How investments in care economy pave way toward gender equity and economic growth

Care economy investments: As the world celebrated International Women's Day on March 8, the spotlight turned to a critical yet often overlooked aspect of the economy: care. Two recent reports, one by the Economic and Social Commission for Asia and the Pacific (ESCAP) and another by the World Economic Forum, shed light on the imperative need to invest in the care economy, particularly in regions like India and Asia.

The care economy encompasses both paid and unpaid care work essential for human survival and welfare. It includes tasks like childcare, elderly care, domestic chores, and community services. Despite its fundamental role in sustaining societies, the care economy often remains invisible in traditional economic frameworks.

According to a 2022 study by the International Labour Organisation (ILO), it is estimated that investments in universal childcare and long-term care services have the potential to generate up to 299 million jobs by 2035, of which 78 per cent are expected to go to women.

Gendered dimensions of care work

Across Asia and the Pacific, women bear the brunt of unpaid care work, spending up to four times more hours on these tasks compared to men. This gender disparity not only limits women's economic opportunities but also perpetuates inequalities in various spheres of life.

Impact on women and economies

The disproportionate burden of unpaid care work restricts women's participation in the formal labor market, pushing many into informal and vulnerable employment. This perpetuates cycles of poverty and hinders economic growth. Moreover, the COVID-19 pandemic exacerbated existing challenges, highlighting the indispensable yet undervalued role of caregivers, predominantly women.

Investing in the care economy is not only a matter of gender equity but also a strategic economic imperative. By recognising, reducing, and redistributing care work, governments can unlock significant socio-economic benefits. Policies aimed at improving care infrastructure, enhancing social protection, expanding care services, and promoting employment-related care measures can lead to greater gender equality, increased labor force participation, and enhanced productivity.

Policy recommendations

Governments must adopt a multi-faceted approach to invest in the care economy. Experts suggest the implementation of gender-responsive budgeting, collecting gender-disaggregated data on care work, fostering inter-ministerial collaboration, and challenging cultural norms through media campaigns. These efforts are essential to catalyse a transformative shift towards a more caring and equitable society.

As we navigate the complexities of the 21st-century economy, investing in the care economy emerges as a linchpin for sustainable development and gender equality. By valuing and redistributing care work, we not only empower women but also lay the foundation for inclusive growth and prosperity.