Module 4B Trade and Gender Linkages: an Analysis of the Southern African Development Community United Nations Conference on Trade and Development

SADC

TEACHING MATERIAL ON TRADE AND GENDER VOLUME 1: UNFOLDING THE LINKS MODULE 4B TRADE AND GENDER LINKAGES: AN ANALYSIS OF THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

Teaching Material on TRADE AND GENDER

Volume 1 Unfolding the links

Module 4b Trade and Gender Linkages: An Analysis of the Southern African Development Community

This work is available open access by complying with the Creative Commons licence created for intergovernmental organizations, available at http://creativecommons.org/licenses/by/3.0/igo/.

The findings, interpretations and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the United Nations or its officials or Member States.

The designation employed and the presentation of material on any map in this work do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

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This publication has been edited externally.

United Nations publication issued by the United Nations Conference on Trade and Development.

ii READING

NOTE

On 19 April 2018, Swaziland officially changed its name to Eswatini. The desk research, empirical work and editing of this module were completed in March 2018. Processing of the publication took place between April and May 2018 and, thus, the authors of the module refer to Eswatini as Swaziland.

ACKNOWLEDGEMENTS

This module was prepared by an UNCTAD team including Chiara Piovani (lead author) and Burak Onemli. Comments and suggestions were provided by Nursel Aydiner-Avsar, Mariangela Linoci, Maria Masood, Jacqueline Salguero Huaman, and Simonetta Zarrilli. The module was coordinated and supervised by Simonetta Zarrilli, Chief of the Trade, Gender and Development Programme at UNCTAD. David Einhorn was in charge of English editing.

The publication of this module was made possible by the financial support of the government of Finland, which is gratefully acknowledged.

iii TABLE OF CONTENTS

LIST OF BOXES V LIST OF FIGURES V LIST OF TABLES VI

Trade and Gender Linkages: An Analysis of the Southern African Development Community 1

1 Introduction 2 1.1 The Southern African Development Community: Institutional development and economic outcomes 2 1.2 The SADC countries: A socio-economic overview 8 1.3 Gender analysis of the SADC region 12 1.3.1 Gender-related outcomes 12 4B 1.3.2 Gender-related inputs 14 2 Trade and gender in the agricultural sector 18 2.1 Agriculture in the SADC region 18 2.2 The gender structure of agriculture in the SADC region 19 2.3 The gender gap in agriculture and the drivers of that gap 20 2.3.1 Land control 21

module 2.3.2 Work burden 21 2.3.3 Access to credit and inputs 21 2.3.4 Educational attainment 22 2.3.5 Access to markets 22 2.3.6 The gender wage gap and occupational segregation 22 2.4 The impact of the gender agricultural gap on trade 22 2.4.1 Women as underachievers of competitive advantage 22 2.4.2 Women as sources of competitive advantage 23 2.5 The impact of the SADC on regional agricultural development 23 2.6 Estimating the impact of trade openness on women in agriculture in the SADC 24 2.6.1 Findings on the impact of trade on women’s employment in agriculture 25 2.6.2 Findings on the impact of trade on the gender employment gap in agriculture 26 3 Trade and gender in the industrial sector 27 3.1 Export processing zones and their impact on women in SADC countries 28 3.2 Trade liberalization in manufacturing and its effects on women in the SADC region 30 3.2.1 The channels through which trade liberalization in manufacturing affects women’s employment and wages 30 3.2.2 Estimating the effect of trade liberalization on women in the manufacturing sector in the SADC 31 3.2.3 Gender wage inequalities in the SADC manufacturing sector 34 3.3 Estimating the gender impact of trade openness in the industrial sector 36 3.3.1 The impact of trade openness on female employment in the industrial sector 36 3.3.2 The impact of trade openness on the gender employment gap in industry 37 4 Trade and gender in the service sector 37 4.1 The role of services and SADC service liberalization 37 4.2 The relevance of the service sector for women’s employment 39 4.3 Tourism and gender outcomes 40 4.4 Estimating the impact of trade openness on women in services 42 4.4.1 Results for total female employment in services 42 4.4.2 Results for sectoral gender-based employment inequalities 42 5 Conclusion: Summary and policy recommendations 42 Exercises and questions for discussion 47

iv Annex 1 48 A.1.1 Data and methodology to estimate the impact of trade openness on women in SADC countries 48 A.1.2 Descriptive statistics on female-to-male employment ratios in the manufacturing sector in SADC 48 A.1.3 Methodology to estimate the impact of tariff changes on women in SADC countries 50 Annex 2 53 A.2.1 Bilge Erten and Fiona Tregenna (2014): “How Does Trade Liberalization Affect Racial and Gender Inequality in Employment? Evidence from Post-Apartheid South Africa” 53 A.2.2 Taruna Shalini Ramessur and Sanjeev K. Sobhee (2009): “Impact of Trade Liberalization on Labour Conditions in the Textile Sector of Mauritius: The Fate of Female Workers” 53 References 54 Endotes 59

LIST OF BOXES

Box 1 Time-use surveys 15 Box 2 Gender references in SADC documents on trade 17 Box 3 Female-headed households 20 Box 4 The impact of trade liberalization on rural women in Lesotho 24 Box 5 The impact of trade liberalization on rural women in Angola 25 Box 6 Export processing zones in Madagascar, Mauritius, and Namibia 30 Box 7 Agri-tourism 41

LIST OF FIGURES

Figure 1 The Southern African Development Community region 3 Figure 2 Geographic composition of SADC trade, 2001–2008 and 2009–2016 (per cent shares) 5 Figure 3 Sectoral composition of SADC trade, 2001–2008 and 2009–2016 (per cent shares) 5 Figure 4 Sectoral contribution to value added in the SADC, 1970–2015 (per cent) 7 Figure 5 Sectoral composition of the workforce by sex, SADC, 1995, 2005, and 2015 (per cent) 7 Figure 6 Evolution of female employment in SADC, 1991–2015 (per cent) 8 Figure 7 Shares of SADC GDP by member country, 2016 (per cent) 9 Figure 8 Average growth rate of GDP per capita, 2014–2016 (constant 2010 US$) 11 Figure 9 Sectoral structure of economic activity, 2015 (share of GDP in per cent) 11 Figure 10 Regionally differentiated impact of trade openness on female employment in agriculture 26 Figure 11 Regionally differentiated impact of trade openness on the gender employment gap in agriculture 27 Figure 12 Regression results for the effects of export tariff changes on female-to-male employment ratios 32 Figure 13 Impact of import tariff changes on female-to-male employment ratios, selected regions 34 Figure 14 Wages and female-to-male labour ratios for exporting and non-exporting firms in the SADC 35 Figure 15 Regionally differentiated effects of trade openness of female employment in industry 36 Figure 16 Services imports and exports, average for 2012–2015 (millions of US$) 38 Figure 17 Composition of SADC services imports and exports, 2016 (per cent) 38 Figure 18 International tourism receipts as a percentage of total exports, 2015 41 Figure A1.1 Female-to-male employment ratios across sectors 50

v LIST OF TABLES

Table 1 The SADC region: Basic economic indicators 4 Table 2 Exported and imported manufacturing products of SADC countries 6 Table 3 Economic profiles of SADC member countries 9 Table 4 Human development in the SADC countries, 2015 10 Table 5 Indicators of gender inequalities, 2015 12 Table 6 Informal employment, by sex 13 Table 7 Global Gender Gap Index, 2006 and 2017 14 Box table 1.1 Hours spent on paid and unpaid activities by men and women 15 Table 8 The role of agriculture in SADC countries (per cent) 18 Table 9 Male and female shares of agricultural employment, average for 2001–2008 versus 2009–2016 (per cent) 19 Box table 3.1 Share of households that are female headed (per cent) 20 Table 10 Employment shares in industry by sex, 2001–2008 versus 2009–2016 (per cent) 28 Table 11 Export processing zones in SADC countries 29 Table 12 Summary of the impact of trade liberalization on female employment in the manufacturing sector in the SADC 34 Table 13 Male and female shares of employment in services, averages for 2001–2008 and 2009–2016 (per cent) 39 Table 14 Female-to-male employment ratios in sub-sectors of services in selected SADC countries 40 Table A1.1 Table Estimates of the impact of trade openness on female employment in agriculture 49 Table A1.2 Descriptive statistics on female-to-male employment ratios within firms by sector 49 Table A1.3 Regression results for the impacts of tariff changes on female-to-male employment ratios in manufacturing (dependent variable: percentage change in female-to-male employment ratios) 51 Table A1.4 Estimates of the impact of trade openness on female employment in industry 51 Table A1.5 Estimates of the impact of trade openness on female employment in services 52

vi Module 4b Trade and Gender Linkages: An Analysis of the Southern African Development Community

1 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 2 on Trade andDevelopment (UNCTAD, 2014). the UnitedNationsConferencecompiled by of theteaching manual on trade and gender threecomplements modulesof the Volume 1 African Development Community (SADC), This module, whichfocusesthe Southern on 1 Introduction on women’s employment. the effecttrade of to estimate liberalizationused microeconomic andmacroeconomic dataare these sectors.the caseofmanufacturing, In both women’s economic ineachof empowerment trade liberalization andgenderequality and with aspecificfocusthe interplay between on examines agriculture, industry, andservices, a sectoralthe SADC analysis economies. of It the region. to provideThe moduleproceeds of effortstowards gendermainstreaming in profile ofSADC countries, including areview member countries.the gender then analyses It the recent socio-economicof performance ofits economic development ofSADC andanevaluation the institutionalwith abriefreview and of the region.development in This modulestarts to fosterestablished political andeconomic membercountries ofSADC, whichwas the 16 to to 3 griddevelopedanalytical inModules1 The present study, Module4b,the applies Africathe East Communityon (EAC). Southern Africa (COMESA), andModule4afocuses the Common for Market 4 looks at Eastern and regions.the selected and institutionsof Module the circumstances to examine to 3canbeapplied 1 illustratethe framework how presented inModules on specificregionalto economic communities teaching material focused the development of three moduleshaveThese beenfollowed by competitivenesstrade and performance. examining how genderinequalities affect export the reverseModule 3discusses relationship by consumers, producers,traders, taxpayers. and their rolestrade womeninasworkers, impacts throughModule 2presentsthe channelswhich tradethe gender-trade andunderstand nexus. to measureprovides tools basicdefinitionsand to measure genderinequalities;indicators also it from agendered perspective, andintroduces key the economy1 explainshow canbeexamined trade.relationship betweengenderand Module theoretical andempirical overviewsthe of to 3in Modules 1 Volume 1provide both formulate gender-equitable policies. tradetrade of and policyand the genderimpact society organizations,to assess andacademics the capacityofpolicymakers,to enhance civil teaching manual wasThe tool developed asa liberalizationthe SADC region. onwomenin trade of the impact concludes withasummaryof 2 The module The

development (SADC, 2001a). ensure andsocio-economic sustained growth througheconomies institutional cooperationto fewtransform primarycommodities and their to overcome ofa their dependenceonexports SADC wasthe needofitsmembercountries the creation ofto led sharedthat concerns able to: this module,the endof At students shouldbe Zimbabwe. the UnitedRepublic of Tanzania, Zambia, and Namibia, Seychelles, SouthAfrica, Swaziland, Madagascar, Malawi, Mauritius, Mozambique, Democratic Republicthe Congo, of Lesotho, member states: Angola, Botswana, Comoros, As showninfigure 1, asof2018SADC has16 among itsmembercountries. deeper political andeconomic integration organization, SADC, was foundedto promote constitutional changeinSouthAfrica,the new the beginningofa independence in1990and Africa. Following Namibia’s declaration of inSouth apartheid colonialism andagainst foster cooperation amongitsmembersagainst Conference, whichwas formedto in1980 the SouthernAfrican Development Coordination SADC wasto established in1992asasuccessor Development African Southern The 1.1 relations and the worldeconomy.“relations and competitive andeffective playerininternational and security,the region emergesasa that so integration, goodgovernance, anddurable peace productive systems, deeperco-operation and economicthrough development efficient, and equitable andsocio- economic growth the organization aims “to promote sustainable SADC’s officialthat states MissionStatement of these targets,these of however,the islagging behind 2016, andasinglecurrency in2018. The realization common in2015, market an economic unionin area (FTA) in2008, acustomsunionin2010, a integrationthe region: milestonesof trade afree Plan (SADC,the following 2001a)outlined The Regional Indicative Strategic Development • Interpret the empirical Interpret findingsongender • • Understandthe methodology to evaluate the interactionstrade Identify between and • Interpret• andapplyvarious indicatorsof and tradeto designgender-equitableand policies. employment trade of integrationthe impact onfemale gender-related economic outcomes the SADCgender inequalities region in and economic outcomes Community: Institutionaldevelopment 3 5

4 One of the Oneof Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Figure 1 The Southern African Development Community region module

scheduled targets; as of 2018, SADC has only milestone in the economic integration of the achieved the first milestone, the formation of an continent.8 The agreement will enter into force FTA (i.e. intra-regional trade liberalization). once 22 states have ratified it. The formation of a free trade area covering Africa creates a single The SADC Free Trade Area, which began in market of 1.2 billion people with a combined GDP 2001 with a schedule of intra-regional tariff of more than US$2.5 trillion. All SADC countries reductions, met the minimum requirement of signed the agreement to establish the AfCFTA. an FTA in 2008, with an estimated 85 per cent of The main objective of the agreement is to create a intra-regional trade subject to zero duty. Twelve single continental market for goods and services. SADC countries at the time joined the FTA.6 It is also expected to expand intra-African trade With the goal of further expanding intra-regional through better harmonization and coordination trade and investment, the heads of state and of trade facilitation instruments. Ultimately, government of the SADC signed the Tripartite the AfCFTA would facilitate the exploitation of Free Trade Area Agreement (TFTA) with COMESA opportunities for scale production, continental and the EAC in 2015.7 The TFTA was signed by market access, and better reallocation of 26 countries with a combined population of resources. According to the United Nations around 600 million people, close to half of the Economic Commission for Africa, the AfCFTA African population, and about 60 per cent of has the potential to boost intra-African trade by the continent’s GDP. The agreement aims to 52.3 per cent by eliminating tariffs. Such a result deepen regional economic integration through could be doubled if non-tariff barriers were also the coordination of policies and programmes in reduced (Economic Commission for Africa, 2018). the area of trade, customs, and infrastructure Phase 2 of the negotiations, expected to start development (Júnior, 2016). As of August 2017, at the beginning of 2019, will cover intellectual only eight countries ratified the agreement. The property rights, investment, and competition TFTA will enter into force when two-thirds of the policies (TRALAC, 2018). members submit ratification. In June 2016, SADC expanded the process of In a recent development, leaders of 44 African liberalization by signing an Economic Partnership countries (out of the 55 African Union member Agreement (EPA) with the European Union (EU), states) signed an agreement to create the African which is one of the SADC’s main trading partners. Continental Free Trade Area (AfCFTA) on 21 March South Africa accounts for the largest share of 2018 in Kigali, Rwanda, marking a historic trade flows with the European Union.9

