Empowering the third billion: Women and the world of work in 2012 (Full report)

Countries that take steps to empower women as employees and entrepreneurs can reap social and economic benefits. This report ranks 128 countries based on their track record in enabling women to play a substantial role in the global economy. This is the full version of the report.

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Leading Research

DeAnne Aguirre Leila Hoteit Christine Rupp Karim Sabbagh

Empowering the Third Billion Women and the World of Work in 2012

Contact Information Abu Dhabi Leila Hoteit Principal +971-2-699-2400 [email protected] Beirut Ghassan Barrage Senior Executive Advisor +966-1-249-7781 [email protected] Cairo George Atalla Partner +20-2-2480-1444 [email protected] Dubai Karim Sabbagh Senior Partner +971-4-390-0260 [email protected] Milan Luigi Pugliese Partner +39-02-72-50-93-03 [email protected] Mumbai Jai Sinha Partner +91-22-6128-1102 [email protected] Munich Klaus-Peter Gushurst Senior Partner +49-89-54525-537 [email protected] New York Reid Carpenter Principal +1-212-551-6389 [email protected] Riyadh Mounira Jamjoom Senior Research Specialist +966 1 249 7781 [email protected] San Francisco DeAnne Aguirre Senior Partner +1-415-627-3330 [email protected] São Paulo Ivan de Souza Senior Partner +55-11-5501-6368 [email protected] Shanghai Sarah Butler Partner +86-21-2327-9800 [email protected] Stuttgart Christine Rupp Partner +49-711-34226-916 [email protected] Tokyo Akiko Karaki Senior Associate +81-3-6757-8709 [email protected]

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Booz & Company wishes to thank the experts who contributed their valuable time and insights to the Third Billion Index:
• Rajnee Aggarwal, President, Federation of Indian Women Entrepreneurs (FIWE) • H.E. Fatima Al Jaber, Chairperson, Abu Dhabi Business Women’s Council • Dr. Haifa Jamal Al-Lail, President, Effat University • Kim Azzarelli, Vice President of New Ventures, Newsweek/Daily Beast Women in the World Foundation • Poyni Bhatt, CAO of SINE (Society for Innovation and Entrepreneurship), IIT Bombay • Cherie Blair, Founder and Patron, Cherie Blair Foundation for Women • Elena Bonometti, Consultant, Gender and Development Group, World Bank • Silvia de Torres Carbonell, Director, IAE Entrepreneurship Center, Austral University • Veronica Chau, Partner, Dalberg Global Development Advisors • María Colombo, President of the National Women’s Council, Argentina • Maria Antonietta Confalonieri, Associate Professor, University of Pavia • Joshua Cramer-Montes, Communications Director, Pro Mujer • Tripti Pande Desai, Head of the Organizational Behavior Area, the Institute for Integrated Learning in Management (IILM) in New Delhi • Taryn Dinkelman, Assistant Professor, Dartmouth College • Robert Eberhart, SPRIE Research Fellow, Stanford University • Dr. Florence Eid, Founder and CEO, Arabia Monitor • Angie Gifford, Senior Director, Microsoft Deutschland GmbH • Stephanie Goodell, Program Director, Dell Women’s Entrepreneur Network • Ana Recio Harvey, Director for Women’s Business Ownership, U.S. Small Business Administration • Sabine Henzler, Head of Unit, European Commission, Taxation and Customs Union • Sylvia Ann Hewlett, President, Center for Talent Innovation • Hajime Hori, Japanese Economic Planning Ministry • Dr. Sumiko Iwao, Professor of Social Psychology at Musashi Institute of Technology and Member of the Council for Gender Equality • Ambassador Moushira Khattab, Former Minister of Family and Population, Egypt, and Vice Chair of U.N. Committee on the Rights of the Child • Jeni Klugman, Director, Gender and Development, World Bank • Kara Krautter, Senior Communications Advisor, Dell • Lena Lavinas, Professor of Welfare Economics, Institute of Economics, Federal University of Rio de Janeiro • Gayle Tzemach Lemmon, Deputy Director, Women and Foreign Policy Program, Council on Foreign Relations • Beena Malikaveetil, Internal Communications Expert, Amdocs • Flotea Massawe, Owner, Marvelous Flotea Company • Marika McCauley Sine, International Public Affairs Director, the Coca-Cola Company • Noa Meyer, Global Program Director, Goldman Sachs “10,000 Women” Program • Dr. Precious Moloi-Motsepe, Chair, International Women’s Forum of South Africa–Business; Executive Director of the Motsepe Foundation • Dr. Terry Neese, Founder and CEO, Institute for Economic Empowerment of Women • Lubna Olayan, Deputy Chairperson and CEO, Olayan Financing Company • Donath Olomi, Founding Director, University of Dar es Salaam Entrepreneurship Centre • Dr. Basmah Omair, CEO of Khadijah Bint Khouwailid Businesswomen Center, Jeddah Chamber of Commerce & Industry • Maria Beatriz Orlando, Senior Social Development Specialist, World Bank • Dr. Karen Otazo, Managing Director, Global Leadership Network Inc. • Winnie Qian Peng, Associate Director of Center for Asian Family Business and Entrepreneurship Studies, Hong Kong University of Science and Technology • Paola Perini, Consultant in Innovation Management and Entrepreneurship • Valentina Peroni, President, Nutribaby SA, Argentina • Paola Profeta, Associate Professor of Public Economics, Università Bocconi; Coauthor of Donne in Attesa. L’Italia Delle Disparità di Genere • Kavita Ramdas, Former President and CEO, Global Fund for Women; Executive Director for Program on Social Entrepreneurship, Stanford University • Elizabeth Rowland, Policy Analyst, the American Chamber of Commerce in the People’s Republic of China • Chiara Saraceno, Former Research Professor at the Wissenschaftszentrum Berlin fuer Sozialforschung; Honorary Fellow at the Collegio Carlo Alberto, Turin, Italy • Kumi Sato, CEO, Cosmo PR • Monika Schulz-Strelow, President, FidAR (Frauen in die Aufsichtsräte e.V) • Martina Schwenk, Project Manager, Bertelsmann Stiftung • Professor Linda Scott, DP World Chair for Entrepreneurship and Innovation, Oxford University • Bhanuben Danabhai Solanki, President, Self Employed Women’s Association • Keiko Suzuki, Vice Chair, Human Resources Management Committee, American Chamber of Commerce in Japan • Tina Thomson, Global Director, UnitedSucces • Sarah Thorn, Senior Director, Federal Government Relations, Walmart • Anna Valenzuel, Cofounder, Migux • Jackie VanderBrug, Managing Director, Criterion Ventures • Leila Velez, Cofounder, Beleza Naturals • Melanne Verveer, U.S. Ambassador-atLarge for Global Women’s Issues • Paola Villa, Member of the Coordinating Team for the European Commission’s Expert Group on Gender and Employment (EGGE); Professor of Economics, University of Trento • Tonia Warnecke, Assistant Professor of International Business and Research Associate of the China Center, Rollins College • Bedy Yang, Founder, Brazil Innovators • Dr. Yu Chan, Project Manager, Women Project Initiative, Li Ka Shing Foundation • Mona Zulficar, Founding Partner and Chair of Executive Committee, Zulficar & Partners Law Firm

