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Briefing   DeAnne Aguirre
           Leila Hoteit
           Christine Rupp
           Karim Sabbagh




Empowering the
Third Billion
Women and the
World of Work in 2012
Nearly 1 billion women around the world will enter the global economy during the
    coming decade. They are poised to play a significant role in countries around the
    world—as significant as that of the billion-plus populations of India and China. Yet
    this “third billion” has not received sufficient attention from governments, business
    leaders, or other key decision makers in many countries. This represents a missed
    opportunity; greater involvement from women has an impact beyond what their
    numbers would suggest. For example, women are more likely than men to invest
    a large proportion of their household income in the education of their children.
    As those children grow up, their improved status becomes a positive social and
    economic factor in their society. Thus, even small increases in the opportunities
    available to women, and some release of the cultural and political constraints that
    hold them back, can lead to dramatic economic and social benefits.

    There is compelling evidence that women can be powerful drivers of economic
    growth. For example, our estimates, which are conservative, indicate that if female
    employment rates were to match male rates in the United States, it would boost
    overall GDP by 5 percent. In Japan, such initiatives could increase GDP by 9
    percent. In developing economies, the effect is even more pronounced. The United
    Arab Emirates would see a boost of 12 percent in GDP, and the Egyptian economy
    would grow by 34 percent.

    To empower women—as employees, producers, and business owners—and
    strengthen the impact of their contribution, government and business leaders
    will need a better understanding of the most effective levers available to them.
    Depending on the circumstances of each country, these measures might include
    infrastructure improvements (such as safe roads for travel to work), the removal of
    legal restrictions on female participation in the workforce, more cultural support for
    female leadership, or more inclusive approaches to risk and credit. To identify the
    factors more closely, Booz & Company created the Third Billion Index, a ranking
    of 128 countries worldwide that is based on how effectively leaders are empowering
    women as economic agents in the marketplace.

    The index is a composite of established data on women’s economic and social status,
    drawn from sources including the World Economic Forum and the Economist
    Intelligence Unit. Although several global organizations already track statistics
    related to women’s issues and publish their own nation-by-nation rankings, the
    Third Billion Index is unique in that it focuses specifically on women in the world of
    work. We recognize that other foundational needs are important, such as political
    participation, legal status equal to that of men, and access to healthcare. Our
    goal, however, is to isolate the factors that facilitate women’s access into the larger
    economy—as either employees or entrepreneurs—and determine specific ways that
    government and business can improve that access.

    The Third Billion Index groups the indicators of women’s economic standing into
    two separate clusters. The first is “inputs,” meaning steps that governments and the
    private sector can take to improve the economic position of women. These inputs
    include laws and policies regarding minimum schooling, employment policies during
    and after childbirth, and access to credit.




2                                                                           Booz & Company
Guidelines:
                                                                                                                              11.0 million

                                                                                                                              aölkdfölka
    The index also considers “outputs,” meaning the social, political, and economic
    issues that are affected by changes in the inputs. These include the ratio of pay                                         32.8%
    between women and men as well as the proportion of women among technical
                                                                                                                               30.1%
    workers, senior business leaders, and employees. A combination of the input and
    output factors for a country determines its overall index ranking (see Exhibit 1).
                                                                                                                               TABLE HE

                                                                                                                              A4 format:
    Exhibit 1                                                                                                                 - width for 3
    Components of the Booz & Company Third Billion Index                                                                      - width for 2

                                                                                                                              Letter forma
                                                                                                                              - width for 3
                                                                                                                              - width for 2
                                                       Third Billion Index
                                                                                                                              Lines: 0,5 pt
                                                                                                                              Lines for leg
                                Inputs                                                     Outputs

                                                                                                                              Note:
                            Access-to-         Entrepreneurial                                                                Please alway
       Preparation          Work Policy           Support               Inclusion        Advancement           Equal Pay      otherwise In
                                                                                                                              file.
                                                                                                                              These colors
    - Ratio of female    - Equal pay for      - Access to             - Female-to-male - Female-to-male - Equal pay for
      to male literacy     equal work policy technology and             ratio among       ratio among         equal work in   Approved C
      rate                                      energy                  wage employees professional and practice
                         - Nondiscrimination                                              technical workers
    - Overall literacy     policy             - Property              - Female-to-male
      rate for women                            ownership rights        ratio of wages  - Female-to-male
                         - Maternity and                                                  ratio among
    - Ratio of female      paternity leave    - Support and           - Female-to-male    legislators, senior
      to male enrollment provision              development             ratio of          officials, and
      in secondary                              training for owners participation in      managers
      education          - Access to child      of SMEs                 the labor force
                           care                                                         - Female-to-male
    - Level of primary                        - Women’s access                            ratio among
      and secondary      - Legal restrictions to finance programs                         employers
      education among on certain job
      women                types for women - Ability to build
                                                credit history
    - Ratio of female to
      male enrollment in                      - Availability of
      tertiary education                        private-sector credit