3 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 4 (European Commission, 2016), including: asymmetric liberalizationtrade of barriers countries,the corethe SADC EPA of the liesin the Europeanthe SADC between Unionand the differentto Due level ofdevelopment between 2000and2005,then slowedafterwards. the region increased in substantiallygrowth Africa.table 1, Asshownin average annual populousregions in the most SADC isoneof With acombined populationofover 321million, indicators evolvedthe SADC region in after 2000. Table 1shows howkey economic andsocial imports. SADC: SouthernAfrican Development Community. Notes: (accessed on14March 2017). Source: capita –expressed inconstant 2011international The evolution ofgross per national income (GNI) World Development indicatorsdatabase. cent),the accordingto (48 per World Bank’s 2017 the average for low-to-middle-income countries percent) and above sub-Saharan Africa (58.6 The SADC’strade openness, however, remains in2015. cent to 68 per in2010 cent from 73 per to GDP)shrank aswell,and imports declining regionthe ratio (measuredthe sumofexports by of trading partners, the the degree ofopenness Following the major in sloweconomic growth SADC’s economic performance. Republic ofChina,the primarydrivers are of the People'sthe economic slowdownof with global economic crisis,2008–2009 combined the EuropeanAmerica and Unionfollowingthe the UnitedStatesof in Slow economic growth rd prcn fGP 49 13 33 68.12 4.21 73.34 321.46 5.47 61.39 280.43 6.17 54.91 245.76 4195 0.81 217.21 3713 3050 2504 Gross national income percapita(constant 2011international US$) Trade ofGDP) (percent (percent) Annual GDP growth Total population(millions) • Development: The European Union Flexible rulesoforigin:the Enterprises in • Safeguards: SADC EPA countries are allowed • Preferential access: market The European Union • Table 1 development reduction. andpoverty sustainable to support development assistance has c access tothe European Union. use offoreign components whilehaving free SADC EPA region arethe given flexibilityin the region. to agricultural exports to subsidizeEuropean its Unionagreed not their sensitive products (e.g.textiles), the and to keep usingprotectivetowards measures the EPA.the African signed than countriesthat more to openupitsmarket has committed the membercountries.The dataarethe populationof weighted by Tradethe value and the sumof ismeasured ofexports by Calculationsthe UNCTAD by the basedondatafrom secretariat World Bank’s World Development Indicatorsdatabase omplemented market access with omplemented accesswith market The SADC region:The Basiceconomic indicators 11

the economic driver ofmany SADC economies. and excludes services, whichbynowconstitute the EPA that to note trade onlyconcerns ingoods agricultural exports. Inaddition, isimportant it to the Europeantoforfeit itssubsidies Union agreement requiringthe first isalso and it however, strengthens thesetrade partnerships, trade agreement established in2000. The EPA, Africa have also beenregulated byabilateral the Europeanflows betweenUnionandSouth the under Arms”“Everything But Initiative. Trade Zambia) have duties beenexempted from import Mozambique,the UnitedRepublic of Tanzania, and Democratic Republicthe Congo, of Lesotho, Malawi, countriesthe SADC region in (Angola, Comoros, the access regulations since2008. and Swaziland hadbeenprovided withmarket as developing countries, Botswana, Namibia, to substantiallytrade changecurrent flows, Union. Forthis reason, the EPA was expected not have agreementsthe European inplacewith the EPAThe SADC signed countriesthat already SADC FTA the context ofamajorcrisisand in As illustrated infigure 2, the formationthe of bulk ofintra-SADC (Bankof exports Tanzania, 2013). Botswana, Swaziland, andZimbabwe account forthe share ofintra-SADCest imports, whileSouthAfrica, food. Botswana andNamibiaaccount forthe larg- regionaltrade isdominatedbypetroleum, oils, and ofprimarycommodities,the export formal intra- database. SADC countries Asmost stilldependon billion,the 2017UNCTADstat accordingto US$30 The value ofintra-SADCtrade in2016was about (Tanyanyiwa andHakuna, 2014; Chidede, 2017). Asian Nations, andisdominatedbySouthAfrica Agreement, the Association of Southeast and European Union, AmericaFree the North Trade however, the remainsto lowincomparison liberalizationthe region. in Intra-SADCtrade, 2000 era, is,that trade afterthe beginningof Intra-regionaltrade the post- hasincreased in World Development Indicatorsdatabase. cent,the accordingto World4.2 per Bank’s 2017 correspondsto anannual average increase of in2015, which to US$4,195 from US$2,504in2000 between 2000and2015. percapitaincreased GNI the magnitudeofwelfaredollars –indicates gains 0020 002015 2010 2005 2000 10 Least-developed 12 Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Figure 2 Geographic composition of SADC trade, 2001–2008 and 2009–2016 (per cent shares) module Exports Imports 40

0 2001—2008 2009—2016 2001—2008 2009—2016 2001—2008 2009—2016 2001—2008 2009—2016 2001—2008 2009—2016

SADC Sub Saharan Africa Developing Asia European Union Other

Source: UNCTADstat Database (accessed on 17 August 2017). Note: SADC: Southern African Development Community. subsequent slow growth in the European Union United States) significantly shrank in favour of and the United States has been associated with a large increase in the trade share within SADC, a major shift from industrialized countries to with other sub-Saharan African countries, and developing countries as main trading partners. with Developing Asia13 (especially the People's Comparing the geographic composition of trade Republic of China). In this process of geographic for the period 2001–2008 with the period 2009– restructuring of trade, SADC now runs a trade 2016 (before and after the formation of the SADC deficit with the European Union (with which it FTA, which also coincides with comparing trade used to run a surplus) and runs a trade surplus before and after the global financial crisis), the with Developing Asia (with which it used to run trade shares with the European Union and the a trade deficit). Developing Asia is now the SADC’s “Other” category (primarily represented by the largest partner for both exports and imports.

Figure 3 Sectoral composition of SADC trade, 2001–2008 and 2009–2016 (per cent shares)

Exports Imports 60

2 009—2 01 6 2 001 —2 008 2009—201 6 2001 —2008 2009—201 6 2 001 —2 008 2009—201 6 2 001 —2 008 2 009—2 01 6 2 001 —2 008 2 009—2 01 6 2 001 —2 008 Primary products Resource-base d Low-tech Medium-tech High-tech Unclassified Source: UNCTADstat database (accessed on 18 August 2017). Note: According to the Lall (2000) classification, primary products are agricultural and mining products; resource-based manufactures are agro-based and other resource-based products; low-technology manufactures are textiles, garments, footwear, etc. products; medium-technology manufactures are products made in automotive, process, and engineering industries; high- technology manufactures are electronic and electrical products; and unclassified products are unspecified commodities and transactions. SADC: Southern African Development Community.

5 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 6 SADC's exports. Inrecent years, share the export total valuethe of percent of than 50 more tobacco). Primaryproducts nowconstitute automotive industry,textiles, clothingand and manufactured goods(e.g. itemsforthe metals anddiamonds), andresource-based manganese ores, platinum, andprecious ofprimaryproducts (e.g.world consist coal, the of the rest to the SADC by items exported tableAs showninfigure 2, 3and the major the region. The industrycomponent asashare of making uparound 60 perthe economy of cent in economic driver,the singlelargest isnow sector the SADC’sone-tenth of value added. The service halved since1970; in2015, contributedthan it less shift. The contribution ofagriculture hasalmost the SADCthrough regionof asignificant went the early1980s,in the economic composition the beginningofglobalizationespecially since As showninfigure 4, inrecent decadesand b a Note: https://atlas.media.mit.edu/en/ 2017). (accessedon29October Source: Data from the CIA DatafromtheCIA World Factbook. DatafromtheUnitedNationsComtrade and Service Trade databases. Table 2 Zimbabwe Zambia Tanzania United Republic of Swaziland South Africa Seychelles Namibia Processed fish, raw sugar, garments, Mozambique Mauritius Vanilla, raw nickel, cloves, garments, crustaceans Malawi Madagascar Lesotho Diamonds, nickel mattes, insulatedwire, meat Copper products andcobalt Congo, Dem. Rep. of Botswana Angola the OECshowproducts asof2015. by The datacollected SADC: SouthernAfrican Development Community. onre xotdmnfcuigpout Importedmanufacturingproducts Exportedmanufacturingproducts Countries Unless otherwise stated, Unlessotherwise the dataare fromtheObservatory ofEconomic Complexity (OEC)website, whichisavailable at a b diamonds Rawtobacco, gold, nickel ore, ferroalloys, cobalt Raw andrefined copper, rawtobacco, corn, glass bottles Gold, rawtobacco, nuts, precious metal ores, refrigerators, citrus, cannedfruits Beverages, sugar,timber, cotton yarn, ferroalloys Platinum, cars, coal briquettes, iron ore, petroleum, boats, rolledtobacco Processed andunprocessed fish, refined uranium, thorium ore Diamonds, copper ore, unprocessed fish, gold, beverages Aluminium products, electricity, coal briquettes, cotton Rawtobacco, driedlegumes, raw sugar,tea, raw electronics, beverages Textiles products, andgarment leatherproducts, petroleum, petroleum gas Crude petroleum, diamonds,tar oil, coal refined Exported and imported manufacturing ofSADC products countries andimported Exported manufacturing (REDI, sector 2015). primary commodities anddevelop astrong their dependenceonto successfullyreduce major challenge for SADC countries most is based andothermanufacturing products. The trend, ofresource- importer SADC isnowanet types ofmanufactures shrank. Parallelthis to the shares ofresource-based products andother ofprimaryproductsexports) increased, while (calculated asapercentagethe value of total of regional hasslightly declined. output (SADC, 2015a). only ifaccompanied bynewindustrial capabilities development andreduce andinequality poverty liberalization canpromote sustainable trade that this strategythe view Behind lies competitivenesstechnological innovation. and the region’s industrial to support blueprint hasbecome Strategy andRoadmap (2015–2063) industrialization,the SADC Industrialisation soybean oil Refined petroleum, corn, electricity, medications, ores, oxides, cobalt hydroxides Refined andcrudepetroleum, copper andcobalt wheat Refined petroleum, palm oil, medications, cars petroleum products, chemicals Motor vehicles, machinery, equipment,transport equipment Crude andrefined petroleum, cars, broadcasting products. cars Boats, unprocessed fish, refined petroleum, plastic copper Refined petroleum, diamonds,trucks, cars, raw electricity,trucks and Refined petroleum, raw aluminium, medications, medications, broadcasting equipment Refined petroleum, unprocessed fish, cars, wheat Refined petroleum, medications, fertilizers, and cars Refined petroleum, rice, medications,trucks and motor vehicles andaccessories Petroleum products, furniture, cosmetics, poultry, animal blood, machinery Medications, refined petroleum,trucks, humanand electricity Diamonds, refined petroleum, medications, cars, Ships, machinery, cars, iron pipes, valves 14 To boost Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Figure 4 Sectoral contribution to value added in the SADC, 1970–2015 (per cent) module

Agriculture Industry Services 0.70

0.60

0.50

0.40

0.30

0.20

0.10

0.00 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source: UNCTAD secretariat based on UNCTADstat (accessed on 18 October 2017). Note: SADC: Southern African Development Community.

Parallel to this structural transformation, services increased. Nonetheless, agriculture the composition of employment changed as remains of primary importance for men’s and well. Figure 5 shows the percentage shares of especially for women’s employment (further male and female employment in agriculture, discussed in Section 2). Interestingly, over the industry, and services in 1995, 2005, and 2015. course of economic integration, the employment As the role of agriculture declined and the role share of women in industry declined, while the of services expanded, the shares of both men corresponding share for men increased (a major and women employed in agriculture shrank driver of this outcome is male dominance in while their respective shares employed in mining).

Figure 5 Sectoral composition of the workforce by sex, SADC, 1995, 2005, and 2015 (per cent)

Agriculture Industry Services

2015 47 18.3 34.7

2005 51 16.5 32.6

1995 53 16.3 30.8

2015 56 5.55 38.04

2005 59 5.71 35.24 Female Male

1995 61 6.19 32.80

0 10 20 30 40 50 60 70 80 90 100

Source: World Bank, World Development Indicators database (accessed on 28 August 2017). Note: SADC: Southern African Development Community.

7 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 8 different countries. willprovide 2-4 an Sections the in composition ofindustryandservices the employment applies whenlookingat Madagascar, andMalawi. Asimilaroutcome the Democratic in cent Republicthe Congo, of inSouthAfrica cent to over 75 per from 3.8 per women employedinagriculture in2015ranged countries. For example,the percentage of its changesovertime) varies across member countries, composition employment (and Consistentthe heterogeneitythe SADC with of have the lowest GDPpercapita. havethe lowest the Congo, Madagacar, Malawi, andMozambique per capita; incontrast,the Democratic Republic of Mauritius, andSouth Africa GDP havethe highest region.terms ofstandards ofliving, In Seychelles, face demographicthe greatest pressurethe in Given landsize, Mauritius, Seychelles, andMalawi of Tanzania populouscountries.the most are the Congo, SouthAfrica,the UnitedRepublic and population density. The Democratic Republic of SADC countries have largepopulationsorhigh Swaziland economies.the smallest are Many percent. Seychelles, Lesotho, and to 20 close GDP, followed byAngola, whichcontributes economy, contributingthe region’s half of about As illustrated infigure 7, SouthAfricathe largest is the relativethe economies size involved. of share ofeachmembercountry,to whichpoints the SADC countries. Figure 6illustratesthe GDP allow forthat evaluatingthe economic profile of Table recent 3presents availablethe most data SADC countries: The Asocio-economic 1.2 Note: Source: Figure 6 SADC: SouthernAfrican Development Community. ILO (2017). 0 10 20 30 40 50 60 70 overview

1991 1992 1993

1994 Evolution (percent) offemale inSADC, employment 1991–2015 1995 giutr nutyServices Industry Agriculture 1996

16 1997

1998 1999 2000 2001 2002 industry has shown a slight contraction.industry hasshownaslight the femalewhile share in ofemployment shifted away fromtowards agriculture services, womenhavethat the early2000s is onlysince foremployment women. it Figurethat 6shows SADC agriculturethe primarysource remains of As indicatedinbothfigure 5andfigure 6, in tradeinterplay between andwomen’s well-being. the SADC region,of withaspecial focusthe on the economicin-depth examination structure of access health care andmedications, which leads power parity. The poorareto adequately unable than US$1.90perday,less based onpurchasing Zambia), overthe populationlives half on of Lesotho, Madagascar, Malawi, Mozambique, and countries (Democratic Republicthe Congo, of the SADC region.issues in Insixof15member Poverty urgent the most remains oneof 2016). Latin Americaworldside(ISSC, IDS, andUNESCO, in sub-Saharan Africa countriesto only issecond the level ofeconomic inequality that estimated SADC countries withaGiniIndexbelow40. is It the UnitedRepublicand of Tanzaniathe only are Gini Indexes above 60. Mauritius, Madagascar, unequal countriesthe world,the most in with South Africa, Namibia, andBotswana are among to generateable political andsocial instability. which inequality isconsideredto be highenough value above 40isoftenthreshold beyond seenasa to 100(extreme equality) inequality). (perfect A used indicatorofinequality, ranging from 0 SADC countries. widely the most The GiniIndex is to beanissuefortends Income many inequality 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 15 2015 Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Table 3 Economic profiles of SADC member countries

Population GDP GDP per module Population density (billions of capita Poverty headcount ratio Gini Index (millions) (people per constant (constant (per cent of the population)a square km) 2010 US$) 2010 US$)

Angola 28.8 23.1 103.9 3,606.4 42.7 (2008) 30.1 (2008)

Botswana 2.3 4.0 16.6 7383 60.5 (2009) 18.2 (2009)

Congo, Dem. Rep. 78.7 34.7 30.5 387.4 42.1 (2012) 77.1 (2012)

Lesotho 2.2 72.6 3.06 1,387.5 54.2 (2010) 59.7 (2010)

Madagascar 24.9 42.8 10.4 415.8 35.8 (2012) 77.8 (2012)

Malawi 18.1 191.9 8.7 481.6 46.1 (2010) 70.9 (2010)

Mauritius 1.3 622.4 12.4 9,812.5 35.8 (2012) 0.53 (2012)

Mozambique 28.8 36.7 14.9 515.4 45.6 (2008) 68.7 (2008)

Namibia 2.5 3.0 14.9 6,020.9 61.0 (2009) 22.6 (2009)

Seychelles 0.09 205.8 1.3 13,963.6 46.8 (2013) 1.1 (2013)

South Africa 55.9 46.1 419.6 7,504.3 63.4 (2011) 16.6 (2011)

Swaziland 1.3 78.1 5.3 3,911.4 51.5 (2009) 42.0 (2009)

United Republic 55.6 62.7 46.7 867.0 37.8 (2011) 46.6 (2011) of Tanzania

Zambia 16.6 22.3 26.9 1,622.4 55.6 (2010) 64.4 (2010)

Zimbabwe 16.2 41.8 14.7 908.9 43.2 (2011) 21.4 (2011)

Source: World Bank, World Development Indicators database (accessed on 15 August 2017). Note: The data refer to 2016 unless otherwise specified. SADC: Southern African Development Community. a The poverty headcount ratio is the percentage of the population living on less than US$1.90 a day, based on 2011 US$.