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Contents Foreword, by Cherie Blair................................................................. 4 Executive Summary.......................................................................... 5 I. The Origin of the Index.............................................................. 10 Methodology............................................................................... 12 An Overview of the Findings....................................................... 14 The Threshold to the Middle Class.............................................. 16 Quantifying the Economic Contribution of Women..................... 18 II. Common Challenges around the Globe..................................... 22 Conclusion.................................................................................. 26 Third Billion Index Rankings...................................................... 27 III. Country Profiles....................................................................... 33 Argentina..................................................................... 33 Brazil........................................................................... 36 China........................................................................... 40 Germany...................................................................... 42 India............................................................................ 46 Italy............................................................................. 48 Japan........................................................................... 52 South Africa................................................................. 55 Tanzania...................................................................... 58 United States................................................................ 61 Spotlight on the Middle East.......................................................... 64 Egypt........................................................................... 65 Saudi Arabia................................................................ 69 United Arab Emirates................................................... 72 Coca-Cola: A Top-Down Decision to Empower Entrepreneurs....... 39 Dell: Connecting with Female Entrepreneurs through Technology.. 51 Goldman Sachs: Investing in Entrepreneurs.................................... 68 Notes.............................................................................................. 75 References...................................................................................... 79 About the Authors.......................................................................... 81

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FOREWORD

This report sheds some much-needed light on the impact that hundreds of millions of women around the world are beginning to have as they enter the global economy—and the steps that government and business leaders can take to give them a stronger voice in their lives and in their societies. I am convinced that giving women the chance to become financially independent and make the most of their talents is the key to higher living standards and stronger economies. This is more true today than ever before. With the global economy still struggling through a slow and spotty recovery, it is in everyone’s interest to help women make the most of their potential. I set up my foundation for women to address this need for support, which not only leads to a better quality of life for the women themselves, but also brings benefits to their families, communities, and economies as a whole. In the past year, we have directly reached some 6,000 women across Africa, Asia, and the Middle East, helping them develop their skills, build their confidence, and increase their income. I’ve met some of these women, and their stories are extremely inspirational. You cannot help but be moved when you see for yourself the sheer appetite for learning among businesswomen in a fragile economy such as Lebanon, or when you meet motivated, energetic female entrepreneurs in Tanzania and hear how they are driving their country’s economic growth despite the prejudices they face or the difficulty in getting business loans. However, despite the admirable efforts of these women—and millions like them in rich and poor countries around the world—they need supportive systems to succeed. Governments and corporations will need to step in with smarter policies that can remove social, cultural, and professional constraints on women and foster greater economic opportunities. The kind of quantitative research in the Third Billion Index is a crucial part of that process. It can help government and privatesector leaders see what works best and identify specific policies and countries as models. Through the work of my own foundation, it is evident that financial independence can give women more control over their own lives and the lives of their children. Economic security gives women more influence in tackling injustice and discrimination in their communities and wider society. In sum, no real social progress is possible without the economic progress of the Third Billion.

Cherie Blair Founder & Patron Cherie Blair Foundation for Women

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EXECUTIVE SUMMARY

Nearly 1 billion women around the world could enter the global economy during the coming decade. They are poised to play a significant role in countries around the world—as significant as that of the billion-plus populations of India and China. Yet this Third Billion has not received sufficient attention from governments, business leaders, or other key decision makers in many countries. There is compelling evidence that women can be powerful drivers of economic growth. Our own estimates indicate that raising female employment to male levels could have a direct impact on GDP of 5 percent in the United States, 9 percent in Japan, 12 percent in the United Arab Emirates, and 34 percent in Egypt; but, greater involvement from women has an impact beyond what their numbers would suggest. For example, women are more likely than men to invest a large proportion of their household income in the education of their children. As those children grow up, their improved status becomes a positive social and economic factor in their society. Thus, even small increases in the opportunities available to women, and some release of the cultural and political constraints that hold them back, can lead to dramatic economic and social benefits. In that context, a critical question of the 21st century becomes: What can governments, companies, investors, and NGOs do to ensure that the Third Billion realizes its potential? One of the factors that makes the Third Billion so powerful—its global reach—also makes that question difficult to answer. Any answer must start with an assessment of the specific constraints faced by Third Billion constituents in a given region. To begin understanding the levers available to decision makers, we developed the Third Billion Index, a means of ranking countries in terms of how effectively they are empowering women as economic agents in the marketplace. The index itself is a composite of established data drawn from the World Economic Forum and the Economist Intelligence Unit, among other sources. Our composite index is unique, however, in that we have chosen to focus on women’s economic and professional empowerment. The Third Billion Index groups the indicators of women’s economic standing into two clusters. The first is “inputs,” meaning steps that governments and the private sector can take to improve the economic position of women. These inputs include laws and policies regarding minimum schooling, employment policies during and after childbirth, and access to credit. The index also considers “outputs,” meaning the observable aspects (social, political, and economic) of women’s participation in the national economy. These include the ratio of pay between women and men as well as the proportion of women among technical workers, senior business leaders, and employees. A combination of the input and output factors for a country determines its overall index ranking.

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The results of the index lead to several striking conclusions. First, there is a clear correlation between the front-end processes and policies regarding women’s economic opportunities (inputs) and the actual success of women in national economies (outputs). We discovered this by clustering 128 countries into five broad categories based on their index rankings. The countries with a strong set of inputs, labeled “on the path to success,” universally also have strong outputs. These are typically developed economies such as Australia, Canada, Finland, France, Germany, and Norway. We identified four other clusters of countries. Just behind the top-performing countries are those that are “taking the right steps.” They have implemented a slate of input policies and are just beginning to see their efforts pay off. These countries, which include Malaysia, Tunisia, and Venezuela, vary widely in other political and social dimensions; however, they have all moved onto the path of empowering women. We also defined a small number of countries as “forging their own path.” They are seeing modest output results, but have not yet established a strong foundation of inputs. These countries include Botswana, Cambodia, and China. In the future, the countries in these two groups are likely to be among the most dynamic in terms of economically empowering women. The next group of countries, labeled “average,” includes those that have taken modest steps to improve inputs to women’s economic progress and have seen commensurate output results. These countries, which include Colombia, Serbia, and Thailand, will need to invest more on the input side to move onto the “path to success.” Finally, there are countries that have not yet systematically approached the problem at all. They have correspondingly worse performance. These are said to be “at the starting gate” and include countries such as Indonesia, Laos, and Nigeria. This category accounts for the largest number of the 128 countries, suggesting an immense economic opportunity in many parts of the world. Perhaps the most significant finding from the Third Billion Index is the impact of women on broader “outcomes.” We defined “outcomes” as broader indications of well-being, including per capita GDP, literacy rates, access to education, and infant mortality. These transcend genderrelated effects and represent improvements to society at large. The data shows a very strong correlation between index scores and beneficial outcomes. Such a relationship indicates that positive steps intended to economically empower women not only contribute to the immediate goals of mobilizing the female workforce, but also lead to broader gains for all citizens in such areas as economic prosperity, health, early childhood development, security, and freedom.