    - Mean years of                          - Delivery of
      schooling                                financial services

    - Level of tertiary
      education among
      women



    Source: World Economic Forum; Economist Intelligence Unit; Booz & Company analysis




3                                                                                                        Booz & Company
KEY FINDINGS

                         The results of the index lead to several striking conclusions about government
                         practices and women’s economic progress. First, there is a clear correlation between
                         the front-end processes and policies regarding women’s economic opportunities
                         (inputs) and the actual success of women in their national economies (outputs). We
                         discovered this by clustering 128 countries into five broad categories based on their
                         index rankings (see Exhibit 2). The countries with a strong set of inputs, labeled
                         “on the path to success,” universally also have strong outputs. These are typically
                         developed economies such as Australia, Canada, Denmark, Finland, France,
                         Germany, and Norway.



                         Exhibit 2
                         Five Country Clusters, Based on Performance in Economically Empowering Women


                                                                   THE THIRD BILLION INDEX
                               Outputs
                                80         Average Zone                                                             Finland
                                                                                                          Canada                    Australia
                                           On the Path to Success
Average Zone                               At the Starting Gate                                       Germany                             Norway
                                70         Taking the Right Steps
On the Path to Success                                                                                 France
                                           Forging Their Own Path                 South Africa
At the Starting Gate                                                                                                                       Sweden
                                60         Average                                                      Singapore
                                                                             China                                                          Belgium
Taking the Right Steps
                                                                Tanzania
Forging Their Own Path                                                                                                                   Netherlands
                                50
Average
                                           Chad                                                               Brazil        Italy   United States
                                                                                                     Argentina
                                40                                                  Egypt                              Japan
                                                                   India
                                                        Sudan     Morocco                            Kuwait
                                30
                                                                      Syria         Turkey           United Arab Emirates
                                              Yemen                       Jordan
                                                              Pakistan           Saudi Arabia
                                20
                                     20                30                   40                  50                     60                   70
                                                                                    Inputs


                         Source: Third Billion Index (Booz & Company); data from World Economic Forum and Economist Intelligence Unit 




                         We identified four other clusters. Just behind the “path to success” countries are
                         those that are “taking the right steps.” They have implemented a slate of input
                         policies and are just beginning to see their efforts pay off. These countries, which
                         include Malaysia, Tunisia, and Venezuela, vary widely in other political and social
                         dimensions; however, they have all moved onto the path of empowering women. It
                         will probably take a generation for these measures to generate significant outputs,
                         but the data suggests that they will all be beneficially affected.

                         We also defined a small number of countries as “forging their own path.” They are
                         seeing modest output results, but have not yet established a strong foundation of
                         inputs. These countries include Botswana, Cambodia, and China. In the future, the
                         countries in these two groups are likely to be among the most dynamic in terms of
                         economically empowering women.

                         The next group of countries, labeled “average,” includes those that have taken
                         modest steps to improve inputs to women’s economic progress and have seen
                         commensurate output results. These countries, which include Colombia, Serbia,
                         and Thailand, will need to invest more on the input side to move onto the “path
                         to success.”




          4                                                                                                                            Booz & Company
Finally, there are countries that have not yet systematically approached the problem
    at all. They have correspondingly worse performance. These are said to be “at
    the starting gate” and include countries such as Indonesia, Laos, and Nigeria.
    This category accounts for the largest number of the 128 countries, suggesting an
    immense economic opportunity in many parts of the world.

    Perhaps the most significant finding from the Third Billion Index is the impact
    of “inputs” and “outputs” on “outcomes.” We defined “outcomes” as broader
    indications of well-being, including per capita GDP, literacy rates, access to
    education, and infant mortality. These transcend gender-related effects and
    represent improvements to society at large.

