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Gender Dimensions of Trade Facilitation Evidence from Bangladesh, Bhutan, India, Nepal Gender Dimensions of Trade Facilitation Evidence from Bangladesh, Bhutan, India, Nepal

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This Compendium has been published as a part of CUTS project entitled, 'Gender Dimensions of Trade Facilitation Agreement: Evidence from Bangladesh, Bhutan, India and Nepal' undertaken with the support of the Foreign, Commonwealth and Development Office, UK and in partnership with Bangladesh Women Chamber of Commerce and Industry; Bhutan Media & Communications Institute; and South Asia Watch on Trade, Economics & Environment, Nepal.

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#2012 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 3

Contents

Acknowledgement ...... 5 Abbreviations ...... 6 Contributors ...... 11 Preface ...... 14 Executive Summary ...... 16

Bangladesh Facilitating Trade for Economic Empowerment of Women Entrepreneurs in Bangladesh: Barriers and Opportunities Ruba Rummana, Associate Professor, Department of Arts and Science, Ahsanulla University of Science & Technology ...... 21

Trade Associations, Women’s Entrepreneurship Associations and Support to Women Entrepreneurs Maheen Sultan, Visiting Fellow & Head, Gender Studies Cluster, BRAC University, Dhaka ...... 35

Trade-Related Legal Instruments and their Implications on Women Traders: A Case Study of Bangladesh Nasreen Begum, Member (Law), Bangladesh Competition Commission ...... 47

Bhutan Economic Empowerment of Women: Employment in Bhutan Kunzang Lhamu, Director, National Commission for Women and Children, Royal Government of Bhutan ...... 59

Women’s Economic Empowerment from Bhutan’s Perspective: Role of MSMEs Manju Giri, Gender & Social Development Expert, Thimphu ...... 70

Women Entrepreneurs of Bhutan: A Yin-Yang Scenario in Women’s Economic Empowerment & Liberty Binai Lama, UN World Food Programme, Thimphu ...... 80 4 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

India Gender Inequality Dimensions of Trade Facilitation Bibek Ray Choudhuri, Associate Professor, Indian Institute of Foreign Trade, ...... 95

Women Entrepreneurship in India and their Economic Empowerment Vikas Deep, Assistant Professor, Punjabi University, Patiala ...... 109

Women in Informal Trade along North-eastern Borders of India Hasina Kharbhih, Founder Impulse NGO Network, Shillong ...... 115

Nepal Gender Responsive Trade Policies in Nepal Biswo Poudel, Associate Professor, University ...... 129

Women’s Empowerment and Development Outcomes:Policy Implications for Enhancing Women’s Participation in Business and Trade in Nepal Bina Pradhan, Gender Expert & Social Economist, Sanepa, Kathmandu ...... 139

What Drives Nepalese Women Venturing into Informal Entrepreneurial Sector? Kamala Gurung, Gender and Natural Resource Management Specialist, International Centre for Integrated Mountain Development (ICIMOD) ...... 153 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 5

Acknowledgement

This compendium, a collection of papers by selected eminent scholars from Bangladesh, Bhutan, India, Nepal (BBIN), is an output of a project titled “Gender Dimension of Trade Facilitation: Evidence from Bangladesh, Bhutan, India and Nepal supported by the Foreign, Commonwealth and Development Office (FCDO), of the United Kingdom under its Asia Regional Trade and Connectivity Programme.

This project aims to study the gender dimensions of trade facilitation by collecting evidence from women-led/managed/owned Micro, Small and Medium Enterprises (MSMEs) in BBIN. Over two years, the project undertook several activities which included field-based research, policy advocacy, awareness generation and capacity building through targeted training programmes for women entrepreneurs.

The project team would like to acknowledge all the support availed during the study from various individuals and organisations. First of all, we offer our sincere thanks to the FCDO of the United Kingdom for their funding support and continuous guidance.

Special thanks to Duncan Overfield, Deputy Development Director Asia Regional; Mohit Sippy, Senior Programme and Policy Manager; and Anu Sareen, Programme Manager of FCDO for their support throughout the entire project duration. Their constructive comments on the earlier drafts of these papers have helped in improving their quality.

The project team would also like to thank all the contributors of this compendium who have written excellent research papers on this very important but neglected subject. We are also highly grateful for their role as a member of the Project Advisory Committee.

We express sincere gratitude for the assistance and collaboration of the following organisations – Bangladesh Women Chamber of Commerce and Industry (BWCCI), Bhutan Media and Communications Institute (BMCI), and South Asia Watch on Trade, Economics & Environment (SAWTEE), Nepal who supported CUTS in the fieldwork and implementing other project activities in their respective countries.

We also thank Madhuri Vasnani, Mukesh Tyagi and Rajkumar Trivedi of our editorial and layout team for final editing and layout, andGCJainandLNSharma of our finance team. Many other names deserve special mention but could not be referred here for want of anonymity. We thank them all for their support. Finally, any error that may have remained is solely our responsibility.

Project Team CUTS Centre for International Trade, Economics & Environment (CUTS CITEE) 6 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Abbreviations

ADB Asian Development Bank BAOWE Bhutan Association of Women Entrepreneurs BAPA Bangladesh Agro-Processors Association BASIS Bangladesh Association for Software and Information Services BBIN Bangladesh, Bhutan, India, Nepal BBS Bangladesh Bureau of Statistics BCSR Bhutan Civil Services Rules and Regulations BDBL Bhutan Development Bank Limited BDFC Bhutan Development Finance Corporation BDT Bangladesh Taka BEPZA Bangladesh Export Processing Zones Authority BFWE Bangladesh Federation of Women Entrepreneurs BGEDSS Bhutan Gender Equality Diagnostic of Selected Sectors BITM BASIS Institute of Technology and Management BKMEA Bangladesh Knitwear Manufacturers and Exporters Association BMCI Bhutan Media and Communications Institute BMEA Bangladesh Garment Manufacturers and Exporters Association BOPMA Bangladesh Organic Products Manufacturers Association BPFA Beijing Declaration and Platform for Action BPO Business Process Outsourcing BRAC Bangladesh Rehabilitation Assistance Committee BSCIC Bangladesh Small & Cottage Industry Corporation BTN BWCCI Bangladesh Women Chamber of Commerce and Industry BWF BASIS Women’s Forum CBS Central Bureau of Statistics CEDAW Convention on the Elimination of All Forms of Discrimination Against Women COEL Centre of Excellence for Leather CSF Cost-Sharing Facility CSIDB Cottage and Small Industries Development Board CSMI Cottage, Small and Medium Industries CSOs Civil Society Organisations CSR Corporate Social Responsibility Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 7

CUTS Consumer Unity & Trust Society CWCCI Women Chamber of Commerce & Industry DCSI Department of Cottage and Small Industries DTIS Diagnostic Trade Integration Studies EBL Eastern Bank Limited ECA Ecological Critical Area ECTS Electronic Cargo Tracking System EDI Electronic Data Interchange EDP Economic Development Policy EESE Enabling Environment for Sustainable Enterprises EIF Enhanced Integrated Framework EPB Export Promotion Bureau FAO Food and Agriculture Organisation FBCCI Federation of Bangladesh Chambers of Commerce & Industries FCDO Foreign, Commonwealth and Development Office FDI Foreign Direct Investment FHAN Federation of Handicraft Association Nepal FLFP Female Labour Force Participation FTA Free Trade Agreement FWEAN Female Women Entrepreneurs Association Nepal FYP Five Year Plan GDP Gross Domestic Product GDTF Gender Dimensions of Trade Facilitation GEM Gender Empowerment Measure GII Gender Inequality Index GIZ Deutsche Gesellschaftfür Internationale Zusammenarbeit GNHC Commission GoB Government of Bangladesh GoN Government of Nepal GRB Gender Responsive Budget GSP Generalised System of Preferences HDI Human Development Index HDR Human Development Reports HDRO Human Development Report Office HIV Human Immunodeficiency Virus HKH Hindu Kush Himalaya HMC Haat Management Committee HPI Human Poverty Index IAI Ibero American Institute IANWGE Inter-Agency Network on Women and Gender Equality ICA Investment Climate Assessment ICD Inland Container Depot 8 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

ICIMOD International Centre for Integrated Mountain Development ICP Integrated Check Post ICT Information and Communications Technology IDE Institute of Development Economics IFC International Finance Corporation IFPRI International Food Policy Research Institute IGO Intergovernmental Organisation IIFT Indian Institute of Foreign Trade ILO International Labor Organisation INGO International Non-Governmental Organisation INR Indian National Rupee IOM International Organisation for Migration IPA Interpretative Phenomenological Analysis IPRs Intellectual Property Rights ISBN International Standard Book Number ISSN International Standard Serial Number ISST Institute of Social Studies Trust ITC Input Tax Credit ITES Information Technology Enabled Services JCCI Jessore Chamber of Commerce and Industry JICA Japan International Cooperation Agency KPI Key Performance Indicator LDCs Least Developed Countries LEP Loden Entrepreneurship Programme LFMEAB Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh LFPR Labour Force Participation Rate LGED Local Government Engineering Department LPI Logistics Performance Index MAP Medicinal and Aromatic Plants MCCI Metropolitan Chamber of Commerce and Industry MCH and Child Health MFP Micro Finance Project MOC Ministry of Commerce MOI Ministry of Industries MOIT Ministry of Information & Technology MOWCA Ministry of Women & Children Affairs MS Mean Sum of Squares MSEs Medium and Small Enterprises MSMEs Micro, Small and Medium Enterprises NAFTA North American Free Trade Agreement NASIB National Association of Small & Cottage Industries of Bangladesh Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 9

NBER National Bureau of Economic Research NCEUS National Council for Enterprises in the Unorganised Sector NCWC National Commission for Women and Children NER North East Region NGO Non-Governmental Organisation NHSS National Health Security Strategy NKRA National Key Result Area NLSS Nepal Living Standard Survey NPAG National Plan of Action on Gender NPC National Productivity Council NPR Nepalese Rupee NSB National Statistics Bureau NSS National Sample Survey NSW Networked Single Windows NTBs Non-Tariff Barriers NTIS Nepal Trade Integration Strategy OECD Organisation for Economic Cooperation and Development PDB Power Development Board PEP Partnership for Economic Policy PFA Platform for Action PHCB Population & Housing Census of Bhutan PMMY Pradhan Mantri MUDRA Yojana PTAs Preferential Trade Agreements RBI Reserve Bank of India RCSC Royal Civil Service Commission REDCL Rural Enterprise Development Corporation RENEW Respect, Educate, Nurture, Empower Women RG Royal Government of Bhutan RIA Regulatory Impact Assessment RMG Readymade Garment RNR Renewable Natural Resources RTA Regional Trade Agreement SAARC South Asian Association for Regional Cooperation SAFTA South Asian Free Trade Area SAIS School of Advanced International Studies SANEM South Asian Network on Economic Modelling SAWTEE South Asia Watch on Trade, Economics & Environment SDGs Sustainable Development Goals S&DT Special and Differential Treatment SEIP Skills for Employment Investment Programme SES Socioeconomic Status SHGs Self Help Groups 10 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

SID Society for International Development SIDA Swedish International Development Cooperation Agency SKRAS Sector Key Result Areas SMEs Small and Medium Enterprises SMEF Small & Medium Enterprise Foundation SPS Sanitary and Phyto-sanitary SSRN Social Science Research Network SSRP Social Sciences Research Platform SWADF South Asian Women Development Forum SYB Statistical Year Book TCB Trading Corporation of Bangladesh TFA Trade Facilitation Agreement TIP Trafficking in Persons TMSS Thengamara Mohila Sabhuj Sangha TTFA Trade and Transport Facilitation Assessment UC University of California UK United Kingdom UN United Nations UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme UNESCAP United Nations Economic and Social Commission for Asia and the Pacific UNU United Nations University USA United States of America USAID United States Agency for International Development USD United States Dollar VAT Value Added Tax WB World Bank WBDC Women’s Business Development Centre WEA Women Entrepreneurs’ Association WEAB Women Entrepreneurs’ Association of Bangladesh WEF World Economic Forum WIDER World Institute for Development Economics Research WITS World Integrated Trade Solution WLN Work and Learning Network WMSME Women-owned/led Micro, Small and Medium Enterprises WNBA Women National Business Agenda WTO World Trade Organisation WTR World Trademark Review Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 11

Contributors

Bibek Ray Chaudhuri Bibek Ray Chaudhuri is an Associate Professor at the Indian Institute of Foreign Trade, Kolkata. He was involved as a researcher in around 20 projects sponsored by International organisations, Government of India and State- level bodies and has published papers in several reputed journals. He received prestigious ‘Japanese Award for Outstanding Research on Development’ 2010 conferred by the Ministry of Finance, Government of Japan and Global Development Network.

Bina Pradhan Bina Pradhan is an independent researcher, gender and socio-economist. She did her Ph.D in Population and Development from Cornell University with a multidisciplinary background in economics, rural sociology, gender studies, anthropology and international development. She has extensive work experience in providing technical support in plan, policy and programme development and management, research, monitoring and evaluation, capacity development, and gender management system at national, regional and international levels. She also served in the UN System as Gender, Socio- cultural and Operations Research Adviser to FAO/UNFPA.

Binai Lama Binai Lama is currently working for the UN World Food Programme in Thimphu, Bhutan. He is a Development Practitioner working on Renewable Natural Resources (RNR) value chains, rural livelihoods and enterprise creation. He has an experience of over 25 years working both at the grassroots and national policy level. He has served the Royal Government of Bhutan and SNV (Netherlands Development Organisation).

Biswo Poudel Biswo Poudel is a Visiting Associate Professor at Kathmandu University, Columnist in Kantipur Daily, a Member of the Board of Directors of Sanima Middle Tamor Hydropower Company,and a Member of the Board of Trustees of Ullens Education Foundation. He had previously served as the Economic Advisor at the National Planning Commission and the International Labour Organization. His areas of expertise include natural resources economics and labour economics. 12 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Hasina Kharbhih Hasina Kharbhih is the Ashoka Fellow/Aspen ILI, Fulbright Scholar and Founder and Managing Director ofImpulse Social Enterprises. She is also Founder Chair of Board of Impulse NGO Network. Kharbhih created the nationally and internationally acknowledged Impulse Model (formerly known as The Meghalaya Model), a holistic method to address human trafficking. She is a winner of several awards at national and international levels and a notable speaker on various issues.

Kamala Gurung Kamala Gurung is a Gender and Natural Resource Management Specialist at International Centre for Integrated Mountain Development (ICIMOD), Nepal. Her expertise includes “Gender and Social Equity” in rural livelihoods diversification and innovation through entrepreneurship development in formal and informal sector, individual and collective approach, agriculture and natural resource management sector through research and development initiatives. Prior to ICIMOD, she has worked with International Rice Research Institute, IUCN-Nepal, and The Mountain Institute.

Kunzang Lhamu Kunzang Lhamu is the Director of the National Commission for Women and Children, Royal Government of Bhutan. Her field of experience includes: socio-economic development planning and policy formulation; research and evaluation; resettlement and targeted poverty programmes; population, environmental, and poverty and gender analysis; and mainstreaming. She also serves as the Governing Board Member for the South Asian Initiative for Ending Violence Against Children; and Chairperson of the Gender Expert Group in Bhutan.

Maheen Sultan Maheen Sultan is Senior Fellow of Practice and a Founder of the Centre for Gender and Social Transformation at the BRAC Development Institute, BRAC University, a regional centre on research, teaching and policy related to gender and social transformation. She is a development practitioner with over 25 years’ experience in social development, poverty, civil society and community participation and gender equality. Sultan is also a women’s rights activist and a member of Naripokkho, Bangladeshi women’s rights organisation. She is the co-editor of ‘Voicing Demands: Feminist Activism in Transitional Contexts’ (Zed Books: London, 2014). Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 13

Manju Giri Manju Giri is a Gender and Social Development Expert at Thimpu. She comes with over 15 years of experience in the area of Gender and Social Inclusion. In particular, she has carried out assessments of projects, prepared gender action plans and gender strategy documents. As an independent consultant, she has worked with the Royal Government of Bhutan and international agencies, such as the Asian Development Bank, World Bank, United Nations Development Programme, The United States Agency for International Development, Liasion Office of Denmark and other regional institutions.

Nasreen Begum Nasreen Begum is a Member (Law) of the Bangladesh Competition Commission. She had previously served as an Additional Secretary of the Ministry of Law, Justice & Parliamentary Affairs. She is a legislative expert with more than 20 years of experience in the drafting and legislative process of Bangladesh.She was the first General Secretary of Bangladesh Women Judges Association. Her area of interest and expertise lies in the field of legal reform and legislative process, enforcement of women and children rights, implementation of corporate, commercial & competition law.

Ruba Rummana Ruba Rummana is an Associate Professor in the Department of Arts and Sciences in Ahsanullah University of Science & Technology. She has research experience of more than 13 years focusing on conducting research, TNA, training design and facilitation, training module development, training monitoring and evaluation; targeting economic activities of women, women entrepreneurship development and gender with different Ministries, Chambers and NGOs. She worked as a Research Economist with ADB, DFID, UK, Centre for International Private Enterprise (CIPE).

Vikas Deep Vikas Deep is an Associate Professor, Punjabi University Patiala, (India). He is also Co-ordinator of Centre for E-Learning and Teaching Excellence, Punjabi University Patiala. His academic qualifications are; BE Electrical, MBA and Ph. D in Management. Presently, he is General Secretary of Bathinda Management Association, a body under the aegis of All India Management Association and General Secretary of Punjab Commerce and Management Association. He has versatile experience of 29 years both in the corporate sector and teaching. 14 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Preface

Despite a growing number of women the back foot and restrain their entrepreneurs in Bangladesh, Bhutan, access to resources which results in India and Nepal (BBIN), their lower participation in trade and participation in international trade is related activities. limited. While social factors primarily determine women’s engagement in It is in this context that CUTS economic activities irrespective of the International undertook a project region, high costs of doing business, titled “Gender Dimensions of Trade financial hurdles and limited access to Facilitation: Evidence from Bipul Chatterjee information and markets restrict their Bangladesh, Bhutan, India, and Executive Director participation in trade. Nepal”, supported by the Foreign, CUTS International Commonwealth and Development It is well known that increase in trade Office (FCDO) of the United operations contribute to a nation’s Kingdom. economy which has positive implications on women’s welfare. The Under this project, we have done trade policies mostly deal with tariff extensive field work in the BBIN and non-tariff measures, investments countries to generate evidence in infrastructure, energy, education and with regard to challenges faced by skill development influencing women’s women entrepreneurs while participation in trade. entering into the trade.

In order to steer trade liberalisation This compendium is an output of and to achieve expected trade targets, this project and aims to create a it is very pertinent that women are better informed policy discourse made part of trade policy and on various factors affecting procedures. women’s economic empowerment in BBIN countries. It builds on the The BBIN countries have a low ranking premise that due to existing in gender indices. In these countries, gender-biased socio-economic women are primarily working in the gender inequalities, trade policy informal sector and ownership of related instruments and productive assets are mechanisms do not result in disproportionately in the hands of expected outcomes that are gender men. Social expectations, traditions neutral. and patriarchal mindset put women at Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 15

The World Bank has also Chamber of Commerce and highlighted in its World Industry, Bhutan Media and Development Report 2012 that Communications Institute and “gender equality is smart South Asia Watch on Trade, economics as it can enhance Economics & Environment, Nepal economic efficiency and improve for their support and engaging the other development outcomes”. authors at various levels and capacities. I extend my gratitude to the UK’s FCDO for their generous support I hope that this compendium will for this timely project. It has also contribute to an informed benefitted from overall guidance, discourse on good practices and inputs and suggestions by Mohit requisites for women’s Sippy, Senior Programme and engagement in trade. A discourse Policy Manager as well as Anu of such a kind generates food for Sareen, Programme Manager of thought and also creates pathways the Asia Regional Trade and that will not only enable Connectivity Programme of FCDO, understanding problems faced by the UK. women but will also contribute to better informed policy decisions. My sincere thanks go to all the authors who have also acted as The pathway need not be perfect members of the Project Advisory but one where it can aim at taking Committee for this project. I thank lessons from the past. our partners: Bangladesh Women 16 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Executive Summary

Over the past few years and supply goods or services to other particularly after the adoption of firms/agents in the local market Trade Facilitation Agreement (TFA) followed by exports to a supply by the World Trade Organisation chain firm overseas. (WTO), a renewed emphasis has been paid on how trade may Trade-related interventions that impact gender and how gender consider gender implications have inclusive trade policies can be not only proven to boost economic formulated. competitiveness but also bring about several positive outcomes. In the long term, this may help the governments in setting the The research papers in this priorities in negotiating trade compendium aims to explore why agreements, formulating domestic gender matters for trade policies or reforming the sectors facilitation and how gender where women entrepreneurs are dimensions can be incorporated represented disproportionately. through several small but focused initiatives, particularly in the BBIN With regard to BBIN, women tend sub-region. to concentrate on micro, small and medium enterprises (MSMEs) This compendium is an attempt to which are often broken out from generate a knowledge base to help major trade, finance and industrial integrate a gender perspective for policy discussions. This is despite pivoting from informal to formal the fact that MSMEs in BBIN face trade and to initiate a policy specific barriers in the participation dialogue for the same, particularly of regional or international trade. in the BBIN sub-region. The papers These can be benefitted by note that women prefer to trade reducing trade costs by introducing informally, largely to avoid the a number of trade facilitation costs and challenges of the formal measures. trade.

CUTS field work in BBIN countries Thus, there needs to be proper have highlighted that many women incentivisation mechanisms in the owned/led/managed MSMEs are place for women to facilitate their participating in international trade move towards the legal, directly and indirectly as they documented channels once the Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 17

formal trade through the land development, flexible working borders is more facilitative and less hours and decent working cumbersome for women. conditions will go a long way in making employment in the private In addition, informal trade can be sector more attractive to women. diverted by establishing initiatives like border haats or through To ensure this, the governments in riverine routes at selected short BBIN sub-region must also support stretches, as they have proven to the private sector through training channel informal trade to formal and development, access to trade. infrastructure, market and finance, preferential fiscal and non-fiscal Moreover, efforts have been made incentives. to recognise the importance of macroeconomic shifts and the Further, there is a need to create a inclusion of the private sector in conducive investment climate and the initiatives to encourage women the business environment for the participation. private sector.

The sub-region could benefit from Papers in this compendium have macroeconomic reforms which reported that women participation would result in high in economic sectors relies heavily macroeconomic turnover in terms on the women-friendly norms in of employment creation and the business and the banking primary income for men and sector. Ironically, gender-responsive women alike. For instance, focus on norms in the sector can only be non-traditional sectors, such as ensured through increased creative industry would pave better involvement of women. opportunities for women entrepreneurs in terms of Addressing issues such as - enhancing business. recruitment, remote location service, maternity leaves and other Additionally, it is imperative to benefits need to be structured and develop infrastructure facilities like streamlined. road and transport which will lead to lower reliance of women on Women engagement can improve their male counterparts. drastically with tax incentives and enough disbursement of loans. However, the private sector in the Individual taxation and access to BBIN sub-region is yet to attract welfare benefits for women, women. Promoting a working insurance and pension schemes environment through adoption and need to consider women’s needs usage of modern production and working patterns. technologies and techniques, attractive social security and Another important area identified welfare schemes, an opportunity in the research papers of this for career and professional compendium is to achieve gender 18 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

parity in education, through special standing, remunerations and measures to enroll and retain respect for blue-collar jobs should in schools and integrate issues of be promoted strategically. family planning, sexual and into the In this compendium the papers education curriculum to continue discuss that business incubator and raising awareness in areas that entrepreneurial parks for fueling tackle social barriers to girls’ the youth’s, particularly women’s education. business imagination would go a long way in nurturing their dreams There needs to be extensive into reality. support to mitigate low education effects for women as low level of Also, services on business education leads to joblessness coaching, starting new businesses, which hinders the economic well- subsidised credit support, being of the socially excluded entrepreneur support network and sections of the society, especially safety net to mitigate risks should women. be promoted aggressively.

Further, it is also suggested that Additionally, advocating and continuing education along with promoting business associations targeted skills development and groups in order to encourage training programmes would help advocacy and business women’s them to reduce their risk of long- voices; strengthening their term unemployment and prevent participation and promoting a from being economically women-friendly business vulnerable resulting in a poverty environment; and building trap. women’s confidence and identity as entrepreneurs are seemingly the A key strategy in the discourse of need of the hour. achieving gender parity in education and employment is to Thus, it can be summed that reduce skills mismatch and gender-sensitive policies and enhance employability of women incentives in business, trade and job seekers. Therefore, it is of entrepreneurship will go a long significance that vocational and way in inculcating interest in educational training programmes business among the females. be reviewed and aligned to the labour market requirements in These can be initiated in the form close collaboration with industries. of priorities given to women consumers, special provisions for Training courses where there is a women’s employment, clear surplus of labour should be entrepreneurship and economic replaced with courses that have gain and concessions along with current and future demand. Social financial assistance. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 19 BANGLADESH 20 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 21

Facilitating Trade for Economic Empowerment of Women 1 Entrepreneurs in Bangladesh: Barriers & Opportunities

Ruba Rummana Associate Professor, Department of Arts and Science, Ahsanulla University of Science & Technology, Dhaka

Trade can play an important role in the economic empowerment of women. The World Trade Organization (WTO), therefore, seeks to build an inclusive trading system that will allow more women to participate in trade and reap the economic benefits of global trade. Bangladesh can especially use the provisions under the WTO’s Trade Facilitation Agreement (TFA) that aims at expediting the cross- border movement of goods and sets out measures for effective cooperation between customs and other authorities on trade facilitation and customs compliance issues.

This Paper depicts why gender matters for trade facilitation and how gender dimensions can be integrated into trade facilitation. It attempts to develop a framework to identify the barriers faced by women in engaging in cross-border trade, with particular emphasis on demonstrating the importance of gender mainstreaming for trade facilitation measures in Bangladesh.

Introduction Many trade facilitation measures contained in the TFA would also Trade can facilitate women by directly contribute to meeting the providing ways for poverty United Nations Sustainable reduction and lead to women’s Development Goals (SDGs) that economic empowerment. Trade Bangladesh has ratified and which facilitation can be an effective and have a direct positive impact on powerful tool for women’s women (WTO, 2017). empowerment and improving the economic status of women. In this In Bangladesh, a very negligible regard, Bangladesh can especially proportion of total business owners use the provisions under the (10 per cent) are women (Economic WTO’s Trade Facilitation census, 2013). Although this Agreement (TFA). 22 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

situation has gradually improved, papers, data and government gender-specific constraints policies, agreements, regulations, continue to be a big problem even acts and protocols, to bring out today. Trade facilitation measures information on the extent of can improve the trading women’s participation in cross- environment by reducing border trade and the impediments transaction costs and increasing faced by them. the gains from trade. The largely unexplored aspect is the Challenges Faced by importance of gender sensitivity. Women Entrepreneurs In Bangladesh, not much attention in Bangladesh has been given to understand the In General: As per the Women gender impact of services involved National Business Agenda (WNBA) like customs and border developed by Bangladesh Women management, logistic services, Chamber of Commerce and trade infrastructure and Industry (BWCCI) in 2014, the transportation and trade-related challenges fall under three broad Trade facilitation policies. These reforms are needed categories: measures can to increase women’s mobility and improve the trading participation in cross-border trade Social Barriers: In a male immensely. environment by dominant society where male reducing transaction members think it is a big risk Little attempt has been made to costs and increasing financing the ventures run by purposefully identify and address the gains from trade women, society does not provide a the needs of women in trade, women-friendly environment for which has serious implications not business, most of the family just for women’s empowerment members do not like to see women but also for the productivity and outside the home and they often growth potential of the economy. face bad comments, eve-teasing, social violence, torture, and In this paper, a broader working harassment leading towards definition of trade facilitation dropout from business, lower measures (WTR, 2015) has been position in the social structure and adopted to include simplification hindering overall progress. and rationalisation of customs and trade procedures, reducing Capacity Building & Training: impediments related to logistics Context: Business success is linked and transport services, improving to capacity. In Bangladesh, women trade infrastructure and port have less access to educational, efficiency, and assisting exporters/ technical and vocational skills traders in complying with export/ compared to men. They have less import requirements and building education and experience related their capacity to benefit from to starting and managing a cross-border trade. business, thus less likely to succeed. The paper is based on secondary sources, including published Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 23

Gender-based preferences of policies). Thus, the husband or parents and family tend to father has to act as a guarantor for channelise girls and women into women. more general and social education rather than more scientific and Commercial Banks are only technical education. It is more interested in their schemes rather difficult for women to gain than to take part in schemes of knowledge and relevant skills Central Bank. Discriminatory because they always have to play inheritance laws create a hindrance double roles, as a homemaker and in women securing bank loans due a business person at the same to lack of proper collateral like time. It makes them less able than land, property, etc. lack of start-up men to participate in formal and capital to become entrepreneurs. informal training. The education of most women entrepreneurs is not up to the Financial Barriers: Women mark for a bank loan. There are no entrepreneurs suffer from a lack of provisions for a grace period after capital as banks do not accept receiving a loan, a high-interest women as entrepreneurs. rate of bank loans, etc. Moreover, financial institutions are not aware of the different schemes Cross-border Trade of the Central Bank (Bangladesh Bank) targeting women due to a Hinders Women’s lack of collaboration between Participation financial institutions and women • Starting a Business Is associations (e.g., associations can Difficult: Women involved in act as guarantors for women the early stages of setting up a seeking a loan, work as a pressure trade business often struggle at group to enact new policy the entry-level itself to procure formation for effective an export-import code number implementation of existing which gives them the license to 24 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

export. Even though this system mostly men. Dealing with them has been made online, it is still adds to the costs as well as the very inefficient and combined hassles. The additional fee that with poor internet connectivity, has to be paid to the which makes it difficult for intermediaries often cuts into women to get through the first their profits. step. • Less organised: We also found • Lack of Awareness Due to that business and trader as Lack of Information: Women associations around the border are reluctant to participate in areas were largely male- cross-border trading because dominated and women they do not have information entrepreneurs and traders are on procedures, rules and not organised enough to be regulations related to able to jointly voice their international trade. concerns.