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This is a crucial conclusion. The idea has been a consistent theme in the literature of women’s issues, but it is typically argued with anecdotal rather than quantitative evidence. Our findings give compelling numerical evidence of a correlation between women’s economic participation and a country’s general economic growth and well-being. They strongly suggest that the economic advancement of women doesn’t just empower women but also leads to greater overall prosperity. In short, even when setting aside legislative measures to improve women’s quality of life, or setting standards for the number of high-level positions held by women, government leaders have several precise levers they can pull to economically empower their female citizens. For example, they can foster more forms of financial credit or take steps to improve women’s literacy. Countries that pull these levers are producing results. The report includes in-depth profiles of 10 countries that have a range of geographies and are at varying stages of economic development, which Booz & Company compiled in conjunction with local experts in the private sector, academia, and government within each nation. • • • • • • • • • • Argentina (35th—“On the Path to Success”) Brazil (46th—“On the Path to Success”) China (58th—“Forging Their Own Path”) Germany (8th—“On the Path to Success”) India (115th—“At the Starting Gate”) Italy (33rd—“On the Path to Success”) Japan (43rd—“Taking the Right Steps”) South Africa (36th—“On the Path to Success”) Tanzania (85th—“At the Starting Gate”) United States (30th—“On the Path to Success”)

In addition, we profiled three countries from the Middle East and North Africa (MENA) region: Egypt (108th), Saudi Arabia (123rd), and the United Arab Emirates (109th), which are all “at the starting gate.” In focusing on this region, we wanted to highlight the remarkable socioeconomic transitions currently under way, and to show that women represent a crucial part of those changes. At a recent conference on women’s issues held by the Organisation for Economic Co-operation and Development(OECD), the organization’s secretary-general, Angel Gurria, summed up the challenge: “Women are the most underutilized economic asset in the world’s economy.”1 Only by correcting this situation through sweeping national, regional, and global institutional changes, and ensuring that women everywhere have the opportunity to become active economic agents, can we create stable prosperity, healthy societies, and a hopeful future.

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“Women are the most underutilized economic asset in the world’s economy.”
—Angel Gurria, Secretary-General, OECD

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I. THE ORIGIN OF THE INDEX

Women are poised to play a significant role in the global economy in the coming decade—as significant as that of the billion-plus populations of India and China—yet this Third Billion has not yet received sufficient attention in many countries from governments, business leaders, or other key decision makers. This represents a missed opportunity; as Melanne Verveer, U.S. ambassador-at-large for global women’s issues, put it at a recent Organisation for Economic Co-operation and Development (OECD) conference, “The benefits of women’s economic participation are well documented.”1 However, to more effectively leverage the contribution of women and empower them economically—as employees, producers, and business owners—governments will need a better understanding of the levers they can pull.

Several global organizations already track statistics related to women’s issues, and publish their own nationby-nation rankings. In creating the Third Billion Index, our aim is to focus specifically on women in the world of work. The index isolates the factors that facilitate women’s entry into the workforce—either as employees or as entrepreneurs— and determines specific drivers that can improve their access and advancement. We recognize, of course, that certain foundational needs must be met if women are to succeed as professionals, entrepreneurs, and employees. These include access to healthcare, political participation, and legal status equal to that of men. In focusing on women’s economic and professional empowerment, our intent is not to

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discount the importance of these other issues, or to overlook the fact that all aspects of women’s empowerment are intertwined. Rather, we look to the future, to the day when women worldwide can take such rights for granted. And we hope to raise a discussion about how to help women become active economic agents who can contribute to their national economy, create better lives for their family, and empower themselves. The Third Billion Index is a composite of indicators of women’s potential for economic participation, drawn from a spectrum of criteria. All were taken from existing data compiled by the World Economic Forum or the Economist Intelligence Unit; both organizations have done tremendous work in this field, and we are indebted to their research efforts. The Methodology section of this report (see page 12) provides a detailed technical explanation of the components of the index.

A more general explanation is needed, however, to understand the index and its implications for helping women succeed. The index divides all the indicators of women’s economic standing into two separate clusters. The first is “inputs.” These are measures that a government (or, in some cases, other entities, such as businesses and nongovernmental organizations) can improve to affect the economic position of women. Such factors reflect the direct impact of laws and policies regarding minimum schooling, employment policies during and after childbirth, access to credit, and others. We grouped these inputs into three composite elements: • Women’s level of preparation for joining the workforce • The country’s access-to-work policies • Entrepreneurial support

Next we looked at a set of “outputs.” These are observable aspects of women’s participation in the national economy. They reflect, over the long term, the social, political, and economic environment that is influenced by the inputs. Our list of outputs includes such indicators as the ratio of pay between women and men, and the number of women among technical workers, senior business leaders, and employees. As with inputs, these were made up of individual data sets for each parameter, which we bundled into three composite elements: • Inclusion in the workforce • The degree of advancement in the national economy • Equal pay for equal work in practice Broadly, a country’s overall index ranking is derived from combining its input and output factors.

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METHODOLOGY Booz & Company developed the Third Billion Index to evaluate and describe how countries increase the participation and effectiveness of women in the labor force. We began with 152 countries, for which we analyzed currently available data from the Economist Intelligence Unit reports on women’s economic opportunity (2010 and 2012) and the World Economic Forum “Global Gender Gap Reports” (2010 and 2012). We removed the countries that were missing more than half of the data points in these reports, leaving us with a set of 128 countries. For each, we considered two main categories of data—inputs and outputs—and measured the relationship between those categories (see Exhibit 1). Note: Sources are indicated in parentheses: EIU for the Economist Intelligence Unit reports, WEF for the World Economic Forum reports. INPUTS Inputs are the measures that a government (or, in some cases, another entity such as a company or NGO) can aim to improve in order to increase the economic contribution and empowerment of women. In the Third Billion Index, these consist of three principal composites—preparation, access-to-work policy, and entrepreneurial support—each of which incorporates several subordinate data points. Specifically: Preparation — Ratio of female to male literacy rate (WEF) — Overall literacy rate for women, by percentage (EIU) — Ratio of female to male enrollment in secondary education (WEF) — Level of primary and secondary education among women, in number of years completed (EIU) — Ratio of female to male enrollment in tertiary education (WEF) — Mean years of schooling (EIU) — Level of tertiary education among women, in number of years completed (EIU) Access-to-Work Policy — Equal pay for equal work policy (EIU) — Nondiscrimination policy (EIU) — Maternity and paternity leave provision (EIU) — Access to child care (EIU) — Legal restrictions on certain job types for women (EIU) Entrepreneurial Support — Access to technology and energy (EIU) — Property ownership rights (EIU) — Support and development training for owners of small and medium-sized enterprises (EIU) — Women’s access to finance programs (EIU) — Ability to build credit history (EIU) — Availability of private-sector credit (EIU) — Delivery of financial services (EIU) OUTPUTS Outputs are the observable indicators of women’s progress in the world of work. As with inputs, we grouped outputs into three composite indices—inclusion, advancement, and equal pay—each of which also includes subordinate data. Specifically: Inclusion — Female-to-male ratio among wage employees (WEF) — Female-to-male ratio of wages (WEF) — Female-to-male ratio of participation in the labor force (WEF) Advancement — Female-to-male ratio among professional and technical workers (WEF) — Female-to-male ratio among legislators, senior officials, and managers (WEF) — Female-to-male ratio among employers (EIU)

