Women and Economic Growth

  • Women and Economic Growth
    How to Foster Inclusive Growth
    Podcast
    Leading international institutions and private sector corporations have concluded that women’s economic participation is critical to global growth and prosperity. However, nearly 90 percent of nations still have laws on the books that impede women’s work, thereby undermining economic development. During her tenure at the White House, Caroline Atkinson helped to drive global agreements on inclusive growth at major international economic summits, including the commitment by G7 and G20 countries to reduce the gender gap in labor force participation by 25 percent by 2025. She will reflect on countries’ progress in meeting these targets, and the legal, structural, and cultural barriers that must be overcome to build inclusive economies.  This meeting is part of a high-level series, in collaboration with the Bill and Melinda Gates Foundation, to explore the economic effects of inequality under the law. Transcript BIGIO: Good morning, everybody. Good morning. Thank you all so much for joining us today. We’re so thrilled to have you and so thrilled to have our guest. My name is Jamille Bigio. I’m a senior fellow here in the Council’s Women and Foreign Policy program. Our program has worked with leading scholars for 15 years to analyze how elevating the status of women and girls advances U.S. foreign-policy objectives, including prosperity and stability. I want to take a moment before we begin to thank our Advisory Council members who are here with us today, as well as the Bill and Melinda Gates Foundation for its generous support for today’s session. I also just want to remind everyone that the presentation and question-and-answer period will be on the record. Today we are focused on inclusive growth. Economic analysis by leading international institutions like the International Monetary Fund and private-sector corporations have concluded that women’s economic participation is critical to global growth and prosperity. In fact, the McKinsey Global Institute estimated that increasing women’s share in the economy would add as much as $28 trillion or 26 percent to global GDP by 2025 if women played fully equal roles to men in labor markets. But while women are half the world’s population, they generate just 37 percent of global GDP. Why? We know that there are significant legal, structural, cultural barriers that limit women’s participation and undermine what they can contribute to economic growth. International institutions and governments around the world are starting to recognize that women’s economic participation actually does drive economic growth and is worth the investment in the kinds of policies and programs that will increase it. That recognition is due in part to efforts of leaders like our guest today. Caroline Atkinson is now the chief policy adviser for Google. Prior to that she was President Barack Obama’s deputy national security adviser for international economics, and she’s held senior roles at the International Monetary Fund, the U.S. Treasury Department, and the Bank of England. I want to start by noting that while serving at the White House, Caroline led the policy process to prepare for such major international economic summits as the G-7 and the G-20. And it was under her leadership that these summits, for the first time, included a goal related to female labor force participation; specifically, that countries would reduce the gender gap in their labor forces by 25 percent by 2025. Caroline, let’s start with a foundational question. What does female labor force participation have to do with economic growth? ATKINSON: Thanks, Jamille. Before I go to that, I just want to give credit where credit is due, because when we were working in the White House on this goal, we worked very closely with Jamille and her colleagues to figure out what would be a meaningful way to put pressure and put a shining spotlight on this issue. And so it was definitely a joint effort. As the McKinsey study showed, and the IMF has also done, if women were able to participate and did participate in the labor force to the same extent men did, that would be a major push in GDP and living standards around the world. And the gender gap, as we’ve called it, between male and female labor force participation varies a lot across countries. The G-20 includes a broad range of different countries, from advanced industrialized to emerging-market economies. But the gender gap, although it may vary from 10 or 15 percent in some countries—France, Canada, and others—to 40 percent in India, Indonesia, is a significant weight on the economy, just like any unemployment or failure of people to be included in the labor forces, such as in some countries, where there is a very important problem with youth unemployment. Any failure to include productive people in the labor force is a hit on economic growth and living standards. And one other thing. As we saw during the past few decades in the United States, women joining the labor force has been an important support to family incomes. We’ve seen this across countries and it helps children and future generations. BIGIO: So why do you think it was important for G-7 and G-20 countries to tackle this issue? Why did they select the target of reducing the gender gap in their labor forces by 25 percent by 2025 – and what did it take to reach a consensus on this goal? ATKINSON: As a woman, and as a woman working in professions that have generally been dominated by men, I’ve always been interested in trying to promote better working conditions, equality, and so on. At the White House, with President Obama and with the establishment of a priority on women and girls, that was obviously an important part of U.S. policy. And there was an interesting moment—a little bit of a concern was growing in some countries, Japan is a good example, France another, that aging populations would have an impact on growth, that there would be fewer workers to support nonworkers. And there was this huge pool of nonworkers, women, who could be brought into the labor force. So Prime Minister Abe began this program or policy of encouraging women. And there was a funny moment—I agreed to speak to Japanese industry about the importance of encouraging women’s participation and how to make that easier, while on a trip to Japan that I was doing with the President. And Caroline Kennedy and I—she was the ambassador to Japan—were hosting at this roundtable, which the President dropped by, but we were the chairs, if you like, and we were the only two women. The Japanese were telling us how important it was to have female participation and all the rest of it. And I was sitting there thinking, should I say something? Should I not say something? And eventually I decided to say something, and there was all sort of shuffling of their papers about why they were all men. You would have thought they would have realized to send a woman, maybe. Maybe they simply didn’t have any senior women in their companies. We then thought, this would be a nice thing to get into the G-20. There’s a sort of formula about these summits that the G-20 is supposed to be about economic growth and so on. And it is importantly about that. And every year people say we must have a much shorter communiqué; we must streamline it; we must just focus on the big issues. And we always used to say, yes, absolutely right. But secretly we would think it’s a great place to get stuff done, because through the process of the Sherpas, you can jump over some of the experts that have been wrangling with each other across countries, whether trade issues or climate, and have a line to leaders. And then leaders find it much harder to say no in a peer-group setting than to have their negotiators say no. We used to try to get things in there that the U.S. wanted. For example, we got a G-20 summit to address Ebola, which many countries didn’t want to pay attention to. And so this was like that. There was an opportunity there. It took a lot of work because everybody