Figure 7 Shares of SADC GDP by member country, 2016 (per cent)

Zimbabwe United Republic of Zambia Tanzania Angola

Swaziland

Botswana

Democratic Republic of Congo Lesotho Madagascar Malawi Mauritius Mozambique

Namibia South Africa Seychelles

Source: World Bank, World Development Indicators database (accessed on 16 August 2017). Note: SADC: Southern African Development Community.

9 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 10 Note: Source: in the low group. United Republic of Tanzania, andZimbabwe) are Malawi, Mozambique, Namibia, Swaziland,the nine countries (Angola, Lesotho, Madagascar, the mediumgroup;are in the remaining and Republicthe Congo, of SouthAfrica, andZambia) group; four countries (Botswana,the Democratic Mauritius)the highhumandevelopment are in two SADC countriesOnly (Seychelles and development (ranging fromto low). very high calculated are ranked andassignedalevel ofhuman the index, the 188countries is forthe HDI which and standards ofliving. country’s humandevelopment: education, health, three keythe stateof measures dimensionsofa The report’s Human Development Index(HDI) 2016 United NationsDevelopment Programme’s the region,development in aspresentedthe in Table 4presentsthe level ofhuman anoverview of SADC. acrossthe cause ofmorbidityandmortality tuberculosis. the leading These diseasesare now extreme poverty, suchasHIV/AIDS, malaria, and the spreadto ofdiseasesexplicitlylinkedto by investing inwomenandgirls). marginalized andvulnerable people(including gainsinwell-beingare sharedthat ensure with interventionto andinclusive economic growth progress inhumandevelopment requires policy ibbe05614Low Medium Low High Medium 154 Low Low 139 Low High Low 148 Low Low 119 63 0.516 151 0.579 125 Low Medium 181 Medium 64 170 0.541 158 160 0.666 0.782 0.531 0.640 Zimbabwe 108 150 135 0.418 Zambia 0.781 0.476 United Republic of Tanzania 0.512 0.497 Swaziland South Africa Seychelles 0.698 0.533 Namibia 0.592 Mozambique Mauritius Malawi Madagascar Lesotho Congo Dem. Rep. Botswana Angola Table 4 SADC: SouthernAfrican Development Community. Human Development Report Human Development UNDP (2016a). UNDP Country 18 As indicated in UNDP (2016a), AsindicatedinUNDP 17 According to the value of the value Accordingto of Human development intheSADC countries, 2015 Development Index (HDI) (UNDP, 2016a). Human (AfDB, OECD, andUNDP, 2017). depend oncommodity exports) that economies affected particularly that mid-2014 and2016(and affectedthat international markets between China); andsecond, adeclineincommodity prices countriesthe People's (especially Republic of the slowdowninemerging compounded by inadvancedslow economic growth economies two primaryfactors: of the result outcome is first, the 2017UNCTADstataccordingto database. This in2016, cent to 1.5 per in2010 cent from 4.2 per ratethe region growth steadilydeclined in faced aneconomic decline. The average economic 2008/2009 global financial crisis,the SADC region terms ofeconomic performance,In afterthe the Congo,the leadingsource are services exceptionthe Democratic of Republic of arethis module. examinedthat in theWith forthe 15SADCand services membercountries manufacturing, utilities, andconstruction), agriculture, industry (includingmining, Figure 9illustratesthe GDPshares of South Africa losses. experiencednet while Angola, Botswana, Swaziland, Malawi, and Republic of Tanzania recorded gains,the largest the SADC countries.the United Mauritiusand diversity ofwelfare gainsgenerated byeachof to 2016.2014 The figure illustratesthe wide the SADC countriesin percapitaGDP from Figure 8shows average rates annual growth (rank) HDI 19 , 20 development Level of human Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Figure 8 Average growth rate of GDP per capita, 2014–2016 (constant 2010 US$) module

-1

-2

-3 gola SADC An Congo, Malawi Zambia Lesotho Namibia Tanzania, Botswana Dem. Rep. Mauritius Seychelles Swaziland Un. Rep. of Zimbabwe Madagascar South Africa Mozambique

Source: World Bank, World Development Indicators database (accessed on 16 August 2017).

of economic growth for all SADC countries. in many countries of the region and is an The GDP share of services is even as high as important source of export revenue for Angola 84 per cent and 75 per cent for Seychelles and (oil and diamonds), the Democratic Republic Mauritius, respectively. Agriculture contributes of the Congo, Botswana, Zimbabwe, Namibia, a considerable share of GDP in the United South Africa, and Zambia. It is estimated that Republic of Tanzania (31 per cent) and Malawi about half of the world’s vanadium, platinum, (28 per cent) and continues to account for a large and diamonds, along with over one-third of the share as well in Madagascar and Mozambique world’s gold and about one-fifth of its cobalt, (over 20 per cent). Mining is a dominant activity come from the SADC region.21

Figure 9 Sectoral structure of economic activity, 2015 (share of GDP in per cent)

Agriculture Industry Services 90 80 70 60 50 40 30 20 10 0 gola An Congo, Malawi Zambia Lesotho Namibia Tanzania, Botswana Dem. Rep. Mauritius Seychelles Swaziland Un. Rep. of Zimbabwe Madagascar South Africa Mozambique

Source: SADC (2015b). Note: Malawi’s GDP shares refer to 2012 (the latest year available for this country).

11 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 12 secretariat weighing the countries weighing secretariat bypopulationlevels. PPP: purchasing powerparity. Note: Source: in the society,in the economy, the household. and situation ofdisadvantageto men) (withrespect gender bias,they are ina that whichmeans and across countries. Women frequently face canvarythat bothhistorically category constructed to menandwomen–isasocially a society characteristics, andbehaviours assignedby the notionof “gender” –re social values andsocia are in asystemofsocial shapedby that relations As explainedinModule1, aneconomy isembedded Genderanalysis oftheSADC region 1.3 women’s empowerment). framework genderequality and supporting gender-related inputs(i.e.the institutional and development andeconomic participation) outcomes (i.e. gender-based indicatorsofsocial include bothanevaluation ofgender-related profilesthe SADC countries. of These profiles the gender The following discuss sections economic significance. uncovering genderdisparitieswithpolitical and (or unpaid the productiveexamining andreproductive both economy asa “gendered structure,” whichmeans A relevant examine economic analysis an must typically face jobsegregation andwage inequality. and housework).the labour market, In women the lion’s share (i.e. ofunpaidactivities care work to beresponsibledecision-making for powerand Women are often foundto holdasymmetric important consequences forimportant competitiveness and patternsofgenderinequalities have AC––54693094747. 79.2 73.8 – 90.8 85.9 4,794 84.9 3,099 73.3 – 73.3 6.9 1,822 4,126 – 64.3 45.7 1,360 2,803 65.3 5.4 49.2 10,020 80.9 82.6 8.2 7.4 56.9 – 80.3 91.1 5,078 – 15,489 84.3 85.9 11,667 7.3 6.4 74.8 77.8 49.3 – 88.0 8,795 7.2 7,971 1,184 1,175 60.5 25,539 64.7 73.5 1,549 10.5 82.8 126 – 124 6.4 – 1,016 6.5 10,540 972 4,020 7,527 71.5 1091 10.2 75.1 4.6 9.5 0.540 0.526 2,631 6.9 5.0 5,073 137 – 6.1 16,050 761 90 2.5 8.8 5.3 3.8 13,278 – 108 6.7 0.566 599 SADC 9.5 7.0 – 0.394 139 Zimbabwe 82 145 – 8.1 0.474 Zambia -- Tanzania 9.2 132 United Republic of 0.574 4.0 0.380 0.614 Swaziland – South Africa 95 -- 0.549 Seychelles 153 Namibia Mozambique – 0.435 Mauritius 0.592 Malawi Madagascar Lesotho Congo, Dem. Rep. Botswana Angola Table 5 The aggregate values forthe SouthernAfrican Development Community (SADC) havethe UNCTAD beencalculated by UNDP (2016a). UNDP Country 23 ) spheres of the economy) spheres of l institutions. C Inequality Index (GII) Gender .4 2 . . ,5 ,7 9991.1 89.9 2,576 2,359 6.2 5.4 129 0.544 25 ferring to ferring The obstacles The Indicators ofgender inequalities, 2015 Inequality Index (GII) Gender (Rank) onsequently, the roles, 24 and and eaeMl eaeMl eaeMale Female Male Female Male Female 22

of schooling Mean years market participation rate participation formarket womenandmen. and (c)economic activity, the labour measured by insecondaryattainment and highereducation; share ofparliamentary seatsheldbywomenand rates;birth empowerment, (b) the measured by measured andadolescent bymaternal mortality three dimensions:in (a)reproductive health, evaluatesIndex (GII) gender-based inequalities Report presented inUNDP’s inequalities forthe SADC countries, whichare Table 5presents somekey indicatorsofgender ofmen’s87 per cent humandevelopment level. onaveragethat estimates womeninAfrica attain still pervasive inAfrican countries. The report 2016 Programme’s the UnitedNationsDevelopment As discussedin 1.3.1 Gender-related outcomes development isnegatively impacted. gender inequalities become more severe, human when that (2016b)finds development. UNDP to promoting andiscriticalhuman right human reforms. Removing genderinequalities fulfillsa advantage” (aswage workers)trade under (as producers) and “sources ofcompetitive advantage”competitive of of “under-achievers the doubleroleModule 3, to play tend women and productivity. Infact, asexplainedin observed insub-Saharanobserved countriesthe isamong of genderequality. The level ofgenderinequality to zero, is the GII The closer the degree the higher (UNDP, 2016b), genderinequalities are (UNDP, 2016a). The GenderInequality Africa Human Development Report Report Africa HumanDevelopment national income (in 2011PPPUS$) Estimated gross per capita 2016 Human Development 2016 HumanDevelopment 26 participation rate Labour force ages 15-64) (per cent, 27

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b highest in the world, trailing only the Middle East Table 6 provides an indication of the numbers and North Africa. Among the SADC countries for and percentages of men and women employed

which this indicator is available, the GII is especially in the informal sector (related to non-agricultural module high in the Democratic Republic of the Congo, employment) in those SADC countries for which Lesotho, Malawi, Mozambique, and Swaziland (all data are available.29 Informal employment of which are in the low human development group). constitutes a relatively small share of total In contrast, based on the GII, Mauritius, Botswana, employment in Mauritius and South Africa. In and South Africa have the least gender disparity contrast, in Lesotho, Madagascar, the United in the region. UNDP (2016b) estimates that there Republic of Tanzania, Zambia, and Zimbabwe, is an inverse relationship between the GII and informal employment constitutes a large HDI; as gender inequalities worsen (as measured percentage of total employment. In Lesotho and by an increase in the GII, human development (as the United Republic of Tanzania, the female and measured by a decrease in the HDI) declines.28 male shares are quite similar, while in Madagascar, Zambia, and Zimbabwe women’s employment As indicated in table 5, there are important in the informal sector is well above that of men. disparities in education, per capita income, and Data on informal employment are not collected labour force participation rates between men and regularly, which explains why complete and women in the SADC countries. When looking at updated figures are unavailable. It is estimated, the number of years of education for persons 25 however, that most individuals working in the and older, on average women are disadvantaged. informal sector in the SADC region are women Women’s mean years of schooling are well below (Mirand, 2015). This may be due to a lack of skills men’s in the Democratic Republic of the Congo and education, women’s unpaid responsibilities, and Mozambique. School attainment is higher for or simply the inability of women to access other women only in Lesotho, Madagascar, and Namibia. job opportunities. As noted in the SADC Advocacy In all member states, men’s estimated GNI is Strategy on Informal Cross Border Trade (ICBT), the higher than that for women. In the SADC region, on informal economy essentially constitutes a safety average, per capita male GNI is about 55 per cent net for the unemployed in the region (SADC, 2011). higher than the corresponding figure for women. Many countries in the SADC region have no legal or Based on data reported by the UNDP’s 2016 Human policy frameworks targeting the informal economy. Development Report, the percentage difference When measures are present, they fail to address the between men’s and women’s GNI in SADC countries specific needs of women and the gender relations ranges from 9 per cent in the United Republic of at stake (Mwaba, 2010; Steyn, 2011). This leaves Tanzania to 142 per cent in Mauritius. women exposed to sexual harassment and abuse. With regard to labour force participation rates, the In addition, women in the informal sector (e.g. gender difference in the region as a whole is quite street vendors and cross-border traders) typically limited (about 5 per cent), but there is considerable have less access to finance than men. In turn, this variability across member countries. The lowest prevents women from being able to expand their female labour force participation rates are in businesses, which contributes to perpetuating Swaziland (45.7 per cent), South Africa (49.2 per gender disparities. Women in the informal sector cent), and Mauritius (49.3 per cent). In contrast, in often also lack proper infrastructure (e.g. roads, Madagascar, Mozambique, and the United Republic toilets, garbage collection, water and sewage), of Tanzania and Zimbabwe, the female participation which impacts their economic activities, health, rates in the labour force exceed 85 per cent. and rights (Mirand, 2015).

Table 6 Informal employment, by sex Persons employed in the informal sector Country Sex Number Per cent of non-agricultural employment Female 94,000 48.1 Lesotho (2008) Male 131,000 49.9 Female 528,000 63.8 Madagascar (2005) Male 365,000 40.7 Female 14,000 6.7 Mauritius (2009) Male 43,000 10.6 Female 922,000 16.8 South Africa (2010) Male 1,303,000 18.6 United Republic of Tanzania Female 1,006,000 49.8 (2005/2006) Male 1,347,000 53.2 Female 357,000 70.3 Zambia (2008) Male 497,000 60.9 Female 360,000 53.1 Zimbabwe (2004) Male 338,000 31.2 Source: ILO (2012).

