Source: Emerging Markets
Women's participation in the labour force still lags men's by 12% even in developed economies. In the MENA region it can be up to 50%. That is a wasted resource - and best practice examples show countries and companies that tackle the problem outperform.

Seven years into the worst global financial crisis since the Great Depression, the recovery is still too tepid and too turbulent. And even after the crisis abates, we face grave challenges to growth, as a slower "new mediocre" sets in and economic disparities increase.

Given these challenges, we will need all the economic growth, dynamism and ingenuity we can get in the years ahead. Thankfully, a key part of the solution is staring us right in the face — unleashing the economic power of women. Bringing the world's largest excluded group into the fold.

Gender gaps in labour force participation exist worldwide, ranging from 12% in OECD economies to 50% in the Middle East and North Africa.

Another global reality: when women do participate, they tend to be stuck in low-paying, low-status and less secure jobs. Globally, women earn only three-quarters as much as men — this is true even with the same level of education and in the same occupation.

Women also tend to be locked out

of leadership positions, where gender seems to matter more than ability. Women make up only 5% of Fortune 500 CEOs. They account for only 24% of senior management positions around the world — these numbers are fairly consistent across Asia, Europe, Latin America and North America.

PREJUDICE DOESN'T PAY

The benefits of greater inclusion are clear — not just for women but for all of us. We know that eliminating gender gaps in labour force participation can lead to big jumps in income per capita. This is true everywhere in the world, but especially in lagging regions like the Middle East, North Africa and South Asia.

We also know from the business side that prejudice does not pay. Companies open to women do better than companies that are closed. Fortune 500 companies with the best records of promoting women have been shown to be 18% to 69% more profitable than the median firm in their area.

So excluding women simply makes no economic sense and including women can be a tremendous boon to the 21st century global economy.

I think there are three main ways to do this — changing economic policies, changing laws and institutions and changing attitudes and culture.

In terms of economic policies, countries can lift women by adopting more pro-female, pro-family approaches. Such policies include moving more from family to individual taxation; providing more affordable childcare and parental leave; and allowing for more flexible working arrangements.

ECONOMIC BENEFITS

We know these policies can work. We have the evidence. Sweden devotes a full 1% of GDP to childcare and pre-primary spending — more than most other countries. It also takes workplace flexibility very seriously. It is no coincidence that Sweden has one of the highest female participation rates in the world.

In Japan, which is growing older at a faster rate than anywhere else in the world, the government is working flat-out to level the playing field in the world of work. We think that these measures can really pay off, adding 0.25% to growth each year if implemented aggressively.

The benefit is clear: when we boost the participation of women, we boost the growth potential of a country.

The second major area affecting women's empowerment is law and institutions. In an IMF study spanning 100 countries, the preliminary findings are that gender gaps are lower when men and women are treated equally under the law, especially in terms of inheritance, property, and economic opportunity.

Think about Saudi Arabia, where some of the main obstacles to women's participation are legal and institutional — restrictions on travel and participation in specific sectors of the economy, unequal property and inheritance rights. Encouragingly, Saudi Arabia has started to move forward in some areas, but it could still go further.

Of course, changing policy cannot fix everything. Changing laws and institutions cannot fix everything. We also need to change attitudes away from a male-dominated culture, to make it more open and receptive to the great contributions offered by women in society in general, and in business in particular.

This means knocking down outdated obstacles that hold women back. It means taking a "leap of faith" — in hiring women, promoting women, investing in women. And it means having recourse to strong mentors and role models who can reach out and pull up women with them.

We know what it takes to reach a more gender-inclusive global economy. We know the benefit it yields. So let's do it.