was able to say, oh, it’s really important to have women in the labor force; yeah, we’re all going to work hard on it. And we were saying let’s have something concrete. We need a number. We need a goal that will both force action and attract attention. We played around with different kinds of goals—we came up with this idea that wage equality, obviously that’s incredibly important. We also, by the way, have to think of something the U.S. can manage to do. Sometimes meeting ILO standards could be problematic, because the U.S. doesn’t sign up to all of them and so on. A lot of the analysis suggested this looked like low-hanging fruit. Who can argue that you shouldn’t have more opportunity for women to join the labor force? And then we made it sort of conditional, sensitive to different cultural conditions. The goal was both ambitious but not too ambitious. Every country didn’t have to all get to the same level of female labor participation. They just had to improve their current situation. So the Chinese came to me and said, well, that’s impossible, because we don’t even want to do that, because part of our development is to be richer and allow women not to have to work. We don’t even like this goal, and it would be very hard for us to convince people. The other end of the extreme, I think, was that Mexico said it’s impossible. We’re never going to manage to do this. So it was a lot of hard work to get this goal agreed to. In the end, people get tired of disagreeing. We would love to do it, my counterparts would say, but, our ministry of employment will not agree to it. So then you have to work through the department of labor, to get in touch with their counterparts. And in the end, even in China or Mexico or anywhere else, it’s like the White House is badgering us about this issue. Really, can we not manage to make this commitment? So we got it done in 2014. In one way, looking at all of the data of what’s happened since that is disappointing, because there’s been some progress, but not that much. And again, as I said, it’s just about participation. There are all these other barriers to women working that are only just being addressed. But, on the other hand, I like to be a glass-half-full person, especially at shining a spotlight on this issue and then involving the ILO, the IMF, the OECD, and others, and forcing leaders to know that there was a paragraph somewhere that committed them to actions is important and gets the wheels of governments moving. BIGIO: You’ve highlighted so well what it takes to move countries from the rhetoric, where many are stuck right now, into actual action. It often takes the kind of leadership and commitment that you identified. ATKINSON: Yeah. BIGIO: You noted some of the barriers that are keeping women out of the workforce—from laws to culture. Can you talk more about what some of these issues are? ATKINSON: Certainly social and cultural barriers. One of the countries in the G-20 is Saudi Arabia. We know that there are many barriers there. They now allow women to drive. There are very sort of practical things, like it’s hard in some countries, including Japan, to get adequate child care. In the United States, the Obama administration pushed for paid leave and parental leave. And the lack of that is still astounding. I grew up in Europe, the U.K., and the disparity is striking—the fact that in the United States there is no requirement for government or private companies to do that is a big barrier. We know that female labor-force participation tends to drop off as women get older and have children. We also know that women do 70 percent of the unpaid work, according to surveys. And I suspect there’s some flexibility in that. So when a woman is doing a full-time job and then coming home and doing the bulk of the unpaid work to keep the home going—there’s only so many hours in a day. Another barrier is the straightforward one of pay, that women, even today, even in the United States, even women like ourselves, many of us here, who are informed and lucky enough to be well educated, tend to get paid less. It’s a fact. That even happened to me at the White House. I was employed by a combination of the National Security Council and the White House. And when I got a certain promotion, they gave me the minimum. I mean, I wasn’t paying attention, because you don’t go to the White House in order to make money. But when Susan Rice, to give her credit, became national security adviser and brought in a female chief of staff, they came and said to me, you know, you’re getting paid $20,000 less than the men who had the same title. It can happen all over the place. And, of course, people are less inclined to join the labor force if they’re not going to have equal pay. The World Bank had a study that identified the barriers in different economies and legal systems, and they identified over a hundred different legal barriers for women to participate. So legal barriers also can be a problem. And obviously, countries could start off with fixing that. In fact, there’s research that making the laws equal for men and women will boost the number of women in the workforce. And there’s education. We know that women tend not to go into some of the growth areas, although there’s a big effort now to push STEM education for girls. And again, that’s cultural. Years ago, I was on the board of a great organization called the International Center for Research on Women. It looks at the lives of women and girls in emerging markets. And they did important research that showed that when women become more independent financially, they also become more powerful in the home, and domestic violence goes down. So there is a definite relationship between financial independence, ability to work, go into the labor force, and the power to be free from violence in societies. And I suppose that before you’ve got that independence, there are going to be barriers—societal barriers, and also maybe physical barriers. Men don’t necessarily want their wives to go out and get independence. The ILO looked at work earnings, job security. So women tend to be more in the informal sector with less job security than men, so they’re more likely to lose their jobs in bad economies. And then working conditions. And then there’s the question of whether women are subject to sexual abuse. And we all know that it’s not just in other societies, but very present in our own, that when you’re in a position of power, usually power over women, that that can lead sexual abuse, and that’s a big disincentive to joining the workforce. BIGIO: What can we do to address these barriers? And obviously with the commitment that the G-7 and G-20 countries have made, there are policies that we’d hope to see these countries pursuing. What’s their progress been? ATKINSON: One area where we’re not seeing progress—I’ll just start with that, because it’s incredibly important—is on wage equality and equal pay for equal work. That is something that is very difficult to get political support for, it seems, in different countries. Obviously, that would be a gold standard. Some things are just straightforward encouragement for women, whether through subsidies, whether through encouragement of teleworking, which Saudi Arabia and Italy, for example, are doing. There is the whole basket of child-care policies. In Japan, there’s very little provision of kindergarten and preschool care. In other places, encouraging private-sector and public-sector provision is important. Then there’s also the education piece. There’s a lot of places where governments are trying to find ways to encourage young women to go into different fields. Another thing—especially in my current position at Google, we talk a lot—and I believe in it—is the possibility of digital literacy, helping to close barriers around the world. And there’s a lot of evidence that, for example, small businesses that are online have access to much bigger markets. They tend to pay their workers better. They tend to grow more. That’s also true for women. And there is, unfortunately, evidence that fewer