(достапно на англиски јазик)

Dear organizers, fellow women leaders, dear governor Radovic, minister Bozinovska, ladies and gentleman,

It is my pleasure and honor to be part of this event dedicated to promotion of female leadership.

Let me start by quoting Safra Catz, the CEO of Oracle, who said “The most significant barrier to female leadership is the actual lack of females in leadership.” This statement resonates deeply with us today as we gather to discuss the vital importance of empowering women in business and breaking down the glass ceiling that holds them back.

Inclusiveness is a concept that has come to be widely recognized as vital, particularly in economics. The inclusive growth approach aims to ensure that the benefits of prosperity are shared equitably across all segments of society, regardless of gender or background. Where diversity, equity, and inclusion efforts are longer lasting, the returns are evident through increased productivity, adaptability to change, resilience and stronger innovation outcomes. Gender parity strivings have come to be seen as a competitive advantage in an increasingly tough macroeconomic and business environment.

Unfortunately, despite this acknowledgment, significant gender gaps still remain, highlighting the need for more proactive policy action on a global level. Let me reflect on some compelling data that illustrate the current global landscape of gender disparities.

The latest Global Gender Gap Report (2024), reveals a large gender gap of around 32% globally, meaning that about 1/3 of the disparities between men and women remain to be closed in the future. Zooming in, one of the largest gaps pertains to economic participation and opportunity of women, which is estimated at around 40%.  And the estimated time to close this gap with the current pace of progress is a staggering 152 years (-17 years from 2023, but +52 years from the pre-pandemic period). In the Western Balkan region[1], the economic gap remains also wide (31%), although somewhat below the global average, ranging from 22% in Albania to 38% in Bosnia and Herzegovina (MKD-37%).

The latest data from the Global quarterly CEO index[2] are also appalling and confirm the quote I shared at the beginning of my speech. Covering the publicly listed companies on a global level, the index shows that women remain vastly underrepresented in the CEO role. Of the 51 CEOs appointed in Q2 this year, only five were women, and at this rate of change, it is estimated to take 78 years to achieve global gender parity in this aspect. On a positive note though, the percentage of women holding CEO positions globally grew by 7.7% in the last 6 years (from Q1 2018 to Q2 2024), with nearly all companies seeing net increases in women leaders. In the WB (Eurostat data), only around 1/3 (31.7%) of senior management positions (CEOs) in the largest publicly listed companies were held by women in 2023 (lowest in BIH – 23%, highest in MNE – 38.2%, MKD-31.7%). Although interestingly, this share is higher than the EU average (of 22.2%).

Not only can higher economic inclusion benefit female empowerment, but it can also bring numerous advantages to the economy as a whole. International financial institutions have already acknowledged the economic gains that could be reaped from enhanced female participation in labor markets. The World Bank estimates that closing the gender gap in employment and entrepreneurship could increase global GDP per capita by more than 20%[3], while the IMF has identified addressing the misallocation of women's talents and abilities as a key strategy for enhancing productivity[4]. Unfortunately, data shows that women remain significantly less active than men in today’s labor markets globally, with the global gender gap in labor force participation being around 35%. What is even more important is that progress to parity is at a lethargic pace.

And the complex macroeconomic environment in recent years has only aggravated the situation, taking its toll on the convergence towards gender equality. It is evident that the recent crises had a disproportionate impact on women compared to men. Data points out that in the last couple of years, 95 million women left the labor market, 90% of them permanently, while the labor force participation gap climbed to the highest level on record in 2022.

The developments in the Western Balkan region are similar. The recent crisis hit the sectors with higher involvement of women (such as services sectors and the informal economy) and adversely affected their activity and the gap: the participation rate decreased to 51%, with a stronger decline among women (of 1.6 p.p. vs. 1.1 p.p. for men). Currently, the involvement of women in economic activities remains low and below the world average. The average participation rate of women is 45%, significantly below the participation rate of men (64%). Therefore, addressing this huge gap of around 20 p.p. represents a significant opportunity, as human capital is well recognized as one of the key long-term determinants of growth. In fact, World Bank estimates indicate that closing this gap could significantly boost GDP by as much as 18% in the WB region.

Moreover, higher women’s representation in the workforce could also increase the resilience of economies during future economic hardships. This is a very relevant point now that the global economy is hesitantly recovering from the multiple shocks while being faced with new geopolitical and climate challenges. It is evident that the growth of globalization has had a positive effect on female economic inclusion. We observe that in more developed economies, companies involved in international trade and GVC employ more women. For instance, women in exporting companies make up a third of the workforce compared to less than a quarter in non-exporting companies[5]. Thus, the reversal of this process can be very costly for gender parity.

Climate change could also exacerbate gender inequality, affecting women disproportionately across the globe, given that they are overrepresented in employment in climate-vulnerable sectors.

These developments could lead to lower employment and lower income of women, which may negatively affect their already impaired access to the financial system. For instance, if we look into the gender profile of the accounts owned in the WB region, it is clear that men prevail as owners of accounts (75% vs. 67%). In addition, around 60% of all borrowers from commercial banks are men.

Access to finance is a crucial determinant of fostering female entrepreneurship, which remains significantly underdeveloped in the region compared to more advanced economies. Entrepreneurship is by and large linked to the role of SMEs, which employ more than 2/3 of the labor force and generate around half of the global GDP. Unfortunately, only around 1/3 of formally registered companies have female ownership globally, while in the WB region, the share is even less (around 20%). Therefore, utilizing this still untapped potential of female entrepreneurs could boost potential growth significantly, with some estimates pointing to 5-6 trillion US Dollars in economic gain.

What can we as central banks do in this regard? Clearly, most of the actions needed go beyond central banks remit. Yet, we can provide a meaningful contribution. Given the findings of the OECD Survey on financial literacy gender gap in the region, financial education of women (and especially their digital skills) is one avenue. Another avenue is provision of gender disaggregated data which is key in identifying disparities and calibrating policies. IFIs can play a catalytic role in this segment. We already concluded a Memorandum with EBRD to lead a project aimed at promoting female entrepreneurship. Furthermore, although imposing quotas is not our first choice, still given that women participate with only one quarter in management boards of the banks, we opted for introducing the European Women on Boards Directive.

Last but not least, we believe we should lead by example. Two years in a row, our central bank has been ranked number one in the world according to the female participation in senior management positions, which reached 70%. Needless to say, gender is not the guiding promotion principle, we provide equal opportunities. But when it comes to female, equal opportunities means taking into consideration some specific aspects, such as the motherhood. Surveys point that about 43% of women globally do not return to work after maternity leave. And being a mother of three, I fully understand this phenomenon.

Now, let me conclude. Multidimensional obstacles act as a glass ceiling that holds women back from reaching their full potential. To break the ceiling, a holistic approach is essential - one that encompasses reforms across institutional, regulatory, educational, and even traditional norms. As Claudia Goldin, a Nobel prize winner, said „There is no one simple fix, but by finally understanding the problem and calling it by the right name, we will be able to pave a better route forward.“

Thank you.