Hello
Hope you are doing well and wearing the mask(s). This week we talk about womenomics, the G7 summit, along with some reflection from this week!
Abe’s Womenomics
Prime Minister of Japan, Shinzo Abe has been pushing economic policies to create a “Japan in which women shine”.
Japan records female labour force participation of 71%, surpassing superpower US and even Europe.
So how did Japan do this?
Answer: Womenomics (Women + Economics)
This model is an integral part of Japan’s economic strategy of involving more women in the labour force.
Why womenomics?- Labour, Capital and Productivity are three significant determinants in an economy. With a limited population, declining birthrate and finite capital, this looked like a ray of hope for Japan’s economy.
Progress-
World’s most generous parental leave benefits.
Gender Transparency in organisations and businesses.
Workstyle reforms, making the culture more inclusive and comfortable for all.
Areas to be worked on-
Need for more women to take leadership positions in public/private sectors.
Inflexible labour contracts, which make the employees more vulnerable to fatigue and stress.
Insufficient caregiving facilities, which might hinder women on their path to shine.
Unconscious biases persist in every economy and society.
Recent Development- MPower Partners Fund, Japan’s first ESG focused Global Venture Capital fund, led by Kathy Matsui, Yumiko Murakami and Miwa Seki, is aiming to invest $150 million in startups with strong environmental, social and governance values(ESG). The new fund will aim to invest two-thirds of its capital in the growth of late-stage startups in Japan and the other third in early-stage startups overseas.
Fun Fact- Kathy Matsui penned the first report on womenomics in 1999.
(Source: Womenomics 5.0 by Goldman Sachs and Japan Times)
Bit of a reflection
Common reasons which drive women away from the workforce:-
Workplace Harassment- Even with Sexual Harassment laws at the place in most countries, women still struggle to access legal machinery both in formal and informal sectors. In India, only 505 cases of harassment were recorded by National Crime Records Bureau (NCRB).
Technology and Machinery- Due to the advancement of technology in informal sectors- women have been significantly displaced in the informal labour force. By the year 2030, nearly 12 million Indian women could lose their jobs as per the McKinsey Global Institute report. Climate Change and growing heat would add to the process.
Unpaid Care work- Child rearing and household chores are considered as women’s responsibilities across societies and cultures which can sap the time and energy of women. It can be seen through National Sample Survey Office (NSSO) data that in India women spend on average 5 hours per day on domestic chores in comparison to men who spend just 30 minutes.
The Income Effect- As household incomes were increasing over the last three decades, the need for ‘second income’ had reduced and as result families withdraw women from the workforce. Moreover, the “income effect” can explain approximately 9 per cent of the total decline in the female labour force participation rate between 2005 to 2010.
Work from Home- A Ray of Hope?
Covid-19 Pandemic has rendered many women jobless, as after the eight months of lockdown in 2020- there were fewer than 13 per cent of women were employed or looking for jobs, compared to 2% fewer men.
However, from 2016 to 2020, companies offering remote work or Work from Home has risen to 85% from 60%.
If organisations implement the work from home policy rightly, it can provide women opportunities to contribute to the economy it can give a boost to economies. Social media giant Facebook has come up with flexible work policies, promoting remote workplaces across its offices. This trend can be a great changemaker if adapted in startups and small scale organisations too.
(Source: Financial Express, FII, Times Of India)
The group of 7
Context- Group of 7 or G7 is an informal group of 7 countries, the United States, United Kingdom, France, Germany, Canada, Italy and Japan. Collectively, the member countries represent 40% of the world's GDP and 10% of the world’s population.
Key issues- This year’ summit is covering multiple and quite important issues- Climate Change, Universal Immunization and access to vaccines, Brexit, China and lastly, democracy.
Latest Development: G7 leaders have come up with a rival plan to China’s ‘Belt and Road’ project, with the adoption of the US-inspired ‘ Build Back Better World’ (B3W). To this, the white house responded by stating, that this project aims to address “strategic competition with China and commit to concrete actions to help meet the tremendous infrastructure needs in low- and middle-income countries".
(Source: Indian Express, The Guardian, NDTV)
Your Sunday reads
Future of Bitcoin in India and Lessons From The World
Pandemic Has Left People Unemployed and Yet India Is Facing A Labour Shortage
We had an interesting session on Mental Health with Dr Bindu Kapoor, Counselling Psychologist at Clubhouse.
Key Takeaway- “Feeling better is a short term goal, getting better is a long term Goal”
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