The Political Economy of Care: A Developmental Perspective

Care is fundamental to the functioning of households, societies, and economies, contributing to the well-being of individuals and the productivity of the workforce and the economy. Despite its critical role, care, provided mainly by women, has historically been marginalised in economic analysis. The COVID-19 pandemic brought care to the forefront of policy discussions. Today, there is momentum in recognising the value of care. However, challenges remain. The care economy is heterogeneous, including paid and unpaid care, diverse skills and multiple institutions that provide care. Critical political economy issues relate to how care is organised and provided, how it is measured and financed, and who has access to care. Feminist economists have long advocated for the inclusion of care in economic analysis and the understanding of power structures and labour market outcomes for women. In this context, this paper, based on the current literature and data, explores the political economy of valuing care from a development perspective, emphasising the importance of recognising care’s role in societies and economies. It highlights the unique characteristics of the care economy and delves into the historical evolution of economic thought on care, highlighting key classical, neo-classical, and feminist economist thinking that shaped the discourse around care in economics. It relates this to the current division of labour inside and outside the home, and its implications for labour market outcomes for women and the need to measure care work, both paid and unpaid. Finally, it highlights the job creation potential in the care economy and the positive externalities of investment in care emphasising its critical role in the political economy for driving structural transformation and economic and social development.