Research on gender equality and trade has been held back by limited data and a lack of understanding of the connections between the economic roles women play as workers, consumers, and decision makers. Building on new analysis and new sex-disaggregated data, this report aims to advance understanding on the relationship between trade and gender equality and to identify a series of opportunities through which women can gain from trade.
Women and Trade: The Role of Trade in Promoting Women’s Equality—a joint report by the World Bank Group and the World Trade Organization—marks the first major effort to quantify how women are affected by trade through the use of a new gender-disaggregated labor dataset. This analysis helps governments understand how trade policies will affect women and men differently.
“Over the past 30 years trade has been the engine of poverty reduction. This report shows that, provided the right policies are in place, it can also provide an engine to reduce the gender gap”, said World Bank Managing Director Mari Pangestu. “Trade can expand women’s role in the economy and decrease disparities with men by giving women more and better employment opportunities. Seizing these opportunities will be even more important in a post-COVID-19 world.”
Exporters employ more women: In developing countries, women make up 33 percent of the workforce of exporting firms compared with just 24 percent of non-exporting firms.
Trade creates better jobs for women: When women are employed in sectors with high levels of exports, they are more likely to be formally employed in a job with better benefits, training and security.
Trade increases women’s wages and increases economic equality: Developing countries that double their manufacturing exports—a typical increase for developing countries that open themselves to trade—would see women increase their share of total manufacturing wages from 24% to 30% through a combination of increased employment and higher salaries.
Targeted policies can help women maximize the benefits of trade. These include removing trade barriers that impede women’s access to international markets and improving women’s access to education, financial services, and digital technologies.
More than two-thirds of women in developed countries were employed in the services sector in 2017, up from 45 percent in 1991. In developing countries, the proportion of women in the service sector jumped to 38 percent from 25 percent over the same period.
Countries are becoming more integrated with global value chains, which tend to create jobs and increase wages for women. GVC jobs tend to have positive, indirect benefits on other aspects of women’s livelihoods, such as education.
Digital technology and new online platforms create opportunities for women to bypass traditional trade barriers, expand their entrepreneurial skills and develop flexible careers that enable them to manage both work and household responsibilities.
Embracing new technologies defines a company’s competitiveness on the market today, its efficient operation and its future development. As businesses go remote, many of them transfer their valuable data to the cloud – experts predict up to 60% will be using external provider services by 2022. This allows companies to tune internal communications, process and store larger amounts of data and deliver more value to customers.
The Digital Transformation Officer (DTO) plays the key role in managing the strategic approach necessary to successfully undertake such transformations. Part of that success means managing cyber-risk. In fact, the World Economic Forum, in its guidance to boards of directors, recommends that organizational design supports cybersecurity. The DTO has significant responsibility in making sure this important obligation is met.
Investments in digital transformation are projected to reach $1.78 trillion in 2022. In this regard, the DTO plays the key role – their task is to drive the company’s digital transformation by ensuring seamless integration of novel technologies into business operations. This mission is complex and does not only mean introducing new software and hardware. It is about full revision of internal and external processes, training of staff, and, perhaps most crucially, implementing new approaches to security.
The need for the effective cybersecurity is growing in parallel with the increasing digitalization of work processes. Over the past two years, many industries have seen a substantial rise in security incidents.
Unless a DTO pays sufficient attention to security, one incident may disrupt the whole strategy of a company’s transformation and future development, bringing enormous financial and reputational damage. For example, in 2021 the average cost of a data breach has risen to $4.24 million, the highest in the past 17 years.
The main challenge for a DTO is not only to take a company to new heights through digital transformation, but to ensure that transformation is sustainable. This means she or he must ensure continuity of the company’s processes and not let a single cyberattack disrupt operations. With that in mind, cybersecurity becomes an integral part of every digital transformation strategy.
