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Gender Equality in Global Value Chains and the Role of Aid for Trade in Promoting Gender Equality and Women’S Employment in Developing Countries Johanna K

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Gender Equality in Global Value Chains and the Role of Aid for Trade in Promoting Gender Equality and Women’S Employment in Developing Countries Johanna K Gender equality in global value chains and the role of Aid for Trade in promoting gender equality and women’s employment in developing countries Johanna K. Silvander MINISTRY FOR FOREIGN AFFAIRS OF FINLAND This report has been commissioned by the Ministry for Foreign Affairs of Finland. The opinions and conclusions appearing in the report are personal to the author and do not necessarily represent the position of the Ministry for Foreign Affairs. The report is an English version of the original publication in Finnish. Original publication: ISBN 978-952-93-3383-7 ©Johanna K. Silvander 2013 English version: ISBN 978-952-68252-1-2 Silvander Group of Excellence (SGoE) HELSINKI The graphic image of this report has been created by Graphic404 – a small enterprise based in Lusaka, Zambia. ii TABLE OF CONTENTS Table of Contents iii For the reader iv Abbreviations vi Summary vii 1.0 The impacts of international trade on gender equality and the employment of women in developing countries 1 1.1 Introduction 1 1.2 The global economy of value chains 1 1.3 Gendered global value chains 3 2.0 Global value chains and gender equality in the textiles and clothing industry 12 2.1 Introduction 12 2.2 Structure of global value chains in the textiles and clothing industry 12 2.3 Gender equality in textile and clothing sector value chains 16 2.4 Key proposals arising from the analysis 22 3.0 Global value chains and gender equality in the fruit and vegetable industry 24 3.1 Introduction 24 3.2 Structure of global value chains in the fruit and vegetable industry 24 3.3 Gender equality in the fruit and vegetable sector value chains 26 3.4 Key proposals arising from the analysis 30 4.0 Global value chains and gender equality in the tourism industry 33 4.1 Introduction 33 4.2 Structure of global value chains in the tourism industry 33 4.3 Gender equality in the tourism sector value chains 35 4.4 Key proposals arising from the analysis 39 5.0 Aid for Trade and other policies as instruments for promoting gender equality and women’s employment 42 5.1 Introduction 42 5.2 Policies to promote gender equality in value chains 42 5.2.1 Promoting social value addition in value chains 42 5.2.2 The role of government policies 44 5.2.3 The role of private actors’ initiatives 49 5.3 Integrating gender equality objectives into Aid for Trade initiatives: proposals in brief 52 Gender equality in global value chains and the role of Aid for Trade in promoting gender equality and women’s employment in developing countries | iii For the reader Commerce and trade-related policies have different impacts on men and women, as well as on different groups of people among them. Simultaneously, limitations in gender roles affect trade competitiveness. Recent research shows that gender inequality affects the formation of competitive advantages and that reducing gender-based discrimination can improve productivity. Influential global actors are convinced that gender equality is important also for the economy: World Development Report 2012 - Gender Equality and Development by the World Bank points out that gender equality not only has an intrinsic value in itself, but that it also makes economic sense. Equality increases productivity, improves development outcomes for future generations, and makes institutions more representative of the society. The concept of gender refers to roles and relationships, personal characteristics, attitudes, behaviour, values​​ and relative influence that are concretised in different ways in society for women and men. While biological sex is determined by genetics and anatomy, gender is a learned identity which changes over time and space and between different cultures. The concept of gender equality in the workplace has gained content, among others, through the ILO Discrimination (Employment and Occupation) Convention, 1958 (No. 111). The Convention identifies a comprehensive list of factors which constitute prohibited grounds for discrimination in the workplace. Race, colour, sex, religion, political opinion, ethnic origin or social status cannot lead to any distinction, exclusion or preference which would eliminate or impair equality of opportunity or treatment in employment or occupation, incl. vocational training. State Parties to the Convention undertake to develop a comprehensive national gender policy and to promote gender equality in the world of work. The ILO Equal Remuneration Convention, 1951 (No. 100) compels State Parties to ensure that the principle of “equal pay for work of equal value” is respected in the remuneration of male and female employees. To