• Unfavourable Environment: Other challenges comprise weak Women also face considerable domestic demand, limited difficulties dealing with customs connections to market and trade officials, who are opportunities abroad, and usually males. The need to pay difficulties in meeting international bribes to officials is quite health, safety, and other product prevalent, especially since most requirements. Women have limited women lack knowledge about bargaining power that is further the rules and their rights; they aggravated by problems in are forced to make additional importing raw materials and the payments to the officials for struggle in searching for investors processing their trade-related for financing raw materials and documents. machinery. In case of a reduction in tariffs on products that dominate • Difficulties in Accessing their consumption baskets, women Cross-border Markets: Women are benefitted. face many problems when attempting to sell goods across However, they lose out when their borders. For instance, women products have to compete with are not able to find ways of cheap imported products in the marketing their goods across domestic markets. Furthermore, borders, especially because of women are also victims of sexual the difficulty they face in harassment which also acts as a making marketing trips across barrier to trade. The above scenario the border. They also find it stresses the need for the difficult to process payments. development and implementation of inclusive trade policies that • Complex Trade Procedures: To leaves no one behind. Appropriate avoid the above-stated policies will help to bridge the problems, women traders tend gender divide in trade and foster to hire intermediaries, who are women empowerment. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 25

Women are subject to societal followed by a discussion on restrictions, unequal economic gender-responsive trade facilitation opportunities, and bias in the measures. marketplace. Women need to be provided with access to Formal Trade through LCS international markets and financial Bilateral trade between India and support in the case of export Bangladesh is mainly carried out businesses. through land route via 49 Land Customs Stations (LCS) and 2 Women in Trade Integrated Check Posts (ICPs). The LCS at the India-Bangladesh Border Trade across borders from provides transit, customs and Bangladesh takes place largely by immigration and cargo handling road. For better analysis, services for goods and passengers. classification of cross-border trade into three different categories was The LCS at and Akhaura followed – formal trade through have been developed as ICPs. Land Customs Stations (LCS); To facilitate the movement of cargo formal trade through border haats across the border, ICP Benapole and informal trade. has been made operational on a 24x7 basis, seven-days-a-week The characteristics and key issues customs clearance facility basis related to trade facilitation are since August 2017. discussed to examine the extent of participation of women in different In addition to the above two ICPs, categories. Also, an assessment is there is a proposal to develop ICPs done on how gender-responsive at eight other locations across the are the trade facilitation measures, 26 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

India-Bangladesh border at Hili, national trade statistics. These are , , once-a-week makeshift market Fulbari and in West enterprises at certain specified , Sutarkandi in , points on zero lines of the India- in Meghalaya and Kawrpuichhuah Bangladesh border to allow people in Mizoram, which will provide a residing near the border of both further boost to the bilateral trade. the countries to trade without having to pay any customs duties. Participation of Women in Formal Trade through LCS Established as per a Memorandum The absence of data availability on of Understanding (MoU) signed women engaged in cross-border between India and Bangladesh in trade is one of the biggest 2010, four border haats are limitations that has constrained currently in operation – Kalaichar analysts in taking into account the and Balat at the Meghalaya- gender dimensions of trade Bangladesh border and facilitation. There is also no data on Kamlasagar and Srinagar at the women’s involvement in providing -Bangladesh border. In trade facilitation and logistic 2016, both the governments have services such as transport, agreed to establish two more warehousing, freight forwarding, border haats in Tripura and four and customs clearance. more border haats in Meghalaya on the India-Bangladesh border. There are hardly any women involved in providing logistic The Haats are set up within 5 km of services such as transport, the international border. Vendors/ handling, compliance and vendees shall be residents of the clearance. Logistics services at the area withina5kmradius from the LCSs are almost exclusively location of Border Haats. The managed by men. Women number of vendors is limited to be entrepreneurs find it difficult to about 50 from each country. deal with male entrepreneurs in the Trading is being held once or twice partner countries as they are a week. The estimated value of reluctant to enter into commercial such purchases cannot be more partnerships with women than the respective local currency entrepreneurs (UNDP 2016). equivalent of US$200 for any particular day. Formal Trade through Border Haats The commodities sold in the Border Haats are exempted from Formal trade also takes place the payment of customs dues. This through border haats (markets) set would make the border villages up formally by the Governments of more prosperous by way of India and Bangladesh. Traders are improved market access for their issued legal permits to trade. goods while strengthening their However, even though trade is economic and cultural status. recorded, it is not entered in the Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 27

Participation of Women in case of emergency determined Formal Trade through Border by the District Magistrate, Haats adherence to which is quite Women’s participation is flexible at the ground level. perceptible and, in fact, gradually over time, the interest among the Informal Trade local women to take part in the Informal trade takes place because haats has risen significantly. the transaction costs of trading formally are higher than those The following set of hurdles which, incurred in informal trading due to if addressed, would enhance the the costly and quite complex trade participation of women at the procedures involved in formal border haats: trade. What lies at the core of the Infrastructure Deficit: The • functioning of informal trading physical connectivity to the markets are strong ethnic ties border haats is extremely poor. among traders that ensure that The access roads are narrow payments are made and also and in worsening conditions reduce risk and transaction costs. during monsoon, most haats do not have separate toilets for Typically, informal cross-border women, further, mobile and trade takes place through: internet connectivity are also Women’s • Informal markets along the poor. participation is border Women are less interested to • Carriers using formal channels, perceptible and, in come to the haat as they would and fact, gradually over not be able to be in touch with • Unguarded points along the time, the interest family members because of long and porous borders. among the local poor network connectivity. The banking facilities are either poor women to take part Participation of Women in or non-existent which puts the in the haats has Informal Trade women traders in a vulnerable risen significantly Informal trading markets are position and are forced to make located along the border and use of the informal network for unofficial border points to avoid foreign currency transactions navigating through the essentially controlled by men. bureaucratic processes of the formal channel and to avoid Pre-dominance of Male • customs duties. Women who carry Officials Supervising the and transport goods for exporters/ Functioning of the Haats: importers, travel frequently as There is hardly any women passengers on rickshaws and make personnel from other several daily trips for carrying government departments goods between the two countries. (district administration, customs, and banking) at the Often, goods are carried as head haat. Rather, the MoU clearly loads by women. Small women states that security forces entrepreneurs engage in “suitcase personnel will not be allowed to trade” (women who carry a suitcase enter in the haat area, except in load of goods as accompanied 28 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

baggage in their vehicles) to profitable for women to enter and participate in exhibitions or to sell be successfully engaged in. their goods to retailers/wholesalers across the border. The Future Ahead Women sell goods in the informal Since women prefer to trade border haats that are situated close informally largely to avoid the costs or along the borders. Some of and challenges of the formal trade, which are also situated close to they will be incentivised to move official trading points. Most of the towards the legal, documented women residing in that area are channels once the formal trade involved in informal cross-border through the land borders more trade through the haats. Informal facilitative and less cumbersome traders are likely to shift to formal for women. Also, informal trade channels if the impediments of can be diverted by establishing trading formally are reduced. more border haats, as haats have helped channel informal trade to Measures for Gender formal trade. Responsive Trade With the normalisation of cross- Facilitation border trade between India and Myanmar, there is an urgent need To address the challenges faced by to strengthen and increase the women, it is not only necessary to presence of Border Haats at undertake extensive trade strategic points. Border Haats allow facilitation measures but also to people from both countries to buy make the measures gender- each other’s products on a fixed sensitive. It is vital to ensure that day each week, with items traded policy measures take into account limited to select locally grown women’s perspectives so that cross- agricultural and manufactured border trading is possible and finished products. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 29

Table 1.1: Measures for Gender Responsive Trade Facilitation

Areas in Investigation Actions Executing Ministry/Agency

• Gender Mainstreaming • Funds from development partners to be Ministry of Women& in the implementation directed towards assisting women to comply Children Affairs of cross border trade – with customs and take advantages of PTAs. (MOWCA), Ministry of bilateral, multilateral • Include women in consultative process. Commerce (MOC) and regional. • Gender responsive More women members in all committees. implementation of TFA

Measures to Enhance • Separate toilets for women, common areas Ministry of Information & Participation of Women and better roads. Technology (MOIT), Local LCS and ICPs • Uninterrupted electricity and mobile network. Government Engineering • Women friendly border • Efficient and helpful banking and foreign Department (LGED), crossing points. exchange facilities. Power Development • Awareness building • Training and sensitisation of border level Board (PDB), Mobile and information agents and officials. Service Providers dissemination activities • Exclusive help and monitoring desks for targeting women. women. • Marketing and Support • Discounted warehousing and storage facilities Services to Women for for women. Accessing Cross- • Digitisation of processes and introduction of a border Markets. one stop service centre. • Gender Disaggregated • Positive and periodic media campaigns. MOF, MOIT, Women Database • Readily available information booklets and Chambers and pamphlets. Associations. • Women help and monitoring desks in relevant government offices. • Information dissemination sessions through business chambers and associations. • Assistance to women to effectively market MOIT, Women Chambers their products in the foreign markets. and Associations. • Facilitate women traders to take advantages of scale and avoid market hassles in the cross- border markets. • Integrating e-commerce among different executing agencies. Bangladesh Bureau of • Government agencies that collect and compile Statistics (BBS) data on international trade induced to collect gender disaggregated data for different quantitative parameters.

Measures to Enhance Qualitative information regularly collected via Haat Management Participation of Women consultative dialogues between authorities Committee (HMC) in Border Haat responsible for trade facilitation and women’s • Gender Affirmative business associations and groups Action for Haat Licenses 30 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Areas in Investigation Actions Executing Ministry/Agency

• Transparent Selection • Women’s quota in vendor and vendee licenses HMC Process be approved by the Haat Management Committee for one year only. • Gender Responsive • Gap of one year before the successful LGED, HMC, Infrastructure applicants can reapply for license. PDB • Consideration of innovative measures such as • Gender Disaggregated following a rotational entry procedure to Database enable greater number of participants takes part in the haat. • Make information about the application BBS process readily available – using mobile text; bulletin boards at the panchayat offices; leaflets distributed in local markets etc.

• Abolish discretion in the approval process and make selection transparent like random drawing lots or lottery.

• Separate toilets for women with regular water supply. • Common Facility like sitting area for women. • Regular maintenance of access roads. • Support desk managed preferably by women officials. • Improved communication network. • Efficient banking and foreign exchange facilities.

• Create a computerised and regularly updated gender • Disaggregated database on vendors, vendees and transactions conducted at the haat.

Measures to Curb • Make formal trade more facilitative and less MOF, MOC, Export Informal Trade difficult. Promotion Bureau (EPB) • Establish more border haats. Channel Informal • Trade to Formal Routes. • Role of women should be specifically BBS examined. • Use the Gender Lens to • Undertake studies at the same point in time Conduct New & (the same years). Systematic Studies on • Collect data on similar parameters. Informal Trade in South Asia. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 31

Areas in Investigation Actions Executing Ministry/Agency

Measures to adopt • Government agencies and Women’s Trade EPB, Small & Medium gender responsive Trade Associations can coordinate with each other Enterpriese Foundation and Tariff Policies and ensure increased participation of business (SMEF), Federation of • Export Policy 2018- women in various national and international Bengal Chambers of 2021 trade fairs. Commerce & Industry • Government agencies may create regular trade (FBCCI), National Import Policy 2015: fair activity throughout the country and EPB Association of Small & Women entrepreneurs may create facilities for exporting the products Cottage Industies of need to import raw of the women entrepreneurs and also provide Bangladesh (NASIB) materials, machineries information on export related matters. and technology • Introduce specific provisions for women entrepreneurs like export opportunities and import subsidies especially in sectors like- leather, boutiques and beauty. • Provide lower tariff for imports which are generally used in sectors having women’s participation and women for producing export goods. • ITC needs to readdress this issue. • Abolition of the system of import and export registration; • Opening of an information window for women traders in the Department of Imports and Exports within the Ministry of Commerce, and a customs official should be designated in each port of clearance to handle women EPB, SMEF, MOC, Ministry importers’ cases on a priority basis; Of Industries (MOI) • Developing a system that allows waiver of pre- shipment inspection as a requirement for women-owned businesses.

Currently, four Border Haats are once there is more data and operational along the India- information available on the Bangladesh border, at Kalaichar quantum and nature of informal and Balat in Meghalaya, and trade as well as on the extent of Srinagar and Kamalasagar in women’s participation. Tripura. The current studies on informal In addition to the four functional trade in South Asia, including the Border Haats, the Government of BBIN, are limited in scope and do India and the Government of the not assess the participation of People’s Republic of Bangladesh women. The knowledge base have agreed to set up six more generated will help policymakers in Border Haats – two in Tripura and adopting more targeted measures four in Meghalaya. Beyond this, to shift informal trade to formal effective measures to reduce channels in a more gender- informal trade can only be taken responsive manner. 32 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Conclusion quality control and adoption of new technology and guidance on A welcoming atmosphere, coupled human resource management with the implementation of techniques. appropriate policies, will prove to be encouraging for women to Moreover, providing a platform for effectively engage in trade. Women women to realise their potential entrepreneurs can be encouraged and helping women to overcome through the provision of legal the obstacles that stand in the way assistance for trade licence and of engaging in entrepreneurship trade documents. Also, they can be will allow a nation to empower offered marketing assistance to use their women and achieve long- local products, assistance regarding term development goals.

References Barbhuiya, Shelly. N.D.‘Karimganj-Bangladesh Border Trade: A Case Study of SutarkandiLCS, Assam.’ Chaudhari, Sudhakar K. (1995), ‘Cross Border Trade between India and Bangladesh, ‘Working Paper no. 58, National Council of Applied Economic Research. Rahman, A. and Abdur Razzaque (1998),‘Informal Border Trade between Bangladesh and India: An Empirical Study in Selected Areas’, Bangladesh Institute of DevelopmentStudies. Taneja, N.(2004), “Informal Trade in the SAARC Region:Implications forFTAs”, Economic and Political Weekly, December 18. United Nation Development Programme (2016), ‘Trade Winds of Change: Women Entrepreneurs on the Rise in South Asia’ United Nations Inter-Agency Network on Women and Gender Equality (IANWGE) (2011). Resource paper on Gender Equality and Trade Policy, available at http://www.un.org/womenwatch/feature/trade/gender_equality_and_trade_policy.pdf World Bank (2016), Border Haats Study World Bank (2017), ‘Doing Business Report 2017: Equal Opportunity for All’ World Customs Organization (undated), ‘Gender Equality Organizational Assessment Tool’, available at- http://www.wcoomd.org/~/media/wco/public/global/pdf/media/newsroom/press/gender-equality- assessment-tool—final.pdf?la=en. ‘World Trade Report 2015: Speeding up trade: benefits and challenges of implementing the WTO Trade Facilitation Agreement’. World Trade Organization (2017), Gender Aware Trade Policy, available at https://www.wto.org/english/news_e/news17_e/dgra_21jun17_e.pdf. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 33

Annexure 1 Major Commodities Traded at ICP Benapole

Major Import Commodities Major Export Commodities

Raw Coon, Coon Fabrics, Chemicals, Machinery, Rice, Onion, Garlic, Raw Jute, Jute Bag, Jute Carpet, Potato, Betel Leaf, Flowers, Printed Books, Tyres and Tubes, Cycle Parts, Packing Cloth, Coon Rag, Cable Two Wheeler, Chassis, Motor Car, Tractor, Dry Chilly, Electronic Items, Wire, Jamdani Saree, Betel Nut, Wring Paper, Paperboard, Petrochemical Products, Sulphuric Acid, Textile Goods, Soap, Baeries, Sodium Sulphate, Fabrics, Stone Chips Metals

Source: https://www.eximbankindia.in/Assets/Dynamic/PDF/Publication-Resources/ResearchPapers/97file.pdf

Annexure 2 List of Integrated Check Posts (ICPs)

Sl. No. Name of the ICP in India (Along with the state) Name of the Corresponding LCS in Bangladesh

1. ICP, Benapole, Bangladesh

2. ICP, Tripura Akhaura, Bangladesh

Source: https://www.eximbankindia.in/Assets/Dynamic/PDF/Publication-Resources/ResearchPapers/97file.pdf

Annexure 3 List of Land Customs Stations (LCSs)

Sl. No. Name of the LCS in India (Along with the state) Name of the Corresponding LCS in Bangladesh

1. Agartala LCS, Tripura Akhaura LCS, Bangladesh

2 Dhalaighat LCS (Agartala Division), Tripura Kumarghat LCS, Bangladesh

3. Khowaighat LCS (Agartala Division), Tripura Balla LCS, Bangladesh

4. Muhurighat LCS (Agartala Division), Tripura Belonia LCS, Bangladesh

5. Srimantapur LCS (Agartala Division), Tripura Bibirbazar LCS, Bangladesh

6. Karimganj Steamer & Ferry Ghat, Assam Zakiganj LCS, Bangladesh

7. Manu LCS (Karimganj Division), Tripura Chaapur LCS, Bangladesh

8. Old Raghnabazar LCS (Karimganj Division), Tripura Betuli (Fultali) LCS, Bangladesh

9. Sutarkandi LCS (Karimganj Division), Assam Sheola LCS, Bangladesh

10. Mahisasan Railway staon (Karimganj Division), Assam Shabajpur LCS, Bangladesh

11. Bholaganj LCS, Meghalaya Bholaganj LCS, Companyganj, Bangladesh

12. Borsora LCS (Shillong Division), Meghalaya Borsora LCS, Bangladesh 34 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Sl. No. Name of the LCS in India (Along with the state) Name of the Corresponding LCS in Bangladesh

13. Dawki LCS (Shillong), Meghalaya Tamabil LCS, Bangladesh

14. Shellabazar LCS (Shillong Division), Meghalaya Chhatak, Sunamganj LCS, Bangladesh

15. Ryngku LCS, (Shillong Division), Meghalaya Kalibari (Baganbari) LCS, Bangladesh

16. Baghmara LCS, Meghalaya Bijoypur LCS, Bangladesh

17. Dalu LCS, (Dhubri Division), Meghalaya Nakugaon LCS, Bangladesh

18. Dhubri Steamer and Ferry Ghat LCS, Assam Rohumari LCS, Bangladesh

19. Ghasuapara LCS (Dhubri Division) Gobrakura & Koroitali LCS, Bangladesh

20. Golakganj LCS (Dhubri Division), Assam LCS, Bangladesh

21. Mahendraganj LCS, (Dhubri Division), Meghalaya Dhanua Kamalpur LCS, Bangladesh

22. Mankachar LCS, (Dhubri Division), Assam Rowmari LCS, Bangladesh

23. GuwahaSteamerghat LCS, Assam Rohumari LCS, Bangladesh

24. Silghat LCS, (Guwaha Division), Assam Rohumari LCS, Bangladesh

25. Changrabandha LCS, West Bengal Burimari LCS, Bangladesh

26. Fulbari LCS, West Bengal Land Port, Bangladesh

27. LCS, West Bengal Birol LCS, Bangladesh

28. Gitaldah LCS, West Bengal Mogul Ha, Bangladesh

29. Ghojadanga LCS, West Bengal Bhomra, Bangladesh

30. Mahadipur LCS, West Bengal Sinamasjid, Bangladesh

31. Hilli LCS, West Bengal Hili, Bangladesh

32 Hemnagar LCS, West Bengal Shaikberia, Bangladesh

33. Gede LCS, West Bengal Dorsona, Bangladesh

34. Ranaghat LCS, West Bengal Dorsona, Bangladesh

35. Singabad LCS, West Bengal Rohanpur, Bangladesh

36. T.T.Shed, Khidderpore LCS, West Bengal Khulna, Bangladesh

37. Kawrpuichhuah, Mizoram Thegamukh, Bangladesh

Source: https://www.eximbankindia.in/Assets/Dynamic/PDF/Publication-Resources/ResearchPapers/97file.pdf Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 35

Trade Associations, Women’s Entrepreneurship Associations and 2 Support to Women Entrepreneurs

Maheen Sultan Visiting Fellow & Head, Gender Studies Cluster, BRAC University, Dhaka

Women’s entrepreneurship associations are important sources of support and advice for women entrepreneurs. There is a need for mainstreaming of women’s concerns and priorities within the sectoral trade associations, business chambers and associations. Although the district-based chambers of commerce does not have specific objectives to promote women traders and entrepreneurs, some of them have taken initiatives and are open to providing support to women.

This Paper argues for strengthening the capacity of women chambers of commerce and associations to represent, advocate for and provide support to women producers and exporters as well as for District chambers of commerce and Industry to be encouraged to play an active role in supporting and promoting women entrepreneurs and exporters. It also recommends establishing business development centers for women entrepreneurs at the district level as well as in border areas.

Overview Association (BMEA), Bangladesh Knitwear Manufacturers and Registered trade associations have Exporters Association, (BKMEA), a role to play in the formulation Bangladesh Agro-processors and negotiation of trade policies, Association (BAPA) and Bangladesh especially the Federation of Association of Software and Bangladesh Chambers of Information Services (BASIS). Commerce and Industry (FBCCI), the Dhaka Chamber of Commerce The district-based chambers of and Industry (DCCI), the commerce does not have specific Metropolitan Chamber of objectives or activities to promote Commerce and Industry (MCCI) women traders and entrepreneurs. and trade associations for key Some chambers have taken various export industries such as initiatives. For example, the Bangladesh Garment Chamber in Khulna had taken some Manufacturers and Exporters 36 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

initiatives to promote women As the current trade regime entrepreneurs. The Jessore requires all importers and Chamber felt that setting up a help exporters to be members of desk for women would be possible. “recognised trade organisations”, it is important for chambers and The Sunamganj Chamber was more trade bodies to open their interested in carrying out capacity membership to small businesses, building training for women. To especially women-led businesses. make these chambers of commerce active, they need to gain a better As mentioned in the 2006 USAID understanding of women’s role and report, Trade Organisation Rules the importance of women’s 1994 recognised that trade contribution. They have to be organisations have the right to motivated to support and promote provide the government with women traders and entrepreneurs advice and recommendations in their areas. related to trade policy and send their representatives to meetings, There is a need for Mainstream business associations workshops and conferences on mainstreaming of such as the Bangladesh Agro trade-related issues. (USAID, 2006: women’s concerns Processors Association, and 42). and priorities within Bangladesh Leather Manufacturers the sectoral trade Association generally serve as There seems to be an increasing associations, bargaining agents with the trend for traders and entrepreneurs business chambers government and do not see their to join associations. In the Trade role to be as capacity developers of Winds of Chain Bangladesh study and associations members. However, various done by SANEM, it was found that development agencies do see them all the 100 women’s enterprises as a means to reach their surveyed were members of membership. chambers of commerce or sectoral associations (UNDP, 2016: 18). For example, the Bangladesh Agro Processors Association has had However, an earlier survey by various projects with the European BWCCI with 130 respondents Union for capacity building of found that although most of the members and has held training and BWCCI members were also workshops for its members. involved in trade associations and business networks, on an average The FBCCI and DCCI have set up only 58 per cent of women had standing committees on women’s such membership. Among non- entrepreneurship. At the national BWCCI members, the figure was 13 level, there is an increase in per cent. Of those who were not women’s representation in the members, some did not know decision-making levels of the about these bodies and others chambers and federations – this is found the application process to an opportunity to be seized. be too complicated. (BWCCI 2008: 33) Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 37

Sectoral Trade Each of these associations is also Associations promoting recognition by external markets and the government of the Women are less active in trade value of their sector/sub-sector. associations. For example, the They collect data on exports and Bangladesh Agro-Processors’ destinations and also on their Association (BAPA) has more than members. 500 members but only about five are women. The product The Leather Goods and Footwear associations such as BAPA; Manufacturers and Exporters Bangladesh Organic Products Association of Bangladesh Manufacturers Association (LFMEAB) was established in 2003 (BOPMA); and Bangladesh Fruits to “establish a healthy business Vegetables and Allied Products environment for a close and Exporters Association have a role in beneficial relationship between the representing the interests of their local manufacturer and exporters members to the government, of leather footwear and leather negotiating for privileges. goods and foreign buyers”.

In the case of BAPA and the Potato Member companies include Exporters Association they also producers of footwear, leather certify exports and process the goods, espadrille and others. export cash back incentives for the Membership is not required for members, for which they get a footwear producers but footwear small share. exporters. 38 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

It was established to unite all the are to develop national and leather goods and footwear international markets, capacity manufacturing companies by building and member service encouraging cooperation amongst development and advocacy. It has the members, providing a platform been involved in market with local and international development through trade fairs exposure, creating awareness and business-to-business amongst international buyers and meetings. In advocacy, it has raised making representations to the regulatory issues with government and concerned public policymakers, the media and other bodies on behalf of the members stakeholders. to resolve their regulatory problems. In 2012 BASIS had set up the BASIS Institute of Technology and Membership services include Management (BITM), which seeks certification of membership; to increase the supply of technical providing information; advising on and managerial training and compliance; certification for capital resources needed by the industry. machinery release; bond licensing; The skillset of university IT Telegraphic Tranfer (TT) graduates entering the labour The district-based certification and Generalised market is insufficient to meet the chambers of System of Preferences (GSP) needs of the industry. The BITM endorsement. It even has a gender seeks to address this gap. commerce do not policy for members and health have specific insurance coverage for workers. The BASIS also seeks domestic objectives to market development by creating promote women The Association has been able to awareness among potential IT traders and work closely with the government users from both private and public entrepreneurs to advocate for policy and tax sectors, establishing marketplaces incentives. It has been able to for IT solutions and ensuring a establish a Centre of Excellence for level playing field for local software Leather (COEL) Skill Bangladesh. It and IT-enabled service industries. It has undertaken several projects is working on the capacity building and is collaborating with the Skills of the member companies as well for Employment Investment as the industry as a whole through Programme (SEIP) of the management/entrepreneurship government and the Asian development initiatives, technology Development Bank (ADB). training and resource sharing.

The Bangladesh Association of Member service development and Software and Information (BASIS) is delivery are provided in different the key private sector body directly operational and business support involved with supporting the areas like financing, tax, export/ ITES_BPO industry in the country. It import, remittance, foreign visit, was set up in 1997 and has more contract & legal issues and IPR. than 1,100 members. Its objectives Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 39

BASIS also carried out advocacy out with members of BWCCI in activities for its members so that both locations and also with the Government policies can be more Jessore and the Jhenaidah supportive of soft-ware Chambers of Commerce and development and IT related Industry. services. The BASIS has undertaken some projects such as SEIP, as has The BWCCI members mentioned the Leather Association. the advice and assistance they received from BWCCI to contact Along with a student forum, it also and negotiate with banks. A has a BASIS Women’s Forum on number of them had received women in IT, headed and convened various trainings such as by Farhana A Rahman, Vice entrepreneurship training. Being President, BASIS. Rahman part of an association also gave estimated that 3 per cent of them confidence and strength. technology entrepreneurs are women and 12 per cent of A few of the BWCCI members in executives are women in the IT Jessore were also members of the sector. The BASIS Women’s Forum Jessore Chamber of Commerce and (BWF) is a membership and one was a member of the Dhaka networking platform for women in Chamber of Commerce. While a the information and few of the Jessore women were Women’s communication technology (ICT) entrepreneurs interested in entrepreneurship sector. participating in the District associations are Chamber, the Jhenaidah members The Forum seeks to increase felt that they would not gain much important sources of awareness in our society of the and did not seek membership and/ support and advice importance of female or attend the Chamber meetings. for women empowerment through ICT and to There are not many women in the entrepreneurs improve and increase women’s Jessore Chamber of Commerce and involvement in the Bangladesh IT the women interviewed did not ecosystem. The Forum wants to seem interested in becoming break the stereotypical belief that members also. men are the gatekeepers of technology and rather improve the A few of the women did attend the techno-world with equal Chamber meetings but not all of involvement of both genders of the them felt that they gained much society. from this as their issues were not addressed. In , there were no Observations from the women members either in the Sylhet Chamber of Commerce and Field: Jessore, Industry or the Sylhet Metropolitan Jhenaidah Chamber of Commerce and Industry. The importance of being in associations and receiving support The Jessore Chamber members felt from them was highlighted in the that women entrepreneurs need to field visits made by the author two come out and overcome social years ago. Meetings were carried 40 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

barriers. Women should approach The Women Entrepreneurs’ senior members of the Jessore Association (WEA) is the oldest Chamber of Commerce and body followed by the Women Industry for advice and mentoring, Entrepreneurs’ Association of which most members would be Bangladesh (WEAB); Bangladesh happy to give. They also suggested Federation of Women that the JCCI can set up a women’s Entrepreneurs (BFWE); the desk. E.g. Once a week someone Bangladesh Women’s Chamber of can be available to give advice. Or Commerce and Industry (BWCCI); else the JCCI could hire a female and regional associations such as trainer/ consultant to work with the Chittagong Women Chamber women entrepreneurs. of Commerce & Industry (CWCCI).

In Jhenaidah when the former These associations have been able FBCCI President visited, he gave the to ensure that the needs and Chamber a fund of one million BDT priorities of women entrepreneurs to use as interest-free loans for are heard, that their memberships women entrepreneurs. The have access to training and banks Chamber has now utilised the and have also served as lobby and money. This has helped women to advocacy groups to increase establish a “credit rating”. government resources to these groups. However, to date, less The Jhenaidah Chamber offered to emphasis has been given to vet loans for women being international trade participation. considered by commercial banks as they know it better, in which Although their numbers of women are involved in production members seem large, the and business. This will lower bank associations only have sporadic loan recovery risks. interactions with their members. However, the need for such Women Entrepreneurs’ associations and chambers of commerce and industry for women Associations is utmost. Several districts’ Some women entrepreneurs’ women’s chambers have been associations as well as business formed as this report was being associations have been set up since finalised. 1990. The Jatiya Mahila Sangstha (National Women’s Association) is They have also served a very useful a government body and is not advocacy and lobby function with strictly a business association but the government in gaining greater supports women entrepreneurs. visibility for women in entrepreneurship and seeking some privileges in terms of finance and training. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 41

Table 2.1: Women Entrepreneurs’ and Business Associations

Name Year Membership Legal Contact Core objectives and Export related established status persons activities work

Jatiya Mahila Organisations Statutory Momtaz …. To promote the None Sangstha registered organisation President, implementation of (National with the under JMS national and Women’s Department MOWCA international Association) of Women’s formed by commitments that are Affairs the Jatiya part of its mandate. Mahila It seeks to increase Sangstha awareness of women’s Act, 1991. rights and development, increase their skills, provide resources for socio- economic development, develop skilled workforce, and attain socio political rights. It provides training for women entrepreneurs and marketing support.

Women’s 1994 Membership Identification and Entrepreneurs’ of women evaluation of national Association business measures related to (WEA) owners and start-ups, information, http://bfwe.org/ women advice, facilitating assoc_3.html business access to credit, owner mentoring and organisations networks concerning throughout the promotion of Bangladesh. female entrepreneurship. Counseling is designed for both groups and individuals. Measures supporting enterprise start-ups are focused on sectors that can provide women with an adequate income. Women are supported to move into higher value markets in traditional or new sectors. 42 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Name Year Membership Legal Contact Core objectives and Export related established status persons activities work

Women 2001 About 6,000 Nasreen Support system for WEAB facilitates Entrepreneurs members1 Awwal women entrepreneurs participation in Association of Mintoo to not only improve the national and Bangladesh WEAB is quality of their international (WEAB) leading the products, to meet the trade fairs and http:// Bangladesh changing market exhibitions where www.weab.org/ chapter of demands, but also to members acquire activities/index the SAARC impart training on new and better South Asia technical knowhow, ideas and gain Women design development immensely from Development and to create marketing the exposure. Forum. links for their products. Since inception, Training programmes WEAB members are regularly organised have gained for WEAB members in market access in various fields ranging the US., UK, from food processing, Canada, India, textile designing and Nepal, , quality development, Arab and other production of new and countries. innovative handicrafts A few WEAB to export-import, members were indenting, even running sent to trade fairs of petrol pumps. WEAB abroad through organises seminars, initiatives taken workshops and by EPB and symposiums where Katalyst. business women, small, medium and large, meet and benefit through exchange and sharing of ideas and experiences. WEAB has an MoU with EBL Bank and they provide some assistance to members to get loans.

