Is Women's Empowerment a Bureaucratic Imperative?
Times are tough. Both the European Union and the United States are facing stagnant economic growth, high levels of unemployment, excessive debt, and an aging population. I am not alone in urging the European Union and the United States to make major reforms of their labor markets as an essential step toward economic growth. Sadly, serious progress on reform has lagged behind on both sides of the Atlantic.
Yet, in at least one respect, the United States is in far better shape than the European Union. I refer to the advancement of women in business, particularly their representation on corporate boards. For the EU, compulsion is the preferred path, while in the United States, to date, voluntary action is the name of the game.
To see how the EU is marching off in the wrong regulatory direction, it is necessary to examine the recently released study of the European Commission, “Women in economic decision-making in the EU: Progress report.” Its major proposal is to require quotas for women on corporate boards—unless of course these boards reform themselves first by, ahem, “voluntary” action.
This report is the brainchild of Luxembourg’s Viviane Reding, the Vice President of the European Commission and EU Commissioner for Justice, Fundamental Rights and Citizenship. Her politics are said to be “center-right,” which only shows how bad the intellectual climate in the EU has become. The report’s slick cover features a head-shot of a self-assured black-haired woman, behind whom, off to the side, is the blurry image of a smirking gray-haired man. With a message like that, who could oppose the proposal?
You can read the rest of my weekly column for Defining Ideas here.
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Comments:
Oct '10
Re: Is Women's Empowerment a Bureaucratic Imperative?
Bureaucratic empowerment is the bureaucratic imperative, all else is window dressing.
(To see where the City is going with this issue, there is the Davies report [pdf].)
Jul '11
Re: Is Women's Empowerment a Bureaucratic Imperative?
In the name diversity should we not also enforce racial and sexual orientation quotas on board membership?
May '11
Re: Is Women's Empowerment a Bureaucratic Imperative?
There has been recent action in the auto industry.
VW Chairman Ferdinand Piech just appointed his wife to the board.
May '11
Re: Is Women's Empowerment a Bureaucratic Imperative?
We clearly have done the former for years. Ever heard of Deval Patrick?
May '11
Re: Is Women's Empowerment a Bureaucratic Imperative?
Some Law and Economics type professor should do research on how such quota appointments affect corporate governance.
It seems that the appointees' interests would not align with shareholders, but with the political system that mandated their appointment and the chairmen (or others) who selected them.
Sep '10
Re: Is Women's Empowerment a Bureaucratic Imperative?
"...Commissioner for Justice, Fundamental Rights and Citizenship."
George Orwell wasn't even that creative.
Feb '12
Re: Is Women's Empowerment a Bureaucratic Imperative?
J.-J. Rousseau, The Social Contract
The word of the L-rd.
Thanks be to G-d.
Feb '12
Re: Is Women's Empowerment a Bureaucratic Imperative?
Being Europe, that means no-show jobs for politicians' aunts and unemployed contessas. Actually, it's just like the European Commission!