBinitiativesatthenationalorsub nationallevelofgovernmentasof2003.Thislistislikelyoutdated;however, atthistimenointernationalagencymaintainsdataonGRBinitiatives. InastudyofGRBeffortsincommonwealthcountries,BudlenderandHewitt (2002)determinethatacountryspolitical,economic,social,andcultural contextstronglyinfluencestheprocess.Forexample,GRBcanbeundertaken byparliamentorgovernmentagenciesasatopdownprocessorbycivil societyasabottomup,grassrootseffort;internationalorganizationscan alsoengageinanadvocacyorsupportiverole(Budlender&Hewitt,2002). Therefore,creatingauniformsetofcriteriatoevaluatetherelativeprogress ofGRBcrossnationallyisverydifficult. DuetotheinadequacyofdatadirectlymeasuringGRB,werecommend womenspoliticalempowermentasaproxyindicator.Specifically,our proposedGRBindicatormeasuresthepercentageofparliamentaryseats insingleorlowerchamberoccupiedbywomen(i.e.womensshareof parliamentarians).Thismeasureisindicativeofwomensempowerment atnationalleveldecisionmaking,apreconditionforsuccessfulgender responsivebudgeting.Thedatanecessarytocalculatethisindicatorare madeavailablethroughtheUnitedNationsStatisticsandIndicatorson WomenandMen,whichdrawsfrommembercountriesreportsof administrativerecords. 43

Feasibility
Althoughinternationalorganizationshaveengagedwithgovernmentsfor severaldecadestoadvocateforgenderresponsivebudgetingtobe mainstreamed,politicalbarriersremain.First,GRBisapoliticallysensitive issueandrequiresatremendousamountofpoliticalcommitment,especially onthepartofwomen.Asmanywomenarenotempoweredpolitically, especiallyinlowincomeandlowermiddleincomecountries,thesewomen cannotreadilyengageinpoliticsoradvocateforGRB.Second,suchefforts canbeundertakenbygovernmentagencies,parliament,orcivilsocietyand incorporatedatafromvariousfinancialstreams.Theseentitiesmayprove unwillingtosharesensitivefinancialdata,especiallywhenprivateentities areinvolved.Atthistime,therefore,theuseofwomenspolitical empowermentasaproxymeasurefortheGRBindicatorismostfeasible.

C.LANDUSEANDGENDEREQUALITY
WeproposemodificationstotheexistingLandRightsandAccessandNRM indicatorstoenhancetheirgendersensitivity.

LandRightsandAccess
WeproposethattheLandRightsandAccessindicatorbemodifiedtoinclude gendersensitivedataongeneralpropertyrights.Ourproposed modificationsbettermeasureacountryscommitmenttoensuringgender equalityinthegovernmentguaranteedrightstoownandaccesspropertyfor personaluseorbusiness.

RationaleforProposedIndicator
ThecurrentMCCindicatoronlyaddressespropertyrightsinsofarasthey affectthepropertyownersbusinesscapabilities;thatis,halfoftheindicator measuresruralpropertyaccesspromotingagricultureandtheotherhalfof theindicatormeasuresperiurbanpropertyaccessthatencouragesother typesofbusiness.Inlightoffindings,reviewedinSectionI,thatproperty rightsareimportanttoindividualfamiliespovertyreductionforreasons otherthanstartingbusinesses,werecommendthatthisindicatorbetter incorporateadditionalmeasuresofoverallpropertyrights,ratherthan onlythosethatpromotebusiness. Additionally,thegendersensitivityoftheMCCsexistingindicatoroughtto beenhancedtoensurethatwomenspropertyrightsareupheldalongwith generalpropertyrightsinlowincomeandlowermiddleincomecountries. Giventheculturalrestrictionsthatimpedewomenspropertyrights(as discussedinSectionII),wecontendthataddingweighttothosecomponents oftheindicatorthatspecificallymeasurewomensaccesstolandand assurancesofpropertyrightsforwomenisnecessarytodeterminewhether governmentsprovidetheserightsequitably.

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DescriptionandData
TheIFADsmethodologyusedtocalculatetheruralpropertyaccesshalf oftheLandRightsandAccessindicatorincludesonecomponentthat measurestheextenttowhichwomenandothervulnerablepopulationsare guaranteedsecurelandtenurebylaw.Theotherfourmeasuresdonotuse sexdisaggregateddataandthuslackgendersensitivity.However,IFAD recentlyanalyzeditsdatacollectionandanalysismethodsandconcluded,in part,thatitsframeworkswereweakforlackofsexdisaggregation. Consequently,theanalysisrecommendedusingsexdisaggregateddatain futurecollectionandincreasingdatacollectiontoincludespecificindicators thatassessgenderequality(InternationalFundforAgriculturalDevelopment (IFAD)OfficeofEvaluation,2010). Sexdisaggregateddatawillenhanceatleastthreeoftheotherfourmeasures ofruralpropertyaccess:themeasureoflandtitlingandregistrationwill indicatewhetherwomenfacebarriersintermsofpropertyownership;the measureoflandmarketswillindicatewhetherwomenfacediscrimination inpurchasingland;andthemeasureofgovernmentpoliciesonsustainable commonpropertyresourcemanagementwillindicatewhetherwomenare disproportionatelyaffectedbyinfrastructuredevelopmentandmaintenance policies. AlthoughIFADcalculatesthiscomponentoftheLandRightsandAccess indicatorasameasureofbarrierstorurallanduse(includingagriculture), mostofthemeasureswementionalsocanserveasproxiesforgeneral propertyrights.Therefore,werecommendthatthesemeasuresinsteadbe assignedaweightof75percentoftheoverallLandRightsandAccess indicatortoindicatetherelativeimportanceofmeasuringgeneralproperty rightsoverthosespecifictoanareaorintendeduse.Theother25percent willremainthemeasureofperiurbanlandregistrationtimeframeandcost, asdescribedinSectionII.

Feasibility
Becausethesourcesofdataremainthesame,ourproposedchangesshould beeasytoimplementuponrevisionofIFADsmeasures.Thechangeinthe indicatorsweightsbetterreflectstheoverallgoaloftheindicatorto measurehowpropertyrightsandaccessareguaranteedbylawthando thecurrentweights,whichplaceequalemphasisonameasureofperiurban landtransfersinveryspecificsituationsandthebroadermeasuresthat indicateacountrysdedicationtoensuringpropertyrights. 11 Therefore,
11Althoughourrecommendationreliesonavailabilityandincorporationofsex

disaggregateddatainIFADscalculation,weproposereweightingthisindicatoras describedaboveregardlessofachangeinthedata.AsdiscussedinSectionII,theIFAD componentoftheLandRightsandAccessindicatornotonlyincludesonespecificmeasure onwomen,butalsomeasuresthepresenceofbarriersthatdisproportionatelyprevent

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 uponavailabilityofgendersensitivedatafromIFAD,themodifiedLand RightsandAccessindicatormorethoroughlyreflectsboththeimportanceof generalpropertyrights,alongwithbusinessspecificpropertyrights,andthe guaranteesofgenderequalityinaccessingthoserightsasameanstopoverty reductionandeconomicdevelopment.

NaturalResourceManagement
ThecurrentNRMindicatorcomprisesecoregionprotection,accessto improvedsanitation,accesstoimprovedwater,andchildmortality.We proposethattheMCCadoptoneadditionalmeasure,namely environmentallyrelateddiseasesmortalityrate.Wealsoproposethatthe MCCreplacethechildmortalitymeasurewithhealthylifeexpectancyatbirth.

RationaleforProposedIndicator
InSectionII,wenotedthatstrengtheningtheoutcomemeasurements associatedwithnaturalresourcemanagementrepresentsakeyopportunity forimprovingthegendersensitivityoftheMCCsexistingindicator.However, measuringgenderdifferencesintermsofaccesstoNRMservicesdirectlyis notpossibleduetoalackofsexdisaggregateddataonaglobalscale(Schultz, Hummel,&Empacher,2001).However,gendersensitivemeasuresofhealth canbeemployedasproxiesforNRMoutcomes. AccordingtotheWHO,infectiousdiseasesaccountforaboutonequarterof alldeathsworldwideandarethenumberonecauseofmortalityinsub SaharanAfrica(Colwell,2004).Malaria,cholera,denguefever,typhoid,and diarrhealdiseasesaresomeofthemostcommoninfectiousdiseasesthat resultfromcontaminatedwaterandpoorsanitation.Whileinfectious diseasescontinuetoposeasubstantialchallengetothehealthandwellbeing ofresidentsinlowincomeandlowermiddleincomecountries,chronicnon communicablediseasesnowposeanadditional,environmentallyrelated healthconcern.Althoughhistoricallyregardedasthediseasesoftherich, recentstatisticsshowthatalmost80percentofalldeathscausedbynon communicablediseasesnowoccurinlowincomeandlowermiddleincome countries(Ogoinaa&Onyemelukweb,2009). Environmentalfactors(e.g.,exposuretochemicalpollutants)havebeen identifiedasoneofthekeydeterminantsofnoncommunicablediseases incidence.Othermajorriskfactorsfornoncommunicablediseases,suchas onestraitsandlifestylealsohaveahighdegreeofcorrelationwithhowthe environmentismanagedandhowinfrastructureisdeveloped(Ogoinaa& Onyemelukweb,2009;WorldHealthOrganization,2007a).Furthermore, thereisacleargenderdimensiontothecausalrelationshipbetween
womenfromowningandusingproperty.Therefore,reweightingthisindicatormakesthe overallmeasuremoregendersensitive,evenwithoutthepresenceofsexdisaggregated data.

