Trade, gender and the search for alternatives

It is women who bear the brunt of the effects of trade liberalization on social development through a lack of access to basic social services. But, writes Jennifer Chiriga from the Alternative Information and Development Centre, one of the major impacts of trade on women is how the capitalist ethic plays into building masculinity while at the same time playing down the role that women play in society. Alternatives are in the offing, she argues.

The defining trends of current trade and economic relations across the globe and the process through which current international economic relations are played out, and markets for products and services are increasingly being defined, all fall under the rubric of globalisation.

International trade expansion has in the last few decades been manifesting a profound transformation, with the emergence of integration of economic activity, including elimination of restrictions on the free movement across borders of capital, goods, resources, technology and services. All regions of the world are coming closer together through intensified trade, investment, financial transactions, and information technology. Unfortunately the global expansion has not affected developing regions evenly, and Africa continues to lag behind.

The main feature of globalisation is a surge in the power of global capital and reorganizing of global production through multi-national corporations that wield tremendous influence over economies. Globalisation has been quite aptly cited as “largely the game of the powerful…the strong do what they will, and the weak must surrender what they cannot protect” (Tandon, cited in Vale and Maseko, 1998).

Other defining characteristics of globalisation are a more integrated global economy with interdependencies among nations, but the benefits of which accrue to developed economies; decline in investment in production, with companies moving more towards speculative investment, which brings faster and higher profits; diminishing public sector, with the state becoming more business oriented through privatisation of state enterprises, and the phenomenal power of multinational corporations that have the clout to drive global trade and influence governments, as seen by the power of the World Bank (WB), International Monetary Fund (IMF) and World Trade Organisation (WTO).

The WTO is not just about trade, it is about power and control of resources. Developed countries shape and control the trade regimes that affect developing countries and that lead to de-industrialisation, job losses and worsening of poverty. This is evidenced by the experience of developing countries that are undergoing IMF/World Bank enforced trade through neo-liberal structural adjustment programmes, who have been forced to liberalise their external trade, and have subsequently suffered destruction of local industries leading to massive retrenchments.

In spite of the conventional understanding about the creation of an “open” global free trade system, there is very limited “free trade”, particularly for African countries. The relevance of the WTO in the world system is that it is seen as the central institution in a centralised global economy. This has major relevance for African countries as they grapple with huge development challenges. The external orientation of African countries has led to opening up of global markets, resulting in flooding of imports and domination of foreign products e.g. agricultural produce and textiles to name a few, and this has led to massive loss of jobs in rural and urban sectors, threats to food security and abandonment of the social development project. The effects of trade liberalisation on social development is evidenced by lack of access to basic social services, a scenario in which women bear the greater burden.

Gender and trade

One of the major factors in gender inequality relates to how negative perceptions mould gender differences and how the capitalist ethic plays into building masculinity while at the same time playing down the role that women play in society where they occupy the role of secondary earners. Gender is a key determinant of vulnerability to poverty. And women, due to their disadvantaged position in the labour market, hold lower paid jobs, which require lower level of skills etc.

Although gender analysts have for a long time emphasised the negative impacts of trade liberalisation, the link between gender and trade has been tenuous, largely because perhaps gender considerations have been perceived as irrelevant and having no place at the negotiation table where trade issues are discussed. Looked at through a gender prism, trade policies have grave implications for development and well-being of women, due to impact on employment, poverty and the social burden carried by women. Although women are an important and significant constituency, trade policy in the WTO is formulated with no evidence of a gender perspective.

A study on policy links between gender and trade (Informal Working Group on Gender and Trade, 1998) emerged with a number of “reality points” that link gender and trade, and make a case for the importance of putting gender analysis at the center of trade policy:

a) Changes in social service delivery affect women to a greater extent

Trade policies and trade liberalisation can affect the ability of governments to finance social sector expenditure. The observation is that any revenue shortfalls leading to reduction of government expenditure affects social service delivery, and the burden is shifted to the households and women. The study states that in 1993 women contributed over US$11 trillion worth of household work to the world economy, and that trade policy should therefore not ignore women’s unwaged work in social reproduction. Gender planning should be built into the design of trade policies. A very important point made is that social development should be the bedrock of trade policy since women’s traditional roles do not make it easy for them to access opportunities to engage in international trade.

