The theory of “womenomics” – that increasing women’s workforce participation boosts economic growth – was popularised nearly three decades ago by Kathy Matsui, a former Goldman Sachs executive, based on her study of imbalances in Japan.
The International Monetary Fund, the World Bank and the OECD have consistently promoted a similar thesis: investing in greater female labour force participation pays off in the form of higher GDP.
In 2015, McKinsey put a number on the idea, by estimating that $28 trillion could be added to global economic output over the ensuing decade if women played an identical role in labour markets to that of men.
In a world economy reeling under crises and profound change, is womenomics still relevant? Maybe more so than at any point in history.
The global economy is now faced with a historically low growth rate of 2.8 per cent this year. For advanced economies the forecast is just 1.4 per cent, while for emerging and developing economies it’s 3.7 per cent. Short-term headwinds are symptoms of a momentous longer-term transformation, driven by technology and geopolitics and making just about every type of indicator far more uncertain and difficult to predict.
In this context, countries are seeking strategies to boost growth through domestic measures. They are working towards more regional and bilateral trade agreements, pursuing industrial policy often with security and self-reliance considerations, boosting local demand and consumption, and aiming to attract local and foreign investment to newly emerging growth areas.
Central to these endeavours is talent. In past waves of globalisation, many countries competed on the basis of cheap labour alone. This will no longer suffice. Trading will require more refined skills, boosting domestic demand will need a focus on analysing local incomes and spending behaviour, and attracting investment will require a focus on the quality of local human capital.
In 109 of the 148 countries covered in the World Economic Forum’s Global Gender Gap Report 2025, women are enrolled in tertiary degrees in equal or higher numbers than men. And yet, men continue to comprise 65 per cent of workers without a tertiary degree, and 60 per cent of those with one.
Among tertiary educated women, just 29.5 per cent make it to top leadership, despite representing 40.3 per cent of the overall workforce. Even for women with master’s or bachelor’s degrees, top-level representation plateaus below 31 per cent. Women’s talent remains a stranded asset in much of the world.
The cheapest form of stimulus in a down economy can therefore come by bringing university educated women into the workforce, including leadership roles. This is particularly true at a time when already constrained fiscal space limits other options.
There’s also a secondary, but no less important, role for womenomics in a turbulent economy driven by geopolitical conflict, threatened by climate change and facing both the risks and opportunities of new technologies.
Solving problems often relies on a diversity of thought, knowledge and experience. So does the creativity necessary to unleash innovation in the form of new technologies and scientific breakthroughs. This is true across teams and organisations.
The pattern holds for entire countries. Economies that tap into the full spectrum of their talent and human capital are best positioned to accelerate innovation, productivity and prosperity, even more so amid unprecedented uncertainty.
Demographic pressures create a third vital role for womenomics in an uncertain economy. With the exception of countries in sub-Saharan Africa and parts of emerging Asia, much of the world is faced with a declining working-age population. It peaked in Germany in 1986, in the US in 2007 and in China in 2010. Even with technology driven job losses, there is a net rise in demand for talent for growing roles in agriculture, teaching, technology, health and more.
Amid increased polarisation and pushback on migration, greater female labour participation will be a mathematical necessity to maintain productivity.
Yet, the question remains: is progress possible?
In two decades of tracking gender parity, despite slow movement in global averages, we’ve found that the answer is a resounding “yes”.
Since 2006, gender gaps have closed in terms of senior economic leadership (by more than 17 percentage points), in professional and technical roles (by seven percentage points), higher education (by about 16 percentage points), and representation in both governing cabinets and legislative bodies (by nearly 13 and 15 percentage points, respectively).
Among the 100 countries we have consistently tracked over the years, 99 have closed gender gaps – some remarkably quickly, through a blend of smart strategy and policy.
Economies sprinting to parity include Bangladesh, Ethiopia, Mexico, Saudi Arabia and the UAE. Among regions, Latin America and the Caribbean made the biggest leap over the years. If its progress continues at current rates, it’s on track to become the first region to close the overall gap.
Of course, there are looming risks to contend with. Technology is displacing jobs in fields that employ a majority of women, while more pervasive use of AI may disproportionately impact women’s white-collar careers.
Fragmenting trade and global supply chains could roll back decades of progress for women who have increasingly gained formal employment in export-driven industries like clothing and textiles in lower and middle-income countries.
