Christine Lagarde backs Shinzo Abe’s plan for women to lift Japan economy
IMF chief agrees on boosting women in workforce to lift economy, but says Japan could do more
IMF chief Christine Lagarde yesterday backed Tokyo's efforts to boost the Japanese economy by increasing women's participation in the workforce, and called for even more action, including loosening immigration rules.
The comments came at a three-day gathering on women in the labour market, hosted by Japanese Prime Minister Shinzo Abe, who has pledged to raise the number of women in the country's corporate and political ranks.
"The global economy is not making use of great potential that is available. And that needs to change, not just for women's sake, but for economies' sake," Lagarde, head of the International Monetary Fund, told the Tokyo meeting.
"What about Japan? Here, we have shown through our study that gradually raising the female labour force to the average level of the G7 [group of the most developed economies] could raise income per capita by 4 per cent, permanently.
"To target something even higher, which is the level of northern Europe, then that would give an additional 4 per cent on the top."
Abe wants women to occupy 30 per cent of senior positions by 2020, an ambitious jump from the current 11 per cent, one of the lowest among wealthy nations.
The Japanese leader, who swept to power in late 2012 on promises to revive to the long-tepid economy, recently reshuffled his cabinet. More than a quarter of the posts are now filled by women.
Dozens of Japan's biggest firms, including Toyota, Panasonic and All Nippon Airways, recently announced targets for boosting the number of executive women. But the task is a daunting one in a country where sexist attitudes remain prevalent and men dominate politics and business.
Abe's feminist credentials were tarnished this summer when a member of his ruling Liberal Democratic Party (LDP) admitted he hurled sexist taunts at a Tokyo assemblywoman during a council debate on motherhood.
Yesterday, Abe acknowledged Japan's deeply entrenched gender roles, saying that "the most difficult part may be transforming this division of roles based on gender, something that is firmly ingrained within us".
Abe's wife, Akie, US ambassador to Japan Caroline Kennedy, and Cherie Blair, wife of former British prime minister Tony Blair, also attended the conference.
Lagarde, who is embroiled in a graft scandal dating back to when she was a French finance minister, said she backed Abe's targets for women in senior positions, despite having doubts about such quotas earlier in her career.
"I thought women should be included on their merits and on their basis of the performance, but I changed my mind," she said. "I very strongly and very firmly believe that quotas or targets, however we want to call them ... are a necessity."
Long working hours, boozy after-work sessions with the boss, and insufficient child-care facilities are also among the reasons many working Japanese women opt to stay at home or give up hopes of promotion after having children.
Luring women back into work would come only with key reforms including better child-care options and care services for elderly parents, observers said.
"While women can save Japan, they need help from other structural reforms," Lagarde said.
"One option is skilled immigrants. Everybody would get the jobs they need. Everybody would get the care they need. And Japan could shape its own demographic destiny."
Tokyo has moved little on loosening strict limits on foreign workers despite years of calls to crack open the borders to more immigrants.