Issue No. CCXIII; November 1, 2013
THIS ISSUE’S HIGHLIGHTS:
I. GLOBAL SUMMIT OF WOMEN 2014: PARIS, FRANCE
II. EFFECT OF WOMEN’S WORKFORCE PARTICIPATION ON ECONOMIC GROWTH
III. WHY WOMEN ARE BETTER INVESTORS THAN MEN
IV. BRIDGING THE INTERNET GENDER GAP IN THE DEVELOPING WORLD
V. HOW TO GROW WOMEN-OWNED ENTERPRISES
I. GLOBAL SUMMIT OF WOMEN 2014: PARIS, FRANCE
One of the world’s most dynamic and enchanting cities, Paris, France is the site of the 2014 Global Summit of Women hosted by France. With the support of the French government, the Ministry of Women’s Rights, and many leading women executives from the country’s top companies, the Summit — the foremost international economic forum for women in business, government, and civil society — takes place at the Marriott Rive Gauche Hotel on June 5-7, 2014.
With a Cabinet equally divided between male and female Ministers, a Capital city that soon will be led by a woman Mayor, and major companies now boasting 28.6% of board seats held by women, France is a fitting Host for the expected 1,000 women leaders from all corners of the globe for the 2014 Summit. France’s Host Committee, chaired by Minister of Women’s Rights Najat Valloud-Belkacem and consisting of over 40 of the country’s top business leaders, eagerly awaits its opportunity to welcome Summit delegates to the “City of Lights”. France’s President Hollande is slated to speak at the Summit, where he will be joined by the President of Kosovo Atifete Jahjaga as well as the former President of Kyrgyzstan Roza Otunbayeva. The majority of Summit participants, however, are hundreds of women in business from 70 countries.
Under the theme of “Women: Redesigning Economies, Societies”, the 2014 Summit emphasizes women’s pivotal role in bringing about the necessary changes in the economy and in politics, as Europe and other countries work their way out of the worst economic crisis in decades. Throughout the three days of thought-provoking plenary sessions, breakouts, and discussions, the Summit program will provide best practices of how women are succeeding in re-shaping the business world, re-engineering their communities, and re-defining global leadership.
Given the strong interest expressed in the 2014 Global Summit of Women, delegates are urged to make their arrangements early as hotel space is limited and visa requirements stringent. Early-bird registration is now available. To view the Summit program schedule, to register and to make hotel reservations, go to www.globewomen.org, and click to the Global Summit of Women.
II. EFFECT OF WOMEN’S WORKFORCE PARTICIPATION ON ECONOMIC GROWTH
Women’s contribution to economic growth is far below its potential and many countries are missing out on the economic benefits that could come from increased female participation in the workforce, according to a new study by the International Monetary Fund (IMF). The report, “Women, Work, and the Economy shows that despite some improvements, progress toward leveling the playing field for women has stalled. If the number of female workers rose to the same level as men, GDP would increase by 12% in the United Arab Emirates, by 9% in Japan, and by 5% in the United States.
Unfortunately, women still account for most unpaid work, and when they are paid, they are overrepresented in the informal sector and among the poor. In addition, they continue to be paid less than men for the same jobs in nearly every country.
IMF Managing Director Christine Lagarde urged policymakers around the world to take action and implement policies that tear down obstacles for women. She pointed to government tax and spending policies which could help boost female employment. “Taxing individual rather than family income – which in many economies imposes a higher marginal tax on the second earner in households – would encourage women to seek employment,” she said. In addition, linking social benefits to participation in the workforce or training can also help increase female employment, she said, as would the availability of good and affordable childcare and greater opportunities for paternity and maternity leave. (Source: IMF Direct 9/23/13)
III. WHY WOMEN MAKE BETTER INVESTORS THAN MEN
That women manage family purse strings has always been a given in many cultures, but who would have thought that women also make great investors? A seven-year University of California study showed single female investors outperforming single men by 2.3 percent, while female investment groups outperformed male counterparts by 4.6 percent. Why do men make poor investment decisions? Overconfidence. According to the study, men are driven by testosterone, bragging rights, and the desire for a “quick win” when they make their investments. They buy and sell more frequently, thus racking up more transaction fees, while women show restraint and a willingness to leave their investments alone for the long term.
