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UPSC GS Paper – 3: Q12. Distinguish between ‘care economy’ and ‘monetized economy’. How can the care economy be brought into monetized economy through women empowerment?

Gaurav Soni September 30, 2023 04:13 7272 0

Distinguish between care economy and monetized economy and explore how women empowerment can integrate care into the monetized economy.

UPSC GS Paper – 3: Q12. Distinguish between ‘care economy’ and ‘monetized economy’. How can the care economy be brought into monetized economy through women empowerment?

Q12. Distinguish between ‘care economy’ and ‘monetized economy’. How can the care economy be brought into monetized economy through women empowerment?

How to approach the question

Introduction

●      Write about ‘care economy’ and ‘monetized economy’ briefly

Body

●      Write differences between ‘care economy’ and ‘monetized economy’

●      Write how the care economy can be brought into monetized economy through women empowerment

Conclusion

●      Give appropriate conclusion in this regard

Introduction

The ‘care economy’ and the ‘monetized economy’ are two separate yet interrelated aspects of the broader economic system. While the monetized economy involves activities that are directly paid for and measured in GDP, the care economy involves unpaid or underpaid work, often performed by women, that is crucial for the well-being of families and communities. According to the ILO, the value of unpaid care work (monetary value equivalent to the minimum wage) would be 0.4 percent of the GDP for men and 3.1 percent of the GDP for the unpaid work done by women

Body

Differences Between ‘Care Economy’ and ‘Monetized Economy’

Aspect Care Economy Monetized Economy
Nature of Work The work in the care economy often involves unpaid tasks such as childcare, eldercare, and household chores. These activities are essential for the well-being of families and communities but are usually not compensated. In the monetized economy, work revolves around the production of goods and services that are exchanged for money. These include jobs in sectors like manufacturing, services, and technology.
Recognition Work in the care economy is not officially accounted for in national GDP statistics, rendering it “invisible” despite its importance. Jobs in the monetized economy contribute directly to GDP and other economic indicators. These roles are officially recognized as ‘work’ in economic reports.
Gender Participation The care economy is predominantly female-driven, with women disproportionately responsible for caregiving and housework. The monetized economy, although still skewed, has a more balanced gender distribution across different sectors and roles.
Skill Level The care economy often requires emotional labour, patience, and multitasking, skills that are generally not certified or formally taught. The monetized economy frequently requires specialized skills and qualifications that are recognized through formal education and certification.
Benefits Emotional and social benefits may accrue from work in the care economy, but these activities do not offer financial compensation. Employment in the monetized economy comes with financial benefits such as salaries, bonuses, and opportunities for wealth accumulation.
Economic Value The economic value of the care economy is largely unmonetized and hence invisible. This often leads to a lack of policy focus and investment in this area. The value created in the monetized economy is tangibly measured and therefore easier to assess, manage, and invest in.
Taxation Activities in the care economy are not subject to taxation since no formal income is generated from these services. Income and profits generated in the monetized economy are subject to various forms of taxation, contributing to public finances.
Stability Tasks in the care economy tend to be long-term and consistent, often stretching over many years, such as caring for a child or elderly parent. Jobs in the monetized economy can be temporary, seasonal, or contractual, often lacking the long-term stability found in care work.
Hours The care economy often operates on a flexible but demanding schedule. Caregiving responsibilities can be unpredictable and require around-the-clock attention. The monetized economy usually operates within defined hours, with opportunities for overtime and additional compensation for extended work.
Regulation The care economy is largely unregulated, leaving caregivers without a safety net or formal legal protections. The monetized economy is subject to various regulations, including labour laws and occupational safety standards, providing a level of protection for workers.

Bringing Care Economy into Monetized Economy Through Women Empowerment

  • Blockchain-Verified Skill Credentials: Platforms like Accredible are already using blockchain to verify academic credentials. This can be adapted for caregiving skills, adding credibility to unpaid care work done by women.
  • Care Economy Digital Platforms: Similar to Uber and TaskRabbit, specialized platforms like Care.com could be expanded to include a broader range of care services, providing more monetized opportunities for women caregivers.
  • Recognizing the value of care work: The value of care work needs to be recognized and acknowledged. This will enable women who are engaged in care work to be compensated fairly for their services.
  • Providing social protection: Women who are engaged in care work should be provided with social protection measures such as health insurance, maternity benefits, and pension schemes. This will ensure their financial security and enable them to contribute to the monetized economy.
  • Encouraging entrepreneurship: Women should be encouraged to start their own businesses in the care economy. This will provide them with an opportunity to become self-employed and contribute to the monetized economy. Lijjat Papad
  • Providing access to finance: Women who are engaged in the care economy should be provided with access to finance. This will enable them to invest in their businesses and expand their operations, thereby contributing to the monetized economy. Use of SHG can be effective here .
  • Social Impact Bonds for Care: The success of Social Impact Bonds in sectors like girl’s education in Rajasthan could be translated into the care economy. Funds from these bonds can be allocated to pay caregivers for community services, providing them with a stable income.
  • Skill training: For shifting industrial demands and nature of jobs. Also, men should be trained for helping in care economy as well.
  • Care Economy Co-operatives: Mondragon Corporation in Spain is a successful example of a worker co-op model. A similar structure could help caregivers negotiate better terms, securing a stable income for women.
  • AI-Enhanced technology use : Platforms like LinkedIn use AI algorithms for job matching. A similar AI model could be used for caregiver matching, ensuring compatibility between caregivers and recipients.
  • Tokenization of Care Work: Cryptocurrencies like Bitcoin provide a framework for tokenization. Implementing a similar structure for care work can allow women to earn tokens that are redeemable for goods, services, or even fiat currency.
  • Global Care Exchange Programs: Au pair programs have been successful in offering international childcare opportunities. Extending this to other forms of care work can broaden horizons and enhance earning prospects for women caregiv

Conclusion

These strategies, backed by real-world examples, pave the way for innovative integration of the care economy into the monetized economy. The central idea is to leverage existing technologies and financial mechanisms to provide women with fair compensation, recognition, and better opportunities in caregiving roles, thus empowering them economically and socially.

 

 

For a Detailed explanation of the UPSC GS-01 Mains question 2023, click here.

For a Detailed explanation of the UPSC GS-02 Mains question 2023, click here.

For a Detailed explanation of the UPSC GS-03 Mains question 2023, click here.

For a Detailed explanation of the UPSC GS-04 Mains question 2023, click here.

 

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Quick Revise Now !
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Comprehensive coverage with a concise format
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हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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