Impacts of the Global Crisis on Women in Developing Asia by Jayati Ghosh 2010 Edition About the Author

Impacts of the global crisis on women in developing Asia By Jayati Ghosh 2010 Edition About the Author:

Jayati Ghosh is a Professor at Jawaharlal Nehru University in New Delhi. She is one of the founders of the Economic Research Foundation in New Delhi, a non-profit trust devoted to progressive economic research and has been a consultant and researcher for many government and non- government organizations, nationally and internationally.

Editor: Reihana Mohideen Copyeditor: Rosanna Barbero, Alejandra Scampini and Cindy Clark Proofreaders: Michele Hasson, Karen Murray Designer: Diego García Pedrouzo Final proofreader: Ana Inés Abelenda Production: Lynn O’Rourke

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Impacts of the global crisis on women in developing Asia By Jayati Ghosh 2010 Edition

Introduction

Among policy-makers in Asia, governments, even in countries there has been a tendency to see that do not really need them, are the global recession of 2008– making things worse. At the most 2009 as a mere blip in a process fundamental level, the three basic of continuing and dynamic eco- imbalances that caused the most nomic growth. Asian developing recent crisis of international countries were the first to come capitalism have still not been 3 out of the crisis; indeed, many of resolved: the imbalance between them experienced only a decelera- finance and the real economy; tion of still positive growth of out- the macroeconomic imbalances put rather than negative growth. between major players in the Asian trends have preceded a international economy; and the global recovery in which most ecological imbalance that will regions of the world have been necessarily become a constraint declared as coming out of reces- on future growth, not only because sion, as income has recovered, of climate change but because of especially from the second quar- other environmental problems and ter of 2009. Much of this is related the demand for energy. to the apparently uncoordinated, but nonetheless synchronized, Without resolution of these recovery packages that were in- problems, sustained growth is troduced in the wake of the cri- no longer possible in the global sis. Across the world, including in economy, and the Asian region Asia, governments responded not cannot hope to be immune from only with huge bailouts of trou- this negative impact. Further, bled financial institutions, but also even the resolution of such prob- with large fiscal stimulus packag- lems is likely to be associated es that were effective in staving with severe and potentially pro- off depression. tracted crises, in different areas and countries. These problems Nevertheless, it is increasingly are made worse by the evidence clear that the recovery remains that output recovery has not been fragile and downside risks look matched by any improvement in large. Sovereign debt issues are employment, wages or liveli- currently at the centre of concern hoods of self-employed workers, for financial markets, and austerity and that other negative effects packages being followed by of the crisis have persisted into the incipient and tentative recov- forms due to intensified social ery. In any case, the impact of the tensions. The effects of the crisis financial crisis on material and also tend to be disproportionately social conditions in developing distributed among the population, Asia has already been far more with certain vulnerable groups, severe than is suggested by ag- including women and girls, much gregate output figures. Due to the worse affected than more secure high dependence of most Asian or privileged sections. It is a sad countries, the volatility of global but constantly repeated fact of exports has direct and indirect economic life that financial crises effects on employment. A large tend to deliver the most harm to part of the population in the re- those who had usually gained the gion is still absolutely poor. The least from the preceding boom, greater proportion of the work by reducing wages and chances force in all but a few countries of employment, destroying live- is in informal activities, self-em- lihoods and constraining public ployment and vulnerable employ- provision of essential goods and ment, a proportion that is over- services. whelming in the case of women workers. Agriculture has been Gender discrimination tends to in difficulty in most parts of the be intertwined with other forms region, yet continues to employ a of social and economic dispar- large share of workers, especial- ity, such that region, location, ly women workers. The agrarian community, social category and crisis has also translated into occupation also typically deter- and been associated with a food mine the extent of deprivation of crisis, rising prices and declin- women and girls. Even so, there ing food self-sufficiency in most are critical differences in the im- 4 countries. pact of such crises on men and women, determined largely by All of these processes have ad- the greater significance of wom- verse effects on people within en in social reproduction and the countries and particularly on “care economy”, as well as their workers, some of which are: greater involvement in more vul- decreased employment; decline nerable forms of paid work. Now in real wages and incomes from that the region has experienced self-employment; changes in more than two years of crisis, it patterns of migration, with re- is useful to consider the impact duced employment opportunities on women in terms of their var- in several destination areas; the ied but overlapping roles as paid impact of higher food prices on workers, self-employed work- food consumption; reduced ac- ers, unpaid workers, members cess to health care; reduced ac- of households, and citizens with cess to education; and increased rights and individuals with needs, incidence of violence in various wants and aspirations. Impacts of the global crisis on women in developing Asia - Jayati Ghosh

