This archive report was first published on 21 June 2021.
As the world grapples with the aftermath of the pandemic, it's clear that a resilient recovery will not happen without addressing the disproportionate impact on women.
Over the past year, women have been at the frontlines of coronavirus exposure, with rises in gender-based violence and unintended pregnancies. According to UN Women analysis, female unemployment rates rose faster and stayed higher, with rates of ten percent or more becoming common.
However, women did not quit the labor force any more than men did, with both keeping looking for jobs in roughly the same proportion. The rise in remote working and availability of online self-service may do away with jobs in sectors where physical presence is no longer needed, such as administration and retail.
Responding to this new reality calls for new policy instruments, including gender bonds. Governments and the financial industry could build on the success of green bonds and launch the first generation of sovereign gender bonds, which would signal political commitment to gender equality, put money behind that commitment, and help countries deal with massive debt build-ups.
Private companies and state-owned enterprises have been issuing gender bonds for years, with investors welcoming the idea and pricing it accordingly. The World Bank pioneered green bonds a decade ago, opening the door to a new generation of fixed-income instruments meant to support a cause.
Now, which will be the first nation to issue a gender bond? The pipeline and portfolio of worthy gender equality-focused projects are ready to go, as development banks and private foundations can attest. It's a question of time before a smart government connects the dots and starts a new market.
