New Delhi, October 05, 2023: AVPN, Asia’s largest network of social investors, and The Social Investment Consultancy (TSIC) have collaborated to produce a knowledge paper titled 'Financing the Care Economy in the Global South: Investment Opportunities and Pathways.' The International Development Research Centre (IDRC) has provided support for this paper, which outlines investment opportunities and challenges within the care economy.
The care economy is a critical concern, with Asia-Pacific countries facing potential GDP losses of $250 billion by 2035, according to a report by Boston Consulting Group (BCG). This is driven by demographic trends, including an aging population, which will lead to more individuals engaging in unpaid care work. Without additional support to enhance their well-being and capacity to care for dependents, Asia-Pacific's labor market could see an exodus of caregivers. The World Bank estimates that India could experience up to 1% faster growth with greater female labour force participation. However, women and girls currently shoulder a disproportionate burden of unpaid care work, spending two to ten times more time on domestic chores and care activities than men. Globally, they dedicate an average of 4.5 hours a day to these responsibilities. To empower women economically and boost GDP by stabilizing the labor market, Asia requires an annual investment of US$5.4 trillion by 2035, as estimated by the International Labour Organisation. Policymakers, private sector players, and investors must collaborate to make this possible.
"Care economy presents vast and complex opportunities to create profound social and economic impact. Empowering women economically will ensure a thriving and sustainable economy. To achieve this, we must embrace innovative delivery models, including market-driven and blended solutions that bring together the public and private sectors," said Patricia Mathias, Director, Gender Platform, AVPN. "Investors are increasingly recognizing the potential, but the challenge lies in identifying and evaluating opportunities due to limited information and understanding about the sector and its business models. Our paper addresses this information gap, providing valuable insights and recommendations to mobilise catalytic funds required to address the impending care crisis and promote gender equality in Asia and will also be significant for investors in India."
The AVPN knowledge paper offers insights for Asian investors and policymakers to address the looming care crisis and emphasizes the necessity for innovative care delivery models. AVPN advocates for collaborative investments in India's care economy to drive sustainable development. The paper highlights three investment pathways: investing in tech-enabled care businesses with a focus on accessibility and affordability for marginalized communities, supporting carer-friendly enterprises, and integrating a care perspective into existing investments to create impact, particularly for women and girls.The recommendations from this paper were discussed during G20 EMPOWER meetings, emphasizing the potential of the care economy. Investing in its equitable growth could have a positive ripple effect and enhance overall impact.
To download the full paper, please visit https://avpn.asia/insights/financing-the-care-economy-in-the-global-south-investment-opportunities-and-pathways/.