promote gender equality, it is important that the different needs of women and men are taken into account in the world of work. In addition, it is necessary to work towards improved equality of opportunity for both women and men to strive for their spiritual and material development despite differences between the genders. All over the world, the pressures created by family responsibilities pile up on working women. The ILO Workers with Family Responsibilities Convention, 1981 (No. 156) stipulates that family obligations per se do not constitute a basis for terminating employment. State Parties to the Convention undertake to introduce and comply with national policies that enable labour market participation and equal opportunities for career progression irrespective of family responsibilities. In addition, State Parties shall, where possible, take into account the needs of workers with family responsibilities with regard to working conditions and social security, as well as in community planning and provision of services (e.g. childcare and services for families). Finally, the ILO Maternity Protection Convention, 2000 (No. 183) requires that State Parties prohibit by law the termination of employment due to pregnancy or motherhood, and that they ensure the right to maternity leave and necessary occupational safety and health arrangements during pregnancy and maternity. This report pays particular attention to the above-mentioned aspects in assessing the realization of gender equality in global value chains. Despite the clearly positive impact of gender equality on the society and the economy, women iv globally are still in a more disadvantaged position in the labour market than men. Women are more likely to work as unpaid labour in family enterprises or in the informal economy. Female farmers often have less access to land and finance, and they usually grow less profitable crops. Women entrepreneurs also tend to run smaller businesses in less profitable sectors than their male counterparts. As a result, women earn less than men, and this is also reflected in power relationships in the household. Earlier research has shown that globalization may help women to improve their societal status relative to men, promoted through factors such as free trade and accessibility of information technology. However, these improvements do not happen automatically. The opportunities generated by globalization may not materialize if measures are not put in place to support vulnerable groups to take advantage of the possibilities.1 Apart from national governments, the international community also has a role to play in this regard. This report is based on a literature review and it aims to highlight gender equality issues linked with integration into global value chains. Furthermore, based on existing research and case studies, good practices are reviewed, and different trade policy and Aid for Trade instruments are analysed with the objective of promoting gender equality and women’s employment in developing countries. The report focuses on the three main categories of trade: trade in manufactured goods, in agricultural products, and in services. Within these broad categories, the sectoral analysis concentrates on textiles (including a reference case study on electronics), fruit and vegetables as well as tourism industry. The sectors are chosen with an emphasis on export-oriented industries where women constitute a relatively high share of the labour force. Responsible trade policy takes into account sustainable and equitable social development in trading partner countries and supports it in particular in trade talks with developing or least-developed countries. The aim of this report is to support the integration of gender equality issues within trade policy and specifically within the implementation of Aid for Trade initiatives by making concrete proposals to support programme and project design. Thematically, the report deals with four main issues: 1. Gender segregation in global value chains, focusing on developing countries; 2. Gender-based constraints in global value chains; 3. Positive and negative effects of economic value addition and trade liberalization on gender equality; and 4. Good practices, policies and trade-related support instruments that promote gender equality. 1 World Bank, 2012. Gender equality in global value chains and the role of Aid for Trade in promoting gender equality and women’s employment in developing countries | v Abbreviations AfT Aid for Trade ACP African, Caribbean and Pacific AGOA African Growth and Opportunity Act ATC Agreement on Textiles and Clothing BFC Better Factories Cambodia project (ILO & IFC) EBA Everything but Arms EPZ Export Processing Zone ETLA Elinkeinoelämän tutkimuslaitos (the Research Institute of the Finnish Economy) EU European Union FAO Food and Agriculture Organization of the United Nations Finatex Finnish Textiles and Clothing Industry Association
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