Distinguish between 'care economy' and 'monetized economy'. How can care economy be brought into monetized economy through women empowerment?

Q12. Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into monetized economy through women empowerment? (15m) Economy

Introduction

The ‘care economy’ encompasses unpaid and informal caregiving work, often performed by women within households, while the ‘monetized economy’ involves formal, paid economic activities.

Difference between Care Economy and Monetised Economy

	Care Economy	Monetized Economy
Nature of Transactions	Focuses on providing services related to healthcare, education, and caregiving, often involving unpaid work like family caregiving. Emphasises care over profit. Example: housewife, nursing etc	Primarily revolves around buying and selling goods and services with money as the medium of exchange. Prime Emphasis is over profit. Example: retails, e-commerce etc
Value Measurement	Value is measured in terms of the well-being and quality of life it provides. Not primarily driven by monetary transactions.	Value is measured in terms of currency, making it easy to compare prices. Transactions are driven by profit and market forces.
Labor Force Participation	Involves a significant portion of unpaid caregivers and healthcare professionals. Involves a mix of paid professionals (e.g., nurses, caregivers) and unpaid caregivers (e.g., family members).	Comprises formal employment sectors, where workers are compensated monetarily. Mostly paid workers Example: India’s Information Technology (IT) sector employs millions in formal, salaried positions.
Contribution in GDP	Mostly unaccounted	Mostly accounted

Integrating the Care Economy into the Monetized Economy through Women Empowerment:

Empowering women within the care economy involves recognizing, valuing, and integrating the often unpaid and underappreciated caregiving roles they play into the formal, monetized sectors of the economy. This can be achieved through:

Skill Development Programs: Launch skill development initiatives focused on healthcare, elderly care, and early childhood education to empower women with marketable skills.
- - Example: The Indian government’s Skill India program offers training in healthcare and caregiving professions.

Income generating activities through Self Help Groups

- Example: Kudumbashree Programme in Kerala
Entrepreneurship Opportunities: Encourage women to start small businesses related to the care economy, such as setting up daycare centres, nursing services, or home healthcare agencies.

Example: “Nari Shakti” grants by the Indian government support women entrepreneurs in various sectors.

Flexible Work Arrangements: Promote flexible work policies that allow women to balance caregiving responsibilities with formal employment.

Example: Companies offering work-from-home options, aiding women’s participation.

Equal Pay and Fair Recognition: Advocate for equal pay for equal work to recognize the contributions of women in caregiving roles, both paid and unpaid.

Example: The Equal Remuneration Act in India mandates equal pay for men and women.

Affordable Childcare Services: Develop affordable, government-subsidised childcare centres to relieve women from caregiving burdens and enable their participation in the workforce.

Example: The Integrated Child Development Services (ICDS) program in India provides early childhood care and nutrition support.

Supportive Government Policies: Implement gender-inclusive policies, such as maternity leave, parental leave, and anti-discrimination measures, to enhance women’s economic participation.

Example: The Maternity Benefit (Amendment) Act in India extends paid maternity leave to 26 weeks.

By including the unpaid domestic work and caregiving in GDP calculations, the contribution of women will get due recognition. Such an inclusion of care giving activities in GDP calculations will improve the economic status of women and help their empowerment.

Conclusion:

By empowering women through education, entrepreneurship, and policy support, India can successfully bring the care economy into the monetized economy. This not only advances gender equality but also boosts economic growth by leveraging the significant caregiving contributions of women.

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