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 environmentalfactorsandnoncommunicablediseases,namelychronic respiratorydisease.Womenaremorelikelytocookandperformother householdtasksthatrequireburningsolidfuels.Womenalsotendtospend moretimeindoorswherethesefuelsareburned.Asaconsequence,women faceanincreasedriskofdevelopingchronicrespiratorydiseases(TheNCD Alliance,2010).

DescriptionandData
WerecommendthattheMCCincludeanenvironmentallyrelateddiseases measure,consistingofthemortalityratesfrominfectiousandparasitic diseases,respiratoryinfections,andchronicobstructivepulmonarydisease. ThenecessarydataareavailablethroughtheWHOGlobalInfoBase.The InfoBasecollects,stores,anddisplaysinformationreportedbymember statesontheglobalburdenofdiseasesandassociatedriskfactors.The InfoBasecontainssexdisaggregatedmortalityrates(per100,000)forthe categoriesofenvironmentallyrelateddiseaseswehaverecommended.We furtherproposethattheMCCtrackthemortalityrateforinfectiousand parasiticdiseases,respiratoryinfections,andchronicobstructivepulmonary diseaseinasexdisaggregatedmanner.Separatingthemaleandfemale mortalityratesforthesediseasesmakesthebestuseoftheavailabledata andensuresthatthissubindicatorisasgendersensitiveaspossible. WealsorecommendthattheMCCreplacethecurrentchildmortality measurewithameasureofequallydistributedhealthylifeexpectancyat birth.Wefavorthissubstitutionforthreereasons.First,dataforinfant mortalityandmortalityratesforchildrenunder5yearsofagearenotsex disaggregated.Incontrast,sexdisaggregateddataareavailableforlife expectancyatbirth,throughtheUnitedNationsStatisticsDivision.Second, wedidnotfindastrongbodyofliteratureclearlylinkingallunder5child mortalitytoenvironmentalcauses.Incontrast,themeasureofequally distributedhealthylifeexpectancy,althoughstillunabletoruleoutnon environmentalriskfactors,canprovideamoregendersensitivemeasure ofagivencountryscapacitytoensurethatitsresidentsenjoylivesthatare longandfreeofdiseaseanddisability.Third,althoughmaleandfemalelife expectancieshaveanaturalgapduetobiologicaldifferences,thedatacanbe madecomparableusingaformuladevelopedbytheUNDP(seeAppendixE foradetailedexplanation). Insummary,underourmodifiedNRMindicator,ecoregionprotection, accesstoimprovedsanitation,andaccesstoimprovedwatertogether accountfor50percentoftheoverallindicator.Theproposedindicatorsof mortalityratefromenvironmentallyrelateddiseasesandmaletofemale ratioofhealthylifeexpectancyatbirthaccountfor25percentofthe

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 indicatoreach(seeAppendixEforasamplecalculationoftheindicator). 12 Inthisway,theNaturalResourceManagementindicatorisimprovedin termsofitsabilitytoholdcountriesaccountableforthegendersensitive outcomesofNRMpolicies. Ourproposedmeasurementhassomelimitations.First,manyofthediseases measuredrarelycausedeath;rather,thesediseasesaremorelikelytocause seriousillnessandthusimpedepeoplesabilitytoliveahealthyand productivelife.Forthisreason,wewouldideallynotmeasuredeathsbut timelosttoillness.TheDisabilityAdjustedLifeYear(DALY)measurement expressesdisabilityintermsofyearsandsubsequentlycombinesdeathand disabilityintoasingleindex(seeAppendixEforadetaileddefinition). AlthoughwewouldprefertoemployDALYsasopposedtomortalityrate,the WHOdoesnotregularlyupdateitsDALYdatabase.Second,diarrhealdisease isanothercommunicablediseasewithaclearlinktotheenvironment; however,duetoalackofavailabledata,wecannotrecommendthatdiarrheal diseasebeincludedintheindicatoratthistime.Third,althoughthe environmentisalsooneofthemajorriskfactorsforothermajornon communicablediseases(i.e.cancer,diabetes,andcardiovasculardiseases) themultifactorialnatureofthesediseasesmakesitdifficulttoinsistthata governmentreducethemortalityrateofthesediseasessimplybymaking improvementstotheenvironment.Thus,wedonotrecommendthatother noncommunicablediseasesbeincludedintheindicatoratthistime.

Feasibility
Healthiswidelyrecognizedtobeanessentialhumanrightandranksamong thetopprioritiesofnationalagendasinlowincomeandlowermiddle incomecountries.Asthedatasourceswerecommendarealreadypublicly available,weanticipateverylittleexternalpoliticalresistancetoour proposedchanges.Insum,theenvironmentallyrelateddiseasesandlife expectancyatbirthmeasuresserveasusefulproxiesfortheoutcomesof NRMpolicesandenhancetheNRMindicatorintermsofbothpolicy relevanceandgendersensitivity.

D.HEALTHSERVICESANDGENDEREQUALITY
WerecommendanewWomensHealthindicatoraimedatimprovingthe gendersensitivityoftheMCCssetofhealthpolicyindicators.

WomensHealth
ToenhancethegendersensitivityoftheMCCshealthpolicyinstruments, weproposetheadoptionofaWomensHealthindicator.Thisnewindicator servesasacomplementtotheexistingImmunizationRatesandHealth
parasiticdiseases,respiratoryinfections,andchronicobstructivepulmonarydisease)should beequallyweighted,eachaccountingfor33percentofthesubindicator.
12Thethreecomponentsoftheenvironmentallyrelateddiseasesmeasure(i.e.infectiousand

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 Expendituresindicators.TheWomensHealthindicatorconsistsoftwo measures,onepertainingtomaternalhealthandtheotherrelatedto reproductivehealth.

RationaleforProposedIndicator
ForthematernalhealthcomponentoftheWomensHealthindicator,we recommendpercentageofbirthsattendedbyskilledhealthpersonnel.This measureisintendedtoproxyagovernmentscommitmenttoproviding adequatecareforpregnantwomen.Forthereproductivehealthcomponent, werecommendunmetneedforfamilyplanning.Thismeasureisindicativeof agovernmentseffortstoassistwomeninachievingthelowerfertilityrates theydesire.Weproposeatwoprongedindicatorbecausematernalhealth andreproductivehealthinfluenceeconomicgrowthandpovertyreduction indistinctways. AswehighlightedinSectionI,maternalmortalityimposessubstantial economiccostsonlowincomeandlowermiddleincomecountriesinterms oflostproductivity.Awomansprematuredeathinflictseconomic consequencesonherfamilyandsociety,intermsoflostincomeand decreasedagriculturalproduction.Accesstoskilledhealthprofessionals duringdeliverypromisestodramaticallyreducematernalmortalityand othercomplicationsofchildbirth.Aninvestmentinmaternalhealthpermits womentocontinueintheirrolesasmothers,workers,andfarmersduring theirmostproductiveyears. Reproductivehealthservices,inturn,ensurethatwomenareabletocontrol thenumberandspacingoftheirpregnancies.AsweindicatedinSectionI, governmentspossessavestedinterestingrantingwomenaccesstothe reproductivehealthservicestheydesire,aslowerfertilityratesimplya lowerdependencyburdenthatfacilitateseconomicgrowth.Furthermore, lowerfertilityratesrenderotherdevelopmentgoalsmoreattainable,as smallerfamilysizepermitsforanenhancedinvestmentinthehealth, education,andwellbeingofeachchild. InSectionII,wenotedthattheMCCscurrenthealthindicatorsdonot considersexdisaggregateddata.Anevaluationofequitableaccesstoand outcomesofhealthcareisthereforenotfeasible.Datalimitations,described inAppendixC,precludeusfromrecommendingchangestotheImmunization RatesorHealthExpendituresindicatorsdirectly.OurproposedWomens HealthindicatorneverthelessimprovestheMCCssetofhealthindicators, byencouraginggovernmentstoadequatelyaddresstheuniquereproductive healthneedsofwomen.

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DescriptionandData
EachcomponentoftheWomensHealthindicatoraccountsfor50percent ofthetotalscore.Foradetailedexplanationoftheindicatorscalculation, seeAppendixF.

