The regulatory environment for women’s economic participation has improved over the past two years, with 40 economies enacting 62 reforms that will help women – half the world’s population – realize their potential and contribute to economic growth and development, says a new World Bank study. Still, the results are uneven — women in many countries have only a fraction of the legal rights of men, holding back their economic and social development.
The study, Women, Business and the Law 2020, measures 190 economies, tracking how laws affect women at different stages in their working lives and focusing on those laws applicable in the main business city. It covers reforms in eight areas that are associated with women’s economic empowerment, conducted from June 2017 to September 2019.
“Legal rights for women are both the right thing to do and good from an economic perspective. When women can move more freely, work outside the home and manage assets, they are more likely to join the workforce and help strengthen their country’s economies,” said World Bank Group President David Malpass. “We stand ready to help until every woman can move through her life without facing legal barriers to her success.”
The areas of Workplace and Marriage saw many reforms, especially in the enactment of laws that protect women from violence. In the last two years, eight economies enacted legislation on domestic violence for the first time. Seven economies now have new legal protections against sexual harassment in employment.
Twelve economies improved their laws in the area of Pay, removing restrictions on the industries, jobs and hours that women can work. Globally, the most frequent reforms were in areas related to Parenthood, with16 economies enacting positive changes. Reforms included expansion of the amount of paid maternity leave available to mothers, introduction of paid paternity leave and prohibition of dismissal of pregnant employees.
Achieving legal gender equality requires strong political will and a concerted effort by governments, civil society, and international organizations, among others. But legal and regulatory reforms can serve as an important catalyst to improve the lives of women as well as their families and communities.
“This study helps us understand where laws facilitate or hinder women’s economic participation. It has incentivized countries to undertake reforms that can eliminate gender imbalances,” said World Bank Group Chief Economist Pinelopi Koujianou Goldberg. “Achieving equality will take time, but it is encouraging that all regions have improved. We hope that this research will continue to serve as an important tool to inform policy making and level the playing field for women.”
The WBL index measures only formal laws and the regulations which govern a woman’s ability to work or own businesses– a country’s actual norms and practices are not captured. The global average score was 75.2, which improved slightly from 73.9 two years ago. Clearly, much more work remains as women in many countries have only a fraction of the legal rights of men, holding them back from opportunities for employment and entrepreneurship.
The eight areas covered by the index are structured around women’s interactions with the law through their careers: Mobility, Workplace, Pay, Marriage, Parenthood, Entrepreneurship, Assets, and Pension.
Reforms are urgently needed in the area of Parenthood, which scored just 53.9 on average. In almost half of economies that provide any form of paid maternity leave, the burden falls on the employer, making it more costly to hire women. But paid maternity leave can help to retain female employees, reducing turnover cost and improving productivity. These longer-term benefits often outweigh the short-term costs to employers, according to the study.
Of the ten economies that improved the most, six are in the Middle East and North Africa, three are in Sub-Saharan Africa and one is in South Asia. While there was considerable progress, the Middle East and North Africa remains the region with the most room for improvement. Eight countries now have a score of 100, with Canada joining Belgium, Denmark, France, Iceland, Latvia, Luxembourg and Sweden due to a recent reform in parental leave.
Advanced Economies: Advanced economies continue to make progress on the indicators. Of the 40 economies with scores above 90, 27 are OECD high-income economies. The Czech Republic and the United States reformed laws related to paternity and parental leave, giving parents more opportunity to share childcare responsibilities, while Italy and Slovenia equalized pension benefits between men and women.
East Asia and the Pacific: Four economies conducted four reforms in three areas. Thailand introduced a reform in the area of getting paid, and Timor-Leste in the area of getting a pension. Fiji increased the duration of paid maternity leave and introduced paid leave for fathers for the first time.
Europe and Central Asia: Four economies enacted five reforms in five areas, and two economies changed laws to reduce opportunities. Armenia enacted legislation protecting women from domestic violence. Cyprus introduced paid paternity leave. Georgia adopted legislation to provide for civil remedies in the case of the unfair dismissal of a victim of sexual harassment. Moldova lifted some restrictions on women’s employment by limiting them to pregnant, nursing, and postpartum women.
