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Women's Economic Opportunity Index

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Women's Economic Opportunity Index Women’s economic opportunity A new pilot index and global ranking from the Economist Intelligence Unit Findings and methodology Women’s economic opportunity A new global index and ranking Preface Women’s economic opportunity: A new global index and ranking, is an Economist Intelligence Unit publication. It presents the results of a global benchmarking model built and scored by the Economist Intelligence Unit. Leila Butt, Senior Economist, was the research manager, working with Leo Abruzzese, the company’s Editorial Director in North America. William Shallcross advised on construction of the model and Mike Kenny was responsible for layout and design. We would like to thank the researchers, economists and gender specialists from dozens of organisations who lent their expertise to this project. This publication was funded by the World Bank through a Trust Fund fi nanced by various donors. June 2010 For further information, please contact: Economist Intelligence Unit Leila Butt, Research Manager: [email protected]/+1 212 698 9715 Joanne McKenna, Press Offi cer: [email protected]/+ 44 (0)20 7576 8188 http://www.eiu.com/sponsor/weo The fi ndings, interpretation, and conclusions expressed herein are those of the author(s) and do not necessarily refl ect the views of the World Bank, its Board of Executive Directors or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colours, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 1 © Economist Intelligence Unit Limited 2010 Women’s economic opportunity A new global index and ranking Acknowledgements The following economists, researchers, gender specialists and country analysts contributed to the report. We thank them for their participation. Economist Intelligence Unit specialists and contributors Justin Alexander, John Andrew, Pascale Balze, Anjalika Bardalai, Tomas Brynjolfsson, Sam Campbell, Margaret Cauley, Sara Constantino, Annamaria De Crescenzio, Vladimir Dohnal, Madelaine Drohan, Clare Dunkley, Kevin Dunning, Christopher Eads, Tom Ehrbar, Stephen Evans, Hilary Ewing, Rory Fyfe, Arzu Geybullayeva, Edward George, Aiden Glendinning, Paula Gosis, Megan Greene, Philip Gunson, Ann-Louise Hagger, Joan Hoey, Toby Iles, Maya Imberg, Duncan Innes-Ker, Ben Jones, Bernard Kennedy, Stephen Keppel, Jane Kinninmont, Monika Kubik-Kwiatkowska, Michele Labrut, Joseph Lake, Gareth Leather, Joanna Lillis, Andrea Machin, Dan Martin, Alice Mummery, Jiri Nadoba, Tunde Obadina, James Owen, Robert Powell, Neil Prothero, Fung Siu, Krisztina Radosavljevic-Szilagyi, Patrick Raleigh, Rebecca Ridley, Margarida Matos Rosa, Federico Barriga Salazar, Mohammed Shakeel, Ondine Smulders, Linda Spahia, Paul Stubbs, Seek- Mui Sum, Sergei Souglobine, Daniela Terzi-Barbarosie, Pat Thaker, Keren Uziyel, Marja Novak Vogric, Philip Walker, Gerard Walsh, Karol Zemek. External contributors Maria Jose Alcala (United Nations Development Fund for Women), Laura Ardito (Steptoe & Johnson LLP), Alberto Chaia (McKinsey & Company), Letty Chiwara (United Nations Development Fund for Women), Hanny Cueva Beteta (United Nations Development Fund for Women), Denis Drechsler (previously of the Organisation for Economic Co-operation and Development, Development Centre), Katherine Giscombe (Catalyst), Caren Grown (American University), Tim Hanstad (Rural Development Institute), Neville Howlett (PricewaterhouseCoopers), Johannes Jutting (Organisation for Economic Co-operation and Development, Development Centre), Sophie Lambin (PricewaterhouseCoopers), Sandra Lawson (Goldman Sachs), Lex Mundi and its global network of leading independent law fi rms, Duncan Mayall (Pelham Bell Pottinger), Rekha Mehra (International Centre for Research on Women), Lesa Mitchell (Kaufmann Foundation), Inez Murray (Women’s World Banking), Virginia Seitz (Millennium Challenge Corporation), Christine Shields (Standard Chartered Bank), Janet Stotsky (International Monetary Fund). Special thanks to the following international experts for their advice and comments: Richard Carey (Organisation for Economic Co-operation and Development, Development Assistance Committee), Geeta Rao Gupta (International Center for Research on Women), Ricardo Hausmann (Harvard University), Laura Liswood (Council of Women World Leaders), Jim O’Neill (Goldman Sachs), John Page (Brookings Institution). 