DescriptionandData:MaternalHealth
Thematernalhealthmeasureiscalculatedasthenumberofwomenage 1549withalivebirthattendedbyskilledhealthpersonnel,expressedasa percentageofwomenage1549withalivebirthinthesameperiod.Skilled healthpersonnelincludedoctors,nurses,andmidwiveswhoaretrainedin providinglifesavingobstetriccare.Traditionalbirthattendantsarenot includedinthisestimate(UnitedNationsStatisticsDivision,n.d.a). UNICEFreliesonnationallevelhouseholdsurveys,includingtheMultiple IndicatorClusterSurveyandtheDemographicHealthSurvey(DHS),to determinecountryestimatesofbirthsattendedbyskilledhealthpersonnel. Thesesurveysareconductedeverythreetofiveyears.Priortoentryintothe globaldatabase,UNICEFandtheWHOcommunicatewithfieldofficesto verifycountrydata.EachDecember,UNICEFpublishesthelatestavailable estimatesinTheStateoftheWorldsChildrenreport.Currently,dataare availablefor140countries(UnitedNationsStatisticsDivision,n.d.a). Thismeasurehasseverallimitations.First,thepresenceofaskilled attendantmaynotadequatelyreflectthequalityofcareprovided, particularlyifcomplicationsarise.Second,thoughthehouseholdsurveys havesoughttostandardizethedefinitionofskilledhealthpersonnel,itis likelythattrainingandabilityvarybetweencountries.Third,thismeasure focusesexclusivelyoncareatthetimeofdeliveryanddoesnotindicate whetherwomenhaveaccesstocareduringpregnancyorpostpartum. Theuseofthematernalmortalityratiowouldpartiallyaddressthethird concern,asitincludesdeathsthatoccurduringpregnancy,delivery,orthe postpartumperiod.Additionally,thematernalmortalityratioisanoutcome measureandwerecognizethattheMCCpreferstomeasureoutcomesand notinputs.However,wedonotrecommendthattheMCCemploythe maternalmortalityratioasanindicatorofmaternalhealth.Largesample sizesarerequiredtoaccuratelymeasurematernaldeathrates.Toreducethe costsassociatedwithlargesamplesize,thesisterhoodsurveymethodis employed,inwhichrespondentsreportonthesurvivorshipoftheirsisters. Problematically,thismethodproducesestimatesfortheprevioussixto12 yearsandtheresultsarethereforenotconducivetomonitoringprogressor examiningtheimpactofanintervention.Furthermore,thematernal mortalityratioestimatesareaccompaniedbylargeconfidenceintervals (UnitedNationsStatisticsDivision,n.d.a).Insum,maternalmortalityratio

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 estimatesarenotsuitableforassessingprogresswithinacountryorfor crosscountrycomparisons.

DescriptionandData:ReproductiveHealth
Theunmetneedforfamilyplanningmeasureindicatesthegapbetween womensreproductiveintentionsandtheircontraceptivebehavior(United NationsStatisticsDivision,n.d.a).Internationalestimatesarebasedon womenwhoaremarriedorinaconsensualunion.Foradetaileddescription oftheindicatorscomputation,seeAppendixF. DatafortheunmetneedmeasurearecollectedthroughtheDHS,the ReproductiveHealthSurvey,andothernationalsurveys.Thesesurveysare undertakeneverythreetofiveyears.TheDHSistheprimarysourceofdata onunmetneedforlowincomeandlowermiddleincomecountries.The ReproductiveHealthSurveylikewisecollectsdatafromthesecountriesand receivestechnicalassistancefromtheU.S.CentersforDiseaseControland Prevention(CDC).NationalsurveysgenerallyincorporateeithertheDHSor CDCmethodology,andanyvariationinthedefinitionofunmetneedis flaggedinthedataset.TheUNFPAupdatestheWorldContraceptiveUse databaseannuallyandpublishesthedataeverytwoyearsinDecember.Data areavailablefor100countries;importantly,coverageisstrongforthose countrieswherecontraceptiveuseislowandmonitoringofprogressismost needed(UnitedNationsStatisticsDivision,n.d.a). Inadditiontotherelativelylowcountrycoverage,theunmetneedforfamily planningmeasurepresentsafewlimitations.Althoughthedefinitionof unmetneedhasundergoneseveralrevisionstoimproveprecision,slight differencesindefinitionpersist.Thedefinitionofunmetneedwaslast articulatedin1998.Datapriorto1998cannotbeaccuratelycomparedwith morerecentdata,whichmayimpedeattemptstoaccessprogress.Finally, womenwhorelyonatraditionalmethod(asopposedtoamodernmethod) ofcontraceptionarenotconsideredtohaveanunmetneed;however, traditionalmethodsareconsiderablylesseffectiveandthisdiscrepancyis notcapturedbytheunmetneedmeasure(UnitedNationsStatisticsDivision, n.d.a). Wepreferunmetneedforfamilyplanningtoalternativemeasures,suchas contraceptiveuseamongmarriedwomen,becausethedefinitionofunmet needismorepreciseandconsistentacrosscountries(UnitedNations StatisticsDivision,n.d.a).Additionally,unmetneedforfamilyplanning impliesanopportunityforgovernmentintervention(i.e.,theprovisionof affordablemethodsofcontraception)whereasalackofcontraceptiveuse doesnotprovideinformationonwomenspreferencesregarding contraception.

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Feasibility
Forthepastdecade,theinternationalcommunityhasmonitoredboth componentsoftheWomensHealthindicator,thepercentageofbirths attendedbyskilledhealthpersonnelandunmetneedforfamilyplanning,to assessprogresstowardMillenniumDevelopmentGoal5:ImproveMaternal Health.Additionally,theMCCcurrentlyconsiderspercentageofbirths attendedbyskilledhealthpersonnelassupplementalinformation.Thus, officialsfromlowincomeandlowermiddleincomecountriesare accustomedtobeingrankedaccordingtotheircommitmenttomaternaland reproductivehealthandarefamiliarwiththesetwomeasuresspecifically. Asinvestmentsinwomenshealthserviceshavethepotentialtosubstantially improveeconomicgrowth,werecommendthattheMCCintroducea WomensHealthindicator.Becausematernalandreproductivehealth servicesinfluencepovertyalleviationindistinctways,weadvisetheMCCto employanindicatorthatcapturesbothaspects.OurproposedWomens Healthindicator,incontrasttothecurrentuseofthematernalhealth measureassupplementalinformation,improvesthegendersensitivityofthe MCCshealthindicatorsandsignalstolowincomeandlowermiddleincome countriesthattheparticularhealthneedsofwomenmustbeprioritized.

E.EDUCATIONANDGENDEREQUALITY
Finally,werecommendamodificationtothePrimaryEducation ExpendituresindicatorandweproposetheadoptionofaGirlsSecondary SchoolEnrollmentRateindicator.Ourrecommendationsimprovethegender sensitivityoftheMCCseducationindicatorsandmorecloselyreflectour findingsfromSectionIonthereturnstoagirlseducation.

PrimaryEducationExpenditures
AsamodificationtotheMCCscurrentPrimaryEducationExpenditures indicator,weproposetheadditionofameasureofspecificexpendituresthat promotegirlsprimaryschoolattendanceandtherebyallowcountriesto capturetheeconomicgrowthassociatedwithgirlseducation.

RationaleforProposedIndicator
AsdiscussedinSectionII,thecurrentMCCindicatoremploysasimple measureofacountrysaggregateexpendituresonprimaryeducationasa proxyfortheexpectededucationaloutcomes.Theefficacyofgatheringand analyzingsexdisaggregateddataonexpenditurespergirlpupilwillnotbeas usefulasdisaggregatingthedatatoincludespecificexpendituresthatare knowntoaffectthequalityofagirlseducation.Addingacomponenttothe existingindicatorthatmeasuresgendersensitiveeducationexpenditures providesamorecompletepictureofacountrysdedicationtogender equalityineducation,whichinturnallowsfortheeconomicgrowth outcomesidentifiedinSectionI.Expendituresonfemaleteachers,safeand 52

 reliabletransportationtoschool,andseparatelatrinesforgirlsareamong thespecificexpendituresthatpromotedailyschoolattendancebygirlsand therebyinfluencethequalityofeducationgirlsreceive(Caillods,2010).

DescriptionandData
TheWorldBanksWorldDevelopmentIndicatorscollectsdataonfemale teachersasapercentageofacountrysteachers,whichprovidesagood proxyforagovernmentswillingnesstospendonfemaleteachers.However, wedidnotfindanybroadlyrepresentative,qualitydatathatmeasures expendituresonlatrinesorpublictransportationspecificallyforeducational purposes.WhileWorldDevelopmentIndicatorsdoescollectdataonsome formsofpublictransportation,alongwithexpendituresonroads,thedata cannotbegeneralizedamongcountriesbecauseofsubstantialdifferencesin thelocationofschoolsgenerallyandthetypesoftransportationneededto gettoschool. However,UNESCOsWorldEducationIndicatorsProgramdoesevaluate specificcountriesbasedontheirprovisionoftransportationtoschoolor subsidiesprovidedtostudentsfortransportation(UNESCOInstitutefor Statistics,2002).Whilethedataarecollectedirregularlyandonlyinselected countries,UNESCOSframeworkcanbeusedtorequestthatcountriesreport onexpendituresfortransportationtoschools,withascorefrom0100 percentawardedbasedonthecountrysreport. 13 Insum,werecommendmodifyingthePrimaryEducationExpenditures indicatortoincludeameasureofthepercentageofteacherswhoarefemale andameasureofthetransportationprovisionforprimaryeducation.These twomeasurestogetherareweightedas25percentoftheoverallmodified indicator,withthefemaleteachercomponentcomprisingtheentire25 percentiftheapplicantcountrydoesnotreportontransportation expenditures(seeAppendixGforasamplecalculationofthemodified indicator).

Feasibility
ThemodifiedPrimaryEducationExpendituresindicatorincorporatesdata onspecificexpendituresthatwefoundtomostaffecttheattendanceratesof girlsinlowincomeandlowermiddleincomecountries.Becauseour proposedindicatorreliesinpartoncountriesreportsoftheirown transportationexpenditures,thedatamaynotbeasreliable;inparticular, sincelackofdatawouldincreasetherelativeweightofthefemaleteacher percentage,anapplicantcountrywouldconceivablyonlyreporttheir
13Thismeasuremustbescoredasapercentagetobeincorporatedwiththeother

componentsoftheindicator.0percent=notransportationprovision;33percent= transportationpartiallysubsidized;67percent=transportationfullysubsidized;100 percent=transportationprovided.

