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New Social Compact

Understanding the gender pay gap: Definition and causes

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Although the equal pay for equal work principle was already introduced in the Treaty of Rome in 1957, the so-called gender pay gap stubbornly persists with only marginal improvements being achieved over the last ten years.

The European Parliament has consistently called for more action to narrow the gap and is bringing up the issue again in a plenary debate on Monday 13 January.

What is the gender pay gap? And how is it calculated?

The gender pay gap is the difference in average gross hourly earnings between women and men. It is based on salaries paid directly to employees before income tax and social security contributions are deducted. Only companies of ten or more employees are taken into account in the calculations.

Calculated this way, the gender pay gap does not take into account all the different factors that may play a role, for example education, hours worked, type of job, career breaks or part-time work. But it does show that across the EU women generally earn less than men.

The gender wage gap in the EU

Across the EU, the pay gap differs widely, being the highest in Estonia (25.6%), the Czech Republic (21.1%), Germany (21%), UK (20.8%), Austria (19.9%) and Slovakia (19.8%) in 2017. The lowest numbers can be found in Slovenia (8%), Poland (7.2%), Belgium (6%), Italy and Luxembourg (5% each) and Romania (3.5%).

Equal pay is regulated by an EU directive but the European Parliament has repeatedly asked for its revision and for further measures. Ursula von der Leyen, president of the European Commission has announced that they will be working on a new European gender strategy and binding pay transparency measures.

Why is there a gender pay gap?

Interpreting the numbers is not as simple as it seems, as a smaller gender pay gap in a specific country does not necessarily mean more gender equality. In some EU countries lower pay gaps tend to be women having fewer paid jobs. High gaps tend to be related to a high proportion of women working part time or being concentrated in a restricted number of professions.

On average, women do more hours of unpaid work (caring for children or doing housework) and men more hours of paid work: only 8.7% of men in the EU work part-time, while almost a third of women across the EU (31.3%) do so. In total, women have more work hours per week than men do.

So, women do not only earn less per hour, but they also do fewer hours of paid work and fewer women are employed in the workforce than men. All these factors combined bring the difference in overall earnings between men and women to almost 40% (for 2014).

Women are also much more likely to be the ones who have career breaks and some of their career choices are influenced by care and family responsibilities.

About 30% of the total gender pay gap can be explained by an overrepresentation of women in relatively low-paying sectors such as care, sales or education. There are still jobs such as in the science, technology and engineering sectors where the proportion of male employees is very high (with more than 80%).

Women also hold fewer executive positions: less than 6.9% of top companies’ CEOs are women. Eurostat data show that if we look at the gap in different occupations, female managers are at the greatest disadvantage: they earn 23% less per hour than male managers.

But women also still face pure discrimination in the workplace, such as being paid less than male colleagues working within the same occupational categories or being demoted aſter returning from maternity leave.

Benefits of closing the gap

What can be seen also is that the gender pay gap is widening with age – along the career and alongside increasing family demands – whilst it is rather low when women enter the labour market. With less money to save and invest, these gaps accumulate and women are consequently at a higher risk of poverty and social exclusion at an older age (the gender pension gap was about 36% in 2017).

Equal pay is not just a matter of justice, but would also boost the economy as women would get more to spend more. This would increase the tax base and would relieve some of the burden on welfare systems. Assessments show that a 1% reduction in reduction in the gender pay gap would result in an increase in the gross domestic product of 0.1%.

New Social Compact

Delivering on Our Promise for Universal Education

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Image source: educationcannotwait.org

On the International Day of Education, we call on world leaders to transform how we deliver on education.

The clock is ticking. As a global community, we have committed to delivering universal, equitable education by 2030. That’s just eight short years to get a quarter of a billion children into the classroom.

While remarkable efforts are underway, armed conflicts raging worldwide, forced displacement, climate change-induced disasters, and now COVID-19 are derailing progress, compromising the futures of entire generations. Unless we act now, it will affect all of humanity one day.  

On the International Day of Education, it’s time we change course and transform how we deliver on our promise of universal education – especially for the millions of girls and boys caught in emergencies and protracted crises who are being denied their inherent human right to go to school, to learn and to thrive. They are the ones left furthest behind and whom we need to place at the forefront at this critical juncture.