13 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 14 wage equality, andanarrowing gender gapin in women’s estimatedearnedincome and improved several ranks ofprogress asaresult in parliamentary positions. Mozambique earned income,the number ofwomen and women’s labour force participation, estimated to progressto ahigherpositiondue inclimbed Source: For example,the rankingthe SADC countries of when compared basedongenderdisparities. constructed. This also holdsfor SADC countries to beaware iscritical it ofhow indicatorsare are usedforthat the evaluation.indicators Thus international ranking variesthe dependingon isevaluated,that or economic aspect the that,to note isimportant forIt any social countries, however, ground. lost 2017,the global ranking. moving upin Many countries madeprogress between2006and region.the GGGI, Accordingto afew SADC the genderdisparitiesin have the highest rankings,havethe lowest they meaning high, whileAngola, Swaziland, andMauritius South Africa, andMozambique rank relatively calculated).the GGGI, Accordingto Namibia, countries forthe indexis which the 144 of countries range between13thand123rd (out 2017 GGGI,the rankings ofSADC member the GII;thethan basedon basedon GGGI comparatively betterrankingthe basedon As shownin Table 7, SADC countries have a d c b a ot fia1 19 … 13 18 … 38 Swaziland South Africa Seychelles Namibia ibbe7 50 … 68 76 … 24 Zimbabwe Zambia United Republic of Tanzania artu 8112 101 73 80 46 ... 123 88 81 43 84 34 96 … Mozambique Mauritius Malawi Madagascar Lesotho Congo, Dem. Rep. Botswana Angola

Gender GapIndex. Mozambique wasthe includedin WEF ranking asof2007, soitsranking of128countries isout the 2007Global examined by Rankings are out of the 144countriesRankings of are examined out by WEF (2017). Swazilandthe isincludedin WEF ranking asof2011. the 115countriesRankings of are examined out by WEF (2006). Table 7 Compiledthe UNCTAD by basedondatafromthe secretariat World Economic Forum’s Global GenderGapIndex(WEF, 2017). d c onr GlobalGenderGapIndex Country Global GenderGapIndex, 2006and2017 31 Namibia 2006 ranking 329 43 105 … (WEF, 2017). education enrolmenttertiary secondary and and (4)political empowerment. educational attainment; (3)health andsurvival; andopportunity;(1) economic participation (2) them calculated usingmultipleindicators:each of (WEF) since2006andisbasedonfour categories, the has beencalculated by World Economic Forum the GII.Index (GGGI)isusedinplaceof The GGGI changes (even radically)the Global GenderGap if at national andregionalat levels. implementation ofSADC gendercommitments to support,aimed coordinate,the andsupervise in1998 the GenderUnit the establishment of genderequality.to support Towardthis end, promote cooperation amongmemberstates and Development in1997,to whichaimed the SADC Declarationadoption of onGender This commitment was followedthe by ofSADC.the objectives is oneof the processgender inofcommunity building mainstreamingthat adopted in1992states sensitive community.the SADC 5of Article Treaty the creation ofagender-to commitment process, SADC membershave shownastrong the integrationthe earlystagesof Since 1.3.2 Gender-related inputs a 2017ranking 30 32 b

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Box 1 Time-use surveys

As mentioned in Module 1, time-use surveys collect information on the time spent on unpaid work (i.e. housework module and care work) versus paid work by individuals in a society, taking into account their socio-economic characteristics (e.g. gender, level of income, location, etc.). Time-use surveys provide additional information with respect to conventional surveys, aiming – in the intention of the researchers carrying out these surveys – to induce policymakers to allocate public budgets in ways that help address gender disparities. In addition, time-use surveys help assess how much unpaid work is involved in daily life. Unpaid work is critical for household and community welfare, but it is socially undervalued because it is not monetarily compensated.

Time-use surveys are still not widely available but are growing in number. In the case of SADC countries, these surveys are available for Madagascar, South Africa, and the United Republic of Tanzania. Box table 1.1 reports the daily number of hours spent on paid and unpaid activities by men and women based on the most recent time-use surveys carried out in these countries. Consistent with the typical pattern observed in most countries, women are less represented than men in the formal paid sector, but they carry out the lion's share of unpaid work. In addition, in all three countries – as widely observed in other countries as well – women work more hours per day than men.

Box table 1.1 Hours spent on paid and unpaid activities by men and women Men Women Area Age Survey Year Paid work Unpaid Paid work Unpaid availability (hours work (hours work per day) (hours per per day) (hours per day) day)

South Africa National 15-64 2005 and later 2010 4.267 1.533 2.167 3.817

Rural 6-65 1995–2004 2001 6.000 0.667 4.000 3.500 Madagascar Urban 6-65 1995–2004 2001 4.833 0.917 2.917 3.750 United Republic National 5+ 2005 and later 2014 5.700 1.067 3.250 3.967 of Tanzania Source: United Nations Statistics Division time-use data portal (unstats.un.org/unsd/gender/timeuse/index.html).

The 2003 Regional Indicative Strategic single binding document that also focuses on Development Plan (RISDP), which spelled out how gender inequality manifests itself in the the priorities to be addressed in the process of region (Munalula, 2011). Among the objectives of regional economic integration, cited gender the protocol are deepening regional integration, as one of the key issues to be addressed to attaining sustainable development, and reduce poverty and improve standards of strengthening community building (Article 3(f)). living. According to the RISDP, this commitment Therefore, gender equality and the elimination required mainstreaming gender in all sectoral of gender-based discrimination are deemed to policies, programmes, and activities at national be instrumental in reaching these objectives. and sub-regional levels. Article 4 of the protocol states the obligation for In order to support women’s empowerment member countries to enshrine gender equality and the elimination of gender discrimination, in their constitutions and ensure that those the SADC countries signed the SADC Protocol on rights are not compromised by any provisions, Gender and Development in 2008, which entered laws, or practices. Considering that in many into force in September 2012.33 The protocol SADC countries civil law coexists with customary has a number of major objectives, namely to law, and the latter in most cases limits women’s empower women, eliminate discrimination, rights, the call to give priority to constitutional and achieve gender equality through the rights over other laws and practices is of special development and implementation of gender- importance. In recognition of the barriers women responsive legislation, policies, programmes, face to fully participate in economic and social and projects (Article 3(a)). It calls on member life, Article 5 instructs member countries to put states to harmonize the implementation of in place special measures. regional, continental, and global instruments on gender equality to which they are parties The protocol includes specific articles (Article 3(b)). This implies moving from non- addressing women’s economic empowerment, binding commitments taken in the framework access to property and resources, and access of different declarations and covenants to a to employment and benefits. Article 17 on

15 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 16 targets of the protocol.targets of the membercountriesthe 28by inachieving trackingthe progresshas beenannually made Since 2009,the SADC GenderProtocol Barometer trade.documents on the genderreferencesof all foundthe SADC in women. to both men andtreatment and opportunities environments andguaranteeing equal issues bycreating gender-responsive working and policiesaddressing genderinequity integrating inlegislation agenderperspective trade,With regardto are itsmainobjectives the region. inallperspective decision-making in entailsstrategy integratingthat agender Gender mainstreaming isacomprehensive gender equality inall fields,trade. including Mainstreaming Strategyto achieve greater In 2008, SADC also adoptedaGender changer. the precondition forthe protocolto beagame the economywomen andmeninsociety is sets. Indeed,the role anewway of oflookingat the protocol also onachangeinmind- of but onlyonfaithfuldepend not implementation better women’sthe SADC lives region in will approachthe protocol, of however,to changes 2011).the innovative Despite andambitious region,the protocol (Munalula,to solve it aims the iswidespread in that of humanrights Since genderinequality represents aviolation and reflected inpoliciesandprogrammes. the developmentmainstreamed process in Accordingly, humanrights shouldbe is arights-based approachto development. The overarching approachthe protocol of discrimination.employment occupational segregation andall forms of ensure equal payfor equal workanderadicate mandatesmembercountriesemployment to modern andaffordabletechnology. 19on Article womenandmenhavetothat access mandates to water, credit, capital,training. and also It and girlsregarding landrights andaccess women to all discriminationagainst an end andresourcesto property access mandates gender-responsive 17(2)). (Article 18on Article and entrepreneurshipto makethem policies to reviewtradecalls national uponmembers over productive resources. Interestingly, also it economic resources andcontrol andownership togive womenequal rights andopportunities the necessaryreformscountries to undertake to economic mandatesmember empowerment perceived. Additionally,the SADC Gender and groupthe region have ofmenandwomenin arepresentativethat trackkeepthe changes of Citizen Scoreto Card tool hasbeenusedasa 34 Box 2provides ahistorical account 35 Towardsthis goal, a Mozambique. in Parliament: SouthAfrica, Namibia, and numberofwomenthe highest the worldwith three SADC countriestop 20inthe are among the share ofwomeninParliaments,based on which provides aclassificationof193countries According tothe Inter-Parliamentary Union, the realmnotably in ofpolitical participation. status ofwomeninSADC membercountries, notable progress hasbeenmaderegardingthe gender reforms. 20years,the last In some havemost developed genderpoliciesand Forms ofDiscriminationagainst Women, and the Conventionthe EliminationofAll on the SADC region. applied neitherconsistently norcoherently in gendermainstreaming isthat concluded tradetargets in policies. Asof 2017, canbe it the SADC’stime genderpolicyincludes gender to amarginal degree,only the same whileat the SADC’strade policyisgender-mainstreamed byvanreported der Vleuten andHulse(2014), in June2017. and Reporting Framework, whichwas adopted been provided withaMonitoring, Evaluation Goals in2015. The updatedprotocol hasalso the expirationthe MillenniumDevelopment of forthe achievement ofdevelopment goals after platforms were established asanewframework Review,the Africa and Agenda2063.three All Development Goals,the BeijingPlus Twenty 2030 Development AgendaanditsSustainable protocol wasthe United Nations’ aligned with of the Congo. the Democratic (upperhouse)in cent Republic per house)and4.6 (lower percent and 8.95 inMauritius, percent seats inBotswana, 11.6 ofparliamentary cent women onlyhold9.5 per average cent, insub-Saharan Africa of23.8 per aworldaverageAgainst andan of23.6 percent policy-making, isvery low. participation actual Protocol refersto women’s in participation policy measures. For example,the Gender while coordination amongall relevant authoritiesand and insufficient ofand participation availability ofgender-disaggregated statistics, and skillsongenderanalysis, inadequate SADC. The studyhighlighted limitedknowledge of flaws concerning gendermainstreaming in Centre (Shayo, 2012), however, revealed aseries the African by A studyconducted Trade Policy 2015 SADC GenderProtocol). The protocol was updatedin2015(thePost- towards attaininggenderequality. to measure progressof multipleindicators in 2011. iscalculated basedonabasket It Development Index(SGDI)was introduced 38 40 39

All SADC countries have ratified trade,With specificregardto as 37 The updated The 36

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Box 2 Gender references in SADC documents on trade

Document References to gender module

1996 Protocol on Trade No reference to gender. (binding)

1997 Declaration on “Promoting women’s full access to, and control over productive resources such as land, Gender and livestock, markets, credit, modern technology, formal employment, and a good quality of Development LIFE²(III .OSPECI½CREFERENCETOTRADE (non-binding)

2003 Regional “The other challenge [for SADC trade policies] is in developing new policies and strategies Indicative that would target vulnerable groups such as the rural and urban poor, small businesses, Strategic informal operators and women to ensure that they take advantage of the policies” (2003: 25). Development [Trade policy] “At the same time cross-cutting issues such as gender, HIV and AIDS, Plan; sections information and communications technology, statistics and science and technology will on trade be mainstreamed into all areas of focus” (2003: 65). (non-binding policy “Target 6. Increase the share of credit accessed by women and SMEs to at least 5 of total guidelines) private sector credit by 2008” (2003: 67).

“By 2015, ensure equal participation of women and men, in policy formulation and implementation of economic policies” (Article 15.1).

±ADOPTPOLICIESANDENACTLAWSWHICHENSUREEQUALACCESS BENE½TANDOPPORTUNITIESFOR 2008 Protocol women and men in trade and entrepreneurship, taking into account the contribution of on Gender and women in the formal and informal sectors” (Article 17.1). Development (binding) “...review their national trade and entrepreneurship policies, to make them gender responsive” (Article 17.2).

±INTRODUCE MEASURES AND ENSURE THAT WOMEN BENE½T EQUALLY FROM ECONOMIC opportunities, including those created through public procurement processes” (Article 17.3). Source: van der Vleuten and Hulse (2014: 177)

“State Parties shall ensure equal participation of women and men, in policy formulation and implementation of economic policies” (Article 15.1).

“State Parties shall ensure gender sensitive and responsive budgeting at the micro and Post-2015 SADC macro levels, including tracking, monitoring and evaluation” (Article 15.2). Gender Protocol “State parties shall review their national trade and entrepreneurship policies to make (binding) them gender responsive” (Article 17.2).

“State Parties shall, in accordance with the provisions of special measures in Art. 5, develop STRATEGIESTOENSURETHATWOMENBENE½TEQUALLYFROMECONOMICOPPORTUNITIES INCLUDINGTHOSE created through public procurement processes” (Article 17.3).

Source: UNCTAD secretariat. Note: SADC: Southern African Development Community.