We recommend DTOs consider the following trends:
1. Securing digital assets
Moving to remote work revealed a lot of challenges and new risks – one in five companies were not ready to ensure stable business processes in case of failures in their IT infrastructure. To stay on the safe side, a DTO should manage a detailed inventory of digital assets. This will point out the most important resources that require protection in the first place, be they data, network repositories or workplaces; it may also reveal a wide range of unaccounted assets that could appear during digitalization. BI.ZONE research shows that 60% of data leaks and 85% of network compromises are linked with such assets. These incidents may disrupt the company’s daily operations. To avoid that, the digital assets need to be accounted and secure.
2. Cloud security
Moving to cloud offers companies significant flexibility as well as potential security benefits. Still, there are certain challenges, most commonly when a company becomes dependent on only one cloud service provider, e.g. due to specific data storage formats. In the event of vendor lock-out – if the service provider goes bankrupt, leaves the market, or suffers a cybersecurity incident itself – all the company systems in the cloud will be unavailable. In light of these challenges, the DTO needs to have a deep understanding of how their company is using and securing the cloud. It is important to learn in advance what solutions and formats are utilized by the supplier, as well as their compatibility with formats by other vendors, and to assess the cybersecurity level of this supplier. A DTO can arrange this internally or hire third-party IT experts for help.
3. Developing skills to operate novel technologies securely
Recognizing the human factor in digital transformation may offer significant benefits. Digital transformation requires new skills both from technical and non-technical specialists. Human mistakes and lack of knowledge often lead to cyber-incidents, notwithstanding a company’s investments into expensive security means. BI.ZONE research shows 80% of successful cyberattacks utilize social engineering methods. Therefore, a DTO can reduce the risks of incidents by promoting regular trainings for every employee and top management on how to work safely in the new digital reality.
4. New approaches to cyber-incident management
If any crisis strikes, the company should be ready at all levels to keep the operations going. A DTO should work closely with the company’s Chief Information Security Officer (CISO) to improve and regularly update business continuity and incident response plans, and to promote regular crisis-management trainings for all company members, including the board. Also, it is important for a DTO to be aware of the latest trends, and to test and introduce new methods of incident management.For example, there are managed detection and response services that foresee proactive approach to threats, or threat intelligence for building better security. Smooth introduction of these approaches may require specific experience and supervision of experts.
5. Outsourcing cybersecurity tasks
As digital transformation is an ongoing process, these tasks are complex, require substantial investments and may turn out rather difficult for a company to deal with. Besides, businesses are facing a deficit of qualified personnel – the global shortage for cybersecurity specialists has hit 3 million. Today there are expert organizations that help companies to go through digital transformation securely. They possess the required experience and capacities, the expensive equipment and software, and are aware of the tendencies within the field. They can also help to address cybersecurity issues and avoid common mistakes.
Digital transformation is a challenging but manageable task. It is important for a DTO to work as a team with the CISO, senior leadership, and the board and to stay tuned with the rapid changes in business and technologies. Addressing all the elements in a cross-functional way and prioritizing cybersecurity will facilitate secure digital transformation and ensure your company’s stable development for years to come.
Embracing new technologies defines a company’s competitiveness on the market today, its efficient operation and its future development. As businesses go remote, many of them transfer their valuable data to the cloud – experts predict...
Providing everyone with a transaction account to send and receive money electronically is widely considered the first step towards financial inclusion. For the unbanked, such accounts are seen as the gateway to savings, credit, insurance and a host of other financial activities and services.
Ongoing advances in financial technology (fintech) have introduced new ways to expand access to financial services and the range of services on offer, both for experienced customers and for unbanked people gaining access to transaction accounts for the first time.
Alongside the traditional offerings, some banks have moved to support “open banking” in coordination with third-party online service providers.
Innovations in fields like big data analytics, digital identity and biometrics have ushered in new ways to assess creditworthiness and onboard new customers.
With transaction accounts now offered not just by banks, but also increasingly via mobile money providers and other non-bank platforms, a wide range of players can be involved in enabling payments.
For financial regulators, this raises a range of questions, with the imperative to spur fintech innovation being balanced against the responsibility to manage risks.
Guiding principles for Payment Aspects of Financial Inclusion (PAFI), released in 2016 and updated in 2020, rest on public and private-sector commitments to provide everyone with access to a transaction account, a suitable supporting legal and regulatory framework, and the necessary financial and digital infrastructure.
