Literature Survey - Trade and Women's Empowerment
What role Trade has played in Women’s Empowerment-A Literature Survey
Anil Kumar Kanungo1
Under such alarming conditions, United Nations (UN) whose mandate is to redress such manmade calamity has taken a moral responsibility by declaring and strategizing certain goals for the whole world to achieve by 2015 which should address the immediate human concerns. In that context, MDGs have assumed critical proportions. Prominent among them is the women empowerment. UN’s clarion call to achieve this objective by 2020 looks far fetched, as women in many parts of the world continue to languish in the same manner as they did even many decades ago.
In an attempt to ameliorate their conditions, world at large resorted to the mechanism of trade liberalization as a viable alternative to address their immediate concerns. This is where the importance of one of the prominent theories ‘Trade Promotes Growth , Growth Reduces Poverty’ gathers momentum.
Today, increasing global economic integration and trade liberalization pursued world wide have provided a slew of opportunities to various people. It has at the same time affected different people differently. Women at large in many developing and LDCs are still struggling to meet two square meals a day. To that regard, how trade has responded to the challenges of gender remains an agenda of social inquiry.
The issue of trade and gender is a sensitive one. Over the last two decades the issue has generated lot of debate centering around the argument that whether free trade has significantly contributed to the overall upliftment of women folk in the world. A number of studies carried out on this issue throw up some of the startling facts that continue to enrage the civil society and community at large. This article makes an attempt to essay some of the key findings of the major studies conducted so far.
A study conducted by International Labor Organization indicates that current growth in world trade is giving rise to widening of the gap between rich and poor within countries, in which women have been subjected to more sufferings than men, particularly as small scale farmers and producers who are unable to compete with subsidized imports coming from developed countries. As the United Nations Development Fund for Women (UNIFEM) states, “women – especially poor women – have unequal access to resources such as land, credit and education. This ineffect allow them the least possible chance to benefit from trade liberalization and the most likely to suffer from the adjustment costs of trade reform and economic restructuring.”
In another study it is noted that women in Mexico, the United States, and Canada continue to suffer from the establishment of NAFTA as it has resulted in negative impacts such as growing unemployment and underemployment, drastic cut in real wages in Mexico, the closure of small and medium-sized businesses and family farms, greater job insecurity, diminished social services, among others. A recent study showed that in Mexico, poverty for female-headed households increased by 50 percent since NAFTA was implemented . In the US, all fifty states have experienced job loss under NAFTA. The industrial states have experienced striking decreases in employment as industry has moved to Mexico . With loss in bargaining power for workers and weaker unions, employment trends have become unstable and tenuous, with women workers’ fundamental rights undermined. Many women who have lost jobs in the manufacturing sector and have found new jobs in the service industry, but they are experiencing cutting down in wages and periods of instability.
In a major study titled “Globalization and the Gender Wage Gap” by Oostendorp it was highlighted that the occupational gender gap appears to be narrowing with increases in GDP per capita,. Second, there is a significantly narrowing impact of trade and FDI net inflows on the occupational gender gap for low-skill occupations, both in poorer and richer countries, and for high-skill occupations in richer countries. Third, there is no evidence of a narrowing impact of trade and evidence of a widening impact of FDI net inflows on the high-skill occupational gender gap for poorer countries, possibly reflecting skill complementarities. And finally, wage-setting institutions have a strong impact on the occupational gender wage gap in richer countries.
According to a study conducted by Oxfam in Bangladesh, with the rise of the export-oriented clothing industry and the resulting increase in wage opportunities for young women, families have overcome social resistance to women's work outside the home. Growth in the ready-made clothing industry has created close to two million jobs in the formal economy, over three-quarters of them filled by women. Their increased employment has changed the view of women's economic sphere and has reportedly increased women's social status, their control of income, and their decision-making power in the family (Oxfam 2004).
In another study by Jurajda, S and Paligorova T, it was observed only 7 per cent of top-level Czech managers are women and their wages are about 20 percent lower even when compared only to their comparable male colleagues. The raw average pay gap between mean and women increases with firm hierarchy level.
Today in mot part of the world women’s key role in food security and food sovereignty linked with agricultural production, particularly in developing countries. It is currently threatened by the existing trade rules in agriculture. Trade rules on agriculture have allowed for the consolidation of agribusiness groups to generate export-led production at the expense of sustainable agriculture, rural development, traditional livelihoods and national development needs. These policies are aggressively pursued at the behest of developed countries. In stead, the agricultural policies should form policies to protect social reproduction within the agricultural sector.