17 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 18 Note: Source: economic potential inon-farm andoff-farm 3, genderinequalities mayhinderwomen’s multifaceted aswell. AsdiscussedinModule trade ofgenderinequalities on is The impact both across andwithincountries. of menandwomeninagriculture, varythat and the economic roles shape cultural that norms complicated bysocio- The analysis is further they operate. andmarkets inwhich sub-sectors women,the specificagricultural dependingon liberalization mayalso vary across subgroups of their source ofincome.lose The effectstrade of trade liberalization,therefore and they may to facebe unable stiffer competition following from cheapimports, asproducers, but they might products. Asconsumers, womenmaybenefit as consumers andproducers ofagricultural if, for example,their roles womenin onelooks at the effectstrade of liberalization maybeopposite the economy.can playin that Module2explains morethe different complex by women rolesthat trade of liberalizationgender impact ismade the economy. of to all othersectors does it The gender equality. to agriculture as This applies onwomen’snegative impact well-beingand havepolicies donot aclear-cut positive or As indicatedin Volume 1,trade integration Trade andgender inthe 2 c b a AC1. 99 43.5 54.8 67.5 6.1 22.0 29.1 29.96 (2015) 4.1 7.4 75.0 11.72 51.71 69.9 39.6 74.2 25.7 12.67 35.52 65.3 12.5 4.2 27.43 81.45 13.4 5.3 32.06 23.17 82.68 10.39 31.74 6.1(2014) 2.4 2.15 SADC 6.7 2.3(2014) Zimbabwe 2.84 0.07 Zambia 3.5 25.2 Tanzania 29.5 United Republic of Swaziland 5.7 25.6 South Africa Seychelles Namibia 2.4 Mozambique 8.2(2001) 20.6 Mauritius Malawi Madagascar Lesotho Congo, Dem. Rep. Botswana Angola

Data fromthe ILO (2017)categoryfor “share inagriculture, ofemployment forestry, hunting, andfishing.” raw materials” (SITC 2less 22, 27and28). basedon SITC,trading andproduct partner Rev. 3; Agriculture covers categories “All food items” (SITC 0+1224)and “Ag Data fromthe UNCTADstat database:trade Merchandise groups, matrix–product exports,trade Merchandise 1995–2015; by Data fromthe World Bank’s World Development Indicators(accessedon25April2017). Table 8 agricultural sector agricultural SADC: SouthernAfrican Development Community. Calculations byUNCTADtable footnotesthe basedondatafromthe sources below. citedin Country (percent ofGDP) Agriculture The role of agriculture inSADC (percent) countries role ofagriculture The 05Aeae vr21–052017 Averageover2013–2015 2015 114.066.9 43.80 31.1 a (percent ofmerchandiseexports) Agriculture economic growth, well-being, andsocial stability. hasastrongthis sector effect onfood security, employment. Therefore,the performance of total of percent merchandise exports, and44 the GDP, of cent of cent 12.5 per roughly 30 per table 8,in agriculture accounts for anaverage of economic relevancethe SADC region. in Asshown The agricultural isofmajorsocial and sector intheSADC region Agriculture 2.1 inequalities). of rural women(i.e.trade how affects gender and regional integration the employment on the SADC’s of impact expected agriculturaltrade trade inagriculture). alsothe exploresThe section countries (i.e. howgenderinequalities affect agriculturaltrade potential ofSADC member specific constraintsthe andinequalities impact the regionof agriculture andonhowgender- in region. The focusthe gendered structure ison the agriculturalthe SADCand genderin in sector tradethe interplay exploresThis section between agri-businesses. advantage” for labour-intensive, export-oriented gender inequality into a “source ofcompetitive competitiveness,source ofexport turning low-cost female labour canalso become a of competitive advantage.”the otherhand, On activities,turning womeninto “underachievers b (percent oftotalemployment) Employment inagriculture ricultural c Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

The availability of adequate food at all times now faces a serious problem of food security. is a major issue for southern Africa due to To address it, Africa’s trade policy in agriculture

poverty, health (especially chronic diseases), and needs to be reconsidered, and more investment module adverse climatic conditions, especially heavy in the sector is required. Foreign direct rain and drought, which have been made more investment (FDI) may contribute to solving the intense and recurrent by climate change. About problem if the right conditions are in place, 40 million people – over 20 per cent of the SADC such as engagement with the interests of local rural population –– are estimated to suffer from communities and not only with the local elites food insecurity.41 Of this number, more than 20 (Cotula et al., 2009). million people were estimated to need urgent assistance in 2016.42 2.2 The gender structure of agriculture in the SADC region As is typical in Africa, most food producers in the SADC region are small-holder farmers, who are Table 9 shows the average share of male and especially vulnerable to two major challenges female employment in the agricultural sector affecting global food markets: climate in the SADC region, calculated as a share of change, and the concentration of agricultural men’s and women’s total employment, for the production in the hands of large agribusinesses. period 2001–2008 (before the SADC Treaty) Rising temperatures and the unpredictability of and 2009–2016 (after the treaty). In most rainfall have already been affecting sub-Saharan SADC countries, the share of employment in Africa, and those problems are expected to agriculture has shrunk in recent years for both worsen in the coming years. Southern Africa is men and women.43 In the region, agriculture especially vulnerable to climate change, as close tends to be female-dominated: women’s share to 80 per cent of the population in the region of employment is 57 per cent, higher than lives in rural areas and depends on agriculture the men’s share of 46 per cent. This general for their livelihood (ESAFF, 2014). For their part, trend, however, conceals differences among large agribusinesses are capital-intensive (and, SADC member states. In some countries, the therefore, less favourable for employment agricultural sector appears rather male- creation than small-holder farmers) and tend intensive; this is the case for Botswana and to be ecologically unsustainable. Nonetheless, Lesotho. On the other hand, in the Democratic they dominate global food markets and have Republic of the Congo, Swaziland, Malawi, contributed to making sub-Saharan Africa a Mozambique, and Zambia the female share is net importer of food. As a consequence, Africa well above the corresponding male share.

Table 9 Male and female shares of agricultural employment, average for 2001–2008 versus 2009–2016 (per cent) Female Male

2001–2008 2009–2016 2001–2008 2009–2016 Angola 14.06 9.38 1.69 0.75 Botswana 17.15 21.46 29.01 32.69 Congo, Dem. Rep. 79.19 77.13 59.34 56.81 Lesotho 41.28 28.93 64.36 50.93 Madagascar 80.38 78.05 79.47 75.15 Malawi 82.62 80.75 62.52 59.12 Mauritius 7.90 5.89 10.89 8.04 Mozambique 85.88 85.44 65.94 64.32 Namibia 29.78 29.20 35.01 31.33 Seychelles - - - - South Africa 6.39 3.46 10.57 6.57 Swaziland 45.99 43.99 10.23 8.71 United Republic of Tanzania 79.03 72.80 73.38 66.74 Zambia 80.41 70.36 65.25 48.78 Zimbabwe 77.28 71.78 61.07 62.91 SADC 59.29 56.93 49.58 46.42

Source: ILOSTAT database (accessed on 25 April 2017). Note: Figures are not available for Seychelles. For the resolution concerning statistics on work, employment, and labour underutilization adopted by the 19th International Conference of Labour Statisticians in Geneva in October 2013, see http://www. ilo.org/global/statistics-and-databases/standards-and-guidelines/resolutions-adopted-by-international-conferences-of-labour- statisticians/WCMS_230304/lang--en/index.htm.

19 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 20 opportunities. InZimbabwe, rural womenmake healththeir economic andaconstraint to Section 2.3, this represents to a threat women’s than men.longer hours Aswillbediscussedin into account, onaverage womenendupworking a result,taken ifbothpaidand unpaid workare unpaidcarewomen also work. perform most As or undervalued. Moreover, asdiscussedinbox 1, agriculturalthe SADC isoften workin unpaid households. Accordingto Oxfam (2015), women’s which tendto be poorer than male-headed offemale-headedlarge proportion households, As explainedinbox 3, southernAfrica shows a in subsistenceproduction assmall-scale farmers. agricultural workers have beenmainlyemployed Traditionally, insouthernAfrica, female average global genderyieldgapbetweenmen in yields(kilograms perhectare). In2011,the between male andfemale farmers ismeasured competitive (Oxfam, 2015). The gapinproductivity counterparts,turn making womenless in their male than to belessproductive tend unpaid work, female farmers inSADC countries the lion’sto holding agriculture and share of to over-representationIn addition insubsistence andthe gender gap inagriculture The 2.3 Note: Source: DEFACTO THEHOUSEHOLDCANBENE½TFROMREMITTANCESTHATCOMPE than male-headedhouseholds.However,whenthemaleheadisabsentduetomigration(female-headedhouseholds often disproportionatelypoor.Female-headedhouseholdslackmaleworkersand,asaresult,arelessproductive Southern Africacountriestendtohaveaverylargeproportionoffemale-headedhouseholds,andthosehouseholdsare regular ortemporarybasisifthemalepartnerisonlytemporarilyabsent. two women–andthewomanisconsideredhouseholdhead.Moreover,canbeheadsona households wheretheonlyadultisawoman,ortherearetwoadults–manand As explainedinModule1,female-headedhouseholdsmayincludedifferentsituations:aone-personhousehold, Box 3 oabqe36 25 29 25 Zimbabwe Zambia United RepublicofTanzania Swaziland Namibia Mozambique Malawi Madagascar Lesotho Congo, Dem.Rep. Angola Box table 3.1 Datafor Botswana, Mauritius, Seychelles, andSouthAfrica available. are not drivers ofthatgapdrivers World Bank(2017). onr Percentshareoftotalhouseholds Country Share ofhouseholdsthatarefemale headed(percent) Female-headed households fruit production inSouthAfricafruit (FAO, 2011a). the employeesindeciduous of cent and 53 per in vegetable andflowerproduction inZambia, foundto constitute 65 per the employees of cent in sub-Saharan Africa. For example, womenare the high-value agricultural commodity chains women, inmany whodominateemployment of create off-farm for opportunities employment production ofcommercial cropsto hasbegun are wage earners. The increase inexport-oriented unpaid workers, ofwomen cent andonly0.4 per are percent agriculture are self-employed, 7.8 of Tanzania, ofwomenworkingin cent 72.4 per family workers (FAO, 2017).the UnitedRepublic In the agricultural womenin are sector most unpaid the majorityofsmall-holder farmers,up and women employed in agriculture in the region.women employedinagriculture in sharethe significant the SADC of becauseof in “gender agricultural gap,” important are particularly the agricultural sector, collectively referredthe to as The multipledimensionsofgender disparitiesin agricultural (FAO, sector 2011b). the to widespread genderdiscriminationin due counterparts,the productivity gapismainly as farmers asefficienttheir male canbejust as However, femalethere isstrongthat evidence (FAO, percent 2011a). and womenreached 25 NSATEFORTHELACKOFTHEMALEWORKFORCE 48 44 36 22 27 41 31 44

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Gender biases are still rooted in customary law products because women lack secure access and cultural behaviours in the SADC countries, to productive resources and cannot guarantee

and they contribute to limit women’s access to delivery of a reliable flow of products (FAO, 2011a). module key inputs and resources such as land, credit, 2.3.2 Work burden and training. As far as employment is concerned, rural women in SADC suffer from occupational Numerous studies highlight that one major segregation in the agricultural sector. While most source of gender inequality in the agricultural are still concentrated in subsistence agricultural sector is the disparity of the work burden between and unpaid family work, trade liberalization men and women. Due to patriarchal norms and has led to an increase of wage employment the gender division of labour, rural women in opportunities for women in agriculture. However, the SADC are responsible for most housework, these jobs are often low-paid, require few skills, from taking care of children and the elderly to and offer no or little possibility of advancement collecting water and sources of fuel. As a result, and promotion. This section examines the main on average women work longer hours than men sources of gender inequalities in the agricultural and this leaves them little time to rest, seriously sector of SADC member states. undermining their health conditions and limiting 2.3.1 Land control their economic opportunities. In many rural areas, women’s work burden is aggravated by The main obstacle faced by female farmers is the poor conditions of infrastructure and public limited access to land. In fact, in many SADC services. In the United Republic of Tanzania, poor countries women own or manage less than a infrastructure and limited provision of public quarter of the total amount of agricultural land services require women in rural areas to spend (Oxfam, 2015). Women’s access to land is often long hours getting water and fuel, preparing constrained by legal provisions that consider food, and taking care of other domestic and women as minors, and therefore not entitled childcare activities (FAO, 2011b). to possession of property. This was the case in Botswana, where in 1993 only 36 per cent 2.3.3 Access to credit and inputs of farm holders were women. Although the law was amended in 1996, progress still needs Women in agriculture are also disadvantaged to be made in changing the culture of rural in their ability to access credit. Overall, women communities in order to grant women and obtain only 10 per cent of the agricultural men equal access to land. Since most women credit offered to small-scale farmers in Africa do not own land, they experience significant (Oxfam, 2015). In southern Africa, access to credit difficulties in their agricultural activities due to from commercial banks is a challenge for most lack of capital to purchase the needed inputs and rural women. The causes of limited access to lack of collateral to present to banks and other financial aid are often rooted in gender-based financial institutions to get loans. For example, in discrimination. Since women are sometimes Botswana women are subject to discrimination regarded as minors by local law, they might when applying for government programmes need their husband’s or male next of kin’s because the applicant must own the land in order authorization in order to obtain a loan. In addition, to benefit from those programmes (Botswana the difficulties associated with the paperwork Ministry of Agriculture, 2008). may be intimidating to women who have little education. Even when this is not the case and In Zimbabwe, the government implemented a women could potentially be entitled to credit, the land redistribution policy in the early 2000s with fact that they often lack collateral (due to limited the aim of addressing racial inequalities in land access to land and stable income) prevents them ownership caused by colonial rule. However, only from being able to borrow money. The difficulties 8 per cent of the total population who benefited in accessing loans have a significant negative from the distribution were female. Today, in impact on the empowerment of rural women Zimbabwe women constitute 18 per cent and in the SADC, as the lack of capital contributes to 12 per cent of small-holders and commercial their segregation in subsistence agriculture and farmers, respectively (FAO, 2017). low-paid, low-skill wage employment. Moreover, Shortcomings in women’s right to land ownership the lack of capital undermines female farmers’ constitute a major challenge for rural women productivity, since they have little possibility to and often prevent them from benefiting from purchase farm inputs such as pesticides and new export opportunities created by trade fertilizers. In Malawi, maize yields are from 12 to liberalization. For example, as far as non-traditional 19 per cent higher in men’s plots. However, when agricultural exports are concerned, women as part of a programme women were given an farmers are often excluded from contracts with equal amount of fertilizer, they were able to agro-industrial firms for the delivery of high-value achieve the same yields (FAO, 2011a). The gap in

21 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 22 2.3.4 Educational 2.3.4 attainment and the wrongtime (ONE at Worldit Bank, 2014). lower-quality fertilizer, incorrectly, applyit oruse of Tanzania femalethat farmers suggests use inputs: empirical researchthe UnitedRepublic in those the qualityto inputsalso of concerns access to formal markets, informal cross-bordertrade and Paciello, 2010). Becauseof limitedaccess to controlthey generatethe income (Fontana their production and prices fortheir workand to receivethe ability ofwomenandmen fair Gender-differentiatedto markets affects access their business.the size of the rangeboth ofproducts womencanselland perishable goods.turn, In this constraint limits losses,cause significant trading especially when to storageby reduced access facilities, whichcan fortheir products. These issuesare compounded prices the best to seek long distancesinorder time constraints, womenoften avoidtravelling trade or by market officials. Moreover, their to due (e.g. bicycles), andhaveto cope withharassment transportation meansof to usecertain allowed For example, womeninmany countries are not to bothinternationalaccess anddomesticmarkets. to genderbiases,Due to havetend limited women Accesstomarkets 2.3.5 and DiBattista, 2014). for cent men)(Osorio,women and49 per Percic, for cent headed households,the share is55 per cycle, ofmen(inmale- cent comparedto 40 per havetheir primaryeducation completed not of female workers infemale-headed households the UnitedRepublicIn of Tanzania, cent 67 per for womenandfive yearsfor men(FAO, 2011a). years. InMadagascar, ratiothreethat years is male counterparts have five least completed at two yearsofschooling,their of whereas most by men, female farmers have attained onaverage produce 25 perthan householdsheaded less cent In Malawi, where female-headed households into differences inagricultural productivity. translateschooling betweenmenandwomen than male-headed households. Differences in households showlowerlevels ofeducation inruralparticularly areas. Overall, female-headed also basedonhouseholdheadship, beobserved of men. Genderdisparitiesineducationcan percent areas are illiterate,to 14 asopposed Tanzania, ofwomenlivinginrural percent 39 male counterparts.the UnitedRepublic In of ratestheir andfewerthan yearsofeducation In SADC,to have ruraltend lowerliteracy women andescapepoverty.better labour opportunities to access the ability ofhouseholds determining Education playsafundamental role in for income andfood security. to provideoftenthe onlyoptions becomes oneof 2.4 The impact ofthegender gap agricultural impact The 2.4 on hourlywages) (Fontana andPaciello, 2010). Africathe corresponding figure is16 per (based cent onmonthlymen (based wages), whereas inSouth of Tanzania, rural womenearn31 perthan less cent than men(FAO,less 2011a).the UnitedRepublic In same functions, however, womenare often paid fruit. Eventhe whenwomenandmenperform such asharvesting, slicing, grading, andpacking to besegregated inlow-value-addedtend activities, hand,to widespread genderbiases, due women (and consequently low-paid) jobs. the other On the relegation ofwomeninlow-skilled this causes and literacy ratesthose ofmen,than are lower and one hand, asstatedabove, their educationlevels than men. to earnless ruralthe tend On women the labour isincreasing, market in participation ofmen. percent Moreover,than 40 their even if employed inlow-wage to fewer jobsasopposed Malawi,than 60 per more ofrural cent womenare ofmen(FAO, percent 2017). In comparedto 62 ofrural cent 37 per womenare formally employed, low-paying jobs. For example, inZimbabwe only to beemployedinpart-time,likely seasonal, and rural womenare paidemployees,they are more informal wage islarge. employment the SADC region,In the gendergapinformal and cupational Thegenderwage gapandoc 2.3.6 2015). InMozambique, for example, agriculture the worldaveragethan for (Oxfam, harvesting farmerstimes less insouthernAfrica five harvest Agriculture inSADC isunderproductive – Womenas underachievers ofcompetitive 2.4.1 with few ornobenefits(Rubin andManfre, 2014). temporary lowerwages,do orseasonal workat than men,positions to tend andinsteadwomen However, womenholdfewer permanent constitute 91 per ofhorticultural cent employees. value chains. InZimbabwe, for example, women markets byengagingwithagricultural global Womento mayalsoto reduced respond access regulatory issues(Ityavayar, 2013). to policy, institutional, cultural, economic, and tradingonly marginally due fromtheir activity to note, however, womenoften that benefit trade are agricultural products. isimportant It trade, goodsexchangedthrough andmost such ofintra-SADC cent 30-40 per constitutes about the SADC region. Informal cross-bordertrade the informal of cent cross-bordertraders in Women 70 per (2010)womenconstitute about segregation advantage on trade 45 According to UN Accordingto UN 46 Even when Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b contributes only 23 per cent to GDP but employs under short deadlines. As a result, women are 78 per cent of the labour force. As discussed earlier, segregated in seasonal, casual, and temporary

