AVPN, the largest network of social investors in Asia, consists of over 600 diverse members spread across 33 markets
In their mission to enhance the flow and of financial, human, and intellectual capital in Asia and create an impact, they have come out with a knowledge paper in collaboration with The Social Investment Consultancy (TSIC). The paper, titled “Financing the Care Economy in the Global South: Investment Opportunities and Pathways,” outlines the need for channelling capital into the care economy.
The care economy refers to the sector encompassing activities related to caregiving, including both paid and unpaid care work that sustains the well-being and functioning of individuals and households. The segment urgent attention from all stakeholders.
This is because as Asia Pacific’s population ages, more people will be engaged in unpaid care work. Studies by BCG (Boston Consulting Group) have found that without additional assistance to enhance caregivers’ wellbeing, the labor market in region could see increased numbers of caregivers leaving the workforce, resulting in a $250 billion in GDP loss by 2035. Further, women and girls stand disproportionately burdened in this care crisis as they spend upto 10x more time on unpaid care work than men. Globally, they spend an average of 4.5 hours a day on domestic chores and care activities. The World Bank has estimated that India could grow up to 1% faster with more women in the labour force. To empower women economically, secure the labour market and ultimately boost the India’s GDP, collaborative action by policymakers, private sector players, and investors is crucial.
The AVPN knowledge paper provides insights for investors and policymakers in Asia and highlights the need for innovative care delivery models. In doing so, it advocates for collaborative efforts to invest in India’s care economy and drive sustainable development.
The paper highlights three pathways for investors to engage in the care economy:
· Investing in tech-enabled care businesses, focusing on accessibility and affordability for marginalized communities.
· Supporting carer-friendly enterprises.
· Integrating a care lens into existing investments to create impact, particularly for women and girls.
“Care economy presents vast and complex opportunities to create profound social and economic impact,” said Patricia Mathias, Director, Gender Platform, AVPN. “Empowering women economically will ensure a thriving and sustainable economy. To achieve this, we must embrace innovative delivery models, including market-driven and blended solutions that bring together the public and private sectors.”
“Investors are increasingly recognizing the potential, but the challenge lies in identifying and evaluating opportunities due to limited information and understanding about the sector and its business models,” Mathias continued. “Our paper addresses this information gap, providing valuable insights and recommendations to mobilize catalytic funds required to address the impending care crisis and promote gender equality in Asia and will also be significant for investors in India.”
The G20 EMPOWER meetings delved into the recommendations put forth by this knowledge paper. They recognized the substantial potential within the care economy and understood that investing in its fair development could not only boost the economy but also address a longstanding gap in integrating a gender perspective. By getting involved in the care economy, there is a chance for India to address the impending care crisis and create a better future for everyone.
To download the full paper, please visit https://avpn.asia/insights/financing-the-care-economy-in-the-global-south-investment-opportunities-and-pathways/.
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About AVPN:
AVPN is the largest network of social investors in Asia, comprising over 600 diverse members across 33 markets. Our mission is to increase the flow and effectiveness of financial, human, and intellectual capital in Asia by enabling members to channel resources towards impact. As an ecosystem builder, AVPN enables its members to connect, learn, act, and lead social impact efforts across key pillars while improving the effectiveness of deployed capital, bringing local field needs, regional expertise, and policy insights to the forefront.