b) Entrenched gender inequalities in the labour market are unfavourable to women

The labour market tends to be segmented on gender lines with inequalities in income, career advancement and conditions of work. Traditionally expansion of trade is based on access to low wage labour, which is mainly female labour. Liberalisation of trade and the surge of foreign capital and transnational corporations, maintain competitiveness through minimising costs of production, especially labour costs. While one can generalise the negative effects on the labour market, for women the impact is higher – they have lower wages and less bargaining power because unions tend to be dominated by male leadership. The danger of trade liberalisation bringing more hardship for women is very real – because sub-contracting and flexible work allows corporations to avoid direct financial responsibility for workers.

c) Women have lesser access to economic resources: credit, skills, technical assistance

Institutionalised discrimination affects women’s access to land and credit from financial institutions, and therefore impacts in a very fundamental way on their role in the economy. When trade barriers are reduced and an infusion of cheaper imports come into the market, women may lose out especially when quality control becomes an issue and introduces lack of competitiveness.

One of the major gaps is that while WTO rules encompass all levels of economic development, there is no gender analysis that assesses these rules in a structured way. While there is a ready source of scientific research documenting the realities of women’s lives and how the economy impacts on them, the conceptual and policy links between gender and trade have to be given more attention and attempts to generate further analysis on the link between gender and trade policy, should raise the following questions:

- Are trade policies geared towards elimination of poverty and gender inequality?

- Do trade rules prevent government and private business from formulating gender-sensitive policies;

- Are trade policies based on competition, which ignores reproductive tasks i.e. reinforcing the masculine model of superiority.

Even as we grapple with the specific gender dimensions, trade policy should not be approached in isolation of macro level economic policy. In this context, the discussion on alternatives raises very broad issues.

Alternative strategies for development

Change is possible through a break from the mainstream model of dominant global capital. The emergence of national, regional and international forums such as the Africa Social Forum (ASF) and World Social Forum (WSF) is a sign that there is an increasing trend of organisations and social movements mobilising to reflect and exchange ideas on alternative visions and actions. The WSF was conceived as a response to the growing struggle against neo-liberalism and an alternative to the World Economic Forum where business leaders from all over the world get together to discuss the economic state of the world, and is an arena of debate, as well as an opportunity for social movements and activists from the north and south to meet and exchange ideas.

There is already a powerful discourse, which is however being undermined by concentration of wealth and anti-democratic power of powerful global corporations. Nevertheless, emergence of regionalism as an alternative, is gaining ground as a possible solution to the dislocation of Africa’s economic potential.

The questions to pose in any deliberations on alternatives are:

- how to engender the political will necessary for the regional project;

- how the geo-political concept of regionalism can be harnessed to engage and challenge the globalised system on a stronger footing;

- how Africa can turn regional integration and cooperation groupings into real frameworks for alternative models of development.

Africa already has some examples of a unique regional integration model that have roots in pan African solidarity. There is potential for strengthened regional blocs to encompass development needs of emerging economies. Regional integration has the potential to break the leverage that industrial countries have over Africa, whose governments need to realise that engaging the local with the regional and continental is the future in terms of economic development.

In response to the questions raised above, one of the key considerations is that social mobilisation of strong social movements and organisations can provide the pressure and impetus that will eventually cause a shift in the global balance of power. Social movements should be the foundation of a people-based process that promotes developmental regionalism, centred on human rights, women’s rights and social justice. Commitment should be to a unified region in which local and community-based development is the primary underpinning of national and regional development programmes.

Through strategic interdependencies we need to redirect trade to domestic and regional spaces, increase manufacturing and production and add value to our primary products. In addition the liberalisation and privatisation policies should be replaced and we should create trade and development cooperation agreements which reflect the realities and needs of the people, and which are not pre-determined or constricted by compliance with WTO terms and conditionalities.

Cooperative development would ensure, for example, that shared resources like energy, water etc, could be approached holistically for the benefit of the whole region. But as long as powerful economies like South Africa continue following a sub-imperialist agenda, it will be a lost battle. African governments must cooperate, coordinate and combine. As someone said at a workshop recently, “extroverted economies will get us nowhere".

* Jennifer Chiriga is Unit Coordinator, Globalisation and Alternatives Unit, Alternative Information and Development Centre (AIDC), Cape Town

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Article traduit de l’anglais par Frances Chevalier et Kesini Murugesan, de l’Université du Cap, Afrique du Sud.