Gender Inequality, Economic Development and the Knowledge Economy

Second MENA Knowledge for Development Forum Marseilles, France March 15-16, 2004 Gender Inequality, Economic Developmentand the Knowledge Economy The World Bank

Overview • Gender Inequality and Economic Development • Gender Inequality and Human Development • Gender Inequality around the World • Gender Inequality and the Knowledge Economy • ICTs and Gender Inequality Knowledge for Development Program 2004

Gender Inequality and Economic Development Knowledge for Development Program 2004

Gender Inequality andEconomic Development • Main channels through which gender inequality affects economic development • Selection-Distortion Effect • Environment Effects • Demographic Transition Effects • Better Governance and Institutions Knowledge for Development Program 2004

Selection-Distortion and Environment Effects Gender Inequality in Education Boys with lower innate abilities get educated Less Educated Mothers - Less intellectually stimulating environment Less life-long learning at the household level Lower quality of students Lower Quality Labor Force Gender Inequality in Employment Lower TFP Growth Marginal Product of Capital Decreases Less Investment Lower Economic Growth Knowledge for Development Program 2004

Environment Effects • Gender inequality in education – less female education at each level of male education • Less-educated mothers provide environments that are less intellectually stimulating • Resulting in a lower quality of students • Equally educated siblings and couples tend to strengthen each other’s educational success and life-long learning • Gender inequality in education tends to result in less life-long learning Knowledge for Development Program 2004

Demographic Transition Effects Gender Equality in Education Education attainment of women increases Lower fertility – less children Aggregate Savings Increases Relative size of the working–age population increases Marginal Product of Capital Increases More Investment Higher per-capita Income Knowledge for Development Program 2004

Better Governance and Institutions • Women’s participation in public office tend to be associated with • Cleaner businesses and government • Less corruption • Better governance and institutions tend to be associated with higher rates of economic growth Knowledge for Development Program 2004

Governance and Institutions Corruption Index Index of women’s economic and social rights Source: World Bank, 2001 Knowledge for Development Program 2004

Gender Inequality in the World Knowledge for Development Program 2004

Gender Inequality and the Knowledge Economy Knowledge for Development Program 2004

Knowledge Economy Framework Knowledge Economy Economy in which knowledge is the engine of growth Four Pillars of the Knowledge Economy • Economic incentive and institutional regime that provides incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship • Educated, creative and skilled people • Dynamic information infrastructure • Effective national innovation system Knowledge for Development Program 2004

KE Index with Gender Variables Knowledge for Development Program 2004

Gender Inequality in MENA Knowledge for Development Program 2004

ICT and Gender Inequality Knowledge for Development Program 2004

ICT World Bank Group defines ICT as consisting of hardware, software, networks, media for collection, storage, processing transmission, presentation of information (voice, data, text, images) OECD defines ICT sectors as a combination of manufacturing and service industries that capture, transmit and display data and information electronically. ICT can play an important role in economic development By providing new and more efficient methods of production By improving the delivery of government services By facilitating management and transfer of knowledge Knowledge for Development Program 2004

Some facts on ICT Sector • Numbers ($1 Trillion in Revenues, Dec 2003) • Efficiency gains in traditional sectors • Creation of New Services • Impact on Employment: Knowledge Worker • ICT as a sector • ICT as a tool for client sectors • The Dynamism, Growth, and Virtual Nature (inherent equality) of ICT created a need for a new Learning/Training Industry & Workforce

ICT: Economic Opportunity for MNA women • New sector. No legacy from the past • Women are by nature good at information aggregation; creation and dissemination • Allows unemployed graduates to find a new niche in local creation in their field of expertise • Allows work to be virtual. Can combine workforce in one location (childcare) or women can work in politically correct locations with the right tools, • Infrastructure, and training • Allows life long learning and re-skilling from home

ICT Entrepreneur Profile • Great networker, Extrovert • Dealer and wheeler • Pushy/Aggressive ; marketeer • Well connected to industry / practitioners • Access to Finance and VC • Travel; Partnerships, Participation in exhibits, events and conferences • Enjoys Freedom of Expression

ICT and Gender Inequality Channels via which ICT can improve gender in equality • Influencing public opinion on gender equality • Web sites; news; networks; associations on line • Increasing women’s education • Via access to public information on relevant topics without having to go through traditional channels • Allowing more economic opportunities for women • 10 PERCENT OF OECD LABOR FORCE is employed in ICT SECTOR (directly and indirectly) Knowledge for Development Program 2004

ICT and Gender Inequality Influencing Public Opinion on Gender Equality • ICT increases flow of knowledge and information • Increases exposures of customs, norms and practices from other cultures and societies • Raises the awareness and informs the constituency of gender inequality issues, on injustices or flagrant system failures • Increases pressure on policymakers to include gender as an important component of their social and economic policies, and women as an important segment of their constituency Knowledge for Development Program 2004

ICT and Gender Inequality Increasing Women’s Education • Lack of schooling coupled with gender biases that dictate domestic roles for women tend to perpetuate gender disparities • ICT allow women to obtain and update their skills for equal participation in the knowledge economy • Increasing access through distance learning • Broadening the availability of quality educational materials • Efficiency and Effectiveness of Educational Administration Knowledge for Development Program 2004

ICT and Gender Inequality Increasing Economic Opportunities for Women • ICTs allow women to telecommute and hence they are able to work and interact with men without face-to-face contact and even without being in the same place • ICTs allow micro and small enterprises (MSE), which are dominated by women, to compete and to partner in the marketplace • ICT allows women to save time and start valuing their own time • ICT saves on transportation time and hazards Knowledge for Development Program 2004

Q & A • Many thanks for your participation! • Pls contact Samia Melhem Smelhem@worldbank.org for additional questions or follow-up

Gender Inequality, Economic Development and the Knowledge Economy