ILO and Nepal Launch Care Economy Initiative to Expand Women’s Employment and Social Protection

Speaking during the signing ceremony, Özcan emphasized that investing in the care economy is critical not only for social wellbeing but also for long-term economic growth and gender equality.

In a major step toward advancing gender equality and building a stronger care economy in Nepal, the International Labour Organization (ILO) and the National Cooperative Federation (NCF) of Nepal have launched a new partnership aimed at expanding access to care services, creating decent jobs, and increasing economic opportunities for women across the country.

The initiative addresses one of Nepal's most overlooked economic realities: the vast amount of unpaid care work carried out by women every day. From childcare and eldercare to household responsibilities and community support, care work sustains families, communities and economies — yet it remains largely invisible, unpaid and undervalued.

The ILO says this unequal burden significantly limits women's ability to participate fully in the labour market, grow businesses, pursue education or take on leadership roles, particularly in rural and marginalized communities.

The new collaboration seeks to fundamentally change that dynamic by recognizing care as both essential social infrastructure and a major economic sector capable of generating employment, improving social protection and supporting inclusive development.

The implementation agreement was signed by Numan Özcan, ILO Country Director for Nepal, and Dr. Babu Kaji Thapa, General Manager of the National Cooperative Federation of Nepal, in the presence of Mr. Ramesh Prasad Pokhrel, Acting Chairperson of NCF.

Speaking during the signing ceremony, Özcan emphasized that investing in the care economy is critical not only for social wellbeing but also for long-term economic growth and gender equality.

"By investing in care cooperatives, the partnership will help transform care work into a recognized and valued sector, creating jobs, expanding access to affordable care services, and easing the burden on families," Özcan said.

The initiative will focus initially on establishing care service centres in Madhesh, Karnali and Sudurpashchim Provinces — regions where access to organized childcare and eldercare services remains limited despite high demand.

The centres are expected to provide affordable and reliable care services while also acting as community hubs that connect families and workers with information on social protection programmes, social security systems and support services.

Development experts say the programme reflects a growing international recognition that care economies are central to sustainable growth, labour force participation and poverty reduction, particularly in low- and middle-income countries.

Globally, women perform more than three-quarters of unpaid care work, according to international labour estimates, often spending several additional hours per day on unpaid household and caregiving responsibilities compared to men. In Nepal, this imbalance is particularly pronounced in rural areas, where limited infrastructure and social services further increase unpaid care burdens.

The ILO believes strengthening Nepal's care economy could generate a ripple effect across multiple sectors by enabling more women to seek paid employment, start businesses, participate in cooperatives and contribute more fully to local economies.

For communities, the expansion of care services could improve early childhood development, support aging populations and reduce pressure on households struggling to balance income generation with caregiving responsibilities.

For workers, the initiative is expected to create new pathways into formal and decent employment within the care sector, while improving recognition, training and protections for care workers who have traditionally operated in informal or poorly regulated conditions.

The programme also aims to establish stronger links between care work and Nepal's broader social protection framework, helping extend labour protections and support systems to workers in the care economy.

Speaking at the ceremony, Acting Chairperson of NCF Ramesh Prasad Pokhrel stressed the importance of cooperative-led solutions in addressing care-related challenges.

"We are committed to fulfilling our responsibilities as we have this opportunity to work with the ILO," Pokhrel said. "We also recognize the importance of addressing CARE-related issues through a cooperative approach."

Dr. Babu Kaji Thapa described the initiative as an important national pilot programme with the potential to create a scalable model for future expansion.

"This is a new pilot initiative for Nepal and holds great significance for us and we are committed to demonstrating our work successfully," Thapa stated.

A key feature of the partnership is its focus on leveraging Nepal's extensive cooperative network, which reaches thousands of primary cooperatives across the country. By embedding care services within community-based cooperative systems, the programme aims to create locally owned, sustainable and scalable solutions rather than isolated short-term interventions.

The initiative will also prioritize the development of national standards, training systems and institutional capacity for care cooperatives.

Under the programme, cooperatives will receive technical tools, training and support to deliver quality care services in a structured, inclusive and gender-equitable manner.

The partnership will additionally support the creation of a national pool of trainers on care cooperatives and help develop care champions in the three target provinces to advocate for the recognition, reduction and redistribution of unpaid care work.

These advocates are expected to play a role in promoting policy reforms and strengthening the representation of care workers within social dialogue mechanisms and collective bargaining processes.

The initiative reflects broader global discussions about the need to formally recognize care economies as drivers of economic resilience, social cohesion and inclusive development.

International organizations increasingly argue that care should be viewed not as a financial burden, but as a long-term investment in productivity, human capital and social wellbeing.

ILO officials say Nepal's programme could become a model for community-based care systems in South Asia if successfully expanded and integrated into national development planning.

As Nepal continues efforts to promote inclusive economic growth and reduce inequalities, strengthening the care economy is emerging as a critical component of ensuring that women, vulnerable communities and marginalized populations are not left behind.

The partnership signals a broader shift toward recognizing that sustainable development depends not only on physical infrastructure and industrial growth, but also on investing in the systems of care that support families, workers and entire economies.