women have internet access globally. Fewer women have digital literacy. I’m not talking about coding, necessarily; I’m talking about being able to connect. And I’m sure you’ve seen stories about how a lot of craft-based industries can enormously increase their markets if they use it. So I think there is an important element there, which I haven’t seen much in the G-7, partly because some of the people who work on it don’t know that much about technology themselves maybe. Another thing that some countries have been doing—and I think it could be a powerful tool over time—is increasing transparency. So there is more reporting of where women are employed, what levels that they’re employed at. And I think that that will help to change things over time, to have a little bit of competition at the top, although—as an economist, you’re usually educated to not really believe in quotas, and so on. But over my career, I’ve become convinced of the value of numerical goals. And actually, when I was at the International Monetary Fund, there were very few senior women. And I had joined the IMF, worked there for a number of years, and all of the time I’d been there, there was tremendous lip service and pride early on in how the graduate intake had become much more balanced. But basically there was a flat line of women in leadership—very low, 12 percent. At the same time, the World Bank, which is much bigger, had, under one of its presidents, committed to raising leadership levels with a specific target. There were various sort of triggers—you had to have a short list, and every woman knows about that: you know, am I the token woman that’s being put on the short list for this unlikely job so that they check that off. But over time it was really enforced, and these charts that I was looking at in my second time at the IMF showed this flat lining, were very different. I can remember being in a meeting with a bunch of people because there then a backlash: there were all these very depressed men who now think they’re not going to get promoted, so what can we do. And I said—what goal do we have? Women in senior jobs. And I said, well, it has to be 50 percent. The whole world will end, no. And I said, I don’t mind if you even have it out a long way, but I just had this feeling that had there been such a goal 20 years earlier when I actually knew the IMF, it would not be flatlined. And some countries are looking for goals. Obviously, you’re aware of politicians who say I’m going to have half the Cabinet be female, and I think all of those things are important. Boards too, because I do think that it just makes a difference if you don’t have to think about it. BIGIO: There are studies, in fact, that have shown that until you have 30 percent representation at the table, there is not a critical mass to influence and improve the organization with a diverse workforce and diverse decision-makers. With that we’d like now to open the floor to questions from you all. If you could raise your placard and, when I call on you, state your name and your affiliation. Q: (Off mic.) ATKINSON: I was talking to some other people about Google recently, and they commented that one thing I’d said, which did not seem exceptional to me, had a set of discussions that clarified something at the beginning. Google is a technology company full of engineers. At its core, it’s an engineering and technology company. They have—and especially pushed by the current CEO, Sundar Pichai—a strong commitment to values which include inclusiveness. Because Google is so large, it does have responsibilities to engage on public policy in a way that, when it was a smaller start-up, it didn’t. There are many people who work at Google who feel very strongly about net neutrality, as you mentioned, but other things: immigration, individual rights, and so on. We are actually a company that’s trying to make innovative products which we think will be good. Now, that said, I think there has been growing awareness—but always some awareness—about the importance of fighting against discrimination in and fighting to provide an equal platform. It’s not obviously just around gender. It’s around other ways that people can be different. One area of policy, for instance, looking at artificial intelligence—I mean, machine learning is important in all tech companies, and there’s quite serious work going on in Google. Actually, it began in a lot of different places, that are now working together about looking at the issue of algorithmic bias, and doing research on that and trying to think through, with researchers, engineers, public policy people, how to avoid the problem that if you train machines on data that it self-incorporates a lot of biases, that they will then reflect those biases back. So that is an area of research that is very active, and I think that’s an area where the technology companies do have to take the lead because they are the ones that know how the algorithms work. Google has joined with some other companies to have researchers working on this. There has also, in its history, been a big tension between freedom of expression and appropriateness of content. And people that started first working at Google obviously support the First Amendment, openness, et cetera, and gradually learned, well, go outside the U.S. and the same laws do not hold. Germany has laws against hate speech, so how do you deal with that? There’s always an incredible amount of agonizing about taking a policy decision to have some content removed. Child porn was easy, in a way, because it is illegal. Also, machines are actually pretty good at any form of identifying child porn. Machines are quite good at detecting that, and then it gets removed immediately. But there are other areas that—a few years ago, before I was there, Google, for example, took a policy decision not to allow revenge porn on YouTube. You could have a debate about that. It’s not illegal, but it’s pretty unpleasant. In India, there’s rape and gang rape, which is a serious problem, and Google takes those videos down as well. I was involved in debate about that. You mentioned data. There is a lot of data. There are a lot of rules, and I think there will probably be more, and there’s certainly a lot of issues around privacy. Actually, cloud services allow companies to do their technology work in—offsite. So I think that uses of that data need to be very carefully monitored and will be carefully monitored because of privacy issues. There is lots of data that, you know, the World Bank is producing, countries are producing. One thing that I have to say is that it’s so wonderful to have everybody talking because, even at the IMF, I would notice—you know, you have to say to women, no, sit at the table. Don’t sit at the back. I know you’re thinking that you need to hurry off and finish your memo and everything, but you don’t need to do that any more than guys do around the table. Q: Ariel Meyerstein. I’m at Citi in the Sustainability Team, so we are tracking and paying attention to a lot of these issues. Another thing that is spoken about a lot right now is the future of work, and I just wonder if you’ve been thinking about how—you know, not five years from now, but 10 and 20 years from now, and how that’s going to intersect with this agenda, and what, you know, kind of will be new challenges presented by all the technological changes but also maybe opportunities. You mentioned telecommuting—but, you know, how you see that cutting both ways. When you mentioned Japan and, we—or in China, we don’t want that many workers, that’s exactly the problem we’re going to have in the gig economies. We’re going to have all these workers and what we’re going to do with them, and how’s that going to exacerbate this agenda. ATKINSON: Thank you. Just to put my cards on the table—as an economist and macroeconomist, I don’t believe that automation and technological advance will lead to a load of people who are out of work. We’ve seen so many technological advances and changes since the industrial revolution, and what matters more for the overall