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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Empowering the Third Billion Women and the world of work in 2012

Contacts

Milan Luigi Pugliese Partner +39-02-72-50-93-03 luigi.pugliese @strategyand.pwc.com Mumbai Jai Sinha Partner +91-22-6128-1102 jai.sinha @strategyand.pwc.com Munich Klaus-Peter Gushurst Senior Partner +49-89-54525-537 klaus-peter.gushurst @strategyand.pwc.com

New York Reid Carpenter Principal +1-212-551-6389 reid.carpenter @strategyand.pwc.com San Francisco DeAnne Aguirre Senior Partner +1-415-653-3472 deanne.aguirre @strategyand.pwc.com São Paulo Ivan de Souza Senior Partner +55-11-5501-6368 ivan.de.souza @strategyand.pwc.com

Shanghai Sarah Butler Partner +86-21-2327-9800 sarah.butler @strategyand.pwc.com Stuttgart Christine Rupp Partner +49-711-34226-916 christine.rupp @strategyand.pwc.com Tokyo Akiko Karaki Principal +81-3-6757-8709 akiko.karaki @strategyand.pwc.com

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About the authors

DeAnne Aguirre is a senior partner with Strategy& based in San Francisco. She is the global leader for the firm’s people and change team, and has led transformations in both U.S. and global corporations. Leila Hoteit was formerly a partner with Booz & Company. Christine Rupp is a partner with Strategy& based in Stuttgart. She is a telecommunications expert in the firm’s communications, media, and technology practice. Christine’s functional expertise is in B2B sales and in cost transformation. Karim Sabbagh was formerly a senior partner with Strategy&.

This report was originally published by Booz & Company in 2012.

Lead editor: Melissa Master Cavanaugh Research and development: Mounira Jamjoom, Reid Carpenter, Sindhu Kitty Editors: Jeff Garigliano, Paula Margulies, Caryle Murphy Marketing lead: Joanne Alam Index developer: Fernando Cartwright Editorial production: Elizabeth Johnson, Jen Swetzoff, Bob Luckey, Victoria Beliveau, Debaney Shepard Editor-in-Chief, Strategy&: Art Kleiner Former Chief Marketing and Knowledge Officer, Booz & Company: Thomas A. Stewart Strategy& thanks La Pietra Coalition for its diligent efforts to call global attention to the importance of empowering the Third Billion.

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Strategy& 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 4

• 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

About the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Foreword, by Cherie Blair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Executive summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 I. The origin of the index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 An overview of the findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 The threshold to the middle class. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Quantifying the economic contribution of women. . . . . . . . . . . . . . . . . 24 II. Common challenges around the globe. . . . . . . . . . . . . . . . . . . . . . 27 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Third Billion Index rankings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 III. Country profiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Argentina. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Brazil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Germany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Italy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Japan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 South Africa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Tanzania. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
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Spotlight on the Middle East . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Egypt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Saudi Arabia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 United Arab Emirates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Coca-Cola: A top-down decision to empower entrepreneurs. . . . . . . . . 59 Dell: Connecting with female entrepreneurs through technology. . . . 82 Goldman Sachs: Investing in entrepreneurs . . . . . . . . . . . . . . . . . . . . . 111 Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

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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 private-sector leaders see what works best and identify specific policies and countries as models.
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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,
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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. 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 topperforming 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.”

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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. 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 highlevel 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 Strategy& 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”)
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• 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 nation-by-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 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
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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 16) 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
Strategy& 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, next page). Note: Sources are indicated in parentheses: EIU for the Economist Intelligence Unit reports, WEF for the World Economic Forum reports. • 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 mediumsized 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)

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)
Continued
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Exhibit 1 Components of the Strategy& Third Billion Index

Third Billion Index

Inputs

Outputs

Preparation
– Ratio of female to male literacy rate – Overall literacy rate for women – Ratio of female to male enrollment in secondary education – Level of primary and secondary education among women – Ratio of female to male enrollment in tertiary education – Mean years of schooling – Level of tertiary education among women

Access-towork policy
– Equal pay for equal work policy – Nondiscrimination policy – Maternity and paternity leave provision – Access to child care – Legal restrictions on certain job types for women

Entrepreneurial support
– Access to technology and energy – Property ownership rights – Support and development training for owners of SMEs – Women’s access to finance programs – Ability to build credit history – Availability of private-sector credit – Delivery of financial services

Inclusion
– Female-to-male ratio among wage employees – Female-to-male ratio of wages – Female-to-male ratio of participation in the labor force

Advancement
– Female-to-male ratio among professional and technical workers – Female-to-male ratio among legislators, senior officials, and managers – Female-to-male ratio among employers

Equal pay
– Equal pay for equal work in practice

Source: Strategy&

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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) 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.