    The data shows a very strong correlation between index scores and beneficial
    outcomes. Such a relationship indicates that positive steps intended to economically
    empower women not only contribute to the immediate goals of mobilizing the
    female workforce, but also lead to broader gains for all citizens in such areas as
    economic prosperity, health, early childhood development, security, and freedom.

    This is a crucial conclusion. The idea has been a consistent theme in the literature
    of women’s issues, but it is typically argued with anecdotal rather than quantitative
    evidence. Our findings give compelling numerical evidence of a correlation between
    women’s economic participation and a country’s general economic growth and well-
    being. They strongly suggest that the economic advancement of women doesn’t just
    empower women but also leads to greater overall prosperity.

    In short, even when setting aside legislative measures to improve women’s quality
    of life, or setting standards for the number of high-level positions held by women,
    government leaders have several precise levers they can pull to economically
    empower their female citizens. For example, they can foster more forms of financial
    credit or take steps to improve women’s literacy. Countries that pull these levers are
    producing results.

    The full version of this report, available at Booz.com, includes a more detailed
    discussion of the Third Billion Index methodology and results. In addition, it
    includes in-depth profiles of 10 countries that have a range of geographies and are
    at varying stages of economic development, which Booz & Company compiled in
    conjunction with local experts in the private sector, academia, and government
    within each nation:

    •	   Argentina (35th—“On the Path to Success”)
    •	   Brazil (46th—“On the Path to Success”)
    •	   China (58th—“Forging Their Own Path”)
    •	   Germany (8th—“On the Path to Success”)
    •	   India (115th—“At the Starting Gate”)
    •	   Italy (33th—“On the Path to Success”)
    •	   Japan (43th—“Taking the Right Steps”)
    •	   South Africa (36th—“On the Path to Success”)
    •	   Tanzania (85th—“At the Starting Gate”)
    •	   United States (30th—“On the Path to Success”)

    In addition, we profiled three countries from the Middle East and North Africa
    (MENA) region: Egypt (108th), Saudi Arabia (123rd), and the United Arab Emirates
    (109th), which are all “at the starting gate.” In focusing on this region, we wanted




5                                                                           Booz & Company
to highlight the remarkable socioeconomic transitions currently under way, and
    to show that women represent a crucial part of those changes. Economically,
    the women of the MENA region have tremendous potential that is not yet being
    realized. Women’s labor force participation in MENA countries is just 26 percent,
    lower than that in South Asia (35 percent) and sub-Saharan Africa (61 percent).
    Women hold ownership positions in only 20 percent of businesses in the MENA
    region, compared to 32 percent in OECD countries and 39 percent in Latin America
    and the Caribbean. Yet even small advances in women’s status in this region
    correlate clearly to economic growth.



    COMMON CHALLENGES

    All countries have unique requirements and must combine specific input policies
    to create a solution that can best address those needs. However, our research has
    also identified several common challenges that women face, in countries ranging
    from Germany to Egypt to Mexico to Tanzania. Regardless of a country’s stage of
    economic development, or its performance in empowering women thus far, women
    experience a similar set of issues.

    The first is the care economy. Around the world, women are the primary caregivers
    for children, the elderly, and the sick, and this burden hampers their economic
    development. Women in OECD countries spend about 2.4 hours more than men on
    unpaid work (including care work) each day. If companies and governments want to
    see women reach their maximum economic potential, these organizations must play
    a role in helping to provide high-quality, accessible care for vulnerable populations.

    In addition, in every country in the world, women require investments—financial,
    educational, and cultural—in their future. None of these investments can stand
    alone. Allocating capital for investment in women’s businesses is fruitless if women
    do not have the education to run a business successfully, or the cultural perception
    that they can compete economically with men.

    Lack of credit is another common theme. Although microfinancing has helped
    launch many women-owned businesses, these schemes also risk limiting such
    businesses to tiny operations in the service sector, instead of helping foster
    larger operations.

    Finally, in all areas of women’s economic empowerment, there is a need for detailed,
    frequently updated, and gender-disaggregated data—so interested parties can better
    understand the issues that women face and more effectively frame solutions. This
    includes data on access to capital, property rights, and small and medium-sized
    enterprise (SME) ownership, among other issues.

    Addressing these issues will require a set of solutions tailored to individual
    countries, with cooperation from governments, the private sector, and NGOs. Yet
    the universality of these challenges shows that solutions in one part of the world will
    likely apply elsewhere as well, and that best practices will transcend borders.