According to UNESCO, as many as 258 million children and youth don’t attend school across the world. Two out of three students are still impacted by full or partial school closures from COVID-19. Girls are particularly at risk, with estimates projecting that between 11 million and 20 million girls will not return to school after the pandemic.

While a minority of people on the planet are enjoying all the comforts of modern life, over 617 million children and adolescents cannot read or do basic math. That’s more than the total population of Germany, the United Kingdom and United States combined.  

The children living on the frontlines of conflict, forced displacement, disasters and protracted crises are the most at risk, with as many as 128 million in need of urgent education support.

So how do we get back on track and deliver on our promises? There are three key pillars to transforming education for children in emergencies and protracted crises. Number 1. We need to step up in a major way to fund these efforts. Number 2. We need to deliver in partnership, break down silos, and find ways to be more agile and responsive. Number 3. We need to deliver context-specific whole-of-child solutions geared to the realities of crisis.

Number 1. Funding education in emergencies

It starts with substantive financing and predictable funding. As the UN’s global fund for education in emergencies and protracted crises, Education Cannot Wait (ECW) has surpassed $1 billion in funds mobilized for its Trust Fund (and $1 billion leveraged or aligned in-country to ECW’s investments).

This milestone was possible thanks to ECW’s strategic donors, such as Germany who announced today US$228.3 million (Є200 million) in additional funding to support the fund’s multi-year investments, becoming ECW’s single largest donor to date with US$362.7 million (Є318 million) in total contributions.

Beyond scaling up significant financing, flexibility and predictability are also crucial. Quality learning outcomes cannot be achieved through short-term emergency responses. We need multi-year funding and programmes that can adapt to evolving needs amidst the instability that is intrinsic to crisis and which can ensure a continuous and uninterrupted education.

Achieving Sustainable Development Goal 4: inclusive, equitable quality education, is the best way to advance all the other Sustainable Development Goals (SDGs). It is the silver bullet for creating social and economic impacts that can generate long-lasting human development and prosperity.  

For every $1 spent on girls’ education, we generate approximately $2.80 in return. Making sure girls finish secondary education could boost the GDP of developing countries by 10% over the next decade.

In just five years, ECW has been able to reach five million children and adolescents with the safety and opportunity of a quality education

On the ground, this means that in places like Bangladesh, Chad, Ecuador and Syria children are receiving the holistic support they need to return to the safety, protection and opportunity of quality learning environments.

As we’ve seen from Germany’s generous contribution today, key public donors are rising to this challenge and prioritizing education in their official development or/and humanitarian assistance.

Now it’s time for others to follow suit. ODA governments will need to scale up financing to match the actual needs, all while we must also further engage with the private sector and philanthropic foundations to dramatically bolster our global investment in education based on realistic calculations commensurate to the actual costs.

In a world where football teams sell for billions of dollars and billionaires fly themselves into space, how is it possible that we are not finding the resources to send every child to school?

Investing in a child’s education means investing in all of humanity. It is time to transform our perception of the world, our priorities and how we shoulder our responsibility as a human family.

Number 2. Delivering in partnership

No single stakeholder can do it alone. At this year’s Transforming Education Summit, convened by UN Secretary-General António Guterres, we will ask ourselves how we can avert a generational catastrophe and rethink our education systems and financing thereof to make good on our commitments and promises.

When it comes to investing in education, one part of the solution is to break down silos and build bridges. Based the United Nations Secretary-General’s reform, this means partnerships through joint programming, or ‘The New Way of Working.”  ECW’s global investments translate the Secretary-General’s UN reform into results.

Think how partnerships can work to deliver education in a crisis like Afghanistan – where ECW has invested in joint programming for holistic approaches, bridging humanitarian and development operations, since 2018.

Teachers’ salaries must be paid. Schools and learning centers need to be built and equipped. Girls and female teachers need to feel safe going to school – and girls’ rights to an education must be upheld. Students that have dealt with a lifetime of conflict and trauma need mental health services.  

On my recent mission to Afghanistan, I saw firsthand how collaboration among humanitarian and development stakeholders is crucial to effectively address these multiple challenges. Despite the bulk of international aid to Afghanistan remaining frozen, on the ground UN agencies, and international and national NGOs have the operational capacities required to deliver the response – they only lack the funding.