Latin America and the Caribbean: Four economies made four reforms in four areas. Barbados enacted legislation on sexual harassment in the workplace. Peru and Paraguay received high scores in the 90s. Economies in this region made important strides toward lifting restrictions placed on women in the 1980s and 1990s, but the pace of reforms slowed over the past decade.
Middle East and North Africa: Seven economies enacted 20 reforms in seven areas, although one economy implemented a negative reform. Saudi Arabia made the biggest improvement globally, enacting reforms in six out of eight areas measured including in women’s mobility, sexual harassment, retirement age and economic activity. The United Arab Emirates also reformed in five areas. Djibouti, Bahrain, Jordan, Morocco and Tunisia implemented an additional nine reforms.
South Asia: Four economies enacted seven reforms in four areas.Nepal introduced a new labor law that prohibits discrimination in employment, paternity leave and new pensions regulation. Three other countries also enacted reforms: Pakistan and Sri Lanka made progress in the area of Parenthood. In India, the state of Maharashtra eliminated restrictions on women’s jobs.
Sub-Saharan Africa: Eleven economies implemented 16 reforms in seven areas. The Democratic Republic of Congo introduced social insurance maternity benefits and equalized retirement ages. In Côte d’Ivoire, spouses now have equal rights to own and manage property. Mali enacted reforms on non-discrimination in employment. São Tomé and Príncipe adopted a new labor code to meet job market demands and bring laws in compliance with international standards. South Sudan adopted its first labor law since independence.
Commitment to ESG Reporting is Driving Change within Global Corporations
New case studies from the World Economic Forum show how comprehensive environmental, social and corporate governance (ESG) reporting has started to drive corporate transformation around the world, particularly in sustainability efforts and company culture.
Based on case studies from companies reporting on the Stakeholder Capitalism Metrics, the white paper found examples of specific strategy and operations changes as a result. These include initiatives such as new approaches to water management in real estate and implementing biodiversity strategies and targets.
The case studies also indicate that despite some progress, companies are still struggling with competing and disparate ESG frameworks around the world. As regulators begin to roll out mandatory ESG reporting across regions, alignment will be key to ensuring that the clarity and efficacy of ESG reporting continues to improve globally.
We’re happy that support continues to grow for this set of metrics even in the face of geopolitical challenges, the lingering global pandemic and economic disruptions of the past two years,” said Emily Bayley, Head of Private Sector Engagement, ESG, World Economic Forum. “As this growth continues and jurisdictions transition from voluntary to mandatory sustainability reporting standards, we hope these learnings can provide valuable insights for companies that are just getting started on sustainability reporting and those that have been doing it for years.”
ESG-Driven Corporate Impacts
The Stakeholder Capitalism Metrics Initiative case studies engaged a global set of companies to gather how, and if, their ESG reporting has informed corporate transformation both internally and externally.
Examples of these transformations include:
Stakeholders told Ecopetrol their report was too long – the Forum’s core metrics helped the company focus on reporting topics that are most material and will generate value.
The metrics go beyond ESG to capture commercial metrics on employment, economic contribution, investment and tax. This delivers “an annual dashboard of comparable data on both sustainability and prosperity that will provide us with a snapshot of how healthy our company is”.
The core metric on water consumption and withdrawal in water-stressed areas led the company to encourage its teams and clients to agree water management plans and targets. It may even influence where the company rents office space in the future.
Accurate reporting on the environmental and social impacts of its operations. For example, the metric on resource circularity points customers towards the most impactful products on the market and drives the company’s innovation agenda to design more sustainable solutions.
Reporting on the Forum’s metrics has increased the value of transparency within the company, leading to conversations and progress on difficult issues.
The metric on land use and ecological sensitivity contributed to Schneider’s new approach to biodiversity, as it adapted its reporting and asked all sites to set specific biodiversity action plans.
ESG Regulatory Landscape
While progress has been made on the creation and implementation of meaningful and effective ESG disclosures globally, concerns remain about the disparate nature of the competing and complex ESG reporting mechanisms that exist today.
There are also concerns that as reporting becomes mandated there could be less transparency because people will not want to disclose more than they have to. As mandated ESG reporting becomes more widespread, both regulators and internal advocates should ensure corporations understand the full value of transparency on sustainability and other ESG issues.
