Transcript CYCLE OF AID, DEBT, TRADE

Yassine Fall
Senior Economic Advisor, UNIFEM
Senior Policy Advisor, Millennium Project
ENAP, June / 2005
Gender inequality
• Gender inequality is about unequal rights for
power control between women and men
• Within every unit, that of family, community,
the weakest and most vulnerable are women
and girl children
• Gender inequality is lack of access to and
control over resources, opinion, protection,
shelter, skills, learning and overall
development
Racial Discrimination
• A violation of all forms of human rights
principles and internationally agreed legal
instruments
• Generates lack of opportunity, exclusion
lack of access to national resources and
assets and inequitable budget allocation
• Increased burden of care and least rights
for women
Poverty
• Poverty: beyond low income and consume
• Includes: exclusion, lack of rights and
choices.
• Affects women and men differently because
of their societal roles, practical and strategic
needs.
• Exacerbates gender inequality and vice
versa,
• fosters unbalanced rights and obligations
Gender, Race and Poverty
• Combined gender and racial discrimination
aggravate poverty
• Poverty analysis in racially discriminated,
class or ethnic divided society cannot be
analyzed outside those social factors
• Race analysis of poverty is sine qua non
conditions for policy needs assessment or
planning poverty interventions.
Macroeconomics
• Macroeconomics studies the behavior
of eco agents like households,
enterprises and the state and how
decisions or changes in their behavior
influence each other or the market.
• Macroeconomics is not gender or race
neutral, each changes influence
households and men and women inside
households differently.
A macro model:
Y = C + G + I + (X-M)
• Y = National Income, GDP, measument
of the value of economic activity
• C = Consumption
• G = Government Expenditure
• I = Private Sector Investment
• X = Exports
• M = Imports
• Ignores social reproduction!!!!
Gender and Racial Inequalities
Y = C + I + G + (X-M) + (W+WR)
W = unaccounted for Care work
WR = Unaccounted for Care work from
racially discriminated groups
Y analyzed from point of public policy
point of view:
- Taxation, social reproductive tax
- Expenditure, social substitution
Gender and Racial Inequalities
Y = C + I + G + (X-M) + (W+WR)
• What happens to poor women farmers
food producers and processors?
• when G is reduced with cuts in rural
subsidies (farm inputs, farm Implants,
extension workers, training, land title
with no means to exploit?
• What happens to local domestic
producers and market?
Gender and Racial Inequalities
Y = C + I + G + (X-M) + (W+WR)
What happens when Government has to
keep public expenditure down or prioritize in
budget allocation?
• Women and men’s care work?
• Funding Gender based violence
• Reproductive health
• Employment?
• Freedom to choose?
• Participation Representation
Gender and Racial Inequalities
Y = C + I + G + (X-M) + (W+WR)
• What happens when racial equity is not
integrated into public policy?
• What happens poverty resource allocation
is considered “racially blind”, given that it
is supposed to cater for all poor?
• What happens when institutions that
ensure that racial equity and gender
equality are not in placed or not
empowered?
MDG1, MDG3, MDG8
Recommendations of Task Forces on:
• Poverty and economic Development
• Gender equality and empowerment of
women
• Global Partnership: AID, TRADE, DEBT
CYCLE OF AID, DEBT, TRADE
Revenues
from TRADE
used to
pay DEBT
AID used to
promote
UNEQUAL
TRADE
DEBT SERVICING,
and Undemocratic
Governance
leads to
asking for
more AID
Looking at the big Picture: Circular
Flow of Resources…..
Foreign Sector
Wage payment
Households
Labor supply
Imports
payments
Private Sector
Consumer demand
Consumer goods
Financial Institutions
Borrowing
Repaying
Government
Circular Flow and market led
Resource Allocation
Foreign banks
ForeignMark
Wages
Imports
payments
Gender distribution of labor
Households
Private Sector
Consumer demand
Consumer goods
Financial Institutions
Borrowing
Repaying
Government
Trade Liberalization
•
•
•
•
Removal Tariffs and
Loss of corporate and export taxes by Gt.
Removal of subsidies
Privatization of land and utilities with its
corollary cost recovery
• Commodification of agriculture
• Removal of labor laws for worker’s rights
and decent work to accomodate EPZ
Adam Smith on TRADE in the
Wealth of Nations II said:
‘Were those high duties and prohibitions
taken away all at once, cheaper foreign
goods of the same kind might be
poured so fast into the home market as
to deprive all at once many thousands
of our people of their ordinary
employment and means of subsistence.
The disorder which this would
occasion might no doubt be very
considerable.’
Fredrich List, in National System of
Political Economy
• “free trade is the policy of the strong”
• Because every industrialized nation
has pursued trade protection for its
infant industries, Once they grow
strong enough to withstand
international competition they lower
their trade barriers and ask others to do
the same.
GOAL8: AID, Trade, Debt
•
•
•
•
Revisit unjust trade regime
Debt cancellation is a must
Untied aid is non negotiable
justice in global trade is also critical for
increased resources for poverty
elimination
LT Benefits of FDI and Trade
• What happens to other variables when
too much emphasis is put on I + (XM)???in the Y = C + G + I + (X-M) + W
• When will it ever trickle down?
