World Bank, DTI underscore key role of women in growth of businesses

The World Bank and the Department of Trade and Industry (DTI) have highlighted the crucial role played by women in the growth of businesses.

- By DERCO ROSAL and DEXTER BARRO II

The Washington-based multilateral lender said that aside from strengthening governance to build investors’ confidence in developing countries like the Philippines, these economies should also increase job opportunities for women as local branches of foreign companies often hire more women.

"FDI [foreign direct investment] can also help increase job opportunities for women: the domestic affiliates of multinational enterprises, for example, tend to have a higher share of female employees than domestic firms," the World Bank, the world's largest development bank, said in a report published June 17.

Such is a recommended policy that developing countries should adopt as FDI inflows to these economies dropped to their trough in almost two decades in 2023, the latest data available to the multilateral lender showed.

"In 2023, developing economies received just $435 billion in FDI-the lowest level since 2005," the World Bank reported. FDI flowing into developing countries during the year made up only 2.3 percent of their total economic output, nearly half the level seen during the 2008 peak.

As such, the World Bank suggested that governments of developing economies should maximize the positive impact of brick-and-mortar FDI on the economy.

Strengthening trade ties, improving governance, investing in skills and education, and expanding formal employment help countries; gain more from FDI, the report said!! Governments can also maximize the benefit of FDI by directing investments into industries that deliver the most economic and social benefits, it added.

Another recommendation from the lender was "redoubling efforts to attract" more investments.