2 © Economist Intelligence Unit Limited 2010 Women’s economic opportunity A new global index and ranking Table of contents Executive summary 4 Overall Women’s Economic Opportunity rankings table 7 Rankings by income classifi cations 8 Regional performance 9 Scoring criteria and categories 10 Potential drivers of women’s economic opportunity 12 1 Labour Policy and Practice 13 2 Access to Finance 23 3 Education and Training 29 4 Women’s Legal and Social Status 34 Methodology 39 Country pages 45 Appendix I 103 The economic research behind selected indicators 1 Labour Policy and Practice 103 2 Access to Finance 112 3 Education and Training 117 4 Women’s Legal and Social Status 120 Appendix II 127 Sources and defi nitions of the Women’s Economic Opportunity Index 1 Labour Policy and Practice 127 2 Access to Finance 132 3 Education and Training 133 4 Women’s Legal and Social Status 135 5 General business environment 137 Appendix III 138 Principal Components Analysis 3 © Economist Intelligence Unit Limited 2010 Women’s economic opportunity A new global index and ranking Executive summary Women’s political and economic empowerment has been a defi ning feature of the last century. Millions of women in the early 1900s rejected convention and ignorance to fi ght for the right to vote. Thirty years later the daughters and granddaughters of those suffragettes, defying stereotypes, fl ocked to factories to help build the machines that won the second world war. The next generation of women secured their rights in law, then entered the workforce in droves, fuelling economic growth in the 1980s and 1990s. At the start of the 21st century women are not just enfranchised and fully engaged in the workplace, but leading global corporations and countries of every size. Germany’s Angela Merkel, Liberia’s Ellen Johnson-Sirleaf, and Pepsico’s Indra Nooyi are three among many. Yet after a century of impressive progress, overall economic opportunities for women still lag those of men. Women, on average, earn 75% of their male co-workers’ wages, and the difference cannot be explained solely by schooling or experience. In many countries, women have fewer educational and employment opportunities than men, are more often denied credit, and endure social restrictions that limit their chances for advancement. In some developing countries women still cannot vote, own property or venture outside the home without a male family member. To gain a better understanding of the factors that infl uence women’s economic opportunity—and how countries have addressed them—the Economist Intelligence Unit constructed a pilot Women’s Economic Opportunity Index, the fi rst of its kind. This index builds on, and extends, prior work done by the UN Development Programme on its Gender-related Development Index (GDI) and the World Economic Forum’s Global Gender Gap Index. Women’s economic opportunity is defi ned as a set of laws, regulations, practices, customs and attitudes that allow women to participate in the workforce under conditions roughly equal to those of men, whether as wage-earning employees or as owners of a business. The goal of this Index is to spur debate and research on the factors that affect women’s ability to access jobs and business opportunities. It is also intended to prompt improvements in policy and programmes that will encourage women’s participation in the workplace and thus create more productive economies overall. Working closely with a panel of experts and advisers, determinants of women’s economic opportunity in the formal sector were identifi ed, from educational attainment to legal and regulatory restrictions. Gender-related data were collected and analysed from a wide range of trusted international sources, including the World Bank, the UN, the International Labour Organisation (ILO), the World Economic Forum and the OECD. Existing datasets were supplemented with new indicators created and scored by the Economist Intelligence Unit’s own team of analysts and contributors. The new indicators attempt to 4 © Economist Intelligence Unit Limited 2010 Women’s economic opportunity A new global index and ranking capture information that research shows is important to women’s economic opportunity but for which there are no globally comparable data, such as access to childcare and the availability of training for women running small and medium-sized enterprises (SMEs). The determinants of women’s economic opportunity are listed in the Scoring criteria and categories section (page 10), and are discussed in the Potential drivers of women’s economic opportunity part of this report (page 12). They are reviewed in greater detail in Appendix I, which provides supporting literature (page 103), and in Appendix II, which explains scoring and coding (page 127) . The result is a new ranking of economic opportunity for women in 113 economies. Sweden, Belgium and Norway occupy the top spots in the Index. These countries have particularly open labour markets for women, high levels of educational achievement,
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