Speaking at a private event on leadership here, Obama said while in office he had mused what a world run by women would look like, reports the BBC.
The former leader said women weren't perfect, but were "indisputably better" than men, adding that most of the problems in the world came from old people, mostly men, holding onto positions of power.
"Now women, I just want you to know; you are not perfect, but what I can say pretty indisputably is that you're better than us (men)," Obama said.
"I'm absolutely confident that for two years if every nation on earth was run by women, you would see a significant improvement across the board on just about everything... living standards and outcomes."
When asked if he would ever consider going back into political leadership, the former President said he believed in leaders stepping aside when the time came.
"It is important for political leaders to try and remind themselves that you are there to do a job, but you are not there for life, you are not there to prop up your own sense of self importance on your own power," the BBC quoted Obama as saying.
Since leaving the White House, he and former first lady Michelle Obama have set up a foundation mentoring young leaders around the world.
The couple was in Kuala Lumpur last week for an Obama Foundation event.
( With inputs from IANS )