The “impact” perspective is essential to realize a diverse and inclusive society

On December 14, 2023, the Gender Investment and Innovation Program at the Sasakawa Peace Foundation (SPF) held a seminar entitled “Investing in Gender Equality for a Sustainable Future for All” welcoming members of the Gender Equality Advisory Council (GEAC), an external advisory body set up to advise G7 leaders on gender equality issues. The discussions highlighted the crucial role of incorporating an impact perspective when evaluating social challenges, underscoring the need for society as a whole to actively address these challenges to achieve a more diverse and inclusive world. The seminar also touched on the need for public-private sector collaboration in the area of global health as a means of bringing together people from different walks of life for the common cause of promoting healthy living.

SPF President Atsushi Sunami described in his opening address, how the world, including Japan, is transitioning toward an impact perspective, and emphasized the importance of promoting diversity and maximizing the contribution of women to achieve a sustainable and inclusive society for all. Dr. Sunami also expressed SPF’s ambition as a private foundation to play a leading role in "impact creation," by working with private foundations around the world, particularly in Asia.

Ms. Anda Sapardan, GEAC 2023 member and co-founder of Sehati TeleCTG in Indonesia, spoke in depth about economic empowerment, one of the four pillars outlined in the 2023 Gender Mainstreaming for an Inclusive, Peaceful and Just Society report presented to the G7 (the other three pillars are education, peacebuilding, and data).

Although statistics show that increasing women’s economic participation boosts overall economic growth, we still have a long way to go to achieve economic equality. Gender-based wage disparities persist, and female participation in political decision-making processes is extremely limited.

The G7 report made four key recommendations for boosting women’s empowerment: full economic participation by women, gender-based analysis in policy development, gender-smart investment in the private sector, and expanded participation of women in financial decision-making.

Ms. Sapardan noted that to invest in women is to invest in children and in wider society. Investing in women is linked to higher attendance in schools and improved family health outcomes, which in turn generates multiple benefits not only for the women themselves but for families, communities, and the wider economy.

Drawing on her extensive experience with digital health care initiatives involving ICT and digital technologies, Ms. Sapardan also emphasized the need for health resilience, particularly at a time when the global community is called on to provide a response to challenges such as climate change and the COVID-19 pandemic. This requires funding to the private sector as well as closer coordination between the public and private sectors.

Mr. Ken Shibusawa, CEO of Shibusawa and Company and co-chair of the Impact Investment Initiative for Global Health, argued that a partnership between Japan and the rest of the world could produce important insights when considering topics related to population. Though the number of young people in Japan is in steady decline, countries in the Global South have much higher proportions of young people. Ultimately, what many young people want is to be able to find work and earn money to raise a family. This suggests that the world, including Japan, has the capacity for further growth to fulfill this need.

Regarding possible strategies for Japan moving forward, Mr. Shibusawa called for a new approach of “Made With Japan” to supersede the “Made In Japan” model of the postwar economic miracle period through to the end of the Cold War and the “Made By Japan” model of the last 30 years. This new model sees Japan working together with other nations to build flourishing and sustainable communities. This in turn will usher in a new era for Japan, one where private industry works both directly and indirectly to support communities around the world, thereby allowing Japan to continue to flourish in spite of its shrinking population.

Mr. Shibusawa described the wave of "new capitalism" since 2021 as inclusive capitalism, where the focus is on taking the externalities into account and internalizing within the capitalism paradigm. By externalities Mr. Shibusawa meant issues involving the environment, society, and other factors. In addition to risk and return, he argued that impact must also be measured, and emphasized that capitalism must be evaluated according to outcomes that resolve social issues, which ultimately requires greater investment in people and boosting human capital.

The Impact Investment Initiative for Global Health was formally launched at a side event of the UN General Assembly in October 2023. According to Mr. Shibusawa, bringing a diverse range of people together to promote healthy living will boost productivity and in turn create better communities. He called for countries in the Global South as well as industrialized nations to work together to this end.

Mr. Shibusawa and three GEAC member country representatives joined a panel discussion about the achievements of impact funds in generating value and addressing social challenges.

Mr. Shibusawa stressed the importance of generating impact from the perspective of diversity and noted that companies must have an intention to simultaneously match market demand and meet societal needs, and that investors also should consider unleashing more capital for social good and transition into a much broader movement: the "impact economy."

Mr. Maxime Houinato, regional director for UN Women in East and Southern Africa Regional Office, has a long history of supporting women including through his involvement in the Buy from Women campaign, which actively encourages purchasing from women-led businesses and companies. According to Mr. Houinato, changing the ecosystem requires a combination of "soft" inputs such as standards, legal systems, and policies alongside "hard" inputs such as physical infrastructure, capacity, and resources. He emphasized that proper education for women is vital to motivate as many talented women as possible to become involved in economic activities.

Ms. Sapardan also noted the importance of encouraging women to engage more strongly with science and mathematics, arguing that it is important to understand accurate information not only for themselves but also their children.

Ms. Sarah Sands, deputy chair of the British Council, described how the COVID-19 crisis prompted a major shift in the nature of public-private sector collaboration. She also noted that the mutual consideration shown by both sides in pursuit of the common goal of national health represents the very essence of diversity.