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IT and Women’s Labor Force Participation in the Middle East

IT and Women’s Labor Force Participation in the Middle East . NEC Corporation Yasushi Kaito, Advisor December 8, 2004. Contents. 1. Major Issues in the Middle East 2. The Middle East Economic Growth 3. IT Industry and the New Economy & Society under Globalization 4. Proposal.

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IT and Women’s Labor Force Participation in the Middle East

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  1. IT and Women’s Labor ForceParticipation in the Middle East NEC Corporation Yasushi Kaito, Advisor December 8, 2004

  2. Contents 1. Major Issues in the Middle East 2. The Middle East Economic Growth 3. IT Industry and the New Economy & Society under Globalization 4. Proposal

  3. 1. Major Issues in the Middle East Slow Economic Growth GDP growth/person 1990 - 2000 0.7% (Asia: 6%) Small Foreign Direct Investment Small Economic Scale $600Bil (Equal to Spain) Uneven Distribution of Wealth ***** Declining Middle Class High Unemployment 2003: 13.3% Youth: 27% (World Avg.:6.2%) Regional Instability Brain Drain 25% of 300,000 college grads flow outside the region R&D 0.2% of GDP, Government-lead, Only 2% to IT field Isolation from Global Trends Materialistic/ Power-oriented Youth Population Under 20: 45.9% Under 35: 70.8% Education System ***** Productivity Gender Inequality Data：Arab Human Development Report 2003, UNDP US Bureau of Census 2002 ILO Global Employment Trends

  4. 1-1.Small Foreign Direct Investment Japan Middle East • Foreign Direct Investment (2000): • $2.2Bil • (only 1% of total investments to • developing countries) • - FDI against GDP ・ Japan, EU & USA share trends of FDI balance (%) EU USA Japan Data: 2002 JETRO White Paper on International Trade & Foreign Direct Investment World Bank MENA Development Report

  5. 1-2. Gender Inequality Labor Force Gender Parity Index: Ratio of the percentage of women who are economically active to the percentage of men who are 32 25 18 14 12 10 9 8 7 6 4 4 2 Data: 2004 World Development Indicators Middle East

  6. 1-3. Japanese Women’s Advancement into Society Female Employment Rate for Women Male Data: The Yomiuri Shimbun, others

  7. 2. The Middle East Economic Growth 2-1. GDP Comparison by Region: 1980-2002 (Billion $） Latin America & Caribbean Remarkable growth in manufacturing World’s manufacturing base Immense market East Asia & Pacific Europe & Central Asia South Asia Middle East & North Africa Sub-Saharan Africa 2002 Data: 2004 World Development Indicators

  8. 2-2. Analysis on the Slow Economic Growth Economic Growth Annual Avg. Growth (1990 - 2002) Middle East: 3.2% （East Asia: 7.3%） （Developing country avg.: 3.4%） Per Capita Growth (1990 - 2000) Middle East: 0.7% (East Asia: 6.0%) (Developing country avg.: 2.0%) Human Capital Physical Capital （Capital Development） Natural Capital （Natural Resources） Total Factor Productivity (Technology) + (Institution) ・World share of product exports 4% (1990)3% (2002) ・% of high-tech product exports 2% (17%) ・Articles on science & technology 3,617 （5% of developing countries） Vs. GDP percentage ・Foreign capital vs. inward investment 0.9% (2.5%) 　・Private investment 50.2% (55.9%) ・Rich energy resources ・ Adult literacy （M/F) 76%/55% (83%/70%) ・Female Employment Rate 33.8% (60.3%) ・Education does not meet societal needs ○ × × × （　）：Developing country avg. （　）：Developing country avg. Adult： 15 years or older （　）：Developing country avg. * Data as of 2002 Data: 2004 World Development Indicators

  9. 3. IT Industry & the New Economy and Society under Globalization CHANCES 1. New Product/ New Market 2. End of Inflation 3. Improvement of Productivity STRESS Adaptation to New Rules: *Speed *Borderless *Knowledge-Intensive *Severe Competition New World Economy Technological Innovation Economic Innovation Service Knowledge-centered Society IT Industry Reference Data: “High Noon,” J.F.Rischard 　“Strategies for Industries in Japan,”Yoko Ishikura, etc.

  10. 3-1. Characteristics of the IT Industry Virtual Creating New Society Anywhere Regardless of Workplace IT Industry Added Value Localization Localized Business Anytime Regardless of Working Time Human Power Affordable Low Start-Up Cost Networking Borderless Business Anyone Regardless of Nationality/Gender • IT Industry: • Great Potential for Growth • “Women-Friendly” • Huge Capacity for Absorbing Labor Force

  11. Virtual Call Center 3-2. Women-Friendly IT Works IT Industry: - Offers chances to skilled women (foreign language, law, finance, etc) - Allows homemakers to work at home (SOHO) Work-at-Home ・Data Input ・Translation ・Call Center Education- Related ・IT Education Designing ・Web Site ・Contents Technology- Oriented ・Software Design ・IT Consulting Entry-Level Troubleshooting -No Customer Info Required -No Advanced Skill Required Customer

  12. 4. Proposal We should deepen business interactions between Japan & the Middle East in the field of human capital through the following activities: 1) Work on issues shared by Japan and the Middle East to increase women’s participation in the IT society - Set up a place for interactions among women in IT businesses in Japan and the Middle East; 2) (In future) Establish venture capital funds and foster female IT entrepreneurs (FYI) Japanese Community Site for Improving Women’s Activities: “eWoman” http: //www.ewoman.co.jp

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