gender-based discrimination and the multiple work. Women, in fact, are typically concentrated module challenges women farmers face undermine in unskilled, labour-intensive activities (e.g. their productivity, which is considerably lower processing seafood, labelling, and bar-coding than men’s in several SADC member states. produce). In contrast, men tend to prevail in Women remain underachievers of competitive managerial and technical positions (in addition advantage, particularly as small entrepreneurs to positions requiring particularly heavy physical and self-employed producers (UNCTAD, 2017). effort) (Hill and Vigneri, 2014). According to the FAO, if women had equal access to resources they could increase their farm yields 2.5 The impact of the SADC on regional by 20 to 30 per cent, with important benefits agricultural development for food security and poverty (FAO, 2011a; Oxfam, With the 2003 Maputo Declaration, which was 2015). Not only does gender inequality negatively confirmed in Malabo in 2014, the 55 member impact women’s livelihoods and living conditions, states of the African Union committed to it is also a source of instability and inefficiency for progressively increase their spending to allocate the agricultural sector in general and, ultimately, at least 10 per cent of national budgets to for the economy as a whole. Moreover, the agriculture. The critical importance of food productivity gap represents a threat to overall security was emphasized in the 2004 Dar-es- food security, since some SADC countries, such Salaam Declaration on Agriculture and Food as Mozambique, Swaziland, and Zimbabwe, are Security in the SADC Region. particularly vulnerable in this regard. Finally, climate change may exacerbate the problem by The SADC Multi-Country Agricultural Productivity affecting the production of key crops. Programme (MAPP), adopted in 2008, is a 15-year programme to be implemented in three five-year 2.4.2 Women as sources of competitive advantage phases. It is derived from a core programme of the African Union’s New Partnership for Africa’s Gender inequality can be turned into a source Development to address sustained growth and of competitive advantage in a context of trade poverty reduction, the Comprehensive African liberalization. In fact, competitive advantage Agricultural Development Programme (CAADP).48 is based on cutting the absolute unit cost of A key goal of the CAADP is to increase agricultural production, and cheap labour is an essential productivity by at least 6 per cent a year while element of competitiveness. In Zambia, men were committing to allocate 10 per cent of public able to increase maize production by demanding expenditure to the agricultural sector. The SADC’s greater labour inputs from their wives; however, MAPP builds on the fourth pillar of the CAADP – women producers were not able to exert similar agricultural research – and proposes a set of demands on their husbands’ labour (Fontana initiatives to promote a focus on agricultural and Paciello, 2010). In the case of commercial- research, and also seeks to strengthen technology oriented crop production, women’s unpaid work development, dissemination, and adoption is important in reducing the cost of exports (SADC secretariat, 2017). and increasing export earnings. Nevertheless, women can hardly benefit from those earnings Similarly, the SADC Regional Agricultural Policy due to the limited decision-making power they issued in 2013 introduced a programme to exercise in the household and their little control support agricultural productivity, sustainable over resources. production, and competitiveness. As part of this programme, SADC countries committed “to Concerning occupations, in SADC as in many ensuring enhanced contribution to agricultural other developing countries, following trade development and food security by women, youth liberalization women have begun to be and other vulnerable groups by guaranteeing increasingly employed in non-traditional them effective access to productive resources, agricultural exports because they constitute a services, and social/economic opportunities. In cheap source of labour and they have weaker particular, Member States acknowledge that bargaining power.47 The relatively low pay that women in agriculture, who make up more than women receive makes them attractive workers 50 per cent of the rural population, play a central for the firms that face tough competition in role in producing, harvesting, processing, storing, the international market. Cutting production and marketing of food.”49 The SADC Gender costs, especially labour costs, is a typical strategy Policy document explicitly states the need to used by export-oriented agro-enterprises, since enhance women’s participation in agriculture by they face significant pressure to meet seasonal promoting their access to services and protecting demand peaks in foreign markets and deliver their legal and constitutional rights.

23 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 24 the impact of tradethe gender of opennesson the impact the agriculturalin sector. also investigates It the share offemaleopenness on employment trade of This analysis evaluatesthe impact liberalization. tradethe degreeto measure of is used Wamboye andSeguino(2015),trade openness sectors. be replicatedthe service forthe industryand the agriculture sector.in The sameanalysis will liberalization inSADC onwomen’s employment tradethe effect examinesThis section of oftrade Estimatingtheimpact openness 2.6 governmental priceregulations (Oxfam, 2015). to havetend lowreturns andare often under their production from staplecrops, just which less labour-intensive enterprises, diversifying womencould invest inmorethat rewarding, to coverused capital andproduction costs so based incentives be subsidiesmight anddirect burden shouldbealleviated. Furthermore,tax- strengthened, and women’s reproductive work specifically, landownershiprights shouldbe the SADCand development region. in More to landandinputsisessentialaccess for growth tackles women’s that A policyplan unequal small-holder farmers andwomen’s enterprises. the risksreduce ofacommercial investment in higher-value markets, andpublicinterventionto women (andsmall-holders) whowantto enter policy reform,the barriersfaced reducing by Specifically,to includeland these measures need the constraints target faced bysmall-holders. there isaneedfor additional interventionsthat to agriculture,to allocating budgeting addition been weak. AsindicatedbyOxfam (2015), in these goals,Despite policyimplementation has Source: rural women. production projects,whichcouldprovide animportantsourceoflivelihoodfordisadvantagedgroups, including of LocalGovernmentthatfocuson theconstructionofruralclinicsandfootbridgesagricultural-intensive intensive andincome-generating schemes. TheseincludeinitiativesbytheCivilWorksSectionof Ministry services, orothersupportfromthegovernment.Nonetheless,there aresomegovernment-sponsoredlabour- 7OMENFARMERSENGAGEDINTHEMICROAGRO BUSINESSSECTORDONOT take overwomen’stasks. were regardedasmaleprerogatives,althoughevidenceshowsthatwhen menreturnfromtheminestheytendto in agriculturalproduction.Similarly,malemigrationcreatedtheconditions forwomentoundertaketasksthat the necessaryinputsforcerealproduction,butretrenchmentofminers depletedthismajorsourceofinvestment (52 percentofmen,and72women).Inthepast,ruralhouseholds usedminingremittancestopurchase INSTIT AND management, low-yieldingseeding).Nevertheless,mostofthepopulation isemployedinsubsistenceagriculture INFRASTRUCTURE AND CHARACTERISTICS SOIL AND CLIMATIC between 1982and2010.Severalfactorscontributetounderminingagricultural productioninthecountry,namely The agriculturalsectorinLesothohasperformedpoorly,withanannual averagegrowthrateofonly0.3percent Box 4 on women in agriculture intheSADC on women inagriculture UNCTAD (2012). 50 Following Bussmann(2009)and 51

The impact oftrade impact onrural liberalization womenThe inLesotho employment gap.employment and tea. traditional of cropsexports suchasgrains, coffee, and processed foodto substituteforthe began suchashorticulture,exports richprotein meats, developing countries, high-value agricultural the otherhand,On the 1980sinsome in starting and marketing (Mehra andGammage, 1999). be excluded from formal cashcrop production many developing countries,to tended women to becommercializedAs agriculture began in worked inagriculture asunpaidfamily labour. much ofAfrica, where womenhave historically forsector femalethroughout employment However, important agriculturethe most remains fromtoward agriculture industryandservices. there hasbeenashift awaythat world such all overthe the composition ofoutput and has substantially changedproduction patterns on womeninagriculture? First, global integration trade effectthe expected of liberalization is What methodology are presented inAnnex1. the dataandestimation detailsabout Further considered asshares ofGDP)are also considered. separate (both effects andimports ofexports trade of openness,the aggregate impact to the tradeassociated with liberalization, inaddition competition expansionandimport export for developing countries. on female agricultural clear isnot employment Therefore, ofexport-oriented policies the impact with largerproducersterms ofcosts andprices. in to compete beable they maynot markets because may beexcludedthe lucrative from high-value forsources ofopportunities everyone, women the changesinagriculturealthough create new Conversely, accordingto World al. Bank et (2009), stimulated ahighlevel offemale employment. these high-value agricultural have exports TOAD½INIS EGPONTRL RESOURCE NATURAL POOR EG DE½CIENCIES UTIONAL APPEARTOHAVEBENE½TEDFROMTRAINING EXTENSION 54 Barrientos et al. Barrientos et (2004)contendsthat 52 To evaluatethe effects of 53 Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Box 5 The impact of trade liberalization on rural women in Angola

In Angola, 70 per cent of the female workforce is employed in agriculture. However, agriculture in Angola is a module low-productivity sector, with commercial agriculture not being necessarily more productive than family agriculture. As a result, rural areas in the country are generally very poor.

Traditional agriculture, which mainly employs women, accounts for 80 per cent of the sector, while commercial agriculture constitutes the remaining 20 per cent and is male-intensive. Female-headed households account for 33 per cent of all households and are the poorest and most vulnerable.

The Angolan agricultural sector presents a gender-based division of labour: men take care of land clearing and ploughing for commercial crop production and cattle raising, and women are mainly employed in family subsistence PRODUCTIONOFFOODCROPSANDSMALLLIVESTOCK ASWELLASINCOLLECTINGWATERAND½REWOOD2URALWOMENIN!NGOLA work on average 14-15 hours per day.

Trade liberalization was expected to affect production levels and incomes of the rural work force by increasing imports of agricultural products, which was expected to lower prices of domestic agricultural products or make domestic products uncompetitive.

However, evidence in Angola shows that trade liberalization has not had a great impact on local producers to date. In fact, many of those producers, especially women, are subsistence-oriented and therefore insulated from trade. However, producers whose income is partly generated by sales of their products in the domestic market may have been negatively affected by cheap imports.

!NOTHER ASPECT TO TAKE INTO ACCOUNT IS THAT THE !NGOLAN AGRICULTURAL SECTOR IS CHARACTERIZED BY A SIGNI½CANT DIVERSI½CATIONOFINCOMESOURCES!GRICULTUREINFACTONLYGENERATESPERCENTOFINCOMEINRURALAREAS WHICH means that trade liberalization may have impacted only a fraction of cash income. The impact of trade on agriculture is also limited by regional differences in import penetration. As a result, the effects of trade liberalization on rural women vary across the country and among the main commodities.

Angola’s integration with the world’s market exploiting the country’s extractive sectors (i.e. oil and, to some EXTENT DIAMONDS HASSIGNI½CANTLYCONSTRAINEDECONOMICDIVERSI½CATION MAKINGITEXTREMELYDIF½CULTTODEVELOP import-competing or export-oriented sectors. This, in turn, has had negative repercussions on the development of productive activities that could absorb the female workforce and provide women with decent incomes. Women, in FACT HAVETYPICALLYBEENCON½NEDTONON TRADABLEANDLOW PRODUCTIVITYACTIVITIES!MORESIGNI½CANTIMPACTOFTRADE on the female workforce is expected once the road infrastructure is upgraded, particularly in terms of integration and import penetration, which will expose women to international and domestic competition. In addition, women should be able to purchase a larger variety of inputs at lower prices.

Moreover, unlike other sub-Saharan countries, Angola did not experience a shift towards export-oriented manufacturing activities, which might have broadened employment opportunities for women.

Source: UNCTAD (2013).

