Women Quotas – Norway’s Experience

Women Quotas – Norway’s Experience Norwegian Ambassador to Bulgaria Tove Skarstein Sofia 5 May 2011

Gender Equality • Norway’s most important political and social achievement is the fully-fledged welfare society – economic and social well-being of citizens in focus • Norway has the highest living standard globally, according to UN’s human development index rankings • Modern Norwegian welfare state is founded on women’s participation in the work force

Gender Equality • Nordic welfare model has two milestones: a high income growth and an even income distribution • Norway achieves both goals owing to the high female labor participation • In 2008 Norway had the smallest gender gap in the world according to the Gender Gap Report of the World Economic Forum. In 2010 Norway ranked second after Iceland • To date approx. 80% of all women aged 25 to 66 are in the labour force (compared to 52% in the 1970s)

The History Behind • Societal change has to be backed by profound policy giving women more equal opportunity • 1950s onwards – streamlined state policy to make women more visible on the labour market and help them combine work and family life - improved parent leave rules - flexible working hours - more kindergartens

The History Behind • 1960s onwards – welfare sector-jobs helped women move from the informal economy (household, agriculture etc.) to the formal economy • 1970s – introduction of voluntary quotas by some political parties • 2011 – a complete gender balance (50-50%) in Norwegian political parties and government

The History Behind • 1979 – the Gender Equality Act comes into force – women’s position should be improved • since 1981 – the Gender Equality Act fixes rules on gender representation (40% since 1988) in publicly appointed boards, committees, councils, delegations etc. A milestone towards breaking the glass ceiling • since 1986 – at least 40% of each sex in the Cabinet. Today the representation is 50-50

The History Behind • 1993 – provisions in the Municipal Act secure gender balance also in local political committees • 2003 – four company laws are amended to secure 40% of both genders on boards of state- and municipality-owned companies, as well as public limited companies • 2009 – legislative amendments introducing gender balance requirements also to small municipal enterprises

Norway was the first country to demand gender balance on company boards

Quota Regulations of 2003 – the Basics • Cover all state-owned and municipality-owned companies, as well as public limited companies • Affect the largest companies only • Do not refer to privately owned limited companies (160 000 mostly family owned small and medium enterprises with approx. 17-18% women). Spill-over effect much expected

Quota Regulations of 2003 – the Basics • Do not regulate the daily management of business but the overall strategic decision-making of enterprises • Regulate the appointment of representatives to company boards. Do not actually imply positive discrimination of women • Private business sector was imposed a time limit until 2005 to achieve gender balance. In full force since 2008 • The National Business Register investigates the set-up of company boards

Arguments against Quota Regulation • Controversial introduction of quota legislation – highly debated and criticised by the Business Confederations • Major concerns: • Women are elected to boards because of their gender not their professional capacity? – No, in Norway it is only competence which matters. • Qualified women are hard to find? – No, if we look beyond the old boys’ network and cast our nets wider. • Will women take on such responsibilities? – Yes, if one gives them the possibility to do so.

The State of Affairs Today • 2003 – PLCs recruited only 7% of women to their boardrooms • The reason: competent women were not seen and recruited • 2010 – 40% of women on the boards of companies covered by the quota regulations

The State of Affairs Today • 2009 – 48% of women in central government administration • 2009 – 42% of women at middle management level • More and more girls take economic and administrative courses at the university

Why Quotas? • Quotas – not a goal in itself but a tool to display women’s competences. The goal is to achieve and maintain gender balance • Quotas secure a return on the investments in education and training • Economic grounds: a competitive economy needs the best heads and hands, regardless of gender • Women on boards = more diversity, better business, more transparency, improved organizational climate

Why Quotas? • Moral grounds: equal opportunity for all, regardless of gender (a key democratic principle) • There is strong global-wide evidence that higher women employment boosts GDP • Countries suppressing women’s economic rights are lagging behind economically • Quotas really work in Norway! Data from the Norwegian Institute for Social Research show that women on company boards are “just as qualified as men”

Additional Tools to Promote Gender Equality • Other instruments to facilitate the smooth implementation of quota regulations • Job advertisements encourage the underrepresented gender to apply • Mentor and leadership training programmes open for women • Expanded job databases and networking platforms, involving more women

Royal Norwegian EmbassyPlatinum Business Centre, 26-30, Bacho Kiro Str.Tel.: +359 2 981 11 06, e-mail: emb.sofia@mfa.nowww.norvegia.bg

Women Quotas – Norway’s Experience