6                                                                           Booz & Company
CONCLUSION

    Ultimately, the Third Billion consists of many individual women around the world—
    each with her own personality, needs, obstacles, hopes, and desires. Yet the global
    economy does not have the luxury of addressing this crucial group in a leisurely
    fashion, one woman at a time. Sweeping institutional changes at the national,
    regional, and global levels can help women everywhere reach their full economic
    potential and make the contributions necessary to keep the global economy moving
    forward. These changes will benefit individuals directly—a tobacco farmer in
    Tanzania, a social media entrepreneur in China, a graphic designer in the United
    Arab Emirates, or a middle manager in Germany. But beyond the impact to any
    individual woman, the broader benefit will be to the community around her, the
    national economy she is supporting, and the world at large.




    About the Authors

    DeAnne Aguirre is a senior         focuses on human capital         Karim Sabbagh is a senior
    partner with Booz & Company        development, which               partner with Booz & Company
    based in San Francisco. She        encompasses education,           in Dubai and Riyadh and
    is the global leader for the       training, and women’s            the Middle East practice
    firm’s people and change           economic empowerment.            leader. He specializes in
    team, and has led transforma-                                       sector-level development
    tions in both U.S. and global      Christine Rupp is a partner      strategies, institutional
    corporations.                      with Booz & Company based        and regulatory reforms,
                                       in Stuttgart, aligned with the   large-scale privatization
    Leila Hoteit is a principal with   firm’s communications, media,    programs, and strategy-
    Booz & Company based in            and technology practice.         based transformations. He is
    Abu Dhabi. She specializes in      She specializes in cost          the chairman of the Ideation
    policy development, strategic      transformation and B2B sales,    Center, the firm’s think tank
    planning, and organizational       and is a telecommunications      in the Middle East focusing
    development and governance         expert with a strong focus on    on social and economic
    for the public sector. She also    mobile operators.                development.




    Booz & Company principal Reid Carpenter, associate Mounira Jamjoom, and associate
    Sindhu Kutty also contributed to this report.




7                                                                                    Booz & Company
Booz & Company is a leading global management
consulting firm focused on serving and shaping the
senior agenda of the world’s leading institutions.
Our founder, Edwin Booz, launched the profession
when he established the first management consulting
firm in Chicago in 1914. Today, we operate globally
with more than 3,000 people in 58 offices around
the world.

We believe passionately that essential advantage lies
within and that a few differentiating capabilities
drive any organization’s identity and success. We
work with our clients to discover and build those
capabilities that give them the right to win their
chosen markets.

We are a firm of practical strategists known for our
functional expertise, industry foresight, and “sleeves
rolled up” approach to working with our clients.
To learn more about Booz & Company or to access
its thought leadership, visit booz.com. Our award-
winning management magazine, strategy+business,
is available at strategy-business.com.



Contact Information

Abu Dhabi                   San Francisco
Leila Hoteit                DeAnne Aguirre
Principal                   Senior Partner
+971-2-699-2400             +1-415-627-3330
leila.hoteit@booz.com       deanne.aguirre@booz.com

Dubai                       Stuttgart
Karim Sabbagh               Christine Rupp
Senior Partner              Partner
+971-4-390-0260             +49-711-34226-916
karim.sabbagh@booz.com      christine.rupp@booz.com




©2012 Booz & Company Inc.                                Booz & Company

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Empowering the Third Billion: Women and the World of Work 2012