A similar situation is also true for import 2.6.1 Findings on the impact of trade on women’s competition effects. In agriculture, as in employment in agriculture the other sectors of the economy, import This section evaluates the impact of trade competition may have a positive or negative openness on the total female workforce in the effect on employment. Import competition may agricultural sector. As shown in table A1.1 in discourage the enterprises with low productivity, Annex 1, the results indicate that trade openness while it may induce highly productive activities has no effect on women’s employment share in to be even more productive. Additionally, import agriculture. When considering separately the competition is likely to lead to competitive pressures that reduce the scope for employers to export-to-GDP ratio (equivalently indicated discriminate, including against women (Revenga, as exports/GDP or export share) and the 1992; Melitz, 2003; Wood; 1995). import-to-GDP ratio (equivalently indicated as imports/GDP or import share), the results show The following two sections discuss the results of that the export share is negatively associated the analysis of the effects of trade openness on with women’s employment share (which (1) the total female workforce and (2) the gender indicates the percentage of women in total employment gap in agriculture. The analysis employment); in contrast, the import share differentiates between SADC and non-SADC is positively related to women’s employment exports and imports (both calculated as shares share. The opposite effects of exports/GDP of GDP). Boxes 4 and 5 examine the specific cases and imports/GDP cancel each other out, which of Lesotho and Angola, respectively. explains why trade openness, considered

25 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 26 goods may increase the demandforgoods mayincrease womenin availability inputsandintermediate ofimported areas where womenare concentrated. Increased as intermediatethe production products in the role ofimports to isrelatedthis result explain the agricultural sector. might that Anotherfactor source ofcompetitive advantage for producers in and practices). Womentherefore constitute a to discriminatorynorms than men(due source since womenoften make upacheaperlabour demand for womeninagriculture mayincrease the domesticmarkets,the ofwhich asaresult may beexplainedbyincreased competition in in female inagriculture. employment This non-SADCto anincrease to lead countriestend from increases bothSADC inimports that and With regardto imports, the results indicate female employment. countries are found to have on anegative impact the otherhand,to non-SADC increases inexports change infemale inagriculture. employment On other SADC countries) create any donot significant (i.e.SADC from exports SADC exports countriesto inagriculture.employment the findings, Basedon shares onfemale andimport effects ofexport Figurethe regionally 10summarizes differentiated 1999; García, 2006). to bemale-dominatedlikely inAfrica (Koehler, cultivated onalargescale for are more exports more commercial orindustrialized crops dominatedbymen.sub-sectors This isbecause the expansionof in agriculture reflect might total female on employmentexpanded exports shares.employment The negative effect of as anaggregate, affect women’s does not in GDP on total femalein GDPon inagriculture employment ofSADC countries. SADC: SouthernAfrican Development Community. Note: Source: Figure 10 coefficients ofa1percentageThe reported sharesthe impact increase point inSADC show andnon-SADC andimport export Calculationsthe UNCTAD by tablethe results A1.1inAnnex1. of basedon secretariat –0.05 –0.15 0.05 –0.2 –0.1 0.15 0.2 0.1 0 Regionally differentiatedRegionally oftrade impact opennessonfemale inagriculture employment Exports/GDP SADC 0 Imports/GDP SADC 0.173 not affect femalenot employment. why intra-SADC (asashare ofGDP) do exports value-added agricultural products mayexplain withinSADCsmall volumes ofhigh- ofexports GDP) withcountries outside ofSADC; relatively agricultural (considered exports as ashare of onfemalethe negative of employment impact to high-value-added exports. This mayexplain there hasbeenashift from low-value-added men.benefit Followingtrade liberalization, agricultural products tendto disproportionately Production andmarketing ofhigh-processed to otherSADC 2000-era. countriesthe post in to non-SADC exported countries ratherthan value agricultural products have beenprimarily Kabala high- that andKirsten(2013)observe in SADC andnon-SADCtrade. ofhigh-valuetradetotalimportance products in the differentto These results bedue might agricultural production. on women’s in low-value-added employment related products maycreate apositive effect the availability ofseeds, fertilizers, andirrigation- the agriculture sector. For example, increases in to the effectstradeto the gender of opennesson Table A1.1inAnnex1presentsthe results related the female-to-maleusing ratio. employment gap,the genderemployment whichisevaluated turnsto the of tradesection impact openness on on male employment.the impact ignoring This trade onwomen’s inagriculture, employment of The previous focusedthe impact section on oftrade Findings ontheimpact onthe 2.6.2 gender employment gapinagriculture gender employment Exports/GDP Non-SADC –0.158 Imports/GDP Non-SADC 0.118 55 For example, Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b employment gap in agriculture. The findings estimates, both SADC and non-SADC exports reveal that trade openness tends to reduce the (measured as shares of GDP) increase the

female-to-male employment ratio (equivalently, gender employment gap. These results imply module it tends to increase the gender employment that increased export opportunities are mostly gap). This implies that trade openness tends beneficial (or less detrimental) to men rather to be more beneficial to men’s employment than to women, which is consistent with the than to women’s. In looking separately at the observation that growing commercialization impact of export and import shares of GDP, the of agriculture tends to primarily benefit men’s estimates show that it is exports that drive the employment. On the other hand, increases in negative effect of trade openness on the gender imports measured as a share of GDP do not employment gap. create any significant impact on the female- to-male employment ratio in agriculture. This Figure 11 summarizes regionally differentiated implies that men and women are virtually effects of exports and imports on the gender equally affected by increases in the SADC and employment gap in agriculture. Based on the non-SADC imports shares.

Figure 11 Regionally differentiated impact of trade openness on the gender employment gap in agriculture

0 00 –0.005

–0.01 –0.015 –0.02 –0.025

–0.03 –0.035 –0.034 –0.04 –0.045 –0.046 –0.05

SADC SADC Non-SADC Non-SADC Exports/GDP Imports/GDP Exports/GDP Imports/GDP

Source: Calculations by the UNCTAD secretariat based on the results of table A1.1 in Annex 1. Note: The reported coefficients show the impact of a 1 percentage point increase in the SADC and non-SADC export and import shares of GDP on the female-to-male employment ratio in agriculture of SADC countries. SADC: Southern African Development Community.

3 Trade and gender in the industrial and female workers in the industrial sector are sector affected differently by the integration process.

This section focuses on the trade-gender nexus in Manufacturing is often considered the the industrial sector in the SADC region. In SADC, backbone of the development process and industry absorbs a relatively small share of men is therefore at the core of trade integration and (especially) women in total employment.56 policies.57 Employment in manufacturing Table 10 provides data on the participation by tends to offer higher wages and potentially gender in the industrial sector before and after more stable job opportunities compared to the introduction of the free trade agreement. agriculture and low-skilled services. Moreover, Two observations are instructive. First, female given that the expansion of manufacturing and male employment shares in industry show production and exports was one of the driving considerable disparities across countries, which forces behind the Asian development process, are due to substantial differences in the sectoral composition as well as stages of development of export-oriented manufacturing has become SADC member states. Second, the change in the one of the primary development strategies share of employment for men and women before for less-developed countries and other and after the SADC integration process varies developing countries, including those in the across member states, which implies that male SADC region.58

27 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 28 Note: Source: of labour,”textile andthe in particularly contributedto ageneralized “feminization trendcommon onaglobal scale:they have another; however,to identify a ispossible it EPZs vary significantly from onecountryto the worldmarket” (ILO, 1996). environment,to facilitatethe entry aiming in tradefree conditions andaliberal regulatory before again. beingexported They offer firms materials undergosomedegree ofprocessing foreignattract investors, inwhichimported “industrial zones withspecial incentivesto Labour Organization (ILO) describesEPZs as processing zones (EPZs). The International the establishment ofso-called export to led countries, export-oriented economic policies with global markets.these Inanumberof andintegrationto promotepolicies exports export-orientedto implement economic the 1960s,In developing countries started processing Export zones andtheirimpact 3.1 inequalities. female and female employment employment tradetotal of opennesson evaluatesthe impact the manufacturing sector,nexus in andfinally on women, then examines thetrade-gender processing zones ofexport the impact discusses the region. onwomenin impact first The section export-oriented industrialization inSADC andits focusesthe keyThis section to issuesrelated on AC58 .81.518.12 13.33 15.17 17.25 - 25.58 15.77 10.52 34.74 21.76 5.58 8.67 - 25.85 8.20 8.45 2.90 3.43 29.73 34.03 19.19 10.98 5.96 5.87 21.18 2.88 7.58 - 7.66 4.63 35.08 2.74 11.96 19.22 5.35 52.40 6.21 3.08 13.95 2.78 0.25 1.07 17.80 12.29 - 24.40 10.24 52.71 8.32 2.03 3.63 18.71 0.28 SADC 30.02 1.07 Zimbabwe 10.34 9.89 19.07 Zambia 3.35 15.72 United Republic of Tanzania Swaziland South Africa 13.73 2.06 20.49 Seychelles Namibia Mozambique Mauritius 2.20 Malawi Madagascar Lesotho Democratic Republicthe Congo of Botswana Angola Table 10 SADC: SouthernAfrican Development Community. ILOSTAT database (accessed15September2017). on women inSADC countries Employment shares in industry by sex, 2001–2008 versus 2009–2016 (percent) versus sharesinindustryby 2009–2016 Employment sex, 2001–2008 0120 0921 0120 2009–2016 2001–2008 2009–2016 2001–2008 eaeMale Female into account when discussing the impact of intothe impact account whendiscussing SADC region.takento be issue Animportant to havephenomenon seems the occurred in the feminization ofEPZsthe global level, at this the authorsare unconvincedAlthough about literature onEPZs indeveloping countries. Cirera andLakshmanthe (2014) summarize of EPZs forthe economy. the relevancetotala share indicate exports) of for women. Finally,the values ofEPZ (as exports they present jobopportunities to suggest seem is often missing,the available dataonEPZs the information onfemale shares employment inSADCthe leadingsectors are EPZs. Although such asfood processing,textiles, andgarments Table labour-intensivethat 11shows sectors which relevant dataare available. to EPZsthe SADC countries asof2007in for table 11 presents somestylized facts related Africa,the SADC region, including isdifficult, updated information onEPZs insub-Saharan Africa, Zambia, andZimbabwe. While finding Mozambique, Namibia, Seychelles, South Lesotho, Madagascar, Malawi, Mauritius, have upvarious set forms ofEPZs: Botswana, As far asSADC isconcerned, 11memberstates (Standing, 1989, 1999). traditionallyto menworkingin female jobs the extensionofinsecure workingconditions the femaleto share aswell ofemployment sectors.garment the riseinterm refersto This 59 Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Table 11 Export processing zones in SADC countries module Export processing Total Female Country Main sectors zone exports as a employment share percent of total exports

Clothing and textile products, brick manufacturing, Lesotho 44,000 80 pharmaceuticals

Madagascar 115,000 71.1 Food processing services, timber, watches 80

Tobacco, tea, coffee, macadamia nuts, rice, confectionery, ceramics, textiles, crafts, farm implements, fishing flies, Malawi 29,000 51 furniture, gemstones, enamelware, rubber, live tropical fish, flowers, buses and trailers

Food, flowers, textile, leather products, wood and paper products, optical goods, electronic watches and clocks, Mauritius 65,512 62.6 42 electric and electronic products, jewellery, toys and carnival articles

Mozambique Textile, agriculture 85

Warehouses, food processing, aquaculture, mining, Namibia 29,000 41 tourism, fisheries

Seychelles 2,200

South Africa 535,195

Food processing, timber processing, shoes, textiles and Zimbabwe 22,000 80 leather, satellite telecommunications, tobacco

Sources: Boyenge (2007); and the International Labour Organisation database on export processing zones. Note: SADC: Southern African Development Community.

EPZs on women in southern Africa is labour industrial upgrading – tends to create an anti- legislation, since national governments tend to female bias in labour demand. allow derogations to labour rights in the EPZs to Cling et al. (2007) state that starting in 1995 attract foreign investment.60 This has an impact a process of labour defeminization occurred on the quality of employment in the EPZs, which in the “Zone Franche” in Madagascar, with the has indeed has been questioned. share of female workers falling from 84 per Wick (2010) states that among the 130 economies cent in 1995 to 69 per cent in 2006 due to with EPZs, only four – People's Republic of China, the adoption of more advanced technology Republic of Korea, Mauritius, and Taiwan and a change in the industrial composition Province of China – made clear progress in of export processing firms. According to Tandrayen-Ragoobur and Ayrga (2012), the fall integrating EPZ activities into the local economy in female employment, or defeminization of and a successful industrialization process, labour, led to the “feminization of poverty” in while labour-intensive EPZs in other countries Mauritius (see box 6). contributed only minimally to economic growth and development (box 6). In conclusion, most SADC countries have set up EPZs. At least in the early phases, the zones Although EPZs had been female-dominated seem to have contributed to the process of until the early 2000s, as observed by Milberg labour feminization. However, available data and Amengual (2008), the feminization of suggest that EPZs, similar to other sectors employment in EPZs seems to have passed outside the EPZs, are now facing the opposite its zenith, and has since been in decline at phenomenon, which is labour defeminization. the global level. This decline in the women’s Ultimately, it remains unclear whether growth employment share, a phenomenon called the in EPZs is ultimately beneficial to women, and “defeminization of labour,” appears to be a hence to the objective of gender equality. As general phenomenon in industry, not only observed by Glick and Roubaud (2004), the confined to EPZs. For example, in their study impact of EPZs on women varies significantly of 62 high- and middle-income countries, from one country to another, and it is Tejani and Milberg (2016) observe that making essentially context-related, depending mainly products with higher technological content on the structure of the country’s society and or more value-addition – a process called the characteristics of the EPZs.

29 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 30 SADC region. liberalizationthe onwomeninmanufacturing in the effects examinestradeThis section of efforts significant this context.the most in as African Community (EAC) canbeconsidered andSouthAfricaEast (COMESA) the East and Agreement (TFTA)the Common with for Market the European Unionand Triple Free Trade Economic Partnership Agreement (EPA) with partners.the Introduction, Asstatedin the towardsthe region and within trading external commitment towards trade liberalization, both Since itsestablishment,the SADC hasshown Trade inmanufacturing liberalization 3.2 NamibiapassedtheExportProcessingZonesActin1995.Theactwentasfarsuspendingapplication • Startinginthe1970s,Mauritiusadoptedexport-orientedindustrializationpoliciesthatledtoimplementationof • The“ZoneFranche”exportprocessingzone(EPZ)establishedinthe1990sMadagascarshowssomebasic • Box 6 to therestofeconomy. unions. Thefactoryclosedin2008amidmanycontroversiesaboutitsemploymentconditionsandspillovers measures, nocompensationincaseofaccidents,abusebysupervisors,andopenhostilitytowardstrade FORJOBS NON PAYMENTFORWORKERSONSICKLEAVE VERYLOWWAGES (2008) noteswidespreadabusesofworkersinRamatexsuchasforcedpregnancytestsforwomenwhoapplied industrial unrest.Ramatex,aclothingandtextilefactory,beganitsoperationsinNamibia2002.Jauch of theLabourActinEPZs,whichgovernmentdescribedasnecessarytoallayinvestors’fearspossible and textilesectors.Thisalsoresultedinanoveralldeclinewomen’semploymenttheEPZs. OBSERVESTHATFOLLOWINGTHEENDOFTHE-&! THEGLOBAL½NA meet thechallengesofworldmarket;asaresult,thosewomenwerereplacedbyforeignworkers.Otobe(2015) workforce hasgraduallybecomemoreexpensiveandcouldnotproduceasmuchexpectedbyfactoryownersto than tomen;85percentofworkerswhoremainedunemployedwerewomen.Furthermore,thefemaleindigenous (MFA) in2005,Mauritiussawaretrenchmentoftheclothingindustrywhoseeffectsweremoreharmfultowomen Moreover, asstatedbyTandrayen-RagooburandAyrga(2012),withthephasingoutofMulti-FibreAgreement have perpetuatedthegenderwagegapandcreationofemploymentcharacterizedbypoorlabourconditions. under poorsafetyconditionsandwithlittlejobsecurity.Therefore,export-orientedeconomicpoliciesinMauritius mainly inlower-skilledjobs.Blin(2006)statesthatwomenemployedEPZshavelongworkinghoursandwork in theformalnon-garmentsector.However,womenreceivedlowerwagesthanmen,astheywereconcentrated reported tooftenbeanobligation.Asfaraswagesareconcerned,theywerehigherthanintheinformalsectorand rate washigherthantheregularwagerate,butstilllowerrelativetomaleovertimerate.Overtime workforce (NowbutsingandAncharaz,2011).Manywomenwerereportedtobeworkingovertime,sincetheovertime EPZs andaconsequent“feminizationoflabour.”Intheperiod1990–2003,womenrepresentedtwo-thirdsEPZ improvement insalaryand,turn,reducesthegenderwagegap. WHENAWOMANMOVESFROMWORKINGINTHEINFORMALSECTORTOBEING still higherthanintheinformalsector,whichalsomostlyemployswomen.Therefore,accordingtoauthors, Roubaud (2006)contendthatalthoughwagesforwomenintheZoneFranchearelowerthanelsewhere,they wage gapbetweenmenandwomenfrom20percenttoabout30(UNCTAD,2009).However,Glick existence ofavastpoolunemployedorunderemployedindividuals.Thisresultedinanincreasethegender positions. Increasesinwageswerelimitedtoskilledworkersonly,whileunskilledkeptlowbythe women wererelegatedtounskilledjobspayinglowwages,whilementendedoccupyhigh-wageskilled a somewhatlowerbutgenerallycomparablelevelofeducationthanmen.Nonetheless,thelargemajority very similarformenandwomen.WomenemployedinMadagascar’sgarmentindustrywerefoundtohave Moreover, marriagedidnotseemtobeanobstacleemployment,sincetheshareofmarriedemployeeswas The ZoneFrancheprovidedtheonlyaccessformanywomentobetter-paidalternativesinformalsectorwork. workforce intheZoneFranche,andEPZ’sfemalerepresented15percentofallemployees. the ZoneFranchethaninrestofformalprivatesector.In2006,womenrepresented70percent WORKFORCE ANDITPROVIDESASIGNI½CANTSTEP UPINPAYFORWOME patterns presentelsewhereinthedevelopingworldaswell.Itmostlyemploysafemale,semi-skilled,andyoung region and itseffects onwomen intheSADC Export processingExport zones inMadagascar, Mauritius, andNamibia evaluationtransmissionthe production channel. of differently. followsthat The analysis provides an and services. These changesaffect womenandmen the relativepatterns bychanging pricesofgoods employment. Trade indirectly affects consumption directly affectsthe genderwage gapandfemale tradewhich affects andwages. employment Trade theretransmission arethrough multiple channels the heterodoxtheory andin approach. Inaddition, wages are different the standard neoclassical in trade liberalization onwomen’s and employment manual (UNCTAD, 2014), effects the expected of the coretraining As explainedinModule2of Thechannelsthroughwhichtrade 3.2.1 NCIALCRISISHADFURTHERNEGATIVEEFFECTSONTHECLOTHING women’s employment andwageswomen’s employment liberalization inmanufacturing aﬀects ANDNOBENE½TS INSUF½CIENTHEALTHANDSAFETY N)N THEREWEREMOREWORKINGWOMENIN EMPLOYEDINTHE%0: SHEBENE½TSFROMAN Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