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 educationtransportationdataifexceptional.Ourproposedindicatormaynot havethesamepoliticalfeasibilityastheexistingindicator,giventhedecrease inaccountabilityforcountriesthatdonotprovidetransportationor subsidiesfortransportationtoprimaryschoolstudents. Nevertheless,inlightofthefindingthatspendinginthesespecificareasisso importantforgirlsaccesstoandoutcomesofeducation,aconsiderationof specificexpendituresisnecessarytomakethePrimaryEducation Expendituresindicatorgendersensitive.Emphasizingfemaleteachersand safetransportationtoschoolsinthisindicatorwoulddemonstratetheMCCs commitmenttoovercomingobstaclestofemaleeducationandwouldallow lowincomeandlowermiddleincomecountriestocapturetheeconomic growthassociatedgirlseducation.

GirlsSecondarySchoolEnrollmentRate
WeproposethattheMCCreplacetheexistingGirlsPrimaryEducation CompletionRateindicatorwithaGirlsSecondarySchoolEnrollmentRate indicator.

RationaleforProposedIndicator
Ourreviewoftherelevantliteraturesuggeststhatthewageandnonwage returnstogirlseducationaremorepronouncedatthesecondaryschool level.Theeconomicreturnstoagirlseducationonlysurpassthereturns achievedbymalestudentsatthesecondarylevel,whilethenonwage,social outcomesofagirlseducationpostponementofmarriageandmotherhood, reducedHIVinfectionrates,andimprovedchildhealthandeducation outcomesareamplifiedwhensheisenrolledinsecondaryschool. Consequently,werecommendthattheMCCemphasizegirlssecondary educationratherthanprimaryeducation. Furthermore,asweindicatedinSectionI,whensecondaryschool opportunitiesarereadilyavailable,familiesmayprovemoreinclinedto investintheirdaughtersprimaryeducation.Thus,itisimperativethat governmentsguaranteegirlsreadyaccesstosecondaryschoolifuniversal primaryeducationistoberealized. Weopttoemphasizesecondaryschoolenrollmentoversecondaryschool completionfortworeasons.First,PsacharopoulosandPatrinos(2004) determinethatoneadditionalyearofschoolingbeyondtheaverage improvesagirlsearningsby10to20percent.Thisfindingindicatesthat somesecondaryeducationissufficienttoboostgirlsearningpotential. Second,severalofthepositive,socialoutcomesassociatedwithagirls secondaryeducation,includingdelayedmarriage,delayedfirstpregnancy, andreducedHIVinfectionrates,aremoredirectlyrelatedtogirlsenrollment thangirlscompletionofsecondaryschooling.

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 InSectionII,wecritiquedtheMCCsGirlsPrimaryEducationCompletion Rateindicatorforneglectingtopresentthedatainsuchamannerthatgirls disadvantagecouldbeassessed.Ourproposedindicatorenhancesthegender sensitivityoftheMCCseducationindicators,inthatitallowsfora comparisonofgirlsenrollmenttoboysenrollment.Insodoing,theGirls SecondaryEducationEnrollmentRateindicatorcaptureswhethergirlsenjoy equitableaccesstosecondaryschool.

DescriptionandData
TheproposedGirlsSecondarySchoolEnrollmentRateindicatorconsistsof twocomponents:girlssecondaryschoolenrollmentrateandthegender parityindexforsecondaryschoolenrollment.Eachcomponentaccountsfor 50percentoftheindicator.Acompositescoreof1indicatesthatalleligible girlsareenrolledinsecondaryschoolandthatgenderparityinenrollment rateshasbeenachieved. 14 Insum,theGirlsSecondarySchoolEnrollment Rateindicatorencouragegovernmentstosimultaneouslypursuegender parityinsecondaryschoolenrollmentandtomaximizethepercentageof girlsenrolled. TheMCCreliesondatapublishedbytheUIStodetermineitsexisting educationindicators.TheUISlikewisecollectsandpublishesthedata necessarytocalculatetheGirlsSecondarySchoolEnrollmentRateindicator. Specifically,theUIScompliesandpublishesdataonthesecondaryschoolage populationandenrollmentratesforfemalesatthesecondarylevel.TheUIS likewisecalculatesthegenderparityindexfornetenrollmentrateatthe secondarylevel.WeareconfidentthattheUIS,asthesourceforbothofthe MCCscurrenteducationindicators,offershighqualitydata.

Feasibility
WedonotanticipatethattheGirlsSecondarySchoolEnrollmentRate indicatorwouldconfrontpoliticaloppositioninlowincomeorlowermiddle incomecountries.ThroughtheDakarFrameworkforActionandthe MillenniumDevelopmentGoals,governmentshavealreadyopenlyexpressed acommitmenttothepursuitofgenderequalityinsecondaryeducation.The MCCalreadyencouragescountriestoinvestingirlseducation,throughthe GirlsPrimaryCompletionRateindicator.WeadvisetheMCCtonow emphasizegirlssecondaryeducation,giventhattheprivateandpublic returnstoagirlssecondaryschoolenrollmentexceedthereturnsfroma completedprimaryeducation. InTable3,wesummarizetheimpactandfeasibilityofeachproposedchange ornewindicator.
14Thecompositescoremayexceed1,wheregirlssecondaryschoolenrollmentsurpasses

boysenrollment.Insuchcases,thevalueofthecompositescoreistruncatedto1.

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 Table3.AnalysisofGenderSensitiveInstrumentsforEconomicGrowth
ImpactofPolicy ProposedPolicy Instrumenta RegulatoryQuality* BusinessStartUp* LaborForceParticipation andWages ChildcareAccess CreditAccess Agriculture TradePolicy* Inflation* FiscalPolicy* GenderResponsive Budgeting LandRightsandAccess* NaturalResource Management* Infrastructure Development ImmunizationRates* HealthExpenditures* MaternalHealthServices ReproductiveHealth Services Proposed Changeb
Noaction Modified MCC Noaction New Noaction Noaction Noaction Noaction New Modified MCC Modified MCC Noaction Noaction Noaction New Womens Health indicator

MCC Criteriac
Mixed Strong Mixed Strong Weak Moderate Moderate toStrong Strong Weak Weak Weak Moderate

Economic Gender Growth Sensitivity Feasibility

Unclear Moderate Moderate toBig Moderate Moderate Big Moderate toHigh Moderate High High Moderate High High High Moderate High High High

HealthServices

LandUse

Macro

Market

Education

CervicalCancer Noaction Weak Screenings PrimaryEducation Modified Moderate MCC Expenditures* GirlsPrimaryCompletion ReplaceMCC with Rate* GirlsSecondaryEducation enrollment EnrollmentRate indicator
secondary Strong

Moderate toBig

High

Moderate

Big

High

High

Source:AuthorsAnalysis aFormorediscussiononproposedchanges,seeSectionIII;fordiscussiononunchanged indicators,seeAppendixD. bChange,whenrecommended,wouldmodifyexistingMCCindicators,asopposedtothe creationofanindicator. cMCCfavorsindicatorsthataredevelopedbyanindependentthirdparty;utilizeananalytically rigorousmethodologyandobjective,highqualitydata;arepubliclyavailable;havebroad countrycoverage;arecomparableacrosscountries;haveacleartheoreticalorempiricallinkto economicgrowthandpovertyreduction;arepolicylinked;andhavebroadconsistencyinresults fromyeartoyear. * CurrentMCCindicatorsaredesignatedwithanasterisk.

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RECOMMENDATIONSANDCONCLUSION
Toenhancethegendersensitivityofexistingindicators,weproposethatthe MCCsupplementtheBusinessStartUp,NaturalResourceManagement,and PrimaryEducationExpendituresindicatorswithadditionalmeasuresfor whichsexdisaggregateddataareavailable.Specifically,werecommendthat theBusinessStartUpindicatorincludeameasureofwomenseconomic participationandopportunity.FortheNaturalResourceManagement indicator,weproposereplacingthechildmortalitymeasurewithan alternativemeasureofhealthylifeexpectancy,assexdisaggregateddatafor thelatterareavailable.Wealsorecommendameasureofenvironmentally relateddiseasethatisgendersensitiveinthediseasesitconsidersandthe dataitemploys.WerecommendmodifyingthePrimarySchoolExpenditures indicatortoincludeinformationonspecificexpenditures(i.e.,female teachersandsafetransportation)thatencouragegirlsequitableaccessto andoutcomesofprimaryschool. Weproposeoneadditionalmodificationtoanexistingindicator:namely,a reweightingoftheLandRightsandAccessindicator.Inthenearfuture,the datasourcefortheruralpropertycomponentoftheindicatorlikelywillbe alteredtoreflectamoregendersensitiveapproach.Werecommendthatthe MCCchangetheweightsofthisindicatortomoreprominentlyhighlightthe gendersensitivecomponent. Inadditiontotheseproposedmodificationstoexistingindicators,we recommendthattheMCCadoptfournewindicators.FortheEconomic Freedomcategory,weproposetheuseofaDomesticCreditMarketindicator andaGenderResponsiveBudgetingindicator.FortheInvestinginPeople category,weproposetheuseofaWomensHealthindicatorandaGirls SecondarySchoolEnrollmentRateindicator. TheDomesticCreditMarketindicatorencourageslowincomeandlower middleincomecountriestoexpandcreditavailability.Aswomensaccessto creditincreases,theircapacitytoparticipateequitablyinthebusinessand agriculturalsectorswilllikewiseimprove.OurproposedGenderResponsive Budgetingindicatorreliesonwomenspoliticalparticipationasaproxy measure.Aswomenengageinthepoliticalprocess,government expendituresoninfrastructure,environmentalmanagement,andhealth (amongotherpolicyareas)willbetterreflectthedistinctneedsofwomen, renderingtheseinvestmentsmoreefficientandeffective.OurWomens Healthindicatorincludesbothamaternalhealthcomponentanda reproductivehealthcomponentandtherebyencourageseconomicgrowth throughavertedmaternaldeathsandloweredfertilityrates.TheGirls SecondarySchoolEnrollmentRateindicatorencourageslowincomeand lowermiddleincomecountriestocapitalizeontheeconomicandsocial