  • 1. Briefing DeAnne Aguirre Leila Hoteit Christine Rupp Karim Sabbagh Empowering the Third Billion Women and the World of Work in 2012
  • 2. Nearly 1 billion women around the world will enter the global economy during the coming decade. They are poised to play a significant role in countries around the world—as significant as that of the billion-plus populations of India and China. Yet this “third billion” has not received sufficient attention from governments, business leaders, or other key decision makers in many countries. This represents a missed opportunity; greater involvement from women has an impact beyond what their numbers would suggest. For example, women are more likely than men to invest a large proportion of their household income in the education of their children. As those children grow up, their improved status becomes a positive social and economic factor in their society. Thus, even small increases in the opportunities available to women, and some release of the cultural and political constraints that hold them back, can lead to dramatic economic and social benefits. There is compelling evidence that women can be powerful drivers of economic growth. For example, our estimates, which are conservative, indicate that if female employment rates were to match male rates in the United States, it would boost overall GDP by 5 percent. In Japan, such initiatives could increase GDP by 9 percent. In developing economies, the effect is even more pronounced. The United Arab Emirates would see a boost of 12 percent in GDP, and the Egyptian economy would grow by 34 percent. To empower women—as employees, producers, and business owners—and strengthen the impact of their contribution, government and business leaders will need a better understanding of the most effective levers available to them. Depending on the circumstances of each country, these measures might include infrastructure improvements (such as safe roads for travel to work), the removal of legal restrictions on female participation in the workforce, more cultural support for female leadership, or more inclusive approaches to risk and credit. To identify the factors more closely, Booz & Company created the Third Billion Index, a ranking of 128 countries worldwide that is based on how effectively leaders are empowering women as economic agents in the marketplace. The index is a composite of established data on women’s economic and social status, drawn from sources including the World Economic Forum and the Economist Intelligence Unit. Although several global organizations already track statistics related to women’s issues and publish their own nation-by-nation rankings, the Third Billion Index is unique in that it focuses specifically on women in the world of work. We recognize that other foundational needs are important, such as political participation, legal status equal to that of men, and access to healthcare. Our goal, however, is to isolate the factors that facilitate women’s access into the larger economy—as either employees or entrepreneurs—and determine specific ways that government and business can improve that access. The Third Billion Index groups the indicators of women’s economic standing into two separate clusters. The first is “inputs,” meaning steps that governments and the private sector can take to improve the economic position of women. These inputs include laws and policies regarding minimum schooling, employment policies during and after childbirth, and access to credit. 2 Booz & Company
  • 3. Guidelines: 11.0 million aölkdfölka The index also considers “outputs,” meaning the social, political, and economic issues that are affected by changes in the inputs. These include the ratio of pay 32.8% between women and men as well as the proportion of women among technical 30.1% workers, senior business leaders, and employees. A combination of the input and output factors for a country determines its overall index ranking (see Exhibit 1). TABLE HE A4 format: Exhibit 1 - width for 3 Components of the Booz & Company Third Billion Index - width for 2 Letter forma - width for 3 - width for 2 Third Billion Index Lines: 0,5 pt Lines for leg Inputs Outputs Note: Access-to- Entrepreneurial Please alway Preparation Work Policy Support Inclusion Advancement Equal Pay otherwise In file. These colors - Ratio of female - Equal pay for - Access to - Female-to-male - Female-to-male - Equal pay for to male literacy equal work policy technology and ratio among ratio among equal work in Approved C rate energy wage employees professional and practice - Nondiscrimination technical workers - Overall literacy policy - Property - Female-to-male rate for women ownership rights ratio of wages - Female-to-male - Maternity and ratio among - Ratio of female paternity leave - Support and - Female-to-male legislators, senior to male enrollment provision development ratio of officials, and in secondary training for owners participation in managers education - Access to child of SMEs the labor force care - Female-to-male - Level of primary - Women’s access ratio among and secondary - Legal restrictions to finance programs employers education among on certain job women types for women - Ability to build credit history - Ratio of female to male enrollment in - Availability of tertiary education private-sector credit - Mean years of - Delivery of schooling financial services - Level of tertiary education among women Source: World Economic Forum; Economist Intelligence Unit; Booz & Company analysis 3 Booz & Company