level of employment is the government’s sort of fiscal and monetary policy. We can’t think now what jobs there will be, although we are trying to do that to be more reassuring, but if you go back—think of your grandparents. They wouldn’t have imagined the kinds of jobs people do now. Also, if you think of sustainability around the world, there are so many poor people who need more things to have a decent life that I think imaging that there won’t be a value in producing things and in them working to produce things—I don’t think right. Now, on the other side, a lot of the concerns about future of work I think are going to spur, I hope, interventions that will help on this agenda as well. They will spur more education, more life-long education; more flexibility in the workforce, which will also help—and to help women who are moving out of the workforce at some point to come back. You mentioned teleworking, for example. So I think that an agenda that is—that is focused on making individuals better able to shift between different jobs will also help women. One other area that I don’t know that much about but I think is going to be very interesting and is—will be important, make sure that these issues are part of it, is how workers get represented. And there’s obviously a lot of questioning now about has the drop-off in unionization really been a part of why there’s increased inequality in the United States and other advanced economies. Especially in the United States, a lot of policies are tied to jobs. I mean, health insurance is the most obvious, but there are other ones—pensions and so on—in a way that presumes a certain type of employment. If we’re thinking about changing policies to reflect that, it would be very important to ensure that the gender dimension is included in that. Q: Thank you. Barbara Samuels, Global Clearinghouse of Development Finance. Inspirational to hear you and to be gathered with everyone. Would very much like to push on the belly of the beast. Right now we’re working with the political commitment of the African Union, heads of state, NEPAD, the business community with developing a precise tool to estimate job creation from infrastructure projects in Africa—direct, indirect, induced, and secondary. And when we look at—you were going through the policies, and when we really think about how can we affect this space—and of course we’re working with the support of the German government because the refugee problem, and they say it, like, we can’t—we’ve got to create jobs here, and of course from a U.S. perspective we have terrorism. And part of the agenda is women. So some of the things we’re looking at and would just love to brainstorm with you and everyone else is terms of reference. If, for example, you’re competing for a big-time contract at USAID, they will give preference if you are Deloitte, for example, and you have women-led firms as part of your consortium. So even though against a backdrop, as you know, of WTO regulations and AID architecture which says you can’t do any of those things in other countries, there is support even from the EU, it would seem, to say when you’re putting together the procurement requirements for an infrastructure project, you could actually say, listen, you’ve got to have local content, and in fact, South Africa has done that successfully with their renewable energy project. So let’s think. What are our levers? You could say procurement for local employment, you could include an allocation, like you said, for cabinet and for boards for women. You could also say for cement—supply of cement, equipment and the like. Another phenomenon that we should really push on, we would argue, is blended learning. We talk about blended finance. What about blended learning where we take free, online courses, education. How do you get infrastructure done? Project finance techniques. Why can’t we combine free, online courses with African university courses that teach you how to put together a contract that is going to meet the requirements of institutional investors in Africa and the like—second thing. Third thing is the supply of platform. Let’s have digital marketplaces where, if you are putting together a project in Africa, you can know who are the local financial advisors, engineers and the like, and you can have data fields which include gender. Fourth, performance metrics. As you said, let’s measure these things and get them out there, and so, you know, it’s a really exciting opportunity because the African institutions—the AU, NEPAD—everybody’s like, do all these things. And we’re building a platform that aspires at least to do the first. So would love to brainstorm on those things and also think through—even though Google may not be interested in power, they are the engineers that can help deliver a lot of this, so how can we build in the key private sector players to make this actually work? Thank you. ATKINSON: Thanks. Well, there’s a lot there, and I think that what you say about information—which Google is very—that’s our business—is extremely important, especially probably in those economies, and I love the idea of blended learning and, as I mentioned, the metrics. I’m a little less wedded to the idea of local content just because I think that a lot of these economies are not very competitive. They’re not very competitive because they’re not opened up. Rents are captured by the powerful people. And when you have local content, that can be a recipe for having corruption, that is not as efficient as it would be if it were brought in from overseas. Rather than saying everybody should have a cement industry, which makes no sense, it’s better to think, yes, you should build the maintenance and so on, which tends to have a labor content. So I think that having labor from working on these projects is obviously good. I’m a little concerned that the companies and the private sector—in many of these African countries is not the most efficient, and tends to have government capture. And giving them a sort of piece of every project may not be the best way to go. But the other ideas, I thought, sounded great. Q: (Off mic.) ATKINSON: Yeah. Well, it’s not just tech. I mentioned about the IMF. And one of the things that I felt there, which I still feel, is that I completely agree with you that you have to think of a way to force the goals down into the place where the hiring decisions are taken. That’s one reason why I quite like numerical stuff, because even if you just have to explain why it is that all of your recent hires have been white men, that can be a forcing function and it can be something. And, you know, the tech companies are pretty good at collecting data and so on. They can just have checklists about, you know, what’s your record in hires and why has that been. So I think that having overall goals—which, as you say, the companies tend to have very lofty and increasing focus. And at Google, I would say that it’s—over the time that I’ve been there, which is not very long—there’s been more concern about it. Not just women, there’s also obviously a massive problem about lack of representation of African Americans and Latinos in tech companies. The other thing that I found interesting—you know more about this than I—but it struck me when I was at the IMF that if you’re making decisions one by one, then it’s much harder—it’s much easier to shield the biases or to not understand it because there may be close differences between people and it’s just one person and so on. If you’re hiring in a pool or promoting in a pool, which is what we used to do at certain levels with the IMF, you can’t sort of look at each other around the table and think, oh, well, our pool for the next set of people that are going to be managers is 10 people and nine of them are white. Then you get kind of forced to change. So I feel that forcing people to look at promotions and hiring in a pooled way really helps. Now, that goes against the fact at Google of, for example, and I don’t know about other companies, of pushing down responsibilities for management to hiring