1. IT and Women’s Labor Force Participation in the Middle East NEC Corporation Yasushi Kaito, Advisor December 8, 2004

2. 2 Contents 1. Major Issues in the Middle East 2. The Middle East Economic Growth 3. IT Industry and the New Economy & Society under Globalization 4. Proposal

3. 3 Data ： Arab Human Development Report 2003, UNDP US Bureau of Census 2002 ILO Global Employment Trends Slow Economic Growth GDP growth/person 1990 - 2000 0.7% (Asia: 6%) Small Economic Scale $600Bil (Equal to Spain) Youth Population Under 20: 45.9% Under 35: 70.8% Education System *****Productivity Brain Drain 25% of 300,000 college grads flow outside the region Uneven Distribution of Wealth ***** Declining Middle Class R&D 0.2% of GDP, Government-lead, Only 2% to IT field HighUnemployment 2003: 13.3% Youth: 27% (World Avg.:6.2%) Materialistic/Power-orientedMaterialistic/Power-oriented Isolation from Global Trends Isolation from Global Trends RegionalInstabilityRegionalInstability 1. Major Issues in the Middle East GenderInequality Small Foreign Direct Investment

4. 4 1-1. Small Foreign Direct Investment Investment Balance198019902000 Outward World Share Ranking 3.7% 8th 11.7% 3rd 4.7% 8th Inward World Share Ranking 0.5% 28th 0.5% 28th 0.9% 22nd ・ Japan, EU & USA share trends of FDI balance (%) EU USA Japan Data: 2002 JETRO White Paper on International Trade & Foreign Direct Investment World Bank MENA Development Report -Foreign Direct Investment (2000): $2.2Bil (only 1% of total investments to developing countries) - FDI against GDP JapanMiddle East 19902002 Mid-East & North Africa 0.6%0.9% Latin America 0.7%2.7% East Asia 1.6%3.1% Japan 0.1%0.2% World Avg. 1.0%2.0%

5. 5 Data: 2004 World Development Indicators 1-2. Gender Inequality 2 4 6 4 7 8 10 9 14 18 25 12 32 Middle East Labor Force Gender Parity Index: Ratio of the percentage of women who are economically active to the percentage of men who are Labor Force Gender Parity Index: Ratio of the percentage of women who are economically active to the percentage of men who are

6. 6 Employment Rate for Women 1980 52.1 ％ 2002 62.4 ％ Data: The Yomiuri Shimbun, others Male Female 1-3. Japanese Women’s Advancement into Society

7. 7 2002 Latin America & Caribbean East Asia & Pacific Europe & Central Asia South Asia Middle East & North Africa Sub-Saharan Africa Data: 2004 World Development Indicators Remarkable growth in manufacturing World’s manufacturing base Immense market Remarkable growth in manufacturing World’s manufacturing base Immense market (Billion $ ） 2. The Middle East Economic Growth 2-1. GDP Comparison by Region: 1980-2002

8. 8 Economic Growth Human Capital Physical Capital （ Capital Development ） Natural Capital （ Natural Resources ） Total Factor Productivity (Technology) + (Institution) ・ Adult literacy （ M/F) 76%/55% (83%/70%) ・ Female Employment Rate 33.8% (60.3%) ・ Education does not meet societal needs Vs. GDP percentage ・ Foreign capital vs. inward investment 0.9% (2.5%) ・ Private investment 50.2% (55.9%) ・ Rich energy resources ・ World share of product exports 4% (1990)  3% (2002) ・ % of high-tech product exports 2% (17%) ・ Articles on science & technology 3,617 （ 5% of developing countries ） Data: 2004 World Development Indicators （ ）： Developing country avg. Adult ： 15 years or older * Data as of 2002 Annual Avg. Growth (1990 - 2002) Middle East: 3.2% （ East Asia: 7.3% ） （ Developing country avg.: 3.4% ） Per Capita Growth (1990 - 2000) Middle East: 0.7% (East Asia: 6.0%) (Developing country avg.: 2.0%) （ ）： Developing country avg. 2-2. Analysis on the Slow Economic Growth

9. 9 New World Economy Service Knowledge-centered Society IT Industry Reference Data: “High Noon,” J.F.Rischard “Strategies for Industries in Japan,” Yoko Ishikura, etc. 3. IT Industry & the New Economy and Society under Globalization Technological Innovation Technological Innovation Economic Innovation Economic Innovation STRESS Adaptation to New Rules: *Speed *Borderless * Knowledge-Intensive *Severe Competition STRESS Adaptation to New Rules: *Speed *Borderless * Knowledge-Intensive *Severe Competition CHANCES 1. New Product/ New Market 2. End of Inflation 3. Improvement of Productivity CHANCES 1. New Product/ New Market 2. End of Inflation 3. Improvement of Productivity

10. 10 Added Value Human Power IT Industry Virtual Creating New Society Localization Localized Business Networking Borderless Business Anyone Regardless of Nationality/Gender Anywhere Regardless of Workplace Anytime Regardless of Working Time Affordable Low Start-Up Cost 3-1. Characteristics of the IT Industry IT Industry: -Great Potential for Growth “Women-Friendly” -Huge Capacity for Absorbing Labor Force

11. 11 3-2. Women-Friendly IT Works IT Industry: - Offers chances to skilled women (foreign language, law, finance, etc) - Allows homemakers to work at home (SOHO) Work-at-Home ・ Data Input ・ Translation ・ Call CenterEducation-Related ・ IT EducationDesigning ・ Web Site ・ ContentsTechnology-Oriented ・ Software Design ・ IT Consulting Entry-Level Troubleshooting -No Customer Info Required -No Advanced Skill Required Virtual Call Center Customer

12. 12 We should deepen business interactions between Japan & the Middle East in the field of human capital through the following activities: 1) Work on issues shared by Japan and the Middle East to increase women’s participation in the IT society women’s participation in the IT society - Set up a place for interactions among women in IT businesses - Set up a place for interactions among women in IT businesses in Japan and the Middle East; in Japan and the Middle East; 2) (In future) Establish venture capital funds and foster female IT entrepreneurs entrepreneurs (FYI) Japanese Community Site for Improving Women’s Activities: (FYI) Japanese Community Site for Improving Women’s Activities: “eWoman” http: //www.ewoman.co.jp “eWoman” http: //www.ewoman.co.jp 4. Proposal