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Fostering Women's Economic Empowerment Fostering Women’s Economic Empowerment Fostering Women’s Economic Empowerment Through Special Economic Zones Through Special Economic Zones Comparative Analysis of Eight Countries and Implications for Governments, Zone Authorities and Businesses In Partnership with Canada and the World Bank Group Gender Action Plan THE WORLD BANK Fostering Women’s Economic Empowerment Through Special Economic Zones Comparative Analysis of Eight Countries and Implications for Governments, Zone Authorities and Businesses © 2011 The International Bank for Reconstruction and Development/The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclu- sions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. This publication was made possible with the funding from the World Bank Group Gender Action Plan and Canadian International Development Agency. The opinions expressed herein are those of the authors and do not necessarily reflect the views of any of the World Bank Group Gender Action Plan donors and Canadian International Development Agency. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete in- formation to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400; fax 978-750-4470; Internet www.copyright.com All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax 202-522-2422; e-mail [email protected] Table of Contents Acknowledgments . v Foreword . vii Executive Summary . vii Introduction . 1 What are SEZs and Why Focus on Gender Issues in the SEZ Context? . 1 Research Methodology . 4 Structure of the Study . 5 Chapter 1: The Case for Promoting Women’s Economic Empowerment in SEZs . 7 I . Socioeconomic Returns for the Host Country . 7 II . Economic Returns for Zone Authority . 8 III . Economic Returns for Investors: Benefits for Company Bottom Line . .11 IV . Conclusion . .14 Chapter 2: Obstacles and Enablers of Women’s Economic Participation in Zones: Comparative Analysis of Focus Countries . 15 Section1: Effect of Legal Rights and their Enforcement . 17 Section 2: Social and Cultural Factors . 25 Section 3: Poor Investment Climate and Lack of Business Support Services . 41 Chapter 3: Recommendations . 47 I . Creating a Legal, Regulatory and Policy Framework . .48 II . Strengthening Enforcement of Policies and Ensuring Compliance by Investors . 50 III . Providing Improved Services and Facilitating Capacity Building . 52 Chapter 4: Implementation Tools: Stakeholder Engagement, Monitoring and Evaluation Frameworks . 57 I . Stakeholder Engagement . .57 II . Monitoring and Evaluation . 61 iv Fostering Women’s Economic Empowerment through Special Economic Zones Case Studies . 69 Bangladesh . 71 China . 95 Costa Rica . 117 Egypt . 133 El Salvador . .147 Jordan . 161 Kenya . 179 Philippines . 193 Annex A: Interviewees . 211 Annex B: Bibliography . .215 Acknowledgments his book has been produced by a team led Thoughtful comments and suggestions enhanced by Sevi Simavi of the Women in Business the overall quality of this publication. Individual TProgram, IFC. The core team was comprised chapters were refereed by a panel of experts com- of Narissa Haider, Martin Norman, and Gokhan prising Thomas Farole (World Bank), Ganesh Akinci of IFC, as well as Ayesha Barenblat, Alison Rasagam (World Bank), Tara Holeman (IFC) Colwell, Betsy Fargo Mell, Ryan Flaherty, Racheal and Naoko Otobe (ILO). In addition, the authors Yeager, Helen Zhang, Zheng He of Business for gratefully acknowledge the invaluable comments Social Responsibility (BSR). Pei Bin, Faris Natour, received from industry and NGO representa- Celine Suarez, Stephanie Tan, Jennifer Schappert tives which included Carrefour, Gap, H&M, Jabil, (all BSR) and Narissa Haider (IFC), Andrea KappAhl, Levi Strauss, Li & Fung, Lindex, Marks Erdmann (SEZ Specialist) have contributed to the & Spencer, Nike, St. John’s Medical College of select chapters and country case studies. The team Bangalore, Tesco and Wal-Mart. gratefully acknowledges Monika Weber-Fahr, Cecilia Sager and Sumit Manchanda of the World The publication of this book was made possible by Bank Group for their intellectual contributions to the generous support of the World Bank Group the overall design of the study and for their guid- Gender Action Plan and Canadian International ance throughout the process. Development Agency. Foreword omen are a powerful economic force. zone and enterprise competitiveness in developing For a country’s growth, they make im- countries. This report—“Fostering Women’s Eco- Wportant contributions as entrepreneurs nomic Empowerment Through Special Economic and employees. And they support development Zones”—summarizes their findings. more broadly, through the care and attention they bring to the welfare of their families. Studies show What is interesting: Most successful economic that opening economic options for women puts zone management approaches that also support poverty reduction on a faster track. Special Eco- women economic empowerment operate along nomic Zones—geographical regions with special three dimensions—fair employment and work- regulatory and legal regimes that aim to increase ing conditions for female employees, equal access domestic and foreign direct investment —offer to opportunities for professional advancement, an opportunity for countries to embark on such and investment opportunities for female entre- a path. preneurs. The report presents an excellent com- pendium of policies and practices, ranging from But how? Our teams have looked across the globe, laws, regulations, labor policies, gender-sensitive analyzing the influence special economic zones professional development programs, family sup- (SEZs) can have on promoting women’s economic port mechanisms and women’s health programs, empowerment while at the same time boosting through to supplier diversity and capacity-building viii Fostering Women’s Economic Empowerment through Special Economic Zones initiatives. Based on research from eight countries between better gender-adjusted labor practices around the world, we are sure you will find practi- and their performance. The experiences presented cal insights and recommendations here that also fit in this report will provide valuable lessons for us your situation! in systematically creating win-win options, open- ing up economic opportunities for women entre- The World Bank Group is committed to reducing preneurs and women employees that also result in gender based barriers in development, and with re- growing investments and more competitive indus- gard to our engagement with the private sector we tries. The report is the product of a two-year col- focus on investment climates, helping governments laboration between staff in the World Bank’s Fi- understand the gender dimensions of business re- nancial and Private Sector Development group and form and growth, and on firm-specific approaches, IFC’s Women in Business Team. We are grateful such as working with financial institutions on in- for the support and funding from the Canadian In- creasing access to finance for women entrepreneurs, ternational Development Agency (CIDA) which or with firms on understanding the relationship has made this important effort possible. Sujata Lamba Monika Weber-Fahr Director Global Business Line Leader Competitive Industries Practice Sustainable Business Advisory Financial and Private Sector Development Advisory Services World Bank International Finance Corporation Executive Summary his report summarizes findings from global the first entry into formal-sector employment, and, research that examined the opportunity for as such, they offer a unique opportunity to empower Tspecial economic zones (SEZs) to promote women by providing economic opportunity outside women’s economic empowerment and boost zone of the informal sector. In addition, this study posits and enterprise competitiveness in developing that zone regulatory environments and infrastruc- countries. ture, by serving as “demonstration areas” or catalysts for countrywide reforms, present unique opportu- It focuses on women’s economic empowerment in nities to address the challenges faced by women in the context of zones at three levels: (1) fair employ- the workplace and female entrepreneurs. ment and working conditions for female employees, (2) equal access to opportunities for professional Nongovernmental organizations (NGOs), con- advancement, and (3) investment opportunities for sumer groups, and international organizations female entrepreneurs. The objective of the study was often denounce SEZs and attribute to them to identify gender-friendly policies and practices harsh labor conditions in which women
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