The Agreement on Agriculture at the WTO has diminished the range of food production possibilities in many parts of the world, as it institutionalizes a food production and distribution system that is at the mercy of price setting by multinational corporations. Unfortunately, the majority of small scale farmers in the South are unable to compete with the large producers in the international market. Women and their families are getting displaced from their own land and remaining hungry through out. This is the reflection of the agricultural rules kicked off by the World Bank and IMF as a part of the structural adjustment programme. Developing countries argue that subsidies provided by EU and the US to their agricultural programme are distorting the agricultural trade and depressing the international agricultural prices to such low level that farmers in developing countries are unable to compete. As a result, their sufferings are doubling. Negotiations at WTO are currently resulting in deadlock as developed countries remain adamant on the issue.
In recent time increasing attention has been paid to the gender dimension of poverty and development, particularly in relation to the role of women in agricultural processes and the impact of agricultural trade liberalization on women. Some organizations like FAO have started talking about the “feminization of agriculture” in the developing world, based on the facts that women represent 66 per cent of the economically active population working in the sector and are identified as major providers of food and income for their families and communities in rural areas. Nonetheless, statistics have also demonstrated that women tend to be disproportionately poor and disadvantaged; representing over 70 per cent of the poorest global population with low level of ownership, control and access to productive and economic resources, assets and markets.
Policy makers, researchers, International Development and Financial Organizations, NGOs and community at large are facing enormous challenges in terms of mainstreaming the gender into social and economic activity.
To make such issues loud and clear in a recent study conducted by Maria Pia Hernandez titled “Incorporating Gender Considerations for the Designation of Special Products in
WTO Agriculture Negotiations”, the author tries to argue that agricultural trade distortions are causing mammoth injury to the food security and livelihood of women folk in the developing countries. To protect their food security, livelihood and rural development these women need to be given rights to determine the special products in agriculture. Determining appropriate criteria in order to identify key agriculture products subject to special protection should be seen as a protective tool required by developing countries in order to protect their economies and local markets from dumping practices of the developed countries.
She further argues that continuous debate and study would to contribute to national discussions in the process of defining SPs by putting forward some reflections and recommendations in regard to the current situation of women in agriculture and the need to integrate gender-sensitive trade policies in negotiating processes in order to ease negative impacts of trade liberalization, particularly for small farmers and rural poor, women being a significant percentage within those groups. It is mainly intended for informative and advocacy purposes among civil society, particularly for small farmers and agricultural social movements, but also for assisting policy makers and trade negotiators in current negotiations.
In another major work done by Naila Kabeer, gender issue was analyzed from the angle of MDGs. It explored the issue of gender inequality in details try to prescribe workable policies and ideas which can be developed to work towards reduction of poverty by 2015. It attempted to bring together arguments, findings and lessons from the development literature which are relevant to the achievement of these goals from the standpoint of gender equality. It draws out the inter-connections between production and gender and women's critical role in straddling both and their implications for poverty eradication strategies and the achievement of human-centred economic growth.
Multilateral organizations are also contributing their bit to the issue of women empowerment. UNCTAD and UNIFEM jointly published a book “Trade and Gender: Evidence from South Asia" edited by Dr. Veena Jha. The book focuses on three broad issues: key issues in WTO negotiations that may have gender implications; exploring opportunities for employment and income generation for women from the WTO agreements; and examining and mitigating the effects of WTO rules on women in South Asian countries. The book makes a bold attempt at understanding the gaps that exist between policy prescription and implementation of such policies at the ground level to address the sensitive issues. It contains a series of country papers with studies focusing on sectors having the maximum impact on livelihood opportunities for women, viz., marine products, textiles/garments/spices and food processing, observes that the Cancun ministerial was critical to women as it was centred around agriculture which employs a large proportion of women in many countries including India. " Now more than ever before, women from South Asian developing countries have a unique opportunity to influence the future trade agenda and to seek economic and developmental gains from further trade liberalization. Regional cooperation can be helpful in this context, as evidenced by the negotiating strength of MERCOSUR, ASEAN and other such groups. There is a need to study the gender effects caused by the agreements of the WTO in a systematic way particularly with a view to sensitizing the trade negotiators.
A significant organization like UNIFEM has made progressive strides in the field of women issues in South Asia. Dedicating to the cause of empowerment of women, it takes active part in organizing and publishing various activities. In a major work entitled “Progress of Women in South Asia 2007” done by Indian Institute of Social Studies Trust the Fund (ISST) for the Fund a holistic overview of the situation of women in South Asia since 2005 is projected. It narrates progress made and the challenges that persist in relation to the advancement of women, particularly in relation to violence against women, economic and political empowerment of women, disaster preparedness, health and education. These issues are further dealt with from the feminine face of poverty and the impact of reform on women, to gender and social policy, discussing social protection, health and education. Women’s human rights framework and combating gender-based violence are spotlighted as are the issues of armed conflict and post conflict reconstruction on women. The challenges of participation and leadership are explored and the role of the national machineries and media scrutinized.