ECW partners like UNICEF and WFP, as well as numerous NGOs – such as Save the Children, Swedish Afghanistan Committee, the Aga Khan Foundation and Wadan – are jointly supporting education in this mountainous and seemingly inaccessible country, including secondary girls’ education.

To transform the delivery of education, visionary leaders such as the UN Special Envoy for Global Education and Chair of ECW Gordon Brown, António Guterres, the UN Deputy Secretary-General Amina J. Mohammed, and German Minister for Economic Cooperation and Development Svenja Schulze are approaching education through a new lens, connecting humanitarian, development, and peacebuilding aid interventions. 

Number 3. Whole-of-child solutions

A child who is hungry or traumatized by the unspeakable violence they have witnessed will most likely struggle to achieve quality learning outcomes. No matter how well-trained a teacher is, or how well-equipped a classroom is, if a girl skips classes each month during her periods for a lack of sanitary products or of adequate sanitation facilities at the school, or if she dares not go to school for fear of harassment and kidnapping – we are failing her.

Delivering education to children and adolescents living in crisis settings goes beyond providing classrooms and textbooks. We must create the enabling environments and policies needed to support the overall wellbeing of a child – including educational, psychological, socio-emotional needs, health, nutrition, and protection – and ensure that gender equality and disability inclusion are at the core of our responses.

Only by working collectively will we have the breadth of expertise and the operational outreach to support these multiple facets of a child’s or adolescent’s needs. Only then will we unlock the power of education for these girls and boys to achieve their potentials and thrive. 

Our place in history

We are living in one of history’s inflection points.

Seas are rising and threatening human existence, and millions of children are being denied their inherent right to an education, as a consequence of conflict, abject poverty and climate-induced disasters, which displace families and entire communities, erode infrastructure and brain-drain a country. In two years, a virus has taken over 5 million lives, disrupted global commerce, and impacted the lives of people around the world.

Education is the very bedrock that can steer our efforts to safeguard our humanity. The clock is ticking, and there will be no other chance. Now is the time to define the future of our existence on earth to deliver on our global promises for a better, more stable, just and prosperous world.

In the final analysis, leaders driven by humanity rather than power see things from afar and within. And so, they recognize the relation between themselves, the world, and universal values and human rights.

In honor of the rights of the 128 million children and youth whose education has been disrupted in their young lives due to conflict, forced displacement and climate-disasters, I call on all of you – not only to define – but to direct their and our future.

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New Social Compact

The Social Innovators of the Year 2022

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Mikaela Jade. (Image: Veuve Clicquot New Generation Awards)

The Schwab Foundation for Social Entrepreneurship announced today 15 awardees for social innovation in 2022.

From a Brazilian entrepreneur using hip-hop to turn Favela youth away from crime, a Dutch nurse revolutionizing home healthcare and a park ranger turned tech founder using Minecraft to revive Australia’s Indigenous culture, the 2022 Social Innovators of the Year includes a list of outstanding founders and chief executive officers, multinational and regional business leaders, government leaders and recognized experts.

The awardees were selected by Schwab Foundation Board members, including Helle Thorning-Schmidt, Prime Minister of Denmark (2011-2015), and social innovation expert Johanna Mair, Professor of Organization, Strategy and Leadership at the Hertie School of Governance in Germany, and H.M. Queen Mathilde of Belgium, Honorary Board Member, in recognition of their innovative approach and potential for global impact.

“The Social Innovators of the Year 2022 represent a new ecosystem of leaders who are driving change and shifting organizations and systems towards a more just, inclusive, sustainable future,” said Hilde Schwab, Co-Founder and Chairperson of the Schwab Foundation for Social Entrepreneurship.

The Schwab Foundation’s unique community of social innovators dates back more than two decades to 1998 when Hilde Schwab, together with her husband Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, created the foundation to support a new model for social change, combining often-overlooked values of mission, compassion and dedication with the best business principles on the planet to serve the most disadvantaged people on earth and build a better society.

Today, the foundation has a thriving community of 400 global social entrepreneurs that have impacted the lives of 722 million people in 190 countries. They offer access to healthcare, education, housing, finance, digital skills and advocacy networks resulting in job creation economic opportunity, improved health and stability.

