Gender discrimination pervades India’s socio-economic pyramid. At its upper reaches, we encounter anecdotes of single women entrepreneurs finding it difficult to get bank loans.
According to the report, India has closed 62.5 per cent of its gender gap till date. The country had ranked 140th among countries in the Global Gender Gap Index 2021
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Key Findings for India
There are four sub-index:-
- Economic Participation and Opportunity subindex
- Educational Attainment subindex
- Health and Survival subindex
- Political Empowerment subindex
- Countries such as China, India, Azerbaijan and Pakistan have achieved scores that are lower than 94%, with China slightly progressing since the last edition. The main driver of cross-country variation is the skewed sex ratio at birth.
- China and India together account for about 90%–95% of the estimated 1.2 million to 1.5 million missing female births annually worldwide due to gender-biased prenatal sex selective practices. Further, China, India and Pakistan register excess female mortality rates (below age 5) related to neglect and gender-biased postnatal sex selection practices. The estimated number of ‘missing women’ was 142.6 million in 2020, twice as much than in 1970.
- The countries with the largest economic gender gaps are Iran (just 37.5% of the gender gap closed so far), India (32.6%) , Pakistan (31.6%), Syria (28.5%), Yemen (28.2%), Iraq (22.8%) and Afghanistan (18%).
- In India only 22.3% of women participate in the labour market, translating to a gender gap of 72%.
- When it comes to wages for similar positions, gaps remain even among the best-performing countries, including Iceland.India, El Salvador, Bolivia and Lesotho only 46%–49% of this gap has been closed to date
- Among the countries where the share of women ministers declined the most are India (from 23.1% to 9.1%)
- The gap on Health and Survival has remained substantially stable over the past few years. Although it can be considered virtually closed in most countries, there are still countries—including Qatar (94.8%), Viet Nam (94.5%), Pakistan (94.4%), Azerbaijan (93.9%), India (93.7%) and China (93.5%)— where uneven access to health for women and pre- or post-natal sex selection persist.
- Following the Middle East and North Africa, South Asia is the second-lowest performer on the index.India is the third-worst performer in the region, having closed 62.5% of its gap. Because of its large population, India’s performance has a substantial impact on the South Asia region’s overall performance. Home to 0.65 billion women, India has widened its gender gap from almost 66.8% closed one year ago to 62.5% this year.In addition, only Bhutan and Nepal have demonstrated small but positive progress towards gender parity this year, while all other countries in this region have registered either slightly reduced or stagnant performances.
- Only 22.3% of women in India, 22.6% in Pakistan, and 38.4% in Bangladesh are active in the labour market.
- In India, only 29.2% of technical roles are held by women, and in Pakistan the share is 25.3% and in Afghanistan 19.3%.
- The presence of women in senior roles is even more rare: women make up just 4.1% in Afghanistan, 4.9% in Pakistan, 10.7% in Bangladesh and 14.6% in India. As a result, the disparity in income between men and women is large in most countries. In Pakistan and Afghanistan, the income of an average woman is below 16% of that of an average man, while in India it is 20.7%. Only in Nepal and Bhutan is the gap lower than 50%, as the income earned by a woman is 74% and 58%, respectively, of that of a man
- Female literacy rates are as low as 53.7% in Afghanistan, 65.8% in India, 59.7% in Nepal, 57% in Bhutan and 46.5% in Pakistan, with little sign of closing in the near future
- India has fallen 28 places in the ranking. Most of the decline has occurred on the Political Empowerment subindex, where India has regressed 13.5 percentage points to reach a level of gap closed to date of just 27.6%. The main change that took place this year is the significant decline in the share of women among ministers, which halved, from 23.1% in 2019 to 9.1% in 2021.
- In addition, the share of women in parliament remains stagnant at 14.4% and the share of the last 50 years in which a woman has been head of state is 15.5.
- Decline also took place on the Economic Participation and Opportunity subindex, albeit to a lesser extent. India’s gender gap on this dimension widens by 3% this year, leading to a 32.6% gap closed to date. Among the drivers of this decline are a decrease in women’s labour force participation rate, which fell from 24.8% to 22.3%.
- In addition, the share of women in professional and technical roles declined further to 29.2%. The share of women in senior and managerial positions also remains low: only 14.6% of these positions are held by women and there are only 8.9% of firms with female top managers. Further, women’s estimated earned income is only one-fifth of men’s, which puts India among the bottom 10 globally on this indicator
At the other extreme, in the poverty-ridden ‘red corridor’ that runs along a belt from Jharkhand to Andhra Pradesh, injustices of the most violative kind are observed to have driven women to join the Maoist insurgency.
These phenomena are not recent. But instead of improving, by and large, life for women is worsening in the country. The World Economic Forum’s (WEF) Global Gender Gap Report 2021, released last week, lays bare our silent crisis of gender inequality, aggravated by the covid pandemic in ways that we are yet to fully understand.
India has slipped 28 places to 140th position among 156 countries on the WEF’s Global Gender Gap Index. The country is now 37.5% short of an ideal situation of equality, by its index, a wider gap than reported last year, when we had a 33.2% deficit on the whole.
Back in 2006, when the index began, we were almost 40% short, but even the slight progress made over the past 15 years has been highly uneven; while gains were made on the education and political empowerment of women, we slid sharply on health and economic parameters. Now with covid playing the great unleveller, we have no option but to address this sad state of affairs.
To be sure, the WEF report has bad news for the entire world. The average gap has widened globally over the course of the pandemic year.
It is now 32% short of the index’s ideal score. But many of our deficiencies are pre-covid. Some of the drop in India’s international rank over the past two years, for example, has to do with regression in the field of political power.
