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MJF-CPD for inclusion in national accounting

FE Report | Monday, 27 October 2014



A research study has suggested inclusion of the value of the unaccounted for unpaid household work of women in national accounting and reflect the same in the country's gross domestic product (GDP).
The value of the unpaid work, according to the study, titled, 'Estimating Women's Contribution to the Economy: The case of Bangladesh' is equivalent to 87.2 per cent of GDP of the last fiscal.
Women both in villages and cities work three times more than men while the amount of women's unpaid works is equivalent to a maximum of US $151.72 billion at current market prices, the study revealed.
And the value of unpaid works by women is 2.5 to 2.9 times higher compared to income received by the women from paid services, the study showed.
It also pointed out that wage discrimination is one of the key reasons behind the lower contribution of women in the national economy.  
The study, commissioned by the Manusher Jonne Foundation (MJF), was conducted by the private think tank Centre for Policy Dialogue (CPD).
The research findings were published last Saturday (October 25) at a function at a city hotel.
The study, on the basis of replacement cost method (shadow wage for similar work), estimates the value of women's unpaid household works at about 76.8 per cent of the GDP of financial year 2013-14 (FY'14).
On the other hand, according to the willingness to accept (outside her own household) method, the corresponding estimate was equivalent to 87.2 per cent of GDP or $151.72 billion (considering the GDP size of $174 billion in FY'14 in current market price).
The research study also revealed that on an average, a female person works about 7.7 hours on non-SNA (UN System of National Accounts) activities on a typical day; in contrast a male person works about 2.5 hours.
The study also showed the time spent by a female person (aged 15 years and above) on unpaid activities is about three times higher than that of a male person.
A female member of a household undertakes around 12.1 unpaid chores daily while a male does only 2.7 chores.
"This pattern is similar in both rural and urban areas," the study said.
"The government should undertake policy reforms towards changing the estimation practice of SNA so that women's unaccounted for activities are reflected in the GDP," it said.
  "In doing so the government can form a committee consisting of economists, statisticians, gender specialists, advocacy groups and relevant stakeholders who can give concrete input for developing a methodology to include women's unaccounted contribution in the GDP" the report suggested.
The government should undertake programmes which may contribute in decreasing the household workload of women, it said.
"Increased access to drinking water, natural gas for cooking and setting up of day care centres for children can reduce the workload and time of women and this in turn can help them either to be engaged in the formal economy and make their contribution to economy more visible or to have their own personal time" the study said it its recommendation.
The study also advocated for taking legal measures for eliminating wage discriminations against women in all sectors.
"One of the reasons for lower contribution in the national economy by women is due to lower wages of women. This will also make women's economic condition more appropriately measurable," the report suggested.

tonmoy.wardad@gmail.com