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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 front-end 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, next page). 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. 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
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Exhibit 2 Five country clusters, based on performance in economically empowering women
The Third Billion index
Outputs
80 Finland Canada Germany South Africa 60 Tanzania 50 Chad Argentina 40 India Sudan 30 Yemen 20 20 30 Morocco Jordan Turkey Saudi Arabia 40 Kuwait United Arab Emirates Egypt Brazil Italy Japan United States China France Singapore Sweden Belgium Netherlands Australia Norway

70

Syria Pakistan

50

60

70

Inputs
Average zone On the path to success At the starting gate Taking the right steps Forging their own path Average

Source: Third Billion Index (Strategy&); data from World Economic Forum and Economist Intelligence Unit

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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, next page). 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 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.

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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 6.9 0.9 64.2 45.0 649.3 98.8 These 865 million women in 2020 will conceivably grow to 1 billion in the following decade
Not prepared Not enabled Neither prepared nor enabled

Source: Strategy&

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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-to-overall 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 parttime. Interruptions in employment to take care of family members (young and old) also affect the average hours worked by an employed person. 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:

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Country

Gross impact on GDP

Net impact on GDP

Argentina Brazil China Denmark Egypt France Germany India Italy Japan South Africa Spain Sweden Tanzania United Arab Emirates United Kingdom United States

19% 12% 15% 9% 8% 5% 4% 3% 56% 34% 7% 4% 7% 4% 45% 27% 19% 11% 15% 9% 17% 10%

10% 6% 3% 2% 3% 2% 19% 8% 8% 12% 5% 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
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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 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 low-paying, 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
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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 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
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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 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
30 Strategy&

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 women-owned 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

Australia Norway Sweden Finland New Zealand Netherlands Canada Germany Belgium France Denmark Lithuania United Kingdom Iceland Spain Hungary Switzerland Ireland Latvia Portugal Austria Estonia Luxembourg Poland Slovenia Israel Bulgaria

70.6 70.6 69.5 69.3 67.7 67.2 67.2 67.1 66.8 65.3 65.2 65.2 64.9 64.2 63.8 63.1 62.8 62.6 61.6 61.5 61.5 61.0 60.5 60.5 59.1 59.1 58.7

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
* In-depth profiles shaded and in bold Source: Strategy&

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Country

Third Billion Index score

Third Billion Index rank

Moldova Slovak Republic United States Greece Hong Kong, China Italy Czech Republic Argentina South Africa Singapore Uruguay Ukraine Panama Russian Federation Mexico Japan Romania Mongolia Brazil Croatia Thailand Kazakhstan Korea, Rep. Macedonia, FYR Serbia Belarus Philippines Albania Namibia Mauritius China Armenia Costa Rica Chile

58.1 58.1 58.0 57.8 57.4 57.1 56.0 56.0 55.8 55.6 55.6 54.7 54.4 54.2 54.2 54.1 53.9 53.9 53.7 53.7 53.3 53.1 52.4 52.3 51.8 51.8 51.7 51.6 51.3 50.9 50.9 50.8 50.3 50.3

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

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Country

Third Billion Index score

Third Billion Index rank

Georgia Colombia Botswana Ecuador Montenegro Venezuela Kyrgyz Republic Uzbekistan Bosnia and Herzegovina Honduras Paraguay Dominican Republic Peru Vietnam Tajikistan El Salvador Bolivia Ghana Cambodia Tonga Malaysia Nicaragua Vanuatu Tanzania Kenya Fiji Turkmenistan Uganda Indonesia Azerbaijan Madagascar Tunisia Laos Samoa

50.1 50.0 49.8 49.7 49.6 49.6 49.3 49.1 49.0 48.8 48.6 48.5 48.2 47.9 47.7 47.4 47.3 47.2 47.0 46.7 46.0 46.0 46.0 45.3 44.9 44.8 44.7 44.6 43.7 43.7 43.6 42.9 42.4 42.4

62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95

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Country

Third Billion Index score

Third Billion Index rank

Sri Lanka Kuwait Malawi Lebanon Benin Bahrain Algeria Solomon Islands Timor Leste Turkey Cameroon Papua New Guinea Egypt United Arab Emirates Jordan Zambia Burkina Faso Bangladesh Ethiopia India Morocco Togo Oman Senegal Nigeria Iran Côte d’Ivoire Saudi Arabia Syria Chad Sudan Pakistan Yemen