“In our research, male investors traded 45 percent more than female investors,” Professor Terry Odean says. “Men are just making a lot more bad decisions than women. More trading leads to lower performance.” Women are also “emotionally unattached” to their investments and will easily unload a losing investment, while men tend to hold on to a bad investment in the hopes that it will eventually turn itself around rather than having to admit defeat or own up to an error.
While women are often stereotypically characterized as emotional and irrational and men as logical and reasonable, this study shows that with investments, women have proven to be the more logical beings as demonstrated through their investment savvy and prowess. In fact, the gender roles have been reversed as men are showing a tendency to let their emotions cloud their ability to make sound investment decisions based on critical thinking, while women are able to do so with aplomb. (The Washington Post, 10/11/13)
IV. BRIDGING THE INTERNET GENDER GAP IN THE DEVELOPING WORLD
While many women in developed economies take Internet access for granted, there are still millions of women in emerging economies facing limited availability of web-based connectivity. In Sub-Saharan Africa, for instance, 40% of women cannot access the Internet, according to Intel. In order to reduce this Internet gender gap, Intel Corporation recently announced a new initiative to expand digital literacy skills to young women in developing countries. The program, known as “She Will Connect” will begin in Africa by aiming to reach 5 million women and to reduce the Internet gender gap by 50 percent. To achieve this, Intel will work with a diverse set of partners including global and local NGOs and governments.
“The Internet has transformed the lives of billions of people,” said Shelly Esque, vice president of Intel’s Corporate Affairs Group and president of the Intel Foundation. “It functions as a gateway to ideas, resources and opportunities that never could have been realized before, but … girls and women are being left behind. Closing the Internet gender gap has tremendous potential to empower women and enrich their lives as well as all the lives they touch.” (Intel press release: 9/30/13)
She Will Connect will test a new model that integrates digital literacy with gender and development programming targeting women and girls through an online gaming platform and a peer network. The online gaming platform aims to deliver digital literacy content for smartphones and tablets through gaming. Through the Peer Network, Intel is working with World Pulse, a non-profit social media enterprise, to allow women to exchange ideas, find support and mentorship, and obtain relevant content in a safe and supportive peer network.
V. HOW TO GROW WOMEN-OWNED ENTERPRISES
How can we best help women entrepreneurs grow in emerging economies? The United Nations Foundation along with the ExxonMobil Foundation canvassed hundreds of women entrepreneurs, microfinance experts, some SMEs to find out what works. In the report, A Roadmap for Increasing Women’s Economic Empowerment, two basic recommendations emerged:
- Provide in-kind capital support (raw materials, livestock, equipment) instead of cash. At the 2013 Global Summit of Women in Kuala Lumpur, Malaysia in June, UN Foundation Senior Fellow and the report’s lead author Mayra Buvinic stated: “When poor women get a windfall of cash, they feel social pressures to spend some of their cash for their families, so they don’t invest all the money in the business,” she said. “Instead, if you give them inventory, that nudges them to keep the investment in the business,” leading to better economic outcomes for women who receive this kind of support.
- Provide banking services through mobile phones because it gives women privacy in their financial transactions and again eliminates social pressures from relatives. While millions of women in developing countries do not even have cook stoves in their homes, the majority have access to cell phones that can connect them to information and banking services not normally available to the poor.
Other recommendations include distinguishing what young women entrepreneurs need vs. those who are more mature, since their priorities differ. Clearly, paying attention to the cultural and demographic contexts in which women entrepreneurs operate is very important in terms of determining what they need in order to grow their businesses.
For video of Buvinic’s remarks, see http://www.youtube.com/watch?v=kSijmGCtHOM.
To view or download a copy of her 2013 Summit presentation slides, visit http://summit.globewomen.org/summit/2013/Crowdfunding.BUVINIC.pdf.
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