Women Are Key to Emerging Market Growth: Koch

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March 18 (Bloomberg) -- Katie Koch of Goldman Sachs Asset Management discusses the role of women in emerging market growth on Bloomberg Television’s “On The Move.”

Reports.

This remise middle bit about something from 20 years ago.

You propose to close a credit cap.

You need to give more credit to women owned as&e s&e's. we can elevate the performance of those nature and -- of those nations if we support women.

Some of the graphics to find her fascinating.

The way it will pan out in the next 15-20 years is there will be less of a gender gap.

There's currently a very big gender gap in employment or do want to close that gap.

What is the most powerful way we can go about doing that?

We found that supporting female workers in small to medium enterprises was important.

We identify the credit cap, which we found to be $300 billion.

We did some work to say that what if we had -- gave women access to the capital it very much needed.

How much could that contribute to growth.

We found that income per capita be raised by 12% across the developing world if we closed that credit cap.

Women take less risk, they're more conscious with the money, or because the spending power?

The reason they don't have capital is because her lots of legal and regulatory barriers that access -- to prevent them from accessing capital.

90% of them had at least one legal gap.

The other issue of course is that banks don't have a lot of credit history on women so they are reticent to make those loans.

What do think about the power of the purse deco even if they don't have access to credit loans, they will choose and spend the money for the household.

We found -- -- they will invest back into their families.

They will buy things like children's close and pay for school fees.

That is a double dividend.

That means growth will be even more impacted than we think.

I which is highlighted here that we were talking about emerging markets before.

These are countries that are growing below trend.

They literally can't afford to perpetuate the barriers that face female entrepreneurs.

This is for banks but also for countries and governments.

Absolutely.

We will solve this is not going to be any single institution, it will be corporation across a not-for-profit sector, the business sector, and of course government will play an influential role as well.

Thank you katie for coming on.

The pulse is coming up

This text has been automatically generated. It may not be 100% accurate.

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