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 outcomesofeducatinggirls,includingenhancedearningpotential,delayed marriageandpregnancy,andimprovedmaternalandchildhealth. Werecognizethatourproposedmodificationsandrecommendedindicators varyintermsofgendersensitivityandfeasibility.Unlikeourotherproposals, theDomesticCreditMarketindicatorwesuggesthereisnotgendersensitive, duetodatalimitations.Wehavenonethelessdeterminedthattheinclusionof aDomesticCreditMarketindicatorisjustified:womenfaceparticular constraintsinaccessingcredit,andanabsoluteexpansionofcreditislikelyto benefitwomen.OurproposedGirlsSecondarySchoolEnrollmentRate indicatorisuniqueinthatitreplacestheexistingGirlsPrimaryEducation CompletionRateindicator.Wecontendthatthissubstitutionisjustified:our reviewoftheliteratureclearlyindicatesthatboththewageandnonwage returnstoagirlseducationaremorepronouncedatthesecondaryschool level. Insum,ouroverallrecommendationsreflectrecent,highqualityresearch regardingthelinkagesbetweengenderequalityandeconomicgrowthand employsreliable,broadlyrepresentativedatasources.Together,thefour proposedmodificationstoexistingindicatorsandthefourproposednew indicatorsrepresentafeasibleandeffectivemeansofimprovingthegender sensitivityofMCCindicatorsandofencouraginglowincomeandlower middleincomecountriestopursueeconomicgrowththroughgender equality.

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APPENDICES
APPENDIXA:INTERNATIONALFINANCECORPORATIONSASSUMPTIONSABOUT THEBUSINESS
Onlyentitiesmeetingthefollowingcriteriaareconsideredabusinessfor thepurposeoftheDoingBusinessSurvey.Anentityisabusinessifit: Isalimitedliabilitycompany.Ifthereismorethanonetypeof limitedliabilitycompanyintheeconomy,thelimitedliability formmostpopularamongdomesticfirmsischosen. Informationonthemostpopularformisobtainedfrom incorporationlawyersorthestatisticaloffice. Operatesintheeconomyslargestbusinesscity. Is100%domesticallyownedandhas5owners,noneofwhom isalegalentity. Hasstartupcapitalof10timesincomepercapitaattheendof 2009,paidincash. Performsgeneralindustrialorcommercialactivities,suchas theproductionorsaletothepublicofproductsorservices.The businessdoesnotperformforeigntradeactivitiesanddoesnot handleproductssubjecttoaspecialtaxregime,forexample, liquorortobacco.Itisnotusingheavilypollutingproduction processes. Leasesthecommercialplantandofficesandisnotaproprietor ofrealestate. Doesnotqualifyforinvestmentincentivesoranyspecial benefits. Hasatleast10andupto50employees1monthafterthe commencementofoperations,allofthemnationals. Hasaturnoverofatleast100timesincomepercapita. Hasacompanydeed10pageslong. a

aThebulletedcontentisquoteddirectlywithoutchangefromWorldBank,International

FinanceCorporation.(2011c).StartingABusinessMethodology.RetrievedfromDoing Business:http://www.doingbusiness.org/methodology/startingabusiness

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APPENDIXB:NEWDATASOURCESUSEDINSECTIONIIIINDICATORS
InTableB1,webrieflylistnewdatasourcesforproposedchangesor recommendedindicators. TableB1.DataSourcesforRecommendedIndicators
Indicator Business StartUp Credit Markets Gender Responsive Budgeting LandRights andAccess Natural Resource Management NewMeasure
EconomicParticipation andOpportunitySub Index TotalDomesticCreditas PercentageofGDP WomensShareof Parliamentarians

Publisher
World Economic Forum WorldBank UNStatistics Division

Link
http://www.weforum.org/iss ues/globalgendergap http://data.worldbank.org/in dicator/FS.AST.DOMS.GD.ZS http://unstats.un.org/unsd/d emographic/products/indwm /default.htm

Nochangeindata sources EnvironmentallyRelated DiseasesMortalityRate EquallyDistributed HealthyLifeExpectancy atBirth PercentageofBirths AttendedbySkilled HealthPersonnel UnmetNeedforFamily Planning WHO UNStatistics Division UNICEF

https://apps.who.int/infobas e/ http://unstats.un.org/unsd/d emographic/products/socind /health.htm http://www.unicef.org/sowc /

Womens Health

United Nations http://www.un.org/esa/pop ulation/publications/wcu201 0/WCP_2010/Data http://data.worldbank.org/ indicator/all

Primary Education Expenditures

FemaleTeachersasa WorldBank PercentageofaCountrys World Teachers Development Indicators Expenditureson EducationRelated Transportation Country reported UNESCO UNESCO

Girls Secondary School Enrollment

GirlsSecondarySchool EnrollmentRate GenderParityIndexin SecondarySchool Enrollment

http://stats.uis.unesco.org http://stats.uis.unesco.org

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APPENDIXC:ALTERNATIVEPOLICYINSTRUMENTSANDMEASURES
InAppendixC,weprovideadditionalinformationonalternativepolicy instrumentsandmeasuresinthecategoriesofmarketparticipation, macroeconomicpolicies,landuse,andhealthservices.Wehighlightedthese policyinstrumentsinSectionsIandII;however,wedidnotincludethemin ourSectionIIIrecommendationsbecausehighqualitydataarenotavailable, implementationisnotfeasible,ornochangetotheexistingindicatoris required.Asdatacollectionanddisseminationimprove,webelievethatthese alternativesmaypresentimportantopportunitiestoencouragegender equalityandpromoteeconomicgrowth. A.MARKETPARTICIPATIONANDGENDEREQUALITY

MCCIndicator:RegulatoryQuality
Ideally,wewouldproposemodificationstothecurrentRegulatoryQuality indicatortobetterincorporategendersensitivemeasuresandensurethat theindicatorisweightedtoreflecttheoverallgendersensitivityofagiven countrysregulations.BecausethecurrentRegulatoryQualityindicatoris calculatedindependentlybytheWorldwideGovernanceIndicatorsproject, anychangetothisindicatorwouldrequiretheMCCtocompilethedataand calculatetheoverallscoreforeachcountry.Additionally,sincethesources ofthedatausedbyWorldwideGovernanceIndicatorsarevaried,the availabilityofsexdisaggregateddataisunknown.Furthermore,thefew areasinwhichsexdisaggregateddatawouldbeusefulindetermininggender equalityingovernmentregulationpolicieslabormarketpoliciesforwages andhiringpractices,propertytitleregulations,andbusinessstartup administrativerequirementsareallrepresentedinothergendersensitive indicatorrecommendations.Whereaschangestotheexistingindicator, throughtheuseofsexdisaggregateddatawhereapplicable,couldprovide amorecompletepictureastothegenderequalityofagovernments regulations,wedonotrecommendanymodificationsgiventhedifficulties inimplementingsuchchangesandpotentialredundancyintheoutcome measured.

LaborForceParticipationandBusinessStartUp
InSectionIII,weproposedtheadoptionofamodifiedBusinessStartUp compositeindicatorthatincorporatesagenderbasedmeasureofeconomic participationandopportunity.Thealternategendersensitivemeasureswe consideredarediscussedbelow.

GenderEmpowermentMeasure
TheGenderEmpowermentMeasure(GEM),computedbyUNDP,captures genderinequalityinthreekeyareas:politicalparticipationanddecision makingauthoritymeasuredusingtheshareofparliamentaryseatsbygender;

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 economicpoweranddecisionmakingpowermeasuredbytwoindicators shareoflegislators,seniorofficials,andmanagersandshareofprofessional andtechnicalpositionsbygender;andpowerovereconomicresources measuredbyshareofearnedincomebygender. Theeconomicparticipationandopportunitysubindexthatwerecommend inSectionIIIincorporatestwoofthethreekeyareascoveredbytheGender EmpowermentMeasure,aswellasadditionalmeasuresofeconomic participationitdoesnotcover.Ourrecommendedmeasuredoesnotinclude theGenderEmpowermentMeasureofpoliticalparticipationanddecision making.Wedonotregardthisexclusionasproblematic,asthepolitical participationanddecisionmakingindicatordoesnotdirectlymeasurethe disparityineconomicparticipationandopportunity.Additionally,weinclude ameasureofwomenspoliticalparticipationundertheproposedGender ResponsiveBudgeting(GRB)indicator.