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Equal Pay — Equal pay for equal work in practice (according to the International Labour Organization’s Equal Remuneration Convention) (EIU) We combined the two scores—total inputs and total outputs—to determine each country’s Third Billion Index score. We also statistically adjusted the results so that the mean score for the group of 128 countries was 50 and the standard deviation was 10, to facilitate comparisons between countries. (Thus, a country that received 70 in a particular category is two standard deviations better than average.) The resulting score for each nation is an indication of how actively it is taking steps to economically empower women, and whether those steps are generating quantifiable results. For this index, almost half of the measures are ratios of female-to-male raw statistics, rather than absolute levels. We opted to use these ratios because they are a better measure of women’s progress; the absolute levels are more indicative of historical or geographic socioeconomic advantages at a country level. The input and output factors all consist of multiple variables, with the exception of equal pay, which has only one. That parameter is a scale with 12 levels of performance, but the 128 countries in our study all fell into just seven levels. As a result, many of the countries received the same equal pay score, and eight of them—Australia, Canada, Finland, Germany, the Netherlands, Norway, Spain, and Sweden—achieved the highest ranking in this category.

Exhibit 1 Components of the Booz & Company Third Billion Index

Third Billion Index

Inputs Access-toWork Policy Entrepreneurial Support

Outputs

Preparation - Ratio of female to male literacy rate

Inclusion

Advancement

Equal Pay

- Female-to-male - Female-to-male - Equal pay for - Access to - Equal pay for equal work in ratio among ratio among equal work policy technology and wage employees professional and practice energy - Nondiscrimination technical workers - Female-to-male - Property policy - Overall literacy ratio of wages - Female-to-male ownership rights rate for women - Maternity and ratio among - Female-to-male - Support and paternity leave - Ratio of female legislators, senior ratio of development to male enrollment provision officials, and training for owners participation in in secondary managers Access to child the labor force of SMEs education care - Female-to-male - Women’s access - Level of primary ratio among - Legal restrictions to finance programs and secondary employers education among on certain job types for women - Ability to build women credit history - Ratio of female to - Availability of male enrollment in private-sector credit tertiary education - Mean years of schooling - Level of tertiary education among women
Source: Booz & Company

- Delivery of financial services

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AN OVERVIEW OF THE FINDINGS

The findings of the index lead to several striking conclusions about government practices and women’s economic progress. First, there is a clear correlation between the frontend processes and policies regarding women’s economic opportunities (inputs) and the actual success of women in their national economies (outputs). In other words, setting aside all external factors—such as access to healthcare, political participation, and legal status— government leaders have levers they can pull to economically empower their female citizens, and countries that do so are producing results.

To facilitate comparisons and provide a clearer view of the impact of better inputs, we clustered countries into five broad categories based on their index rankings (see Exhibit 2). These clusters group countries at similar points in their journey of empowering women, and thus provide a graphical representation of the causal relationship in the index. Overall, the countries that have a strong set of inputs also have strong outputs (and outcomes). These we define as “On the Path to Success,” and they are typically developed economies, such as Australia, Canada, Finland, France, Germany, and Norway.

Exhibit 2 Five Country Clusters, Based on Performance in Economically Empowering Women
THE THIRD BILLION INDEX Outputs 80 Average Zone On the Path to Success At the Starting Gate Taking the Right Steps Forging Their Own Path Average China Tanzania 50 Chad Argentina 40 India Sudan 30 Yemen 20 20 30 Morocco Jordan Syria Pakistan 40 Inputs
Source: Third Billion Index (Booz & Company); data from World Economic Forum and Economist Intelligence Unit

Finland Canada Germany South Africa France Singapore

Australia Norway

70

Sweden Belgium Netherlands

60

Brazil Egypt Kuwait Turkey United Arab Emirates 50

Italy Japan

United States

Saudi Arabia

60

70

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Countries that have not yet systematically approached the problem have correspondingly worse performance (these are clustered under the category “At the Starting Gate”). These countries also have more of a scattered and nonlinear relationship between inputs and outputs—in other words, there are many ways to get it wrong, and they are not far enough along in their efforts to see a clear correlation. They can clearly learn from and apply the best practices of more forward-thinking countries regarding specific policies and practices to economically empower women, and how best to implement those policies. We also identified two other key clusters. First are countries we identified as “Taking the Right Steps”: They have implemented a slate of input policies and should see their efforts pay off over time. In other societal matters, such as innovation and education—in which governments take steps to foster change— it can take a generation for these efforts to create measurable outputs. Finally, we defined a small number of countries as “Forging Their Own Path.” They are seeing modest output results, but have not yet established a strong foundation of inputs. Looking forward, the countries in these two groups are likely

to be the most dynamic in terms of economically empowering women. We are curious to see if the countries we classified as “Taking the Right Steps” will show corresponding improvements in outputs, and if the countries we classified as “Forging Their Own Path” can sustain their current high outputs without strong foundations in place. Finally, there are countries labeled “Average.” These countries have taken modest steps to improve and have seen commensurate output results, but they will likely need to invest more on the input side to move into the “On the Path to Success” cluster. Perhaps the most significant finding from the index is the impact on “outcomes,” or broader indications of well-being, such as per capita GDP, literacy rates, access to education, and infant mortality. These are independent of the input and output factors. They indicate, however, that improving the economic lot of women in a country can generate benefits that transcend traditional gender boundaries and improve society at large. Our initial hypothesis was that strong index scores would correlate to strong performance among these

outcomes. The data supports this thesis; the correlation between index scores and independent outcomes is strong. Such a relationship indicates that positive steps intended to economically empower women not only contribute to the immediate goals of mobilizing the female workforce, but also lead to broader gains for all citizens, such as economic prosperity and improvements in health, early childhood development, security, and freedom. This is perhaps the most noteworthy conclusion of our research—the economic advancement of women doesn’t just empower women but also leads to greater overall prosperity. The idea has been a consistent theme in the literature of women’s issues, but it is typically argued with anecdotal rather than quantitative results. As Caroline Anstey, managing director of the World Bank, put it, “Gender equality is good in and of itself, and it is smart economics. But the first one of these alone never seems to convince anyone.”2 The findings of the research related to this index give strong numerical evidence of a correlative relationship between women’s economic participation and general economic growth. They strongly suggest that economically empowering women is the key to greater societal gains.

