Photo: Ricky John Molloy/norden.org

Economic violence – a serious problem for all ages

Economic violence is a common but less recognised problem than many other forms of violence. This also means that there has largely been no research conducted in this area in a Nordic context. Therefore, for the purposes of discussion, this section also refers to international sources. Economic violence can be defined as ‘behaviours that control a person’s ability to acquire, use or maintain economic resources, thereby threatening their economic security and potential for self-sufficiency’ (Adams et al., 2008). Economic violence involves situations in which a perpetrator controls, deprives or destroys a victim’s economic resources to impair their economic independence or for personal economic benefit.

Different types of economic violence

A Finnish study highlights that economic violence not only occurs in relationships between couples but can also occur against children, parents and grandparents or other relatives (Kaittila, 2017). It can include the perpetrator of violence controlling the victim’s money, not allowing them to participate in financial decisions, limiting their work opportunities and economic exploitation and economic violence in the context of separation. As economic violence is less well known than other forms of violence, victims may not recognise that they are victims of violence. There is often much shame associated with such experiences, making victims less likely to share their experiences (Kaittila, 2017). Greater knowledge about economic violence needs to be fostered in society in general. In particular, this applies to professionals who encounter victims in their daily lives, making them better equipped to respond and provide adequate support to victims.

Perpetrators of economic violence can, for example, subject the victim to:

Economic control

Controlling and monitoring the victim’s finances
Tracking or preventing the victim’s access to resources and ability to use them
Making all decisions related to joint finances themselves
Concealing information about the victim’s, their own or joint finances

Sabotaging work or studies

Limiting the victim’s work or study opportunities, for example by stopping them from applying for or taking a job, preventing career development opportunities or harassing someone at work

Economic exploitation

Spending all money for their own purposes
Accessing the victim’s bank ID and mobile phone or taking their bank card, possibly through threats and violence
Taking out loans in the victim’s name without their knowledge or by force and sabotaging the victim’s credit score
Transferring assets such as cars and houses to the other person
Romance and love scams

Economic violence following separation

Making threats in relation to the division of property
Deliberately prolonging legal processes in relation to custody disputes
Destroying joint property or property belonging to the victim
Refusing to pay child support
Economic persecution

The consequences of economic violence are far-reaching

Depriving someone of economic independence is an effective way to control them. It also has negative consequences for the victim and any children they have. In addition to worsening their economic situation, it also has a strong negative impact on their health and future prospects. Economic violence is one of the most common reasons for victims staying silent in an abusive relationship. Without stable finances, it is often particularly difficult to leave an abusive relationship. Economic violence is also not dependent on physical contact and can therefore continue long after a relationship ends. Several international studies have shown that in close relationships characterised by psychological and/or physical violence, there is almost always some form of economic violence present as well (see, for example, Kaittila, 2017; Sharp-Jeffs, 2020; KPMG Australia, 2021).

Thus, economic violence is clearly linked to other forms of domestic violence, but it can also occur independently of other forms of violence. Just like other forms of domestic violence, it tends to become more severe over time. Economic violence does not necessarily stop following a separation. An ex-partner may have opportunities to control and perpetrate economic violence even after separation, for example by exploiting joint or undivided property or child custody. After a separation, such a situation can sometimes escalate to financial stalking, whereby an ex-partner systematically tries to harm the victim financially in various ways.

The consequences of economic violence are often severe. In addition to the economic consequences, economic violence often has physical and emotional consequences for the victim. Physical consequences can manifest themselves as stress, malnutrition and poor general health. Emotional consequences can include anxiety, fear, guilt and feelings of powerlessness and worthlessness. The economic consequences for the victim can be poverty, homelessness, debt, payment defaults and personal bankruptcy. The consequences of economic violence are often prolonged and affect a victim over a long period of time (Sharp-Jeffs, 2020).

If one partner is financially dependent on the other, it is more difficult for them to leave the relationship, and an abuser can use this as a strategy to exercise power. Economic violence itself can also foster isolation, giving further control to the abuser. Socially, economic violence has major consequences. Those without money available to them can find it difficult to maintain a social life (Kaittila, 2017).

Support structures can be a source of economic empowerment for the vulnerable

While economic violence is a cause of economic vulnerability, economic vulnerability is also a risk factor for economic violence. Economic empowerment is therefore a source of protection against economic violence. Both these perspectives need to be considered when developing support structures for the vulnerable. Gender equality policy initiatives related to economic gender equality and men’s violence against women need to be more clearly linked to counteract economic violence and its consequences.

This can be achieved, for example, by taking inspiration from the UK and Australia, where social services and other relevant authorities are given resources to create and develop support systems for women and minority groups who are victims (Surviving Economic Abuse, 2022; KPMG Australia, 2021). Labour laws can also be devised to address economic violence. Currently, the link between the Istanbul Convention, a European agreement to combat violence against women, and labour law is weak. At the same time, ILO Convention 190 demonstrates the need to include issues of violence in the formulation of labour law principles. Principles relating to discrimination and harassment in labour law currently do not include economic violence – or other forms of violence. To better address the reality of victims of violence, economic violence could be introduced as a parameter in collective agreements in the Nordic labour market.

EXAMPLE FROM THE REGION

The Finnish project Taloudellinen väkivalta/Recognize the economic violence (2021–2024) develops new, multi-disciplinary support schemes for those experiencing economic violence. It also offers support and training for professionals in recognising and dealing with economic violence. The project also aims to raise awareness of the phenomenon and highlight the need for changes in support structures and practices.