41.8 41.7 41.6 41.3 40.8 40.3 39.7 39.6 39.1 38.9 38.8 38.8 38.6 38.4 38.2 38.0 37.9 37.5 37.4 37.3 36.8 36.6 36.2 36.0 35.9 35.8 35.3 34.2 34.0 33.8 30.3 29.4 26.1

96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

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Third Billion Index rankings Exhibit 5 Country performance by inputs*

Country

Access-toPreparation Access-to- work policy Preparation rank work policy rank

Entrepreneurial support

Entrepreneurial support rank

Inputs

Inputs rank

Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Belarus Belgium Benin Bolivia Bosnia and Herzegovina Botswana Brazil Bulgaria Burkina Faso Cambodia Cameroon Canada Chad Chile China Colombia

52.3 44.2 58.3 54.1 60.7 54.7 50.9 53.5 39.4 56.1 56.2 25.6 49.9 53.5 52.3 53.4 54.3 27.2 40.2 40.6 57.2 20.4 54.4 48.9 52.6

72 101 12 51 3 45 79 57 110 32 31 126 86 58 74 59 49 124 108 106 19 128 47 91 69

55.4 52.7 53.4 55.1 69.1 65.7 42.7 35.7 44.8 45.7 71.1 51.8 45.7 40.2 36.9 58.5 66.2 48.7 54.0 42.1 59.8 44.0 62.1 47.5 44.2

39 55 51 41 6 9 95 118 81 77 3 58 78 109 116 29 8 69 47 97 26 89 19 74 88

50.7 43.0 50.0 42.8 62.9 61.4 41.7 52.8 41.8 49.8 66.3 38.9 44.4 54.2 46.0 54.7 60.8 37.8 41.2 38.1 60.6 28.0 52.9 49.4 53.5

63 93 68 95 6 15 102 52 100 70 1 111 87 44 84 42 20 115 103 114 21 128 50 71 47

53.1 45.8 54.6 50.7 65.7 61.6 44.8 47.7 40.7 51.0 65.9 36.2 46.4 49.8 45.1 56.1 61.3 35.5 43.9 38.9 60.3 27.3 57.0 48.5 50.5

48 87 43 60 4 12 91 78 106 58 2 117 85 64 89 38 15 119 95 113 22 128 34 74 61

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Country

Access-toPreparation Access-to- work policy Preparation rank work policy rank

Entrepreneurial support

Entrepreneurial support rank

Inputs

Inputs rank

Costa Rica Côte d’Ivoire Croatia Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Fiji Finland France Georgia Germany Ghana Greece Honduras Hong Kong, China Hungary Iceland India Indonesia Iran Ireland Israel Italy Japan Jordan Kazakhstan

53.0 28.8 54.7 58.1 59.2 54.3 50.8 42.1 49.0 59.0 24.6 52.9 57.6 56.9 54.0 57.0 41.5 55.5 52.5 53.7 56.3 61.3 36.0 48.4 45.7 58.3 56.5 57.1 55.0 51.4 54.8

63 123 46 15 5 50 81 103 90 8 127 65 17 23 52 21 104 36 70 55 29 2 115 92 94 13 26 20 40 78 43

47.8 41.0 52.8 59.8 72.0 45.1 44.6 42.8 45.4 57.4 41.8 49.2 72.0 57.7 54.9 61.8 48.9 59.6 43.5 57.8 61.0 65.3 43.7 46.0 37.5 55.5 60.7 56.5 57.1 32.2 44.3

73 103 54 25 1 80 83 94 79 33 98 67 1 32 43 21 68 27 92 31 22 10 91 75 114 38 23 36 34 127 87

52.1 35.2 58.4 62.8 51.3 48.5 48.5 46.5 51.1 57.2 33.1 44.6 58.7 64.8 43.3 65.0 42.8 60.1 51.4 57.3 62.3 61.4 44.2 47.1 43.7 60.1 58.3 62.7 62.0 50.7 49.8

54 119 29 7 57 73 72 80 60 35 125 86 28 4 92 3 96 24 56 34 9 16 89 77 90 23 30 8 12 64 69

51.3 32.5 56.1 61.5 61.7 49.5 48.0 43.0 48.5 59.0 30.3 48.9 63.8 61.1 50.7 62.6 43.4 59.3 49.4 56.9 61.0 64.2 39.9 46.9 41.6 59.1 59.4 60.0 59.0 44.9 50.0

57 123 37 13 11 67 77 100 75 31 126 73 6 17 59 10 97 27 68 35 18 5 110 84 103 28 25 24 29 90 63