Multilateral organizations are also contributing their bit to the issue of women empowerment. UNCTAD and UNIFEM jointly published a book “Trade and Gender: Evidence from South Asia" edited by Dr. Veena Jha. The book focuses on three broad issues: key issues in WTO negotiations that may have gender implications; exploring opportunities for employment and income generation for women from the WTO agreements; and examining and mitigating the effects of WTO rules on women in South Asian countries. The book makes a bold attempt at understanding the gaps that exist between policy prescription and implementation of such policies at the ground level to address the sensitive issues. It contains a series of country papers with studies focusing on sectors having the maximum impact on livelihood opportunities for women, viz., marine products, textiles/garments/spices and food processing, observes that the Cancun ministerial was critical to women as it was centred around agriculture which employs a large proportion of women in many countries including India. " Now more than ever before, women from South Asian developing countries have a unique opportunity to influence the future trade agenda and to seek economic and developmental gains from further trade liberalization. Regional cooperation can be helpful in this context, as evidenced by the negotiating strength of MERCOSUR, ASEAN and other such groups. There is a need to study the gender effects caused by the agreements of the WTO in a systematic way particularly with a view to sensitizing the trade negotiators.
A significant organization like UNIFEM has made progressive strides in the field of women issues in South Asia. Dedicating to the cause of empowerment of women, it takes active part in organizing and publishing various activities. In a major work entitled “Progress of Women in South Asia 2007” done by Indian Institute of Social Studies Trust the Fund (ISST) for the Fund a holistic overview of the situation of women in South Asia since 2005 is projected. It narrates progress made and the challenges that persist in relation to the advancement of women, particularly in relation to violence against women, economic and political empowerment of women, disaster preparedness, health and education. These issues are further dealt with from the feminine face of poverty and the impact of reform on women, to gender and social policy, discussing social protection, health and education. Women’s human rights framework and combating gender-based violence are flagged off as are the issues of armed conflict and post conflict reconstruction on women. The challenges of participation and leadership are explored and the role of the national machineries and media scrutinized.
Empowering rural women by promoting women’s entrepreneurship and e-business in cooperatives has been identified as an important approach to alleviate rural poverty and promote sustainable development. Developing women’s entrepreneurship and e-business in green cooperatives in the Asian and Pacific region conducted by UNESCAP is perceived to be an initiative in the right direction. This is brought out as a research document in 2007 which explores the potential for women in entrepreneurship and e-business in the niche area of green or “organic” cooperatives. It seeks to promote women’s entrepreneurship and e-business development by providing policymakers and entrepreneurs with background on this niche area, potential entrepreneurship and e-business development opportunities, and a discussion of its implications for rural development.
It is argued that entrepreneurship in organic/green produce provides new opportunities to farmers in developing countries, especially women smallholders. At the same time, many Asian developing countries possess strong market potential for producing specialty, value-added products that sustain the agro-ecological environment. The green cooperative model of enterprise enables smallholders to capitalize on these potentials by supporting the identification of specialty produce and its marketing opportunities, providing financial and business related services.
A number of policy recommendations are made to promote women’s entrepreneurship and e-business development in the agricultural sector including. These include use of a certification system and marketing; to raise consumers’ trust, governments should adopt a certification system for green products; capacity-building training: donor agencies and other external actors need to focus their resources on raising the capacity for women’s cooperative participation in the new direction of agricultural development; establishment of intraregional e-business women’s green cooperatives networks- to widen export market opportunities, it is important for women’s green cooperatives in the region to form entrepreneurial support networks and, where possible, e-business networks using new information technologies; elimination of gendered constraints in women’s entrepreneurship- under gender-constrained conditions, it is important that governments introduce measures to eliminate discriminatory practices against women’s entrepreneurship; conducive polices and strategies that address gender imbalance must be in place, prioritizing and enabling gender equity not only in access and use but in the derived benefits and opportunities.
Emphasis on market-friendly macroeconomic and development strategies in recent years has resulted in deleterious effects on growth and well-being, and has done little to promote greater gender equality. To support this argument the paper titled “Gender Inequality in a Globalising world” highlights that while Asian growth was rapid, it was not enough to produce greater gender equality. Women’s concentration in mobile export industries that face severe competition from other low-wage countries reduces their bargaining power and inhibits closure of gender wage gaps.
The study further states that well-being of women in developing countries relies in part on reforming the austerity policies that have influenced macroeconomic policies in developed countries. These policies have also had negative effects on women in developed economies, circumscribing access to employment and wages, and contributing to too little funding for public goods. There are therefore common concerns amongst women in the global north and south in a number of areas, including capital controls, alternative roles for central banks, limited firm mobility, and labour standards.
