World Bank says the global economy will grow by 20% if women participated more

The global economy could get a $20 trillion boost if women were allowed to participate in the workforce at the same level as men.

That’s hard data from the World Bank. According to their latest report, economies are leaving massive growth on the table by keeping women out of key roles in politics, leadership, and business.

Cherie Blair, human rights lawyer and wife of former UK Prime Minister Tony Blair, has a plan. Next week, at the World Economic Forum in Davos, she’s set to call out governments and global leaders for dragging their feet on women’s representation.

“It is shocking and unacceptable that as 2025 begins, women are still significantly underrepresented in parliaments and governments,” Blair said in an email to Bloomberg. Her message is simple: put women in leadership, and you’ll unlock unprecedented economic potential.

Women in leadership: A missed opportunity

Here’s the reality. Women hold fewer than two-thirds of the legal rights of men across the globe. That’s a stat the World Bank unearthed after analyzing 165 countries, tracking areas like childcare, equal pay, and financial access.

No country—let that sink in, zero countries—has achieved complete legal parity between men and women. In 2023, women filled just 26% of parliamentary seats and 23% of cabinet positions worldwide.

And while nearly half the world’s population went to the polls last year, it barely made a dent in advancing female representation. Sure, there were some bright spots.

The UK, Japan, and South Korea made modest gains, and Mexico made history by electing its first female president, Claudia Sheinbaum.

But those wins were overshadowed by setbacks in France, India, Pakistan, and even the European Parliament, which saw a decline in female representation for the first time since its creation in 1979.

The Representation Matters report makes it clear: having more women in leadership isn’t just good optics—it’s good economics. The World Bank found a statistically significant link between women in politics and improvements in their legal and economic rights.

That link directly correlates to higher workforce participation, which could potentially double the global growth rate.

Barriers holding women back

The barriers are both systemic and cultural. Women around the world continue to shoulder the bulk of unpaid care work—three times more than men, according to the United Nations. That unpaid labor locks them out of paid employment, keeping economies from tapping into their full potential.

The World Bank’s analysis showed that even small legal changes, like introducing childcare laws, could increase women’s participation in the workforce by 4% over five years.

The study also pointed out the disparity in the influence of political roles. A woman holding a parliamentary seat doesn’t wield the same power as a cabinet minister, and closing that gap could take centuries at the current pace.

This economic angle is critical as the world grapples with sluggish growth post-pandemic. Historically, economic growth has relied on population booms, deregulation, and cheap capital—factors that are no longer reliable.

The hostility women leaders face

But even as data screams for change, cultural attitudes and hostility remain massive roadblocks. Female politicians are facing increasing threats, both online and offline, creating a hostile environment that deters participation.

A study by Birmingham City University found that after UK MP Jo Cox was murdered in 2016, 50,000 tweets celebrated her death. That level of vitriol isn’t just disturbing—it’s dangerous. Cherie Blair pointed to a rise in rhetoric from populist governments that push narratives of women’s subservience to men.

“Last year saw a cacophony of public rhetoric, including from politicians, that championed violence against women,” she said.

The cultural bias extends beyond politics. The Reykjavik Index of Leadership, which measures attitudes toward male and female leaders in G7 economies, revealed that younger generations are more likely than their elders to favor men in leadership roles. That’s a grim sign for future progress, even in developed nations.

The Women, Business and the Law project, a World Bank initiative, identified ten areas where legal reforms could drive massive economic inclusion.

These include protections against domestic violence, access to financial resources, and educational reforms to prepare future generations of workers, particularly girls.

But the pace of change is excruciatingly slow. The report warns that achieving gender parity in cabinet-level positions could take centuries without major interventions.

Meanwhile, the economic costs of inaction are piling up. With half the global population underutilized, the world is essentially running its economy with one hand tied behind its back.

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