  • 4. KEY FINDINGS The results of the index lead to several striking conclusions about government practices and women’s economic progress. First, there is a clear correlation between the front-end processes and policies regarding women’s economic opportunities (inputs) and the actual success of women in their national economies (outputs). We discovered this by clustering 128 countries into five broad categories based on their index rankings (see Exhibit 2). The countries with a strong set of inputs, labeled “on the path to success,” universally also have strong outputs. These are typically developed economies such as Australia, Canada, Denmark, Finland, France, Germany, and Norway. Exhibit 2 Five Country Clusters, Based on Performance in Economically Empowering Women THE THIRD BILLION INDEX Outputs 80 Average Zone Finland Canada Australia On the Path to Success Average Zone At the Starting Gate Germany Norway 70 Taking the Right Steps On the Path to Success France Forging Their Own Path South Africa At the Starting Gate Sweden 60 Average Singapore China Belgium Taking the Right Steps Tanzania Forging Their Own Path Netherlands 50 Average Chad Brazil Italy United States Argentina 40 Egypt Japan India Sudan Morocco Kuwait 30 Syria Turkey United Arab Emirates Yemen Jordan Pakistan Saudi Arabia 20 20 30 40 50 60 70 Inputs Source: Third Billion Index (Booz & Company); data from World Economic Forum and Economist Intelligence Unit  We identified four other clusters. Just behind the “path to success” countries are those that are “taking the right steps.” They have implemented a slate of input policies and are just beginning to see their efforts pay off. These countries, which include Malaysia, Tunisia, and Venezuela, vary widely in other political and social dimensions; however, they have all moved onto the path of empowering women. It will probably take a generation for these measures to generate significant outputs, but the data suggests that they will all be beneficially affected. We also defined a small number of countries as “forging their own path.” They are seeing modest output results, but have not yet established a strong foundation of inputs. These countries include Botswana, Cambodia, and China. In the future, the countries in these two groups are likely to be among the most dynamic in terms of economically empowering women. The next group of countries, labeled “average,” includes those that have taken modest steps to improve inputs to women’s economic progress and have seen commensurate output results. These countries, which include Colombia, Serbia, and Thailand, will need to invest more on the input side to move onto the “path to success.” 4 Booz & Company
  • 5. Finally, there are countries that have not yet systematically approached the problem at all. They have correspondingly worse performance. These are said to be “at the starting gate” and include countries such as Indonesia, Laos, and Nigeria. This category accounts for the largest number of the 128 countries, suggesting an immense economic opportunity in many parts of the world. Perhaps the most significant finding from the Third Billion Index is the impact of “inputs” and “outputs” on “outcomes.” We defined “outcomes” as broader indications of well-being, including per capita GDP, literacy rates, access to education, and infant mortality. These transcend gender-related effects and represent improvements to society at large. The data shows a very strong correlation between index scores and beneficial outcomes. Such a relationship indicates that positive steps intended to economically empower women not only contribute to the immediate goals of mobilizing the female workforce, but also lead to broader gains for all citizens in such areas as economic prosperity, health, early childhood development, security, and freedom. This is a crucial conclusion. The idea has been a consistent theme in the literature of women’s issues, but it is typically argued with anecdotal rather than quantitative evidence. Our findings give compelling numerical evidence of a correlation between women’s economic participation and a country’s general economic growth and well- being. They strongly suggest that the economic advancement of women doesn’t just empower women but also leads to greater overall prosperity. In short, even when setting aside legislative measures to improve women’s quality of life, or setting standards for the number of high-level positions held by women, government leaders have several precise levers they can pull to economically empower their female citizens. For example, they can foster more forms of financial credit or take steps to improve women’s literacy. Countries that pull these levers are producing results. The full version of this report, available at Booz.com, includes a more detailed discussion of the Third Billion Index methodology and results. In addition, it includes in-depth profiles of 10 countries that have a range of geographies and are at varying stages of economic development, which Booz & Company compiled in conjunction with local experts in the private sector, academia, and government within each nation: • Argentina (35th—“On the Path to Success”) • Brazil (46th—“On the Path to Success”) • China (58th—“Forging Their Own Path”) • Germany (8th—“On the Path to Success”) • India (115th—“At the Starting Gate”) • Italy (33th—“On the Path to Success”) • Japan (43th—“Taking the Right Steps”) • South Africa (36th—“On the Path to Success”) • Tanzania (85th—“At the Starting Gate”) • United States (30th—“On the Path to Success”) In addition, we profiled three countries from the Middle East and North Africa (MENA) region: Egypt (108th), Saudi Arabia (123rd), and the United Arab Emirates (109th), which are all “at the starting gate.” In focusing on this region, we wanted 5 Booz & Company