Women workers in paid employment

Women workers continue to be gender relations within and out- sample of sex workers, 58 percent more adversely affected than their side the household. In Cambo- entered into sex work in the wake male counterparts in the manu- dia, for example, 70,000 garment of the financial crisis and 19 percent facturing industry, through the workers, mostly women, have lost were former garment sector work- loss of employment and falling their jobs since the crisis began. A ers. Undocumented migrant work- wages. To begin with, the indus- recent study by the United Nations ers are more vulnerable to many tries in which they predominate Inter-Agency Project on Human problems and challenges, including (e.g. textiles and garments) were Trafficking, quoted in Sothath and getting infected with HIV, because the most affected by the crisis Sophal 2010, found that among a their rights are not protected. and even as output has recovered to some extent, employment has not returned to its earlier levels. Coping with job loss entertainer with a base salary The pressure on employers to in Cambodia of US$40. She now makes more compete in an increasingly hos- money on tips from some gener- tile environment leads to efforts ous customers. She has not told to reduce labour costs by driving Single, 24-year-old Lath Srey- her family about the change in down wages and forcing remain- aun from Prey Veng Province her job, because she fears that ing workers to work for longer had been unemployed for three they would not allow her to work hours, often for less pay. months prior to the survey. She in such a place, but the need to had been working as a gar- keep her brothers at school has Further, women are less union- ment worker for six years, mak- forced her to work there. […] ized and therefore easier to dis- ing US$80 per month. Of this, Sreyaun has informed her par- miss, and job segregation as- US$30 was allocated to support ents and other relatives that she signs them to lower-paying and her family of five and various is still employed, but at another more “flexible” labour activities, personal expenses. factory. Sreyaun’s greatest fear unlike the more diversified and After tirelessly looking for a job is that if her conservative com- 5 relatively more secure occupa- at other factories, but with no munity finds out that she works tions of male workers. It is im- luck, Sreyaun decided to look at a Karaoke club, her “virtue” or portant to note that loss in such for a job at a Karaoke club. She reputation will be compromised. employment affects not only was offered a job as a Karaoke (Sotath and Sophal, 2010, p. 12.) household incomes, but also