Addressing this issue is particularly important as regulators in different regions begin to roll out their mandatory reporting requirements. Focus on a common set of comprehensive and material metrics will be important for both the efficacy and feasibility of ESG reporting in the coming months. As much as possible, the European Union, the US Securities and Exchange Commission (SEC) and the International Financial Reporting Standards (IFRS) Foundation should align their metrics to ensure companies are able to implement effective ESG reporting globally.
Stakeholder Capitalism Metrics Initiative
The World Economic Forum and the coalition of companies adopting the Stakeholder Capitalism Metrics, engaged with the preparatory working group and are continuing the dialogue with the International Sustainability Standards Board (ISSB) technical teams under the IFRS Foundation as they go through the standard-setting process. The metrics are expected to form part of the ISSB “exposure draft” next year on cross-thematic disclosures and metrics.
Announced at the World Economic Forum Sustainable Development Impact Meetings 2022, these case studies build on the earlier report to showcase progress on the commitment made by companies at the Annual Meeting in 2020. Since then, 186 global companies, with a combined market capitalization of over $6.5 trillion, have adopted the Stakeholder Capitalism Metrics. Of these, 126 companies have disclosed against the metrics in their mainstream reports for either one or two years.
Trade in 25 Technologies Can Help Climate Action
Based on 30 interviews with industry and academia, the Accelerating Decarbonization through Trade in Climate Goods and Services report highlights technologies with high, immediate emissions-cutting potential, in five categories – refrigerants, energy supply, buildings, transport and carbon capture and storage (CCS). The list of technologies can guide trade ministers looking to support climate action.
“Climate change is a global concern,” says Sean Doherty, Head of International Trade at the World Economic Forum. “Our response must draw upon the innovation and capacities of the whole world, not be held back by protectionism.”
Trade collaboration on climate has been limited to date with trade and climate practitioners working in separate silos. New efforts are emerging now, however, to address the linkages between these two areas.
“There is no time to waste to limit global warming to 1.5°C,” adds Jean-Pascal Tricoire, Chairman and Chief Executive Officer, Schneider Electric. “We need to decarbonize three times more, three times faster. The good news is that we have the technologies to do it. Solutions are not limited to renewable energy. It actually starts with energy efficiency, electrification and digitization. If deployed at full potential, we can eliminate 70% of what we’re emitting today.”
The report also highlights non-tariff barriers that affect trade in climate technologies. Regulatory cooperation around product testing or labelling requirements, for example, could reduce friction in getting emissions-cutting goods to market. Interviewees also noted that climate action is held back by trade barriers to the services needed to operate climate technologies. The report suggests a way to identify these climate services for priority trade cooperation.
“Our transition to a low-carbon economy will hinge on the deployment of a number of key technologies that are both mature and widely available, as detailed in this important report on the nexus of decarbonization and international trade, including energy efficiency, electric vehicles, green hydrogen, smart buildings and more,” says Björn Rosengren, Chief Executive Officer of ABB. “ABB’s contributions to this new report from the Alliance of CEO Climate Leaders underscore our support for removing and reducing barriers to trade in climate goods and services to speed the drawdown of global emissions.”
More efforts are needed to engage developing countries in trade efforts on climate. Over 750 million people worldwide lack reliable electricity access, mainly in sub-Saharan Africa. Developing economy industries must decarbonize and leapfrog the latest technologies to remain competitive in global value chains moving towards net zero. Some developing economies will need support in creating a climate-friendly trade and technology strategy. Global and local industries can help policymakers understand the criss-crossing of value chains that drive economic activity and how to align these flows to the climate agenda.
“Climate change knows no borders and encouraging better trade between countries can ensure the transfer of valuable knowledge, new technologies and skills to improve energy efficiency in homes around the world,” says Hakan Bulgurlu, Chief Executive Officer of Arcelik. “It is critical to our ultimate goal of achieving net-zero targets.”
To support an increased understanding of trade, value chains and climate action, the Climate Trade Zero community will host dialogues and support countries with actionable analysis.
East Asia and Pacific Sustaining Growth, Restraining Inflation, but Facing Risks Ahead
Growth in most of developing East Asia and the Pacific rebounded in 2022 from the effects of COVID-19, while China has lost momentum because of continued measures to contain the virus, a World Bank report said on Monday.