Bangladesh 2006 Non-profit Rokeya BFWE offers a wide Encourages, Federation of professional Afzal range of benefits and supports, and Women organisation Rahman, networking promotes women Entrepreneurs President opportunities. BFWE business owners (BFWE) encourages women to and http://bfwe.org/ support each other, to entrepreneurs to index.html enhance recognition of participate in the achievements of national and and international

1. Interview with President WEAB. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 43

Name Year Membership Legal Contact Core objectives and Export related established status persons activities work

the professions, and trade missions promotes the growth of and conferences. women-owned enterprises through research and sharing information. BFWE is pledged to the highest ethical standards and professional practices; recognises local and global environmental and social issues. This includes WEA, TMSS, and Banchte Shekha as members. The mission of BFWE is to serve as a platform that would initiate informal and formal networking; increase capacity through training; support in accessing capital. For further information see http:// bfwe.org/index.html

Bangladesh 2001The members Registered Selima BWCCI’s aim is to Encourages, Women’s of BWCCI are under the Ahmed, encourage and supports and Chamber of from the entire Ministry of President strengthen women’s promotes Commerce range of socio- Commerce. participation in the women business and Industry economic Registered private sector as owners and (BWCCI) spectrum. with the entrepreneurs through entrepreneurs to http:// Joint stock promoting women- participate in www.bwcci- Company of friendly business national and bd.org/ Bangladesh environment. BWCCI is international Government. a strong voice, lobbying trade missions Affiliated as for micro to macro and conferences. an “A” class women entrepreneurs chamber to assist their growth with the and to improve their Federation social and economic of the prospects. As a result of Bangladesh efforts towards Chambers promotion of a gender- of friendly business Commerce environment, private and sector development and Industry grassroots women 44 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Name Year Membership Legal Contact Core objectives and Export related established status persons activities work

participation in economic sectors, BWCCI has already emerged as an advocacy organisation with increased acceptance among cross-section of people at the national and the international level. It is implementing a number of projects such as Skills for Employment Investment Programme (SEIP), Finance Division, Ministry of Finance, Bangladesh Government; Stress Management Programme for Business Women with IPA; Rural Women Entrepreneurs Skill Development Training Programme (Sub- district level) (with GOB); Leadership skill building training programme for women entrepreneurs 3rd Phase (With IRI and WLN) and Women Entrepreneurs Skill Development Centre And Hostel Facilities Programme (with GOB).

Chittagong 2003 Members (FBCCI), The main aim of CWCCI Women include UN is to protect, develop, Chamber of individual consultative support and promote Commerce & enterprises, status with all measures towards Industry cooperatives, its ensuring a favorable (CWCCI) private Economic environment for the http:// companies, and Social business enterprises www.cwcci.org/ NGOs, and Council. owned by women. institutions Working as a common platform for women Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 45

Name Date Membership Legal Contact Core objectives and Export related established status persons activities work

either owned entrepreneurs and or operated by business women in women, Chittagong region. The working for members of the entrepreneurship Chamber includes development individual enterprises, amongst co-operatives, private women. companies, NGOs and CWCCI has two institutions either types of owned or operated by memberships: women, working for general and entrepreneurship corporate. development amongst women. The objectives are far reaching and an increasing number of women are being able to transform their latent potentiality into reality. The CWCCI provides to the members overall technological and business solutions for sustainability of women entrepreneurships.

Recommendations research on the present and potential involvement of women in District Chambers of Commerce their sectors/association and and Industry to be directed/ undertake promotional measures encouraged to play an active to support women traders and role in supporting and industrialists’ entry into the sector promoting women entrepreneurs and also penetration into export and exporters. The FBCCI could markets. This could be linked to an encourage district-based incentive system from the commerce chambers in the border government. areas to have a more proactive role in the promotion of women traders Strengthening the capacity of and entrepreneurs. women chambers of commerce and associations to represent, Selected sectoral associations advocate for and provide promoting women producers support to women producers and exporters in their sector. The and exporters. There are several mainstream trade associations women chambers and could be assisted to undertake 46 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

entrepreneurs’ associations, which The programme could explore play a very important role. Their what has been done in other ability to provide capacity countries to make chambers of development support to women commerce and industry more producers, entrepreneurs and responsive. Consultations should exporters should be further be held with sector/product enhanced by documenting and associations in the potential trade sharing their best practices, sectors (leather, agro-processing, establishing closer relations pharmaceuticals) so that their between chambers and experiences and expectations are mainstream sectoral and business addressed. Finally, women associations. chambers and entrepreneurs’ associations should be involved. Consultations between Chambers of Commerce and Establishing business Industry, Sectoral Associations development centers for women and Women Entrepreneurs’ entrepreneurs at the district Associations. Meetings should be level as well as in border areas to held with chambers of commerce ensure facilitation of linkages with and industries and women processors and distributors, entrepreneurs in border areas to technical support (For instance, in have an idea of the women’s preparing loan applications, expectations of the chambers as linkages with larger processors and well as the understanding that the distributors, trade-related chambers have of their roles. informational access, access to ICT and training courses. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 47

Trade-Related Legal Instruments and their Implications on 3 Women Traders: A Case Study of Bangladesh

Nasreen Begum Member (Law), Bangladesh Competition Commission

Women, who consist of a large demographic of Bangladesh are increasingly becoming part of Bangladesh’s working population. The concept of women’s empowerment and efforts in this area has helped the country attain steady progress in gender equality, which helped Bangladesh to secure the first spot in gender equality (among South Asian countries) for the second consecutive year at the Gender Gap Index of 2017. However, just like other aspects, trade-related policies depict gender differential inequalities as well.

This paper aims to highlight some key areas where major trade-related policy deficits lie and propose some guidelines on how to alleviate these gender-related discrepancies.

Benefits from Trade embodied in products enabling trade liberalisation to make The impact of trade comes through possible knowledge spillovers various channels: its effects on through improved access to economic growth, relative prices, imports. macroeconomic stability and government revenues (Winters, This increase in the degree of 2002 and Winters et al., 2004). openness of an economy usually enhances product market Another avenue, through which competition. The increase in trade can spur economic growth is productivity means more output or by increasing the pace of income can be obtained by all innovation by firms. Trade levels in society. liberalisation increases the size of the market and the incentives to Bangladesh is the world’s second- innovate. This happens to such an biggest apparel exporter after extent that technical know-how is . Garments including knitwear 48 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

and hosiery account for 80 per incentives for economic activities, cent of export revenue; others which can have a far-reaching include jute goods, home textile, impact on women’s economic footwear and frozen shrimps and empowerment are as follows: fish. Due to the US-China trade war, Bangladesh is getting more First, a general reduction in trade work orders that shifted from costs can increase economic China. opportunities for women by increasing competition. Put simply, According to the Export Promotion when facing global competition, Bureau data, the readymade employers cannot afford to garment (RMG) sector earned discriminate against qualified $34.13 billion in the fiscal year of women. This happened in the US 2019-20, higher by 11.49 per cent, during the 1980s when the gender than the previous fiscal. wage gap decreased more than proportionally in industries that Women & Trade faced higher import competition and in which US firms had Trade can impact women through previously enjoyed large market multiple transmission channels, power (Seiermann, 2018). including better economic Trade policies affect opportunities, technological It was economically more feasible the relative prices of upgrading, socio-economic to hire females with the goods and services empowerment, and labour reforms. appropriate job qualification than Evidence also suggests that trade import from overseas when the in the economy openness helps reduce egregious overall level of education increased forms of employment, such as for women. forced and child labour, for which women and girls are most Second, trade liberalisation can vulnerable. In many Asian induce technological upgrading in countries, women have also production, which reduces the benefited from this, particularly in importance of the physical strength export-oriented manufacturing and of workers. In Mexico, following the service industries (Park & Khan, introduction of the North American 2019). Free Trade Agreement (NAFTA), technological upgrading reduced International trade has contributed the comparative advantage of men to lifting millions out of poverty, in production. As a result, many women fall under that industries with a larger tariff uplifting umbrella. Even though reductions experienced a larger unintentional, economic policies increase in blue-collar employment often impact men and women of women. differently, and trade policies are no exception. Third, women can benefit if trade policies lead to a reallocation of Trade policies affect the relative production towards sectors with prices of goods and services in the high female employment. In the economy and, therefore, the case of Indonesia, trade Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 49

liberalisation in the 1990s was women’s incomes, but also the more intensive for sectors with survival of girls in tea-producing high female employment; regions in the early 1980s (Qian, consequently, female employment 2005). increased more than male employment (Seiermann, 2018). Inherently this was done to find out whether economic conditions In Indonesia, female work affected male-female ratios over participation increased (in relative time. Due to the absence of prenatal terms) in regions that were more gender revealing methods in many exposed to input tariff reductions, parts of China and the preference whereas the effects of output tariff for male children, selective abortion, changes were much less infanticide and/or neglect led to the pronounced. When looking at the ultimate death of many children. potential channels for these effects However, when income for , the structure of the increased there was a far more initial protection was considerably decrease in this practice. more female-biased than skill- biased and hence reductions in Amartya Sen (1990, 1992) coined input tariffs have especially the expression “missing women” to It is important to benefited sectors with a larger refer to the observed female highlight that initial concentration of female “deficit” in comparing sex ratios of economic workers. This has led to a relative developing countries with sex ratios expansion of more female intensive of rich countries. incentiveshave a sectors as well as to a decrease in much more profound gender segregation of occupation, In Bangladesh, the rise of the impact than simply especially among the low skilled. export-oriented garment industry, altering women’s which employs a workforce of 80 economic outcomes Having established that trade can per cent women, has increased be an important determinant of young girls’ (aged five to nine) women’s labour market education and reduced the number participation and wages, it is of teenage girls (aged 12 to 18) important to highlight that getting married. These examples economic incentives often have a show that the impact of trade policy much more profound impact than on women’s lives goes far beyond simply altering women’s economic economic benefits. outcomes. Trade policy affects not only other Evidence shows that changes in targets of the UN Sustainable economic incentives that favour Development Goals, such as health women can also help reduce other and education but the very essence aspects of gender inequality. of gender inequality: the way Studying the impact of economic women are perceived in society and incentives on missing women in the opportunities they are given. rural China shows that increasing This profound impact of trade on returns for tea, which women have gender makes it even more a comparative advantage in important to ensure that trade producing, not only increased policies benefit women. 50 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Scenario in Bangladesh If we directly delve into the policy scenario that Bangladesh currently has, many provisions can be found addressing practical and strategic needs for women entrepreneurs. Some of these policies incorporate specific

Table 3.1: A List of Legal Instruments

S.No Initiative Areas of Interventions Actions

1. National • Capacity Building (a) ”E-BanijjoKorbo, NijerBabosaGorbo” (Practicing E- Digital • Awareness Generation commerce will enable women entrepreneurship): This Commerce project aims at encouraging women to E-trade and Policy, 2018 increase the number of women entrepreneurs, making women as skilled entrepreneurs to meet the increasing unemployment problem in the country. (b) Under the “Bangladesh Regional Connectivity Project-1 MOC Component” Under training, for capacity building of women entrepreneurs regarding internal and international trade and WTO are being provided. (c) The project titled “Economic Opportunities and Sexual and Reproductive Health and Rights — A Pathway to Empowering Girls and ” has been implemented to provide comprehensive support to operate the business in the domestic and international markets.

2. Industrial • Poverty Alleviation Bangladesh Bank aims at supporting women under Small Policy, 2016 • Employment Generation and Medium Enterprise (SME) lending. The policy allows • Mainstreaming women for to avail collateral-free loans up in industrialisation to 25 lakh BDT. Additionally, there are special concessions process for women entrepreneurs such as lower interest rates on • Financial Assistance business loans. and concessions

3. SME Policy of • Developing women Women Entrepreneurs’ Dedicated Desk in all banks and Bangladesh friendly entrepreneur financial institutes. Bank sector in the country

4. National • Gender development This policy encompasses multiple sectors and focuses on Women • Financial Assistance the Government’s overall commitment for the Development development of women and girls via a Gender Policy, 2011 Responsive Budget allocation

5. SME Policy of • Concessions and This policy mentions that women entrepreneurs shall be Ministry of preferences for women given preference wherever it is deemed appropriate Industry entrepreneurs

6. Taxation • Financial Assistance Women are entitled to a preferential tax-free limit of BDT Policy 3 lakh instead of 2.5 lakh limit for males. Taxation policy also allows for entitlement of tax holiday opportunity Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 51

vulnerable groups of catered The next important challenge is women. The paper presents a regarding bureaucratic border compiled list of legal instruments clearance processes and agencies that can be subdivided into that impose greater trade barriers. multiple sub-sections. Women having low income and illiteracy, in general, are greater Challenges and Gaps victims of these nuances, which means that women are not always The challenges are multifaceted allowed to reap the benefits that given Bangladesh’s current border management reform offers. scenario. A substantial proportion of the cross-border trade that Typically border agents are men occurs with women as a party and do not have a way of working involved, we see that it is informal. in a gender-sensitive manner. Since informal trade is unregulated Women entrepreneurs, henceforth, and mostly undocumented, there is feel harassed and are often sometimes lesser accountability as misguided making it difficult for well. them to go on about their business transactions. Due to this nature, the contribution these informal traders have is also Transportation infrastructure is often unnoticed by the another tough challenge faced by government. The same goes for an rural women. Getting products to authoritarian body that could work markets require the use of frequent as a guiding mechanism, however, and many modes of vehicles. absent and if problems arise, they go unresolved. These modes are dominated by men and not to mention that Women are not This brings us to the main point safety and security also play a always allowed to that the policies that are being pivotal role when women consider, reap the benefits made and implemented lack the which mode they can avail and not that border true picture of what is and what avail. Henceforth, taking trade management reform needs to happen given the worthy products to market via offers informal nature of all this. public transport is a much greater hassle for women entrepreneurs. 52 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Delving into the demographics of Female entrepreneurs from female entrepreneurs, we find that grassroot levels are often left out the majority are micro and small- or do not have proper banking scale traders. Small-scale facilities in their areas to avail such entrepreneurs do not enjoy opportunities. The challenge for economies of scale and pay more policy is to implement trade for logistical support especially reforms in a way that increases the those located in lagging regions of likelihood of benefits to reach the developing countries. Due to lower extreme poor. traffic volume, these women entrepreneurs also face difficulties Women trade union is yet another in trying to compete with larger area that seems to merit some businesses. focus. Female trade unions often lack proper leadership figures and Regarding the policy gaps that there seems to be a lack of training exist, given the policy discussion and development programmes presented above, one of the most addressing this problem. profound gaps visible in almost all policies that seem to favour Conclusion women entrepreneurs is the vagueness of decision making. In Trade policies and reforms in many cases, it is presented to the Bangladesh are gradually focusing Trade policies and women entrepreneurs to be given on female entrepreneurs. While reforms in ‘sufficient’ preference in cases. addressing issues that plague the Bangladesh are economic sector an overall 360- gradually focusing However, ‘sufficient’ is a vague degree focus needs to penetrate all on female term that leaves much to troublesome areas. entrepreneurs interpretation of the officer in question. Hence if the lending Not just specific aspects but also officer of a financial institution new problems are arising as more finds insufficient collateral for and more women are women entrepreneurs, often their concentrating outside the loans are rejected, which in turn households and pursuing demotivates female entrepreneurs economically viable options. thus hampering our economy in the process. Policies need to cater to women in traditionally male-dominated Another quite common scenario is society where it is often hard for the centralisation of loan women to fight competitively in a disbursements that happen in man’s world. According to the commercial banks. It can be constitution of Bangladesh Article noticed that the majority of the 28 (ii), Women shall have equal female entrepreneurs that are rights with men in all spheres of benefited from any of the the state and public life and Article government policies are largely 29 (iii) Special provision needs to segregated in major cities such as be made in favour of any backward Dhaka, Chattogram, or Sylhet. section. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 53

In alignment with these Articles, consumers and the sellers. Women consumers may be given Future incentives in import-export policy, other domestic economic policies and priority in this process. trade need to issues related to the cross-border • Women quota for dealerships provide special trade need to be amended and may be reserved by the Trading incentives for new provisions need to be adopted Corporation of Bangladesh (TCB) women in concerned Act, Ordinance, Legal based on experience, efficiency entrepreneurs Instrument such as Notification, and qualification at all Circular, Government Order and headquarters of ‘A’ category and Rules and Regulations to comply at least in the metropolitan cities. with our constitutional provisions. Initiatives may be taken to Only with equal opportunities for enhance the professional both genders, can Bangladesh efficiency and managerial strive to achieve prosperity. capability of women entrepreneurs through Recommendations management training. • Projects may be taken to train Future incentives in trade need to women entrepreneurs on provide special incentives for domestic and international trade. women entrepreneurs. As a result, Steps can be taken to make the women will be interested in work environment women- business. The following friendly in the garment industry recommendations need to be sector. highlighted in this aspect: • Provisions need to be created for • The National Consumers’ Rights women’s employment, Protection Department can take entrepreneurship and economic initiative to build a good gain. To provide women with relationship between the these facilities women-friendly 54 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

banking services, easier credit • Affirmative actions needs to be facilities, venture capital, taken for trade and tariff working capital and special policies such as reform and measure to develop land and removal of discriminatory finance business support investment trade policies. services need to be enhanced • Since women-owned as well. enterprises fall largely under the • Nationwide surveys need to be SME criterion, the VAT rate undertaken by the ministry or needs to be adjusted and division concerned for lowered from the current high preparing a database on female rate of 15 per cent. VAT also entrepreneurs. Record-keeping needs to be lowered on needs to be robust such as essential goods produced and maintaining registration consumed by the female records, liaison with Bangladesh population. The handicraft Export Processing Zones sector should also face a waiver Authority (BEPZA) and the of VAT for the first few Bangladesh Small & Cottage inception years. Industry Corporation (BSCIC) • Women-friendly customs for different policies. officers preferably female • For the banking sector to be customs officers should be more women-friendly, female appointed at the port to attend representation needs to to needs of women increase. Addressing issues such entrepreneurs. Women as — recruitment, remote entrepreneurs and importers location service, maternity need to form collaborative and leaves and other benefits needs beneficial groups to support to be structured and each other and look out for the streamlined. betterment of each other. • Women deserve tax incentives and enough disbursement of loans. Individual taxation and access to welfare benefits for women, insurance and pension schemes need to consider women’s needs and working patterns. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 55

References Qian, Nancy “Missing Women and the Price of Tea in China: The Effect of Relative Female Income on Sex Imbalance” Cambridge, Massachusetts: Job Market Paper, University Press 2005 Sen, Amartya “More Than 100 million Women are Missing” New York Review of Books, 1990 “The Global Gender Gap Report 2017” World Economic Forum, 2017 Winters, L. A. et al. “Trade Liberalization and Poverty: The Evidence So Far” Journal of Economic Literature, 2004 Vol. XLII (March 2004) pp. 72– 115 Winters, L. A. “Trade and Poverty: Is There a Connection?” World Trade Organization, 2002 Seiermann, Julia “Trade’s Impact on Women is Multi-faceted; Trade Policy Should Be, Too” Reshaping Trade Through Women’s Economic Empowerment, Center of International Government Innovation, 2018 Park, Cyn-Young & Khan, Fahad “Leveraging trade for women’s economic empowerment in the Pacific” Asian Development Bank, May 2019 Higgins, Kate “Gender Discrimination of Trade Facilitation & Logistics” World Bank International Trade Department, April 2012 Bangladesh Women Chamber of Commerce and Industry, “Gender Dimensions of Trade Facilitation Agreement, 2019” 56 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 57 BHUTAN 58 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 59

Economic Empowerment of Women: 4 Employment in Bhutan

Kunzang Lhamu Director, National Commission for Women and Children Royal Government of Bhutan

Bhutan is generally considered to be a society where women enjoy relative freedom and equality in many spheres of life compared to their counterparts elsewhere in South Asia. While women enjoy a fair amount of independence in the social, economic and political spheres, the status of women in Bhutan is influenced by socio-cultural perceptions that generally hold women as less confident and less capable than men.

This Paper discusses the path that women’s economic empowerment has taken in Bhutan with a specific focus on employment.It dwells on issues related to the near absence of women in the formal sector, structural inequalities that exist, women’s disproportionate contribution towards unpaid care work and the need to collect information and monitor sex discrimination at the workplace including sexual harassment.

Introduction work by the United Nations Commission on the Status of The year 19751 was declared as the Women, established in 1946 to International Women’s Year by the monitor the situation of women United Nations General Assembly and to promote women’s rights. and it saw women’s issues being The Commission’s work has been placed on the global agenda for instrumental in bringing to light the first time. In 1979, the gaps in equality between women Convention on the Elimination of and men. All Forms of Discrimination Against Women (CEDAW)2 was adopted The Convention takes an important and entered into force in 1981. place in bringing the female half of humanity into the focus of human Bhutan ratified the CEDAW in the rights concerns.The Convention same year without any gives affirmation to the principle of reservations. The Convention was equality by requiring States’ parties the result of more than 30 years of 60 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

to take “all appropriate measures, country has achieved equality for including legislation, to ensure the women and girls and significant full development and advancement levels of inequality between of women, for guaranteeing them women and men persist. the exercise and enjoyment of human rights and fundamental Critical areas of insufficient freedoms on a basis of equality with progress include access to decent men”.3 work and closing the gender pay gap; rebalancing of the care The Beijing Declaration and workload; ending violence against Platform for Action (BPFA)4 adopted women; reducing maternal in August 1995 gave further the mortality and realising sexual and impetus to the empowerment and reproductive health and rights; and advancement of women – participation in power and guaranteeing the right to freedom, decision-making at all levels. realising their full potential and shape their lives in accordance with As we approach the 25th their aspirations. anniversary of the adoption of the Beijing Declaration and Platform The Platform for Action covers 12 for Action, there is a new sense of critical areas of concern that are as real urgency, a recognition that we relevant today as 20 years ago: are at a turning point for women’s poverty; education and training; rights, a recognition realising health; violence; armed conflict; gender equality, the empowerment economy; power and decision- of women and the human rights of making; institutional mechanisms; women and girls must be a human rights; media; environment pressing and central task (Beijing and the girl child. Declaration and Platform for Action, UN 1995). Nearly 20 years after the adoption of the Platform for Action, no Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 61

In Bhutan, the journey has not been consideration to women’s an easy one. Being considered as a differentiated interests and needs. country where women enjoy (Gender Pilot Study 2001, GNHC, relative freedom and equality in NSB & UNDP). many spheres of life a Bhutanese is not without her share of The Bhutan Gender Equality problems. While women enjoy a fair Diagnostic of Selected Sectors amount of independence in the (BGEDSS)6 conducted in 2014, while social, economic and political highlighting gender gaps in spheres, the status of women in educational outcomes, employment Bhutan is influenced by socio- and decision making it also cultural perceptions that generally indicated emerging concerns on hold women as less confident and the slower movement of women less capable than men. out of agriculture sectors, which is characterised by lower productivity The first study5 on ‘gender equality’ and earnings resulting in increasing was conducted in 2001 and with workloads of women and a high this Bhutan was able to generate incidence and tolerance of information on the social, cultural, domestic violence. economic and political situation of women. Gender disparities were The private sector is an important found to exist in women’s access to source of employment for women There is a need for education, employment and public with higher rates of female changes in policy decision-making. These issues participation in ownership. As per and outlook with a continue to persist owing to the 2015 Bhutan Enterprise Survey view to address the increasingly subdued and socio- conducted by the World Bank, 43 cultural forms of gender bias. per cent of firms had at least one gender gap female owner. Women’s access to training and technology is limited owing to The Economic Census of Bhutan lower level of education and skills, 2018-19 (ECoB, 2018-19) which render them less employable conducted by the National and also hamper their participation Statistics Bureau with technical in decision making related to both support of the World Bank, business opportunities and issues indicated that 56 per cent of the of governance. single proprietorship and partnership establishments were Subsequently, due to their lack of owned by women. time and mobility, women’s achievement in these particular However, the education levels of areas are fairly poor. Although female owners were less as women in Bhutan seem to enjoy compared to males, with 59 per equal opportunities and cent having primary education or entitlements, there are problems less and 6 per cent having higher especially in their inability to access education, whereas the opportunities equitably and the corresponding figures for male absence of an enabling owners were 50 per cent and 16 environment that gives due per cent, respectively. 62 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

The ECoB 2018-19 collected sum of all parliament seats in the information on business obstacles 153 countries, women comprised that establishments experienced only 25 per cent of the 35,127 and the most common obstacle for global seats. In 45 of the 153 more than 35 per cent of the countries, women occupy less than establishments were difficulties 20 per cent of the seats. Only 21 with access to finance, rent per cent of the 3,343 ministers are payment, competition from the women and in 32 countries women informal sector and electricity represent less than 10 per cent of supply. Women entrepreneurs in the ministerial seats. 85 of the 153 particular face constraints in countries have never had a woman relation to socio-cultural factors head of state. and gender stereotypical roles that expect women to take charge of The second dimension where the the household maintenance and global gender gap is highest is the care responsibilities. economic participation and opportunity sub-index. The fact There are also entrenched views on that women are less present in the women’s abilities in leadership and labour force than men contributes management roles. Working to this index. conditions and pay in the private Political sector remains an issue and there On average about 78 per cent of empowerment is an are major wage disparities between men (15-64 years) are in the labour area where women women and men, with women force as compared to 55 per cent are severely earning about 10 per cent less than of women. This means that over 30 underrepresented men (Bhutan Enterprise Survey, per cent of the global labour force World Bank 2010). participation in gender gap needs to be closed. In the financial Bhutan ranks very low at 131 out of disparities, a wage gap of 40 per 153 countries with a score of 0.635 cent and an income gap of 50 per in the Global Gender Gap cent remains to be bridged. Report72020. The measure uses indicators of political Women also find it more difficult empowerment, health and survival, to gain access to credit, land and educational attainment, and financial products. An underlying economic participation and factor that contributes to financial opportunity, indicating the need to disparities is the disproportionate improve performance in all these burden of unpaid care work that areas. The Global Gender Gap Score women bear. Women’s economic stands at 68.6 per cent, indicating empowerment has recorded a that there still exists a gender gap decline in recent years (Global of 31.4 per cent to be addressed Gender Gap Report 2020, World (Global Gender Gap Report 2020, Economic Forum). World Economic Forum). This paper discusses the path that Political empowerment is an area women’s economic empowerment where women are severely has taken in Bhutan with specific underrepresented. Considering the focus on employment. It dwells on Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 63

issues related to the near absence gap between female and male of women in the formal sector, labour force participation results in structural inequalities that exist, faster economic growth. Increasing women’s disproportionate the household income controlled contribution towards unpaid care by women also changes household work and the need to collect spending in ways that benefit information and monitor sex children. However, women discrimination at the workplace continue to have lower labour including sexual harassment. force participation rates as compared to men. Women’s Economic Further, women are more likely to Empowerment in engage in low-productivity Bhutan activities in the informal sector and be wage workers and unpaid family Women continue to carry out workers. Socio-cultural stereotypes almost all or a major proportion of that view women as economic the household maintenance and dependents and better equipped care work and also shoulder the to look after the domestic or responsibility of earning for the private sphere add to the many family. As such, there needs to be a challenges faced by women. greater recognition of women’s Targeted efforts contribution in the informal The unemployment rate in Bhutan towards enhancing segment of the economy. Gender is on a declining trend which stood women’s economic stereotypes dominate the at 3.4 per cent in 20189, with 4.2 empowerment leads economic domain and influence per cent female unemployed to poverty reduction the types of sectors that men and against 2.7 per cent male. Youth women are employed in. and inclusive unemployment (15-24 years) rates economic growth are a cause for concern at 15.7 per With the increase in engagement cent, with female youth and contribution of women in the unemployment at 12.9 per cent economic sector, this will directly and the male youth unemployment contribute to the development and at 9.2 per cent. productivity of the country and lead to achieving the vision of The country’s labour force sustainable economic growth. participation rate (LFPR) is 63.3 per Under this section, the paper will cent. The LFPR for females is lower explore women’s employment than that of men at 52.2 per cent opportunities, their involvement in and 73.1 per cent respectively as household and care work and per the PHCB 2017. The LFPR is subsequently examine an ideal higher in the rural areas and the work environment for the female female LFPR in rural areas is 60.3 labour force. per cent compared to 37.5 per cent in urban areas. Women and Employment 8 According to a 2012 OECD study , Women have much lower an increase in female labour force participation in regular paid participation or a reduction in the employment (18.4 per cent as 64 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

compared to 33 per cent for men) management practices through and casual paid employment awareness programmes. (female 4.7 per cent and male 15 per cent) and a more substantial The agriculture sector is recognised engagement in own account as the major source of income, (female 55.8 per cent and male employment and food security to 33.8 per cent) and unpaid family most Bhutanese; the approach to work (female 12.7 per cent and agriculture has mainly focused on male 6.6 per cent). Similar to other enhanced production and countries in the world, women’s productivity. unpaid and domestic labour goes largely unrecognised. As per the PHCB 2017, 43.9 per cent of employed persons are The nature of work for the female engaged in agricultural activity. and male differs where women are There are more females than males more inclined towards engaged in agricultural occupation underemployment and low earning at 59.3 per cent as against 34.2 per groups. More women than men cent of males. In the rural areas, work in vulnerable, low-paid, or many women depend on small- undervalued jobs. Given the low scale farming for their livelihoods, female participation in the which are almost always informal employment sector, it is also vital and often unpaid. to change the attitudes and Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 65