Self-employed women

As opportunities for paid employ- of her daughter, embroiders and in the present crisis, the Government ment dwindle, women workers have even makes garments on occasion. is not doing anything to support Chi- turned to home-based subcontract- Despite being a very experienced kan craft workers. ing activities, or work in very small worker, Kammu has only a non- units, often on a piece rate basis and permanent structure for a house, She is getting old and it is now usually very poorly paid and without with a leaky roof. She has a handi- physically impossible for her to non-wage benefits. capped son, for whom she is finds work for more than five to six it hard to get any medical attention. hours a day, especially with fine Problems of traditional craft and intricate embroidery, thus her workers in India Kammu believes that the wages wages have fallen further. Her earned in Chikan craft work are not health has been adversely affect- Chikan embroidery is a very fine, commensurate with the effort and ed, her eyesight is poor and she highly skilled and specialized tra- labour involved. Even the very fin- suffers from constant headaches, ditional craft, with both domestic est and most difficult craftsmanship backaches and neck pains. Her and export demand. Kammu, based fetched a maximum of Rs. 50 per day fingers are sore from doing Chi- in Lucknow, India, and her late (just above $1), while ordinary work kan work. The future offers little husband both worked at this craft fetches only Rs. 8 to 20 per day. The hope. (Adapted from “Global Eco- for several decades, largely on or- recession has made things worse, as nomic Crisis: Impact on the Poor in ders. She still buys her own mate- Kammu says she earns much less India”, UNDP New Delhi, November rial, does the cutting with the help than before. She complains that even 2009, p. 26) Self-employed women in a time of crisis Waste recycler in India other waste recyclers who live nearby discussed the same Kim Latt, is a villager in Ponley problem with me. To make the Choeung village, Ponley com- “My name is Ratanben Jaydev situation worse, the scrap shop mune, Angkor Borey District, Bhai Parmar. I live in Raipur owner refused to purchase the Takeo Province. In addition to Gomtipur (a slum of Ahmed- waste I collected the next time her farming, she earns income abad, India). I am 50 years old. I I went to his shop. He com- from producing hol (a traditional have been collecting waste for plained that too much waste hand-woven silk fabric used for the last 30 years. I have three was piling up in his shop with making dresses). In 2008, she sons and two daughters. I lost a shrinking market for it. Other had good sales of hol at a higher my husband when I was 25. waste recyclers faced simi- price, US$75 per kben (a unit of Since then I have been earn- lar problems. Then came the hol, which measures 4 x 1 m). With ing a living through collecting shocking news that several high demand, she could produce 2 waste and taking care of the scrap shops in neighbouring kbens per month. However, she needs of my family. My sons areas were shutting down. The now produces about 1 kben per work in small factories on a decreasing prices were not the month, but is not sure it will be temporary basis as and when fault of the shop owner. I was sold, due to reduced demand. She they are called. told that the international mar- has to go and sell it at the market for scrap has shrunk. ket by herself, while last year the My day begins at five. Once I trader came to buy it at her house. complete my household chores, This has affected me severely. A kben of hol is about US$60 this I start work at 6 a.m. and col- My sons have also lost their year. She complains that despite lect waste till noon. In the af- jobs when the small factories the low demand for hol and the ternoon I sort the waste into were forced to shut down due lower sale price, the cost of silk bundles. I go on a second round to the financial crisis. We have remains high, with only a slight at 4 p.m. and return at 8 p.m. no money or food in the house. decrease. With the low demand depending on the amount of We cannot even afford vegeta- 6 and price of hol this year, she is waste I collect. After a two-day bles. I cannot pay for my grand- earning very little for her fam- cycle of waste collection, I sell children’s education. Now my ily. She has sought other income the waste bundles to a scrap grandchildren have also joined sources, but no job opportunities shop on the third day. I collect me in picking waste so that we were available in her community. paper, plastic, iron dust, car- can supplement my income. (Sotath and Sophal, 2010, p. 13) ton, broken toys, plastic bags, hair, coloured and white paper. I have heard of other neighbours There has been decline in ac- I usually make about Rs. 50 who are going through harder cess to credit for self-employed (about US$1) for the total waste times. Pashiben, staying next women. Micro-credit institutions collected. to me, sold her body for clinical are largely funded by commer- research. We all know that it is cial banks and through aid. Com- Suddenly, after Diwali last Octo- harmful; but it pays better. My mercial banks in most developing ber, the shop owner started pay- question to you is where has countries, faced with a global li- ing me less for my scrap. Though all the money gone? Why do the quidity crisis, have significantly I quarreled with the owner, I had poor have to suffer? I hear on cut down on lending across the no choice but to accept the price the news that the government board. Also, there is early evi- he offered. I could not under- is declaring schemes to revive dence from South Asia that the stand the problem. big industrial houses; but what impacts are already felt on micro- about us? Are they thinking finance programmes (Chandran, One day, as I was sitting out- about us? “ (qtd. in UNDP India 2008; Littlefield, 2008). side my hut in the evening, 2009b p. 1-2)

