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

‘देखभाल अर्थव्यवस्था’ और ‘मुद्रीकृत अर्थव्यवस्था’ के बीच अंतर कीजिए। महिला सशक्तिकरण के द्वारा देखभाल अर्थव्यवस्था को मुद्रीकृत अर्थव्यवस्था में कैसे लाया जा सकता है?

Structure of the Answer

(i) Introduction: Briefly define the “care economy” and “monetized economy,” mentioning their gendered dimensions and relevance to economic policy in India. 

(ii) Main Body: First, explain the key distinctions between these economies, then discuss how integrating care work into the monetized economy can be facilitated by women empowerment. 

(iii) Conclusion: Summarize the importance of recognizing care work for economic growth and gender equity, emphasizing the role of empowering women in this shift. 

Introduction

The “care economy” includes unpaid work essential to social well-being, while the “monetized economy” involves formal paid work. Integration via “women empowerment” can foster inclusive economic development. 

Distinctions Between Care Economy and Monetized Economy

(i) Economic Contribution and Recognition: The “care economy” remains largely unrecognized in “GDP” metrics despite its societal impact, whereas the “monetized economy” is included in national income accounts, leading to economic visibility. 

(ii) Role in Social Welfare vs. Productivity: The care economy contributes to social welfare through caregiving roles, while the monetized economy focuses on productivity and financial growth, impacting policy prioritization. 

(iii) Gendered Division of Labor: Care roles are predominantly filled by women and unpaid, while the monetized economy sees more balanced, though unequal, gender representation, often with wage gaps. 

(iv) Informal vs. Formal Labor: Most care work lacks formal recognition, providing no financial security or rights, whereas formal labor includes benefits and protections, reinforcing its economic legitimacy. 

(v) Dependency on Economic Growth: Care work, unpaid and reliant on familial norms, contrasts with monetized work, which thrives with economic growth, formal structures, and government intervention. 

Integrating the Care Economy into the Monetized Economy via Women Empowerment

(i) Skill Development and Recognition Programs: Training women in caregiving and healthcare enables the monetization of traditionally unpaid roles, promoting skills recognition and wage-based work in care sectors. 

(ii) Financial Support and Microfinancing: Targeted “microfinance” schemes and entrepreneurship support empower women to transition care work into formal business, fostering local care industries and economic inclusion. 

(iii) Policies for Paid Leave and Flexibility: Paid family leave, flexible work options, and benefits for caregivers can reduce financial stress, promoting economic participation among women balancing paid and care work. 

(iv) Legislative and Institutional Support: Policy reforms to ensure fair wages for care roles in sectors like childcare and eldercare formalize and value care work, strengthening women’s economic independence. 

(v) National Accounting Inclusion: Incorporating care work in national accounts improves data visibility, fostering policy formulation to integrate unpaid care work into the formal economy through tax benefits or pensions. 

Conclusion

Bringing the “care economy” into the “monetized economy” empowers women, promotes gender equality, and strengthens social resilience, emphasizing the need for sustained policy focus on care work.