South Asia’s Economic Growth Surges, Yet Gender Inequality Limits Full Potential

Islamabad: South Asia’s economic performance is surpassing expectations, maintaining its position as the fastest-growing region among emerging markets and developing economies (EMDEs), as reported by the World Bank in its October 2024 South Asia Development Update. The region faces significant challenges, including extreme weather, social unrest, and potential policy setbacks that could threaten its economic trajectory. However, addressing gender disparities in the workforce could unlock substantial economic gains.

According to The World Bank, the update emphasizes the considerable untapped potential within South Asia to boost productivity and adapt to climate change. A critical area of focus is the region’s gender inequality in employment. Approximately two-thirds of South Asia’s working-age women are currently out of the labor force, and equalizing female employment rates to those of men could potentially raise per capita income by up to 50%. The report advocates for accelerated job creation and the removal of barriers to women working, suggesting that these measures should be complemented by a societal shift towards more favorable views on women working.

The analysis also highlights the region’s insularity as a significant impediment to maximizing benefits from global trade and the reshaping of international supply chains. Moreover, the disparity in heat exposure between wealthier and poorer households and between larger and smaller firms suggests the need for targeted policies to mitigate these risks.

The World Bank points out that South Asia’s legal frameworks and social norms are some of the least supportive of women’s rights globally, with 70% of the population holding conservative views against women working outside the home. This societal stance contributes significantly to the low female labor force participation rates, which remain among the lowest compared to other EMDEs.

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