Farmers across the region have port. Women farmers have been benefits such as access to insti- been hit by rising input costs, worse off because the lack of tutional credit, extension servic- volatile crop prices and declines land titles and other recognition es, subsidized inputs and crisis in public and institutional sup- have tended to deprive them of relief programmes. Impacts of the global crisis on women in developing Asia - Jayati Ghosh

Migrant workers

The crisis has had less of a direct ties are less affected by the busi- opportunities especially at the impact on women migrant work- ness cycle and more by demo- lower end of the skill spectrum. ers than men, but this does not graphic tendencies, institutional Also, migrant workers, espe- mean there have been no adverse arrangements, and the extent to cially more vulnerable women, effects. In Asia, migration, espe- which women work outside the have been targeted, when local cially cross-border migration, is home in the host country. As a residents think that they are tak- highly gendered: male migrant result, women migrant workers’ ing away jobs in a difficult labour workers are more prevalent in incomes have been more stable market. One major and inad- manufacturing and construction, over the cycle and have not fallen equately recognized concern is and women migrants in services, to the same extent. the impact of the crisis on uni- such as the care economy (nurs- versal access to HIV services for ing and domestic work) and “en- However, internal migration has migrant women (UNDP, ILO and tertainment”. These care activi- been affected, with fewer job UNAIDS, 2010)

Women’s unpaid work

The unpaid labour of women has than men. Most women have to and for children) and collect- been directly and indirectly affect- cope with competing burdens of ing vegetables, leaves and fruit ed. The care economy and social both paid and unpaid work, with a from common lands and com- reproduction act as a socio-eco- greater burden on informal work- mon properties. Roughly a third nomic buffer in times of crisis. As ers who often cope by means of of the households in the sample household incomes decline, fami- overlapping activities. Especially reported an increase in the un- 7 lies are forced to adopt different during the crisis, there is a ten- paid work of women. It appears survival strategies, which often dency for these women to engage that women’s unpaid work has include non-market provision- in paid home-based activities, increased because: (i) cash poor ing for basic necessities using such as handcrafts in order to households have brought many household labour as well as other compensate for a shortfall in their market-oriented activities within means of augmenting access to income. Consequently, women’s the purview of domestic work; required consumption. The with- leisure time has ultimately been (ii) paid medical services have drawal or reduction of access to reduced (Nguanbanchong, 2010). turned into unpaid services; (iii) public services and higher user unemployed/underemployed charges for health and sanitation Surveys have found evidence men at home need more caring put a greater burden on unpaid la- that women’s unpaid work has from women; and (iv) women bour within the household, which increased since the crisis. This have increased the collection of is typically performed by women. unpaid work includes domestic free goods —fodder, vegetables, work such as cleaning, wash- leaves, fruits — particularly in the In Viet Nam, as elsewhere, most ing, sweeping, (as domestic rural areas, as evident from the time-use studies indicate that hired help is dispensed with), experience of return migrants. women have a greater burden care work (caring for the sick (UNDP India, 2009a, p. 33). Adverse impact on basic needs and rights