To help the social enterprise sector increase its reach in response to the COVID-19 pandemic, the Schwab Foundation established the COVID Response Alliance for Social Entrepreneurs early 2020, representing 90+ members and an estimated 100,000 entrepreneurs as the largest collaborative in the sector.

“This year’s Schwab Foundation Awardees demonstrate that through values-based approaches centring on inclusivity, collaboration, relationships of trust and long-term sustainability, we have proven ways of changing institutions and mindsets, and disrupting traditional ways of working that hold systemic barriers in place,” said François Bonnici, Director of the Schwab Foundation for Social Entrepreneurship.

The 2022 Schwab Foundation Awards are hosted in a long-term partnership with the Motsepe Foundation, founded on the philosophy of “Ubuntu”, the African concept of giving and caring for your neighbour and other members of your community.

“I strongly believe social entrepreneurship, combined with local innovation and technology, can create meaningful change and recovery in Africa and many developing nations. At its core it is about bringing together the best of business discipline and efficiency with the best of human and social values. We need this synergy, now more than ever,” said Precious Moloi-Motsepe, Co-Chair, Motsepe Foundation and Chancellor of the University of Cape Town.

The 2022 awardees are:
Social entrepreneurs

Founders or chief executive officers who solve a social or environmental problem, with a focus on low-income, marginalized or vulnerable populations.

Ashraf Patel, Co-Founder of Pravah and ComMutiny Youth Collective (CYC), India: For almost three decades, Patel has nurtured inside-out youth leadership with collective organisations. This ecosystem has co-created the right space, context and narrative that has reached over 15 million young people.

Celso Athayde, Founder, Central Unica das Favelas (CUFA) and Chief Executive Officer, Favela Holding, Brazil: One of Brazil’s best-known social entrepreneurs, Athayde founded the nation’s largest social enterprise focused on favela communities, using music and sport to transform their lives.

Jos de Blok, Founder, Buurtzorg, Netherlands: de Blok is revolutionizing nursing around the world with buurtzorg, meaning neighbourhood care, which puts nurses and patients at the heart of its social enterprise model.

Kennedy Odede, Founder and Chief Executive Officer, SHOFCO (Shining Hope for Communities), Kenya: Passion, 20 cents and a soccer ball were the building blocks for Odede’s social enterprise SHOFCO, which is transforming urban slums and providing economic hope.

Marlon Parker, Co-Founder, Reconstructed Living Labs (RLabs) and Rene Parker, Chief Executive Officer and Managing Director, RLabs, South Africa: Marlon and Renee Parker grew a Cape Town community project helping ex-convicts into a global social enterprise that has helped around 20 million disadvantaged people by offering tech skills, training, funding and workspaces.

Mikaela Jade, Founder and Chief Executive Officer, Indigital, Australia: From park ranger to tech founder, Jade founded Australia’s first Indigenous edu-tech company using augmented and mixed realities to preserve and teach Indigenous culture and history.

Rana Dajani, Founder and Director, Taghyeer/We Love Reading, Jordan: Dajani sparked a global reading revolution, training female volunteers to read to kids. We Love Reading now operates in 56 countries, benefiting nearly half a million children.

Wenfeng Wei (Jim), Founder and Chief Executive Officer, DaddyLab, People’s Republic of China: “Daddy Wei” is a social media champion for safer consumer goods. His enterprise DaddyLab is a one-stop shop for trusted product testing, consumer rights advice for families.

Corporate social intrapreneurs

Leaders within multinational or regional companies who drive the development of new products, initiatives, services or business models that address societal and environmental challenges.

Gisela Sanchez, Corporate Affairs, Marketing, Strategy and Sustainability Director, Bac International Bank and Board Member, Nutrivida, Costa Rica: Nutritional food firm Nutrivida, the brainchild of Gisela Sanchez, combats a lack of vitamins and minerals in the diet, known as hidden hunger, that affects 2 billion people.

Sam McCracken, Founder and General Manager, Nike N7, USA: A member of the Assiniboine and Sioux Tribes from the Ft Peck Indian Reservation in Montana, McCracken founded Nike N7 20 years ago with a vision of using the power of sport to promote cultural awareness. It demonstrates Nike’s commitment to diversity, equity and inclusion with the Indigenous populations of North America. Today, N7 has benefited more than 500,000 Indigenous youth.