• To Poverty?
• Gender equality?
• Development?
Scaling up interventions
• Addressing Racial and Gender
inequality
• Human rights
• Social investment
• Stronger Public Sector
• Domestic private sector empowered
• Land titles and deeds for landless Poor
farmers
Scaling up interventions
• Only a strong public sector can ensure
implementation of Task Force MP
recommendations
• Responses to absorptive Capacity
• Citizens Policing of Poverty Fund
through Participation and
representation
• Public-Community Partnership
Scaling up interventions
• Gender Equality and Women’s
Empowerment as unique alternative for
successful MDGs Outcomes
• Enabling Women to enjoy their human
rights and implementing TF3 rec:
• Building a representative multi level
leadership
• Enabling citizens, women to develop
accountability systems
Gender/Racial Equality Needs
Assessment
Assessment of gender and racially related
economic and social inequalities, with particular
attention to country selected focus sectors
Estimation of resources needed to implement
comprehensive gender and racial equalityrelated interventions across multiple sectors
Advocacy tool to ensure monitoring by
beneficiaries that appropriate gender and racial
equality-related interventions are included and
budgeted for across all other sectors
Benchmarks for integrating gender
equality in needs assessment
1 Population identification
Human Rights
Representation
Participation
Cost
Benefit
2 Sector Analysis.
3 Interventions and
policy instruments
4 Implementation
5. Monitoring
25
Is there genuine Participation?
• Participation refers here to playing a catalytic
and innovative role providing substantive
content in developing analysis, identifying
priority needs and partners, implementing
actions, monitoring outcomes and developing
advocacy approaches and language.
• In all stages of needs assessment It would be
critical to articulate the way in which different
groups, women and men and other social
groups are making a difference in moving the
process forward in setting the national and local
MDG agenda.
Is there genuine Representation?
• Are social groups differentiated by gender, race, age , region, social
status identified by different stakeholders like Parliamentarian,
kilombolas and kilombolos, Government, women and men NGO,
human rights groups, people living with disabilities, network of
people living with HIV, etc?
• Are there skills building activities for those who need to be brought
up to speed on MDG?
• What kind of information is being provided to them?
• Are they proportionally represented at all levels including
stakeholder meeting, sector working groups, team of consultant,
advocacy and campaigning?
• Are their concerns being genuinely included in all priority sectors
and in the final report and identified programs?
• Do they feel their expectation of representation are being met, why
or why not?
Cost
•
•
•
•
Human, time and work burden as cost
Financial cost
Material
How to factor in unpaid work in Household
contribution?
• Who should pay or not pay?
• What kind of tax system is more
appropriate to empower women and the
poorest?
Benefits
• Gender Equality in budget allocation
• Employment benefits and empowerment
of women
• Identification of hidden gender
interventions
• Advocacy pushing the MDG envelope
Stages of needs assessment
Institutions
(Gov, HH, NGO),
Stakeholder- gender,
Regional division, +
social condition,
Age, etc.
What contribution
Does each make
in Provision of
services in focus +
sector
Identify Gender
Estimate
Equality, synergies
resource
and cross linkages
+ Needs and costs
between sectors
Investment Model:
who pays? Under what
conditions? Household
contribution and cost
recovery from who?
Multiple Dimensions of Analysis
Health
Lands/housi
ng
Water/Sanitatio
n
Environme
nt
Educatio
n
Energy
Hunger
Macroe
co
n
Household
Community,
Government,
Intern.
Institutions,
NGOs
♀
Voluntary
slums
work
Collection,
household
use
Forest pdcts
Pre-
Food
Time
Provision of
services
Care to HIV
suffere
rs
Family farm
Sanitation
maintenan
ce
Collection
for
food,
medic
ine
energy
pro
visi
on
for
hh
nee
ds
Resources:
Human,
Material
and /or
Financial
User fee
Funds
mobili
z
User fees
Poor
Mngmt comitee
sch
ool
car
e
and
edu
cati
on
prod
ucti
on,
proc
essi
ng,
nutr
ition
an
d
w
or
k
bu
rd
en
Cost
re
co
ve
ry
Gender
bu
dg
et
Taxatio
n
Management
Decision
Comitte
Committees
Gender equality in sectors and Genderspecific interventions
Sector-specific
Interventions to
Awareness
Sensitization
and Training
Subsidies Prevention
reach women
Systemic
of violence Issues
Gender and racial Equalityrelated Interventions
Total Gender Racial Equality/
Human Rights -related Needs
Investment Model addresses three
Sources of Funding
1. Government Expenditures on the MDGs are
provisionally assumed can be increased by 4 percent of
GDP from now to 2015
2. Household contributions from poorest groups should
be assessed on the basis of:
 Extreme low level of income of the poorest users’ ability
to pay
 poor women’s time and work burden in provision of
social services
 the negative incentive effect of user fees in essential
services
 In kind contribution of users
3. External finance is required to close the financing