As incomes fall, access to food A study of the impact of high food women to medical care, includ- becomes more difficult, and with- prices in Cambodia found signifi- ing for reproductive health. In in the household, women and girls cant adverse effects on children, Thailand, expenditure on medical are relatively more deprived. This including a rise in the school services (both private and public) has been exacerbated by the glob- dropout rate (CDRI, 2008). The declined steeply, but expendi- al volatility of fuel and food prices, school dropout problem was re- ture on self-medication went up which has caused substantial in- ported as being highest among slightly. (Paitoonpong, Akkarakul creases in food prices in many the food-insecure households: and Rodsoomboon, 2009). countries. 13% of them had children drop- ping out of school in January There has been an increased In Indonesia, women interviewed 2008, rising to 22% by June inclination to gender-based vio- in late 2009 as part of a focus 2008. Between January and lence and domestic violence group survey reported that their June 2008, the dropout rate al- as worsening material condi- food consumption had changed most doubled, affecting more tions combine with a sense of because of higher prices. Those than one fifth of all children in helplessness among men, who who still had employment spoke primary school. Wasting among then look for outlets for their of reduced choices and the in- poor urban children increased anger and frustration. There ability to purchase fish or meat. from 9.6 percent in 2005 to 15.9 have already been reports of Those who had lost their jobs, and percent in 2008. an increase in violence against especially those who had been women within households and unemployed for more than a year, According to various case stud- outside the household, as well spoke of even starker choices. ies and quick surveys in the re- as greater insecurity of women They were thinning the milk they gion, the most common strate- in public spaces. Mental health gave to their babies or even sub- gies employed by a majority of deteriorates because of stress stituting tea or water with sugar the households include reliance caused by economic hardship, 8 for milk. They were feeding chil- on less preferred but less expen- loss of jobs and other insecu- dren less and were not able to sive food, reducing the amount of rity. The most extreme indica- give them money for lunch at food consumed, taking out loans tor of mental health is the inci- school. They found it difficult to and purchasing food on credit. dence of suicides. In Thailand, it buy rice and had cut down on their In most cases, women and girls was found that during the 2008 own intake. But even when the were more affected within the crisis, women’s suicide rate in- parents reduced their food intake, household, as mothers or elder creased by 8.6 per cent, while there was often still not enough sisters sacrificed food for other that of men decreased slightly for the children. Some reported household members. (UNDP Del- by 0.6 per cent. The number of that their children had lost weight hi, 2009). recorded prostitution cases in and become thinner. “For the Thailand increased by around 20 first three months my kids found Higher user charges for health percent between the first quarter it very difficult to go from eating and education have resulted in a of 2008 and the first quarter of rice, tempe and tofu, to just soup reduction or denial of access to 2009 (Paitoonpong, Akkarakul and the cheapest thing available” women and girls. There are re- and Rodsoomboon, 2009). The (Miller-Dawkins, Irwansyah and ports of withdrawal of girls from number of women drug addicts is Abimanyu, 2010, p. 17). school and reduced access of also reported to have increased. Impacts of the global crisis on women in developing Asia - Jayati Ghosh

Crisis management needs to be more gender-sensitive

Women in public employment schemes: the Mahatma Gandhi National Rural Employment Guarantee Scheme in India Launched in February 2006, To date, over 25 million households to participating women, but also, this demand-driven scheme is have been provided some employ- in many states, the wage delivery based on a legal guarantee for ment, and more than 7 billion per- mechanism is linked to the open- employment. The law passed son-days of work have been gen- ing of post office or bank accounts. the previous year entitles ev- erated. The enhanced wage earn- This involves the access of a much ery rural household up to 100 ings have led to a strengthening of greater number of women in insti- days of unskilled manual wage the livelihood resource base of the tutional finance from which they employment per year, at the rural poor in India; have reduced have been largely excluded. Intra- statutory minimum wage for ag- distress migration; and have be- household gender relations are ricultural workers in the state. come an extremely important buf- also likely to be positively affected. If employment is not provided fer against both the employment within 15 days, the applicant is shocks generated by the economic The scheme therefore has the entitled to unemployment allow- crisis (as migrant workers re- potential to transform rural eco- ance at half the wage rate. The turned home to their villages) and nomic and social relations at scheme aims to provide work against the drought that has swept many levels. It is this capacity to on labour-intensive projects fo- across large parts of rural India engender change that is at once cusing on rural infrastructure, in the summer of 2009 as well as a source of strength and a weak- implemented through locally other climate changes. ness for the implementation of elected bodies. the programme. This is because Nearly half the person-days are it unleashes forces in the rural This scheme has played an im- accounted for by women workers, economy, society and polity that portant counter-cyclical role, well above the minimum of 30 per necessarily threaten the status 9 because it provides more wage cent stipulated by the law, and also quo and therefore also those who income directly to unskilled significantly higher than women’s benefit from it. Therefore, it is workers and in rural areas. This share of the rural work force as precisely where it is most needed is much more effective in in- a whole. In some states such as that there is likely to be the most creasing aggregate incomes than Kerala, the rate is more than triple resistance to effective implemen- other forms of public spending, the recorded female work partici- tation. In fact, the huge potential due to the higher value of the pation in other activities, also be- of the NREGS1 has already been multiplier in such expenditure. In cause Kerala has taken the unusual evident, particularly in the enthu- addition, if it is properly imple- step of organizing the scheme siastic response of local people, mented, it has the potential it at the local level with the help of landless and marginal farmers has to increase both labour pro- the network of women’s self-help and women workers, wherever ductivity and the quality of life in groups. Not only does the scheme information about the programme rural areas. provide money incomes directly has been properly disseminated.