Fintech’s rapid rise to prominence in recent years has led to further review of PAFI principles, again led by the World Bank Group and the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements (BIS). This time, the institutions focused on detailing how the PAFI principles apply to the latest fintech innovations.
The latest report notes fintech’s potential to broaden financial inclusion through initiatives embedded in wider country-level reforms.
Inclusive payment systems depend on close coordination between regulatory authorities and industry players, both to harmonize oversight and establish resilient infrastructure for electronic payments.
The right balance is needed between increasing efficiency and ensuring safety, as well as between enhancing the customer experience and protecting personal data.
The movement towards increasingly digital financial life, industry experts caution, may deepen exclusion for some.
Source: Bank for International Settlements and World Bank Group (2020): Payment aspects of financial inclusion in the fintech era.
Tracking financial inclusion
To help national authorities apply PAFI guidance, the project provides guidance for diagnostic studies to track transaction account access and use. The toolkit allows comparisons against international benchmarks or within each jurisdiction over time as countries strive for more inclusive payment systems.
Morocco’s inclusion strategy
The PAFI toolkit forms part of a country-level self-assessment for Morocco’s financial sector, says Hakima El Alami, Director of Payment Systems and Instruments Oversight and Financial Inclusion Directorate at Bank Al-Maghrib, the country’s central bank.
Morocco is making fintech solutions part of its national Financial Inclusion Strategy — which aims to give all citizens and businesses fair access to formal financial products and services, she said during the recent Financial Inclusion Global Initiative (FIGI) Symposium.
Albania builds trust
Market access for new entrants also requires careful consideration, so that entities of all sizes enjoy equal opportunities for competition.
“From our perspective as a regulator, we need the market to have as many alternatives as possible, and this comes into force only with tools like a framework, infrastructure, and giving access in a secure and mitigated way,” said Ledia Bregu, Director of Payments in the Bank of Albania’s Accounting and Finance Department.
Bregu cited financial literacy as a key challenge, along with building customer confidence.
“When we speak about innovation and fintech, we need to build trust, so the new or unbanked part of the population has the same understanding and the same trust to use innovative tools to become more financially included.”
Financial inclusion can drive investment and economic development — important considerations for Albania and other relatively small economies in the Western Balkans, she adds. “At the end of the day we see it as a tool for economic growth,” says Bregu.
Mexico seeks network effects
Exponential tech growth means not only new services, but also new types of firms providing services, says Miguel Manuel Díaz, Director of Payment Systems and Infrastructure at Banxico.
This, he believes, has ramped up the pressure on central banks and other regulators.
According to Díaz, five key balances need to be maintained by authorities working to accommodate new types of industry players and services:
Innovation versus risk mitigation;
Economies of scale versus competition;
Efficiency versus system security;
Achieving diversity versus efficient system standardization; and
Privacy versus security requirements.
Díaz sees two key tools to expand access to payment services while mitigating associated risks:
First, a central enabling infrastructure available to everyone. This supports competition among payment services and introduces network effects that help services reach as many people as possible.
Second, in-depth analysis to ensure the consistency of regulations with new market realities. For example, regulators may consider shifting from overseeing different types of institutions towards overseeing the different functions involved in providing a service.
South Africa recognizes limits of current regulation
While financial inclusion is a high priority today, this was not always the case in South Africa, says Pearl Malumane, Senior Analyst in the Policy and Regulation Division at the South African Reserve Bank.
“Over the years, the focus has always been on financial stability, but other regulators and also the South African Reserve Bank have come to realize the importance of financial inclusion,” she says.
“As a result, we have seen the growth of fintechs in South Africa, but we are aware that there are limits in our current regulatory framework. It is very restrictive in terms of what type of payment activities fintechs, or non-banks, are allowed to do.”
But the industry and its regulators need to persist in finding the right way forward, Malumane says. “Where fintech is enabled, it will enhance not only financial inclusion but also competition and innovation in the national payment system and throughout the country,” she says.
Providing everyone with a transaction account to send and receive money electronically is widely considered the first step towards financial inclusion. For the unbanked, such accounts are seen as the gateway to savings, credit, insurance...