Some of the key objectives, Sector for the formation of groups could Key Result Areas (SKRAS) and strengthen the component to strategies such as enhancing food building leadership skills and and nutrition security, improving confidence. Another key area for rural livelihoods, promoting intervention is improving women’s sustainable management and access to microcredit through the utilisation of resources are adopted adoption of facilitative and equity by the agriculture sector. However, (special) measures. in many of the strategies there is an emphasis on provision of inputs Unpaid Household and Care such as seeds and farm Work machineries/equipment, but at the The Beijing Declaration and level of inputs or activities there are Platform for Action (BPfA) and the no gender disaggregated targets. Gender Equality goal of the UN Sustainable Development Goals There are programmes, which deal (SDGs) outline the need to with capacity building, formation of recognise and value the full extent farmers’ groups, technology and of women’s work and all their improved quality of data where contributions to national there is scope to include gender Due to their greater economies including unpaid care specific indicators and engagement in and domestic work through approaches. Even in programmes household care, provision of services, infrastructure where women farmers outnumber and social protection policies, and women are unable men farmers, such as in the promotion of shared to participate in formation of farmers’ groups, men responsibilities within the often play the role of group economic household and the family. employment leaders. opportunities Gender inequalities in time use As such, there is a lack of sex- persist in all countries. Women also disaggregated data in the bear a disproportionate agricultural sector, which makes it responsibility for unpaid care work. extremely difficult to identify and Studies have found that women address gender issues and devote one to three hours or more concerns. Research needs to be a day to housework than men, two conducted on the extent, to which to 10 times the amount of time a rural livelihoods have improved for day to care for children, elderly, men and women, and also on and the sick. 25 per cent of women designing and identifying report care and other family and ergonomic tools for women. personal responsibilities as the reason for not being in the labour A comprehensive and targeted force, versus only three per cent of approach could be adopted to men. This directly and negatively organise women Self Help Groups impacts women’s participation in (SHGs) for marketing in the labour force. In almost every collaboration with Civil Society country, men spend more time on Organisations (CSOs). In addition, leisure while women spend more to enable more women to take up time on unpaid housework. empowered roles, the programme 66 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Bhutan’s Gross National Happiness contribution to overall wellbeing Survey findings in 2015 indicated and the economy. that women were less happy than men and working hours were more An Enabling Environment at the for women than men with men Workplace spending more time on leisure Throughout the earlier plan than women. The measure of Gross periods, the country adopted a National Happiness recognises the gender-neutral approach, it was importance of time use as one of only from the 10th Five Year Plan its nine domains and acknowledges (2008-2013) that a gender care work as an indicator of mainstreaming approach was happiness. implemented through the launch of the National Plan of Action on According to the Study on Unpaid Gender (NPAG). Care Work in Bhutan 2018, women performed 71 per cent of the The subsequent plan included a household maintenance and care separate National Key Result Area Women’s work, 2.5 times more than men. On (NKRA): “Gender Friendly contribution to the the other hand, men spent 2.5 Environment for Women’s economy is times more time than women on Participation.” This plan has led to paid work. It was also found that the establishment of 20 crèches as immense, whether women spent more time on of now, mostly in government through businesses, household and care work organisations. The NKRA of the farms, regardless of income status, age current 12th Five Year Plan (2018- entrepreneurships or cohort, location, the number of 2023): “Gender Equality Promoted as employees, or by people in the household and and Women and Girls Empowered” doing unpaid care employment status. It is clear that also includes targets for creating an work at home women have remained the primary enabling environment for women contributors of unpaid household through strengthening the and care work, which has often establishment of child care crèches barred them from availing better at the workplace and implementing opportunities and livelihoods. the Internal Framework for Gender Equality. The invisibility of unpaid household and care work has led to such work The establishment of crèches and falling on the blind spot of policy development and makers and society as a whole and operationalisation of Internal has given rise to gender Frameworks were prioritised as imbalances and power differentials mandatory indicators in the Annual between women and men. Performance Agreements of 2016- 17 and 2017-18. As such, there is a need for changes in policy and outlook with The Internal Framework puts in a view to addressing the gender place a mechanism within different gap through advocacy on a more organisations for addressing sexual equal sharing of such work in the harassment at the workplace and household and also in terms of also provides guidelines for recognising its value and creating a gender-friendly Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 67

environment through facilities An initiative, the Accelerated and services, ensuring child care Mother and Child Health (MCH) is access to employees and flexi also under discussion to cater to timing for breastfeeding , mothers outside the civil service and ensuring equal representation and those not entitled to six of women in decision making months’ maternity leave, through committees. direct cash transfers while availing mother and child healthcare The quality of care and services. sustainability of the child care crèches are a concern and it is Conclusion important to prioritise caregiver support and government cost Targeted efforts towards enhancing sharing in these initiatives. women’s economic empowerment Awareness needs to be provided leads to poverty reduction and on the long- term gains of having inclusive economic growth. such inclusive support and Women’s contribution to the services in place, both from the economy is immense, whether perspective of providing effective through businesses, farms, early childhood care and entrepreneurships or as employees, development and also harnessing or by doing unpaid care work at the skills and productivity of the home. However, women also remain The initiatives for female workforce. disproportionately affected by creating an enabling discrimination, exploitation and lack environment for Maternity leave was increased of an enabling environment. women’s from three months to six months participation in and paternity leave from five to Women often find themselves in economic activities 10 days in the civil service from part-time, insecure, low-skilled and March 2016 and many of the low-wage jobs, without access to need to be corporations and state-owned economic assets such as land and consolidated and enterprises have now loans. Due to their greater sustained operationalised this initiative. engagement in household care and However, efforts to increase maintenance work, women are maternity leave in the private unable to pursue and participate in sector and some of the economic and gainful employment corporations have not been opportunities. successful. On the other hand, amidst socio- Employees in the private sector, cultural stereotypes and prejudices, armed forces and civil society do the Bhutanese woman is still to rise not have adequate gender- out of her lack of confidence and friendly services/policies in place self-esteem. With the literacy rate and there is a need to raise improving slowly and women’s awareness of gender equality awareness and capacities being concerns to ensure women’s full enhanced, it will be a matter of time participation, employment and before she can participate fully in retention in these sectors. the economy of the country. 68 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

The initiatives for creating an exploring the allocation of a certain enabling environment for women’s per centage of budget based on participation in economic activities the value of unpaid care work for need to be consolidated and interventions to reduce the burden sustained. Reducing the triple of unpaid care work. burden and encouraging six month’s maternity leave to working There is also a need to improve mothers in the private sector and a data collection and analyse longer paternity leave for a more women’s employment and equal sharing of household work entrepreneurship trends. Women’s between men and women must be abilities to secure decent jobs need pursued. to be enhanced through an enabling environment created by It is important to enhance access to policies. Women’s economic finance and provide capacity and empowerment programmes must skills development support result in better access to and particularly for socio-economically control over resources, higher disadvantaged and vulnerable incomes and greater security, women and girls. Recognising the including protection from violence. value of women’s unpaid work and

References Gender Pilot Study, Bhutan 2001 Planning Commission, Central Statistical Organization and UN Agencies. OECD (2012), Closing the Gender Gap: Act Now, OECD Publishing. http://dx.doi.org/10.1787/ 9789264179370-en World Bank (2015) Bhutan Enterprise Survey. World Bank (2010) Bhutan Enterprise Survey. National Statistics Bureau, RGoB (2018-19), The Economic Census of Bhutan. Global Gender Gap Report 2018, World Economic Forum. Gender Equality Diagnostic of Selected Sectors, 2014, NCWC, ADB and UN Agencies. National Plan of Action for Gender (2008 – 2013), NCWC and Gross National Happiness Commission. Draft National Gender Equality Policy 2019, NCWC. Study on Unpaid Care Work in Bhutan, 2018, NCWC and ADB. Eleventh Five Year Plan Report, NCWC, 2018. Labour Force Survey Report 2018, National Statistics Bureau. Gross National Happiness Survey Report, 2015, Centre for Bhutan Studies. Twelfth Five Year Plan, Royal Government of Bhutan (2018-2023), Gross National Happiness Commission. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 69

Endnotes

1 Kazandjian, Romina, L. Kolovich, K. Kochhar and M. Newiak (2016), “Gender Equality and Economic Diversification”, IMF Working Paper, WP/16/140, URL: https://www.imf.org/external/pubs/ft/wp/2016/ wp16140.pdf 2 United Nations (2020), “The 17 Goals”, URL: https://sdgs.un.org/goals 3 Interview with President WEAB. 4 In 1975, the Commission on the Status of Women (CSW) called for the organisation of the first world conference on women to coincide with International Women’s Year. The World Conference of the International Women’s Year was subsequently held in Mexico City; 133 governments participated, while 6,000 NGO representatives attended a parallel forum, the International Women’s Year Tribune. The conference defined a World Plan of Action for the Implementation of the Objectives of the International Women’s Year, which offered a comprehensive set of guidelines for the advancement of women through 1985 (The UN Decade for Women). 5 On December 18, 1979, the Convention on the Elimination of All Forms of Discrimination against Women was adopted by the United Nations General Assembly. It entered into force as an international treaty on September 3, 1981 after the 20th country had ratified it. By the 10th anniversary of the Convention in 1989, almost 100 nations had agreed to be bound by its provisions. 6 Convention on the Elimination of All Forms of Discrimination against Women New York, 18 December 1979, United Nations Office of the High Commissioner for Human Rights (UN OHCHR) 7 The Beijing Declaration and Platform for Action of 1995 is a visionary agenda for the empowerment of women. It still remains today the most comprehensive global policy framework and blueprint for action, and is a current source of guidance and inspiration to realise gender equality and the human rights of women and girls, everywhere. This landmark text was the outcome of the Fourth World Conference on Women, held in Beijing, China, in September 1995. After two weeks of political debate, exchange of information on good practice and lessons learned, and sharing of experiences, representatives of 189 governments agreed to commitments that were unprecedented in scope. 8 The Gender Pilot Study was conducted in 2001, which was the first study on gender in Bhutan. The study provided evidence and further insights on the status of women in Bhutan and provided substantial information for Bhutan’s Initial to Sixth Periodic Report that was submitted to the UN CEDAW Committee in 2004. The Study was conducted by the Gross National Happiness Commission (GNHC), National Statistics Bureau (NSB) and the United Nations Development Programme (UNDP). 9 The Bhutan Gender Equality Diagnostic of Selected Sectors conducted by the National Commission for Women and Children (NCWC) and the Asian Development Bank (ADB) in2014. The study covered eight sectors namely: Agriculture and Rural Livelihoods, Education, Energy, Environment, Private Sector Development, Transport (Roads and Services), Urban Development and Work and Unemployment. 10 Over the past 14 years (since 2006) the Global Gender Gap Index has served as a compass to track progress on relative gaps across countries between women and men on health, education, economy and politics. Through this annual yardstick, stakeholders within each country are able to set priorities relevant in each specific economic, political and cultural context. The data for the Global Gender Gap Report is collected by the World Economic Forum. 11 OECD (2012), Closing the Gender Gap: Act Now, OECD publishing. http://dx.doi.org/10.1787/9789264179370-en 12 Labour Force Survey Report 2018, http://www.nsb.gov.bt/publication/files/pub3td3256de.pdf 70 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Women’s Economic Empowerment from Bhutan’s 5 Perspective: Role of MSMEs

Manju Giri Gender & Social Development Expert, Thimphu

Bhutan used to be a gender-neutral country with practicing traditional matrilineal inheritance patterns for quite some time. However, gender neutrality does not manifest parallel in most sectors of development including women’s participation in MSME.

The Paper will explore the role of women in MSME in Bhutan; economic sectors that attract women and any leverage provided to women entrepreneurs by the Royal Government and the impact of women’s MSME participation and economic empowerment.

Introduction women have taken key roles in private sector development Women in Bhutan have been equal especially in the micro, small and to men traditionally and the laws medium enterprises. protect the rights of Bhutanese women in several ways. Inheritance The MSME is perceived as the has been matrilineal in most backbone of the country’s Bhutanese communities, which economy, which is foreseen to play allows women to head the a central role in fostering household as well as empowers entrepreneurship development, them in decision making. providing employment and reducing poverty. Despite that, significant inequalities remain, though the gaps have fast There were a total of 19,395 micro- been corrected especially in the enterprises in 2017, which showed arena of female school enrolment a sharp increase of 32 per cent and a concurrent increase in since 2012. Micro enterprises alone employment in civil services make up 70 per cent of the total (European Commission in Bhutan registered enterprises, 20.05 per (2007), Bhutan Country Strategy cent are small enterprises, 7.84 per Paper 2007-2013). Simultaneously Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 71

cent medium enterprises and 2.41 Challenges for Women per cent large enterprises (SYB, Participation in MSME 2017, DSCI) while the number of micro enterprises in the informal Social and cultural norms that economy cannot be accounted for. prevent women from participating in economic activities affect their Despite being considered as one of participation in business and the five jewels (priority growth MSME as well. The gender gap in areas) of the economy and education is fast decreasing and accounting for more than 90 per while school enrolment up to cent of all enterprises in the country secondary school level is (SYB, 2017, DCSI, Dorji, IDE,2018), marginally higher among girls the MSMEs had been contributing than boys; one notices a lesser relatively a small share to GDP (EDP, number of girl intake for tertiary 2016). The total contribution of education both within and outside micro, small and medium the country (NSB Yearbook, 2019). enterprises to the GDP in 2014 was 4.4 per cent (Business Bhutan, 2014). Further, women participation in civil service and government The sector accounted for 11.57 per agencies is 34.6 per cent while The MSME is cent of the total employment in positions held at executive level is perceived as the 2016 (66,000 out of 570,231 a meagre 10 per cent, specialist backbone of the working-age population), which is professional category is 16.7 per country’s economy, much lower compared to many cent, professional & management which is foreseen to developing countries where SMEs and supervisory and support category is 32.8 per cent and 39.6 play a central role in constitute about 60 per cent of the total employment in the per cent respectively (NSB fostering manufacturing sector (Beck et al. Yearbook, 2019). entrepreneurship 2007). development, Women occupy lesser civil service providing While MSME itself is a priority positions, while positions held at employment and growth area, the involvement of higher levels are relatively very reducing poverty women in MSME is critical because small. of their wide presence, role as social investors and their vital role in Bhutan’s Labour Force Survey developing enterprises. This is Report 2018 indicates that more critical for inclusive growth, job women (53 per cent) are occupied creation, strengthening gender in farming and agriculture than equality and enhancing women’s men, while 42.7 per cent in private economic empowerment. businesses, mostly small scale. Similarly, women are represented However, women-friendly lesser in the armed forces (5.7 per regulatory, financial and cent), public companies (27.7 per infrastructural support by the cent), private companies (30 per government are some important cent), and NGOs/INGOs (43 per components behind successful cent). women participation in MSME and private sector development. 72 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Furthermore, ever since the Women’s Economic government began to emphasise Empowerment on micro and small entrepreneurship, an increasing Economic empowerment is the number of Bhutanese women have capacity of women and men to started to undertake micro and participate in, contribute to and small businesses, though they still benefit from growth processes in seem to struggle behind men. ways that recognise the value of their contributions, respect their The Department of Cottage and dignity and make it possible to Small Industries (DCSI) has negotiate a fairer distribution of 1 reported that in 2016, men-owned benefits of growth. and operated 63 per cent of the registered micro, small and Economic empowerment combines medium enterprises while only the concepts of empowerment and 35.53 per cent were owned and economic advancement. operated by women. Approaches to economic empowerment include helping Though this seems a big women succeed and advance in the Economic achievement, the majority of marketplace. This encompasses empowerment women-owned/operated increasing skills and access to combines the businesses are subsistence-based productive resources, improving concepts of and not transformative (Dorji, IDE, the enabling and institutional environments, assisting women in empowerment and 2018). their ability to make and act upon economic While gender gaps in terms of decisions to benefit from economic advancement employment and businesses seem growth and development. to be narrowing, more women representation is seen in lesser With the start of Bhutan’s first Five appealing jobs and opportunities Year Plan (FYP) in 1961, the regardless of the level of human government enterprises were set development Bhutan has achieved. up, which grew in number exponentially. Privatisation of There is no preferential financial public sector undertakings began support to women startup in the sixth FYP period (1987-1992). entrepreneurs; hence they have to compete against each other and Government agencies were with male entrepreneurs. Women corporatised during the same have restricted mobility, which period and MSME makes up 98 per disallows them to source raw cent of these enterprises. material from a wide range of supplies. Further, marketing their Since MSME is the backbone of the product to a large clientele base is country’s economy, the SME also a difficulty. support programme was initiated

1https://www.oecd.org/dac/gender-development/aid-women-economic-empowerment.htm Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 73

with ADB support in Bhutan at the Bank Limited (BDBL) to increase turn of the century for the overall market-based finance, and (iv) private sector development of the establishing a cost-sharing facility country. The main objectives were (CSF) and product standardisation to establish a coordinated policy, to strengthen business support strategy, and institutional infrastructure (Bhutan: Micro, framework for MSME; enhance Small, and Medium-Sized business laws and regulation, Enterprise Sector Development increase access to market-based Programme, ADB: Progress Report finance and strengthen business on Tranche Release; November support infrastructure. 2012).

This included policy reform as well While this was an opportunity for Bhutanese women as the strengthening of the entire the generation of wealth for the have been active environment for specific areas of Bhutanese entrepreneurs, it was an entrepreneurs who women’s involvement in MSME in important break for willing women have supported and the private sector development. entrepreneurs to empower Some policy reforms include (i) themselves and secure their necessitated their developing an MSME policy, (ii) stronghold in society. role as household enhancing business laws and head regulations through piloting With this, the Royal Government regulatory impact assessment (RIA) formulated the Cottage, Small and and reducing the time required for Medium Industry Action Plan business formalisation, (iii) where arrangements have been supporting the Bhutan laid down for each of the Development Finance Corporation subsequent plans to enhance (BDFC) now Bhutan Development employment and of women entrepreneurship. 74 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Women in MSME Bhutan has the highest percentage of illiterate women Cottage (micro) and Small entrepreneurs (37 per cent) while Enterprises (MSEs) was recognised only 5 per cent of women in the early 1990s for bringing entrepreneurs have tertiary about Bhutan’s holistic growth and education (Challenges Facing development. Micro and Small Businesses Owned and Operated by Women However, despite being recognised in Bhutan, May 2018). With this, as priority growth areas of the the majority of women in MSME economy and accounting for more have difficulty in book keeping than 90 per cent of all enterprises and expanding their business. in the country (SYB, 2017, DCSI, They are also disadvantaged by Dorji, IDE, 2018), the total their poor negotiating skills and contribution of MSME to GDP in reduced ability to avail minimal 2014 was 4.4 per cent (Business support provided by the Bhutan, 2014) and engaged only government. 11.57 per cent of the total employment in 2016 (66,000 out of The Enterprise Survey 2015, 570,231 working-age population). Bhutan’s vision 2020 revealed significant gender MSME constitutes 97.5 per cent of asymmetry in the ownership and document identifies registered enterprises (SYB, 2017, participation levels in the cottage and small DSCI), while there are several who Bhutanese Cottage, Small and operate without a licence in the industries as priority Medium Industries (CSMI) with informal sector. areas and only 35.53 per cent of the emphasises on the industries owned and operated Bhutanese women have been need to put various by women. The majority of active entrepreneurs who have programmes in Bhutanese women who take up supported and necessitated their micro and small businesses do so place role as household head. This has in absence of opportunity for a demanded women of all walks of formal wage, employment and life to take up entrepreneurship for out of economic necessity as a their personal and family security. strategy to make additional Grocery, tailoring shop, restaurant, earnings to supplement the garment shop, vegetable shop, family income and support general shop, pan shop, weaving children’s education. and beauty parlour are the common economic enterprises that Women’s employment in the attracted women. CSMI sector overall was at 40.8 per cent with the most dominant Bhutanese women also produce presence in the crafts sector, high-value products out of services and agro-processing. medicinal plants, organic herbal Men are generally paid higher plants and essential oil recognising than women across CSMI with the potential niche market for such wage gap more accentuated in some high-value products will small and medium industries but benefit them as women quite marginal at the cottage entrepreneurs (Case Study ADB, industries level. 2011). Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 75

The World Bank’s Bhutan ICA obtained a license. Some of them Report (2010), however, while borrowed licenses from friends or noting a gender disparity in wages, relatives (National Statistics Bureau, does indicate that business 2018). enterprises provided equal non- wage benefits, such as paid leave, The women participants of MSME training and compensation for do not have an organised space to premature termination. There is conduct their business while at the lopsided women ownership as well same time they are vulnerable to as women’s participation in labour regulations that disallow people in CSMI. This is relevant at all levels participating in businesses without of participation. a valid license. Their ability to conduct online marketing is limited About one-half of female due to their educational entrepreneurs working in the background. informal sector in Bhutan are involved in textile weaving or wood While the share of firms operating and bamboo crafts and they from home among registered operate their businesses from entrepreneurs were much less, 80 home. A small proportion per cent of such women conducted business through entrepreneurs operated their sales mobile shops, carrying their business in a rented space in the products and going around to main business centres or traditional offices and homes to the sheds built by non-governmental doorsteps of customers. organisations (NGOs) (National Statistics Bureau, 2018). The remaining shared space with friends or operated from other It is observed that registering their places, such as at the community business enables them to avail of farmer’s markets. Many of such rented spaces in commercial areas. female entrepreneurs have not But it is pertinent that women registered their business or entrepreneurs in MSME be 76 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

encouraged and supported to avail labour away from traditional their licence for business so that sectors like agriculture and their vulnerability in doing business livestock. is minimised. Legal System, Policies While the majority of the women in the MSME were divorced women, and Institutional their participation in business was Agreements to necessitated due to their need for Promote Women in the self-support and supporting their MSME family.Simultaneously, they have difficulty in mobility and they need The ensures to rely on middlemen for raw citizen the right to practice any materials, which were mostly lawful trade and profession or sourced from India. vocation while it mandates the state to develop and execute Further, most products were not policies to minimise inequalities of exported hence limiting the market income, the concentration of size.While divorced women are wealth and promote equitable already disadvantaged, they are distribution of public facilities among individuals and people There is a need to further prone to exploitation. Some support systems must be living in different parts of the review legislation developed to assist such women Kingdom eligible for the state’s and regulations that entrepreneurs in establishing and policy support in their endeavour affect women in conducting their businesses. to earn income through legitimate business, and make process. them more women- Allocating a certain per centage of “The State shall endeavour to friendly credit lines without collaterals to rural women will contribute to promote those circumstances that alleviating rural poverty, would enable the citizens to secure empowering women as well as an adequate livelihood.” This is reducing rural-urban migration. relevant for micro and small businesswomen, as most of them Young people and women in run business enterprises to sustain Bhutan are mostly under- and secure their livelihood. Article represented in the ownership and 9:17 of the Constitution of Bhutan participation in Cottage Small and mandates the State to take Medium Industries. This is measures to eliminate all forms of particularly relevant with the discrimination against women. prevailing high unemployment rates among young people (15.7 Bhutan’s vision 2020 document per cent) and female youths (16.1 and several important national per cent) against 15.4 per cent endeavours identify cottage and male youths (Labour Force Survey, small industries as priority areas 2018), which is foreseen to and emphasises on the need to put exacerbate in the coming decades various programmes in place that due to increasing employable would enhance small-scale population size and a rapid shift of producers’ and entrepreneurs’ Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 77

access to technology, credit and The Loden Entrepreneurship markets to enable them to Programme (LEP) offers interest profitably produce goods and and collateral-free loans (up to Nu. services for the domestic market. 1.5 million) and mentorship to selected entrepreneurs. Although Further, the Royal Monetary LEP is not targeted specifically for Authority mandates commercial women, many women banks to provide collateral-free entrepreneurs are beneficiaries of and low-interest loans to micro the programme. BAOWE supports and small businesses. The Rural marginal women entrepreneurs by Enterprise Development providing spaces in micro-business Corporation (REDCL) provides low- to sell their homegrown and interest credit without collateral homemade products. requirements to micro- entrepreneurs. Similarly, RENEW has a Micro Finance Project (MFP) targeted at Further, the Bhutan Development vulnerable women, which consists Bank Limited (BDBL) provides of microloans, savings credit mainly to women-owned opportunities, credit facilities and enterprises located in rural areas insurance services. They that allocate a minimum of 10 per complement the MFP with the cent of all credit to rural women Livelihood Project that provides entrepreneurs. skills training to women in traditional looming, weaving, About 36 per cent of BDBL’s loan tailoring, food production and borrowers constitute rural women agricultural techniques. micro-entrepreneurs while a few NGOs work towards providing While the Constitution of Bhutan spaces for women in micro- allows every Bhutanese to practice business and build their capacity, any lawful trade, it also supports diversify their products, and and empowers women in their networking through the pursuit of employment and development of women-owned generating a decent living. cluster cooperatives; micro- Simultaneously, financial financing; research, branding, institutions have allowed certain packaging and marketing; and leverage to women entrepreneurs; promotion of women’s niche it is still minimalistic. enterprises. NGOs like Bhutan Association of Women BDBL is still confronting a Entrepreneurs (BAOWE), Tarayana challenge in providing small and Foundation, Loden Foundation, microloans smoothly to rural Respect, Educate, Nurture, women because of high Empower Women (RENEW) administrative cost, low recovery supports agri-business among rate, low population density, women by providing business inadequate infrastructure, poor expertise, financial incentives, and market linkage and technical know-how. entrepreneurship, low literacy rate, low recycling of the fund and lack 78 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

of national microfinance policy Despite sound government policy; (MoFA, 2015). “RGoB shall promote women entrepreneurship in CSMI to There are clear intentions to maximise the economic encourage entrepreneurship, contribution of both genders”; especially targeting the women, there are several impediments to financial accessibility and support women entrepreneurs in from banks have remained one of performing their businesses like the most important impediments for lack of resources for business start- women entrepreneurs. up, operation, growth, and innovation, access to raw materials Conclusion and market. that obstruct the overall growth and success of their Though Bhutan is commended for businesses. gender equality, there is gender disparity in several spheres including The MSME certainly has an economic empowerment. Women important role in the economic own and participate in a empowerment of Bhutanese comparatively smaller number of women. A significant proportion of medium and small enterprises CSMI are owned by women, also a compared to men. The majority of large workforce in the sector is women have undertaken formed by women. Though entrepreneurship out of economic disparities exist in wages, other necessity: the need to earn a non-cash incentives are the same livelihood, sustain a family and for women and men workforce. educate their children. While there is a clear policy to Significant number of such women promote women entrepreneurs in participants are uneducated and Bhutan, there is certainly room to divorced. Women entrepreneurs face improve implementation of policy several challenges and some of and development of programmes which are access to finance, lack of and regulations directed at women appropriate business premises, in the micro and small business growing informal competitions, lack sector so that women could further of business knowledge and skills, contribute towards nation-building labour shortage, government and alleviating several national regulation and tax rates. issues will help women to work to their full potential. While Bhutanese women in business have a huge potential to contribute Recommendations to their individual as well as their families’ and communities’ Provide training and coaching in wellbeing, their endeavour can work finance and business expansion to towards alleviating poverty, help new and established unemployment, imbalanced regional businesses grow. Attaining financial development, gender-related issues, literacy and business acumen could and inclusive socio-economic help boost women’s confidence development at the national level. and counter their risk-averse nature Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 79

while increasing their financial coordinated way, avoiding duplicity accessibility. and confusion among the beneficiaries. Provide skills training for businesswomen who have a Advocate and promote business complete lack of or low formal associations and groups to education in a language they are promote advocacy and business most conversant with. women’s voices especially among less educated and marginalised Promote business women’s access groups and to serve as a reliable to suitable premises for the source of business information, production and marketing of their strengthen women’s participation products and services. More and promote a women-friendly marketplaces in suitable locations business environment and building need to be set up especially in the women’s confidence and identity context of the growing number of as entrepreneurs. women getting into the business. Review legislation and regulations All NGOs and government that affect women in business, and organisations provide need-based make them more women-friendly business support activities in a for its implementation.

References Asian Development Bank, 2014. Bhutan Gender Equality Diagnostic of Selected Sectors (BGEDSS) Asian Development Bank case study, 2011, Bhutan: Micro, Small and Medium-Sized Enterprise Sector Development Programme Ministry of Agriculture and Forestry. (2015). Sanam Drupdrey. Annual RNR Magazine, 5 (1) National Statistics Bureau, 2018, Lham Dorji, Cheda Jamtsho, Tashi Norbu and Cheku Dorji, Challenges Facing Micro and Small Businesses Owned and Operated by Women in Bhutan Thimphu National Statistics Bureau, 2018, Labour Force Survey report, Bhutan National Statistics Bureau, 2019, Statistical Yearbook of Bhutan Royal Government of Bhutan, Ministry of Economic Affairs, Department of Industry, Analysing Constraints to Growth Article in South Asian Survey Royal Government of Bhutan,2015, Ministry of Economic Affairs, Cottage, Small & Medium Industry Action Plan (2015-2018) Royal Government of Bhutan, 1999, Bhutan 2020, A Vision for Peace, Prosperity and Happiness Royal Government of Bhutan, The Constitution of the Kingdom of Bhutan. Royal Government of Bhutan, Gross National Happiness Commission, 2018. Twelfth Five Year Plan 2018 - 2023. Thimphu. Royal Government of Bhutan, Gross National Happiness Commission & National Commission for Women and Children, 2008. National Plan of Action for Gender 2008-2013. World Bank, 2010, Investment Climate Assessment of Bhutan: Removing Constraints to Private Sector Development to enable the creation of more and better jobs

Online references http://www.baowe.org/about/bhutan/ 80 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Women Entrepreneurs of Bhutan: A Yin-Yang Scenario 6 in Women’s Economic Empowerment & Liberty

Binai Lama UN World Food Programme, Thimphu

Over the 25 plus years of my career and journey through the history of the development of Bhutan, I have been deeply associated with various aspects of women empowerment, at a familial, communal and national level. I confess that on many occasions the typically male perspective tends to take over scenarios, sometimes clouding visions of equity and equality. But with practice and meditation on the subject of gender equity and equality, the subject and issues surrounding gender and the cause and effects of these issues become clearer. Such moments are highly enlightening both in terms of understanding the softer invisible context of gender equality and the practical issues of implementing activities on the ground.

More recently, through the project “Trade Facilitation Agreement and Women Participation as Entrepreneur: Evidence from Bangladesh, Bhutan, India and Nepal”, I have had the opportunity to work more closely with women entrepreneurs and review their work and everyday life in detail. My conclusion is very simple: “What stops us from seeing that women are at least as good as men, if not superior, in any facet of life and work socially, economically or politically?”

The Bhutanese Woman and asserted by extreme political, religious and social dogmas. The Bhutanese woman is a fortunate being. She is born free As a mother, wife, daughter, sister and lives free in the freedom of a and friend, among her peers in the normal and simply happy South Asia region, the Bhutanese Bhutanese society. She has no woman must be the luckiest in chains or obstacles that plague terms of her social standing, the women of other societies, induced status of equality in the family in Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 81

society and subjected to an Gender equality is a core increasing worth and recognition in development agenda, globally as all aspects of family life, public life part of the Sustainable and business. Development Goals (SDGs) and nationally in Bhutan’s Five-Year Bhutan has undergone a major Plans and the National Plan of socioeconomic change in the last Action for Gender. Besides being a few decades. The Bhutanese woman focused development objective, has been a notable beneficiary in gender equality is also smart the developments that have economics. changed Bhutanese society and landscape. Increasingly, evidence from many countries around the world The Bhutanese woman has indicates that gender equality benefitted considerably from policy contributes to economic growth. changes and legal reforms in areas For example, greater gender of land and property inheritance, equality can enhance economic education, healthcare, labour and efficiency and improve other employment, business and all development outcomes and aspects of public services. reducing barriers to a more efficient allocation of women’s Bhutan is poised to become a skills and talents can generate middle-income country by 2023, productivity gains. guided by the unique development philosophy of ‘Gross National Bhutan, as a middle-income Happiness’ and also continues to country can make further progress develop rapidly and become more on gender equality. Coinciding with integrated into the global economy. its development, Bhutan has also made considerable strides in closing gaps in gender equality. Bhutan also has the potential and ability to make even greater achievements in gender equality and be on par with leading nations of the world.