managers. I have pushed quite a bit and people don’t particularly like it to say, by the way, we’re going to look at this from the office point of view and it’s not just you, X, who are hiring one person, but I want to see how that fits in the group of the eight people that are going to get hired in this round. So I think that a more conscious training-down of who’s responsible and pushing for this pooled hiring and pooled promotion is important. I also think—it’s interesting what you say about a cultural fit, because, you know, Google people talk about being “googley.” And I have said, what does that mean? Well, it means all sorts of different things. Which can mean, you know, you’re kind of comfortable, you’re friendly with them. I mean, we’ve all seen and I remember at the IMF we were all shown this great woman who was at Yale and at Harvard who’s done a lot of the unconscious bias stuff that makes you go through and see how quickly can sort things, that you have to put under men and under women—all of these men who believed that they didn’t have bias—they were super rational, well, then had to explain why their brains were wired to put the man with the briefcase and the woman in the kitchen. I think it’s good to make people do those just to confront, including me. I mean, I know I have biases, we all do. It’s a little hard to do the thing that they’ve done in orchestras where, you know, they have the person playing so that you can’t see them because I guess you could take names off. Q: (Off mic.) ATKINSON: The thing is, you need a bulk of women. It goes back to what Jamille said. You need to have enough people of any minority to feel that they’re, you know, at home in that space. And, I mean, it’s like on board membership. There is research 20 years ago now showing that companies work better when there’s more diverse decision-making, yet it’s really hard to push it. The basic thing is you just need more people in there. And then you need to make sure that they are in positions of authority. And I think that your point on a cultural fit is a very good one because it ought not to be allowed. Q: Hi. Rachel Robbins, formerly with the World Bank Group. So it was well understood in 2012 the economic implications of having women in the economic labor force globally with the WDR, the World Development Report. So your point about having targets, I completely get. But can you talk a little bit more about what is actually being done. You know, is there—is there annual reporting that companies have stepped up to? Is there a platform to share information? Is there some group of expertise within one of the international organizations that helps countries figure out solutions? I mean, they’ve all signed up to this commitment, but can you talk a little bit more about what is happening? ATKINSON: Yeah. So in one sense, progress is slow. But in another sense, a lot is happening in terms of encouraging research. The G-20 work means that in every government, in every preparation of the leaders, there are people that are accountable for thinking about these issues, thinking about how they can affect women’s labor force participation in their countries. That will step up as you get closer to 2025. And I think that’s long enough to make an investment—to not get to 2024 and then think, oh. There has been the analysis about which of the three different areas that affect participation, both on earnings, working conditions, and job security. That is all work that’s been done by the ILO. But the ILO working with the OECD and with the IMF that are all places that don’t really usually like to work together much, but have been pushed to do it by the political pressure. And Jamille can probably say more, but there is a W-20 and a W-7, which is a Woman-20 and a woman G-7, these groups that have been pushed to develop more recommendations and have those become part of the debate. So it’s a kind of long, slow process, but there is more and more analysis and more and more pressure and more and more analysis both of the facts, but also of the policies that inhibit, the barriers that are all over the place. The first thing would be to remove those, as well as affirmative policies that can help to promote women in the labor force and women getting equal pay. There is definitely more work that has been pushed as a result of this political commitment. That’s not to say there isn’t more to do. And on the private sector, there is a little bit of public shaming, which no doubt—which civil society is doing, and we all are. And then I think the sort of next steps about, OK, you may have some leadership commitment, but how does that filter down and help people to figure out the mechanisms that will lead to different outcomes is a really important piece. BIGIO: I think we have time for just one more question. ATKINSON: Or maybe take both, the two questions, and I’ll answer them together. Q: It can be short. I’m Rosemary Werrett, I’m with Observatory Group, but I also work with a microcredit group in Latin America called Pro Mujer which works for the betterment of women. My question is a little bit different. It’s a two-part question, but it’s short. Does the lack of leadership now from the White House on women and gender issues, does that affect the G-20 momentum because it takes some oxygen out of it? Secondarily, is the whole issue about harassment, sexual harassment, sexual misconduct, does that feed into the diversity argument, and does it help it now that it’s become a major media issue, a Hollywood issue, I think probably an issue around the world? So does that help your diversity effort, or does it not mean anything, or is it negative? Q: (Off mic.) ATKINSON: Yeah. So on the lack of leadership, yes, absolutely, I’m sure it sucks oxygen out. There are already a lot of processes in place that, though we wouldn’t be where we were today if there hadn’t been leadership, whether the lack of leadership now will—there’s a certain inertia forward. The other thing that’s a bit depressing. There used to be a lot of female leaders or a few female leaders in the G-20. Merkel is still there and Theresa May is there as well. But you no longer have Dilma Rousseff and—unfortunately, they all left in rather bad circumstances—President Park from Korea, and the prime minister of Thailand. I mean, there was a high point when there were all of them. But I think that in the coming year, Canada and Argentina are chairing the G-7 and the G-20 and in both cases I think that there’s interest in this issue. I think #MeToo has to help just because of consciousness-raising. I’m only worried about whether there’s going to be a backlash. And on the quotas, I think that having goals, even if you don’t call it quotas—and there are different sort of legal barriers to that, I think there are legal reasons not to. Private sector companies are not allowed to be biased against or in favor of certain demographics. So, you know, you have to be careful. But I think that goals are important, building goals into performance reviews, and that sort of thing. BIGIO: Well, please join me in thanking Caroline so much for a wonderful discussion. (Applause.) And thank you all. Have a wonderful rest of the day. Thank you. (END)
  • Women and Women's Rights
    Women Around the World: This Week
    Welcome to “Women Around the World: This Week,” a series that highlights noteworthy news related to women and U.S. foreign policy. This week’s post, covering December 30 to January 8, was compiled with support from Becky Allen, Alexandra Bro, and Anne Connell.
  • Women and Women's Rights
    #MeToo Goes Global and Crosses Multiple Boundaries
    The #MeToo campaign has spread across the globe, with women in eighty-five countries and counting using the hashtag to call attention to pervasive sexual harassment and workplace discrimination.
  • Women and Women's Rights
    Let Women Work
    Women’s advocates have long championed gender parity as a moral issue. But in the modern global economy, eliminating obstacles to women’s economic participation is also a strategic imperative.
