Smart Economics
Now that we face a slowdown in the Icelandic economy, everyone is on the lookout for new sources of economic growth. It is clear that Iceland is a prosperous country largely because of our abundant and renewable sources of energy. I wonder if we sometimes forget about another source of renewable energy that has contributed greatly to our economic growth and well being. I´m speaking about women. Women in Iceland participate in the workplace at a higher rate than women in any other country around the world. In fact, the female work participation is a key reason why Iceland has enjoyed economic growth and standard of living beyond most. Female work participation does not come at the cost of lower birthrates as Icelandic women give birth to roughly 2 children each. While most countries are facing serious problems with the aging of the population, Iceland enjoys a healthy demography. The female work participation and fertility, a special strength of Iceland, are a natural, sustainable source of energy which contributes greatly to our economy.
If Iceland wants to maintain its competitiveness and rank among the top countries in the world, it is important that we continue to utilize our female assets. We should encourage our women to create and build businesses. In many countries, women are now creating businesses at a higher rate than men. Research shows that new businesses created by women tend to live longer than the average new businesses and businesses with females in influential roles have lower default rates. A number of studies now confirm that businesses that enjoy the influence of women in top positions are experiencing healthier returns than those who don’t. Investing in women is simply smart economics.