Public social intrapreneurs

Government leaders who harness the power of social innovation social entrepreneurship to create public good through policy, regulation or public initiatives.

Pradeep Kakkattil, Director of Innovation, UNAIDS, Switzerland: Kakkattil founded global platform HIEx to link innovators, governments and investors and find solutions to global healthcare problems, from COVID diagnosis to the cost of medicines.

Sanjay Pradhan, Chief Executive Officer, Open Government Partnership (OGP), Global: Pradhan has been a tireless champion of good governance and fighting corruption, leading a partnership of 78 countries, 76 local governments and thousands of civil society organizations that are working together to make governments more open and less corrupt.

Social innovation thought leaders

Recognized experts and champions shaping the evolution of social innovation.

Alberto Alemanno, Professor of Law, HEC Paris and Founder, The Good Lobby, European Union, France: Alemanno is passionate about overcoming social, economic and political inequalities. His civic start-up, The Good Lobby, kickstarted a movement for ethical and sustainable lobbying.

Adam Kahane, Director, Reos Partners, Canada: Kahane is a global leader in helping diverse teams of leaders work together, across their differences, to address their most important and intractable issues. He has facilitated breakthrough projects in more than 50 countries on climate action, racial equity, democratic governance, Indigenous rights, health, food, energy, water, education, justice and security.

Hahrie Han, Stavros Niarchos Foundation Professor of Political Science, Inaugural Director of the SNF Agora Institute, Johns Hopkins University, USA: Han is a leading academic and author on collective action and the way citizens can collaborate to solve public problems and influence policy, from immigration to voting rights.

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New Social Compact

Grace and a Tennis Celebrity

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image source: Wikipedia

Among the character traits we cherish in fellow humans, grace is often more noticeable in its absence.  The recent saga of a Serbian tennis player and his manner of entry into Australia and subsequent events come to mind.  A champion athlete cannot help but serve as an ambassador for his country, and in Serbia’s case, after the horrors of the Yugoslavia civil war and its prominent role, it is a country that needs all the help it can get. 

Novak Djokovic is ranked number one in the world and is in Australia to defend his title.  He appears to have lied on his Australian entry form:  False declarations are grounds for revoking a visa, and immigration officials acted.  But as world number one, he is a draw for the tournament … and money talks — he is already scheduled to play his first match as this is written. 

Mr. Djokovic’s lawyers went to court which overturned the immigration officials’ order against him on the grounds they had not followed proper procedure.  Then the immigration minister, Alex Hawke, who had been thinking about canceling his visa actually did.  So it’s back to court.

But it gets worse:  Djokovic has not been vaccinated.  He claims that having had the illness, he is immune.  Scientists have found that to be of short duration.

He also broke isolation rules after he had tested positive, particularly by not isolating himself, thereby endangering his contacts.  Cavalier his behavior maybe, perhaps careless but possibly a sense that rules are not for celebrities, only for lesser mortals.

That it caused a sense of outrage is apparent.  A leaked video has a couple of news anchors discussing Djokovic in not very flattering terms:  “Novak Djokovic is a lying, sneaky asshole”, says one.  Yet the comment also is evidence of a coarseness that has gradually pervaded language.

In the meantime, Mr. Djokovic’s father has his own take on the affair.  He calls it a conspiracy to prevent his son from breaking the previous record of 20 Grand Slam title wins held by Rafael Nadal and Roger Federer because they are all against Serbia.  But Serbia, which still believes in little Jesus and is thus protected, will prevail.

Would aphorisms like ‘a storm-in-a-teacup’ or ‘mountains out of a molehill’ be descriptive?  Not if it’s news across the world.  Yet, if he continues to rant on the tennis court and win, it could be his way of getting rid of nerves, an eternal bugaboo. 

He must have another crucial concern:  the biological clock.  At 34 going on to 35 in five months, and with much younger rivals snapping at his heels, it has to be a race against time to win that 21st major title.

Just like grace notes relieve tedium in music, perhaps Djokovic’s rants relieve the boring baseline game that modern tennis has become.  No more a Frank Sedgman or a Pancho Gonzales charging up to the net to put away a dramatic volley, tennis now needs a grace note, or two, or three …  

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