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THE THRESHOLD TO THE MIDDLE CLASS
There are many reasons that countries around the world have failed to realize the economic potential of women. Our analysis of data from the International Labour Organization (ILO)—a United Nations agency that tracks global workforce statistics—groups these reasons broadly into two deficiencies: Women are either (1) not prepared or (2) not enabled to join the workforce. The first attribute—“prepared”—refers to having received a sufficient education, usually defined as the completion of secondary school. Opportunities for basic education and literacy are prerequisites to women’s economic empowerment. As women progress through rising education levels, they develop a sense of empowerment that allows them to make more decisions and participate in the labor market. The ILO measures preparedness, or the lack of it, through a combination of factors, including enrollment rates in primary, secondary, and tertiary education; literacy rates; and mean years of schooling. The second category—“enabled”—refers to having sufficient social and political support to engage with the labor market. This support spans family, logistical, legal, and financial dimensions. It can be measured by equal opportunity employment policies regarding fair pay and nondiscriminatory work environments, among other indicators. The specific characteristics of these two major constraints vary widely, according to local social, cultural, and economic conditions. But all countries have one thing in common. As they take steps to alleviate these constraints through increased migration to cities, the expansion of education opportunities, changes in local laws and cultural norms, and investments in infrastructure that support greater workforce participation, the Third Billion will advance into the middle class in accelerating numbers. We reached our conclusion that there are 1 billion women with the potential to contribute more fully to their national economies by combining the estimated number of “not prepared” and “not enabled” women between the ages of 20 and 65 in 2020, using data from the ILO (see Exhibit 3). The result was 865 million women. Most of these women—about 812 million—live in emerging and developing nations. (Some might argue that the women of China and India

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should not be included, since their populations refer to the first and second billion emerging economic participants, and women around the world make up the Third Billion. Even omitting those women, however, the number of women meeting our criteria would still exceed 500 million by 2020. Counting those still younger than 20 and newborn female children, the number could easily expand to a billion within the following generation.) No matter how the numbers are counted, 1 billion or more women are clearly about to participate more fully in the mainstream global economy. This represents a significant force in such regions as Latin America, Asia, the Pacific Rim, the Middle East, eastern and central Europe, and Africa.

Exhibit 3 The Women of the Third Billion

2020 (IN MILLIONS) 865 million women worldwide lead lives outside the economic system Emerging Economies account for 94% of those women Developed Economies account for 6% of those women 45.0 6.9 0.9 98.8 64.2 These 865 million women in 2020 will conceivably grow to 1 billion in the following decade

649.3

Not prepared

Not enabled

Neither prepared nor enabled

Source: Booz & Company

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QUANTIFYING THE ECONOMIC CONTRIBUTION OF WOMEN
One can determine the relationship between economic activity (GDP) and employment for a given country by using the following equation: Per capita GDP = labor productivity x amount of work produced per person x employment rate x age factor Hence, positive changes in labor productivity, hours worked, employment rate, and demographics all positively affect GDP . A more scientific form of the equation looks like this: Per capita GDP = GDP/H x H/E x E/WAP x WAP/P where: GDP/H = GDP/hour worked (labor productivity) H/E = hour worked/employment (annual average in working hour per employed person) E/WAP = employment/working-age population (15–64) (employment rate) WAP/P = working-age population/population (“youth dividend”) A 2007 publication by Goldman Sachs calculated the impact that greater female participation in the workforce can have on a national economy.3 That paper assumes that raising female employment to the male employment level in a country would boost the overall employment rate by a measurable amount—([male rate-tooverall rate]/overall rate)—and per capita GDP by a similar amount. We believe that, at least in the medium term (through 2020), in calculating the economic contribution of new women in the workforce, we need to account for two additional factors: 1. Countries will likely experience a temporary drop in labor productivity, as many women will enter the workforce with limited work experience and lesser qualifications. (Although women have recently closed the education gap in many countries around the world, the average woman is still today less educated than the average man.) 2. Countries will experience a drop in average hours worked across the overall population, as many of the women entering and staying in the workforce will choose to work part-time. Interruptions in employment to take care of family members (young and old) also affect the average hours worked by an employed person.

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For the first factor, we can use the productivity drag, or the gap in productivity between incumbents and new entrants. In general, the productivity drag eliminates 30 percent to 40 percent of the potential gain for each incremental entrant in the workforce (or a net increase of 0.6 percent to 0.7 percent per 1 percent increase in employment). Applying this to the second formula above corresponds to an initial dampening factor of 70 percent to the gross increase in GDP estimate. For the second factor, we assume that a third of all entrants to the workforce will work part-time, at an average of 60 percent of full-time hours. This results in a second dampening factor of 87 percent, which should be applied to the gross increase in GDP from women entering the workforce. The initial calculation (gross impact) and the two additional dampening factors (net impact) lead to the following conservative estimates for the incremental impact on GDP from increasing female employment rates:

Country

Gross Impact on GDP

Net Impact on GDP

Argentina 19% 12% Brazil 15% 9% China 8% 5% Denmark 4% 3% Egypt 56% 34% France 7% 4% Germany 7% 4% India 45% 27% Italy 19% 11% Japan 15% 9% South Africa 17% 10% Spain 10% 6% Sweden 3% 2% Tanzania 3% 2% United Arab Emirates 19% 12% United Kingdom 8% 5% United States 8% 5%

Note: This table does not include Saudi Arabia, as the GDP from natural resources overshadows GDP driven by human capital activities in the country, making it very difficult to determine credible estimates.

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“Gender equality is good in and of itself, and it is smart economics. But the first one of these alone never seems to convince anyone.”
—Caroline Anstey, Managing Director, World Bank

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II. COMMON CHALLENGES AROUND THE GLOBE

The Third Billion is not a homogeneous demographic bloc. Its members represent a multitude of nationalities, ethnicities, and religions. They live in cities, in small towns, in villages, and on farms. They are young and old, married and single, experienced and inexperienced. Finally, they are products of the places where they live, with the constraints and opportunities unique to those regions, countries, states, and cities. And as such, they require an array of customized solutions to help them reach their potential. Yet despite those geographic differences, several intertwined themes repeatedly cropped up as we conducted this global research project. All should be top priorities for governments, companies, and civil societies that hope to economically empower women. The Care Economy Around the world, women are the primary caregivers for children, the elderly, and the sick. It is a fact so obvious that it hardly seems to bear mentioning, and yet so fundamental to any discussion of women’s roles that it cannot be emphasized enough. Women in OECD countries spend about 2.4 hours more than men on unpaid work (including care work) each day.1 In less-developed countries, unpaid work

also includes household chores that compensate for a lack of infrastructure, such as getting water and finding fuel. One study found that if care work were assigned a monetary value, it would constitute between 10 and 39 percent of GDP.2 Countries must walk a fine line in determining how to address this issue. Such care work is clearly a burden that falls largely upon women, and thus is a barrier to women’s economic development. If companies and governments want to see women reach their maximum economic potential, these organizations must play a role in helping to provide care. This conclusion is borne out by data: OECD countries that have the highest public spending as a percentage of GDP on child care and education services for children under age 5 have higher employment among mothers with young children.3 At the same time, however, care work—particularly child care—is crucial to the future development of national economies because it helps create a new generation of healthy, educated citizens. Governments must guard against shifting care work into low-quality jobs that are often filled by women.4

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Although specific solutions will vary by country, several elements are critical to any approach to care work. These include widespread, affordable care for children, the elderly, and the sick; cultural changes aimed at dividing care work more equitably between men and women; and private-sector recognition of the importance of care work for all employees, along with accommodations to allow for a healthy work–life balance. Enabling Women for the Future In every country in the world, women require investments in their future— financial, educational, and cultural. None of these elements can stand alone. Allocating capital for investment in women’s businesses is fruitless if women do not have the education to run a business successfully, or the cultural perception that they can compete economically with men. Investments in education will only lead to frustration if there are no financial investments in jobs for cohorts of newly educated women, or if cultural restrictions prohibit girls from attending school. And cultural messages of empowerment ring hollow if women are not educated enough to take their place in rapidly advancing societies, or if there is no place in the economy for them to make their mark.