However, the Bhutanese woman is also not free from both the traditional and modern bondages of inequality and subtle forms of suppression and oppression. For instance, the matrilineal inheritance practice offers economic opportunities for Bhutanese women and provides them equal status with men. 82 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

However, it also affects her Around 44.6 per cent of women and economic choices, particularly girls experienced one or more forms those related to education, of partner violence during their occupation and the freedom to go lifetime with 9.3 per cent and 3.7 per away to “the Land of cent of them experiencing severe opportunities” as she has to remain forms of physical and sexual violence in one’s village to look after aging respectively. Trafficking in Persons parents and ancestral land. (TIP), particularly, women and children is an emerging issue that Despite guarantees of formal threatens to grow with globalisation, equality from a legal standpoint, increasing movement of people structural and cultural norms across borders and employment continue to pose barriers to the attraction overseas. realisation of gender equality. Bhutan ranks 122 out of 149 Education countries in the Global Gender Gap If one visits a normal Bhutanese Report (2018), which uses school, s/he would see more girls indicators of political than boys in the classrooms, empowerment, health and survival, playground and school premises. educational attainment and Good news is that gender parity has economic participation and been achieved reasonably well in opportunity to assess the extent of basic education. Over the years, gender parity. Bhutan has witnessed impressive achievements in terms of girls’ Gender issues in the health sector education progress. In a 2017 point to critical areas of need, with Government-sponsored study, it a high per centage of teenage revealed that girls made up 50.5 per pregnancies (30 per cent), girls cent of the total enrolment in the getting married before the age of education system. 18, the increasing issue of HIV (among the youth), and the At the primary level, the Adjusted Net feminisation of HIV. The access and Primary Enrolment Rate of girls was quality of health services that cater 98.9 per cent as compared to 98.7 to women’s specific sexual and per cent for boys and the Gender reproductive need is not optimum. Parity Ratio was also in favour of girls Women in rural areas often face with 103 girls for every 100 boys at vulnerabilities and a lack of the primary level. The survival rate for opportunities to access girls at the primary level stand at 95.3 comprehensive health services. per cent exceeding that of boys at 86.5 per cent. A National Commission for Women & Children (NCWC) study (2017) Furthermore, there is an equal revealed the prevalence of violence representation of girls at the against women and girls. It secondary level including in the revealed that more than half (53.4 private schools with a Gross per cent) of women agreed that the Enrolment ratio of 101.4 per cent men are justified in hitting their girls as compared to 90.2 per cent wives under certain circumstances. boys. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 83

However, other elements of gender The Constitution of the Kingdom of equality in education has received Bhutan 2008 provides an less attention, including the quality overarching framework and of learning and outcomes. Girls foundation, within which gender have been performing badly in equality is enshrined. In terms of science and mathematics, which women’s political participation, the pose constraints for a higher level Constitution provides the right to of education options. Poor water vote and to participate in any and sanitation facilities in schools lawful profession as a fundamental are also major gender issues that right of every Bhutanese citizen. can discourage girls from attending schools during menstruation. The 12th Five Year Plan (2018-2023) strives to achieve, “just, Equal participation of men and harmonious and sustainable women at the tertiary level of society through enhanced education remains a major decentralisation”. The National Key challenge to this day. In a study Results Area (NKRA) 10 of the 12th conducted in 2011, only 38 per five-year plan intends to promote cent of college students under the gender equality and empower Royal University of Bhutan was women and girls. To bring the issues women. Girls composed of only 29 of women who own per cent of the scholarship The national gender equality policy or manage a students who had gone outside the (draft) is also aligned with the business, it is country on government Domestic Violence Prevention Act, important to give scholarships to pursue higher and Labour and Employment Act, Penal professional college studies. Code of Bhutan, Child Care and voice to their Protection Act and other relevant opinions, backed by University students within the legislation. empirical evidence country, particularly young college from the ground men seem to doubt Bhutanese To improve women’s participation women’s capacities and potential in the Civil Service and promote for leadership. In the general women in leadership positions, the society, the low literacy rate of Royal Civil Service Commission women and a higher number of (RCSC) in the 12th Five-Year Plan school drop-outs at the high incorporated two Key Performance school level constrains their Indicators (KPIs), “number of participation in a modernising interventions to promote women society. in a leadership position in the civil service” and “number of Women in Public Service gender interventions in the civil service”. With the successful transition to a constitutional monarchy in 2008, Furthermore, the Bhutan Civil Bhutan has adopted multiple legal Service Rules and Regulations and policy frameworks to provide (BCSR) 2018 prescribe conditions women and men with the right to to enable women’s participation in full and equal participation in the civil service, which includes political, civil, economic, social and support to create a positive cultural life at all levels. 84 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

enabling environment for women In the civil service, women to enter and remain in the service. comprised only 36.42 per cent of For instance, the maternity leave the total civil servants (2017), and a (fully paid) for women has been further disaggregation revealed increased from three to six gaps in higher-level positions for months. women pointing towards the ‘glass ceiling’ phenomena seen across However, because of tradition, many other countries. Women in family pressure and other factors the executive level civil servants the Bhutanese woman has lesser add up to only 11 per cent. opportunities to excel than her male counterparts, possessing the Women Judges in the Royal Court same level of education, technical of Justices make up only 14.5 per qualification, or career aptitude. In cent and the State-Owned a 2013 study done by NCWC, Enterprises (SoE) comprise only 9.9 family problems and marriage were per cent of women in their board exclusively reported by females of directors. All these points to a being responsible for their general systemic and systematic flaw that unemployment. has to be immediately addressed with proper and speedy measures. For example, among the females, 6.5 per cent reported being (Un) Employment unemployed due to family Of the total labour force (2018), problems compared to a negligible 300,442 persons are employed; proportion of males (0.7 per cent). 164,792 are males and 135,649 are Similarly, marriage is another cause females, corresponding to 54.8 per for unemployment; 4.6 per cent of cent and 45.2 per cent respectively. females reported this reason, The proportion of employed compared to none among males. persons in the labour force is 96.6 per cent with the proportion higher The female voter composition in amongst males (97.3 per cent) than the general elections have been females (95.8 per cent). quite high, but the election results have been less favourable for The 2018 National Labour Force women. In the 2016 local Survey revealed that labour force government elections, only 11 per participation rate of women was cent of women candidates were 55.5 per cent while men stood at elected as local government 70.1 per cent. The study also leaders. showed that 41.3 per cent of women in the economically inactive In the 2018 parliament elections, population cited housework and only 15 per cent of women were family duties as their reasons for no sitting in the august hall of the income. National Assembly, and 16 per cent were elected to the National The proportion of females working Council (including two eminent in the agriculture sector (63.2 per members nominated by His cent) is higher than that of males Majesty the King). (46.4 per cent) working in the same Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 85

sector, which is beset with hard Around 7,200 owners of single manual labour, lack of farm proprietorship and partnership mechanisation, in steep and establishments are women and unfriendly terrains, facing nature’s 5,700 are men. This means that for onslaught and the vagaries of this establishment type, there are climate change and often with low 26 per cent more female than male returns from farm produce. establishment owners. Of the 74,000 persons employed in The youth unemployment rate is various establishments, 47,000 (64 10.6 per cent with 12.9 per cent per cent) are males and 26,000 (36 (female) and 9.2 per cent (male) per cent) are females. Females unemployment rate. Women have mostly work in a single person much lower participation in regular operating establishments, while paid employment (25 per cent as the share of males is increasing compared to 41.3 per cent for with the increase in the size of the men) and a more substantial establishment. engagement in the agricultural sector (59.3 per cent against 34.2 The findings show that the share of per cent for men). Women’s unpaid male employees consistently and domestic labour goes largely increases with employment size unrecognised. and that of female employees decreases. In single-person Economic Empowerment of establishments, around 72.4 per Women cent of the employees are female and only around 27.6 per cent is As per the economic census 2018- male. In a large employment size 19, the proportion of females category of 100 employees or working in human health and more, the distribution is the social service sector (73.6 per cent) opposite: males make up 76.5 per is significantly higher than males cent while females are only at 23.5 (26.4 per cent). Women’s per cent. employment is also higher than men in sectors like The study also shows that female accommodation, food services and business owners have lower arts and entertainment. educational qualifications than their male counterparts operating There are almost equal shares of similar businesses. This would men and women engaged in imply a constraint for business wholesale and retail trade sectors growth and technical innovation and education, while the male for women-owned business proportion is higher than females ventures. in all other sectors. A significant difference is observed in the The study also shows that relatively construction and mining sector, in more women are there in the three which the proportion of male lowest remuneration categories employment is six times higher (below BTN 15,000). The gender- than female employment. specific distribution of 86 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

remuneration is reflected in the Ground Realities for Women in difference of their median:BTN Business 8,000 for women and BTN 9,700 To bring the issues of women who for men. own or manage a business, it is important to give voice to their Business Environment opinions, backed by empirical Over 90 per cent of business evidence from the ground. The establishments reported that road following topics cover some of the infrastructure, crime, transport and explicit constraints that women business licensing, tax entrepreneurs face in day-to-day administration and customs life in Bhutan. regulations may affect their specific business operations. Access to Global Indices finance and interest rates were The Global Gender Gap Index of the stated as potential bottlenecks by World Economic Forum (2018) 60–65 per cent of the stated Bhutan’s position at 122 out establishments and less than half of 149, which is very poor. The considered labour regulations, UNDP Gender Inequality Index access to raw materials and timely (2018) ranked Bhutan 99 out of 189 clearance or supervision by countries, which assigns Bhutan as government authorities as a having only a middle level of relevant obstacle. human development.

Most women On a realistic level, it was Bhutan is ranked 89 among 190 entrepreneurs are discovered that difficulty in access economies in the ease of doing business, according to the latest not able to take full to finance and paying of rent are the two most common problems. World Bank annual ratings. The advantage due to Electricity and water supply, rank of Bhutan deteriorated to 89 digital illiteracy competition from the informal in 2019 from 81 in 2018. Bhutan sector, taxes, and transport are scored 4.10 points out of 100 on mentioned by more than 30 per the 2018 Global Competitiveness cent of the establishments as actual Report published by the World problems. Women, for a variety of Economic Forum. reasons, face these challenges more severely than their male Despite being a small country, with counterparts. an excellent system of governance and an impressive track record for As women continue to shoulder high utilisation and transparency of the burden of home, care-work and donor funds, Bhutan has witnessed employment, no ecosystem allows slow growth of the private sector. for their participation in the formal The unnecessary hindrances in economy and recognises their doing business has put a big contribution in the informal question mark on its strategies and segment of the economy. The plan to encourage economic persistence of gender stereotypes growth, including focused business continues to permeate the support to women entrepreneurs. economic domain. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 87

Challenges in Domestic Business literacy, lack relevant skills and Bhutanese local business suffers knowledge in their business areas. from stiff competition from There is also increasing imported products, which are competition internally, a low level better in terms of quality, of business diversification and no packaging, shelf life and pricing. growth in the size of the local Bhutanese products are more market. expensive due to the high costs of labour, material, transportation and Challenges in the Export production processes. Business Women entrepreneurs are excited Due to inferior technology, at the idea of exporting their Bhutanese products cannot products overseas. The dream of compete with imported items in their products finding a prominent terms of quality, shelf life, marketplace in the US, Europe, packaging, branding and costing. and Asian countries are Lack of logistic support in terms of very strong motivators for women efficient transport and logistics entrepreneurs. network, cold chains, value additions are other demerits. However, Bhutanese products have their limitations and very few local Bhutanese women entrepreneurs products can be exported on their also cite overwhelming purported strength and charisma. bureaucratic hurdles and processes The challenges arise when the even to start a small business. existing cottage and small-scale There are no suitable tax incentives enterprises are examined through or financial packages for local the lens of the good businesses. Most women manufacturing process, quality entrepreneurs have a low level of standards, food safety and 88 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

regulatory standards, sealing and management, book-keeping, packaging, branding and labelling, accounting and profit loss and application of other calculations would add value to the mandatory standards that are pre- women-owned enterprises. requisites to international trading and global markets. Digital Inclusion Challenges While the positive aspects of digital Pricing of local products is high inclusion are numerous, most due to many factors, which is a women entrepreneurs are not able disadvantage in terms of price to take full advantage due to digital competition with other countries. illiteracy, owing to which the use of Bhutanese products are always digital platforms and social media losing out to cheaper, better and is not harnessed to its maximum. mass-produced goods from Entrepreneurs are not able to neighbouring countries. utilise the digital means effectively to further promote their Financial Challenges businesses. Women entrepreneurs noted that finance is a critical component in E-commerce, online business Bhutan has willingly setting up of enterprises and their platforms and modalities in Bhutan embraced subsequent scaling up. There are are not well designed and set-up to various financing schemes available support business promotion. Even international and from the banks. However, women for a simple act of payment national policies of entrepreneurs express that there is transactions using digital means, gender equity and a disparity in credit availability for the system has many flaws and is equality women entrepreneurs for various risky, costly and cumbersome.There reasons. (e.g. no support from are regular banking issues (for husbands, risk-taking inability, example, credit card physical movement and labour incompatibility) for entrepreneurs issues). and foreign customers.

While women are hard-working Challenges related to Self- and diligent their lack of capacity employment and information stands as a hurdle Just like in other South Asian in availing loans. They said often neighbouring countries, Bhutanese loans are also rejected on certain women also find themselves in the business categories due to bad middle of their family lives – as historical precedents, which affect housekeeper, cook, cleaner, care- new players coming into the giver and care-taker of all sorts of market. household work. They also look after their farms, poultry, dairy and Challenges are also found in family business simultaneously. managing financial aspects of the business in terms of proper book- Most of the women engaged in the keeping tasks, owing to lack of cottage and small businesses are formal training and often lack of also a full-time homemaker and higher level of education. Capacity she has to split time between her building in terms of financial business and her family Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 89

obligations. Often, the business women. Among new start-ups, takes a second seat, in comparison. women entrepreneurs come forward to avail preferences to Discounting the large industries establish their businesses in and businesses where women government incubation centres. owners may be well placed to hire The incubation centres assist them and engage scores of employees to to link up with services such as look at all levels of business, the finance, marketing, production small enterprises demand process, capacity building, continuous and regular time of the branding, packaging and women entrepreneurs. This networking. becomes more difficult because finding domestic help in Bhutan is Implementation challenges are next to impossible and bringing in mainly from lack of support in a Indian maids or servants from consolidated way from various across the border is illegal. stakeholders — a high tax on raw materials, high transportation One possible consolation to this costs, no compensation for issue is that a few entrepreneurs damages during transport, lack of are living in large or extended standardisation/ certification for families, where other family quality assurance are some of the Bhutan has made members lend a helping hand to deterrents. Other factors are lack of legal and political manage the household affairs. proper market information, lack of However, with urbanisation and solid support on capacity building reforms and has more families becoming smaller and technical training. been championing and nuclear, this extended social/ the cause of family support is rapidly Businesswomen often cite changes women’s rights and disappearing. Therefore, there is an in rules and regulations by advancements increasing intensity of the pressure government agencies without of unpaid home demands on sufficient consultation with them as women entrepreneurs. a major constraint. This becomes counterproductive for business Policy Challenges promotion and enhancement of Policy experts agree that although trade. there are very good legislation and policies encouraging small Way Forward businesses, there is no mention of explicit preference for women-led/ The best part of positivity about managed entrepreneurs or traders. the future comes from the fact that Most of the policies, including the Bhutan has willingly embraced ones on business and private international and national policies sector development are gender of gender equity and equality, blind. made legal and political reforms and has been championing the Increasingly more women are cause of women’s rights and aware of these policies, especially advancements. among educated and younger 90 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Enabling Policy Changes most cases. There should be special Bhutan is a signatory and strong schemes designed to support advocate of the Sustainable youth/ women who were forced to Development Goals. SDG 5 leave school from a lower level. highlights the achievement of Continuing education along with gender equality and the targeted skills development empowerment of all women and training programmes would help girls. To fulfill the SDG 5 target and them to reduce their risk of long- to achieve the national goals of term unemployment and prevent Gender equality, the draft Gender them from being economically Equality Policy of Bhutan explores vulnerable and resulting in poverty gender equality through the lens of trap. three domains — political, social and the economic. Promote Entrepreneurial Skills Entrepreneurial skills are the most Another important area is to important asset of the new achieve gender parity in economy as the economy gradually education, through special transforms from subsistence measures to enroll and retain girls agriculture to the business and in schools and integrate issues of service sector. There should be family planning, sexual and some business incubators and reproductive rights into the entrepreneurial parks all over the education curriculum to continue country to fire up the youths’ awareness-raising in areas that (including women’s’) business tackle social barriers to girls’ imagination and to nurture those education. dreams to reality.

Macroeconomic Reforms Services on business coaching, Bhutan invests huge resources in starting new businesses, subsidised hydropower, which has high credit support, entrepreneur macroeconomy turnover but in support network and a safety net terms of employment creation and to mitigate risks should be primary income of working men promoted aggressively. and women, it is not very significant. A focus on other Matching Technical and sectors such as tourism, hospitality, Vocational Education to Market agriculture, arts and crafts, food Demands processing and textiles would pave This is an important strategy to better opportunities for women reduce skills mismatch and entrepreneurs in terms of enhance the employability of job enhancing business and creating seekers particularly among the additional jobs on the ground. youth. There is also low esteem and satisfaction derived from their Support to Mitigate Low occupations. Education Effects Low level of education and Therefore, vocational and joblessness leads to economic educational training programmes vulnerability and social exclusion in must be reviewed and aligned to Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 91

the labour market requirements in lead to commercialisation of the close collaboration with industries. farm economy. Off-farm activities Training courses where there is a have the potential to supplement clear surplus of labour should be the rural family income. replaced with courses that have current and future demand. Social Therefore, the thrust should be on standing, remunerations and agro-processing, snack and food respect for blue-collar jobs should making, retail, tailoring, weaving, be promoted strategically. paper making and arts and crafts to generate additional income. By Diversification of Farm Business investing in off-farm income, it The agriculture sector employs could also support expenses on over 54 per cent of the population agriculture inputs and contribute but contributes only about 11 per to higher farm production. cent to the GDP. As agriculture is the main source of income, both Making Private Sector farm and off-farm activities — the Employment Attractive two components of the rural The Bhutanese private sector still economy must be transformed and fails to attract qualified youths or diversified to bring positive good quality human resources. It is changes in production, still perceived as being not employment, income and living attractive for youths because of standards. various obvious reasons.

Mechanisation, modernisation and Promoting working environment intensification of farming would through adoption and usage of help to enhance agriculture modern production technologies productivity, which in turn would and techniques, attractive social 92 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

security and welfare schemes, an preferential fiscal and non-fiscal opportunity for career and incentives. Further, there is a need professional development, flexible to create a conducive investment working hours and decent working climate and business environment conditions will go a long way in for the private sector. making employment in the private sector more attractive. “Walk the talk”:The punch line used by most Governments “Private To ensure this the government sector is the engine of growth” must also support the private should be implemented seriously sector through training and through a swift range of fitting development, access to policies and actions. infrastructure, market and finance,

References National gender equality policy (draft) 2019, National Commission for Women & Children (NCWC), Thimphu Bhutan Economic Census of Bhutan 2018-19, National Statistics Bureau (NSB) & World Bank, Thimphu Bhutan National Labour Force Survey of Bhutan 2018, National Statistics Bureau (NSB), Thimphu Bhutan Survey of Country Gender Profile (Kingdom of Bhutan), February 2017, Japan International Cooperation Agency (JICA) Economic Development Policy (2016), Royal Government of Bhutan, Thimphu Bhutan Bhutan Gender Equality Diagnostic of Selected Sectors March 2014, Asian Development Bank (ADB), UN Systems, Thimphu Bhutan Gender & employment challenges 2013, National Commission for Women & Children (NCWC), Thimphu Bhutan The World Bank Group Bhutan Gender Policy Note, 2013 GDTF project Grassroot awareness generation workshop report, BMCI- CUTS, Thimphu Bhutan GDTF Project Scoping study report, BMCI – CUTS, Thimphu Bhutan www.Tradingeconomics.com Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 93 INDIA 94 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 95

Gender Inequality Dimensions of Trade 7 Facilitation

Bibek Ray Choudhuri Associate Professor, Indian Institute of Foreign Trade, Kolkata

Gender equality in trade interventions across the world, in addition to fuelling growth in the economy, bring about several positive outcomes. While looking at gender inequality and India’s bilateral trade, it was found that trade is significantly lower with countries having higher inequality. Further, countries with higher gender inequality are found to have higher trade facilitation costs. A causality test showed that lack of trade facilitation causes gender inequality for the sample countries.

In this background, the Paper aims to understand the various dimensions of trade facilitation measures and their effectiveness. To understand the impact of trade facilitation on trade a gravity model involving India’s total trade with its partners was estimated. The paper thus shows that there is a lot to gain in terms of higher trade by reducing trade facilitation costs. Making trade facilitation more gender- sensitive, additionally, may help in reducing gender inequality.

Introduction enter into Multilateral Agreements to end the protectionist era and Cross-border movement of goods embark on a new path of shared and services go through different growth. This brought in obligations stages of scrutiny. The major to reduce trade barriers, mostly reason for such close watch has to tariffs. Further, technological do with determination of values of breakthroughs caused the goods and services that are transportation and communication crossing the lines. Governments costs to reduce significantly. Trade need to impose a variety of taxes thus flourished with the to boost their revenues. involvement of most of the countries. Further, they need to ascertain whether any restricted goods are Even though theoretically trade being traded. The post-world war increased efficiency, it was not situation forced the countries to without qualification. Trade may

* Research assistance by Vaibhav Bajpai is gratefully acknowledged. 96 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

cause misery, especially for clearance through efficient, developing and less-developed transparent, risk-based, countries with weak and less- coordinated, digital, seamless and productive production structures. technology-driven procedures that Once their markets are flooded are supported by state-of-the-art with goods from advanced maritime ports, airports, land countries, their manufacturing and border crossings, rail, road and agricultural sector found it difficult other logistics infrastructures. to compete with the firms supplying goods from developed Trade facilitation also focuses on countries. bringing down the overall cargo release time. For imports, the This led to the closing down of overall cargo release time for sea firms and loss of employment. The cargo is within 3 days, for Air situation was more precarious in Cargo & Inland Container Depots the agriculture sector where (ICD) the same is within 2 days, and Trade facilitation livelihoods were lost. Such for Land Customs Stations within aims to transform countries were protected through the same day. Similarly, for exports- the ecosystem of clauses like ‘Special and Differential For Sea Cargo within 2 days and cross-border Treatment (SDT)’ under the aegis of for Air Cargo, Inland Container clearance through WTO. Depots & Land Customs Stations on the same day efficient, As the years progressed and the transparent, risk- going got tough in WTO, given the India has taken a significant step based, coordinated, increase in the bargaining power of towards strengthening trade digital, seamless the developing countries, trade facilitation by streamlining its and technology- progressed through the RTA and customs and border procedures driven procedures FTA route, Intra-Agreement trade with the ratification of the World between developed groups being Trade Organization’s Trade much higher than developing ones. Facilitation Agreement (TFA). India’s As tariffs came down substantially ratification of the WTO Trade due to WTO and such Plurilateral Facilitation Agreement has helped Agreements, major play shifted to to improve its border procedures Non-Tariff Barriers (NTBs). and boosted economic growth by cutting trade costs and improving A series of very covert trade flows. requirements were increasingly being used, especially by Trade Facilitation developed countries, to restrict trade from developing and less- Measures and their developed countries. The need for Effectiveness ‘Trade Facilitation’ which was felt a Trade facilitation measures aimed long time ago assumed a lot of at improving the trading significance due to the shifts in environment by reducing barriers that happened over time. transaction costs and thereby increasing the gains from trade. Trade facilitation aims to transform The use of trade facilitation the ecosystem of cross-border Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 97

measures in technology • Infrastructure Augmentation: augmentation and infrastructure enhancement of infrastructure, has gained traction in recent times particularly the road and rail especially in South Asian countries infrastructure leading to ports like India, Nepal. etc. for tackling and the infrastructure within trade bottlenecks. The facilitation ports, airports, ICDs, Land of legitimate trade is a core Customs Stations is a major objective of such measures. enabler for growth in trade that cuts across all stakeholders. The crux of Trade Facilitation measures are based on the The efficiency of such measures is foundation of the mentioned four benchmarked by some diagnostic pillars: tools that help in identifying trade facilitation and logistics • Transparency: focus on bottlenecks in global supply chains. improved access to accurate and complete information. • The World Bank has developed the Trade and Transport • Technology: development and Facilitation Assessment use of digital and detection (TTFA) tool to identify factors technologies to ease out trade that contribute to the bottlenecks and improve transaction costs based on efficiency. which trade facilitation measures are suggested. • Simplification of Procedures Similarly, corridor diagnostic and Risk-based Assessments: studies and border audits have simplified, uniform and been conducted to cover areas harmonised procedures with such as corridor transit and increased adoption of a risk- transport cost, physical based management approach. 98 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

impediments, process vii. Formalities-Automation: constraints and institutional and Electronic exchange of data; regulatory constraints. automated border procedures; use of risk management. • The Diagnostic Trade viii. Formalities-Procedures: Integration Studies (DTIS) Streamlining of border controls; designed under the Enhanced single submission points for all Integrated Framework (EIF) is required documentation (single used when assessing trade windows); post-clearance audits; facilitation supply chains in authorised economic operators. terms of infrastructure support, ix. Internal Cooperation: Co- non-infrastructure support and operation between various transport policies. border agencies of the country; control delegation to Customs • OECD has devised the following authorities. indicators to assess trade x. External Co-operation: facilitation policies, areas for Cooperation with neighbouring action and impact of reforms: and third countries. i. Information Availability: xi. Governance and India has taken a Publication of trade Impartiality: Customs structures information, including on the and functions; accountability; significant step internet; inquiry points. ethics policy. towards ii. Involvement of the Trade strengthening trade Community: Consultation with • Logistics Performance Index facilitation with the traders. (LPI): Developed by World Bank, ratification of the iii. Advance Rulings: Prior LPI evaluates the performance of WTO’s Trade statements by the countries on trade logistics on 6 Facilitation administration to request key dimensions: traders concerning the i. Efficiency of the clearance Agreement classification, origin, valuation process (i.e., speed, simplicity method, etc., applied to specific and predictability of formalities) goods at the time of by agencies, importation; the rules and including Customs. process applied to such ii. Quality of trade and statements. transport-related infrastructure iv. Appeal Procedures: The (e.g., ports, railroads, roads, possibility and modalities to information technology). appeal administrative decisions iii. Ease of arranging by border agencies. competitively priced shipments. v. Fees and Charges: Discipline iv. Competence and quality of on the fees and charges logistics services (e.g., transport imposed on imports and operators, customs brokers). exports. v. Ability to track and trace vi. Formalities-Documents: consignments. Simplification of trade vi. Timeliness of shipments in documents; harmonisation in reaching destinations within the accordance with international scheduled or expected delivery standards; acceptance of copies. time. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 99

• Ease of Doing Business Index: agencies to help standardise This tool helps analyse how testing and certification, enable conducive is the external the establishment of NSWs, and environment for setting up an explore mutual recognition enterprise. agreements. • Develop and implement Trade Facilitation in through-transport motor vehicle agreements to reduce SAARC the levels of border Trade facilitation in SAARC is transshipment. centered around the following • Develop trade-related operational priorities: infrastructure in SAARC ports, • Simplifying trade land border crossings including documentation increased “last mile” approaches and ICDs automation, and expedite and bonded logistics facilities border clearance procedures to adjacent to land borders and in facilitate the movement of major centres of trade. goods and vehicles. • Build capacity to support the • Promote automation in border use of modern techniques and agencies and facilitate the international best practices and development of Networked enhance regional cooperation Single Windows (NSWs) by and coordination mechanisms maximising their links with all among stakeholders involved in border agencies. trade facilitation. • Facilitate the strengthening of national conformance bodies In the same spirit, India and most and the development of of the SAARC have rolled out a infrastructure and facilities in slew of measures with the SPS-related and other border aforementioned priorities as it is 100 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

germane for its vision of trade and unorganised transport facilitation. services are giving rise to • India and most SAARC hidden costs. The reduction of countries have ratified SAFTA, cost by even 10 per cent will WTO Trade Facilitation lead to growth in exports. Agreement, WCO, etc., to • Reduction in Cargo Release create binding commitments to Time: The objective is to reduce expedite movement, release the dwell time of cargo as and clearance of goods, to follows: for imports – within 3 improve communication and days for Sea Cargo, within 2 coordination on customs days for Air Cargo and Inland matters which will help Container Depots and on the landlocked countries in the same day for Land Customs region to meet the Stations and exports – below 2 commitments, particularly days for Sea Cargo and on the through capacity building same day for Air Cargo, Inland initiatives. Container Depots and Land • Improvement in Ease of Customs Stations. An immediate Doing Business Rankings 40 per cent increase in the through Reduction in the Direct Port Delivery Transaction Cost and Time: consignments is also aimed at This is a key objective of the for this purpose. various governments in the • Paperless Regulatory region. In context to India, they Environment: Digital India is aim to enhance India’s Ease of the government’s flagship Doing Business rankings to the programme for enhancing the top 50 brackets in the next 3-5 use of automation in all years. This will also correlate processes. The aim of digitizing with the Make in India our processes and reducing programme which aims at paper is a key element in the increasing the contribution of plan. It will meet the other goals the manufacturing sector to 25 of improving efficiency, creating per cent of the Gross Domestic a professional work ethos and Product (GDP) by the year 2020 reducing costs in the long run. from its current 16 per cent. The It will also provide a platform cost of trade in India is quite for integrating regulatory high compared to many SAARC agencies through an online countries. environment. Reduction in transaction costs Indian customs introduced e- for export and import has been seals that have enabled them to a constant endeavour for the reduce the risk of fraud and government. Task Forces set up security threats. In a major push for this purpose have holistically for improving the system of given recommendations. High transit, Bhutan and Nepal have transaction costs are a serious introduced the Electronic impediment to the growth of Cargo Tracking System trade. Variation in lead times of (ECTS); however, it is applicable containers shows that unreliable only for the transit portion. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 101

ECTS has also simplified the proposed new rules or transit procedure for the amendments. The objective is to seamless movement of cargo reach the maximum score of 6 vehicles. from the current 3.4 in the In the next phase, ECTS shall Global indicators of regulatory be introduced for tracking the governance-a World Bank export or import cargoes from project, which explores origin to destination. ECTS shall regulatory practices in three also be introduced for road core areas: movement of containers. With • Publication of proposed the successful operation of ECTS, regulations India and Nepal and other • Consultation around their landlocked SAARC countries may content agree for the interoperability of • The use of regulatory impact Custom Single Windows or assessment Custom Electronic Data • Improved Investment Climate Interchange (EDI). through Better Infrastructure: • Transparent and Predictable According to the United Nations Legal Regime: Easy access to Conference on Trade and information, updating of Development (UNCTAD) World information, value enhancement Investment Report 2016, India by information and infusing acquired 10th slot in the top-10 mobility to information countries attracting the highest availability are the various FDI inflows globally in 2015. The dimensions on which we can report also mentioned that, enhance our transparency among the investment quotient. promotion agencies, India has There is also a need to moved up by one rank to develop a legally binding become the sixth most preferred mechanism for prior consultation investment destination and the with the trade about the highest in SAARC.

Table: 7.1: Ease of Doing Business and Trading Across Border Rankings for SAARC

Global Rank Ease of Doing Business Trading Across Borders

Economy 2018 2019 2018 2019

Bangladesh 177 176 173 176

Bhutan 75 81 17 28

India 100 77 119 80

Maldives 136 139 152 155

Myanmar 171 139 163 155

Nepal 105 110 76 82

Sri Lanka 111 100 86 93

Source: Doing Business, accessed December 2018 102 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Figure 7.1: LPI and Its Various Components for SAARC

Table 7.2: LPI Rank and Score for SAARC

Country Year LPI Rank LPI Score

Bangladesh 2018 100 2.58

Bhutan 2018 149 2.17

India 2018 44 3.18

Maldives 2018 86 2.67

Myanmar 2018 137 2.30

Nepal 2018 114 2.51

Sri Lanka 2018 94 2.60

Table 7.3: Various Components of LPI for SAARC

Country Year Customs Infrastructure International Logistics Tracking Timeliness Shipments Competence and Tracing

Bangladesh 2018 2.30 2.39 2.56 2.48 2.79 2.92

Bhutan 2018 2.14 1.91 1.80 2.35 2.35 2.49

India 2018 2.96 2.91 3.21 3.13 3.32 3.50

Maldives 2018 2.40 2.72 2.66 2.29 2.60 3.32

Myanmar 2018 2.17 1.99 2.20 2.28 2.20 2.91

Nepal 2018 2.29 2.19 2.36 2.46 2.65 3.10

Sri Lanka 2018 2.58 2.49 2.51 2.42 2.79 2.79

Source: World Bank LPI (accessed November 2018) Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 103

Given below are the various SAARC countries ranked as per some of the benchmarks of the trade facilitation measures:

From Tables 7.1-7.3 and Figure 7.1, it is evident that India has substantially improved in terms of trade facilitation and the country is a leader to the SAARC countries. But, given the country’s rank, it has a long way to go when compared to the global best practices.

