The Issue

Poverty remains one of the globe’s most pressing challenges, and women and girls are disproportionately impacted. The World Food Program estimates that 7 out of 10 of the world’s hungry are women and girls. Women’s funds are proving that investments in women can power lasting changes to both family and community poverty.

Women as Assets to Overcome Poverty

When we invest in women the potential for economic development is striking:

• The UN reported in 2001 that eliminating gender inequality in the labor market in Latin America would increase national output by 5%.
• Research in Africa shows that investing in women’s education and leadership can increase agricultural yields by more than 20%. For example, a 1996 study conducted in Kenya estimated that crop yields could rise up to 22% if women farmers enjoyed the same education and decision-making authority as men.
• Worldwide the Women’s Learning Partnership estimates that for every year beyond fourth grade that girls attend school, wages rise 20%, child deaths drop 10% and family size drops 20%.
• Evidence from micro-credit lenders indicates that women have superior repayment records, invest more productively and are more risk-averse.

Why Invest in Women-led Solutions?

Because women are most impacted by poverty, they also hold the greatest potential to eliminate it. Yet this potential remains largely untapped: women remain the missing piece in solving the poverty puzzle.

When women do gain access to economic opportunities, the potential for development is striking -- The Economist has called women “the most powerful engine” of global economic growth, estimating that over the past decade, they have contributed more to such growth than China. At the same time, focusing on women-led solutions is a proven strategy for tackling poverty’s many manifestations, such as violence, disease and the educational underachievement of children.

The Women's Funding Network has joined UNIFEM -- the United Nations Development Fund for Women -- and others to call for increased investment in women-led solutions to combat global poverty.

How Women’s Funds Are Responding

Over 80% of women's funds prioritize investments in programs that build economic opportunity for women and combat poverty. Their work empowers women experiencing poverty to devise solutions with lasting impact. Women's funds' work to tackle poverty focuses on four key areas:

1. Building Entrepreneurship: Women's funds promote women's business ownership, microfinance efforts, or ways to provide women with access to micro-loans, financial markets, and financial literacy and business training.

2. Asset-Building and Financial Literacy: Women's funds support women’s financial empowerment by championing women’s land rights and property ownership as well as through investments in matched savings programs, financial literacy and training.

3. Better Jobs: Women’s funds invest in strategies to improve wages, working conditions, labor standards, benefits, and training opportunities for women workers.

4. Investing in Children: Women’s funds invest in programs that promote quality, affordable child care and prioritize girls' education.

All these strategies are seeing proven results in creating enduring ladders out of poverty for women and families.