GenderEquityIndex
TheGenderEquityIndex(GEI),calculatedbySocialWatch,measures genderinequalityinthreekeyareas:education;economicactivity,and empowerment.Theindicatorsthatcompriseeconomicactivityand empowermentarerelevantmeasuresofwomenseconomicactivityand opportunity.Theeconomicactivitymeasurecomprisesrateofeconomic activityandestimatedperceivedincome.Theempowermentmeasure comprisesshareofwomenintechnicalpositions,inmanagementand governmentpositions,inparliament,andinministeriallevelpositions. Theeconomicparticipationandopportunitysubindexthatwerecommend inSectionIIIincorporatesnearlyalloftherelevantmeasurescoveredbythe GenderEquityIndex.Additionally,ourproposedBusinessStartUpindicator incorporatesadditionalmeasuresofeconomicparticipationtheindexdoes notcover.

ChildcareAccess
InSectionI,wenotedthataccesstoaffordablechildcarefacilitatesgender equalityinthelabormarket,aswomenarerelievedofsomeoftheir caretakerduties.Welikewisehighlightedthataccesstochildcareenhances girlssecondaryschoolenrollmentrates,asadolescentgirlsarenot compelledtocareforyoungersiblingsathome.Furthermore,whenchildcare programsprovidenutritionalsupplementationorcognitivestimulationthey constitutepowerfulvehiclesforpovertyalleviationandeconomic development. Economistshaveconfirmedthatsuchearlychildhooddevelopment(ECD) programsrepresentahighlycosteffectiveinterventionandhavearguedthat thepublicreturnstosuchprogramsnecessitategovernmentsubsidies (Rolnick&Grunewald,2003;Carneiro&Heckman,2003).Researchfromthe 75

 UnitedStatesconfirmsthelongtermbenefitsassociatedwithparticipation inanECDprogram,intermsofimprovededucationalachievementaswellas importantsocialoutcomes(i.e.,reducedincarcerationrates,delayed pregnancy,andenhancedearningpotential)(Schwienhart,2005;Anderson, 2003;Ramey&Ramey,1998). Theinternationalcommunityhaslikewiserecognizedtheimperativeof investinginECDprogramsandfrequentlyframessuchinvestmentsinECDas economicdevelopmentinitiatives(SpenceBoocock,1995).Lowincomeand lowermiddleincomecountrieshaveachievedsuccessinimplementingECD programs.Indiahassuccessfullyenrollednearly40millionchildreninits IntegratedChildDevelopmentServiceprogram,atacostoflessthan$10per yearperchild(Gupta&Sharma,2006).Alargescalestudyoftheprogram considersoutcomesfor700centers,whichtogetherprovideservicesto nearly14,000and5,000women,anddeterminesthatexpectantmothersare morelikelytoreceivematernalhealthcare(50percentascomparedto37 percentofnonenrolledmothers).Participantchildrenaremorelikelytobe ofnormalweight(35percentascomparedto37percentofnonparticipant children)andlesslikelytobeseverelymalnourished(11percentas comparedto13percentofnonparticipantchildren).Preschooleducationis offeredin56percentoftheIntegratedChildDevelopmentServicecentersin thesample.Preschoolparticipation,inturn,ispredictiveofprimaryschool enrollment:89percentofchildrenwhoreceivethepreschoolcomponent continueontoprimaryschool,while52percentofthosewhodonotattend preschoolenterprimaryschool(Rao,2005). Sincethe1970s,theColombiangovernmenthasfundedhomebasedECD programs.Arecentevaluationofthisinterventiondeterminesthatchildren enrolledintheprogramare,onaverage,2centimeterstallerthannon participants.Childrenwhoattendtheprogrambeforeprimaryschoolare 20percentmorelikelytostillbeinschoolatages13to17.Importantly,the authorsconcludethattheprogramhasagreaterlongtermimpactongirls thanboys.Furthermore,theprogramhasademonstratedeffectonwomens workforceparticipationrates,whichincreasefrom12percentto37percent, andthehoursworkedpermonthincreaseby75hours(Attanasio&Vera Hernandez,2004).Thesearebuttwoexamplesofthemanydiverseand innovativeECDprogramscurrentlyfundedbylowincomeandlowermiddle incomecountries. ThroughtheDakarFrameworkforAction,countrieshavecommittedto expandingandimprovingECDservicesandhaveengagedineffortsto monitorECDprogramsinternationally.Problematically,however,the measuresemployedbytheEducationforAll(EFA)initiativedonot adequatelycapturegovernmentcommitmenttoECDandaresogeneral

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 soastoofferverylittleinformationaboutthequalityofservicesprovided (TheConsultativeGrouponEarlyChildhoodCareandDevelopment,2001). b TheUISisexploringpossiblealterativemeasuresofinvestmentinthehealth, education,andwellbeingofyoungchildren.Asthisdatabaseisimproved,we encouragetheMCCtoconsideradoptinganEarlyChildhoodDevelopment indicator. c ECDprogramsrepresentapowerfulinvestmentinpeoplewhile simultaneouslyfacilitatingthegoalsofgenderequalityinthelaborforceand secondaryeducation.

Agriculture:EducationandExtension
Despitetheimportanceofagriculturalextensionandeducationandsome evidencetosuggestthatmenaredisproportionatelyrecipients,thereisno adequatemeasureavailableformostdevelopingcountries.Instead,itis moreproductivetoconsideragriculturalextensionandeducationasa demonstrationoftheimportanceofgenderresponsivebudgeting.Givendata limitations,themostfeasiblemeasureofgovernmentinvestmentinwomens agriculturalextensionandeducationwouldlikelybegovernmentinvestment ineducation,whichiscoveredinotherindicators.

Agriculture:TraditionalGenderRoles
Thereisampleevidenceofthelimitationsimposedbytraditionalgender roles;however,alteringthesenormsrequiresdramaticsocialchange. Researchsuggeststhatthemosteffectivemeansofchanginggendernormsis toencouragewomensownershipofassets(Quisiumbing&Maluccio,2000) andtoimprovewomenseducation(Berkovitch,1999;Seguino,2007).As thesetwomechanismsalreadyareincludedinotherindicators,wedonot
inearlychildhooddevelopmentprogramsandthepercentageofnewentrantstoprimary schoolwhohaveattendedsomeformoforganizedearlychildhooddevelopmentprogram. Theseindicatorsarenotconducivetocomparisonsacrosscountriesandarethereforenot appropriatefortheMCC.Comparisonsofgrossenrollmentratioarecomplicatedastheages eligibleforservicesvary,thedaysandhoursofoperationvary,andthedefinitionofwhat constitutesanECDprogramvaries.Thesecondindicator,newentrantswithECDexperience, ismostoftenmerelyanestimateastheinformationisnotactuallycollectedinmost countries(TheConsultativeGrouponEarlyChildhoodCareandDevelopment,2001). cIdeally,thisindicatorwouldreflectthequalityofservicesoffered(bycapturingthequality ofinteractionbetweenthestaffandchildren)ortheoutcomesofprogramparticipation(by measuringchilddevelopmentorschoolreadiness).However,giventhatthesemeasures cannotbereadilydefinedcrossculturallynoreasilymonitoredatanationallevel,proxies arerequired.Werecommendoneofthefollowingalternativeindicators:numberofchildren percaregiver,disaggregatedbytheageofthechildren;averageexpenditurebygovernment perchildonECDprograms,asapercentageofgrossnationalproductperinhabitant;orthe percentageofeducationalexpendituresallocatedtoECDprograms.Foradditional informationonECDindicatorsandmeasuresofquality,see(TheConsultativeGroupon EarlyChildhoodCareandDevelopment,2001;Myers,2006).
bPresently,EducationforAll(EFA)reliesonthefollowingindicators:grossenrollmentratio

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 recommendanewindicatorhere.Instead,weregardwomenseconomic freedomasanadditionaljustificationfortheseindicators.

B.MACROECONOMICPOLICIESANDGENDEREQUALITY
MCCIndicator:TradePolicy
TheMCCwouldbenefitfromatradeindicatorthatbetterfocusesonthe capabilitiesandneedsoflowincomeandlowermiddleincomecountriesto participateinworldmarkets.Anidealindicatorwouldmeasurelevelsof genderequalityineconomicopportunity(suchasantidiscriminationlaws) asaproxyfortheeconomicefficienciesgainedfromgenderequalityinwage andemployment. TheUnitedNationsConferenceonTradeandDevelopmentcreatedatrade indicatorthatfocusesondevelopingcountries:theTradeandDevelopment Index.Theindexmeasurestradepolicyinawaymoreappropriateforlow incomeandlowermiddleincomecountriesthantariffsandtradebarriers alone.ItincludesonecomponentbasedontheUNGenderandDevelopment Index,asaproxyforgenderequalityineconomicopportunity.TheTradeand DevelopmentIndexhasbeenpublishedonlytwice,in2005and2007,andit isunclearwhetheritwillbepublishedregularlyinthefuture.IftheTrade andDevelopmentIndexispublishedregularlyandfrequently,we recommenditsadoptionasareplacementfortheMCCscurrentTradePolicy indicator.

MCCIndicator:Inflation
DespitetherisksofoverzealousinflationminimizationdescribedinSectionII, theMCCsmethodofawardinggrantslikelyrendersthiscriticismirrelevant. Byonlymeasuringwhetheracountrysscoreisabovethemedianandnotits overallranking,theMCCdoesnotprovideanincentivetominimizeinflation completelybutonlyuptothemedian.Therefore,thecurrentindicatoronly inflictsdisproportionatedifficultyonwomenifoverhalfthecountriesina peergrouplimitinflationtoadegreethataffectswomenslabormarkets.As longasitdoesnotappearthatoverhalfthemembersapeergroupexhibit contractionaryinflationminimization,thecurrentindicatorneednotbe changed.