A pertinent question to ask at this juncture is, does improvement in trade facilitation contributes to enhanced trade. If countries take steps to improve in this aspect will they achieve a higher level of cross-border trade. To answer this question for India we performed an empirical analysis of how the country’s trade with its partners is impacted by trade barriers. The Gravity Model has been used to estimate this relationship. The basic equation is as follows:

Tradeijt = Total trade between India (i) and partner (j) at time (t)

GDPit = Gross Domestic Product at 2010 constant Dollar terms for India (i) in time (t)

GDPjt = Gross Domestic Product at 2010 constant Dollar terms for Partner (j) in time (t)

tijt = is the tariff cost estimated by Arvis et. al. (2011) for India (i) with a partner (j) at a time (t). Here we have taken the geometric mean version which is =

tij is the simple average tariff imposed by country i on country j.ntbijt = following Anderson and van Wincoop (2004) which includes all trade costs other than tariff from the comprehensive trade costs. It includes all costs other than tariff which are incurred while country i trades with country j compared to if they had traded domestically. Thus, this can be thought of as a comprehensive measure of lack of trade facilitation including matters in logistics.

Data for trade has been accessed from WITS (https\\wits.worldbank.org), data on GDP at constant 2010 dollar terms have been obtained from World Development Indicators (https://data.worldbank.org/indicator/ NY.GDP.MKTP.KD) and that for the tariff costs and trade facilitation costs from UNESCAP transactions cost database (https://www.unescap.org/ resources/escap-world-bank-trade-cost-database). We have considered data from 2006 to 2017 for 147 partner countries trading with India. The choice is guided by the availability of data.

Since the model (Gravity Model) is a multiplicative one while linearising we have used the logarithm of the variables specified in the above model. Hence the coefficients on the independent variables can be interpreted as 104 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Table 7.4: Results of Pooled Regression

Source SS df MS Number of observations =1705

F(4, 1700) =2263.83

Model 7680.389 4 1920.09736 Prob> F =0.000

Residual 1441.877 1,700 0.848162849 R-squared =0.8419

Total 9122.266 1,704 5.35344265 Adj R-squared =0.8416

Root MSE =0.92096

Variables Coefficient Standard Error t-ratio Prob>t [95% Conf.Interval]

Log(Trade)

Log(tij) -2.212* 0.680212 -3.25 0.001 -3.54652 -0.878241

Log(ntbij) -2.636** 0.067683 -38.95 0.000 -2.76882 -2.503316

Log(GDPj) 0.531** 0.015167 35.01 0.000 0.501205 0.5606985

Log(GDPi) 0.737** 0.104542 7.05 0.000 0.53164 0.941729 Constant -7.226* 3.098521 -2.33 0.020 -13.3034 -1.148759

** implies significant at the 1% level and * implies significant at 5% level.

corresponding elasticities. The Gender and trade are very results of the pooled regression are important topic especially given presented in Table 7.4. the development dimension of international trade. International The simple pooled regression trade by expanding production confirms the basic hypotheses. Total opportunities can increase demand trade is positively related to the for the female workforce. GDPs and is negatively related to the tariff cost and trade facilitation In India, sectors like food cost variables. All the coefficients processing, leather, textiles and are statistically significant and have others employ a sizable number of large magnitudes. Especially our female workers. Though the variable of interest, the lack of trade reasons may not be very facilitation (ntb ) has a significantly encouraging it leads to higher ij negative impact on the total trade employment and a reduction in of India and its partners. gender disparity in the workforce.

Specifically, the value of elasticity is Firstly, female workers are paid less -2.636. This implies that if the trade than their male counterparts facilitation costs across the partners having similar skills. Given the and over time increases by 1 per requirement to be competitive in cent total trade between India and the international market, trade can its partners reduce by 2.636 per lead to higher female employment. cent. Thus, there is a lot to gain from adopting trade facilitation Further, demand for such work measures. may be seasonal or uncertain in Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 105

which case female workers seeking jobs for supplementary income may be preferred to male workers. Rajuet. al. (2016), while looking at the impact of trade liberalisation on workers’ gender-mix, found that higher trade leads to an increase in female employment in India.

More interesting was the finding that when trade growth came down post-Global Financial Crisis, gender-disparity in the workforce was reduced due to female employment coming down by less than that of male employment.

In terms of trade facilitation, the gender dimension majorly looks at whether there are additional barriers while females engage in any part of the trade value chain. Are there gender-sensitive policies to facilitate female participation in international trade?

These aspects have not been researched much and there is a lack of appropriate secondary data to exactly look at the issues at hand and how they are enabling or inhibiting female participation in international trade. In the absence of such data, we have attempted to do two things.

First, we make use of appropriate data on gender inequality and look at its impact with other trade facilitation variables on India’s bilateral trade described by Equation 1. We have used the Gender Inequality Index (GII) published by UNDP.1

This index is a composite gender-based disadvantage index-based on three dimensions reproductive health, women empowerment and labour

Table 7.5: Trade and Gender Inequality

Source SS df MS Number of observations = 988

F(3, 984) = 877.64

Model 3508.999 3 1169.666 Prob> F = 0.000

Residual 1311.415 984 1.332739 R-squared = 0.7279

Adj R-squared = 0.7271

Variables Total 4820.413 987 4.883904 Root MSE = 1.1544 Log(Trade) Coefficient Standard Error t-ratio Prob>t [95% Conf.Interval]

Log(tij) -4.722** 1.131 -4.18 0.000 -6.94 -2.503

Log(ntbij) -4.136** 0.086 -47.84 0.000 -4.305 -3.966

Logij -0.153* 0.057 -2.7 0.007 -0.265 -0.042 Constant 34.468** 0.469 73.48 0.000 33.547 35.388

** implies significant at the 1% level and * implies significant at 5% level

1.http://hdr.undp.org/en/data# 106 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

force participation. For our analysis, we have used data from 2010 to 2017 for 134 countries. The following equation was estimated using a pooled- regression model.

GIIjt = Gender Inequality Index for India’s partner (j) at a time (t)

Table 7.5 presents the results. All the variables have the expected signs and are statistically significant. We are more interested in the relationship between gender inequality and India’s trade with its partners. Results show that with countries having higher gender inequality total trade is lower for India. One reason for this may be that gender inequality is also reflected in trade facilitation, or lack of it, though this will require much more detailed data to conclusively say something. We have run a further regression to see if trade facilitation is impacted by gender inequality for India’s trade partners. If it does, then this can be the starting point towards a further investigation into the nature of gender disparities in trade facilitation.

The empirical equation we estimate is as follows.

The results are presented in Table 7.6.

Table 7.6: Trade Facilitation and Gender Inequality

Source SS df MS Number of observations = 988

F(1, 986) = 72.9

Model 13.055 1 13.055 Prob> F = 0.000

Residual 178.568 986 0.181 R-squared = 0.0681

Adj R-squared = 0.0672

Variables Total 191.623 987 0.194 Root MSE = 0.42556

Log(ntbij) Coefficient Standard Error t-ratio Prob>t [95% Conf.Interval]

Logij 0.160** 0.019 8.49 0.000 0.1232706 0.197384 Constant 5.222** 0.027 195.81 0.000 5.169407 5.274068

** implies significant at the 1% level and * implies significant at 5% level

There is a significant positive relationship between lack of trade facilitation and gender inequality. Countries with higher gender inequality also have higher trade facilitation costs. Though many other variables should have been included to get a robust relationship between the two, the results do point out a lack of trade facilitation measures in countries with higher gender inequality. Chances of trade facilitation being gender- sensitive are thus less for such countries compared to the others. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 107

Table 7.7: Pairwise Panel Granger Causality Tests

Sample: 1/01/2010 1/01/2017

Lags: 2

Null Hypothesis: Obs F-Statistic Prob.

NTB does not Granger Cause GIIJ 804 4.58525 0.0105

GIIJ does not Granger Cause NTB 0.03060 0.9699

GIZ (2014) looks at such The more common approach relationships. Prevailing gender following Dumitrescu and Hurlin inequalities can lead to trade (2012) which allows for differing facilitation measures being gender- coefficients across cross-sections biased. The regression results in could not be used due to lack of an Table 7.6 points in that direction. appropriate number of periods in But, it is not a test of causality. our sample. Further, reverse causality may also be present, as acknowledged by Results in Table 7.7 show that the

GIZ (2014). causality flows from NTB to GIIJ. This is for the countries that trade Trade facilitation can have an with India. It can be viewed as a impact on gender inequality fairly general result as it involves through provisions that impede the 134 countries of all shapes and participation of females in trade sizes. Thus, the lack of trade value chains worsening their facilitation has an impact on condition vis-à-vis male gender inequality for the sample counterparts. Females are normally set of countries. located at the lower part of the value chains were time constraints, This calls for higher efforts towards limited access to inputs, lack of skill trade facilitation and to make it formation due to low literacy levels more gender-sensitive. Given the and limited business development problems faced in general by services may worsen their women, it seems that the impact is wellbeing. This may increase more negative for them leading to gender inequality. higher gender inequality.

A causality test is performed to see Conclusion whether lack of trade facilitation measures cause gender inequality In this paper, an attempt has been or is the reverse causality true? made to understand the various Here the stacked causality tests dimensions of trade facilitation following Granger (1969) have measures and their measurements. been used. It treats the panel data It has been found that though set as a single large stacked data India is in a better position on set and assumes coefficients are these dimensions among the the same across cross-sections SAARC countries, the country has a (common coefficient). long way to go when we compare 108 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

her to the developed countries and There is a significant positive some other emerging markets. relationship between the two.

Further, to understand the impact Hence, countries with higher of trade facilitation on the trade gender inequality also have a itself, we have empirically higher trade facilitation costs with estimated the relation between India. It may thus be concluded total trade for India with its trading that the chances of trade partners and trade facilitation facilitation to be gender-sensitive variables. Results show that the is lower for such countries. A lack of trade facilitation has a causality test has been further significant negative impact on attempted to find out whether a India’s bilateral trade. lack of trade facilitation impacts gender inequality or the latter Moreover, we have also looked at causes the former. the gender-dimension of the problem. When we look at the Results show that lack of trade relationship between gender facilitation causes gender inequality and India’s bilateral inequality for the sample trade, we find that trade is countries.The paper thus shows significantly lower with countries that there is a lot to gain in terms having higher inequality. To of higher trade by reducing trade understand the reasons for this, we facilitation costs. By making it further regress the trade facilitation more gender-sensitive, cost variable on gender inequality. additionally, it may help in reducing gender inequality.

References Anderson, James E. and van Wincoop, Eric, Trade Costs (May 2004). NBER Working Paper No. w10480. Available at SSRN: https://ssrn.com/abstract=541705. Arvis, J-F, R. Carruthers, and G. Smith. 2011. Connecting Landlocked Countries to Markets: Trade Corridors in the 21st Century. Washington, D.C.: World Bank, Directions in Development. Dumitrescu, E. and Hurlin, C. (2012).“Testing for Granger Non-causality in Heterogeneous Panels”, Economic Modeling, 29, 1450-1460, 2012. GIZ (2014). Trade and Gender – exploring a reciprocal relationship: Approaches to mitigate and measure gender-related trade impacts. Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. (Accessed from http://marketazelenka.com/portfolio-item/trade-gender/) Granger, C. W. J. (1969). “Investigating Causal Relations by Econometric Models and Cross-Spectral Methods”, Econometrica, 37, 424–438, 1969. Raju, Sunitha and Ray Chaudhuri, Bibek and Mishra, Mridula S., Trade Liberalization and Employment Effects in Indian Manufacturing: An Empirical Assessment (September 1, 2016). PEP working paper series 2016-19. Available at SSRN: https://ssrn.com/abstract=3164440 or http://dx.doi.org/10.2139/ ssrn.3164440 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 109

Women Entrepreneurship in India and their Economic 8 Empowerment

Vikas Deep Assistant Professor, Punjabi University, Patiala

In modern times, it is believed that providing education and social status to women brought happiness to many. Encouraging women to participate in economic activities can be beneficial for a country in many ways. On one side, it provides employment opportunities, generates income, and on the other hand, it creates wealth for the economy. In India, under the agenda of promoting MSME sector, the focus is also on women economic empowerment through their role as an entrepreneur and come up with many related schemes. It is observed that the situation is still not satisfactory because of a lack of awareness and education, which is a matter of concern.

This Paper highlights the present status of women entrepreneurship in India, their role in the economy, and the policy measures adopted by the Government of India to improve the existing situation.

Women as an Under the agenda of promoting Entrepreneur MSMEs (Micro, Small and Medium Enterprises) sector in India, The time has come to diversify the Government is emphasising on the role of women in the Indian enhanced role of women in economy. Previously, it is entrepreneurial activities for concentrated only under the four generating more income and walls of the home but with the employment. This will provide advancement of education and them an opportunity to empower modernisation, women are economically and socially. In India, diversifying their activity portfolio the distribution of women-owned and taking part in income- MSMEs is more skewed towards generating activities. They are males. involved in many such activities ranging from agriculture to the As per the data given in Table 8.1, manufacturing and services sector. males dominate the ownership of 110 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Table 8.1: Ownership Structure of MSMEs in India (in per cent)

Area Male Female

Rural 77.76 22.24

Urban 81.58 18.42

Total 79.63 20.37

Micro 79.56 20.44

Small 94.74 5.26

Medium 97.33 2.67

Total 79.63 20.37

Source: Annual Report 2017-18 , Ministry of MSME ,Government of India

MSMEs in comparison to females. some states are doing well relative It may be observed from Table 8.1 to other states. As per the NSS 73rd that 95 per cent of small and round of the survey, there are total medium enterprises are owned by of 12,390,523 women-owned males whereas their per centage is proprietary MSMEs in India, which relatively lower in the case of is 20 per cent of total owned micro-enterprises. The share of proprietary MSMEs in India. Table male-owned micro-enterprises is 8.2 shows the top 10 states as per 80 per cent whereas 20 per cent their share in women-owned are owned by women. MSMEs. The shares of leftover states are less than 1 per cent and Further, the state-wise pattern of in some cases it is negligible. women-owned MSMEs shows that

Table 8.2: State-wise Share of Women Owned MSMEs in Total Women Owned MSMEs (1,23,90,523)

Rank State Share Rank State Share

1 West Bengal 23.42 9 Kerala 4.00

2 Tamil Nadu 10.37 10 Rajasthan 3.07

3 Telangana 7.85 11 Madhya Pradesh 2.99

4 Karnataka 7.56 12 Jharkhand 2.51

5 Uttar Pradesh 6.96 13 2.38

6 Andhra Pradesh 6.76 14 Punjab 1.81

7 Gujarat 6.67 15 1.36

8 Maharashtra 6.47 Total 94.18

Source: Annual Report 2017-18, Ministry of MSME,Government of India Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 111

Looking at the skewed distribution activities increase the amount of of MSMEs ownership towards the effective labour force in the The Government of males, there is a need to develop country and contributes towards a India is emphasising such policies, which promote strong resource base. on the enhanced role female participation in of women in entrepreneurial activities for their Initiatives to Promote entrepreneurial social and economic activities for empowerment. Women Entrepreneurs generating more To promote the role of women income and Women Economic from the housewife to an employment to Empowerment and entrepreneur, the Government of India has taken many initiatives. promote MSMEs Local Development Some of such notable initiatives are Empowering women economically Annapurna Scheme, Stree Shakti is associated with several benefits Package for Women Entrepreneurs, to the local economy in particular Bharatiya Mahila Bank Business and the entire country in general. Loan, Dena Shakti Scheme, The first and foremost benefit is Udyogini Scheme, Cent Kalyani the generation of income and Scheme, Mahila Udyam Nidhi employment. Scheme, Mudra Yojana Scheme for Women (PMMY), Orient Mahila Any new business has the Vikas Yojana Scheme, Promotion of capability of enhancing income Self-Help Groups (SHGs), Standup and employment but it has been India Scheme and Trade-Related observed that women-owned Entrepreneurship Assistance and businesses provide more benefits Development (TREAD) Scheme, to the local economy by employing among others. local people, especially local women, which will further enhance The following sub-sections their local status and generate highlight the details of two such overall income. schemes benefitting especially to women entrepreneurs by fulfilling Hence, the strategy of developing their financial and skill-related women-led enterprises can be a requirements. good policy for local development. Moreover, empowering women Pradhan Mantri MUDRA Yojana may enhance the level of literacy (PMMY): To fund the unfunded through the enrollment of their small/micro-enterprise sector children in better schools with their (excluding corporate and farm Women-owned extra income. Many health sector) and to finance the income- businesses provide problems related to poverty can be generating activities through small more benefits to the solved through their businesses, the Government of local economy, empowerment. India has launched PMMY along which will further with the launch of Micro Units Development & Refinance Agency enhance their local Many women came out from their families to raise money for their (MUDRA) in April 2015. In this status and generate family’s standard of living. Finally, scheme, all banks have been asked overall income their participation in economic to support the income-generating 112 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

small enterprises by fulfilling their activities, this scheme has focused fund’s requirements. on women empowerment through the development of their The type of loan is divided into entrepreneurial skills. This scheme three categories based on the has included the Non-Government stage of business operation. Those Organisations (NGOs) to promote categories are: Shishu (containing entrepreneurial activities among loan amount up to M50,000), women. Kishore (containing loan amount more than M50,001 up to 5 lakh) The NGOs gather women, guide and Tarun (containing loan amount them in all project activities and above M5 lakh up to 10 lakh). help them to set-up their business. The government is providing a 30 As already mentioned, all financial per cent grant of the total project institutions are instructed to give cost to the lending institution who loans under this scheme. As per the is providing the remaining 70 per data, main beneficiary under this cent assistance. scheme are women. As per the annual report of PMMY (2018)1,in In this scheme, the government has the first three years of the scheme, included entrepreneurship M5.71 lakh crore worth of loans has development institutes to develop been sanctioned in total, which the skills of women entrepreneurs gave benefits to 12.27 crore loan and made the provision of partially accounts. contributing to the total cost of their skill development. Trade-Related Entrepreneurship Assistance and Development As per the Ministry of MSME (TREAD): Another scheme records, since the year 2004-05 to focusing particularly on women 2015-16, in total 56,471 women entrepreneurs in non-farm have been benefitted under this

1.https://www.mudra.org.in/PMMYReport Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 113

scheme with a government to open her business of spending of M1,456.48 lakh. The stationery and flask trading. She benefits are in terms of their skill is now supplying the stationery development and their items to various government engagement in entrepreneurial offices under government e- activities related to non-farm marketing service. She is doing activities. well in her business and employed four more people. In As per the Government of India the future, she wants to open press release on August 02, 2017, her manufacturing unit and non-farm activities under this want to employ 40 people. scheme include tailoring, • In another such story from the handicrafts, embroidery, toy same place, a lady has availed a making, readymade garments, loan of M4 lakh and started her candle making, agarbatti making, business of making Areca leaf paper cup and plate making, plates. She has opened one masala powder making, saree manufacturing plant and weaving, coir mat making, pickles started supplying to the making, readymade garments, exporters for overseas markets. basketry and brooms making, jute She has a plan to open the The Government of bag making, among others. second unit specifically as an export unit and want to India has taken The main idea of this scheme is to become an exporter. many initiatives to promote self-employment and • A woman from Alappuzha, promote the role of income-generating activities Kerala has taken a loan of women from the mostly from Self-Help Groups M80,000 for buying cows for her housewife to an (SHGs). cattle farming and animal entrepreneur husbandry business. She started Few Success Stories with raising cows and from the further income, she expanded from India to fish farming, goat farming Success stories in recent years are and livestock. highlighting the benefits of being • Lady from Bathinda, Punjab has an entrepreneur. Economically availed a loan of M30,000 for lower sections of the society in setting up a flour mill. She many states are the main claimed that it is very easy to beneficiaries and this is helping get many benefits such as low- them to improve their economic interest rates. Her business is and social status. Some of the going well and she is happy to success stories from the ground earn more money. are given as follows (Mudra True • Lady from Amritsar, Punjab has Stories @ mudra.org.in)2: also availed a loan of M50,000 • A lady from Madurai, Tamil for starting her beauty parlour Nadu has taken a loan under and she is now successfully the Mudra scheme of M10 lakh running her business and

2.https://www.mudra.org.in/mudra-kahaniyaan-v2/index.html 114 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

providing employment further Suggestions to to two females. Improve Women • A woman from Navi , Participation Maharashtra has availed the facility of Mudra loan of M3 lakh A focused approach is required to to start a factory of making promote their participation in copper-coated paper plates and economic activities because established her factory. She is women are very tightly woven into doing good and now happy to the mesh of the orthodox social earn profits. system. It defines their limited role in economic activities. Challenges Faced by Policies should be framed in such a Women as an way that it directly targets that Entrepreneur mesh and help women to emerge as an independent identity. All the challenges faced by women Following are a few suggestions, entrepreneurs in India that are through which participation of hindering them to become a women can be improved in successful entrepreneur has been economic activities: clubbed under a few important Develop infrastructure facilities categories: • (including road and transport • Persistence of gender inequality, infrastructure) in the nearby particularly in exercising their areas to reduce the dependency rights of women on their male • Limited access to basic services, counterparts. particularly in rural areas. The Open special help desk (at limited access is further • nearby places such as at dependent upon their male- panchayat level) particularly for counterparts women for solving their day-to- • Lack of awareness related to day queries related to their business activities (including participation in economic financial matters) activities. • Lack of focused training Promote gender equality activities • through the provision of • Sub-optimal credit delivery focused education for women, system particularly for rural women.

References Annual Report 2017-18, Ministry of Micro, Small and Medium Enterprises, Government of India, New . Annual Report 2014-15, Ministry of Micro, Small and Medium Enterprises, Government of India, New Delhi. http://dcmsme.gov.in/MSME%20ANNUAL%20REPORT%202014-15_English.pdf Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 115

Women in Informal Trade along Northeastern 9 Borders of India

Hasina Kharbhih Founder, Impulse NGO Network, Shillong

The Paper focuses, firstly, on the various problems plaguing women and their participation in the Indian economy. It utilises statistics borrowed from various studies and surveys to focus on how the economic development in India in the last three decades has not been as beneficial to women as one might think. It also focuses on the gender pay gap and the decline in female labour force participation rates.

Secondly, the paper focuses exclusively on the unorganised sector of the Indian economy and provides a bird’s eye view of both the participation by women and the challenges they face in the informal sector. Thirdly and finally, it provides a brief case study of informal trade between India and two of its neighbouring nations – Bangladesh and Myanmar.

Introduction An impressive 133 million Indians rose out of poverty between 1994 India has invested over US$3bn over and 2012, an achievement that the past 15 years to support state India and the world can be proud governments to empower poor rural of. While worthy of celebration, the women through self-help groups. success could have been even These projects have supported 45 more dramatic if a greater number million poor women access skills, of women could contribute to the markets and business development work force.2 services. Some of them have become successful entrepreneurs and In 2012, only 27 per cent of adult inspiration for others.1 Indian women had a job or were actively looking for one, compared As a result, the evidence shows that to 79 per cent of men. Almost 20 these women experience greater million women had dropped out of food security, better access to the workforce between 2005 and finance and higher income that 2012.3 benefit their families and communities. 116 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Worryingly, India’s rapid values from 2004-2005, Karnataka urbanisation has not yet has shown the highest decrease in encouraged more women to join gender gap (16 per cent) followed the labour force. Rural jobs have by Gujarat, Madhya Pradesh and been decreasing and not enough Haryana (15 per cent each).7 rural women have been able to make the transition to working in Several reasons inhibit women to urban areas. India ranks 120 gain formal employment that among 131 countries in female includes lack of skill-based labour force participation rates4 education, occupational and it’s hard to develop inclusively segregation bias and socio- and sustainably when half of the economic barriers. As a result, population is not fully participating women engage in unpaid or low in the economy. paid work or do not participate in income-generating activities. At 17 per cent of GDP,5 the economic contribution of Indian In most cases, they are only able to women is less than half the global take on employment in the average and compares informal markets that do not fall unfavourably to even all our under the scanner of government India’s rapid neighbouring countries, let alone regulations and offer exploitative urbanisation has not western economies. working conditions. Also, the yet encouraged more availability of work is subject to women to join the An analysis of Female Labour Force seasonal activities around labour force Participation (FLFP) rates for South agriculture and does not offer Asia shows varied trends across reliable year-long engagement. countries, but overall this region is the only region in the world where Informal/Unorganised it has declined in the last decade. Bhutan and Nepal have high rates Sector of female participation, while India Different authors have introduced and have the lowest levels. many different definitions for the India’s trends are marked by a unorganised sector. An ILO report steep decline since 2005 that is uses the term ‘informal sector’ to mainly driven by lower describe a “…range of economic participation rates amongst rural units in urban areas, which are 6 women. largely owned and operated by single individuals with little capital The FLFP fell to a historic low of and labour, and which produce and 23.3 per cent in 2017-2018, distribute goods and services with meaning that over three out of a view to generating income and four women over the age of 15 in employment to the persons India are neither working nor concerned.”8 seeking work. (The age of 15 is the cut-off used for global Termed as unorganised workers, comparisons by the International the participating women are Labour Organization.) Amongst the devoid of institutional states in India, when compared to representation of any kind and do Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 117

not receive sufficient attention The biggest problem with the from trade unions. In rural India, informal sector in India is that there is evidence of stratification there is no precise information based on caste and community about the total number of workers, considerations. leave apart women engaged in this sector and also their respective In 2013-2014, the National ratios in various diversified Commission for Enterprises in the occupations. Unorganised Sector (NCEUS) estimated that across the country, The Report of the National a higher per centage of women Commission on for Enterprises in (95.9 per cent) are employed as the Unorganised Sector highlights unorganised workers as against the existence and qualification of males (90.7 per cent).9 unorganised or informal workers, defined as those who do not have Social and cultural norms have also employed security, work security Several reasons been found to contribute towards and social security.11 inhibit women to this trend. To illustrate, only one- gain formal third of the respondents in This universe of informal workers the World Values Survey from India now constitutes 92 per cent of the employment that and Pakistan (2010-2014) opined total workforce. According to includes lack of that having a job was the best way another estimate, almost 90 per skill-based for a woman to be independent.10 cent of the total women work force education, is engaged in the informal sector in occupational Evidence suggests that household India.12 segregation bias and support is crucial for the sustained socio-economic participation of women in Informal wage employment is economic activities. comprised of employees of barriers informal enterprises as well as 118 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

various types of informal wage unorganised or informal workers, workers who work for formal defined as those who do not have enterprises, households, or who employment security, work security have no fixed employer. These and social security.14 include casual day labourers, domestic workers, industrial Informal wage employment is outworkers (notably home comprised of employees of workers), undeclared workers and informal enterprises as well as part-time or temporary workers various types of informal wage without secure contracts, workers’ workers who work for formal benefits or social protection. enterprises, households, or who have no fixed employer. Low-income women workers, especially in the informal sector The women workers in the informal form one of the most vulnerable sector work as piece-rate workers, groups in the Indian economy.The self-employed workers, paid reasons for their vulnerability are workers in informal enterprises, — (a) irregular work, (b) low unpaid workers in the family economic status, (c) little or no business, casual workers without bargaining power, (d) lack of fixed employers, sub-contract Given their control over earnings, (e) need to workers limited to formal vulnerable status at balance paid work with care for enterprises. children and homework, (f) little or home and work, no access to institutional credit, Home-based workers and street income generation training and information, and (g) vendors are two of the largest sub- alone may not lack of assets.13 groups of the informal workforce: improve the socio- home-based workers are numerous economic status of Unequal gender relations play a but street vendors are more visible women attached to very important role in defining of the two. Taken together they the informal sector their insecurities. Given their represent an estimated 10-25 per vulnerable status at home and cent of the non-agricultural work, income generation alone workforce in developing countries may not improve the socio- and over 5 per cent of the total economic status of women workforce in developed countries.15 attached to the informal sector. In India, out of the total women Organising women workers in the workers who are engaged in the informal economy could have informal sector, about 20 per cent beneficial impacts on their work work in the urban centres.16 and their life if such organisation combines representation along The majority of women workers in with access to resources such as the informal sector come from credit and information. those sections of the society, which need an income at any cost. Nearly The Report of the National 50 per cent of these women Commission for Enterprises in the workers are sole supporters of their Unorganised Sector highlights the families. Another startling fact is existence and qualification of that out of all women workers a Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 119

mere 7.5 per cent are availing the The informal trade figures are huge membership of authentic and men remain primarily in registered trade unions. control of the gains made in such trade.Women workers have limited Yet another fact to cause concern is opportunities.In the absence of that women have to work, unpaid, external support, women workers even outside home, for some five remain exploited. to eight hours, to help their other family members. Various studies Indo-Myanmar clearly and emphatically show another amazing fact that, the Informal Trade urban labour market discriminates Informal trade along the Indo- against women much more than Myanmar border is a huge the rural labour market. This business. It is not only difficult to discrimination results in a decline estimate the volumes of such a in the participation of women in trade but also difficult to economic activities. understand it in its totality. Estimation varies from one study to A look at the role played by another. In recent years, the Indian women entrepreneurs in border Institute of Foreign Trade, New areas of India’s Northeast who Delhi tried to estimate the annual trade with Myanmar and volume of trade in the Bangladesh shows that state and NERMyanmar border. It is NGO support for women (such as estimated to be close to4,500 crore by setting up of border Haats) can during 2015.17 empower women. 120 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