The paper in essence points out that gender-equitable macroeconomic and development policies are required in four critical areas such as expansionary macroeconomic policy, financial market regulation, regulation of trade and investment flows and gender-sensitive public sector spending.
The women in most part of the world remained a deprived lot compared to men. The responsibilities they hold in terms of maintaining the family and house hold jobs sometimes do not allow them to take up certain kind of employment. In a study conducted by International Trade Centre (ITC) It is observed that women’s equal participation in trading activities is hampered by their work and family responsibilities; their difficulty in accessing capital; and their lack of relevant training and skills or limited contacts with national and international trade networks. The study “Strategies and Approaches for Gender Mainstreaming in International Trade” aims to highlight such constraints faced by women. It recommends some action plans which are essential, argues the paper, for effective participation of women in international trade. They include measures like facilitating women’s familiarity with and expertise in addressing Multilateral Trading System (MTS) issues by including women in national networks of MTS experts and informing women entrepreneurs about potential benefits arising from the MTS regulations;improving awareness of gender issues amongst international stakeholders and include representatives of women entrepreneurs and producers groups in the process of designing Trade Development Strategies; advising national trade support institutions on how to mainstream gender into their operations; strengthening women entrepreneurs’ associations and provide them with linkages to existing trade support institutions; supporting new trade opportunities of particular interest to women entrepreneurs in the area of services. Design training tools and learning systems to build Competitiveness of women run enterprises taking into consideration specific needs and constraints of women.
The recent interest in women’s entrepreneurship in the Middle East and North Africa region has spurred a number of studies that aim to identify the challenges facing women
entrepreneurs. In all these studies, women entrepreneurs felt empowered. Because the data in most of these studies did not cover male entrepreneurs, however, it is not possible to say for certain whether they faced gender-based barriers or barriers common to everyone.
This latest study “The environment for women’s entrepreneurship in the Middle East and North Africa Region” by Chamlou is different. Its objective is to provide a better understanding of barriers to investment and doing business that may be common to all investors and those that affect women entrepreneurs disproportionately. The report examines newly available data from over 5,100 surveyed firms in the formal sector in eight Middle Eastern countries (Egypt, Jordan, Lebanon, Morocco, Saudi Arabia, Syria, Gaza and the West Bank, and Yemen). These surveys detail firm characteristics and the responses of male- and female-owned firms to questions about perceived barriers along 18 categories of the investment climate. The study aims to provide an overview of the characteristics of female-owned firms in the region; analyze gender-specific barriers that exist across the region or within countries; identify other factors outside the business environment that might affect women’s entrepreneurship. The report finishes with policy recommendations on how to reduce the identified barriers and create a level playing field for women entrepreneurs.
Reviewing a host of literature on trade and gender one is almost certain to say that goal of empowering women through trade still remains an unaccomplished task. It is a pressing issue for women of most parts of the world. Globalization and trade liberalization may have been conceived as an appropriate medium to achieve that MDG, yet the policies and strategies implemented so far are impervious to their upliftment and well being. Policy recommendations may be made specific; prescription ‘one size fits all’ is proving unproductive. At this critical juncture all concerned –the government, private sector, NGOs, community, and international organizations like, WB, IMF, WTO and above all UN must share a common responsibility.
1 The author is Editor, Indian Institute of Foreign Trade, New Delhi, India.
2 UNIFEM, Promoting Women’s Economic Security and Rights Online Resource http://www.unifem.org/index.pho?f_page_pid=15
3 http://www.gurn.info/topic/trade
4 Robert E. Scott, “The High Price of ‘Free’ Trade: NAFTA’s failure has cost the United States Across the Nation.” Economic Policy Institute. November, 2003
References
Chamlou, N. 2008, “The environment for women’s entrepreneurship in the Middle East and North Africa Region”, World Bank, Washington, USA.
Developing women’s Entrepreneurship and E-business in Green Cooperatives in the Asian and Pacific Region (2007) UNESCAP.
Kabir, Naila 2003, Gender Mainstreaming in Poverty Eradication and the Millennium Development Goals, Commonwealth Secretariat, London.
Oostendorp, R. 2004, “ Globalization and the Gender Wage Gap” World Bank Policy Research Working Paper 3256, April 2004.
Oxfam, Trading away our rights: Women working in global supply chains, London, 2004.
Maria Pia Hernandez, 2005, “Incorporating Gender Considerations for the Designation of Special Products in WTO Agriculture Negotiations”, IGTN, Geneva, Switzerland.
Seguino, S., 2006, Gender Inequality in a Globalising World, University of Utah, USA.
Strategies and Approaches for Gender Mainstreaming in International Trade International Trade Centre, 2001.
