MENA Women in the Economy Rabat, December 8-9, 2005 (Conclusions) Nadereh Chamlou Senior Advisor to the Chief Economist Economic and Sector Work The Middle East and North Africa Region

Where are we today and… …what progress have we made? “We are not where we were…we are not where we want to be” Rumi – Masnavi (Book VI, )

Extensive investment in social indicators…because of shortfall in empowerment indicators

Women remain an untapped resource Actual: predicted ratio Note: AFR4 = Cameroon, Ghana, Kenya and Senegal. EAP4 = Indonesia, Malaysia, the Philippines and Thailand; EAC2 = Hungary and Poland and LAC4 = Argentina, Brazil, Chile, and Mexico. Bahrain and Kuwait estimates are based on total female participation in the labor force (which includes foreign workers) Source: World Bank staff estimates Ratio of Actual to Predicted Female Participation in MENA and Selected Countries and Regions, 1980 and 2000

Characteristics of women in the labor market Female Unemployment Rates by Educational Level in MENA Countries, Various Years

women leave the labor force when married and with children.

Why? Differential Treatment under the Law Unequal rights and powers in the private sphere Unequal access to public sphere as interaction with state may be mediated through a male kin: –Centrality of the family –Concept of male breadwinner –Concept of equity rather equality – defined roles –Code of modesty - “Protection” of women’s honor

The Effect of Differential Sex-based Treatment under the Law Example: Implicit cost can function like a sex-based minimum wage A minimum wage is imposed for men. This divides the labor market into two segments. Employment in the Covered Market with decline --- employment in the Uncovered Market will rise (assuming that men and women are perfect substitutes.) Upward sloping female labor supply curve raises wages – to minimum wage level. Results in decline in employment and the use of other factors of production, such as capital and energy. Increase, causing a leftward shift of the demand curve for male labor (form D 0 to D 1 ). Total employment declines. Source: The Economics of Gender (Joyce Jacobson)

Female labor force participation and higher overall employment Empirical evidence does not support the claim that women’s increased labor force participation increases unemployment

MENA’s low female labor force participation has a high cost to society as well as families. The highest dependency ratio in the world. Ratio of 2:1, compared with East Asia, where it is nearly 1:1.

What needs to be done – next steps Advocate that gender equality is not just for the sake of women. It promotes the welfare of families, advances growth of the economy, and benefits society in general. Integrate gender agenda into the ‘New Development Model’ for the region. Consistency between constitutional rights and legislation. Regulation to create a level playing field for men and women in the workplace. Education enhancement to create marketable skills. Investments in infrastructure to support women’s work and family duties.

Paid family leave is a crucial vehicle for securing working parents time for caregiving, especially during children’s earliest years. Paid leave also affects gender equality. Access to paid leave raises the probability that a new mother will have returned to employment one year after childbirth, and it raises the probability that she will return to the same employer.

Early childhood education and care (ECEC) programs help parents balance the demands of employment and parenthood; quality care enhances child well-being. ECEC programs also affect gender equality. When care is unavailable, unaffordable, or of insufficient quality, many women forgo employment.

Days and hours of supervised care

Framework for Implementation

Pillar (1): Access to public resources – gender policies and budgeting Gender equality is an integral part of good governance: Inclusiveness: (women’s participation and gender issues in decision making) Accountability: (provision of appropriate services to women) Gender-inclusive growth strategy – economic policies have different impacts on men and women Gender-inclusive growth strategy – economic policies have different impacts on men and women Gender as a criterion for prioritizing policy and investment choices (“gender budgeting”) Gender as a criterion for prioritizing policy and investment choices (“gender budgeting”) Gender-inclusive “mapping” of stakeholders Gender-inclusive “mapping” of stakeholders Pillar (2) : Access to wage employment and benefits Pillar (3) : Access to asset creating opportunities Key entry points Reducing gender barriers in and to labor markets Reducing gender barriers in and to labor markets Providing gender equal pensions, laws and regulations Providing gender equal pensions, laws and regulations Actual and potential labor force participation rates, unemploy- ment and underemployment, gender gaps in wages and benefits, and horizontal and vertical job segregation Actual and potential labor force participation rates, unemploy- ment and underemployment, gender gaps in wages and benefits, and horizontal and vertical job segregation Reduce gender-specific barriers to business and wealth creation Reduce gender-specific barriers to business and wealth creation Promote opportunities for women’s Promote opportunities for women’s Participation in the private sector as entrepreneurs, producers, and investors; Participation in the private sector as entrepreneurs, producers, and investors; Ability to effect gender- responsive decision making Ability to effect gender- responsive decision making

Entry Point (1) : Gender and Governance Women’s Access to Public Resources Gender equality is an integral part of good governance: Respecting everyone’s rights and taking everyone’s needs into account.  Twin pillars of good governance: Inclusiveness (women’s political participation) Accountability (state leadership)  Gender-intelligent Policies and Gender Budgeting

Entry Point (2) : The Private Sector Women’s Access to Employment and Pensions Private Sector discriminates more against women than the public sector  understanding the reasons and putting in place mitigating measures. Removing unnecessary gender-based protection and benefits  creating a level playing field. Using the reform agenda to put into question gender-based status quo and laws

Entry Point (3) : Self-Employment Women’s Access to Asset Creation Women’s friendly investment climate Access to information Access to finance at all scales, not just micro Access to networks Work/family balance Improved infrastructure

Competitive Markets—Essential Conditions Efficient markets – when …the ‘right’ product is produced …. ….at the ‘right’ price …. … by the ‘right’ worker.

Efficiency of Markets depends: All agents have equal access and control over assets All agents have equal access to information All agents have equal freedom to act on this information All agents face equal institutional incentives and constraints – rules of the game

Efficiency of Markets depends: All agents have equal access and control over assets All agents have equal access to information All agents have equal freedom to act on this information All agents face equal institutional incentives and constraints – rules of the game

Gender and Efficient Markets The tenets of efficient markets is congruent to definition of gender equality: –Equal Access to opportunity –Equal voice –Equal treatment under the law

Thank you