But this calculation has been estimated that the unofficial or described as simplistic and illegal trade volume between the suffering from overestimation. two countries lie around1,500 crore However, even if for argument’s a year.19 sake the estimates of IIFT are taken into consideration, the gap India’s border trade with Myanmar between the formal and informal takes place mostly through Moreh, trade seems to be enormous, in Manipur’s Chandel district.While about 44 times compared to the women are primarily the loaders formal trade. (who bring the goods from one side of the border), traders who In another exercise, the Indian control the border trade are men Institute of Entrepreneurship, who belong to the major ethnic Guwahati estimated the volume of community in Moreh.20 informal trade based on custom seizure data and the value of In 2011, Bangladesh and India set informal trade was 674.90 crore, up “Border Haats” (local markets) during 2015-16, where close to 90 along the border that stretches for per cent was routed through 4,100 kilometres.The total trade at Manipur. The rest occurred through each haat as estimated by the state Mizoram.18 governments is at $600,000 ( 4 crore or40 million) a year.21 If we take the value of trade as calculated by IIED, then estimates The visibility of women in cross- for informal trade is 10 times more border trade is challenging the than the formal trade in the status quo of traditionally male Manipur sector. In a separate dominated trade and the border estimation, also based on custom Haats have played a role in seizure data, Thus, although there fostering women’s are huge variations in the entrepreneurship.22 estimation of the value of informal trade, it is very clear that formal Route and Composition trade represents only a small portion of the total trade between of Informal Trade NER and Myanmar and the bulk of Myanmar has borders with four trading takes place through Indian north-eastern states but informal channels. informal trade mainly takes place through Manipur and partly India and Myanmar signed an through Mizoram. In other areas, agreement on border trade in strict border vigilance to curb 1994.In 2015, the RBI abolished insurgency as well as the poor barter trade that was allowed as a economic condition of the people sub set of border trade.India’s on either side of the border exports to Myanmar include resulting in little demand for primarily finished products like imported consumer goods are machinery, instrument or drugs, some of the reasons for the while Myanmar exports wood absence of informal trade. It is a products, pulses and spices.It is group functioning activity through Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 121

wide ranging networks from the (which is yet to be properly local agents at the border to those estimated) component of informal at the marketing centres. trade through these borders. On the other hand, informal exports to Although geographically they are Myanmar include manufactured divided through political items such as motorcycles, bicycles, boundaries of the nation state they agricultural implements, paints, continue to enjoy a shared ethnic baby food, medicines and fuel. boundary (with varying degrees) Chemicals used as inputs for and so what appears to be producing narcotics also comprise international trade for New Delhi is an important item of informal nothing but traditional trade for exports from the northeast.24 these people. In fact, political boundaries have severed their During 2013-14, the composition normal economic ties leading to of imports from Myanmar shortages and higher prices. comprised about 60 per cent electronics and electrical Secondly, the demarcation equipment. Textiles and footwear between the formal and informal were the second-biggest items of trade becomes thin because of imports, at over 21 per cent.25 widespread involvement of people from different walks of life, such as There were various other politicians, bureaucrats, security categories of items that were personnel, enforcement agencies imported from Myanmar but their as well as other people from civil share was much less compared to society. Thirdly, trade with these two categories. In this regard, Myanmar is more often a transit it is interesting to note that there trade of goods and commodities was a difference in the import produced in other countries, which profile of the two states of Manipur creates conditions for informal and Mizoram, through which the trade.23 informal items entered from Myanmar. Commodities and items entering from Myanmar vary widely. Among In Manipur, electronics & electrical them agricultural and forest items comprised the largest products such as agar woods, component of imports, along with pulses, groundnuts, betel-nuts, generator sets, inverters and gems, precious stones originate inverter batteries mainly to meet from Myanmar, while other goods the local requirements in the state ranging from electrical and where power shortage is a severe electronics, textiles and footwear, menace. cosmetics and toiletry as well as high value metals and other Indo-Bangladesh stationaries are from other South East Asian nations. Informal Trade There are several probable reasons Moreover, drugs, narcotics as well for the growth of informal trade as arms comprise an important between NER and Bangladesh. The 122 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

unmanned, unprotected and less districts of Assam and Tripura, than properly demarcated borders wood and timber-based products create ideal conditions, which are were the major commodities exploited for informal trade. informally exported to Bangladesh. Secondly, the linguistic and cultural homogeneity of the people In terms of the group of residing on either side of the commodities, food and live border sometimes creates animals comprised 40 per cent conditions where law enforcing from Assam, while in Tripura, agencies find it difficult to locate forest products comprised more people involved in informal trade. than 52 per cent of all the commodities exported Thirdly, the depreciation of the informally.27 Indian Rupee in 1991 resulted in a spurt to informal trade as Indian Notwithstanding the variety of goods particularly food grains estimates provided by scholars became cheaper and, therefore, about the quantum, direction and exported to Bangladesh.26 composition of informal trade is easily understood that there exists Similar was the case with fish, a huge network of informal trade where particular varieties from between Bangladesh and the NER. Andhra Pradesh were exported informally through NER to Route and Bangladesh. Composition of Various studies have identified Informal Trade sugar as the single most important Scope for informal trade in areas commodity of informal trade where the functional Land followed by printed saris along the Customs Stations (LCSs) are Karimganj sector in Assam. In other located is limited because of the Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 123

presence of vigilance and terrain, which is inhabited by enforcement authorities. But there people of similar sociocultural is a lot of scope for informal trade traits, the border haat is a marker in the adjacent areas of functional of spatial categories for the LCSs and nonfunctional LCSs due to nationstates where two nations are the operation of various syndicates separated, but for the people who on both sides of the border. find themselves separated, it is a line where they can meet their It is sometimes puzzling to find ethnic counterparts. that the items included under formal trade are also found in Here, trading activities for the informal trade. This may be nationstate will be a case for because of quota and restriction on border trade embedded in the the quantum of items to be traded. paradigm of international trade but for the people, it will be a There are thus limitations in case of traditional practice where they formal trade but as the market for share their surplus goods and such items is bigger, there is, commodities. therefore, a lot of scope for informal trade. Moreover, it is also This scenario is common among possible that the items, which are many borders around the world traded informally are those, which and is more so among the foothills have escaped the vigil of the in various places in northeast India. enforcement authorities as well. This has also been an age-old practice through various haats The number of seizures of between the hills of Meghalaya informally traded goods and and the plains of Bangladesh.29 commodities can be used as an indicative maintaining the quantum But redrawing of political of informal trade. They provide boundaries in 1947 changed the some insight regarding informal situation. Trade was restricted if not trade. stopped. However, in order to survive and meet the basic According to the Commissioner of requirements of life, people in Customs, Shillong, from 2009-10 to these areas tried to maintain barter 2014-15 there were 36,983 cases of trade in a limited way through the seizure in NER where the total value border haats of the Meghalaya- involved was3,785.35 lakh.28 The Bangladesh border. value of seizure per case works out to10,235, which indicates that there Conclusion is trade of valuable items in the region. The women workers do not have a choice to work, or not to work, due Border Haats to dire need of income. The limited opportunities available to women There can be a perceptual hiatus are mostly low paid, low status jobs related to the border between the in the informal sector; jobs which nationstate and its people. In a do not have any possibilities of 124 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

betterment, the advancement of work to earn their livelihood and efficiency or training, to enable which is socially, economically and them to enter better jobs at a later traditionally backward and least stage. privileged.

In the overall state of There is diversity in the nature of unemployment and lack of work. Some of them are opportunities, women hold a construction workers, some are secondary place to men in the race domestic servants, and some of employment. It has been others are garment workers while observed that women find it few are petty traders in miscellany difficult to enter the structured of goods. But there is little or no system of organised sector. variation in terms of job like wage discrimination, job insecurity, leave It is also found that there is no holidays and other benefits. The economic reason for paying lower society has to meet this challenge. wages or giving only a particular It is difficult but it has to be done. type of work to women workers. When they work for themselves, A ray of hope has emerged in the their wages and work is quite form of SHG, some of which are comparable with those of male working in this area as well. Work workers. has to be done at the grass root level with a proper feedback There is discrimination in wages, system in place to ensure that nature of work, availability of work, policies of equal treatment for on the basis of sex. Bargaining equal work are giving results. We power is mostly with the must remember that by ignoring employers, so exploitation is these women workers we are naturally the fate of these poor ignoring important contributors to workers. They come from that national income of the country. section of the society, which must Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 125

Endnotes

1 Janet Gale Stotsky, Sakina Shibuya, Lisa Kolovich, Suhaib Kebhaj; ‘Trends in Gender Equality and Women’s Advancement’; IMF Working Paper No. 16/21; March 28th of 2016 2 Bidisha Mondal, Jayati Ghosh, Shiney Chakraborty, Sona Mitra; ‘Women Workers in India’; Centre for Sustainable Employment Working Paper No. 2018-3; Azim Premji University; March 2018 3 Sunita Sanghi, A Srija, Shirke Shrinivas Vijay; ‘Decline in Female Labour Force Participation in India: A Re-Look into the Causes’; Vikalpa Journal; Issue 40(3); pp. 255-268; October 1st of 2015 4 Farzana Afridi, Abhiroop Mukhopadhyay, Soham Sahoo; ‘Female Labour Force Participation and Child Education in India: Evidence from the National Rural Employment Guarantee Scheme’; IZA Journal of Labour and Employment; Issue No. 5; Article No. 7; April 13th of 2016 5 Anette Dixon, Speech and Transcript of “’s Economic Growth” World Bank, March 16, 2018 6 Prakhar Mandre; ‘A Review on Role of Women in Indian Economy’; National Seminar on Accelerating Rural Growth by Empowering Women Through Innovation and Technology; organised by International Journal of Recent Trends in Engineering and Research; November 2016 7 Luis A. Andres, BasabDasgupta, George Joseph, Vinoj Abraham, Maria Correia; ‘Precarious Drop: Reassessing Patterns of Female Labour Force Participation in India’; World Bank Group Policy Research Working Paper No. 8024, April 2018 8 Paul E. Bangasser; ‘The ILO and the Informal Sector: An Institutional History’; ILO Employment Paper; 2009 9 MunaKalyani; ‘Unorganised Workers: A Core Strength of Indian Labour Force: An Analysis; International Journal of Research in Business Studies and Management; Volume No. 2; Issue No. 12; December 2015; pp 44-56 10 Manju Dayanand; ‘Women in Unorganized Sector: Problems and Issues in India’; International Journal of Applied Research; Volume No. 3; Issue No. 4; March 2017; pp. 829-832 11 S. Monisha, P.L. Rani; ‘Women Working in Unorganized Sector: A Conceptual Study’; Indian Journal of Applied Research; Volume No. 6; Issue No. 4; April 2016; pp. 97-99 12 Diptirekha Mohapatra; ‘Female Workers in the Unorganised Sector in India’; International Conference on Studies in Humanities and Social Sciences at Phuket, ; July 29th and 30th of 2015 13 Khema Sharma; ‘Role of Women in Informal Sector in India’; IOSR Journal of Humanities And Social Science; Volume No. 4; Issue No. 1; Nov-Dec 2012; pp. 29-36 14 Kamala Kanta Mohapatra; ‘Women Workers in Informal Sector in India: Understanding the Occupational Vulnerability’; International Journal of Humanities and Social Science; Volume No. 2; Issue No. 21; November 2012; pp. 197-207 15 Tripti Singh, Anvita Gupta; ‘Women Working in Informal Sector in India: A Saga of Lopsided Utilization of Human Capital’; International Proceedings of Economics Development and Research; Volume No. 4; 2011; pp. 534-538 16 Rasheeda Banu, Sampath Kumar; ‘Working Conditions and Issues of Women Workers in an Unorganized Sector’; International Journal of Trends in Scientific Research and Development; Volume No.2; Issue No. 3; March – April 2018; pp. 1369 - 1374 17 Alokesh Barua, Santosh Kumar Das; ‘Perspectives on Growth and Development on the North-East: The Look East Policy and Beyond’; Margin: The Journal of Applied Economic Research; Volume 12; Issue 4; November 1st of 2018 18 Sanjib Baruah; ‘Between South and Southeast Asia: Northeast India and the Look East Policy’; CENESEAS Papers No. 17, Centre for Northeast India, South and Southeast Asia Studies; Omeo Kumar Das Institute of Social Change and Development, Guwahati; 2017 19 Banerjee Paula and Basu Ray, Anasua (ed) “Women in Indian Borderlands“ 2011 20 Samaddar Ranabir and Sengupta Anita (ed) “Global Governance and India’s North East: Logistics, Infrastructure and Society” (2019) 126 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

21 Singla Nikita and Kathuria Sanjay “Connecting Communities through India and Bangladesh Cross Border Markets” World Bank Blog (September, 2018) 22 As above 23 Nisha Taneja, Tin Htoo Naing, Sanjana Joshi, Thiyam Bharat Singh, Samridhi Bimal, Sakshi Garg, Riya Roy, Manali Sharma; ‘Indo-Myanmar Border Trade’; Working Paper No. 378; Indian Council for Research on International Economic Relations; June 2019 24 Dr. Ram Upendra Das; ‘Enhancing India Myanmar Border Trade: Policy and Implementation Measures’; Publication by Dept. of Commerce, Ministry of Commerce and Industry, Govt. of India; 2016 25 Ibid. 18 26 Gautam Kumar Datta; ‘The Growth of Cross-Border Economic Relationships between North-East India and Bangladesh’; Department of Humanities and Social Sciences; Indian Institute of Technology, Guwahati; December 2004 27 Suparna Basu, Debabrata Datta; ‘India-Bangladesh Trade Relations: Problem of Bilateral Deficit’; Indian Economic Review; Volume No. 57; Issue No. 1; January-June 2017; pp. 111-129 28 Z.A. Rather, D. Gupta; ‘India-Bangladesh Bilateral Trade: Problems and Prospects’; International Affairs and Global Strategy; Volume No. 22; Issue No. 1; pp. 42-48 29 Abul Basher; ‘Indo-Bangla Trade: Composition, Trends and Ways Forward’; publication by Commonwealth Secretariat; April 2013 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 127 NEPAL 128 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 129

Gender Responsive Trade 10 Policies in Nepal

Biswo Poudel Associate Professor, Kathmandu University

Nepal’s recent struggle with formulating gender responsive trade policies is chronicled and the causes and consequences of this are discussed. It is argued that there have been no attempts to make trade policies gender responsive. Recent trade policy (2015), formulated after issues related to gender inequality have been widely acknowledged, also treats gender issue as a minor issue. This is unfortunate as Nepal’s export relies on SMEs, and women entrepreneurs are also concentrated on SMEs.

This Paper provides a brief review of trade policies in Nepal and analyse their gender sensitivities or lack thereof. It argues that making them women-friendly should be beneficial to the overall economy.

Introduction policymakers, this issue is yet to make any inroad in trade policy In the last two decades, Nepal’s discussions. This is unfortunate for trade policies have mainly tried to many reasons. contain the ballooning budget deficit. The discussions on trade Women now are increasingly have been dominated by the becoming part of labour force. concern regarding the impact of They are also leaving villages in a budget deficit on subjects such as large number and congregating in foreign currency reserve, cities (see Table 10.1). Out of 10.5 sustainability of the economy and million internal migrants in Nepal, industrialisation. 7.34 million (70 per cent) are women, and while 6.8 million Gender rarely appears in these people moved from rural to urban discussions. Issues faced by women areas, 4.4 million of those (or about entrepreneurs have not been given two third) were women. any serious attention while formulating these policies. While According to a recently published empowerment of women is a topic census of economic establishments generally discussed by in Nepal, 30 per cent of a total of 130 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

900 thousand establishments in women entrepreneurs and their Nepal are managed by women growth is still stifled by these whereas 16 per cent of these taboos. Policy-led equalisers are establishments are exclusively still necessary to provide a level owned by women.1 playing field for women entrepreneurs. Many of these women own SMEs and handicraft industries, which As we will see below, this is not the contribute significantly to Nepal’s case. The policies are insensitive to export. However, it appears that the gender needs, and are not they own these small firms not designed to elicit maximum necessarily by choice, but due to contribution from women economic and social circumstances. entrepreneurs. Trade, the size of which is more than 40 per cent of It is not easy for women Nepal’s GDP, is not an exception. entrepreneurs to find initial The preponderance of the policy funding, and in a recent survey, focus has been on reducing trade women entrepreneurs cited getting deficit and unfortunately, this goal customers and access to finance as has also failed miserably in the last their two major obstacles2. Social few decades, as indicated in Graph taboos still create barriers for 10.1 .

Graph 10.1: Nepal’s trade deficit

Source: World Bank3 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 131

Table 10.1: Gender-wise Migration within Nepal

Origin of migration Urban (‘000) Rural (‘000) Total(‘000)

Total 7,785 2,725 10,510

From Urban 371 84 455

From Rural 6,842 2,365 9,207

Other Country 572 276 848

Male 2,705 457 3,163

From Urban 163 20 183

From Rural 2,386 378 2,763

OC 157 60 217

Female 5,079 2,268 7,347

Urban 208 64 272

Rural 4,456 1,988 6,443

OC 416 216 632

Source: Nepal Labor Force Survey 2017/184

Counterproductive However, the trade policy in 1983 Ignorance was also independent of women’s role. Trade was considered a Take the example of the first trade masculine area and hence gender policy of 1983, it emphasised sensitivity was ignored at the time. export, with its main theme being Promoting women entrepreneurs, “export for development”. It was increasing women’s participation in largely a failure, though it indeed trade and production, increasing oriented Nepal towards external access to finance for women trade. In 1980, Nepal was extremely entrepreneurs and actively backward, and had few roads encouraging them to be a part of within the country. There were little the business community were that Nepal exported. topics largely prominent by their absence in that policy. Historically, Nepal exported raw agricultural and wildlife products or It was also clear that women’s trade rerouted the imported goods from associations (such as Female Tibet (such as Yak tail, musk, borax Women Entrepreneur’s Association and gold dust) whereas it Nepal (FWEAN) did not exist then. purchased essential clothes, salt The FWEAN was established in and sugar from India and China. 1989. Women were not even part This was the extent of the trade of focus groups consulted prior to and punctuated by occasional the drafting of the trade policy in imports from Arabian countries or 1983. in recent times, Europe, United States and Japan. 132 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

While many Nepalese women were of the World Trade Organization in micro-entrepreneurs even then, 2013 also needed to be they were considered insignificant implemented. The Bali package and incapable of decision making. included issues such as preferential rules of origin and duty-free and The strategy to look at trade as a quota-free market access for least monolithic final product without developed countries. But the stated looking at the detailed aims of trade policy (2015) did not composition of it continued as have gender-sensitive objectives in Nepal Trade Integration Strategy the official documents. (NTIS) formulated in the first two decades of 21st Century.5 The NTIS The related Industrial Policy (1993) strategies looked at the products and Industrial Enterprises Act that could be promoted to reduce (1993) fair no better. These policies the trade deficit. were important in creating business-friendly environment in The NTIS (2010) identified 12 Nepal but they were motivated by goods and seven services that an integrated goal (increasing could be competitively promoted. production) rather than Similarly, NTIS (2016), successor of disaggregated goal (increasing While many NTIS (2010), cites the need to production while ensuring that Nepalese women enhance trade negotiations, different sub-population groups were micro- improve sanitary and phyto- were benefitting from these entrepreneurs even sanitary standards to enhance policies equitably). then, they were export performance, but has no considered suggestions regarding gender- The revised Industrial Policy (2011) insignificant and based production and trade also does not have anything promotion strategies. The NTIS related to gender participation in incapable of (2016) identifies 12 sectors for the its stated goal. These policies were decision making export promotion. indifferent to the need of attracting women to the business and trade Increasing gulf between import and promoting their participation6. and export and the lackluster performance of export sector led Path Ahead to the need to further amend the trade policy in 2015. There were Nepal has adopted many many other factors behind this. The integrated strategies trying to NTIS (2010) priorities were not address its lackluster performance aligned with the existing trade in manufacturing as well as export. policy and trade deficit was They are all generally not ballooning yet again. Supply side performing well. In agricultural capacity needed to be enhanced to sector, it has devised Agriculture promote export. Other sectoral Development Strategy (ADS) policies were being drafted within (2014), in the health sector, it has the country and harmonisation Nepal Health Sector Strategy with them was necessary. (NHSS) and in the education sector it has School Sector Reform Furthermore, the Bali Package, Programme (SSRP). from ninth Ministerial Conference Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 133

The common thing is, they still marginalised communities together Gender sensitive ignore the different status of and does not provide the women in the country and treat the necessary focus on women policies should also topic as if it is not important. This entrepreneur related issues. Like identify the sectors gender-neutral approach is Enabling Environment for that have high continued in trade policies as well. Sustainable Enterprises (EESE) women participation survey showed issues faced by rate and promote However, small changes are also women in promoting their business them visible. The Policy 10.6 of Trade are likely to be completely different Policy (2015) has called for a from the issues faced by other programme to be launched to marginalised communities. The promote industries run by policies must be more nuanced, marginalised communities and better targeted to the problems women and link them to the faced by the marginalised sub- export. populations and carefully crafted.

Earlier, in 1995, Women Official documents of trade policies Entrepreneur Development Unit often mention the following ways was set up inside Cottage and ahead for improvement: better Small Industries Development infrastructure development, Board (CSIDB) after 34 years of its promotion through trade fairs, existence. The mention of women rationalisation of public spending in Trade Policy and the setting up and trade mainstreaming on women unit within CSIDB are small, sectoral policies.7 nevertheless important steps. Infrastructure development must However, more women-specific also be women-focussed. Evidence measures are needed as the current indicates that women and men measure still lumps all the have different perspectives of 134 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

urgent infrastructure.8 Women may difficult to answer. But some focus on issues related to drinking sketches can be drawn. water, men may focus on roads. Similarly, public spending projects According to FWEAN, women like Prime Minister’s Employment entrepreneurs converge on micro- Programme must be tailored enterprises such as handicraft and according to women’s need and cloth manufacturing.Data from women entrepreneurs must be Federation of Handicraft ensured equal participation and Association Nepal (FHAN) shows access to funding in these that handicraft accounts for slightly programmes. more than 5 per cent of total Nepali exports right now.11 Gender sensitive policies should also identify the sectors that have Before the Maoist insurgency, data high women participation rate and indicated that the number of promote them. These policies women owners in handicraft should also help SMEs connect industries were increasing and with the bigger firms in foreign almost half of the women countries as a supplier. Early entrepreneurs in Kathmandu valley women entrepreneurs have were in handicraft industries, consistently stated that they face according to FWEAN. Hence, any Gender sensitive disadvantages in many of these export promotion policy must policies are also areas. Trade and other related understand the difficulties faced by becoming important policies must try to address their women. difficulties. in the context of new Policymakers wrongly think that structure of family Gender sensitive policies are also incorporating a new idea in the in Nepal becoming important in the context trade policies is tantamount to of a new structure of family in introducing a new constraint and Nepal. In the survey of 2011, the should necessarily lead to less fraction of women-led households optimal solution. This is wrong. was 25.7 per cent.9 In the survey of Feminist writers have also allowed 2016, this fraction reached 31 per this debate.12 cent.10 Since almost three out of 10 households are now women led, A focus on women entrepreneurs improving their welfare by in Nepal’s trade policy context, providing them with fair however, is likely to increase overall opportunity to prosper is production of the country and important for many reasons. It will make it more competitive because: ensure equitable growth and long- (a) it introduces new groups of term stability in the country. entrepreneurs in the mainstream; and (b) by making authorities look Optimal Gender at the plights of women entrepreneurs, in particular, it Sensitive Trade Policies enhances governing capabilities In the absence of data, many and serves the important groups of questions on what are optimal entrepreneurs who are otherwise gender-sensitive trade policies are ignored by gender neutral policy. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 135

Table 10.2: Indicators and Weights for GRB in Nepal

Indicator Weight

Women Participation in Formulating Policy and Implementing It 20%

Capacity Enhancement of Women 20%

Ensuring Benefits and Control of Women in Programmes 30%

Increase in the Employment and Income of Women 20%

Qualitative Increase in the use of Time of Women and Reduction of their Workload 10%

Weights for Gender Responsive Budget (GRB)

Nepal has experience in women entrepreneurs. mainstreaming gender issues in the Nepal’s bureaucracy is past. Gender Responsive Budget becoming more gender (GRB) system, now in practice, is inclusive but this inclusiveness one of them. The GRB was pushed should also be reflected in the after Beijing Consensus (1995) and government offices that are the announced in the annual budget of most frequent point of 2005-06, though it took another six interaction between the years for the government to finally government and ordinary come up with something concrete. people, such as offices providing services related to In 2012, the Ministry of Finance procuring citizenship approved indicators for GRB and certificates, land registration Table 10.2 shows those indicators and company registration. now in force. It is clear that trade policies can take inspiration from (b) Provide preferential treatment this practice and formulate its own for women producers including gender responsive practice. exporters: There can be two different mechanisms to achieve Weights for Gender Responsive this. One, design of better Budget domestic mechanism. Women Given below are three suggestive entrepreneurs are likely to face Nepal’s bureaucracy measures to enhance gender more hurdles in finding is becoming more sensitivity of trade policies: customers (as mentioned in (a) above already) than men. Issues gender inclusive but (a) Intervene in the production like these have to be addressed this inclusiveness process: According to the EESE by better policies. should also be survey carried out by the ILO,13 There are other steps before reflected in the two major constraints faced by exporting goods abroad: government offices women entrepreneurs include women have to deal with for interaction access to finance and getting permits related to foreign between the customers. Registering a firm is exchanges, participation in also an important barrier as trade fairs abroad and hire government and many government workers tend freight industries. All these tasks ordinary people to be difficult to deal with for require women to deal with 136 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

male dominated institutions women entrepreneurs could be and firms. Identifying and helpful. This can be a promising removing hurdles associated new era of activities. with these tasks are important. Programmes such as The (c) Helping in growth: There are Women Entrepreneurs very few studies on how Opportunity Facility (run by women-led enterprises grow Goldman Sachs, IFC and others) and how their growth trajectory targets women entrepreneurs differs from that of men-led for help. Chicago-based enterprises. In Nepali context, in Women’s Business the last 30 years, talking about Development Centre (WBDC) women-owned enterprises have targets women entrepreneurs in been synonymous with talking different stages of their about small handicraft businesses. Swedish Make Trade industries. It is rare to find helps Swedish women expand female-owned firms that have internationally. The state can set successfully graduated and up and promote organisations have become big in size and like these in Nepal. revenue. This, unfortunately, Two, getting preferential implies that their growth path is treatment for women-owned difficult. firms in export market are also If there are some gender desirable. Many countries specific constraints that provide a preference for goods contribute to differential growth from LDCs. Making such path for enterprises owned by preferences a bit more nuanced different genders, they should by including preferences for be addressed and removed. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 137

In this context, it can be asserted increase in awareness regarding Nepal’s trade that trade policies in Nepal hitherto women’s rights have forced are not designed in tandem with relevant government organisations policies are largely goals (a) and (c) in mind and do to consult with women agnostic and no nothing regarding (b). entrepreneurs, this may end up efforts have been being a token gesture. made to encourage Conclusion women in trade There is still no tradition of initiatives This paper provides a brief gender- carefully identifying barriers based narrative on the women face in their path to development of trade policies in become an entrepreneur and Nepal in the last two decades. addressing them. It is likely that Nepal’s trade policies are largely they may face different sets of agnostic about the need to barriers than men and even when integrate women and subsequently they face the same set of barriers, no efforts have been made to the magnitudes of these barriers encourage women in trade are different. initiatives. This is unfortunate given the fact that most of the exports in Ideal trade policies should not only Nepal are handicraft and SME- be informed by these differentials, based products and women, too, but also address them. These issues are concentrated in the SMEs. should be addressed while formulating domestic policies and There is also a risk that while should also be made part of the emergence of women’s trade negotiations, where organisations and an overall applicable.

Endnotes 1 Nepal Economic Census (2018) National Report, Central Bureau of Statistics, Kathmandu, Nepal 2 Enabling Environment for Sustainable Enterprises Survey (2017), International Labor Organization (ILO), Kathmandu, Nepal 3 World Bank’s data on countrywise import and exports (maintained at data.worldbank.org) 4 Report on the Nepal Labor Force Survey2017-18, Central Bureau of Statistics, Kathmandu, Nepal 5 See Nepal Trade Integration Strategy (2010), Ministry of Commerce and Supplies, Government of Nepal and Nepal Trade Integration Strategy (2016), Ministry of Commerce, Government of Nepal, Kathmandu 6 See Industrial Policy (2011), Law Commission Nepal 7 See for example, “Opportunities and Challenges for the Sustainable Development Goals” Navaraj Lamsal (Trade Statistics Section, National Planning Commission) and Kamal Prasad Nepal (National Accounts Section), (2016), a presentation 138 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

8 See for example, Chattopadhyay, R., & Duflo, E. (2004). Women as policy makers: Evidence from a randomised policy experiment in India. Econometrica, 72(5), 1409-1443. Here the researchers show that women leaders tend to systematically differ in their preference of public goods from men leader. Similarly, the following link from OECD discussed at length how the use of infrastructures differs by gender (http://www.oecd.org/gov/ gender-mainstreaming/gender-equality-and-sustainable-infrastructure-7-march-2019.pd

f ). African Development Bank has a gender mainstreaming toolkit that raises and addresses this issue. (https:// www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/ Checklist%20for%20Gender%20Maintstreaming%20in%20the%20Infrastructure%20Sector.pdf

9 National Population and Housing Census (2011)

10 National Demographic and Health Survey (2016), Ministry of Health, Government of Nepal

11 Export Statistics, available at http://nepalhandicraft.org.np/?page_id=171 accessed on 2019/09/02 at 11:33AM

12 Walby gives the example of tensions in gender equality and gender mainstreaming, and indicates that at least in some cases these concepts may be at crossroad with the profit-making goals of organisations. See, Walby, S. (2005). Gender mainstreaming: Productive tensions in theory and practice. Social Politics: International Studies in Gender, State & Society, 12(3), 321-343.

13 Enabling Environment for Sustainable Enterprises (2018), International Labour Organization, Kathmandu, Nepal Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 139

Women’s Empowerment and Development Outcomes: Policy Implications for Enhancing 11 Women’s Participation in Business and Trade in Nepal

Bina Pradhan Gender Expert & Social Economist, Sanepa, Kathmandu

Women’s empowerment has been conceptualised and popularised as an effective “tool” for development. A woman is assumed to be empowered if she is endowed with material means of income/employment, education, access to resources, and in a position to influence decisions.

Women’s choice and their agency as individuals – potential to withstand gendered structures of constraint - is still not an issue in development interventions as the structural/institutional factors, such as social systems, including the economic, legal, political, cultural, that determine the attainment of the socioeconomic factors and entitlements are rarely addressed.

This Paper attempts to examine the aspect of women’s empowerment, the conventional and agency, that can affect development outcomes drawing on women’s experiences in Nepal of the factors that enable them to influence change in development outcomes. The hypothesis is that women’s ability to balance their paid and unpaid work at home (care work) and outside performed within the social/family system is expected to be more effective means of achieving development outcomes.

Introduction gender equality are taken as both a goal and a precondition for ‘Women’s empowerment’ and achieving sustainable ‘gender equality’ are widely development, economic growth recognised and accepted as critical and poverty reduction.1 factor to boost economies and achieve development outcomes (a Under UN Secretary General, High- “smart and right thing to Level Panel on Women’s Economic do”).Increasingly “women’s Empowerment was formed in 2016 economic empowerment” and 140 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

to “address the specific economic Rarely, does the national and issues that affect women and to international interventions, aimed support the implementation of the at enhancement of women’s 2030 Agenda for Sustainable empowerment, address the Development and its promise to structural and exclusionary factors ‘leave no one behind’. and the processes that result in unequal outcome even while Such initiative and commitments, providing equal distribution and aim at greater women’s economic opportunities for women. participation, their greater access to market and resources/assets and With this belief/assumption, representation in decision-making women’s increased and effective position, are made under the participation in trade has been assumption that improving emphasised for an acceleration of women’s socioeconomic economic growth resulting in characteristics will lead to their women’s economic empowerment economic empowerment and and vice versa. gender equality. However, the progress, at best, has been in This Paper is concerned with the gender inequality. perception and the underlying assumption with which ‘women’s Underlying the assumption is a empowerment’ and ‘gender ‘socioeconomic’ perspective that equality’ are understood and equal distribution of addressed in the development socioeconomic factors, will result in literature and interventions their empowerment and hence the strategies including that of trade. desired development outcome. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 141

Women’s economic empowerment conventional approach and is underpinned more by measurement variables used as materialistic concerns of indicators of empowerment in most incorporation of women in labour development intervention market, their access to income, programmes. education and resources/assets and at best reducing the work In doing so, it is expected to burden of women viewing unpaid provide a conceptual perspective of care work as a constraint in their the aspects of ‘empowerment’ – participation in business and trade. socioeconomic and agency, and how women as members of To promote women in trade and households/families use strategy to business, the main concern in the maximise individual and family development literature is the wellbeing, based on which, factors persistent gender inequality seen that best represent/reflect women’s as a distributional and facilitation exercise of agency from their problem rather than unleashing the empirical experiences of daily life existing potential (agency) of will be identified. women, and structural transformation. Using those indicators of empowerment (both conventional Initiatives to integrate gender and agency), attempt will be made dimension in trade, mostly has to examine their effects on the been in trade facilitation and development outcomes (measured logistical matters. For instance, by HDI and HPI) using statistical World Bank seeks to integrate techniques of analysis drawing from gender dimension by improving my research on Gender and Macro customs and border management, Economics using Nepal’s labour trade infrastructure, port efficiency, force survey data. This technique of transport security including analysis is expected to provide logistics and transport services, comparative significance of the regional trade corridors and transit measures affecting development and multimodal transport (Higgins, outcomes (HDI and HPI). 2012). Approach and Result, after nearly five development decades (1970s- Measures of 2019s), is persistent gender Empowerment inequality and continued Influenced by feminist thinking, discrimination against women and women’s empowerment has been girls (both social and economic) widely recognised, in the based on gender (WEF, 2018). development literature, as an important factor in affecting social, In this context, this paper attempts economic and demographic to examine from feminist changes in bringing about gender perspective of the appropriateness equality. or the effectiveness of such 142 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

For instance, the 1995 Fourth Moreover, from corporate World Conference on Women in perspective women are viewed as Beijing marked a significant turning potential reservoir for economic point for the global agenda for growth, community wellbeing and gender equality. environmental sustainability. Hence, there is an increasing The Beijing Declaration and the interest towards women Platform for Action (PFA), is empowerment through CSR considered the key global policy activities (Woetzel et al, 2015). document on gender equality. It sets strategic objectives and Conceptual actions for the advancement of women and the achievement of Understanding of gender equality in 12 critical areas Women’s of concern in all the countries.2 Empowerment From the above discussion emerge Similarly, subsequent to Beijing aspects of empowerment – Declaration and PFA, Gender socioeconomic and agency aspects. While women’s development indicator (GDI) Socioeconomic aspect comes from participation in together with the gender a conventional perspective of labour market is empowerment measure (GEM) incorporation of “empowerment” increasing, their introduced in 1995 in the Human within the existing framework of Development Report as a participation in economics where socioeconomic composite index to measure the trade has been refers to society related to gender gap in the progress of economic factors, which in turn negligible human and social development of relate to and influence each other. countries.

