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Sustainable Growth the Nordic Way
WEB MAGAZINE - November 2017

Gender quality is our best investment

In a debate titled ‘Parental leave, a key to prosperity – and other true stories’ at the UN headquarters in New York in September, it emerged that more and more countries want to know how investments in gender equality can generate economic growth. However, many governments are still hesitant about the costs. Global companies such as Spotify that offer their employees paid parental leave are serving as important drivers of change.

“It’s not mobile phones, cars, or oil that have been the primary generator of growth in the Nordic region. Gender equality is our most valuable investment,” said Børge Brende, Norwegian Minister of Foreign Affairs, when he opened the debate during the UN high-level week.
He was particularly referring to the infrastructure of paid parental leave and good universal childcare and elderly care that the Nordic countries introduced in the 1970s and 1980s. These investments have increased the proportion of women working from around 45 percent to around 75 percent.

International demand
There is currently considerable international interest in how the Nordic region has achieved such good results on gender equality in the labour market, not least because gender equality is one of the UN’s 17 sustainable development goals.
The debate at the UN came to focus primarily on the societal and commercial aspects of gender equality, and how policy can interact with business to bring about change.

Phumzile Mlambo-Ngcuka, head of the UN’s gender equality organisation, UN Women, said that more globally important macroeconomic stakeholders, such as the World Bank and the World Economic Forum, are now talking about the economic significance of paid parental leave for both mothers and fathers. Many countries are facing demographic challenges and need to increase fertility.

Greater need to reach out to decision makers
“It’s encouraging, we’re going somewhere, but the information is not reaching enough policymakers. Public policies must create an enabling environment for employers,” Phumzile Mlambo-Ngcuka said

Kristin Skogen Lund, head of the Confederation of Norwegian Enterprise (NHO), agreed that business needs regulation through policies regarding the right to parental leave and childcare.

“It can seem a paradox that a confederation of enterprise wants to promote people being away from work, but this is really one of our best investments. The value of Norway’s high proportion of women in employment exceeds our oil profits,” she said

Paternity leave is key
The NHO believes that increasing the portion of parental leave that may only be taken by fathers is one of the most important measures for increasing the proportion of women in management positions in Norway.

“Only when men experience what it’s like to be the sole caretaker for an extended period can patterns change. This will change the careers of both men and women,”said Skogen Lund adding that it will take a long time for norms to change music giant Spotify, which employs people in the US, Europe, Brazil, Japan, Singapore, and Australia, attracted a great deal of attention when, in 2015, the company introduced the right to six months of paid parental leave for all employees.

Spotify creating a new culture
Isa Notermans, global head of diversity and inclusion at Spotify, explained that this benefit has helped the company increase its proportion of women employees from 22 percent to 46 percent.
However, she also explained the difficulty of getting employees to use this benefit.

“A lot of women and men feel resistant to taking the full six months. They are concerned about what would happen to their careers if they took six months off, so we’re creating a culture where it’s acceptable. This corporate culture is at odds with the more individualistic American culture.”

Return on investments in health and social care
The Secretary General of the global union ITUC, Sharan Burrow, argued that if many global companies followed in the footsteps of Spotify, this could encourage governments that are currently reluctant to invest in an infrastructure of parental leave and subsidised childcare and elderly care.

“Let’s get the 100 global companies to say, ‘It doesn’t matter if you’re working in the US or Nigeria, we will follow fundamental rights’ – and then we could start to change things,” she said.
Burrow feels that governments really have no reason to hesitate.
“If you want women in work – and we do – you must invest in care. Two percent of investment in care in any economy over five years will actually generate six percent growth in employment,” she argued.

Relevance of Nordic experiences
The Nordic labour market model, where investments in the work-life balance have paved the way for shared care responsibilities, is unique.

However, the Secretary General of the Nordic Council of Ministers, Dagfinn Høybråten, argues that other countries, regardless of their stage of development, could benefit from Nordic experiences.

“I have no doubt that our experiences are relevant to other countries. Underlying the Nordic model is the concept of a social contract: you contribute, you pay taxes, and then you have some basic rights. The social contract can be established on different levels according to the economic capacity. Although many developing countries have higher growth than our region, they’re facing big challenges with inequalities and the distribution of that growth,” the Secretary General said.

He talked about the international Nordic initiative The Nordic Gender Effect, set up to meet the considerable international demand for Nordic experiences regarding the region’s gender equality policies.

“We’re keen to share our experiences to create a knowledge hub that others can then draw from. For us, gender equality has not only been the right thing to do – because it’s about rights – but it has also been the smart thing to do.”

Photos: Pontus Höök/