  • Women and Economic Growth
    Women’s Contributions to Conflict Prevention and Resolution
    Play
    Despite the growing evidence that women’s participation in peace and security processes improves stability, the inclusion of women in these processes has lagged since the passage of the landmark UN Security Council Resolution 1325 in 2000. The speakers on this panel review lessons from conflict situations and provide recommendations on addressing state fragility by advancing women’s roles in conflict prevention and peacebuilding.
  • United States
    The Status of Women in the Economy
    Play
    The connection between women’s economic empowerment has been proven to be critical to economic growth and stability, but the share of women in the labor force has stagnated for two decades and significant structural and cultural barriers continue to inhibit women’s participation in the economy. This session highlights the relationship between women and economic growth and propose policy reforms to spur economic progress by elevating women’s labor force participation around the world.
  • International Economic Policy
    Fatou Bensouda on Global Women’s Issues at the Crossroads: Assessing Progress
    Play
    Fatou Bensouda, the chief prosecutor of the International Criminal Court (ICC), discusses her career at the ICC, the obstacles she has faced in her profession, and the challenges that still exist in integrating women into high level foreign policy positions.
  • China
    To Make China’s Female Entrepreneurs Count, Let’s Go Beyond Just Counting Them
    Natalie Au is an intern for Asia Studies at the Council on Foreign Relations. This week, the eighth annual Global Entrepreneurship Summit began in Hyderabad, India, focusing on the theme of “Women First, Prosperity For All.” For the first time in the history of this summit that brings together entrepreneurs and high-level politicians from around the world, women make up a majority of the 1500 entrepreneurs selected to attend. In her Opening Plenary speech, senior White House advisor Ivanka Trump articulated the increase in women entrepreneurs all over the globe and a vision of building a greater future by empowering even more women. Against this backdrop, what is the state of women's entrepreneurship in China—a nation home to the highest number of self-made female billionaires in the world and that has set a record high in venture capital investments last year despite a global slowdown? In recent years, China has often been regarded as one of the models for gender equality in women’s business and entrepreneurship. The situation does seem to be cause for optimism: in September this year, the first government-sponsored China Women’s Entrepreneurship and Innovation Contest held its finals in Hangzhou, the capital of the Zhejiang Province. Co-hosted by the state-backed nonprofit All-China Women’s Federation and the Zhejiang people’s government, the contest is said to be a response to the CCP’s call to “encourage people to do business creatively and drive innovation” that takes into account the unique circumstances of women. Indeed, China’s government and private sector have been more proactive in boosting women’s entrepreneurship than those in many other countries. China appears to appreciate the instrumental value of gender equality and women’s empowerment—that investing in women’s growth and leadership in business is not only the right thing to do, but the smart move to make for economic development. Yet making women count requires beyond simply counting women, startups, and investments. While many areas of gender inequality in China—such as politics, as discussed in a recent post by Maylin Meisenheimer—are still at the stage where merely getting enough women at the table poses a challenge, it is important to also look beneath the surface and examine what constitutes true equality even in issues where the numbers look (relatively) good. What do the numbers not reveal about the state of female entrepreneurship in China? What are the barriers remaining? And most importantly, what could the Chinese government and the private sector do to ensure both female entrepreneurs and the “She Economy” reaches its potential? It’s A Big Deal There are two main reasons why having more women entrepreneurs—or more broadly, gender equality in work—benefit China’s economic growth. First, the gender gap in work means that women are not contributing to the GDP as much as they are able to. A 2015 report by the McKinsey Global Institute estimates that in a “best-in-region” scenario where all the countries match the progress toward gender parity of the fastest-improving countries in their respective regions, China could boost GDP by $2.5 trillion in 2025, which is 20 percent more than in a “business-as-usual” case. Further, in a theoretical “full-potential” scenario where women have the same role in the labor market as men do, $4.2 trillion, or 26 percent, could be added to China’s annual GDP in 2025. Second, multiple studies have demonstrated the benefits of having women as founders or in other leadership roles in companies. For example, a study last year by the Peterson Institute for International Economics analyzed 21,980 firms in ninety-one countries and found a “positive correlation between the proportion of women in corporate leadership and firm profitability.” While correlation does not mean causation, such studies have found strong statistical links that should not be ignored. Similarly, research conducted by the Center for Talent Innovation and featured in the Harvard Business Review highlights that while most companies target women as end-users, “few effectively leverage the talent most likely to know what these end-users want and need: female employees.” This study found that for companies targeting female consumers, having women on the team improves the likelihood of success by 144 percent. Indeed, it is important to target women consumers in China: nearly 60 percent of women control family finances, managing their husbands’ salaries and deciding what to spend them on. Women are also crucial in China’s booming e-commerce market. While there are more male than female online shoppers, the latter spend more and shop online more frequently. To put the numbers into perspective, the number of online shoppers in China has steadily increased over the past decade, and as of 2016 has hit 466.7 million—more than the entire population of the United States. Tie all this together, and not being more proactive in promoting women in entrepreneurship becomes not just a matter of neglecting gender equality but also poor business sense. With all this in place, what does female entrepreneurship currently look like in China? Women Mean Business Female entrepreneurs and venture capitalists are building successful businesses in China, and make up a significant portion of the creativity and innovation that the government is trying to promote. According to the All-China Women’s Federation, Chinese women entrepreneurs have risen to a quarter of total entrepreneurs as of April this year. Moreover, China is home to both the highest number of self-made female billionaires in the world and the world’s richest self-made woman, Zhou Qunfei. Women were able to “flourish after capitalism started to take hold” due to the Communist Party promoting gender equality under Mao Zedong, explains Huang Yasheng, professor at MIT and expert in China’s entrepreneurial class. According to a white paper released by the government last year, over half of the startups in the internet plus business field are women. While the white paper never defines “internet business” and leads many to believe that this statistic refers to any business that uses the web rather than to technology startups, the statistic is nonetheless a sign of encouraging progress in women’s participation in the Chinese economy. Again focusing on e-commerce, Alibaba’s C2C e-commerce platform Taobao, the biggest in China, also reports that over 50 percent of store owners on the site are female and 46 percent of transactions are from female vendors. Barriers Remain Yet the fact that gender equity is moving forward does not mean that there are no obstacles. Currently, women entrepreneurs face a range of cultural and institutional barriers. Culturally, sexism in China is not yet a thing of the past. Earlier this year in Beijing, a Chinese investor shared his insights to success in a public presentation: “Rule number 10: we usually don’t invest in female CEOs.” Chinese technology companies invite Japanese porn stars to corporate