Economic Growth Is Driven By Women's Participation In The Workforce

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Pakistan lags its peer countries on the critical metric of women's participation in the labor force. Eliminating the barriers that women face at home and at work would set off a virtuous cycle of development, and improve Pakistan's economic prospects.

2024-04-16T17:51:00+05:00 Kumail Mehdi

The true spirit of development demands that women's participation in the labor force must remain healthy. Among many indicators of economic development, women's participation rate in the labor force is one of the reliable methods to measure development prospects. In the 21st century, developing countries, let alone the developed world, have made amazing strides in economic development. One such example is Bangladesh, where we see a direct correlation between sustainable economic growth and higher rates of female labor participation. Its economy is among the few countries to maintain a high growth rate even during the Covid-19 pandemic, at 6.9%. To achieve this remarkable feat, Bangladesh made some critical policy changes. According to the World Bank, in Bangladesh, from 2003 to 2016 female labor participation increased from 10% to 36%. Its garment industry, which contains a high number of female workers, has been the main driver of its economic development. Consequently, the data shows that there exists a positive correlation between women's participation in labor and economic growth.

In the case of Pakistan, women's labor participation remains bleak. According to the Global Economy, it has a 24.61% female labor participation rate against Bangladesh’s 37.69%. At the national stage, according to a UN Women report, only 26% of Pakistani women participate in the labor market against 84% of men. At the provincial level, Punjab has the highest women’s participation in the labor force at 31%, Sindh at 18%, KPK at 19%, and Balochistan at 14%.

Similarly, Pakistan’s economic performance, given its potential, is unpleasantly low and concerning. According to the Economic Survey of Pakistan 2022-2023, GDP growth stood at 0.29% in FY2023. Per capita income declined from USD 1,765 in 2022 to USD 1,568 in 2023. Likewise, the investment-to-GDP ratio stood at 13.6% in FY2023, compared to 15.6% in FY 2022.

The patriarchal mindset of our society is a significant psychological barrier to women's labor participation. Patriarchy causes widespread economic, political, and social violations of women’s rights.

With the economy embroiled in a major crisis, it is need of the hour that women's participation be increased to achieve sustainable development. Examples and data suggest that the true spirit of development demands that women's participation in the labor force must remain high. When more women work, economies grow. Increased women’s labor participation enhances economic diversification and income equality for shared growth and prosperity. Women working adds competition and creativity to an economy. With a healthy workforce comprising women, the labor bulge does not deplete, which is an encouraging sign for economic development. It makes women financially independent and enhances their decision-making power within households.

In Pakistan, there exists a plethora of challenges that women face in labor employment. Firstly, women remain financially dependent, which curtails their say in household level decision-making. As a result, women fail to assert their preferences and rights. Secondly, a lack of safety, especially for women in the working environment, remains a pervasive concern. Although laws, such as The Acid Control and Acid Crime Prevention Act 2011, and The Protection Against Harassment of Women at the Workplace Act 2010, exist to ensure women's security, the distorted justice system of our country erodes the foundation of personal security. Thirdly, the patriarchal mindset of our society is a significant psychological barrier to women's labor participation. Patriarchy causes widespread economic, political, and social violations of women’s rights.

To ensure active women's labor participation, the government needs to take concrete steps in the financial landscape. According to the International Growth Center, if women's participation in labor was at par with men, Pakistan’s GDP could increase by 60% by 2025. Through public and private partnerships, the government can launch skill-imparting drives to enhance women’s capabilities. This partnership could boost small-home-based industries, which make cultural artifacts and pottery. To achieve this, the government should introduce small interest-free loan schemes for women to encourage their financial independence. This is because without financial independence at the domestic level, there can be no sustainable development.

A wide range of areas should be addressed to achieve economic gains and set into motion this virtuous cycle of development. These areas include the political, administrative and social spheres. Doing so would ensure Pakistan’s Vision 2025, which for having an enabling environment for women so that they may realize their full potential.

In the social domain, Pakistani society displays patriarchy and regressive social values targeted at women. Women’s positions are mediated by wealth and land, and the degree of men’s honor depends on the possession and control of wealth, women, and land.

In the realm of politics, Pakistan has a quota of 60 seats in the National Assembly. Without that quota, political participation would be reduced to only 3%. According to one study, women legislators bring a unique perspective to governance, adding inclusivity, gender equality, and family-friendly policies in areas such as income, parental leave, and employment. So greater women's political participation would bring about more responsive and equitable local communities. To achieve political participation, the rule of law should be ensured. The promise made in the 18th Amendment of establishing local governments, and the devolution of power must be completed. The pace of justice must be enhanced to reduce crimes against women and deter criminal instincts with the fear of punishment.

In the social domain, Pakistani society displays patriarchy and regressive social values targeted at women. Women’s positions are mediated by wealth and land, and the degree of men’s honor depends on the possession and control of wealth, women, and land.  Men receive social preference in education, health, and decision-making. There is a common perception among people that Islam prohibits women’s role as decision makers. Such regressive and patriarchal values are the biggest threat to women's empowerment. To set in motion a virtuous development cycle, encompassing economic and human development, Pakistan should take steps to address these. There is a need to promote inclusive, liberal, and quality education. People should be made aware that the link between honor with women's chastity that is so commonly believed in our society has no logical basis. The government should invest in women's health across the country, especially in rural and remote areas, because with a sound focus on women’s health, communities flourish.

Pakistan is struggling with a seemingly never-ending list of economic woes. However, it can address them by increasing women's participation in the workforce. Developing countries such as Bangladesh have made significant inroads by increasing women’s labor participation. In this regard, Pakistan needs to address the financial challenges, while simultaneously taking into account social and political barriers. Doing so would bode well for setting us on the track to sustainable economic growth and human development.

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