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Analyzing how gender, racial discrimination, and poverty intersect in macroeconomics, impacting resource allocation, policies, and public expenditure. Explore implications on women, care work, government budgeting, and societal equality.
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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 InequalitiesY = 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 InequalitiesY = 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 InequalitiesY = 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 InequalitiesY = 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
Looking at the big Picture: Circular Flow of Resources….. Foreign Sector Wage payment Exports revenues Imports payments Labor supply Private Sector Households Consumer demand Consumer goods Credit Credit Household savings Investment savings Government expenditures Taxes from households Financial Institutions Taxes from firms Borrowing Repaying provision of Government Government social services
Circular Flow and market led Resource Allocation Foreign banks ForeignMark Exports revenues Wages Imports payments Gender distribution of labor Private Sector Households Consumer demand Consumer goods Credit Credit Household savings savings Government Taxes from households Financial Institutions Investments Taxes from firms private sector Borrowing Repaying provision of Government Government in foreign social services
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 + (X-M)???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 equality-related 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 2 Sector Analysis. Human Rights Representation Participation Cost Benefit 3 Interventions and policy instruments 4 Implementation 5. Monitoring
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 Equality, synergies and cross linkages between sectors Estimate resource Needs and costs + + + Investment Model: who pays? Under what conditions?Household contribution and cost recovery from who?
Gender equality in sectors and Gender-specific interventions Sector-specific Interventions to reach women Gender and racial Equality-related Interventions Total Gender Racial Equality/ Human Rights -related Needs
Investment Model addresses three Sources of Funding • Government Expenditures on the MDGs are provisionally assumed can be increased by 4 percent of GDP from now to 2015 • 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