Social protection in the Asian re- during the crisis and providing den of women, which means pro- gion is very weak and needs to cash incomes to more women, moting more universal, better fi- be drastically revised. The reli- who thereby have better control nanced and accountable systems ance on the male breadwinner over household expenditures. of public service delivery.  model in relief packages, including in unemployment benefits The special needs of women and cash transfers, adversely af- small producers, including for fects women. By contrast, even credit, inputs and market access, FOOTNOTE employment schemes that ex- should be recognized. This re- 1 - NREGS is a historic employment plicitly recognize the right and quires a focus on the inclusion of scheme in India for providing 100 days need for women to work (such women in the provision of finan- guaranteed wage employment for all as the National Rural Employ- cial services, beyond micro-cred- employment seekers above 18 years of age and willing to do work. The scheme came ment Guarantee Scheme in In- it. In addition, it is crucial to rec- into force on 5th September 2005 in 200 dia) have led to major benefits, ognize and address the problems districts in India and extended to another providing a cushion of income of the increased unpaid work bur- 130 districts later. References

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New from AWID is this 2010 edition of the brief series: Impacts of the Crisis on Women´s Rights: Sub regional perspectives. We are excited to present an update, by region, to the exceptional research conducted in 2009 on the impact of the global financial crisis on women’s rights. This update provides relevant new data, testimonies, and voices from women activists on the ground. Each case presents an opportunity to unpack the in-depth challenges faced by different women in diverse contexts while examining possible policy solutions from a feminist perspective. This work takes us on a journey to help us think beyond the financial crisis and its implications, and start reflecting about the new world being created. At AWID we believe these studies contribute to building and supporting women’s movements.

Brief 1: The impact of the crisis on women in Latin America By Alma Espino and Norma Sanchís

Brief 2: Impact of the global crisis on women in developing Asia By Jayati Ghosh

Brief 3: Women of the Pacific and the global economic crisis By Karanina Sumeo

Brief 4: Impacts of the global economic and financial crisis on women in Central Asia By Nurgul Djanaeva

Brief 5: The Impact of the Deepening Economic Crisis on Women and Gender Equality in Western Europe By Wendy Harcourt and Lois Woestman

Brief 6: The Impact of the Crisis on Women in Eastern Europe By Eva Charkiewicz

Brief 7: The Global Economic Crisis and Gender Relations: The Greek Case By Lois Woestman

Brief 8: United States: The Continued Need for Social Sector Stimulus By Rania Antonopoulos and Taun Toay

Brief 9: The Impact of the Deepening Economic Crisis on Women in Eastern and Southern Africa By Zo Randriamaro

Brief 10: The Impact of the Global Economic Crisis on Women and Women™s Human Rights Across Regions By Nerea Craviotto

Brief 11: The Impacts of the Global Crises on Women and Women™s Rights in the Arab Region By Kinda Mohamadieh

These publications can be found on the AWID website: www.awid.org This publication is part of AWID’s initiative: Influencing Development Actors and Practices for Women’s Rights (IDeA) that seeks to contribute to advancing feminist understandings of the relationship between development and women’s rights issues with a particular focus on the aid effectiveness agenda and the Financing for Development process at the UN.