Session V
Linking Women to Global Markets- An Overview and Perspectives from South Asia
1. Mrs. Marylin Carr made a presentation on identifying ways in which women producers and workers can take advantage of trade liberalization. The means to be identified pertain to access for women to export market and finding jobs on more favourable terms in the upcoming new markets.
2. In order to enable women means of access to export market, favourable strategies need to be adopted in the following areas:-
- Favourable national policy environment
- Global production systems
- Markets and market access
- Supporting factors
3. The global production chain come under the following two categories, i.e.
- global value chains and
- buyer driven chains.
While in the first category women producers are excluded, in the second category women workers are exploited. She quoted the examples of fashion oriented chain where 10% of the cost in the global value chain stay with the producers whereas 90% goes to the distributor and retailer chain and that of “Global Economy Barbie” produced in China and marketed in US and other markets. While the cost of the Barbie doll in US$ 10 per piece, the women who make the doll in the China receive just 50 cents per piece. She explained the alternative approaches to conventional marketing systems where women receive recognition and their due share in market access. These are
- fair trade
- organic trade
- ethical trade.
4. She quoted the example of ‘Fair Trade’ in the handicrafts trade of Bangladesh and chocolate in UK, cocoa cooperatives in Ghana. Key players in the fair trade are International Federation for Alternative Trade (IFAT), Fair Trade Labelling Organization (FLO), Network of World Shops (NEWS) and European Fair Trade Association (EFTA). However, less than 1% of all goods traded are traded through ‘Fair Trade’. ‘Organic Trade’ which overlaps fair trade is much larger and is a fast growing market. ‘Ethical Trade’ deals with women workers in global supply chain and concentrates on ensuring that working conditions meet minimum standards. Examples of Ethical Trade are Vietnam business links initiative, Atlanta Agreement, Sialkot, Pakistan and Ethical trading initiative of the UK. National Export Strategies deal with ‘Mainstream Trade’ where most trade takes place need to address the concerns of poor women producers.
5. To make these unconventional forms of trade sustainable, institutional support is required for producers and workers for achieving technology and competitiveness. The factors to be taken care of are import competition, flooding of niche markets, rise of NTBS, continued technological change.
6. Mrs. Madhura Chatrapathi of Ascent made a presentation on her experience of successfully linking women to global markets. Her presentation brought out the challenges faced by small producers and entrepreneurs to access global markets viz. scale, quality and standardization, technology/productivity, training and other support services, resources, and business skills. She suggested the options for achieving scale ie. collaboration, clustering, group enterprise, networks, partnerships etc.
7. She presented the example of ‘Toehold’ a brand of handcrafted leather footwear, produced by over 400 families of artisans in Athani, a remote place in the border district of Karnatka. The project ‘EnterPrice” was implemented in a period of 3 years from Jan 1999 to Dec. 2002 with the funding support of NLDP(UNDP) and Central Leather Research Institute. The business model and social processes were designed and implemented by ASCENT on a Build Operate and Transfer basis. While production of “Toehold’ footwear is decentralized in distant Athani marketing is centralized in Bangalore. The brand caters the high-end consumers and operates in low volumes and high margins. It has established a strong international customer base in Europe, Japan, North America and Australia.
8. Based on this success story, she outlined the strategy to be adopted in developing women entrepreneurs as follows:
- Identifying role of women in any sector developing interventions that are women inclusive.
- Ensuring opportunities for women in exposure and training in aspects of business not just back end activities.
- Institutional support in business development and market access through partnership with local TPOs and women business groups.
- The 3-E Synergetic approach working with the Environment, the Enterprise and the Entrepreneur not with women alone
- Exploring the magic of synergy of the groups
- Exposure – look-see, touch-Feel to international markets
- Handholding and mentoring by successful exporters
- Creating enabling environment, resource mobilization and capacity building
- Inclusive approach in export development initiatives
9. Mrs. Rajani Aggarwal of Federation of Indian Women Entrepreneurs presented her experience in achieving success in the international market. In her presentation she highlighted the practical problems faced by women entrepreneurs in logistics, finance and organizational matters and the importance of decision making and training of women for skill development.
10. Mrs. Nirmala Banerjee made a presentation on the impact of trade liberalization on poverty reduction. She explained the differential impact of reduction in price of tradable and non-tradable commodities on consumers at different levels ie. the bottom 30% is more affected by the reduction in price of non-tradable commodities, whereas the high end consumers are benefited by the reduction in prices of tradable commodities. The benefit of trade liberalization therefore accrue more to the high-end consumers. She quoted a research study done in 2005 on the ‘Impact of Trade Liberalisation on Producers in 16 major states of the country. The conclusion of the study is that in rural districts that are relatively prone to trade shocks (producing tradable goods) head count ratio of poverty level went down relatively less than in those districts producing non-tradable goods.
11. She quoted the cases of cotton handloom and sericulture industries in West Bengal, which were affected by the trade liberalisation in India after 1991. She highlighted the adjustment which took place in households of handloom weavers, where men had to shift to alternative jobs following loss of jobs due to liberalization. In these cases women had to carry on the traditional work eg. weaving side by side their normal household work. Though this created earning and improved the status of the women, it increased their workload. She explained that in India, especially in the traditional occupations, it has been found difficult for the labour to take advantage of liberalization by moving to the sunshine industry, due to lack of skills and education.
12. Dr. Marilyn Carr made a presentation on Global Value chain analysis. She explained the definitions and concepts of different types of Global Value Chains, its application to workers and small enterprises. She highlighted the importance of applying gender analysis to global value chains and the use of information obtained through this analysis for supporting collective actions and helping women to switch chains/industries. This analysis gives tools to the small enterprises to learn from Global Buyers and changing views on Business Development Services (BDS).