The measures necessary to create change in each of these areas will vary according to a country’s level of economic development. In emerging economies, the focus will most likely be on: • According women equal rights in terms of inheritance, property ownership, family law, and economic independence, while encouraging girls and women to believe in themselves and pursue their ambitions • Achieving gender parity in primary and secondary schools, as well as providing vocational training • Helping women shift from lowpaying, vulnerable jobs with little security—such as unpaid family work, casual agricultural labor, much assembly-line work in urban factories and workshops, and most domestic service5—to more permanent work with a positive career path In advanced economies, women’s empowerment will more likely emphasize: • Continuing to advance support for women’s family responsibilities, such

as maternity leave and access to child care • Ensuring that the parity achieved in education is reflected in employment, through nondiscrimination policies • Encouraging educated women who have already entered the workforce in large numbers to insist on their right to advancement and to challenge remaining gender bias In both advanced and emerging economies, women’s empowerment will require investing in female entrepreneurs at all funding levels. The emphasis may be different depending on a country’s state of economic maturity—e.g., advanced countries may emphasize access to technology and energy, whereas emerging markets may focus on factors such as support and training for small business owners—but this need for investment applies worldwide. Moving beyond Micro The advent of microfinance (the use of small loans to foster self-reliant small businesses in a community setting, where borrowers typically lack access to banking and related services) has empowered millions of women in

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recent decades, and the stories of these women’s accomplishments are truly inspiring. However, this success has led to a danger that women’s businesses will become too closely associated with microfinance, causing lenders, incubators, and even the entrepreneurs themselves to limit women to small businesses when their ideas and market potential may merit something bigger. This misperception also represents a missed opportunity for economies in urgent need of businesses that can create new jobs. If women-owned businesses are to achieve greater growth, countries must make sure that women have the right to own and inherit property, which is often a requirement for raising capital. Lenders can consider creative solutions in countries where women do not have these rights, such as cash-flow loans based on income rather than assets, or sophisticated psychological profiles

that can predict a borrower’s odds of repaying her loan. Women, for their part, need to break out of the service sector, where women-owned businesses in many countries are clustered. They must learn to manage risk so that they are comfortable starting their business from a larger capital base, and pursue private equity or venture capital when it is merited. And they should find or form supportive networks that can offer mentorship, counseling, and access to information. Access to Data In all areas of women’s economic empowerment, there is a need for detailed, frequently updated, and gender-disaggregated data—so interested parties can better understand the issues that women face and more effectively frame solutions. This includes data on access to

capital, property rights, and small and medium-sized enterprise (SME) ownership, among other issues. For instance, governments can conduct surveys about household work and use of women’s time to get more accurate information on women’s contribution to the formal and informal economies, including the care economy, and formulate policy accordingly.6 (The term informal economy refers to very small local businesses, often in the service sector, that are not registered, often do not pay taxes, and use only cash. As a result, these businesses usually do not show up in national economic statistics and do not factor into employment policy, social security, or other labor issues.) In the entrepreneurial landscape, the information available—with the exception of a few publications such as the Global Entrepreneurship

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Monitor—tends to be national, rather than regional or global, and it is often based on qualitative data and case studies, with an emphasis on developed markets. Reports generally focus on startup rates, obstacles, and characteristics of business owners, excluding issues such as survival rates and use of financial instruments.7 A better understanding of not just how women-owned companies start but how they grow and flourish would offer valuable lessons for other entrepreneurs. The Need for Partnerships Women’s empowerment, which has traditionally been the domain of governments and NGOs, is drawing increased attention from the private sector as leaders realize that women’s full participation in the world of work is not merely a social good but an economic necessity. This issue is complex enough that actors from all spheres are required to address it.

The key to success in these partnerships will be allowing each entity to focus on its strengths. Governments have an important role to play in policy, which is critical in eliminating discrimination and ensuring that women have equal rights. Governments are responsible for educating women so that they are prepared for the workforce, they can offer various forms of support to help women manage their family responsibilities, and they can play a vital role in growing womenowned businesses by offering access to government contracts. Finally, governments can have an influence outside their borders by giving greater emphasis to gender equality in their aid programs.8 NGOs have long-standing experience with women’s issues in various communities, and can offer important insights into both the big picture and

the details of local circumstances. They provide critical funding, training, mentoring, networks, and advocacy, consistently putting gender parity on the agendas of both government and the private sector. As employers, investors, and consumers, private-sector companies have a number of roles to play in empowering women. By hiring women in developing markets, they can facilitate women’s independence and increase their stature in society. They can bolster their own talent base by creating opportunities worldwide for women to move into senior positions. They can support female entrepreneurs by setting goals for more diverse supply chains. And they can leverage their power as investors by promoting gender equity in the workplace; providing financing for women-owned businesses; and developing jobs, products, and services that benefit women.9

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CONCLUSION

Addressing the needs of the Third Billion, and proposing solutions, is a compelling prospect. Ultimately, the Third Billion consists of individual women around the world—each with her own personality, needs, obstacles, hopes, and desires. Yet the global economy does not have the luxury

of addressing this crucial group in a leisurely fashion, one woman at a time. Sweeping institutional changes at the national, regional, and global levels can help women everywhere reach their full economic potential and make the contributions necessary to keep the global economy moving forward. “When it comes to the enormous challenge of our time—to systematically and relentlessly pursue more economic opportunity in our lands—we don’t have a person to waste, and we certainly don’t have

a gender to waste,” said Hillary Rodham Clinton, U.S. secretary of state, at the Asia-Pacific Economic Cooperation conference in September 2011.10 Certainly, these changes will benefit an individual tobacco farmer in Tanzania, social media entrepreneur in China, graphic designer in the United Arab Emirates, or middle manager in Germany. But the real benefit will be to the community around her, the national economy she is supporting, and the world at large.