The proportion of women ministers more than halved to 9.1% of the total, though our count of female Parliamentarians did not budge from its long stagnancy. Perhaps a greater cause for concern is our poor performance over the past decade-and-a-half on women’s economic opportunities and participation.
Not only has the Indian workforce been turning more predominantly male, senior managerial positions in the corporate sector have not seen sufficient female appointees to correct a steep tilt in favour of men. At the aggregate level, our income disparity is glaring.
Women earn only a fifth of men, which puts India among the world’s worst 10 on this indicator. We fare worse on women’s health and survival, with India beaten to the last rank only by China.
Several efforts have been made to figure out why proportionally fewer Indian women are in paid jobs, despite rising education levels. One explanation is that sociocultural attitudes militate against women going out to work, unless the family lacks sustenance, and deprivation has been in decline for decades.
Another is that families prefer educated mothers to invest time in teaching their kids. Both these motives are said to be influenced by upward income mobility and a quest for better lives.
Yet, the covid setback to both family incomes and gender progress would suggest the reasons are mostly attitudinal. If so, then tax incentives and other schemes are unlikely to get women taking up more jobs.
What we need are new forms of social persuasion, which must go with credible assurances of gender equity in every sphere. It promises to be a long haul. But so is economic success. And no country’s economy can get far without empowered women.
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Steve Ovett, the famous British middle-distance athlete, won the 800-metres gold medal at the Moscow Olympics of 1980. Just a few days later, he was about to win a 5,000-metres race at London’s Crystal Palace. Known for his burst of acceleration on the home stretch, he had supreme confidence in his ability to out-sprint rivals. With the final 100 metres remaining,
[wptelegram-join-channel link=”https://t.me/s/upsctree” text=”Join @upsctree on Telegram”]Ovett waved to the crowd and raised a hand in triumph. But he had celebrated a bit too early. At the finishing line, Ireland’s John Treacy edged past Ovett. For those few moments, Ovett had lost his sense of reality and ignored the possibility of a negative event.
This analogy works well for the India story and our policy failures , including during the ongoing covid pandemic. While we have never been as well prepared or had significant successes in terms of growth stability as Ovett did in his illustrious running career, we tend to celebrate too early. Indeed, we have done so many times before.
It is as if we’re convinced that India is destined for greater heights, come what may, and so we never run through the finish line. Do we and our policymakers suffer from a collective optimism bias, which, as the Nobel Prize winner Daniel Kahneman once wrote, “may well be the most significant of the cognitive biases”? The optimism bias arises from mistaken beliefs which form expectations that are better than the reality. It makes us underestimate chances of a negative outcome and ignore warnings repeatedly.
The Indian economy had a dream run for five years from 2003-04 to 2007-08, with an average annual growth rate of around 9%. Many believed that India was on its way to clocking consistent double-digit growth and comparisons with China were rife. It was conveniently overlooked that this output expansion had come mainly came from a few sectors: automobiles, telecom and business services.
Indians were made to believe that we could sprint without high-quality education, healthcare, infrastructure or banking sectors, which form the backbone of any stable economy. The plan was to build them as we went along, but then in the euphoria of short-term success, it got lost.
India’s exports of goods grew from $20 billion in 1990-91 to over $310 billion in 2019-20. Looking at these absolute figures it would seem as if India has arrived on the world stage. However, India’s share of global trade has moved up only marginally. Even now, the country accounts for less than 2% of the world’s goods exports.
More importantly, hidden behind this performance was the role played by one sector that should have never made it to India’s list of exports—refined petroleum. The share of refined petroleum exports in India’s goods exports increased from 1.4% in 1996-97 to over 18% in 2011-12.
An import-intensive sector with low labour intensity, exports of refined petroleum zoomed because of the then policy regime of a retail price ceiling on petroleum products in the domestic market. While we have done well in the export of services, our share is still less than 4% of world exports.
India seemed to emerge from the 2008 global financial crisis relatively unscathed. But, a temporary demand push had played a role in the revival—the incomes of many households, both rural and urban, had shot up. Fiscal stimulus to the rural economy and implementation of the Sixth Pay Commission scales had led to the salaries of around 20% of organized-sector employees jumping up. We celebrated, but once again, neither did we resolve the crisis brewing elsewhere in India’s banking sector, nor did we improve our capacity for healthcare or quality education.
Employment saw little economy-wide growth in our boom years. Manufacturing jobs, if anything, shrank. But we continued to celebrate. Youth flocked to low-productivity service-sector jobs, such as those in hotels and restaurants, security and other services. The dependence on such jobs on one hand and high-skilled services on the other was bound to make Indian society more unequal.
And then, there is agriculture, an elephant in the room. If and when farm-sector reforms get implemented, celebrations would once again be premature. The vast majority of India’s farmers have small plots of land, and though these farms are at least as productive as larger ones, net absolute incomes from small plots can only be meagre.
A further rise in farm productivity and consequent increase in supply, if not matched by a demand rise, especially with access to export markets, would result in downward pressure on market prices for farm produce and a further decline in the net incomes of small farmers.
We should learn from what John Treacy did right. He didn’t give up, and pushed for the finish line like it was his only chance at winning. Treacy had years of long-distance practice. The same goes for our economy. A long grind is required to build up its base before we can win and celebrate. And Ovett did not blame anyone for his loss. We play the blame game. Everyone else, right from China and the US to ‘greedy corporates’, seems to be responsible for our failures.
We have lowered absolute poverty levels and had technology-based successes like Aadhaar and digital access to public services. But there are no short cuts to good quality and adequate healthcare and education services. We must remain optimistic but stay firmly away from the optimism bias.
In the end, it is not about how we start, but how we finish. The disastrous second wave of covid and our inability to manage it is a ghastly reminder of this fact.