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Women's Economic Opportunity Index - Economist Intelligence Unit

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Appendix IWomen’s economic opportunityA new global index and rankingLiteracy Rate, womenAn estimated 776m adults—or 16% of the world’s adult population—lack basic literacy skills. About twothirdsof these are women. Gender disparities in adult literacy are widespread, especially in the countrieswith the lowest literacy rates. Gender and poverty often interact: in The Gambia, literacy rates rangedfrom 12% among extremely poor women to 53% for richer men. In seven Sub-Saharan African countrieswith particularly low adult literacy rates, the literacy gap between the poorest and wealthiest householdsis more than 40 percentage points. In India, literacy levels are lowest in the poorest states. Literacyrates are almost always lower in rural communities and regions than in urban ones. In Ethiopia, regionaldisparities in literacy rates range from 83% in the Addis Ababa region to 25% in the rural Amhara region. 94The ability to read and write has direct impact on the amount of information that a person can access ortransmit for any purpose. The ability to absorb, manipulate and disseminate written information is crucialfor anyone seeking to maximise the economic returns of their chosen activity, or even to be able to chooseactivities in the first place. A large portion of jobs in the formal sector—including virtually all those abovethe most basic level of responsibility—require workers to be proficient in reading and writing. 95The hindrance of illiteracy also bears upon entrepreneurs, especially those wishing to grow beyond themost basic small and informal businesses. For example, as in many countries, summaries of new businessregulations in Cambodia are only offered to the public through newspapers or the Internet. Those whocannot keep abreast of quickly changing laws that apply to their businesses cannot adequately competewith those who are able to do so. 96Further ReadingEducation for All - Global Monitoring Report: Literacy for Life, UNESCO Publishing: Paris, 2006.94. Education For All - GlobalMonitoring Report, UNESCO,2009.95. International LabourOrganisation website: http://www.ilo.org).96. Promoting Gender EquitableOpportunities in AgriculturalValue Chains, US Agency forInternational Developmenthandbook, 2009.97. “Management Training inSMEs”, OECD Working Party onSMEs, OECD: Paris, 2002.98. D S Karlan and V Martin,“Teaching Entrepreneurship:Impact of Business Trainingon Microfinance Clients andInstitutions”, Yale University<strong>Economic</strong> Growth CentreDiscussion Paper No. 941; Centrefor Global Development WorkingPaper No. 108, July 2006.Existence of SME Support/Development TrainingBoth developed and developing countries recognise the benefit of business development services andentrepreneurship training for SMEs. For example, when a 2002 OECD study found that there was “apositive correlation between the degree of management training and the bottom-line performance of anSME”, the Singapore government promptly began looking into ways to provide management training toSMEs. 97Entrepreneurship training appears to work for smaller enterprises in less developed business marketsas well. A randomised control trial conducted in Peru added business training to a group lendingprogramme for female microentrepreneurs and showed positive results. 98 The training led to improvedbusiness results for the treatment group of an average of 9% more sales a month. The treatment groupimproved its business knowledge and practices, such as keeping records of business activities andimplementing innovations. The programme also improved repayment and client retention rates forthe microfinance institution. For example, 78% of clients in the control group already had a perfectrepayment rate, but an even higher percentage of the treatment group, 81%, were able to maintain aperfect repayment record.Evaluations of several ILO/Start and Improve Your Business (SIYB) projects have shown positive results119 <strong>Economist</strong> <strong>Intelligence</strong> <strong>Unit</strong> 2010

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