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THIRD BILLION INDEX RANKINGS
Exhibit 4 Third Billion Index Rankings of 128 Countries

Country Third Billion Index Score

Third Billion Index Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68

Country Third Billion Index Score

Third Billion Index Rank

Australia 70.6 Norway 70.6 Sweden 69.5 Finland 69.3 New Zealand 67.7 Netherlands 67.2 Canada 67.2 Germany 67.1 Belgium 66.8 France 65.3 Denmark 65.2 Lithuania 65.2 United Kingdom 64.9 Iceland 64.2 Spain 63.8 Hungary 63.1 Switzerland 62.8 Ireland 62.6 Latvia 61.6 Portugal 61.5 Austria 61.5 Estonia 61.0 Luxembourg 60.5 Poland 60.5 Slovenia 59.1 Israel 59.1 Bulgaria 58.7 Moldova 58.1 Slovak Republic 58.1 United States 58.0 Greece 57.8 Hong Kong, China 57.4 Italy 57.1 Czech Republic 56.0 Argentina 56.0 South Africa 55.8 Singapore 55.6 Uruguay 55.6 Ukraine 54.7 Panama 54.4 Russian Federation 54.2 Mexico 54.2 Japan 54.1 Romania 53.9 Mongolia 53.9 Brazil 53.7 Croatia 53.7 Thailand 53.3 Kazakhstan 53.1 Korea, Rep. 52.4 Macedonia, FYR 52.3 Serbia 51.8 Belarus 51.8 Philippines 51.7 Albania 51.6 Namibia 51.3 Mauritius 50.9 China 50.9 Armenia 50.8 Costa Rica 50.3 Chile 50.3 Georgia 50.1 Colombia 50.0 Botswana 49.8 Ecuador 49.7 Montenegro 49.6 Venezuela 49.6 Kyrgyz Republic 49.3
Source: Booz & Company

Uzbekistan 49.1 69 Bosnia and Herzegovina 49.0 70 Honduras 48.8 71 Paraguay 48.6 72 Dominican Republic 48.5 73 Peru 48.2 74 Vietnam 47.9 75 Tajikistan 47.7 76 El Salvador 47.4 77 Bolivia 47.3 78 Ghana 47.2 79 Cambodia 47.0 80 Tonga 46.7 81 Malaysia 46.0 82 Nicaragua 46.0 83 Vanuatu 46.0 84 Tanzania 45.3 85 Kenya 44.9 86 Fiji 44.8 87 Turkmenistan 44.7 88 Uganda 44.6 89 Indonesia 43.7 90 Azerbaijan 43.7 91 Madagascar 43.6 92 Tunisia 42.9 93 Laos 42.4 94 Samoa 42.4 95 Sri Lanka 41.8 96 Kuwait 41.7 97 Malawi 41.6 98 Lebanon 41.3 99 Benin 40.8 100 Bahrain 40.3 101 Algeria 39.7 102 Solomon Islands 39.6 103 Timor Leste 39.1 104 Turkey 38.9 105 Cameroon 38.8 106 Papua New Guinea 38.8 107 Egypt 38.6 108 United Arab Emirates 38.4 109 Jordan 38.2 110 Zambia 38.0 111 Burkina Faso 37.9 112 Bangladesh 37.5 113 Ethiopia 37.4 114 India 37.3 115 Morocco 36.8 116 Togo 36.6 117 Oman 36.2 118 Senegal 36.0 119 Nigeria 35.9 120 Iran 35.8 121 Côte d’Ivoire 35.3 122 Saudi Arabia 34.2 123 Syria 34.0 124 Chad 33.8 125 Sudan 30.3 126 Pakistan 29.4 127 Yemen 26.1 128

In-depth profiles (in BOLD)

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THIRD BILLION INDEX RANKINGS
Exhibit 5 Country Performance by Inputs
Preparation Rank Access-to-Work Access-to-Work Entrepreneurial Policy Rank Policy Support Entrepreneurial Support Rank

Country

Preparation

Inputs

Inputs Rank

Albania 52.3 72 55.4 39 50.7 63 53.1 48 Algeria 44.2 101 52.7 55 43.0 93 45.8 87 Argentina 58.3 12 53.4 51 50.0 68 54.6 43 Armenia 54.1 51 55.1 41 42.8 95 50.7 60 Australia 60.7 3 69.1 6 62.9 6 65.7 4 Austria 54.7 45 65.7 9 61.4 15 61.6 12 Azerbaijan 50.9 79 42.7 95 41.7 102 44.8 91 Bahrain 53.5 57 35.7 118 52.8 52 47.7 78 Bangladesh 39.4 110 44.8 81 41.8 100 40.7 106 Belarus 56.1 32 45.7 77 49.8 70 51.0 58 Belgium 56.2 31 71.1 3 66.3 1 65.9 2 Benin 25.6 126 51.8 58 38.9 111 36.2 117 Bolivia 49.9 86 45.7 78 44.4 87 46.4 85 Bosnia and Herzegovina 53.5 58 40.2 109 54.2 44 49.8 64 Botswana 52.3 74 36.9 116 46.0 84 45.1 89 Brazil 53.4 59 58.5 29 54.7 42 56.1 38 Bulgaria 54.3 49 66.2 8 60.8 20 61.3 15 Burkina Faso 27.2 124 48.7 69 37.8 115 35.5 119 Cambodia 40.2 108 54.0 47 41.2 103 43.9 95 Cameroon 40.6 106 42.1 97 38.1 114 38.9 113 Canada 57.2 19 59.8 26 60.6 21 60.3 22 Chad 20.4 128 44.0 89 28.0 128 27.3 128 Chile 54.4 47 62.1 19 52.9 50 57.0 34 China 48.9 91 47.5 74 49.4 71 48.5 74 Colombia 52.6 69 44.2 88 53.5 47 50.5 61 Costa Rica 53.0 63 47.8 73 52.1 54 51.3 57 Côte d'Ivoire 28.8 123 41.0 103 35.2 119 32.5 123 Croatia 54.7 46 52.8 54 58.4 29 56.1 37 Czech Republic 58.1 15 59.8 25 62.8 7 61.5 13 Denmark 59.2 5 72.0 1 51.3 57 61.7 11 Dominican Republic 54.3 50 45.1 80 48.5 73 49.5 67 Ecuador 50.8 81 44.6 83 48.5 72 48.0 77 Egypt 42.1 103 42.8 94 46.5 80 43.0 100 El Salvador 49.0 90 45.4 79 51.1 60 48.5 75 Estonia 59.0 8 57.4 33 57.2 35 59.0 31 Ethiopia 24.6 127 41.8 98 33.1 125 30.3 126 Fiji 52.9 65 49.2 67 44.6 86 48.9 73 Finland 57.6 17 72.0 1 58.7 28 63.8 6 France 56.9 23 57.7 32 64.8 4 61.1 17 Georgia 54.0 52 54.9 43 43.3 92 50.7 59 Germany 57.0 21 61.8 21 65.0 3 62.6 10 Ghana 41.5 104 48.9 68 42.8 96 43.4 97 Greece 55.5 36 59.6 27 60.1 24 59.3 27 Honduras 52.5 70 43.5 92 51.4 56 49.4 68 Hong Kong, China 53.7 55 57.8 31 57.3 34 56.9 35 Hungary 56.3 29 61.0 22 62.3 9 61.0 18 Iceland 61.3 2 65.3 10 61.4 16 64.2 5 India 36.0 115 43.7 91 44.2 89 39.9 110 Indonesia 48.4 92 46.0 75 47.1 77 46.9 84 Iran 45.7 94 37.5 114 43.7 90 41.6 103 Ireland 58.3 13 55.5 38 60.1 23 59.1 28 Israel 56.5 26 60.7 23 58.3 30 59.4 25 Italy 57.1 20 56.5 36 62.7 8 60.0 24 Japan 55.0 40 57.1 34 62.0 12 59.0 29 Jordan 51.4 78 32.2 127 50.7 64 44.9 90 Kazakhstan 54.8 43 44.3 87 49.8 69 50.0 63 Kenya 45.2 97 54.8 44 42.9 94 46.9 83 Korea, Rep. 54.9 41 50.7 62 56.9 36 54.9 40 Kuwait 52.6 67 40.6 106 53.0 49 49.1 71 Kyrgyz Republic 53.2 60 34.3 121 41.9 99 43.0 99 Laos 38.8 112 44.5 84 39.3 110 39.4 112 Latvia 59.0 7 53.2 53 60.9 19 59.0 30 Lebanon 52.4 71 38.6 111 50.0 67 47.2 82 Lithuania 58.4 11 64.7 12 61.2 18 62.7 9 Luxembourg 53.7 54 63.8 14 56.8 37 58.8 32 Macedonia, FYR 51.8 77 56.7 35 54.9 41 54.8 41 Madagascar 44.1 102 40.6 105 33.4 123 38.1 114 Malawi 39.9 109 44.5 86 38.6 112 39.6 111 Malaysia 52.6 68 40.4 107 59.4 26 51.5 55

