The use of gender responsive budgeting (GRB) – the process of assessing the implications for women and men of any planned action, including legislation, policies and programmes – by governments worldwide is becoming more prevalent as nations pursue more equitable and just societies.
GRB has become a vital tool that helps government address and reduce gender disparities, especially when they have become embedded in public policies. Its aim is to make sure that men and women benefit equally from any planned action, and that inequality is not perpetuated. In contrast to traditional budgeting methods, GRB typically involves analysis of budgetary allocations in order to identify (and mitigate) potential gender biases.
Gender equality improvements could lead to an increase in GDP per capita of 6%-10% by 2050
A new report from ACCA, Gender Responsive Budgeting: Unlocking the potential, looks at the implementation of GRB across Eastern Europe, Eurasia and the Middle East, stressing that there is no one-size-fits-all approach.
Strong case
The report looks at the case for GRB across these regions. ‘More equal economies benefit from higher rates of employment and increased growth,’ it argues, ‘and in the last decade, several studies have demonstrated that inequalities carry a significant economic cost.’
The European Institute for Gender Equality, for example, has estimated that improvements in gender equality could lead to an increase in EU GDP per capita of between 1.5% and 2% by 2030, and between 6% and 10% by 2050. Data from the World Bank, meanwhile, shows that women across countries in Eastern Europe, Eurasia and the Middle East are less likely to work in formal employment and have fewer opportunities for business expansion or career progression.
Austria is one of a handful of countries worldwide to have integrated GRB into its constitution, making gender equality one of nine elements against which budget proposals are assessed. While Austria’s gender budgeting strategy has been a success, there remain a few issues to be ironed out, including the varying quality of measures and indicators.
Successful implementation can be hampered by limited data and insufficient resources
The report looks in detail at the role of professional accountants in GRB who are, it argues, ‘uniquely placed to play a central role in driving GRB to contribute to a more equitable and inclusive society’. In particular, professional accountants have the skills to analyse gender-disaggregated data, develop gender-sensitive performance indicators, ensure that budget allocations are designed to address gender disparities, and monitor and evaluate the effectiveness of GRB policies after implementation.
But effective development of GRB, it adds, will also require institutional support. Implementation can be hampered by a number of challenges including limited data, insufficient resources, and the absence of guidance or a methodological basis.
Training staff in GRB is essential, as is buy-in from senior management
The right conditions
The report sets out the conditions that must be present for GRB to be implemented effectively:
- Political commitment, including sufficient allocation of resources. The report notes that the COP28 Cities Alliance panel on women’s participation in climate action across the Middle East and North Africa region is a good example of political commitment in action.
- An all-of-government approach. This means coordination between finance functions and relevant ministries to make sure that the agreed process is carried out at each level.
- Institutional capacity. Training staff in GRB is essential, as is buy-in from senior management. ‘As part of this,’ says the report, ‘both women and men must be in decision-making roles in these organisations and have an equal seat at the table.’
- Systematic collection of gender-disaggregated data. This is essential for identifying challenges so policies can be targeted effectively. The report notes that a lack of data is often an obstacle to GRB, advising that quantitative data collected by national and local government institutions should be supplemented by data from NGOs or community groups.
The report details the GRB experiences of ACCA members and others from across Eastern Europe, Eurasia and the Middle East, and makes a number of recommendations for policymakers in the regions as they move towards adoption:
- Build institutional capacity and awareness. Dedicated functions should be set up within government ministries and state-owned enterprises, for example, to oversee GRB implementation and provide technical support. Investment in comprehensive training for staff is also essential.
- Strengthen data collection and analysis. Interdepartmental collaboration between government agencies and official statistical agencies, says the report, is key to improving data quality and accessibility.
- Learn from best practice. The OECD has published best practices that are intended to guide governments towards implementing the core elements that will help raise the standard of GRB. Learning from other countries that have already taken steps to implement GRB, and benchmarking against peers, will also support effective implementation.
- Establish inter-ministerial collaboration and partnerships. The report suggests establishing inter-ministerial committees to coordinate GRB across government.
- Champion gender-balanced leadership and decision-making. Increased representation of women in leadership roles across government departments and state-owned enterprises will encourage diverse perspectives and the implementation of GRB.
The report concludes with a call to action for policymakers and governments internationally to engage with GRB as key to driving inclusive growth and systemic change, ‘while building a society in which gender equality is not just an aspiration but a reality’.
More information
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