Quotas for women on boards: all the pros and cons in one place

The UK has just voted against an EU-wide quota.

The UK is opposing attempts to impose a 40 per cent quota for women on all boards for companies listed within the EU, and has just recieved enough support to block it. According to the FT, a draft letter signed by nine labour and business ministers said:

We agree with the commission’s stance that there are still too few women on the boards of publicly listed companies

[But] we reiterate that any targeted measures in this area should be devised and implemented at national level. Therefore, we do not support the adoption of legally binding provisions for women on company boards at the European level.

The FT has reported that many businesses are opposed to female quotas, with  Business Europe, the largest employers group in the EU, saying that they fail to address the real problems with equality in businesses.

It's a fraught issue, and over the last few years there's been much back-and-forth about whether quotas damage or promote women's interests. It's irritating to see the same arguments trotted out again and again, so here's a summary of some of the strongest in both directions:

Pros:

1. Here's a pretty strong one to start with: quotas are the quickest and most effective way to ensure more equal numbers of men and women on boards.

2. Quotas force the break up of elite circles that might otherwise remain unchallenged.

3. If women are promoted into positions of power, they can act as positive role models for others.

4. Once on the board, women are more likely to hire more women.

5. Quotas are not disciminatory, they simply correct existing discrimination. Is there existing discrimination? Well yes, if you a) believe that there are as many competent potential female board members as their male counterparts and b) take stock of the current imbalance in numbers.

Cons:

1. Quotas discriminate against the individual men who happen to be running against a woman for a seat.

2. If women are employed through quotas, they will be seen as "token", will be less respected and will have less power.

3. Quotas set women against each other, competing for a certain number of "women's seats", which might destroy co-operation and unity.

4. Instating a quota might lend businesses to view them as a ceiling rather than a floor on the number of women, stalling progress on equality in the long run.

So there they are. Have I missed any? Please leave a comment....

The first female doctor qualifies despite all male board. Photograph: Getty Images.

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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The Brexit slowdown is real

As Europe surges ahead, the UK is enduring its worst economic growth for five years. 

The recession that the Treasury and others forecast would follow the EU referendum never came. But there is now unmistakable evidence of an economic slowdown. 

Growth in the second quarter of this year was 0.3 per cent, which, following quarter one's 0.2 per cent, makes this the worst opening half since 2012. For individuals, growth is now almost non-existent. GDP per capita rose by just 0.1 per cent, continuing the worst living standards recovery on record. 

That Brexit helped cause the slowdown, rather than merely coincided with it, is evidenced by several facts. One is that, as George Osborne's former chief of staff Rupert Harrison observes, "the rest of Europe is booming and we're not". In the year since the EU referendum, Britain has gone from being one of the west's strongest performers to one of its weakest. 

The long-promised economic rebalancing, meanwhile, is further away than ever. Industrial production and manufacturing declined by 0.4 per cent and 0.5 per cent respectively, with only services (up 0.5 per cent) making up for the shortfall. But with real wage growth negative (falling by 0.7 per cent in the three months to May 2017), and household saving at a record low, there is limited potential for consumers to continue to power growth. The pound's sharp depreciation since the Brexit vote has cut wages (by increasing inflation) without producing a corresponding rise in exports. 

To the UK's existing defects – low productivity, low investment and low pay – new ones have been added: political uncertainty and economic instability. As the clock runs down on its departure date, Britain is drifting towards Brexit in ever-worse shape. 

George Eaton is political editor of the New Statesman.