THE WORLD would be richer by $28 trillion in 2025, according to a McKinsey Global Institute (MGI) report, if women took part in the global economy on the same basis as men. (See main story)
But what if realizing that potential isn’t doable in the short term? MGI puts forward a “best-in-region” scenario. In this scenario, all countries boost women’s equality at the same rate as the best-performing country in their region. This would add $12 trillion to annual GDP by 2025, said the think tank.
Let’s look at the Philippines. Which is the fastest-improving country in our region in terms of female labor force participation rate? And what lessons in advancing gender parity can we learn from that country?
This writer e-mailed these questions to Anu Madgavkar, a McKinsey Global Institute partner and a lead author of the report. Below are her replies.
HIGH-FLYING SINGAPORE
“Singapore is the fastest-improving country in East and South East Asia, in terms of the female labor force participation rate for women aged 25-54 years or the prime working age of women compared to that of men,” said Ms. Madgavkar.
As a percentage of the labor force, from 2004 to 2013 2004 to 2013, more Singaporean women than Filipino women entered the workforce. In 2004, Singapore’s prime age female labor force participation rate was 67.7%; in 2013, it was 77.1% — a 9% increase.
In contrast, the Philippines’s prime age female labor force participation rate increased slightly from 58.4% in 2004 to 60.3% in 2013. This is an increase of about two percentage points, significantly lower than the increase seen in Singapore.
KEY LESSONS
How did the city state enable more women to take part in the labor market? Ms. Madgavkar lists six lessons that the Philippines can learn from Singapore.
1. Focus on the health of women.
Declining fertility, better access to family planning, and lower maternal mortality result in higher education levels for girls. Ultimately, these lead to more women is the workforce.
In Singapore, there are only six maternal deaths per 100,000 births. This is the lowest maternal mortality rate in the region.
In contrast, 120 Filipinas die per 100,000 births. This rate is among the higher ones in the region.
In the city state, 11% of women in marriages/partnerships have an unmet need for family planning. This is less than that of the Philippines, which is 21%.
Next steps: Close gaps in family planning and maternal health. Expand the number of health workers, and develop emergency services to cover rural areas for the care of mothers. Improve supply chains for contraceptives. Launch more school- and community-based programs and mass media campaigns for sex education for all citizens.
2. Offer greater flexibility in the workplace.
McKinsey’s Women Matter research worldwide suggests that flexible work models help keep women in the company and help them find their way to the top. And men need to be open to flexible programs as well, to encourage more equity in both unpaid and paid work.
Next steps: Promote better work-life balance in companies through maternity and paternity leave policies and flexible work policies, like what Singapore’s Ministry of Manpower has been doing.
City Developments Limited has a “Mummy’s Room,” where female employees can express milk and store it in the fridge. McDonald’s Singapore provides part-timers with full-time benefits, including medical and annual leave.
3. Give women greater access to financial services and to computers and the Internet.
“Our analysis across 95 countries suggests that financial inclusion is a pivotal factor, correlated with labor participation around the world,” said Ms. Madgavkar.
Fewer women in the Philippines have access to financial services compared to those in Singapore. Only 34% of Filipino women have a bank account or similar payments/savings account. This is much lower than Singapore’s 96%.
Next steps: Launch policies for universal access to savings and credit accounts on mobile devices. Promote digital and financial literacy among women.
4. Keep women in school longer.
Higher education levels generally lead to greater female participation and higher productivity and earnings for women. Singapore has 10.2 mean years of education, more than 8.9 years for the Philippines. The difference is most likely to be at the tertiary level.
Next steps: Help women earn college degrees. Reshape secondary and tertiary curricula to equip students with employable skills, for example, through vocational training programs.
5. Provide the infrastructure and services that will ease women’s burden of unpaid work.
MGI’s report found that, all over the world, women do three times as much unpaid work as men do. While women care for children and the elderly or cook and clean, they cannot look for paying jobs.
“No comparable data exists for the Philippines and Singapore that can benchmark the amount of unpaid work that women in the two countries do,” said Ms. Madgavkar. “However, good public infrastructure for transportation, child care, and healthcare services are generally associated with women being able to enter the workplace for a paid job and hence reducing their share of unpaid work.” Singapore’s urban setting and focus on infrastructure and amenities in many areas likely helps women in the workplace.
Next steps: Create an environment in which state-funded, employer-assisted, or market-driven essential services can flourish to address unpaid work.
6. Create jobs for women.
Singapore has been focusing on policies to attract investment in sectors such as knowledge-based services, healthcare, tourism, manufacturing and R&D to create more jobs for women.
Next steps: Ensure a vibrant job market. Create demand for more female workers.
THE BOTTOM LINE
If the Philippines matched Singapore’s progress toward gender parity, how much would be added to its GDP?
“Achieving the same rate of progress in narrowing gender gaps in labor force participation, hours worked, and sectors in which men and women work would enable the Philippines to achieve additional GDP of $40 billion in 2025,” said Ms. Madgavkar. “This sum is 9% higher than the business-as-usual scenario.”
It’s high time the Philippines learned from Singapore. Let’s get with the parity program and unlock the economic value of women. — Dinna Louise C. Dayao