“Digital Jobs Albania” is a new World Bank initiative that will help women in Albania gain better access to online work opportunities and connect with the global economy. The initiative will provide intensive 3-month training in digital skills for women aged 16-35 years, empowering them to access online freelancer job opportunities in graphic design, web development and digital marketing.
The emergence of online freelancer job markets is creating new opportunities for Albanians to connect with the global economy. Websites such as Upwork, Fiverr and People Per Hour allow Albanians with the right skills to access online project work commissioned by companies and individuals anywhere in the world, while staying in their local communities.
Women in particular stand to gain. The female labor force participation in Albania is still 14.6 percentage points lower than for males. The gender pay gap remains 6.6 percent, according to 2020 data from the Albanian National Statistical Authority (INSTAT). The emerging online freelancing work model can play an important role in narrowing these gaps. Flexible work hours and the ability to work from home can help more women with the right skills stay in the labor market and gain financial independence.
The Digital Jobs Albania initiative, implemented in partnership with the Government of Albania, Coderstrust (an international digital skills training provider), and EuroPartners Development (a local consulting company), will provide an online training program to equip selected participants with in-demand technical skills. It will also provide mentorship to participants and help them develop the soft skills needed to successfully compete for project work on online freelancer websites.
“This initiative offers an exciting new opportunity for Albanian women to acquire digital skills and join the online economy – a blueprint to inspire future projects in this space,” says Emanuel Salinas, World Bank Country Manager for Albania. “No one can afford to be left behind in the ongoing digital transformation.”
The initiative is part of broader ongoing World Bank engagement in Albania to help the country leverage the economic opportunities associated with digital trade in goods and services.
“Albania has recognized the importance of digital markets as an opportunity for economic development. We have mobilized a team from across the World Bank to support this effort, through this new initiative and others in the future,” says Christoph Ungerer, the World Bank task team leader for the Albania Digital Trade Project.
“Digital Jobs Albania” is a new World Bank initiative that will help women in Albania gain better access to online work opportunities and connect with the global economy. The initiative will provide intensive 3-month training...
The funds to be provided through the Swiss State Secretariat for Economic Affairs (SECO) will support the programme’s technical cooperation, research and consensus-building activities until 2024.
UNCTAD and Switzerland signed an agreement on 13 September.
“We sincerely thank Switzerland for the generous contribution,” said Isabelle Durant, deputy secretary-general of UNCTAD. “The financial support will enable us to scale up our efforts to foster more inclusive and sustainable development gains from e-commerce and the digital economy for people and businesses in developing countries.”
“Switzerland is proud to contribute to UNCTAD’s programme on e-commerce, which supports the establishment of favourable framework conditions for e-commerce in developing and least developed countries,” said Didier Chambovey, ambassador of the Swiss Permanent Mission to the World Trade Organization and the European Free Trade Association.
“As the COVID-19 pandemic revealed, a robust e-commerce ecosystem is needed to maintain trade flows and mitigate economic and social consequences in times of crisis, particularly in the most vulnerable countries.”
Spreading the benefits of the digital economy
The UNCTAD programme aims to reduce inequality, enable the benefits of digitalization to reach all people and ensure that no one is left behind in the evolving digital economy.
The contribution will finance at least three eTrade readiness assessments, which will provide a diagnostic of the state of e-commerce in the countries concerned, covering seven policy areas considered most relevant for e-commerce development. It will also build on a close collaboration with selected eTrade for all partners.
It scored highly across all four dimensions of the index, with 97% of the population using the internet (2019) and 98% of the population aged 15 and older having a bank account (2017).
It also ranked 7th in the world in terms of postal reliability according to the Universal Postal Union, and 5th among the countries included in the index for secure server density, a proxy for online stores.
The funds will support activities that can enable more countries to engage in and benefit from the evolving digital economy.
Switzerland has announced a contribution of $4.4 million (4 million Swiss francs) to UNCTAD’s <a href="https://unctad.org/topic/ecommerce-and-digital-economy" target="_blank"...