I thank all hon. Members who have asked to speak in this debate. It is the tradition of our Parliament to have a debate as close as possible to the date of international women’s day, which is on Saturday, so Thursday afternoon is as close as we can get. I am grateful to the Backbench Business Committee for acceding to the cross-party request to hold this debate today.
I will focus particularly on the global female economy. Women’s contribution to the economy is topical as the world digs its way out of the global financial crisis. It will be vital, if we are to consolidate economic recovery, for women around the world to participate in their economies. Research published by the Boston Consulting Group last September suggests that over the next five years, women will add $6 trillion to global earned income, which shows the size of the contribution that they already make and the scope for much more.
Both genders need to be active in the economy for GDP to grow to its full extent. An International Monetary Fund report also published last September noted the potential for macro-economic gains if women develop their full labour market potential. GDP per capita losses as a result of gender gaps in the labour market are estimated to be as high as 27% in some countries. The new Prime Minister of Japan took the World Economic Forum by storm this year when he said that if Japanese women were fully active in his economy, his country’s GDP would grow by 16%, that he sees that as absolutely key to the future of Japan, and that he intends to legislate for a target of 30% of leading positions in his country to be filled by women.
In developing countries, gender inequalities are often even greater than in developed countries. In 2013, the IMF cited studies estimating that of the 856 million women worldwide who have the potential to contribute more fully to their national economies, 812 million live in emerging and developing nations. India is one example. India has had, as role models, a famous female Prime Minister in Indira Gandhi and a female President, Pratibha Patil. However, the female participation rate in the labour force in India has stayed at around 32% since the turn of the century, and female wages in India have declined to an average of just 26% of men’s.
There are some important global initiatives to tackle such issues and realise the gains to be had from increasing female participation in labour markets. For example, Coca-Cola began its 5by20 initiative in 2010. Coca-Cola has pledged to empower 5 million female entrepreneurs around the globe by 2020 by increasing their access to
business skills training courses, financial services and networks of mentors. The company employs 770,000 people directly and 10 million indirectly in its supply chain. Programmes are now running in more than 20 countries, including Haiti, Thailand, Liberia and Ethiopia, and will create a whole new generation of female entrepreneurs.