C.LANDUSEANDGENDEREQUALITY
MCCIndicator:NaturalResourceManagement
InSectionsIandII,wenotedthatwomenspoliticalempowermentand participation,aswellaswomenseducationandknowledgesharing opportunities,representgapsintheMCCscurrentevaluationofgender sensitiveNaturalResourceManagement(NRM)policyresponses.However, becausesexdisaggregateddataforthisareaspecificeducationarenot 78

 presentlyavailableandtheMCCalreadymeasuresgirlseducation,wedonot recommendcreatinganindicatoratthistime.Furthermore,becauseour proposedGRBindicatoremployswomenspoliticalempowermentasaproxy, thatparticipationprobablyshouldnotbedoublecountedunderNRM.

InfrastructureDevelopment
InSectionI,weobservedthatinfrastructuredevelopmentrepresentsan opportunityforimprovingthegendersensitivityofeconomicpolicies. However,wealsonotedthattheMCCalreadyincorporatestwo infrastructurerelatedmeasures,accesstoimprovedwaterandaccessto improvedsanitation,intheNRMindicator.Becausedataforinfrastructure developmentaresparse,improvingthegendersensitivityofexisting indicatorsisnotfeasibleatthistime.WethereforerecommendthattheMCC continuetoincorporatetheseinfrastructureelementsintotheNRMindicator untilimproved,sexdisaggregateddatasourcesofinfrastructure developmentareidentified.

D.HEALTHSERVICESANDGENDEREQUALITY
MCCIndicator:ImmunizationRates
InSectionII,wenotedthatsexdisaggregateddataforimmunizationrates arenotcurrentlyavailableformostcountries.Asaconsequence,thegender sensitivityoftheImmunizationRatesindicatorcannotbereadilyimproved.

MCCIndicator:HealthExpenditures
AsweoutlinedinSectionII,theexistingHealthExpendituresindicatordoes notconsidersexdisaggregateddataandthereforedoesnotpermitagender sensitiveanalysisofgovernmentexpendituresonhealthcare.Weindicated thattheNationalHealthAccountsdata,presentlyemployedtocalculatethe HealthExpendituresindicator,couldbesupplementedwithdatafrom ReproductiveHealthsubaccounts.Problematically,however,toofew countriescurrentlysubmitReproductiveHealthsubaccountstotheWHOto satisfytheMCCscriteriafordatasources.Asaconsequence,revampingthe HealthExpendituresindicatortoreflectwomenspecificexpendituresisnot feasibleatthistime. TheWHOhighlightsReproductiveHealthsubaccountsasapriorityforaction. WerecommendthattheMCCconsulttheWHOsdatabaseafteraperiodof timetodeterminewhethersufficientandaccuratedataonwomenshealth expendituresareavailable.Atthattime,theMCCcouldconsidereliminating theWomensHealthindicatorandinsteadrestructuretheHealth Expendituresindicatortoreflectgenderspecificexpenditures.

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CervicalCancerScreenings
GiventhelackofhighqualitydataandtheMCCsinputthatearlydetection andtreatmentofcervicalcanceroughtnottobeprioritizedoverother pressinghealthconcerns,wedonotrecommendtheadoptionofanew indicatorpertainingtocervicalcancerscreeningcoverage. Nevertheless,itisworthreiterating(seeSectionI:HealthandGender Equality)thatmaternalmortalityclaims360,000livesperyear,while 300,000womendiefromcervicalcancerannually.Maternalmortalityand deathsfromcervicalcanceraffecteconomicgrowthinthesameway namelythroughthelossofawomanslifeduringherproductiveyearsand tonearlythesamedegree.Theinternationalcommunityhasidentified maternalmortalityasapriorityforjointactionnotonlybecausematernal deathrepresentsatragiclossoflife,butalsobecausethesedeathsare perceivedaseasilypreventable.Similarly,earlydetectionandtreatment strategiesforcervicalcancerareinexpensiveandhighlyeffective. TheWHOisengagedinanefforttocollectdataoncervicalcancerscreening coverage(WorldHealthOrganization,2007b).Whensufficientdatabecome available,werecommendthattheMCCreconsidertheWomensHealth indicatorandperhapsincludecervicalcancerscreeningsasanadditional measureofwomensequitableaccesstohealthcare.Alternatively,werethe MCCtoincorporatetheReproductiveHealthsubaccountsintoitscalculation oftheHealthExpendituresindicator(again,oncesuchdatabecomewidely available),itwouldbeappropriatetoincludegovernmentexpenditureson cervicalcancerscreeningsinthatcalculation.

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APPENDIXD:WORLDECONOMICFORUMSECONOMICPARTICIPATIONAND OPPORTUNITYSUBINDEX
TheGlobalGenderGapIndexisametriccomputedbytheWorldEconomic Forumtocapturethemagnitudeandscopeofgenderbaseddisparitiesinthe world(Dresser,2010).Theindexmeasuresgenderinequalityinfour categories:economicparticipationandopportunity,educationalattainment, healthandsurvival,andpoliticalempowerment.Eachofthesefoursub indicesisassignedequalweightintheGlobalGenderGapIndex. Theeconomicparticipationandopportunitysubindexaimstocapture genderinequalityinparticipation,remuneration,andadvancement.The participationgapiscalculatedasaratiooffemalelaborforceparticipation overmalevaluesusingdataobtainedfromtheInternationalLabour Organization.Theremunerationgapismeasuredusingtwodataelements:1) ratioofestimatedfemaleearnedincomeovermaleearnedincomeobtained fromUNDPsHumanDevelopmentReport,and2)aqualitativevariablethat captureswageinequalityforsimilarworkcalculatedthroughtheWorld EconomicForumsExecutiveOpinionSurvey.Finally,theadvancementgapis alsocapturedthroughtwodataelements:1)ratiooffemalelegislators, seniorofficials,andmanagersoverthemalevalue,and2)ratiooffemale professionalandtechnicalworkersoverthemalevalue.Bothofthese variablesareobtainedfromUNDPsHumanDevelopmentReport. Oncetheratioofeachofthefivedataelementsassociatedwiththeeconomic participationandopportunitysubindexiscalculated,theratiosare truncatedattheequalitybenchmarksuchthatcountrieswherewomenhave surpassedmenreceiveascoreof1.Thefivevariablesarenormalizedby theirstandarddeviationtoassignweightstoeachvariableinorderto calculatethecompositescoreforthesubindex.Thefinalscoreofthesub indexiscalculatedusingtheratioforeachvariableandtheweights.

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APPENDIXE:CALCULATIONOFTHEMODIFIEDNATURALRESOURCEMANAGEMENT INDICATOR
Inthisappendix,weexplainhowtocalculatethemodifiedNaturalResource Management(NRM)indicator.

CalculationofEquallyDistributedHealthyLifeExpectancyatBirth
TheUnitedNationsDevelopmentProgrammeprovidesthefollowing explanationforcalculatingtheGenderRelatedDevelopmentIndex(GDI)for lifeexpectancy: TheGDIadjuststheaverageachievementtoreflectthe inequalitiesbetweenmenandwomen.Thecalculationofthe GDIforlifeexpectancyinvolvestwosteps. First,femaleandmalelifeexpectanciesarecalculated accordingtothisgeneralformula: Dimensionindex=

Second,thefemaleandmaledimensionindicesarecombined inawaythatpenalizesdifferencesinachievementbetween menandwomen.Theresultingindex,referredtoastheequally distributedindex,iscalculatedaccordingtothisgeneral formula: Equallydistributedindex={[femalepopulationshare(female index1)]+[malepopulationshare(maleindex1)]}1(United NationsDevelopmentProgramme,2008).

ExplanationofDisabilityAdjustedLifeYear
TheWorldHealthOrganizationprovidesthefollowingexplanationofthe DisabilityAdjustedLifeYear(DALY)metric: Definition:OneDALYcanbethoughtofasonelostyearof healthylife.ThesumoftheseDALYsacrossthepopulation,or theburdenofdisease,canbethoughtofasameasurementof thegapbetweencurrenthealthstatusandanidealhealth situationwheretheentirepopulationlivestoanadvancedage, freeofdiseaseanddisability.(WorldHealthOrganization, 2011a).

