The Impact of China's Agricultural Overseas Investment on Gender Equality
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The Impact of China's Agricultural Overseas Investment on Gender Equality A Case Study of the Investment of China's Agricultural Enterprises in Laos and Cambodia Huang Siran, Liu Haoxue, Zhou Xuan, Zhang Hongfu Financial aid provided by: Ford Foundation Acknowledgment This work would not have been possible without the financial support of the Ford Foundation Beijing Office. We are especially indebted to Ms. Susan Jolly, Program Officer at Ford Foundation Beijing Office, and Ms. Li Xinfang, Program Assistant at Ford Foundation Beijing Office. We are grateful to all of those who provided us with academic support and professional guidance. We would especially like to thank Dr. Duan Zhirong at Tsinghua University, Ms. Cai Yiping at Development Alternatives with Women for a New Era, Dr. Liu Xiaonan at China University of Political Science and Law, Ms. Zhou Jie at International Labor’s Union, Dr. Guo Peiyuan at SynTao. Co., and Mr. Wang Xin at SynTao. Co. During the field research stage, we have had immense support from industrial associations and Chinese overseas corporations. We would like to thank Yunnan Alternative Development Association, Yunnan State Farms Group Co. Ltd., Yunnan Pu’er Zhonghe Rubber Co., Guangxi Forword Agricultural Technology Investment (in no particular order). We are very thankful to all stakeholder experts who provided valuable feedback and suggestions to our draft report: Ms. Cai Feifei, Ms. Cai Yiping, Mr. Chen Fu, Ms. Du Yijia, Dr. Duan Zhirong, Mr. Huang He, Mr. Qiu Aimiao, Dr. Liu Xiaonan, Dr. Tong Xin, Mr. Wang Chao, Ms. Wang Yalin, Dr. Wu Lijuan, Ms. Zeng Lu, Ms. Zhang Jingwei (in alphabetical order). We also would like to thank Mr. Jia Chenxuan, Ms. Li Qiaochu and Ms. Chen Si for their contribution to literature review; Ms. Shao Xinping and Ms. Jin Chenyang for their contribution to data analysis. Company profile SynTao Co., Ltd., founded in 2005, is a leading independent consultancy promoting sustainability and responsibility in China. With our global vision and local practice, we provide consulting, education, and investment services on Corporate Social Responsibility (CSR). As one of the earliest professional CSR consultants, SynTao has accumulated rich experience in fields of corporate social responsibility and sustainable development. Our services cover CSR strategy and management, report coaching/writing, stakeholder engagement and communication, CSR project design, monitoring and evaluation, corporate case development, etc. Now we have offices in Beijing, Shanghai, Guangzhou, Chengdu, Shenzhen, Chongqing and Washington D.C. Our website: http://www.syntao.com Abstract With the continuous acceleration of China's "going global" strategy and the Belt and Road Initiative, China's agricultural overseas investment enterprises (CAOIEs) are faced with increasingly serious social responsibility risks despite the rapid growth. Paying attention to gender equality and improving gender equality issue management capabilities to cope with stakeholder demands are of great significance for CAOIEs to fulfill their social responsibilities, avoid related investment risks, and create a favorable business environment. Through in-depth research of CAOIEs, this report takes a systematic overview of the management of and practices related to gender equality issues that occur when CAOIEs invest overseas. We found that CAOIEs promote local economic and social development by boosting local farmers' incomes, providing training and building infrastructure, so as to benefit women farmers and local residents in three major areas of the economy: medical, healthcare, and education. At the same time, however, CAOIEs still have a very limited awareness of and give little attention to gender equality issues and lack the recognition of the impact of these issues on risk and opportunity, the two key factors relevant to the sustainable operation of enterprises. Without an up to date perspective on gender, CAOIEs will carry out business operations that will fail to benefit local women, and in some cases even widen the already existing gender gap in local areas. Agricultural enterprises' workplaces, products, and their communities are closely related to women's interests as they provide women with work opportunities and development space and also empower women. They are of great significance for corporate and local economic development. Based on the analysis of the investment practices of CAOIEs that invest in Laos and Cambodia, we think that CAOIEs in the future should pay more attention to the important relationship that women's issues have with sustainable corporate development. The enterprises should actively respond to the challenges posed by these gender-related issues and turn challenges into opportunities. 