VAIDS

Friday, May 13, 2016

South Africa needs more Women and Youth to drive economy

THE remedy for our anaemic economic growth and social ills lies in more vigorous implementation of policies that promote greater economic participation of women and young people. Studies across the globe point to the key role played by the development, utilisation and promotion of the talents of women and young people to drive sustainable socio-economic growth.




Evidence from the International Monetary Fund, McKinsey Global Institute and the Organisation for Economic Co-operation and Development (OECD) confirm that greater participation of women in the economy is not only morally desirable, but also essential for sustainable prosperity of the global economy as well as for individual countries.


For example, Japan’s economy, which has been struggling for decades, could see its overall gross domestic product rise by 9% over the next 10 years if its female employment rate were to match that of males. For the US the equivalent figure is 5%, for India 27%. The global economy as a whole is estimated to be capable of benefiting from greater female participation by as much as $12trillion by 2030.
On the home front, Statistics SA’s latest report focusing on the vulnerability of young people demonstrates once again how we are failing to take advantage of the "youth bulge" to develop a more skilled creative working population to drive our economy. Young people aged 15-35 years constitute close to 70% of the unemployed population. We are not yet succeeding in turning them from recipients of welfare into highly skilled creators of wealth and informed citizens.

SA with its human rights constitutional foundations has all the recommended policies and legislative framework for greater participation of women and young people in socio-economic development. The private sector has also embraced the principle and the business case for greater inclusion of women and young people as being in its own interests through various charters and agreements.

Yet the OECD reported in mid-April that professional highly skilled women were emigrating from our shores to Canada, the UK and Australia in search of better economic and personal security prospects. They cite lack of opportunities to develop their full potential and often hostile toxic male-dominated environments.
Women make up 51.2% of the population yet only 46.8% of the employed population. Women constitute only 2.4% of CEOs, 9.2% of chairpersons of boards, 11.6% of directors of companies and 29% of executive managers. The public sector does better at 38.2% of management, 40.5% of top management at stste-owned enterprises and 58% of public service employees.

What needs to change to match the commitments to transformation of the workplace to include more women and to promote greater financial inclusion of women entrepreneurs?
First, the private sector has to rise to its leadership responsibilities as the creator of economic opportunities in all the major sectors of the economy. Vigorous implementation of the various agreed policies to transform our economy into one that leverages all the talents of black people, women and young people needs to be a key focus. This requires commitment and active visible felt leadership by CEOs and the boards of directors of all companies. Realistic targets need to be set and used as part of performance agreements with management at all levels.
Second, the private sector needs to partner more effectively with government at all levels to build greater trust and drive transformation. Greater attention to the institutional culture of companies is a key success factor in promoting inclusion. Too many companies continue to operate as if women, young people, and black people do not matter, especially inside the boardroom. The language of communication, symbols adorning company facilities including works of art, levels of expectation and the performance of all employees beyond the traditional white male in-group need to all be examined and changed to become more inclusive.

Third, the private sector needs to be bolder in its leadership in scaling up the various successful initiatives to drive education and training of their own workforces as well as those of communities in which their businesses are located. For example, the mining industry in some areas has done an amazing job in developing holistic human settlements in collaboration with local authorities across the country. There has also been progress on the inclusion of women and the upskilling of the labour force that has enhanced productivity. What are the impediments to communicating and spreading successful models that are enhancing talent and enterprise development?

Finally, the private sector in partnership with civil society needs to engage those public authorities that obstruct transformative interventions. We have one of the most elaborate highly funded skills development programmes, but many young people remain excluded from education and training.
Young people including the #FeesMustFall movement correctly demand accessible, high-quality education and training. We have the resources to meet this challenge if only we can work together to re-order our priorities and hold leaders, both public and private, accountable for driving greater inclusive development.
Higher education institutions should be held more accountable for creating teaching and learning environments free of sexual, racial and other harassment that undermines talent development and more effective utilisation. Higher education’s role is to enable the emergence of well-rounded professionals with the requisite value system appropriate for our constitutional democracy.

Greater inclusion and equality is good for all. SA has most of the policies to promote inclusive sustainable economic growth. What is needed is visible felt committed leadership. The business case has never been stronger for the private sector to step onto the bridge.
Ramphele is a political activist, medical doctor, academic and businesswoman

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