ReconfigurationofMeasures
TheNRMindicatoriscomputedasastandardizedproximitytotargetfor eachofthemeasuresinascaleof0100(SocioeconomicDataand ApplicationsCenter,2008).Wemustthereforereconfigurethenewly 82

 proposedmeasuresofenvironmentallyrelateddiseasesmortalityrateand equallydistributedhealthylifeexpectancyatbirthintothestandardized proximitytotargetscore,inordertocombinethesemeasureswiththe existingmeasuresoftheNRMindicator. TheSocioeconomicDataandApplicationsCenterprovidesthefollowing explanationforreconfiguringmeasures,inthiscasethechildmortality measure: Forchildmortality,wecomputetheratioofthemeasured probabilityofdyingtothehighestobservedprobabilityof dying,whichis0.141,andmultiplythatby100tomakeit comparabletothe0100scaleusedintheothermeasures.The proximitytotargetmeasureisthisnumber,whichrangesfrom 0100,subtractedfrom100.(SocioeconomicDataand ApplicationsCenter,2008)

ReconfigurationofEquallyDistributed HealthyLifeExpectancyatBirthMeasure
Theequallydistributedhealthylifeexpectancyatbirthmeasurecanbe reconfiguredtotheproximitytotargetscoremetricinthefollowingway: (countryshealthlifeexpectancyscore/highestobservedprobability) x100)=proximitytotargetscore Asanexample:CountryAsequallydistributedhealthylifeexpectancyat birthmeasureis0.38andthehighestvalueoftheequallydistributedhealthy lifeexpectancyatbirthindicatoramongallcountriesis0.78.CountryAs proximitytotargetscoreis: (0.38/0.78)x100=48.7 Thedifferenceisthat,unliketheenvironmentallyrelateddiseasesmortality rate,theproximitytotargetscoreofequallydistributedhealthylife expectancyatbirthmeasureshouldnotbesubtractedfrom100.Thereason isthatunliketheenvironmentallyrelateddiseasesmortalityrate,forwhich thepolicytargetshouldbethelowerthebetter,thepolicytargetofhealthy lifeexpectancymeasureshouldbethehigherthebetter.Therefore,dividing thecountryshealthlifeexpectancyscorebythehighestobservedprobability andconvertingittothe0100scalealreadyconveysthesenseofproximity totarget,thusthesubtractionfrom100processshouldnotberepeatedfor thismeasure.

ReconfigurationoftheEnvironmentallyRelatedDiseasesMortalityRate
Aproximitytotargetscoremustbecalculatedforeachcomponentofthe environmentallyrelateddiseasesmortalityrate.Thiscanbebestillustrated throughanexample.Wewillcalculatetheenvironmentallyrelateddiseases mortalityrateformalesinCountryA: 83

 First,theinfectiousandparasiticdiseasecomponent: MortalityrateformalesinCountryA:539.6 Highestobservedprobability:2,543.6 Proximitytotargetscore:{100[(539.6/2,543.6)x100]}=78.79 Second,therespiratoryinfectionscomponent: MortalityrateformalesinCountryA:321.1 Highestobservedprobability:430.0 Proximitytotargetscore:{100[(321.1/430.0)x100]}=25.33 Third,thechronicobstructivepulmonarydiseasecomponent: MortalityrateformalesinCountryA:91.0 Highestobservedprobability:140.7 Proximitytotargetscore:{100[(91.0/140.7)x100]}=35.32 Finally,theenvironmentallyrelateddiseasesmortalityrateformalesin CountryAis: [(78.79+25.33+35.32)/3]=46.48 Thisprocesswouldberepeatedtodeterminetheenvironmentallyrelated diseasesmortalityrateforwomen.Below,weassumeascoreof42.3forwomen.

NewCalculationofNaturalResourcesManagementIndicator
ThetwonewcomponentsoftheNRMindicatoreachaccountfor25percent oftheoverallscore.Becausetheenvironmentallyrelateddiseasemortality ratemeasureisreportedseparatelyformenandwomen,eachsub componentaccountsfor12.5percent.Thethreecomponentsoftheexisting indicatorthataremaintained(i.e.,sanitation,water,andecoregion protection)togetheraccountfortheremaining50percent.Thus,theNRM indicatoriscalculatedas: {(equallydistributedhealthylifeexpectancyatbirthscorex.25)+ (environmentallyrelateddiseasemortalityrateformalesx.125)+ (environmentallyrelateddiseasemortalityrateforfemalesx.125)+ [(sanitationscore+waterscore+ecoregionprotectionscore)/3x .5]}=NaturalResourceManagementscore Asanexample:ForCountryA,wehavecalculatedanequallydistributed healthylifeexpectancyatbirthscoreof48.7.CountryAsenvironmentally relateddiseasemortalityratescoreis46.48formalesand42.3forfemales. CountryAreceivesascoreof44.0forsanitation,77.0forwater,and86.6for ecoregionprotection.CountryAsNaturalResourceManagementscoreis: {(48.7x.25)+(46.48x.125)+(42.3x.125)+[(44.0+77.0+86.6)/3] x.5}=57.9

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APPENDIXF:CALCULATIONOFTHEWOMENSHEALTHINDICATOR
Inthisappendix,wedescribetheunmetneedforfamilyplanningmeasure andexplainhowtocalculatetheWomensHealthindicator.

DefinitionandCalculationofUnmetNeedforFamilyPlanning
TheUnitedNationsStatisticsDivisionprovidesthefollowing,detailed definitionofunmetneedforfamilyplanning: Thestandarddefinitionofunmetneedforfamilyplanning, includesinthenumerator: Allpregnantwomen(marriedorinconsensualunion) whosepregnancieswereunwantedormistimedatthetime ofconception. Allpostpartumamenorrheic d women(marriedorin consensualunion)whoarenotusingfamilyplanningand whoselastbirthwasunwantedormistimed. Allfecundwomen(marriedorinconsensualunion)who areneitherpregnantnorpostpartumamenorrheic,and whoeitherdonotwantanymorechildren(limit),orwho wishtopostponethebirthofachildforatleasttwoyears ordonotknowwhenoriftheywantanotherchild (spacing),butarenotusinganycontraceptivemethod. Excludedfromthenumeratoroftheunmetneeddefinitionare pregnantandamenorrheicwomenwhobecamepregnant unintentionallyduetocontraceptivemethodfailure(thesewomen areassumedtobeinneedofabettercontraceptivemethod). Infecundwomenarealsoexcludedfromthedefinition.Womenare assumedtobeinfecundif:Theyhavebeenmarriedforfiveor moreyearsand: Theyhavenothadabirthinthepastfiveyearsand Theyarenotcurrentlypregnantand Theyhavenotusedcontraceptionwithintheprecedingfive years(or,ifthetimingofthelastcontraceptiveuseisnot known,oriftheyhaveneverusedanykindofcontraceptive method)or Theyselfreportthattheyareinfecund,menopausalor havehadahysterectomy,or(forwomenwhoarenot pregnantorinpostpartumamenorrhea)ifthelast menstrualperiodoccurredmorethansixmonthspriorto thesurvey. e

dAmenorrheicindicatestheabsenceofamenstrualperiodinawomanofreproductiveage. eThebulletedcontentisquoteddirectlywithoutchangefrom:(UnitedNationsStatistics

Division,n.d.a).

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 Additionally,theUnitedNationsStatisticsDivisionprovidesthefollowing flowdiagramforthecomputationofunmetneedforfamilyplanning.

Source:(UnitedNationsStatisticsDivision,n.d.b).BasedonC.FWestoffandL.H.Ochoa(1991). UnmetNeedandtheDemandforFamilyPlanning,ComparativeStudiesNo.5.Demographicand HealthSurveys,InstituteforResourceDevelopment,MacroInternational;andC.FWestoffandA. Bankole(1995).Unmetneed:19901994.DHSComparativeReportNo.16,MacroInternational.

CalculationofWomensHealthIndicator
CalculationoftheWomensHealthindicatoriscomplicatedsomewhatbythe factthattheaimistomaximizethematernalhealthmeasure(percentageof birthsattendedbyskilledhealthpersonnel)whileminimizingthe reproductivehealthmeasure(unmetneedforfamilyplanning).Thus,the WomensHealthindicatorisappropriatelycalculatedas: [percentageofbirthsattendedbyskilledhealthpersonnelx.5]+ [(1unmetneedforfamilyplanning)x.5]=WomensHealthscore Asanexample:InCountryB,skilledhealthpersonnelarepresentat60 percentofbirthsand25percentofwomenexpressanunmetneedforfamily planning.CountryBsWomensHealthindicatoris: [.60x.5]+[(1.25)x.5]=.675

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APPENDIXG:CALCULATIONOFTHEPRIMARYSCHOOLEXPENDITURESINDICATOR
InthemodifiedPrimarySchoolExpendituresindicator,aggregate expendituresaccountfor75percentoftheindicatorwhilethetwonew measures,femaleteachersandtransportationprovision,togetheraccountfor theremaining25percent.Asintheexistingindicator,primaryschool expendituresarecalculatedasapercentageofacountrysGDP: [(aggregateexpendituresonprimaryschool/GDP)x.75]+[percent ofteachersthatarefemalex.125]+[transportationscorex.125]= PrimarySchoolExpendituresscore Aswenotedabove,thetransportationcomponentisscoredas:0percent= notransportationprovision;33percent=transportationpartiallysubsidized; 67percent=transportationfullysubsidized;100percent=transportation provided. Asanexample:CountyCspends3.2percentofitsGDPonprimaryschool expenditures.FiftyfivepercentofCountryCsteachersarefemale.CountryC receivesascoreof67percentforfullysubsidizingtransportationforprimary schoolstudents.CountryCsPrimarySchoolExpendituresindicatoris: [.032x.75]+[.55x.125]+[.67x.125]=.1765 Ifanapplicantcountrydoesnotcollectorreportdataontransportation provisionforprimaryschoolstudents,thefemaleteachercomponent accountsfortheentire25percent.Inthiscase,theindicatoriscalculatedas: [(aggregateexpendituresonprimaryschool/GDP)x.75]+[percent ofteachersthatarefemalex.25]=PrimarySchoolExpendituresscore Asanexample:CountryDspends3.2percentofitsGDPonprimaryschool expenditures.TwentyfivepercentofCountryDsteachersarefemale. CountryDdoesnotreportontransportationprovision.CountryDsPrimary SchoolExpendituresindicatoris: [.032x.75]+[.25x.25]=.0865

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