events. Local tech firms hire “pretty cheerleaders” to “give male programmers motivation.” Women are labelled as “leftover” if unmarried by twenty-seven and pressured by their families and government campaigns to leave their careers in favor of finding a husband. Just two decades ago, sex-selective abortion and female infanticide were common, mainly due to the state’s enforced One-Child Policy and the country’s prevalent culture of son preference. These are just a few examples of deep-rooted sexism that manifest as challenges for the female entrepreneur; there are many more practices that entrench gender discrimination as the norm. Institutionally, the biggest obstacle that women entrepreneurs face is access to business capital. A 2014 Goldman Sachs report highlighting the state of female-owned small and medium sized enterprises in ten G20 countries estimates a credit gap—formal financing needed but not available—of 1.5 percent of GDP in China. Traditional assessments of credit risk rely on land ownership, credit history, and availability of collateral, disproportionately disadvantaging women and often putting them in a catch-22 situation. The report points out the need to improve formal financing for women, especially through strengthening financial infrastructure (including things such as credit bureaus and collateral registries) and developing new credit risk assessments and terms for female clients. Moving Forward Women’s entrepreneurship in China faces two main obstacles: 1) the tangible—the dearth of finance and support networks, and 2) the intangible—the cultural and societal norms that have favored men as being superior to women for centuries. The two are intertwined and alleviating one helps to curb the other. Already there are a number of government and non-governmental programs underway. From founding local business accelerators to starting Chinese chapters of international organizations, women in China have been increasingly proactive in building networks, providing training, and raising venture capital in support of each other’s entrepreneurial endeavors. The corporate sector is also stepping up: the China branch of programs such as Goldman Sachs’ “10,000 Women,” Mastercard’s “Women’s Entrepreneurship Fund,” Ernst & Young’s “Entrepreneurial Winning Women Asia-Pacific Program,” give us many reasons to be optimistic. Government initiatives have also partnered with financial institutions to issue a total of over 290 billion yuan of government-subsidized microcredit to women entrepreneurs. Moreover, while this piece focuses on tech and internet plus startups and recognizes that the challenges facing rural women’s enterprises warrant their own analysis, non-governmental programs such as the China arm of the Asia Foundation’s “Accelerate Growth” that put emphasis on rural and migrant women entrepreneurs are also crucial in ensuring that a diverse demographic can contribute to the economy and reap the benefits. What is further needed now, however, are initiatives that explicitly straddle support for innovation and women as workers. Policies that promote entrepreneurship with a gender perspective, as well as continued collaboration with non-governmental initiatives, will serve to further the potential of China’s She Economy to the benefit of not only women, but economic growth for all. Financial reforms are also necessary. The Chinese government and businesses should establish forms of credit risk assessments more suited for women, improvement of women’s property and land ownership laws, and new financial offerings that target the female entrepreneur in order to level the playing field. Only with such proactive measures will the recent surge in campaigns for women entrepreneurs truly improve both the women’s access to opportunities as well as China’s economy.
  • Women and Economic Growth
    Discriminatory Laws Cost the Middle East Billions of Dollars Annually
    As families work tirelessly to increase their income, and nations drive ever harder to spur economic growth, it can be easy to overlook the fact that the secret to growth may be hidden in plain sight. Saudi Arabia realized it when trying to end its “addiction to oil.” It can’t transform its economy without a bigger labor force, and it can’t reach its workforce targets without including women. And so, amid broader political and economic upheaval — from multi-billion dollar mega projects to an anti-corruption purge that detained many of the country’s most prominent officials — Saudi Arabia’s bid to modernize its economy included the unexpected step of permitting women to drive. This is likely not the last groundbreaking announcement from the kingdom. Because until Saudi women can work, travel, file legal claims, and otherwise engage in public life without permission from their male guardians — their father or husband, sometimes even their son —the country won’t realize the economic potential of half its population. And this is just the tip of the iceberg for the region. Widespread legal and cultural barriers restrict how women participate in society, according to a new report by the Organization for Economic Co-operation and Development (OECD), costing the Middle East and North Africa billions of dollars a year in lost income. With only 21 percent of women employed (compared to 75 percent of men), the region has the lowest rate of women’s participation in the labor force. While women are more educated and skilled than they have ever been, few work in the private sector, fewer hold senior positions in any institution, and women-owned businesses tend to be informal, home-based enterprises with little opportunity to grow. Combined this means lower productivity: women generate only 18 percent of the region’s GDP, despite accounting for half the working-age population. The McKinsey Global Institute estimates that increasing women’s participation in the workforce to the same level as men could nearly double the region’s economic output, adding $2.7 trillion dollars to the Middle East and North Africa’s GDP by 2025. Why the disparity? The OECD recently documented dozens of discriminatory provisions in family and labor laws in Algeria, Egypt, Jordan, Libya, Morocco, and Tunisia that prevent women from contributing to their countrie’s economies. In Egypt, Jordan, and Libya, for example, women need the permission of their husbands or fathers to work, and in Libya, it is considered justification for divorce if a wife travels without her husband’s permission. Across the region, laws perpetuate unequal access to assets: Family property is usually in the husband’s name, and women cannot access it if they are widowed or divorced. In Tunisia, a female heir receives half as much inheritance as a male heir; in Jordan, a 2010 regulation tightened the procedures to transfer inheritance rights after countless women were pressured to waive rights to their full inheritance. And because they have fewer personal assets, female entrepreneurs have a harder time securing a loan through collateral. Labor laws restrict women’s working hours and the sectors in which they can work, thereby limiting the employment available to women. Libyan women cannot undertake work that is not “familiar with woman’s nature”; in Jordan, the Ministry of Labor determines from which industries and jobs women are prohibited. And then there’s enforcement: Women face sexual harassment when they travel to or are in the workplace, but judges and police across the region rarely punish the perpetrators of sexual assault. Research elsewhere has documented that legal reforms can directly lead to economic and social gains. Within five years of Ethiopia removing the stipulation that husbands could stop their wives from working, women’s labor force participation increased and women were more likely to work in higher-skilled jobs. When India provided women and men the same rights to inherit joint family property, families spent twice as much on their daughters’ education and women were more likely to have bank accounts. The relationship between how much freedom women have in their homes and how easily they can contribute to society outside the domestic sphere is linear. Until women are able to freely work, travel, and own property, reforms to business regulations or other strictly economic solutions will not be enough to decrease the gender labor gap. Countries with discriminatory laws will continue to lose out until they remove the barriers preventing half their population from contributing trillions of dollars to their economy. This piece appeared originally in The Hill.
