___________________________________________________________________________

2018/PPWE/DIA/005

Gender Inclusion and Empowerment: A Catalyst for Growth

Submitted by: UN Women

Public-Private Dialogue on Women and the Economy

Port Moresby, Papua New Guinea6 September 2018

Women in economy ForumGender inclusion and empowerment: A catalyst for growth

Susan Ferguson

Country Representative, UN Women, PNG

PNG Dept for Community Development and Religion

Australia and the Pacific Women Program

New Zealand

IFC

ILO

UN Women

Thanks to:

Equality matters

Chances for women to participate in the formal labour market worldwide remain almost 27 percentage points lower than those for men.

If the gender gap was closed globally, the global economy would improve by the combined China and USA economies

Cost of violence against women and discriminatory social practices is 12 trillion dollars annually

Women earn 30% less than men in formal sector work (pay gap)

Gender roles, especially caring responsibilities constrain women’s ability to work

A host of women’s economic activity remains in the informal sector

Some Insights

The formal economy:

• organised system of employment

• standardised relationship through a formal contract.

• works for fixed hours and receives fixed salaries

• decent work environment

• entitled to benefits such as leave, savings, loans etc.

• organised association or union

• covered under social protection benefits such as life insurance, health insurance, pension, gratuity etc.

The formal economy is counted in GDP

Govt raises revenue through taxes

Most Government policies on trade and investment cover the formal economy

Private sector: Formal economy

The informal economy:

• No written rules or agreements

• Contracts based on verbal understanding

• No fixed conditions: wages, hours -- relies on daily earnings.

• The work place often congested and unhygienic

• Workers rarely have collective advocacy

• Poor access to social protection schemes and financial services, insurance

Govt does not collect taxes; regulate; legislate or develop appropriate policies to support growth

Private sector: Informal economy

• …as employees, entrepreneurs, customers, and community partners.

• Helps companies by broadening the talent pool; increasing productivity; providing an opportunity to transform local and global markets

• Benefits result from:

• Improved human capital

• Enhanced market demand

• Enabling operating environment

• Improved human capital

• .

Formal sector: invest in women

Expand:

• Leadership in the workforce

• or in the indirect workforce along the supply chain

Improve production quality and output:

• Access to skills training

Improve talent management:

• Fair and transparent HR systems which are family friendly attract talent of both women and men

Improve innovation capacity:

• Increase gender diversity in the workforce

Improved human capital:

Women control the majority of global consumer spending: $29 trillion

Our specific needs are unmet

• Design and market to specifically service women

Consumer products don’t always reach the women’s market without specific effort

• Open up markets for women can drive growth

Market demand:

Gender challenges operating on the market, originate outside the market

• Women’s access to health and education

• Access and use of finance and technology

• Gender based violence

• Legal structure prohibiting women’s access to certain jobs

Social norms shape women and men’s participation in the formal economy

• Introduce policies that can intervene constructively in these dynamics

Operating environment:

The importance of the informal economy

The informal economy links to the formal economy

Women are overrepresented in the informal economy

• primary source of employment

• contributing to family businesses so get no direct pay

• many exposed to low pay and unsafe working conditions

• higher share in the most disadvantaged and marginalized segments of the informal economy

• More than 60 per cent of the world’s employed population earn their livelihood working in the informal economy

• Informal work exists in all countries, irrespective of the individual country’s level of socio-economic development

• major challenge, and opportunity, for sustainable development.

Safe Cities and Safe transport

Funded through Australia and New Zealand

Partnership with NCDC and District MPs

Improves women agency and safety through market interventions:

• Gender sensitive infrastructure and safe transport system

• Improving capacity of duty bearers to manage markets and transport

• Improving women’s leadership within markets and transport through vendor groups and their ability to run their own businesses

• Changing gender norms to improve safety

UN Women PNG work

Partnership with Dept for Community Development and Religion, CIMC, EU and UN Women

Some baseline data exists from 2001

PNG has a constructive informal sector policy framework

Will help develop this further

It is a global first.

PNG case study: Informal sector audit

Field work collection of data in 6 regions so far

• Looking at work for cash, not subsistence farming and care work

Total of 2500 interviews

Cross validation with 5000 phone interviews

Focus groups to interpret results

Methodology

20% of GDP, based on turnover

• $4billion US /year

Take out extractives, it’s 30%

Add in agriculture produce excluded from cash economy, it’s 60%

Over 80% of adults are employed in the informal economy

Many in waged employment also work in the informal economy

Therefore:

• around 90% rely on it for income

• Major provider of goods and services to local people (affordable, accessible and responsible for food security)

• Major contributor to local economies -- key driver plus multiplier effect.

• Positive growth since 2001

How big is the informal economy here?

More men are involved:

• In 2001: 85% women

• In 2018: 60% women

Older age groups – 35 years old on average

Better educated now than in 2001 – 20% have no schooling

15% have worked in the formal economy

2-3 unpaid workers/enterprise (more family based businesses)

Equal number of male and female helpers

Fewer children involved

Less than 5% disabled in interviews, but 20% in phone survey

Emerging trends:

80% involved in trade though lacks diversity

30% sell betel nut as main secondary source of income

20% sell fresh fruit and veg

15% sell store goods

13% sell cooked food

Formal sector workers in the informal economy:

• Let rooms

• Raise livestock

• Grow crops

10% lend money:

• Extremely high interest rates offsetting high risks

• Lending to formal sector workers

Very little access to financial services

What kinds of work are they doing?

Two thirds work in residential areas

Around a quarter in markets

The rest near offices and the highways

More would like space in markets

Enterprise start ups cost around PNG K200-300 but some spend PNGK20,000 (more likely to be men running chicken or trade stores)

Cost of doing business is increasing (transport and fees)

Virtually no borrowing; using savings to build the business

Most work more than 45 hour weeks.

What resources are used?

Net profits: PNGK300-500/week

40% spent on essentials (food and household goods)

Women are spending more on education than men

Increased discretionary spending

Around 55% make substantial savings providing for ‘rainy day’ needs

Saving for buildings and cars, expanding the business

Most save their money at home, not in banks

Outcomes for households

Managing credit!

Damage and disruption caused by drinking (unemployed young men)

Lack of shelter and access to basic services

Law and order

Roads and transport

Lack of organized wholesaling

Lack of representative structures to advocate

Lack of financial services

Difficulties getting registered as an SME

Lack of business advice and financial training

Barriers to greater productivity

They are the same in both the informal and formal economy!

BUT The actual interventions need to specifically meet diverse market needs.

Key policy areas for interventions

Formal economy Informal economy

Improved human capital Build economic capacity through skills and diversification

Enhanced market demand Establish systems and pathways that enable business growth

Enabling operating environment

Create a supportive enabling environment that strengthens business confidence

Thank Yoususan.ferguson@unwomen.org