A narrowing gender gap in the region falls short of empowering women economically and politically, reports Nesma Nowar Rahma comes from a region of Yemen where it is often said that to educate a woman is "wrong because her place is in her husband's home." She is one of a number of women who were the focus of the recently published Gender Equality and Development in the Middle East and North Africa Region report. The report shows the gender inequalities affecting the Middle East and North Africa (MENA). Like many other women in the region, Rahma has a low level of education and literacy; low pay in formal employment and suffers under-representation in politics. The report finds that although MENA countries have made significant progress in narrowing gender gaps, especially in education and health, such considerable investments in human capital development have not yet translated into commensurately higher rates of female participation in economic and political life. "In nearly all MENA countries, women outnumber men in universities," said Tara Vishwanath, lead economist at the World Bank, as she addressed a press conference in Cairo this week. The bad news, however, is that the region has the lowest levels of women's participation in the labour force. "In Egypt, less than one third of women participate in the labour force compared to men," Vishwanath said. The report shows that, in the region, female labour participation as a whole has increased by only 0.17 per cent annually over the last 30 years. At this rate, the MENA region would take 150 years to catch up with the current world average. It also shows that while unemployment rates are higher for women across the world, the gap between male and female unemployment rates is particularly wide in the MENA area. Moreover, this gap has doubled over the last 25 years, from 5.5 per cent in 1985 to more than 10 per cent in 2010. Similarly, women's participation in politics is also limited. The report shows that women are still heavily underrepresented in politics, holding only seven per cent of seats in parliament. "Although there were only 12 seats reserved for women in Egypt's 2010 parliamentary elections, even that was a subject of debate," Vishwanath noted. The report adds that the region has a number of characteristics that lead to such outcomes. Certain social and cultural norms, alongside legal frameworks in MENA countries circumscribe women's capacity to exercise agency in political and economic spheres, and thereby limit their economic opportunities. Social norms can also shape the legislative framework and influence the enforcement of laws, therefore the legal framework can reinforce restrictive gender norms by formalising unequal rights for men and women. In addition to social norms and legal restrictions, women's labour force participation is directly influenced by the social contract by which MENA governments provide public employment, benefits and subsidies to citizens. The social contract, especially in North Africa, according to the report, has boosted public sector employment and compensation at the expense of private sector job creation. The public sector on average accounts for 45 per cent of total employment in the region. The report further shows that public sector employees are offered higher pay, subsidies, pensions, and relatively more generous working conditions than similarly qualified workers in the private sector. However, the public sector cannot cope with the growing population, and therefore job creation must involve the private sector more. According to the report, it is high time for reform of the old social contract, which has proven to be unsustainable on the back of the recent social unrest across the region. Young people, including women, are calling for a greater role in society and access to better economic opportunities, heralding a need for serious economic reform. "The recent Egyptian revolution demonstrated that Egyptians are eager to have more access to economic opportunities and political participation," Vishwanath said. The report recommends MENA governments to focus on reforms that support economic diversification, private sector investment and growth, while boosting the employability of a growing class of educated young men and women. Enhancing women's entrepreneurship is also essential in a region where women entrepreneurs face significant barriers to accessing credit. "Most business loan application rejections in Egypt are based on a lack of acceptable collaterals, which is a major constraint for female entrepreneurs," the report said. The Gender Equality and Development in the Middle East and North Africa Region report accompanies the World Development Report 2012: Gender Equality and Development. The latter focuses on challenges and reform priorities for gender equality in the MENA region.