Setting the scene
Who leads the public sector is important. Its leaders make decisions that affect millions of people every day. Public sector leaders — politicians, civil servants and board members — are responsible for the general welfare of their citizens and give protection to the most vulnerable members of society.
On a local level, elected and paid officials oversee public services that benefit everyone, from local schools, transportation systems and leisure facilities, to the day-to-day business of living, dealing with the nitty-gritty of garbage collection, recycling and parking permits. And, importantly, public sector leaders in the 21st century are dealing with complex, long-term, systemic issues such as the economy, urbanization, globalization, aging populations, health care and climate change. Many of these issues demand new solutions to leave countries and their citizens better placed for the future.
From a business perspective, too, the issue of diversity is of fundamental performance. As countries around the world jostle for position in a world that is both competitive and shrinking, economic growth requires the efficient allocation of resources. But with half of the world’s population prevented from making a full contribution, economic opportunities around the world continue to be restricted.
Diversity of thought, experience and perspective is needed to respond to these challenges. Unfortunately, women’s access to the board room remains alarmingly limited, even in developed markets. And in government, women hold just 20% of cabinet positions around the world and are twice as likely to hold a social portfolio as an economic one, according to our research. Hillary Rodham Clinton, the former US Secretary of State, alluded to these challenges at the launch of the Equal Futures Partnership in September 2012.
“We know that when women participate fully in their governments and economies, they and their families benefit, but so do their communities, their countries, and even the world as a whole,” she told her audience. “In democracies, all people — women and men — have an equal voice and an equal vote and an equal chance to run for office and to serve their fellow citizens. In thriving economies, all people have an equal opportunity to start a business, own property, earn a fair wage, and support their families. And in stable and peaceful societies, all people’s human rights and fundamental freedoms are respected equally.”
Her comments have been echoed by Ruth Shaw, winner of the 2012 Public Service Award at the UK First Women Awards. “There is clearly a business case for equality,” she said. “Organizations can only succeed and grow if the best talent is not only employed, but supported and developed. As long as 51% of the population is not represented at senior levels then we are missing out. And of course it is morally and socially right to have gender equality. It is fair.”
Our survey results
Women make up 51% of the population. But even in the country ranked number one in our Index, Canada, they account for only 45% of its public sector leaders. In Japan, the world’s third-largest economy, women account for 2.5% of public sector leaders. In India, the world’s largest democracy, only 7.7% of public sector leaders are female. In Saudi Arabia, the figure is zero.
The data we have collected here tells only part of a story. The figures are from a range of different sources, in different countries, with different public sector structures: making direct comparisons is often difficult. However, they paint a broad picture that certainly deserves examination and interpretation.
Newly emerging economies
Brazil also scores highly, ranking in fifth place of the Index, with women seemingly sharing equally in country’s rapid development. Since 2010 it has had a female president, Dilma Rousseff, and 10 of her 39 ministers are women, a record for Brazil. There are also women in high-profile private sector roles, including Maria das Graças Foster, CEO of Petrobras, GE Brazil CEO Adriana Machado and Standard & Poor’s managing director Regina Nunes. Luiza Bairros, Brazil’s minister for policies in racial equality promotion, believes that progress has been made in her country
but that the picture is complicated and issues of gender equality must be considered in a the context of a broader diversity agenda with racism at its core:
“ Brazilian hierarchy puts white men at the very top, followed by white women, black men and then black women at the bottom. This shows an overlap of the presence of racism, rather than a gender issue per se. Gender issues do exist, but for a black woman the racial dimension will always represent more than gender. The racial issue makes gender discrimination much more complex for black women and, therefore, much harder to be overcome.”
Newly emerging economies — Argentina, Mexico and Turkey — form a second tier in our Index. For example, Argentina has a quota requiring one-third of parliament to be women. This quota has already been exceeded, so perhaps there is something to learn from South America. Turkey, too, is making important strides forward.
“Over the last decade Turkey owes its steady growth and development, in other words, its success in economic, social, political and cultural fields, mostly to both public and private organizations,” says the country’s Family and Social Policy Minister, Fatma Sahin.
“This success belongs to both, women and men. In the past we weren’t listening to each other, we didn’t have the ability to empathize or we weren’t aware of this ability. Now, though, I listen to my friends intently, and they listen to us.” Russia, however, is performing less well. Although it has the highest number of women working in the public sector — 71% — only 13% of leadership roles are held by women. Women ministers, members of parliament and board members are thin on the ground. Ernst & Young’s 2012 Russia attractiveness survey revealed that despite the global economic uncertainty, the country’s attractiveness as an investment destination has grown by eight percentage points over 2011, the largest increase of any region. However, the report also found that concerns remain about Russia’s operating environment, in particular the country’s political, legislative and administrative environment. Greater representation of women at senior levels in public administration would surely be one way of allaying some of these fears.
And although rapid-growth markets in Asia represent the fastest-growing economic region in the world, with annual growth forecast at more than 6% a year, its countries are performing less well across our Index indicators. Economies in the region, including China and South Korea, have become export powerhouses and home to some of the world’s largest companies, but this doesn’t mean that its governments and businesses should neglect the issue of diversity. Effective communication and an appreciation for diversity are increasingly important a organizations become more global. As more Asian companies become international players in their own right, their expansion into new markets must be underpinned by a single company mission that connects all levels and regions.