Empowerment, as such, is viewed, GDI is meant to take into account like all else as measures of not only the average or general socioeconomic status (SES) in the level of well-being and wealth attainment of income, educational, within a given country, but also on employment, wealth, heath, and how this wealth and well-being is political participation. Market distributed between different mechanism of the distribution of groups within society taking into these factors determine individual consideration the gender-gaps in capacity and SES in the society. life expectancy, education, and incomes. Any disparities in the attainment of these factors are seen as a GEM, on the other hand, measures distributional issue and assumes a women’s representation in linear relationship between the administrative and public positions factors and desired variable under as a proxy of their voice in decision consideration within the existing making. However, all the database social and economic structures. that has been generated on the socioeconomic indicators tells us Agency aspect, on the other hand, very little on the built-in structural comes from feminist perspective of disparities and exclusionary levers. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 143

human potential of the ability of From agency perspective the subordinate groups and individuals relationships and behavioural (women in our case) to act in a way responses of the people are not that resists the sociocultural and linear or uniform. It becomes economic forces of adversity that important to look into the expose them to the risks/ circumstance or the factors that consequences of deprivation/ makes different people behave and discrimination and harmful respond in different ways. practices (that could take a variety of forms such as health, physical/ By contrast, structures are those mental, economic and so on). factors of influence (such as social class, religion, gender, ethnicity, Such resistance to oppression or customs, etc.) that determine or adversities (which manifest in limit agents in exercise of their various forms, from open defiance independent decisions. Depending to subtle and mild opposition) may on the existing limits, individual be viewed as deviation from social action and decisions contribute and cultural norms and practices towards resulting outcomes. (Pradhan, 2003). Thus, we can conceptualise Therefore, considered from the empowerment as action taking agency aspect, it helps us to find place within the limits of structural out how or in what ways women and institutional system that allows influence decisions and make women to benefit from economic choices even under conditions of opportunities (employment), their their subordination, as well as access to resources (assets and delineate analytical and financial) and chances of measurable categories that go betterment and wellbeing beyond the conventional measures (overcoming poverty conditions). of women’s empowerment. Acts of agency is seen as deviations This implies that mere gender/sex from structural and institutional disaggregated data on education, limits (such as gender norms, income, employment/labour force values, beliefs and behaviours) participation or even women’s where women are able to make representation in public positions is their own choices in self- not adequate to capture the actualisation of the drive for the qualitative process of change (in fulfilment of their felt need. attitude, role or the deviation from the norm) in relation or behaviour.

Contextual variables Aspects of Empowerment Outcomes

Sociocultural and Economic context a. Socioeconomic • Human development (HDI) determining gender relationships, b. Agency of the human • Poverty (HPI) entitlements & access potential • Eco. growth 144 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

While socioeconomic indicators of examined within the experience of empowerment help us to measure women in the context of the progress/achievements within socioeconomic conditions or the the structural/institutional bounds, experiences of their living. conforming to the societal and economic norms of behavior, it is We will next attempt to examine much more difficult to measure the effects of women’s empowerment – agency aspect of empowerment from the consideration of which may take more in forms of socioeconomic and agency aspects qualitative changes rather than – on their livelihood (poverty quantitative, such as expression of index) and human development self-confidence or defiance, (GDI) from the lived experiences of attitudes, roles (gender roles) and Nepalese women as alluded to claims on resources. above.

The most common measurements Paid and Unpaid Work: of agency used in decision-making modules are freedom of Experiences of Women movement, and other measures This section will provide an such as control over spending, overview of the socioeconomic group affiliation or support. The develop trends in Nepal and extent to which individual agency is women’s participation/ exercised to overcome the contributions to the economy, on structural constraints maybe the basis of which we will examine enhanced by access to available the factors that enable women to resources and support that affect and influence change in individuals/groups receive. development outcomes drawing from their experiences. Our area of interest is whether and how such acts of agency might Women play a significant role in affect development outcomes. the household strategy in These are some of the research maximising its income by balancing question that needs to be inside (unpaid) and outside (paid) Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 145

work, often times under the a virtual remittance economy. This conditions of social/gender norms, is reflected in the low growth of for the maximisation of household Nepalese economy. income and welfare of its members. I have used the a national Overall, during the same period of economic database from Nepal time, average annual growth rate Labour Force Survey 2007-08 and has been 3.4 per cent with wide 2017-18 supplemented from other fluctuation between zero to six per sources of data. First, a brief cent growth indicating instability overview of the socioeconomic and poor performance of the performance of the country and economy (see Figure 11.1). the contributions of women and men to the economy. Similarly, industrial and agricultural sectors grew at a mere average Socio Economic Performance annual rate of 2.7 per cent and 2.9 and Women’s Contributions in per cent respectively over the past Nepal 12 years. Services, including tourism and hospitality, was the Nepal has gone through some only sector that was growing at a unprecedented social, political and steady pace around six per cent economic changes in the last 20-25 per annum. years with a decade of bloody internal war (1996-2006) between However, despite poor the state and Maoists that performance of the economy, devastated the economy. Faltering socioeconomic indicators of leadership resulting in stagnation development have made of the economy and failure to significant progress during the create employment/economic same period of time in Nepal. All opportunity driving the country to

Figure 11.1: Trend in Economic Growth in Nepal 146 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Figure 11.2: Male/female Participation in different sectors of the economy 2017/18

indicators of development such as participation in all the four sectors poverty, income, human of the economy measured by their development, health/nutrition and time input compared to men (see education have improved Figure 11.2).Women contribute 66 significantly. per cent (two thirds compare to men) of their time in the unpaid For instance, poverty has been care work in addition to her reduced from 42 per cent in 1996 significant contributions in the to 25.2 per cent in 2010/11. formal and informal sectors as well Households headed by females as subsistence sector of the increased to 26.6 per cent from economy almost in par with men 19.6 per cent recorded in the showing unequal burden of work second Nepal Livings Standard borne by women. survey (NLSS). This means that increasing number In the midst of poor performance of women are taking up paid jobs of the economy and massive out in formal and informal sectors as migration of young male salary/wage earners, producers, population, evidences show entrepreneurs and migrants. It is (during the same period) that estimated that 13 per cent of the women are emerging as a real absentee population is composed potential force for revitalisation of of mostly Nepalese economy and for marketing their care services, which boosting trade through their active otherwise is unpaid and not participation in different sectors of recognised as “work” within the the economy by undertaking both households. paid and unpaid work, household decisions making, and MSMEs. Recent trend also shows that with massive out migration of men, Nepal Labour Force Survey (2017- women left behind form bulk of 18), show women’s active the work force in the country. The Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 147

Figure 11.3: Women Control Over Income (in per cent)

proportion of economically active In Nepal, as elsewhere, MSMEs women in Nepal is high compared occupy a special place in to other South Asian countries. supporting the economy and is regarded as the backbone of the This is in part due to the country. It accounts for 70–80 per predominance of subsistence cent of the total value of Nepal’s agriculture and male migration industrial production, 80 per cent from the hills, but it also reflects of the employment, and 70 per efforts by the Central Bureau of cent of the value of all exports Statistics (CBS) to ensure that (FAO, 2009). women’s work is recognised by including own account work in the Female participation in micro estimation of labour force in the enterprises is close to the male country. It has been estimated that participation rate at 46 per cent. 89 per cent of women are engaged However, it is low in the small in agriculture and forestry enterprise with the participation compared to 70 per cent by men. rate being 6.4 per cent. Home based workers alone constitute A recent study3 conducted by 920,000 persons in Nepal (NLFS, SAWTEE (Ghimire, 2015) shows 2008)4 and majority of them are that with the out flow of male located in rural areas constituting migrants, women seem to be more three-quarters in rural areas in control of household income compared to only one-quarter in and expenditures, as well as other urban. 85 per cent of the total decisions in the household. The home-based workers are women.5 study shows that 67 per cent of the decisions in the households on However, while women’s control of income is made by participation in labour market as women themselves. wage/salaried and migrant workers 148 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

and their role as MSME are c) most importantly international increasing, their participation in trade based on free trade results in trade has been negligible. Lots has more competitive pricing and been researched, written and brings cheaper products home to debated, at the national, regional the consumers, this in turn and international levels to promote weakens women’s competitive women in trade for gender equality capacity to stand against cheaper and economic growth (WB). products from outside; and d) trade operates and concentrate on Some of the underlying causes of productive sector and reproductive negligible participation of women sector is completely ignored as in trade in Nepal attribute to: a) being noneconomic as women’s insensitive trade policies/ reproductive role influence and programmes to gender issues that shape their participation in the pay no/little attention to productive sector. reproductive roles/responsibilities of women which is associated with It is, therefore, important to look socio-cultural factors that shape into the reproductive sector to their roles, access to resources and make trade a level playing ground entitlements, which in turn set for all. unequal playing field between women and men; b) trade policies The above empirical evidences of do not consider employment/ Nepal reveal that household production effect which means strategy (seeking alternative looking into the sectors that sources of employment and employ women the most and the income), and women’s balance sector that is involved in the between unpaid and paid work are production of exportable products. crucial to improving human development and reduction in Their involvement is mostly at the poverty of the people at the lowest level as primary producers household levels rather than state with no or minimal use of interventions particularly in the technology and lack of means of context of three decades of poor production and productivity and growth with deep political and hence do not feature as important economic instability, and inability actors in the value chain of of the government in creating exportable products. employment opportunity as shown by the recent Nepal laboUr force For instance, in Nepal women are survey (NLFS, 2017-18).6 the primary producers of majority of the priority export products Nepal has experienced impressive identified in the Nepal Trade improvement in socioeconomic Integration Strategy (NTIS) 2010 and human development indicators and 2016 but they lack the despite the poor performance of knowhow and the necessary the economy in the last 20 – 25 competence in going to the next years. level of processing for exportation; Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 149

Policy Implications for At the policy level, there is a Promotion of Women need: a) for better in Trade understanding of the gender issues in trade and Based on the empirical findings development, the differential derived from the analysis of constraints and impact of trade national economic data of Nepal, policies on women and men; b) among others, three important to create better opportunities gender dimensions of trade stands for women; c) to integrate out that has an important policy/ women into more programme implications for technologically advanced and integrating and advancing women productive sectors of the in trade: economy; and c) to facilitate women’s empowerment 1. First, pre-existing gender through access to resources, imbalance at different levels information/technology, (macro, meso and micro) and increased capacity building and unequal playing field levels logistical facilities. between women and men that determine their capability 2. Second, it is most important to functioning and extent of their consider employment/ participation in trade need to production effect i.e. to look be addressed in any trade into sectors where women policy/programmes. Until concentrate the most, as well as recently, trade policy/ create opportunities for women programmes were erroneously to enter into sectors that have assumed to be gender neutral. high export potential as trade 150 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

can augment or reduce As experiences show women employment and income balance their unpaid care work to opportunities for women participate in the paid work in depending on whether the trade and business sectors. This is sectors where women work, where women strategise to expand or contract as a result of maximise benefits from paid and trade liberalisation and import unpaid work. Substitution for their competition. care responsibility is not easily found although there has been 3. In Nepal NTIS 2016 identified impelling calls for recognition, nine products as having reduction and redistribution of “priority export potentials” such unpaid work (Elson 2008; Klugman as large cardamom, ginger, tea, and Tyson 2016). Medicinal and Aromatic Plants (MAP), all fabrics, textile, yarn Unpaid care work is still seen as a and rope, leather, footwear, hindrance to women’s participation pashmina, and knotted carpets. in paid work and structurally it is a Women are the primary mechanism that reinforces gender producers of these products. inequality. In order to achieve gender equality and empower all 4. Third, reproductive sector women and girls it is necessary to emerges as a crucial dimension recognise and value unpaid care to be considered in trade for and domestic work, adopt women’s effective participation. supportive social and labour So far women’s reproductive policies that facilitate women to role in the care economy has balance between their paid and not been considered in unpaid work, and provision for planning for trade expansion as social protection policies and unpaid care is not recognised compensation for child and health and valued as “economic” work. care must be made.

References Cornwall, Andrea, (2015), Beyond “Empowerment Lite”: Women’s Empowerment, Neoliberal Development and Global Justice, presented at Conference: Gender and neoliberalism, accessed online: https://www.researchgate.net/publication/ 291476730_Beyond_Empowerment_Lite_Women’s_Empowerment_Neoliberal_Development_and_Global_Justice CBS/GON, 2019, Report on the Nepal abour Force Survey, 2017/18, Central Bureau of Statistics/ National Planning Commission (CBS/NPC), Kathmandu. Elson, D., 2008, “The Three R’s of Unpaid Work: Recognition, Reduction and Redistribution”, presented at the Expert Group Meeting on Unpaid Work, Economic Development and Human Well-Being, United Nations Development Programme, New York Ghosh, Anweshaa, Anjam Singh, ShraddhaChigateri, Deepta Chopra, and Catherine Müller A, 2017, “Trapeze Act: Balancing Unpaid Care Work and Paid Work by Women in Nepal”, IDS Working Paper 500, Institute of Development Studies / The Institute of Social Studies Trust, (ISST) 2017 ISSN: 2040- 0209 ISBN: 978-1-78118-401 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 151

Higgins, Kate, 2012, “Gender Dimensions of Trade Facilitation and Logistics: A Guidance Note”. Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/16973 License: CC BY3.0 IGO Kabeer, Naila, 2013, “Paid Work, Women’s Empowerment and Inclusive Growth: Transforming the Structures of Constraint, UN Women”. United States. ISBN: 978-1-936291-73-1 Klasen, Stephan, & Dana Schüler, 2009, “Reforming the Gender-Related Development Index (GDI) and the Gender Empowerment Measure (GEM): Some Specific Proposals,” Ibero America Institute for Econ. Research (IAI) Discussion Papers 186, Ibero-America Institute for Economic Research. Klugman, Jeni and Tyson, Laura, 2016, Leave No One Behind: A Call to Action for Gender Equality and Women’s Economic Empowerment, Report of the UN SecretaryGeneral’s High-Level Panel on Women’s Economic Empowerment Porter Elisabeth,2013, “Rethinking Women’s Empowerment”, Journal of Peacebuilding& Development, 18 Jul 2013 published on line: http://www.tandfonline.com/loi/rjpd20 Pradhan, Bina, 2010, “Towards Inclusive Macroeconomic Framework”, presented at Transnational Critiques of Gender Mainstreaming, (research carried out under Beatrice Bain Research Group), UC Berkley Pradhan, B., 2003, “Measuring Empowerment: A methodological Approach” in Development, Society for International Development (SID), 1011-6370 (200306) 46:2; 51–57; 03350, Sage Publication Prugl, Elizabeth, 2015, “Neoliberalising ”, New Political Economy, 20:4, 614-631, DOI: 10.1080/ 13563467.2014.95161, online link: https://doi.org/10.1080/13563467.2014.951614 Stiglitz, Joseph &AmartyaSen& Jean-Paul Fitoussi, 2009, “The measurement of economic performance and social progress revisited: Reflections and Overview,” Sciences Po publications 2009-33, Sciences Po. Ghimire, Hiramani, 2015, “Promoting Women’s Micro, Small and Medium Enterprises(WMSMEs) in Nepal”, SAWTEE, http://www.sawtee.org/presentations/12-Feb-2015.pdf SAWTEE, 2015, South Asian Country study on products with regional trade potential and associated non-tariff barriers with special focus on Women in Micro, Small and Medium Enterprises(WMSMEs)- A case of Nepal, Kathmandu. UNDP, 1995. “HDR 1995 - Gender and Human Development,” Human Development Report Office (HDRO), United Nations Development Programme (UNDP) WEF, 2018, The Global Gender Gap Report 2018, World Economic Forum, Cologny/Geneva Woetzel, Johanathan et al, 2015, How advancing women’s equality can add $12 trillion to global growth, Report, McKinsey Global Institute 152 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

Endnotes

1 Department of Foreign Affairs, Trade and Development, (DFATD) Canada Documents, 2011: https:// info.publicintelligence.net/CanadaWTF.pdf 2 The 1995 Beijing Platform for Action identified 12 key areas where urgent action was needed to ensure greater equality and opportunities for women and men, girls and boys. It also laid out concrete ways for countries to bring about change. They are: 1. Women and poverty, 2. Education and training of women, 3. Women and health, 4. , 5. Women and armed conflict, 6. Women and the economy, 7. Women in power and decision-making, 8. Human rights of women, 9. Women and the media, 10. Institutional mechanisms, 11.Women and the environment, 12. The girl child, 3 http://sawtee.org/Research_Reports/R2015-02.pdf 4 https://www.ilo.org/wcmsp5/groups/public/—asia/—ro-bangkok/—ilo-kathmandu/documents/publication/ wcms_118294.pdf 5 https://www.empowerwomen.org/en/community/stories/2015/6/nepali-home-based-workerts-association- helps-women-rebuild 6 Unemployment Rate in Nepal decreased to 3.20 per cent in 2017 from 3.40 per cent in 2016.The unemployment rate for youth aged 15-29 is all time high: 19.2 per cent compared to 2.7 per cent for the whole population: https://tradingeconomics.com/nepal/unemployment-rate Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 153

What Drives Nepalese Women Venturing into Informal 12 Entrepreneurial Sector?

Kamala Gurung Gender and Natural Resource Management Specialist, International Centre for Integrated Mountain Development (ICIMOD)

Nepalese women are increasingly initiating their businesses, yet a large number of women entrepreneurs are involved in informal entrepreneurial either micro or small-scales. This Paper assesses the status and challenges faced by women entrepreneurs in venturing their businesses into the informal sector. Land rights are the foremost push factor for women that influence women’s involvement in entrepreneurial activities.

On the other hand, low requirement of financial capital and basic knowledge and skills are the main pull factors that attract them to the informal entrepreneurial sector. Financial independence is a factor which is identified as a motivational factor to start a business in the informal sector.

Awareness programme on the existing government initiation of land rights and continuum bottom-up actions for women economic empowerment through legal literacy programmes are urgently needed for women entrepreneurs along with the local government agencies.

Introduction and The Global Gender Index provides a Objective comprehensive overview of gender-parity places of 153 South World Economic Forum published Asian countries as Bangladesh 50, the Global Gender Gap Report that Nepal 101, Sri Lanka 102, India 112, states 153 countries’ status Maldives 123, Bhutan 131 and regarding the closing of gender- Pakistan 151 (WEF, 2019). based gaps in four key thematic areas. They are: i) economic The global index indicates that the participation and opportunity, ii) South Asian countries have educations attainment, iii) health significantly progressed in and survival, and iv) political educational attainment and health empowerment (WEF, 2019). and survival, however additional 154 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

attention is required on economic The ILO has classifiedthe informal participation and political entrepreneurial activities broadly empowerment. Among the above into three groups: i) owner- mentioned four thematic areas, employers of micro-enterprises economic participation and which employ a few paid workers, opportunity were identified as with or without experts, ii) own- important agenda for achieving account workers, who own and women’s empowerment and operate one-person business and equality. work alone or with the help of unpaid workers, generally family Women’s entrepreneurship members and experts; and iii) promotion is one of the dependent workers, paid or unpaid, The global index mechanisms of economic including wage-workers in micro- indicates that the empowerment and opportunity. enterprises, unpaid family workers, Many developing countries have apprentices, contract labour, home- South Asian recognised entrepreneurship as an workers and paid domestic workers countries have important approach and drawn a (Cited in World Bank, not dated). significantly lot of attention as an “untapped progressed in source” of economic growth. The informal ventures tend to be educational younger, smaller and created with attainment and Women’s entrepreneurship few resources. In the context of health and survival contributes to their social and Nepal, the selection of enterprise economic empowerment, which types are still influenced and generates social values and dominated by the socially benefits to family wellbeing and prescribed roles. For instance, health and also job creation. women usually operate their business from their homes, with A number of scholars claimed that low earnings and saturated sectors women entrepreneurs’ contribution (e.g., boutiques, beauty parlours tends to be higher than that and agriculture-based enterprises) resulting from entrepreneurial and lower inclination to activities of men (Gurung et. a., formalisations. Therefore, women 2018; Tambunan, 2009; Daymard, have a low registration rate (5.4%) 2015; UNESCAP, 2005). compared to men-owned enterprises (47.1%) in Nepal (ILO, In spite of women being actively 2005). involved in the entrepreneurial activities, a large number of women Given the fact that the majority of entrepreneurs are venturing into women entrepreneurs in Nepal are informal1 entrepreneurial sector in involved in informal the South Asian region. entrepreneurial ventures, the

1 The informal sector covers two types of activities, which are; i) individual or families are engaged in the labour market activities as a survival strategy, where other alternative earning opportunities are scarce: For instance, casual jobs, unpaid jobs and, ii) unofficial business/enterprises activiites that desire to escape government or insitutional regulations (e.g., no registration of the company). This paper focuses on the women’s involvement in the business/enterprises. http://www.gdrc.org/informal/1- is_concept.html (Access in April 13, 2020). Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 155

discussion is why women tend to and influence women be attracted more to the informal entrepreneurs into informal sector, though the sector offers entrepreneurial ventures, which are fewer incentives than the formal divided into internal (push and sector, without any other pull) and external factors (Figure advantages (e.g., access to a loan 12.1). from the formal banking system, better network connectivity). The entrepreneurship motivation approach is a common tool to use Therefore, the aim of this paper is for research on entrepreneurial to highlight the various motivation (Segal et al., 2009). motivational factors that underline Figure 12.1 further illustrates the women entrepreneurs venturing driving factors that attracted into the informal sector. This paper women entrepreneurs into the is an exploratory-type study based informal entrepreneurial ventures. on the existing literature on women entrepreneurship. Why Women are more Based on the literature, the paper is Present in the Informal conceptualised on the factors that Entrepreneurial Sector? motivate women entrepreneurs Figure 12.1 presents the overall into informal ventures. There are a discussion on Nepalese women number of entrepreneurial entrepreneurs who are more into motivational factors that determine the informal entrepreneurial sector,

Figure 12.1: Motivational Approach: Women Entrepreneurs Involved into Informal Entrepreneurial Sector

Resource constraints (financial, network) Only basic knowledge and skills requirement Availability of skilled labour and infrastructures (e.g., electricity, transportation) Source: Author prepared based on the literature review, 2020 156 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

based on the existing literature First, a case presented by Bushell review. Importantly, the paper is (2008) showed that, in spite of the from the perspective of reform of inheritance law that entrepreneurial motivating enabled Nepalese women to own factors that are classified into land, a woman who wanted to internal and external factors establish a business and approached which are described below. a bank to take a loan was refused. The bank agent agreed to give a Internal Factors loan only if her husband came to The internal factors basically sign the necessary documents. relate to the needs and desires of an individual person. These Second, women are typically factors are classified into “push”, involved in home-based businesses also known as a compulsion, and and taking care of the family, along “pull”, known as choice factors. with the household chores, and generally do not earn sufficient Push factors: In this paper, the income to cover the typical overhead push factor is focused on less administration cost and also the attraction to the formal lengthy bureaucracy process that is entrepreneurial sector. A number required for a formal business. of literatures stated that the foremost set of push factors is Chen (2002) stated, if the inherited societal norms, which are bureaucracy administration process unfavourable to Nepalese women is shortened and made easier, then entrepreneurs to set up business the rate of entry of women’s in formal ventures (Gurung at al., ventures into the formal economy 2018; Bushell, 2008; Chen, 2005). might increase. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 157

Third, societal norms determine the context of informal entrepreneurial mobility of women and with whom activities, government initiatives on they communicate. In this situation, women’s land rights are one of the women entrepreneurs are at a key factors. Other external factors, disadvantage because interaction such as the availability of skilled within social networks is crucial for labour, accessibility to customers, the success of entrepreneurial availability of infrastructures such ventures. Social networks enable as transportation and electricity, entrepreneurs to build up their are also the key services that are market and expand their required to establish informal businesses and open new doors for entrepreneurial ventures. gaining access to funding. Enforcing Women’s Pull factors: From the perspective of pull factors, this paper tries to Land Rights: Status and identify the reasons why Nepalese Challenges women entrepreneurs tend to Land is an essential commodity in involve more in the informal the South Asian region, including entrepreneurial sector. It is in Nepal, which is associated with interesting to note that “low social, economic and political requirement of financial capital”is status and prosperity. Land is an The Government of one of the main pull factors that important source of power in Nepal has taken are responsible for business in the communities and within the various initiatives informal sector. households. for women’s Secondly, the applicability of basic empowerment Women’s right to land not only knowledge and skills also “pull” empowers them to make decisions women entrepreneurs into the on land use, but also allows them informal sector. Also, this sector greater bargaining power and does not require higher education economic opportunities, including or expertise. It is interesting that access to capital, credit and market ‘financial independence’ is a opportunities (IFPRI, 2005). motivational factor that attracts women entrepreneurs to the However, the right to land is informal entrepreneurial activities. regulated either by the formal legal system or through customary law The interpretation of independence (SIDA, 2015). Women’s property is to be active and financially rights vary across the globe that is independent. In the process, they significantly influenced by the earn income and also employ other government and legal frameworks. women of their neighbourhood. A number of studies indicate that women’s inheritance rights have External Factors (Enabling less equal means, less access to, Environment) and control over, property. External factors are also equally important as favourable conditions Having said this, the formal legal for establishing business. In the systems in many countries, 158 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

including Nepal, have constitutions property and widow rights on or land laws that grant gender property (FAO, not dated). equality in access to land and, at the same time, laws for marriage, In addition to this, in the Eleventh divorce and inheritance that Periodic Three Year Plan (2007-10), contradict these laws by the Government of Nepal discriminating against women and introduced the unique scheme in daughters. the form of tax exemption while registering land in women’s name The Government of Nepal (GON) and under joint ownership of has taken various initiatives for husband and wife. women’s empowerment by favouring women’s right to The main objective of such a property that includes the abolition provision was to increase women’s of fifty-six discriminatory laws access to land. Moreover, the based on sex and creating new Financial Act 2072 (2015-16) has legislations for women (Upreti, provided various measures for land 2011). registration in the name of women.

One of the main steps was taken For example, the Act provides 25 with the 11th Amendment of the per cent tax exemption for Country Code (Muluki Ain) that registration in a woman’s name. secures women’s land and property Secondly, there is a provision of 35 rights such as equal inheritance per cent tax exemption for land right, equal rights on husband’s registration in the name of a single Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 159

woman if the husband has died. property, there are limitations The exemption is even increased to whereby women have not been able 50 per cent for the same in some to be fully aware of these rights. For enlisted remote mountainous example, married daughters are still districts as well as remote not considered as coparceners for mountain agro-ecological regions. their parental property. Despite these encouraging gender and Moreover, 100 per cent tax socially-inclusive land reforms exemption is provided to the policies and laws introduced by the landless, freed bonded labour governments of Nepal, women are (MuktaKamaiyaand MuktaHaliya)if still insecure about land rights and the land is purchased through a remain in a dire situation due to lack bank loan. Likewise, only 0.5 per of proper implementation cent of the total tax will be charged mechanisms. if the ownership is transferred in the name of a daughter or a Conclusion and Way granddaughter. These provisions have been purposefully designed Forward The objective of to encourage women to register Entrepreneurship can be an effective gender and socially- land in their name (IOM, 2016). socio-economic empowerment tool inclusive land to bring women to the forefront. reforms is to The Financial Act 2072 elaborated However, a large number of women minimise gender further on the procedure for entrepreneurs are represented in inequalities and women to have joint ownership of the informal entrepreneurial land with their husbands. If the aims at women’s activities across the South Asian existing land registered in the region, including Nepal. This paper social and economic name of either husband or wife is deals with various motivational empowerment transferred in the name of both the factors, internal (push and pull spouses, only NPR 100 factors) and external, which (approximately USD 0.95) will be determine women’s involvement in charged as registration fee. the informal entrepreneurial activities. This procedure works in favour of joint land ownership and Figure 1 clearly shows the societal consequently provides equal norms, specifically the constraints ownership rights to both husband restricting women’s access to the and wife over such land, avoids resources such as land and property male’s exclusive rights over land rights through inheritance, which and facilitates joint decision- ultimately enable them to access making in relation to the land. finance and credit to invest to Thus, the initiation of joint land expand their businesses. ownership certificates tends to promote women’s equal access to Over the past decades, gender- land rights. related land reforms have swept across the South Asian region, Although legal provisions have including Nepal. In the case of provided rights for women in Nepal, the Government of Nepal has Nepal in relation to land and incorporated gender and socially- 160 Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal

still insecure about land rights and remain in a dire situation. The reasons are:

Firstly, lack of proper implementation mechanisms for land reforms policies and laws at the local administration levels. At the local government level, the implementation and enforcement often do not follow or they are not aware of the new laws or other changes. The reasons may be the lack of awareness of the new legal land reforms at the local government level and social practices in customary laws which still favour men.

Secondly, high administration costs associated with formalisation or inclusive approaches to land registration process, lack of administration and legal provisions transparency and a higher risk of protecting women’s land rights. incurring informal costs (e.g., bribes). Such scenarios occur The gender and socially-inclusive across the South Asian region land reforms ultimate objective is resulting in formal and informal to minimise gender inequalities costs associated with land and aims at women’s social and formalisation. economic empowerment through making land and property The lesson moving forward is that accessible to women. effective steps are urgently needed such as sensitisation programmes Despite these encouraging gender about existing government laws and socially-inclusive land reforms and enforcement of the women’s policies and laws introduced by the land rights to benefit women government of Nepal, women are entrepreneurs. Gender Dimensions of Trade Facilitation: Evidence from Bangladesh, Bhutan, India, Nepal 161

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