While the overall picture for gender equality is still gloomy, recent changes in family institutions in some countries provide an enlightening example. Developing countries are starting to reform cultural barriers to gender equality that limit their growth prospects. Morocco, Algeria, Egypt and some states of India are some examples of countries that are trying to reform institutional frameworks that limit women's participation in the labour force and their education and training. They are thus enhancing their growth prospects. They are clearly right to do so, but what obstacles do they face? How can donors support this very much needed change? Within the overall institutional setting, social institutions and cultural practices--i.e. laws, norms, traditions and codes of conduct--are often the main sources of persisting discrimination against women in developing countries. Examples include polygamy, unequal inheritance rights, obstacles to free movement and early, family-imposed marriages of teenagers. This "Policy Insights" discusses important related regional disparities; explains how all dominant religions allow for flexibility; explores the reasons for the persistence of gender discriminating cultural practices and social norms when gender equality is good for growth, economic development and poverty reduction; and demonstrates how the role of donors can achieve changes. (Contains 2 figures.)