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___________________________________________________________________________
2018/PPWE/DIA/005
Gender Inclusion and Empowerment: A Catalyst for Growth
Submitted by: UN Women
Public-Private Dialogue on Women and the Economy
Port Moresby, Papua New Guinea6 September 2018
Women in economy ForumGender inclusion and empowerment: A catalyst for growth
Susan Ferguson
Country Representative, UN Women, PNG
PNG Dept for Community Development and Religion
Australia and the Pacific Women Program
New Zealand
IFC
ILO
UN Women
Thanks to:
Equality matters
Chances for women to participate in the formal labour market worldwide remain almost 27 percentage points lower than those for men.
If the gender gap was closed globally, the global economy would improve by the combined China and USA economies
Cost of violence against women and discriminatory social practices is 12 trillion dollars annually
Women earn 30% less than men in formal sector work (pay gap)
Gender roles, especially caring responsibilities constrain women’s ability to work
A host of women’s economic activity remains in the informal sector
Some Insights
The formal economy:
• organised system of employment
• standardised relationship through a formal contract.
• works for fixed hours and receives fixed salaries
• decent work environment
• entitled to benefits such as leave, savings, loans etc.
• organised association or union
• covered under social protection benefits such as life insurance, health insurance, pension, gratuity etc.
The formal economy is counted in GDP
Govt raises revenue through taxes
Most Government policies on trade and investment cover the formal economy
Private sector: Formal economy
The informal economy:
• No written rules or agreements
• Contracts based on verbal understanding
• No fixed conditions: wages, hours -- relies on daily earnings.
• The work place often congested and unhygienic
• Workers rarely have collective advocacy
• Poor access to social protection schemes and financial services, insurance
Govt does not collect taxes; regulate; legislate or develop appropriate policies to support growth
Private sector: Informal economy
• …as employees, entrepreneurs, customers, and community partners.
• Helps companies by broadening the talent pool; increasing productivity; providing an opportunity to transform local and global markets
• Benefits result from:
• Improved human capital
• Enhanced market demand
• Enabling operating environment
• Improved human capital
• .
Formal sector: invest in women
Expand:
• Leadership in the workforce
• or in the indirect workforce along the supply chain
Improve production quality and output:
• Access to skills training
Improve talent management:
• Fair and transparent HR systems which are family friendly attract talent of both women and men
Improve innovation capacity:
• Increase gender diversity in the workforce
Improved human capital:
Women control the majority of global consumer spending: $29 trillion
Our specific needs are unmet
• Design and market to specifically service women
Consumer products don’t always reach the women’s market without specific effort
• Open up markets for women can drive growth
Market demand:
Gender challenges operating on the market, originate outside the market
• Women’s access to health and education
• Access and use of finance and technology
• Gender based violence
• Legal structure prohibiting women’s access to certain jobs
Social norms shape women and men’s participation in the formal economy
• Introduce policies that can intervene constructively in these dynamics
Operating environment:
The importance of the informal economy
The informal economy links to the formal economy
Women are overrepresented in the informal economy
• primary source of employment
• contributing to family businesses so get no direct pay
• many exposed to low pay and unsafe working conditions
• higher share in the most disadvantaged and marginalized segments of the informal economy
• More than 60 per cent of the world’s employed population earn their livelihood working in the informal economy
• Informal work exists in all countries, irrespective of the individual country’s level of socio-economic development
• major challenge, and opportunity, for sustainable development.
Safe Cities and Safe transport
Funded through Australia and New Zealand
Partnership with NCDC and District MPs
Improves women agency and safety through market interventions:
• Gender sensitive infrastructure and safe transport system
• Improving capacity of duty bearers to manage markets and transport
• Improving women’s leadership within markets and transport through vendor groups and their ability to run their own businesses
• Changing gender norms to improve safety
UN Women PNG work
Partnership with Dept for Community Development and Religion, CIMC, EU and UN Women
Some baseline data exists from 2001
PNG has a constructive informal sector policy framework
Will help develop this further
It is a global first.
PNG case study: Informal sector audit
Field work collection of data in 6 regions so far
• Looking at work for cash, not subsistence farming and care work
Total of 2500 interviews
Cross validation with 5000 phone interviews
Focus groups to interpret results
Methodology
20% of GDP, based on turnover
• $4billion US /year
Take out extractives, it’s 30%
Add in agriculture produce excluded from cash economy, it’s 60%
Over 80% of adults are employed in the informal economy
Many in waged employment also work in the informal economy
Therefore:
• around 90% rely on it for income
• Major provider of goods and services to local people (affordable, accessible and responsible for food security)
• Major contributor to local economies -- key driver plus multiplier effect.
• Positive growth since 2001
How big is the informal economy here?
More men are involved:
• In 2001: 85% women
• In 2018: 60% women
Older age groups – 35 years old on average
Better educated now than in 2001 – 20% have no schooling
15% have worked in the formal economy
2-3 unpaid workers/enterprise (more family based businesses)
Equal number of male and female helpers
Fewer children involved
Less than 5% disabled in interviews, but 20% in phone survey
Emerging trends:
80% involved in trade though lacks diversity
30% sell betel nut as main secondary source of income
20% sell fresh fruit and veg
15% sell store goods
13% sell cooked food
Formal sector workers in the informal economy:
• Let rooms
• Raise livestock
• Grow crops
10% lend money:
• Extremely high interest rates offsetting high risks
• Lending to formal sector workers
Very little access to financial services
What kinds of work are they doing?
Two thirds work in residential areas
Around a quarter in markets
The rest near offices and the highways
More would like space in markets
Enterprise start ups cost around PNG K200-300 but some spend PNGK20,000 (more likely to be men running chicken or trade stores)
Cost of doing business is increasing (transport and fees)
Virtually no borrowing; using savings to build the business
Most work more than 45 hour weeks.
What resources are used?
Net profits: PNGK300-500/week
40% spent on essentials (food and household goods)
Women are spending more on education than men
Increased discretionary spending
Around 55% make substantial savings providing for ‘rainy day’ needs
Saving for buildings and cars, expanding the business
Most save their money at home, not in banks
Outcomes for households
Managing credit!
Damage and disruption caused by drinking (unemployed young men)
Lack of shelter and access to basic services
Law and order
Roads and transport
Lack of organized wholesaling
Lack of representative structures to advocate
Lack of financial services
Difficulties getting registered as an SME
Lack of business advice and financial training
Barriers to greater productivity
They are the same in both the informal and formal economy!
BUT The actual interventions need to specifically meet diverse market needs.
Key policy areas for interventions
Formal economy Informal economy
Improved human capital Build economic capacity through skills and diversification
Enhanced market demand Establish systems and pathways that enable business growth
Enabling operating environment
Create a supportive enabling environment that strengthens business confidence
Thank [email protected]