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Exhibit 5 Country Performance by Inputs (Continued)
Preparation Rank Access-to-Work Access-to-Work Entrepreneurial Policy Rank Policy Support Entrepreneurial Support Rank

Country

Preparation

Inputs

Inputs Rank

Mauritius 50.7 82 54.7 45 57.8 33 54.8 42 Mexico 52.0 75 58.3 30 51.1 61 54.0 44 Moldova 53.2 61 55.0 42 46.9 79 51.8 52 Mongolia 55.7 34 48.1 72 46.4 82 50.3 62 Montenegro 55.5 37 41.1 102 55.7 38 51.5 56 Morocco 36.1 114 37.4 115 53.1 48 41.2 104 Namibia 52.8 66 49.8 65 46.4 81 49.7 65 Netherlands 57.4 18 68.1 7 61.7 14 63.6 7 New Zealand 61.7 1 63.9 13 60.1 22 63.4 8 Nicaragua 49.5 88 51.1 60 42.6 97 47.4 80 Nigeria 34.3 117 33.1 125 41.7 101 34.6 121 Norway 60.2 4 70.8 4 62.1 11 65.8 3 Oman 45.0 99 38.8 110 51.3 58 44.7 92 Pakistan 31.7 122 41.8 99 40.2 106 35.9 118 Panama 55.1 39 49.6 66 52.8 51 53.1 47 Papua New Guinea 31.8 120 33.8 122 32.6 126 30.3 124 Paraguay 52.3 73 50.0 64 45.9 85 49.4 69 Peru 49.5 87 52.2 56 46.0 83 49.0 72 Philippines 53.6 56 53.7 50 40.5 105 49.2 70 Poland 56.7 25 62.7 15 58.2 31 60.2 23 Portugal 54.8 44 62.3 17 62.2 10 60.7 20 Romania 55.9 33 59.2 28 50.9 62 55.9 39 Russian Federation 54.4 48 41.1 101 52.1 53 49.6 66 Samoa 53.0 62 33.3 124 40.0 108 41.9 102 Saudi Arabia 50.5 83 33.4 123 46.9 78 43.5 96 Senegal 31.7 121 40.9 104 42.3 98 36.4 116 Serbia 55.5 35 42.3 96 55.0 40 51.6 54 Singapore 53.9 53 43.3 93 62.0 13 53.9 45 Slovak Republic 57.6 16 62.3 18 59.5 25 60.9 19 Slovenia 59.1 6 61.9 20 59.0 27 61.2 16 Solomon Islands 41.1 105 33.0 126 33.8 122 34.5 122 South Africa 50.9 80 53.7 49 55.2 39 53.6 46 Spain 57.0 22 64.9 11 53.9 45 59.4 26 Sri Lanka 49.4 89 40.3 108 43.4 91 44.0 94 Sudan 33.9 119 25.0 128 30.2 127 27.4 127 Sweden 58.2 14 69.6 5 65.9 2 66.0 1 Switzerland 54.8 42 60.4 24 57.8 32 58.5 33 Syria 44.6 100 35.1 120 44.3 88 40.6 107 Tajikistan 47.4 93 52.0 57 40.7 104 46.1 86 Tanzania 39.3 111 56.5 37 38.4 113 43.3 98 Thailand 51.9 76 51.3 59 54.6 43 53.0 49 Timor Leste 35.9 116 53.3 52 37.3 116 40.4 109 Togo 34.2 118 43.8 90 34.2 121 35.3 120 Tonga 56.4 28 35.5 119 40.0 107 44.0 93 Tunisia 50.1 85 53.8 48 51.1 59 51.7 53 Turkey 45.3 96 48.3 71 50.6 65 47.7 79 Turkmenistan 50.1 84 37.8 113 35.5 118 40.4 108 Uganda 40.6 107 50.1 63 35.9 117 40.8 105 Ukraine 56.2 30 48.7 70 50.0 66 52.2 50 United Arab Emirates 55.4 38 36.2 117 51.6 55 48.2 76 United Kingdom 56.9 24 62.5 16 61.3 17 61.3 14 United States 58.8 9 55.2 40 63.6 5 60.5 21 Uruguay 58.4 10 54.2 46 53.8 46 56.4 36 Uzbekistan 53.0 64 41.4 100 47.2 76 47.3 81 Vanuatu 45.7 95 44.7 82 39.9 109 42.6 101 Venezuela 56.5 27 51.0 61 47.7 75 52.1 51 Vietnam 45.2 98 44.5 85 48.0 74 45.4 88 Yemen 26.1 125 37.8 112 35.1 120 30.3 125 Zambia 37.0 113 46.0 76 33.2 124 36.8 115

In-depth profiles (in BOLD)

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THIRD BILLION INDEX RANKINGS
Exhibit 6 Country Performance by Outputs
Advancement Rank Inclusion Rank

Country

Advancement

Inclusion

Pay

Pay Rank*

Outputs

Outputs Rank

Albania 51.4 74 50.6 74 47.8 42 49.8 66 Algeria 34.2 121 33.1 114 47.8 42 35.7 116 Argentina 53.4 55 50.9 71 59.4 19 56.1 33 Armenia 50.0 83 54.4 49 47.8 42 50.8 57 Australia 62.0 8 59.3 21 76.9 1 71.2 1 Austria 53.0 65 51.7 67 65.2 16 59.0 24 Azerbaijan 43.2 99 50.7 73 42.0 65 43.9 94 Bahrain 35.4 117 36.7 112 42.0 65 35.0 119 Bangladesh 33.2 122 43.3 97 42.0 65 36.9 113 Belarus 55.7 40 58.8 24 42.0 65 52.2 50 Belgium 53.4 56 57.4 37 71.0 9 64.3 15 Benin 34.9