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Sustainable development rests on maintaining long-term economic, social and environmental capital. While the importance of investing in economic assets to assure progress has long been recognised, sustainable development brings attention to the ecological and human dimensions which are also key to growth and development. In failing to make the best use of their female populations, most countries are underinvesting in the human capital needed to assure sustainability. Although women account for over one-half of the potential talent base throughout the world, as a group they have been marginalised and their economic, social and environmental contributions go in large part unrealised.
This market and systems failure is discussed here in terms of gender constraints, which are based on the socially-constructed and historically- developed roles of men and women. Exploring the various aspects of sustainable development with a gender perspective, e.g. the place of women, highlights the economic costs of continuing gender gaps. It also illuminates how female contributions can be better realised at present and how strategies can be developed for meeting the needs of future generations, women and men alike. This “engendering” of analytical, statistical and policy work, including that of the OECD, provides the basis for enlightened policies and more sustainable development and growth.
Women, which constitute half of the world’s human capital, are one of its most underutilised resources. Sustainable economic growth at national and global levels depends on women joining the labour force and fuller use being made of their skills and qualifications. More working women would also help offset the negative effects of declining fertility rates and ageing populations in many OECD countries.
In recent decades, a large share of economic growth in the OECD area has come from employing more women. Since 1995, narrowing the gap between male and female employment rates has accounted for half of the increase in Europe’s overall employment rate and a quarter of annual economic growth. It is estimated that if female employment were raised to the male rate, growth in gross domestic product (GDP) would be substantial, particularly in countries such as Japan (CSR, 2007). Similarly, a study in the United Kingdom found that the country could gain 2% of GDP by better harnessing women’s skills (WWC, 2006).
The rate of female participation in the labour force is significantly lower than that of men in all countries. On average in OECD countries, about 60% of women are employed. However, there are wide variations stemming from social and economic factors as well as public policies. The employment gender gap is most pronounced in countries such as Turkey, Mexico, Italy and Greece, where less than 50% of women work. Female employment rates are highest at over 70% in Iceland, Denmark, Norway, Sweden and Switzerland.