  • Women and Economic Growth
    Can Tackling Childcare Fix STEM’s Gender Diversity Problem?
    Voices from the Field features contributions from scholars and practitioners highlighting new research, thinking, and approaches to development challenges. This article is authored by Rudaba Zehra Nasir, an employment specialist in IFC’s Gender Secretariat. Nasir works with IFC client companies and partner organizations to advance women’s recruitment, retention, and promotion in the workforce through business case research, advisory services, and partnerships, such as SheWorks and Tackling Childcare. Join the conversation online about #TacklingChildcare with @WBG_Gender and @RudabaNasir.
  • Women and Economic Growth
    A Conversation with Valerie Jarrett
    I recently hosted a CFR roundtable meeting with Valerie Jarrett, senior advisor to the Obama Foundation, a board member of Lyft and Ariel Financial, and a senior advisor to the media company Attn. As one of President Obama’s closest and most trusted senior advisors from 2008 to 2016, Jarrett raised gender issues to the top of the agenda when she chaired President Obama’s White House Council on Women and Girls and oversaw the Offices of Public Engagement and Intergovernmental Affairs. While working in the Obama White House, Jarrett promoted policies like equal pay, a higher minimum wage, paid leave and sick days, affordable childcare, as well as international women’s human rights. Since leaving office, Jarrett has continued to champion women’s issues, for example in launching and co-chairing the Galvanize Program, which seeks to support women for leadership roles in political and economic life. As a new member of the board of directors for the ride-sharing app Lyft, Jarrett shared her perspective on how the gig economy can benefit women as both employees and passengers of the company. As for the software side of the gig economy, it is well known that women are under-represented in science, math, engineering, and technology—or so-called STEM jobs. As I noted in a CFR report I co-authored last year—“Women in Tech as a Driver of Economic Growth”—training more women to undertake such jobs could help close the gap in the shortage of skilled workers in the tech sector. While that report focused on low- and middle-income countries in information and communication technology, women are also under-represented in the tech sector in affluent countries such as the United States. Lyft itself issued a diversity report indicating that, though 42 percent of its total workforce identifies as female, only 18 percent of its tech team does. According to tech publication Recode, this may be comparable to—or even slightly better than—women’s representation in tech and engineering jobs at other ride-sharing services. Women and people of color appear to be underrepresented not only in jobs at the well-known ride-sharing app companies, but also at big tech companies, such as Google. The same is true of science and engineering jobs more broadly. The National Science Foundation found that, while there is gender parity in educational attainment in science and engineering, the same is not true of employment in the field. Only 18 percent of computer science employees are women, for example. And Blacks, Latinos, and Native Americans are underrepresented in both education and employment in science and engineering. As for the percentage of drivers who are women, while only twelve percent of taxi drivers nationally are women (and only one percent of cabbies in New York City), Jarrett noted that 27 percent of drivers at Lyft are women.  One survey indicates some evidence to suggest that women who drive for ride-sharing apps may earn less than men—by nearly $2 an hour—in part because women are less likely to drive peak shifts late at night on Fridays and Saturdays. One theory is that women have safety concerns about driving strangers late at night. In response to concerns about safety for female drivers and passengers, there has been a steady rise in women-only ride-sharing apps, like Safr and See Jane Go. Other countries, like India and Germany, have instituted women-only train cars. Mexico City and Jerusalem have some gender-segregated buses—motivated, respectively, by concerns about sexual harassment and by ultra-orthodox religious views concerning the mingling of men and women. Are women-only transportation options a step back—towards self-segregation or even forced segregation? Jarrett acknowledged the problem of women’s safety and discussed some of the ways in which ride-sharing services are addressing it—like the accountability provided when such ride-sharing services display a photo and the license plate of the driver. She noted that technology can be used in innovative ways to address safety concerns in this sector. The benefits for women in the gig economy include flexibility and having greater control over working hours. Drawing on her own experience of raising a daughter as a single mother, Jarrett underscored how critical such flexibility can be. The inevitable trade-off in the gig economy, however, is that flexible hours often come with less job stability, inherent in the reality of being a contingent worker. Collecting data and maintaining transparency is critical to closing the pay gap and addressing other workforce issues, Jarrett noted. She told a story about Salesforce. Two female employees approached the CEO Marc Benioff and told him that they didn’t make the same amount as their male counterparts. Benioff, known as a champion of corporate values, was surprised. He checked the numbers, found that the two women were right, and worked to close the pay gap. In STEM jobs, the issue is not just about hiring, but also about retaining women in these jobs. Women stay on average three years in computer science fields, Jarrett pointed out. The number one reason why they leave: culture. The first step to changing this culture, Jarrett implied, is to collect the data that identifies the real issue. Having women in leadership positions within a company (and on the boards of such firms) is important to changing this culture. Maiya Moncino assisted in the preparation of this post.