  • 6. to highlight the remarkable socioeconomic transitions currently under way, and to show that women represent a crucial part of those changes. Economically, the women of the MENA region have tremendous potential that is not yet being realized. Women’s labor force participation in MENA countries is just 26 percent, lower than that in South Asia (35 percent) and sub-Saharan Africa (61 percent). Women hold ownership positions in only 20 percent of businesses in the MENA region, compared to 32 percent in OECD countries and 39 percent in Latin America and the Caribbean. Yet even small advances in women’s status in this region correlate clearly to economic growth. COMMON CHALLENGES All countries have unique requirements and must combine specific input policies to create a solution that can best address those needs. However, our research has also identified several common challenges that women face, in countries ranging from Germany to Egypt to Mexico to Tanzania. Regardless of a country’s stage of economic development, or its performance in empowering women thus far, women experience a similar set of issues. The first is the care economy. Around the world, women are the primary caregivers for children, the elderly, and the sick, and this burden hampers their economic development. Women in OECD countries spend about 2.4 hours more than men on unpaid work (including care work) each day. If companies and governments want to see women reach their maximum economic potential, these organizations must play a role in helping to provide high-quality, accessible care for vulnerable populations. In addition, in every country in the world, women require investments—financial, educational, and cultural—in their future. None of these investments can stand alone. Allocating capital for investment in women’s businesses is fruitless if women do not have the education to run a business successfully, or the cultural perception that they can compete economically with men. Lack of credit is another common theme. Although microfinancing has helped launch many women-owned businesses, these schemes also risk limiting such businesses to tiny operations in the service sector, instead of helping foster larger operations. Finally, in all areas of women’s economic empowerment, there is a need for detailed, frequently updated, and gender-disaggregated data—so interested parties can better understand the issues that women face and more effectively frame solutions. This includes data on access to capital, property rights, and small and medium-sized enterprise (SME) ownership, among other issues. Addressing these issues will require a set of solutions tailored to individual countries, with cooperation from governments, the private sector, and NGOs. Yet the universality of these challenges shows that solutions in one part of the world will likely apply elsewhere as well, and that best practices will transcend borders. 6 Booz & Company
  • 7. CONCLUSION Ultimately, the Third Billion consists of many individual women around the world— each with her own personality, needs, obstacles, hopes, and desires. Yet the global economy does not have the luxury of addressing this crucial group in a leisurely fashion, one woman at a time. Sweeping institutional changes at the national, regional, and global levels can help women everywhere reach their full economic potential and make the contributions necessary to keep the global economy moving forward. These changes will benefit individuals directly—a tobacco farmer in Tanzania, a social media entrepreneur in China, a graphic designer in the United Arab Emirates, or a middle manager in Germany. But beyond the impact to any individual woman, the broader benefit will be to the community around her, the national economy she is supporting, and the world at large. About the Authors DeAnne Aguirre is a senior focuses on human capital Karim Sabbagh is a senior partner with Booz & Company development, which partner with Booz & Company based in San Francisco. She encompasses education, in Dubai and Riyadh and is the global leader for the training, and women’s the Middle East practice firm’s people and change economic empowerment. leader. He specializes in team, and has led transforma- sector-level development tions in both U.S. and global Christine Rupp is a partner strategies, institutional corporations. with Booz & Company based and regulatory reforms, in Stuttgart, aligned with the large-scale privatization Leila Hoteit is a principal with firm’s communications, media, programs, and strategy- Booz & Company based in and technology practice. based transformations. He is Abu Dhabi. She specializes in She specializes in cost the chairman of the Ideation policy development, strategic transformation and B2B sales, Center, the firm’s think tank planning, and organizational and is a telecommunications in the Middle East focusing development and governance expert with a strong focus on on social and economic for the public sector. She also mobile operators. development. Booz & Company principal Reid Carpenter, associate Mounira Jamjoom, and associate Sindhu Kutty also contributed to this report. 7 Booz & Company
  • 8. Booz & Company is a leading global management consulting firm focused on serving and shaping the senior agenda of the world’s leading institutions. Our founder, Edwin Booz, launched the profession when he established the first management consulting firm in Chicago in 1914. Today, we operate globally with more than 3,000 people in 58 offices around the world. We believe passionately that essential advantage lies within and that a few differentiating capabilities drive any organization’s identity and success. We work with our clients to discover and build those capabilities that give them the right to win their chosen markets. We are a firm of practical strategists known for our functional expertise, industry foresight, and “sleeves rolled up” approach to working with our clients. To learn more about Booz & Company or to access its thought leadership, visit booz.com. Our award- winning management magazine, strategy+business, is available at strategy-business.com. Contact Information Abu Dhabi San Francisco Leila Hoteit DeAnne Aguirre Principal Senior Partner +971-2-699-2400 +1-415-627-3330 leila.hoteit@booz.com deanne.aguirre@booz.com Dubai Stuttgart Karim Sabbagh Christine Rupp Senior Partner Partner +971-4-390-0260 +49-711-34226-916 karim.sabbagh@booz.com christine.rupp@booz.com ©2012 Booz & Company Inc. Booz & Company