By Dinna Louise C. Dayao
What would happen if women truly held up half the sky? The world would be richer by $28 trillion in 2025, said a report by think tank McKinsey Global Institute (MGI), the research arm of consulting firm McKinsey & Co.
That sum would be added to the world’s GDP, said MGI, if women took part in the global economy on the same basis as men. This impact roughly matches the size of the US and Chinese economies combined.
Gender inequality is a critical economic challenge, said the number crunchers at McKinsey. “Gender equality in society is a matter of human rights, and, by itself, it is important,” said Jonathan Woetzel, an MGI director and a lead author of the report, at a seminar at the Asian Development Bank. “We just make the point that it’s also worth a lot of money.”
All regions stand to gain a boost in GDP (gross domestic product) by bridging the gender gap (see graph).
MGI examined 95 countries that are home to 93% of the world’s women. It mapped 15 indicators of gender parity for the countries. The indicators cover gender equality in work and in society, measured across three categories: physical security and autonomy, essential services and enablers of economic opportunity, and legal protection and political voice.
Using these, MGI calculated a Gender Parity Score, which gauges how women fare at work and in society in comparison with men. Gender parity is set at 1. No country is at 1.
Gender equality in society is linked with gender equality in work. “If you want one, you have to have the other,” said Mr. Woetzel. “It’s a fairly strong correlation.”
The private sector can play a key role in boosting gender parity. Below are some companies that have taken such steps. Other companies can follow their lead.
• Investing in digital solutions and safe transport.
Vodafone designed its TecSOS mobile phone to protect women at risk. Victims of domestic violence can use the phone to call the police using a single central button. Even if they cannot talk, the police are still alerted.
With a single keystroke, callers can send location details and trigger the recording of all activity near the device. The information can be used as evidence in court. Around 32,000 women in six European countries have used TecSOS to alert emergency services.
Closing gender gaps in work and in society is good for the global economy. — Dinna Louise C. Dayao
In Indian cities, the women working on the night shift in the BPO sector make up over 40% of the total workforce. Many of them fear for their safety. In response, many firms use vehicles with tracking devices to confirm that the women safely travel to and from work.
• Providing flexible leave and work arrangements.
Vodafone has set a global minimum of 16 weeks of paid leave for new mothers. Such leaves are followed by six months during which women can work flexibly for 30 hours per week at full pay.
Rio Tinto in Australia has developed a policy on flexible work arrangements aimed at supporting employees with family duties who cannot work traditional schedules. The mining corporation offers flexible working hours and part-time and job-sharing options.
• Offering training programs for women.
General Electric, Saudi Aramco, and Tata Consultancy Services have set up an all-female business-processing center in Riyadh. The center trains new recruits.
Hennes & Mauritz in Bangladesh offers skills training for workers in the garment industry. Many of the workers are women.
• Teaching female entrepreneurs skills and leadership.
Wal-Mart Stores Inc. aims to increase its sourcing from businesses owned by women. It has launched programs that train female (and male) farmers to improve production and post-harvest practices.
Goldman Sachs sponsors the 10,000 Women initiative. The program seeks to help women entrepreneurs around the world access capital and business education.
Dinna Louise C. Dayao is a free-lance writer and editor.
