What Jumps Out: Gender Gap

This past weekend, in honor of International Women’s Day, the United Nations office locally launched a campaign to seek more equality in Colombia, and boy, is it needed. In a country that is bestrid by machismo and where female unemployment, according to DANE, stands at 15.8% versus 8.6% for their male counterparts, urgent action is required.

Colombia is however something of a paradox. Despite this wanton female unemployment, it has for some years, especially in Latam, been held up as a country with a plentiful amount of female executives—visiting clients frequently commented upon it. I have met with innumerable talented female executives who acted as true role models over the years. Whilst at Bancolombia, I went through the statistics, and they seemed to add up.

Nonetheless, for several years now, we have been inundated locally with panels, think tanks, seminars, webinars, and other women’s groups lobbying for higher female participation in executive roles, boards of directors, etc. However, beyond the fear of slippage towards quotas, which never works, there is the sensation that this adds up to nothing more than “Jobs for the Girls”. These groups are 90% populated by women who are from the same ruling elite who have always enjoyed the same privileges as the men in the same class.

Whilst well-intentioned, it is impossible for them to truly understand the circumstances of the vast majority of women living in Colombia. They may make headlines and create a good photo, but they have had zero impact on moving the overall employment needle. It is instead for the authorities, government at both national and local levels, to form a truly robust strategy to change the direction of travel. At all levels of Colombian society, there are millions of talented women, the opportunities must be found to allow their advancement.

Elsewhere, February inflation data from Departamento Administrativo Nacional de Estadística—DANE Colombia was released on Friday, and it was higher (5.28%) than the 5.17% consensus and also up from 5.22% in January. The main driver was housing, which contributed around 30% of the increase. Education also rose a significant 5% YoY. There are no concerns yet, but with a fast expanding economy, CPI is proving more stubborn than expected by many. Overnight rates remain at 9.5%, and it remains to be seen what Banco de la República—Colombia will do in a few weeks.

Last week, Fitch Ratings (BB+) lowered their outlook to negative due to ongoing concerns about the fiscal situation, and Ministerio de Hacienda Diego Guevara also has it in mind. Having cut $3 billion USD of 2025 spending due to the failure to pass a new tax reform, Guevara is again talking about further cuts to spending, although he is also not ruling out another tax reform.

About it for this Monday.

Have a wonderful week.

Roops.

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Photo credit: MULTIMEDIOSDS from Pixabay.