Looking ahead, economic performance across the region could be compromised by slowing global demand, rising debt, and a reliance on short-term economic fixes to cushion against food and fuel price increases.
Growth in developing East Asia and the Pacific outside of China is forecast to accelerate to 5.3% in 2022 from 2.6% in 2021, according to the World Bank’s East Asia and Pacific October 2022 Economic Update. China, which previously led recovery in the region, is projected to grow by 2.8% in 2022, a sharp deceleration from 8.1% in 2021. For the region as a whole, growth is projected to slow to 3.2% this year from 7.2% in 2021, before accelerating to 4.6% next year, the report says.
“Economic recovery is under way in most countries of East Asia and the Pacific,” said World Bank East Asia and Pacific Vice President Manuela V. Ferro. “As they prepare for slowing global growth, countries should address domestic policy distortions that are an impediment to longer term development.”
Growth in much of East Asia and the Pacific has been driven by recovery in domestic demand, enabled by a relaxation of COVID-related restrictions, and growth in exports. China, which constitutes around 86% of the region’s output, uses targeted public health measures to contain outbreaks of the virus, inhibiting economic activity.
The global economic slowdown is beginning to dampen demand for the region’s exports of commodities and manufactured goods. Rising inflation abroad has provoked interest rate increases, which in turn have caused capital outflows and currency depreciations in some East Asia and Pacific countries. These developments have increased the burden of servicing debt and shrunk fiscal space, hurting countries that entered the pandemic with a high debt burden.
As countries of the region seek to shield households and firms from higher food and energy prices, current policy measures provide much-needed relief, but add to existing policy distortions. Controls on food prices and energy subsidies benefit the wealthy and draw government spending away from infrastructure, health and education. Lingering regulatory forbearance, aimed to ease lending through the pandemic, can trap resources in failing firms and divert capital from the most dynamic sectors or businesses.
“Policymakers face a tough tradeoff between tackling inflation and supporting economic recovery,” said World Bank East Asia and Pacific Chief Economist Aaditya Mattoo. “Controls and subsidies muddy price signals and hurt productivity. Better policies for food, fuel, and finance would spur growth and insure against inflation.”
BJP’s ‘Akhand Bharat’ Dream is Not Only Problematic, Fascist Also
On 7th September, Assam Chief Minister (CM) Himanta Biswa Sarma made a very controversial remark about ‘integrating Bangladesh and Pakistan’....
Listening to Kazakhstan: Survey Spotlights Challenges Along with Optimism on Economic Prospects
The results of the “Listening to Kazakhstan” survey presented today reveal a challenging period for Kazakhstan’s economic and social outlook...
UN urges investment in clean, sustainable tourism
International tourism is showing strong signs of recovery, with tourist numbers rising to 57 per cent of pre-pandemic levels. On...
Hurricanes and cyclones bring misery to millions, as Ian makes landfall in the U.S.
Hurricane Ian caused devastation across western Cuba and increased its strength and size as it made landfall mid-afternoon local time...
Floods; A Challenge to Comprehensive National Security of Pakistan
Pakistan is encountering one of the major catastrophic occurrence in the present day history. The colossal floods, along with the...
U.S. Government Likely Perpetrated Biggest-Ever Catastrophic Global-Warming Event
On September 28th, the AP headlined “Record methane leak flows from damaged Baltic Sea pipelines” and reported that “Methane leaking...
Solar Mini Grids Could Power Half a Billion People by 2030 – if Action is Taken Now
Solar mini grids can provide high-quality uninterrupted electricity to nearly half a billion people in unpowered or underserved communities and...
Economy2 days ago
How America Is Crushing Europe
Green Planet4 days ago
A Healthy Environment is Now a Universal Human Right: But What Does the Recognition Mean?
Economy3 days ago
The Historic Day of Euro’s Downfall
Central Asia4 days ago
Shanghai Cooperation Organization Summit and Later Developments: The Politics Analyzed
South Asia3 days ago
Changing Regional Security Paradigm: A Challenge to Kashmir and Options for Pakistan
Middle East4 days ago
Public opinion surveys challenge the image Arab leaders like to project
Intelligence3 days ago
Pakistani Intelligence Agencies ignite Tribal Conflicts in Pak-Afghan Region
Southeast Asia3 days ago
The so-called Indonesia-South Korea Special Strategic Partnership