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Country

Access-toPreparation Access-to- work policy Preparation rank work policy rank

Entrepreneurial support

Entrepreneurial support rank

Inputs

Inputs rank

Kenya Korea, Rep. Kuwait Kyrgyz Republic Laos Latvia Lebanon Lithuania Luxembourg Macedonia, FYR Madagascar Malawi Malaysia Mauritius Mexico Moldova Mongolia Montenegro Morocco Namibia Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Papua New Guinea Paraguay Peru Philippines
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45.2 54.9 52.6 53.2 38.8 59.0 52.4 58.4 53.7 51.8 44.1 39.9 52.6 50.7 52.0 53.2 55.7 55.5 36.1 52.8 57.4 61.7 49.5 34.3 60.2 45.0 31.7 55.1 31.8 52.3 49.5 53.6

97 41 67 60 112 7 71 11 54 77 102 109 68 82 75 61 34 37 114 66 18 1 88 117 4 99 122 39 120 73 87 56

54.8 50.7 40.6 34.3 44.5 53.2 38.6 64.7 63.8 56.7 40.6 44.5 40.4 54.7 58.3 55.0 48.1 41.1 37.4 49.8 68.1 63.9 51.1 33.1 70.8 38.8 41.8 49.6 33.8 50.0 52.2 53.7

44 62 106 121 84 53 111 12 14 35 105 86 107 45 30 42 72 102 115 65 7 13 60 125 4 110 99 66 122 64 56 50

42.9 56.9 53.0 41.9 39.3 60.9 50.0 61.2 56.8 54.9 33.4 38.6 59.4 57.8 51.1 46.9 46.4 55.7 53.1 46.4 61.7 60.1 42.6 41.7 62.1 51.3 40.2 52.8 32.6 45.9 46.0 40.5

94 36 49 99 110 19 67 18 37 41 123 112 26 33 61 79 82 38 48 81 14 22 97 101 11 58 106 51 126 85 83 105

46.9 54.9 49.1 43.0 39.4 59.0 47.2 62.7 58.8 54.8 38.1 39.6 51.5 54.8 54.0 51.8 50.3 51.5 41.2 49.7 63.6 63.4 47.4 34.6 65.8 44.7 35.9 53.1 30.3 49.4 49.0 49.2

83 40 71 99 112 30 82 9 32 41 114 111 55 42 44 52 62 56 104 65 7 8 80 121 3 92 118 47 124 69 72 70
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Country

Access-toPreparation Access-to- work policy Preparation rank work policy rank

Entrepreneurial support

Entrepreneurial support rank

Inputs

Inputs rank

Poland Portugal Romania Russian Federation Samoa Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia Solomon Islands South Africa Spain Sri Lanka Sudan Sweden Switzerland Syria Tajikistan Tanzania Thailand Timor Leste Togo Tonga Tunisia Turkey Turkmenistan Uganda Ukraine United Arab Emirates

56.7 54.8 55.9 54.4 53.0 50.5 31.7 55.5 53.9 57.6 59.1 41.1 50.9 57.0 49.4 33.9 58.2 54.8 44.6 47.4 39.3 51.9 35.9 34.2 56.4 50.1 45.3 50.1 40.6 56.2 55.4

25 44 33 48 62 83 121 35 53 16 6 105 80 22 89 119 14 42 100 93 111 76 116 118 28 85 96 84 107 30 38

62.7 62.3 59.2 41.1 33.3 33.4 40.9 42.3 43.3 62.3 61.9 33.0 53.7 64.9 40.3 25.0 69.6 60.4 35.1 52.0 56.5 51.3 53.3 43.8 35.5 53.8 48.3 37.8 50.1 48.7 36.2

15 17 28 101 124 123 104 96 93 18 20 126 49 11 108 128 5 24 120 57 37 59 52 90 119 48 71 113 63 70 117

58.2 62.2 50.9 52.1 40.0 46.9 42.3 55.0 62.0 59.5 59.0 33.8 55.2 53.9 43.4 30.2 65.9 57.8 44.3 40.7 38.4 54.6 37.3 34.2 40.0 51.1 50.6 35.5 35.9 50.0 51.6

31 10 62 53 108 78 98 40 13 25 27 122 39 45 91 127 2 32 88 104 113 43 116 121 107 59 65 118 117 66 55

60.2 60.7 55.9 49.6 41.9 43.5 36.4 51.6 53.9 60.9 61.2 34.5 53.6 59.4 44.0 27.4 66.0 58.5 40.6 46.1 43.3 53.0 40