In addition, inadequate care economies in most countries are disproportionately placing the burden on women who would otherwise be in the formal workforce.
But relatively small investments in care infrastructure, gender-lens reskilling and upskilling, and supporting job transitions for women in trade and tech-disrupted sectors would provide immense returns.
It may not be a new concept, but womenomics is essential for navigating the new economy.
Saadia Zahidi is the managing director and member of the managing board at the World Economic Forum
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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Red Star Belgrade v Tottenham Hotspur, midnight (Thursday), UAE
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
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Everton 1 Sigurdsson 77'
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Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Global state-owned investor ranking by size
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Japan
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Zayed Sustainability Prize
Federer's 19 grand slam titles
Australian Open (5 titles) - 2004 bt Marat Safin; 2006 bt Marcos Baghdatis; 2007 bt Fernando Gonzalez; 2010 bt Andy Murray; 2017 bt Rafael Nadal
French Open (1 title) - 2009 bt Robin Soderling
Wimbledon (8 titles) - 2003 bt Mark Philippoussis; 2004 bt Andy Roddick; 2005 bt Andy Roddick; 2006 bt Rafael Nadal; 2007 bt Rafael Nadal; 2009 bt Andy Roddick; 2012 bt Andy Murray; 2017 bt Marin Cilic
US Open (5 titles) - 2004 bt Lleyton Hewitt; 2005 bt Andre Agassi; 2006 bt Andy Roddick; 2007 bt Novak Djokovic; 2008 bt Andy Murray
The view from The National
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UAE currency: the story behind the money in your pockets
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Ballon d’Or shortlists
Men
Sadio Mane (Senegal/Liverpool), Sergio Aguero (Aregentina/Manchester City), Frenkie de Jong (Netherlans/Barcelona), Hugo Lloris (France/Tottenham), Dusan Tadic (Serbia/Ajax), Kylian Mbappe (France/PSG), Trent Alexander-Arnold (England/Liverpool), Donny van de Beek (Netherlands/Ajax), Pierre-Emerick Aubameyang (Gabon/Arsenal), Marc-Andre ter Stegen (Germany/Barcelona), Cristiano Ronaldo (Portugal/Juventus), Alisson (Brazil/Liverpool), Matthijs de Ligt (Netherlands/Juventus), Karim Benzema (France/Real Madrid), Georginio Wijnaldum (Netherlands/Liverpool), Virgil van Dijk (Netherlands/Liverpool), Bernardo Silva (Portugal/Manchester City), Son Heung-min (South Korea/Tottenham), Robert Lewandowski (Poland/Bayern Munich), Roberto Firmino (Brazil/Liverpool), Lionel Messi (Argentina/Barcelona), Riyad Mahrez (Algeria/Manchester City), Kevin De Bruyne (Belgium/Manchester City), Kalidou Koulibaly (Senegal/Napoli), Antoine Griezmann (France/Barcelona), Mohamed Salah (Egypt/Liverpool), Eden Hazard (BEL/Real Madrid), Marquinhos (Brazil/Paris-SG), Raheem Sterling (Eengland/Manchester City), Joao Félix(Portugal/Atletico Madrid)
Women
Sam Kerr (Austria/Chelsea), Ellen White (England/Manchester City), Nilla Fischer (Sweden/Linkopings), Amandine Henry (France/Lyon), Lucy Bronze(England/Lyon), Alex Morgan (USA/Orlando Pride), Vivianne Miedema (Netherlands/Arsenal), Dzsenifer Marozsan (Germany/Lyon), Pernille Harder (Denmark/Wolfsburg), Sarah Bouhaddi (France/Lyon), Megan Rapinoe (USA/Reign FC), Lieke Martens (Netherlands/Barcelona), Sari van Veenendal (Netherlands/Atletico Madrid), Wendie Renard (France/Lyon), Rose Lavelle(USA/Washington Spirit), Marta (Brazil/Orlando Pride), Ada Hegerberg (Norway/Lyon), Kosovare Asllani (Sweden/CD Tacon), Sofia Jakobsson (Sweden/CD Tacon), Tobin Heath (USA/Portland Thorns)
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
Adele: The Stories Behind The Songs
Caroline Sullivan
Carlton Books
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
