Assessing the impact of support programmes for women's economic empowerment

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Publishing date: Thursday, 25 March 2021
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The values of respect for human dignity, freedom and equality are indispensable elements of the rule of law. Equal rights are guaranteed by the Constitution of the Republic of Moldova and the international legal instruments to which the Republic of Moldova is a party. The Republic of Moldova has made efforts to align the legal framework in the field of equality, which led to it being ranked 23rd out of 153 states according to the 2020 Gender Inequality Index  developed by the World Economic Forum. Women, however, continue to face a number of challenges related to gender inequalities in the distribution of paid and unpaid work, women's primary responsibilities for unpaid domestic work, and inequalities in access to economic opportunities, which stem from historically unequal relationships between women and men.

The economic situation of the Republic of Moldova, the difficult business environment, low employment opportunities, the educational system not adapted to the socio-economic realities create major difficulties for the entire population of the country, with women being especially affected. The Republic of Moldova has the lowest employment rate in Europe, being a country with the lowest per capita income. The economic situation is precarious, especially in rural areas. These factors put the population in difficulty. The young women and girls, and especially the vulnerable groups of women and girls, in addition to the challenges specified above, face discriminatory attitudes driven by beliefs about the role of women in the family and society, limited opportunities to make choices about their life and professional development and to participate on equal terms with men in the labour market. Thus, in order to improve the situation, the fundamental problems of the society that generate the socio-economic vulnerabilities for women must be addressed, both at the level of the society in general as well as at the individual level.

The study on the evaluation of women's economic empowerment programmes focuses on the analysis of recent programmes funded from external sources, which aim to stimulate the economic empowerment of women, including the vulnerable groups of women. At the same time, providing recommendations on making women's economic empowerment programmes and the corresponding national policies more effective, in order to make them better targeted to the most vulnerable groups and to ensure their stronger impact, is a key aspect of the evaluation. The evaluation involved experts from the Independent Analytical Centre ‘Expert-Grup’, responsible for analysing the economic aspects of women's economic empowerment programmes, and specialists from the ‘Women's Law Centre’ NGO who analysed the programmes for the economic empowerment of women from vulnerable groups. 

Economic empowerment programmes are of major importance in compensating for the deficiencies of the socio-economic system helping women to achieve the pursued economic objectives. The most successful programmes are those that provide practical training for women entrepreneurs, both in starting up a business, as well as developing it, in combination with financial support to boost the implementation of the human potential of the beneficiaries of these programmes. The women from vulnerable groups need specialised assistance to develop their personal skills, and then be referred to and integrated into entrepreneurship training and financial assistance programmes.

The Covid-19 crisis has affected both women and the operating environment of women's economic empowerment programmes. Thus, the crisis has diminished the opportunities for economic achievement for the entire population, including women. The population employment rate decreased by 8.8% at the end of the second quarter of 2020 compared to the same quarter of 2019. Women’s employment rate decreased by 10%. The women from vulnerable groups are at increased risk in such situations and need specialised assistance. Due to the restrictions determined by the state of emergency, coordinators of economic empowerment programmes had to change their approach, moving some of the activities online. Enrolment of women in vocational schools has also become more difficult, with bleaker employment prospects after graduation. In addition, women from vulnerable groups often do not have online communication equipment, and in some cases are unable to benefit from training and assistance. In times of crisis, women's assistance programmes will have to keep abreast with the new challenges posed by it (reduced economic opportunities, restricted movement, avoidance of group activities, the need to implement digital communication solutions, etc.).

Solving the problems women face when trying to access the labour market is not simple and requires a comprehensive approach. The first necessary step is to assess the main causes of the difficulties women face. And solutions must be aimed at eliminating or mitigating the impact of these causes. It is certain that opportunities for professional and entrepreneurial development are reduced in Moldova, and economic and financial education in the school education system is completely lacking. The lack of effective policies to reconcile family and professional life is a factor that affects women's economic activity. These problems can be addressed through an efficient cooperation among state authorities, international bodies, the donor community and civil society organisations, whereas others – through nationwide gender equality promotion and awareness campaigns, the revision of school curricula and increasing girls' interest and involvement in STEM.

The main purpose of economic empowerment programmes is to provide the set of skills and tools needed by women to fit into professional or entrepreneurial economic life. The most successful programmes for women offer a combination of educational and financial support, providing one-stop-shop support services. If a woman wants to develop in new areas, start a business, make a career transition, it is important to provide her with practical information in that newly selected area, mentoring and assistance as to the concrete steps in achieving these goals, assistance in dealing with external institutions: banks, tax agency, employers, educational institutions for taking additional courses, etc. In order to address some of women’s economic challenges, the optimal solution would be to offer in schools professional guidance on the most requested and prospective professions, courses on entrepreneurship and organisation of economic activities, so that young women can make more informed choices that are less influenced by the society's stereotypes.

The key recommendations for supporting women in entrepreneurship developed with the contribution of the European Business Association (EBA) are based on 4 basic pillars: business mentoring; industry leaders sharing their success stories; assistance in the implementation of programmes; financial support. Educational programs that are accompanied by mentoring have a much greater positive impact on the guided business. Practical solutions to specific business problems of the beneficiaries have, most of the times, an increased value and amplify the value of the generic courses. Inspiring women through visits to market leaders and understanding of practical solutions already in place in Moldova's economic environment ensure both practical knowledge, as well as confidence in the success of the solutions applied. Training and assistance to apply for national and international programs is one of the ‘fishing rods’ for the woman-entrepreneur to be able to successfully access assistance programmes for the selected economic field. For beginner women-entrepreneurs, financial support combined with educational assistance according to the one-stop-shop principle is critical to ensure confidence at the initial stage of the business.

Currently in the Republic of Moldova there are some programmes to support women that target vulnerable categories, but they are few and have no continuity. The primary objective of the programmes targeting women from vulnerable categories is their economic empowerment together with instilling self-confidence and helping deal with psychological problems. At the same time, the programmes dedicated to vulnerable women have a greater impact if they provide vocational or entrepreneurship courses together with the necessary financial assistance as a one-stop-shop or in partnership with other specialised institutions or programmes. 

The key recommendations for the economic empowerment of women that target vulnerable categories are the development of programs focused on their specific needs, with a holistic and multidisciplinary approach that can be achieved in partnership with various educational institutions, CSOs specializing in working with vulnerable groups, National Employment Agency and territorial structures, but also economic agents. Programs dedicated to vulnerable women will have a greater impact if they ensure access to the program as close as possible to their living environment and promote success stories.

An important recommendation is for the development agencies to assess the possibility of providing assistance for improving the infrastructure, which would directly contribute to creating enabling conditions for women to engage in economic activities. At the Women's Empowerment Forum OECD identified 4 key areas of intervention for women's economic empowerment, namely: public services, infrastructure, social protection, redistribution of household responsibilities. At the forum, it was identified that these factors affect differently the economic empowerment of women. Social protection, very important for reducing poverty and improving the quality of life, has a rather low impact on economic empowerment, whereas an infrastructure in place is an important precondition for the economic empowerment of women – a necessity neglected both at national and international level, despite the fact that it plays a key role in reducing the time needed to complete domestic chores and increasing opportunities for engaging in economic activity. The interviews confirmed the existence of barriers to assistance due to the lack of a basic infrastructure. 

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