01 Contents Abstract........................................................ 1 01 Introduction 4 1.1. Research background........................................ 5 1.2. Research purpose.......................................... 5 1.3. Research methods.......................................... 6 1.4. Limitations................................................ 6 1.5. Key concepts.............................................. 7 Gender equality as a key factor in promoting the 02 sustainability CAOIEs 8 2.1. Mechanisms for promoting the sustainable development of CAOIEs through gender equality...................................... 9 2.2. The Focus of the international community on gender equality through enterprise investment........................................ 10 2.3. China's governmental focus on enterprises promoting gender equality.................................................. 10 The General Situation of Social Development and the Status 03 Quo of Gender Equality Advancement in Laos and Cambodia 11 3.1. Laos.................................................... 12 3.1.1.Brief introduction to Laos..................................... 12 3.1.2.Agriculture in Laos.......................................... 13 3.1.3.China's agricultural investment in Laos........................... 13 3.1.4.Development and the current situation of gender equality in Laos........ 14 3.1.5.Gender gap in the rural and agricultural areas of Laos................ 16 3.2. Cambodia................................................ 19 3.2.1.Brief introduction to Cambodia................................. 19 3.2.2.Agriculture in Cambodia...................................... 19 3.2.3.China's agricultural investment in Cambodia....................... 20 3.2.4.The development of gender equality and its current situation in Cambodia.. 21 3.2.5.Gender gap in Cambodia's rural areas and agricultural field............ 22 Practice and Observation — Influence of CAOIEs on the 04 Development of Gender Equality in the Host Country 25 4.1. The gender equality consciousness of the management staff........... 28 4.2. Economic Impact of the Enterprises On the Local Women............. 31 4.2.1.Employment opportunities..................................... 31 4.2.2.Employment models......................................... 32 4.2.3.Income.................................................. 33 4.2.4.Salary................................................... 36 4.2.5.Welfare benefits............................................ 37 4.2.6.Land and production data..................................... 37 4.2.7.The direct and indirect impacts on the community economy............ 39 4.3. The impacts of enterprises on medical services and the health of local females.................................................. 40 4.3.1.Childbirth and medical treatment................................ 40 4.3.2.Safe Use of Pesticides and Fertilizers............................ 41 4.3.3.Health facilities and garbage disposal............................ 42 4.3.4.Protection of water resources.................................. 44 4.3.5.Work at night.............................................. 45 4.4. Impact of enterprises on local women's education................... 47 4.4.1.Professional technical training.................................. 47 4.4.2.Leadership training.......................................... 49 4.4.3.Support for community educational resources...................... 49 4.4.4.School-enterprise educational cooperation......................... 50 05 Suggestions 51 Afterword....................................................... 56 Bibliography..................................................... 57 Appendix....................................................... 61 01 Introduction 1.Research background 4.Limitations 2.Research purpose 5.Key concepts 3.Research methods Introduction 1.1 Research background By the end of 2016, 24,400 domestic investors in China have set up 37,200 overseas enterprises, scattered in 190 countries and regions worldwide. At the end of the year, the total assets of overseas enterprises amounted to USD 5 trillion.1 From 2003 to 2016, China's outward foreign direct investment (FDI) increased for 14 years straight. The proportion of investment flows increased from 0.5% in 2002 to 13.5% in 2016, ranking second in the world (countries and regions included). China has thus begun to play a more important role in the global FDI market.2 In response to the growing competition in the international market, CAOIEs are also facing increasingly serious social responsibility risks, especially those related to gender equality issues. According to the 2017 Report on the Sustainable Development of Chinese Enterprises Overseas, 38 stakeholders including the host governments,