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Addressing the economic gender gap: Perspectives from Japan and South Africa

Author: Scarlett Cornelissen

On 3 March 2022, in association with the Embassy of Japan in South Africa, we hosted a webinar on ‘Towards closing the gender gap in economic participation: Perspectives from Japan and South Africa.’

The context for the webinar was two-fold. First, International Women’s Day was celebrated on 8 March 2022. As prelude, the webinar set out to reflect on the progress that the international community has made towards women’s empowerment, particularly in the economic domain.

Second, since at least the 1970s studies have suggested that lack of participation by women in the economy negatively affects the generation of human capital, with spill-over effects on labour markets and productivity.

As a result, addressing gender disparity has been a key focus of the global governance agenda. Gender equality is one of the United Nations (UN) Sustainable Development Goals and was also part of the earlier Millennium Development Goals. Yet, despite this, gender inequality remains a challenge in many parts of the world.

A report by the UN High-Level Panel on Women’s Economic Empowerment suggested that in 2016 there were globally 700 million fewer women of working age in employment than men, and that those who were employed tended to be in jobs with lower pay, poor working conditions and fewer career prospects.
In the current era there is evidence that the COVID-19 pandemic has had an unequal impact on women and men, affecting women more negatively. A 2021 report of the World Economic Forum shows that women’s employment has fallen in the COVID era, and estimates are that closing the global gender gap has been set back by a generation, from 99.5 to 135.6 years.

Against this background, the webinar featured experts from Japan and South Africa to discuss the progress and obstacles towards economic inclusivity and women’s empowerment in the workplace.

Towards closing the gender gap in economic participation: Perspectives from Japan and South Africa

A large body of research supports the argument that gender disparity has economic consequences. It is recognised that more opportunities for women, and attention to women’s empowerment, lead to more favourable outcomes for the next generations. Yet, despite this, gender inequality remains a challenge in many parts of the world.

The keynote address was delivered by Ms. Kaori Sasaki, a diversity expert, best-selling author, and sought-after commentator who appears regularly in the Japanese media. For the past three decades Ms. Sasaki has produced and chaired the International Conference for Women in Business, the largest diversity conference in Japan.

In the panel discussion that followed, Prof. Thuli Madonsela, director of the Centre for Social Justice at Stellenbosch University, reflected on her experiences in the legal and economic spheres in South Africa. She emphasised the importance of women’s involvement in entrepreneurship, at the same time calling attention to the long history of entrepreneurship by marginalised groups, including women, in South Africa. Using the analogy of ‘climbing mountains,’ she noted that advancing social justice and closing the gender gap requires scaling many peaks.

Dr. Futhi Mtoba, a former chair and partner of the board of Deloitte Southern Africa drew on her work and experience in the corporate world and argued that women business entrepreneurs face similar, but also unique challenges compared to their male counterparts. She argued that literacy and education for women are of fundamental importance and the pathway to empowerment.

In her remarks, Prof. Machiko Osawa, Professor Emeritus of Economics at Japan Women’s University and former director of the Research Institute for Women and Careers, highlighted the factors that influence women’s economic participation in the Japanese context. These include the wage and taxation systems which can disincentivise women to see full-time employment.
The speakers addressed the issue of women’s economic inclusion from the viewpoint of their specific professions and areas of expertise.

From the discussion it emerged that there are key differences between Japan and South Africa.
Japan is a leading economy in the Indo- Pacific as well as globally and has introduced a number of reforms and policies, such as ‘Womenomics’ aimed at closing the gender gap. South Africa faces structural and societal issues that are less prominent in Japan, but has similarly attempted to introduce laws that support women’s advance.

Common issues faced in both contexts include factors that impede women’s access to financing, e.g. with business start-ups; lack of downscale inclusion, such as in procurement and sector value chains; and the way in which women are often disproportionately adversely affected by economic and labour structures. The experts thus highlighted the importance of legislative reform and the need for sector-specific support measures towards women’s greater participation in national economies.