The empirical literature shows that trade could domestic production will be replaced by imports, generate an advantage or disadvantage for which will adversely affect female employment

women in manufacturing by causing a change if those contractions due to import competition module in the sectoral composition of the economy. mostly influence the sectors where women work Previous findings suggest that there is no clear more intensively. On the other hand, as observed pattern in the effect of trade on gender, as the by Al Azzawi (2014), the import competition overall impact tends to be specific to the country, could be either beneficial or disadvantageous for trade structure, and sector composition. Several women depending on the competition structure studies, including Wood (1991), Joekes (1995), of an economy. and Seguino (1997), find a positive association between increasing exports and the female share 3.2.2 Estimating the eﬀect of trade liberalization of employment in some developing countries. on women in the manufacturing sector in the SADC This expansion in women’s employment is due to gender segregation and gender biases emerging This section empirically examines the trade- particularly in labour-intensive, low-value- gender nexus by considering the gender impact added, and low-wage export industries such of SADC trade liberalization efforts. In this context, as garments, textiles, leather, etc., in which the the section examines the effects of tariff changes quality of jobs and prospects for advancement on women’s employment in the manufacturing are limited. sector, distinguishing between trading partners. In the analysis, the non-SADC group includes the The process of “feminization of labour,” which main trading partners of the SADC region: sub- has typically characterized the early phases of industrialization in developing countries, may Saharan Africa, the European Union, and “other be reversed over time, For instance, as industries trading partners” (used as a residual category). mature, they expand in capital-intensive sectors.61 Sub-Saharan Africa has particular importance in Note that, as observed by Caraway (2006) and the non-SADC group because it mainly consists later studied by Kucera and Tejani (2014), the of future TFTA countries; as a result, sub-Saharan concepts of feminization and defeminization Africa could be seen a proxy for the TFTA group. In largely depend on the reallocation of male and this respect, this analysis could give an indication female employment between sectors, rather of the possible impact of the SADC’s future trade than changes within sectors. agreements on women’s labour market outcomes.

A recent line of research explicitly takes skill This section examines the effect of tariff levels of female employment into account when liberalization of SADC and non-SADC trade evaluating the impact of trade on outcomes for partners on female employment in SADC women. This avenue of literature builds on the member countries using firm-level data from 65 framework of the new trade models.62 According the World Bank Enterprise Surveys (WBES). The to this view, heterogeneous firms choose between WBES is available for all SADC members except 66 old and new technologies that require different Seychelles. In the empirical analysis, the female- combinations of production (blue-collar) and to-male employment ratios (used as a measure non-production (white-collar) tasks.63 For of the gender employment gap) are reported example, Juhn et al. (2013, 2014) find that women for both production and non-production become more productive in blue-collar jobs in occupations across sectors. The goal of the the new technology. With trade liberalization, analysis is to explain variations in the gender some firms start exporting and upgrading their employment gap across sectors. technologies. This improves women’s labour Tariff data are collected from the World Integrated market outcomes in production tasks while Trade Solution (WITS) database. Tariff variables leaving employment in non-production tasks are defined as import tariffs and export tariffs. unaffected. A similar approach employed by Export tariff change measures the average export UNCTAD (2017a) to assess the impact of trade duty change faced in the destination countries; liberalization on gender for the COMESA region import tariff change measures the average tariff revealed qualitatively similar results. change imposed on imports. Therefore, in the Finally, as mentioned in UNCTAD (2014), another case of the SADC, export tariffs are not set by transmission channel between trade and gender SADC countries, but by their trading partners; involves import competition effects. In this import tariffs are instead determined by the respect, the employment gains of women in some SADC member states themselves. The change countries as a result of export-oriented policies in export and import tariffs in a given sector is do not negate the possibility that these gains calculated as the difference between the average may have come at the expense of women workers tariff rates applied before the surveyed year in other countries.64 With increasing trade, some and those applied in the survey year. Hence, a

31 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 32 implies greater tradeimplies greater liberalization. tariff and indicates ahigher reduction inasector larger positive numberfortariff a rate variable Community. female-to-male ratio employment ofmanufacturing; insub-sectors RoW:the world; of rest SADC: Southern African Development Notes: Source: channel,the export throughthe analysis Totrade of liberalization evaluatethe impact oftrade Impact liberalization throughthe 3.2.2.1 gap. liberalization the genderemployment on ratiosto evaluate inorder tradethe effect of tariffof changesonfemale-to-male employment followsthat the impact The analysis estimates presented separately. competition channelsis andimport export specialization patterns. the The discussionon to possibledifferencestraded in products or tradingthe partners.depending on This islinked changes onlabour outcomes market differs ratios.employment Moreover,tariffthe effect of onfemale-to-male impact a significant tariff changeshavethat The results suggest the SADCcompetition market. in affects firmsbyincreasing import non-exporting SADC firms. Inaddition,trade liberalization also for market liberalization export inaparticular tariffs tradethe degree measure of export capabilities wouldimprove.this context, In oriented,this way, andin their production to becomeallows more somefirms export- outcomes.market trade Increased liberalization trade of liberalizationimpact onwomen’s labour (considered separately)the to assess are used Figure 12 68 coefficientsThe reported the percentage ofa1 per give impact the SADC decrease cent tariffs andnon-SADC in the on export 0.08 Calculationsthe UNCTAD by tablethe results A1.2inAnnex1. of basedon secretariat Both export and import tariff measures andimport Bothexport export channel export Regression resultsfor theeffects tariff ofexport changes onfemale-to-male ratios employment ACSAErpa no RoW European Union SSA SADC 0.07 000 0 00 Overall 67 0.04 rdcintssNon-production tasks Production tasks

–0.11 production tasks of exporting firms. tasks ofexporting production the female-to-maleon ratio employment innon- competition impact to create anegative import the worldseems within SADC of andwithrest firms.exporting Conversely,trade liberalization tasks)in white-collar jobs(non-production of positive associationwithfemale employment the Europeanreductions with Unionhave a tariff import The resultsthat also show firms.tasks inexporting affects female innon-production employment from sub-Saharanon imports Africa positively sub-Saharan Africa. Conversely,tariffs reducing tariff decreases imposedongoodsfromimport firmsare negativelyexporting related with outcomes overalltasks of andinproduction results bothfemale revealthat employment overall,tradingthe partner. dependingon The production tasks, non-production tasks, and a different onwomen’s impact in employment trade liberalizationthat estimates suggest has varies dependingonwomen’s skilllevels. The traded products orspecialization patterns) and trading ofdifferences (asaresult partners in changes onwomen’s varies employment across tariff andimport the effect ofbothexport that focuses firms. onexporting The findingsreveal Annex 1. coefficients are providedthat table A1.3in in The figure isderived fromtheestimated labour outcomes ofwomenrelativeto men. tariffs on ofchangesinexport forthe impact Figurethe results 12summarizes ofestimates –0.03 –0.05 –0.1 –0.11 69

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

• The effect of export tariff reductions on intra- with the time span of the dataset used here, SADC trade seems to be strengthening this argument.

According to the results, export tariff reductions module Finally, the magnitude of the estimates reveals in intra-SADC trade positively affect the femalethat female employment outcomes in the SADC to-male employment ratio.70 However, the effects region are affected by tariff reductions occurring are different for female workers in production in the rest of the world, within the SADC, and in tasks and for those in non-production tasks. sub-Saharan Africa to a more considerable extent More specifically, a decrease in export tariffs than in the case of the European Union. The tariff within the region increases the female-to-male reduction faced by SADC exports in the European ratio in production tasks, whereas it has no Union market seems to have a minor impact on impact on female employment outcomes in non- female employment in SADC. production tasks. This finding is in line with the expectations of Juhn et al. (2013, 2014) discussed 3.2.2.2 Impact of trade liberalization through the in Section 3.2.1 that trade-induced technological import channel upgrading resulting from tariff reduction increases the productivity of female production The reduction in tariffs imposed on imports into workers and increases their relative employment the SADC region lead to an increase in import opportunities by reducing the required physical competition, in turn possibly affecting female effort. On the other hand, tariff reduction does labour market outcomes. To assess the impact not affect female employment outcomes in non- of trade liberalization through the import production tasks. competition channel, this section presents the estimates for all firms as well as for exporting • The effect of export tariff reductions on trade firms only.71 As in the case of agriculture, the with non-SADC countries results for trade liberalization in intra-SADC and The estimates suggest that as a result of a non-SADC trade will be discussed separately. decrease in the export duties faced by SADC Figure 13 presents the results of the estimates exports in destination markets within sub- on the effects of import tariff reductions on the Saharan Africa, the female-to-male employment female-to-male employment ratio by occupation ratio rises in production tasks. Conversely, female type and partner countries for all firms and for employment compared to male employment exporting firms only. in non-production jobs seems to be negatively • The effect of import tariff reductions on intra- affected. SADC trade Looking at export liberalization with the According to the results here, when all firms are European Union and the rest of the world, there considered, tariff reductions on imports coming are two key results: first, export tariff reductions from other SADC countries do not have any impact with those two partners do not have any effect on female employment for overall workers and on employment in non-production tasks; and workers in production and non-production tasks. second, a decrease in export tariffs with the Reductions in import duties on intra-SADC trade, European Union is associated with a relatively however, seem to increase female employment in small reduction in the overall female-to-male production tasks of exporting firms. Conversely, employment ratio and female employment in import tariff reductions tend to create a negative production tasks. Similarly, the overall female- effect on female employment in white-collar jobs to-male employment ratio and the female-to- (non-production tasks) of exporting firms. male employment ratio in production tasks • The effect of import tariff reductions on fall by approximately 0.10 per cent and almost international trade (i.e. trade with non-SADC 0.11 per cent, respectively, as a result of a 1 per countries) cent decrease in world export duties faced by SADC exports in the rest of the world destination The results suggest that the change in import markets (ceteris paribus). duties on goods purchased from the European Union has a significant effect on the female- The negative association between trade to-male employment ratio when all firms liberalization in the European Union and the rest are considered. The estimates reveal that a of the world with female employment outcomes decrease in import tariffs on products from the in production tasks can be explained by the European Union leads to a reduction of overall growth of export-oriented production activities female employment and female employment in that disproportionately employ men, in turn production tasks when all firms are considered. confirming the process of defeminization. The Therefore, trade liberalization with the European contraction of exports due to the 2008/2009 Union seems to create a negative import global financial crisis, which mostly coincides competition effect on women’s employment

33 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 34 SADC: Note: Source: tasks. (“overall”),tasks, production andnon-production channel,import total employment and between the and the export distinguishing between Tablethe results 12summarizes discussed above, with sub-Saharan Africa. competition fromto benefit import tasks seem considered, womenworkers innon-production outcomes.the otherhand, On whenall firmsare Community; SSA: sub-Saharan Africa. female-to-male ratio employment ofmanufacturing. insub-sectors RoW:the world; of rest SADC: SouthernAfrican Development Notes: Source: – rest of the world of – rest Percentagetariff changeinimport – European Union Percentagetariff changeinimport – sub-Saharan Africa Percentagetariff changeinimport – SADC Percentagetariff changeinimport channels Import the world of – rest Percentagetariff changeinexport – European Union Percentagetariff changeinexport – sub-Saharan Africa Percentagetariff changeinexport – SADC Percentagetariff changeinexport channels Export Summary of the impact oftradeSummary oftheimpact onfemale liberalization Table 12 Figure 13 000 00 00 00 00 0 0 00 0 00 Signs of the significant estimates based on the results of tablethe results A1.3. of estimatesbasedon the significant Signsof inAnnex1. SouthernAfrican Development Community. coefficientsThe reported the percentage ofa1 per give impact the SADC decrease cent tariffs andnon-SADC in the on import Calculationsthe UNCTAD by secretariat. Calculationsthe UNCTAD by tablethe results A1.3inAnnex1. of basedon secretariat All firms Overall –0.08 Impact of import tariff ofimport changes onfemale-to-maleImpact ratios, employment regions selected Production All firms ACSAErpa no RoW European Union SSA SADC tasks –0.09 l ()Eprig I) Al II xotn (V l () xotn (VI) Exporting (V) All (IV) Exporting (III) All (II) Exporting (I) All () + () ()(+) (+) (+) (+) (+) () () (+) (-) (-) () () () ()(-) (-) (-) (-) (-) Non-production All firms vrl rdcintssNon-productiontasks Productiontasks Overall 0.25 tasks () ()(-) (+) (+) () - + (+) (+) (-) (-) (-) (-) (-) (-) 0.05 forthe overrepresentation the ofwomenamong sub-Saharan Africa. Genderwage gapsaccount pervasive genderwage differentials in persist equal value. (2016b), inUNDP Aspointed out those ofmenforwagesthan are workof lower countries for whichdataexist, onaverage female al.As shownbyOelzet (2013), all inalmost Genderwage inequalitiesintheSADC 3.2.3 employment in the manufacturing sector in the SADC intheSADC inthemanufacturing sector employment Exporting –0.22 Overall firms manufacturing sector 0.09 Exporting firms + (-) (+) Production 03–0.31 –0.3 tasks Non-production Exporting firms 0.59 tasks 0.37 (-) –0.43 Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b working poor in sub-Saharan Africa, but there is salary payments issued by firms. This piece of wide variety in the magnitude of the gender wage information allows for analysing the relation

gap in the SADC region. SADC (2015c) reports that between wages and female employment at the module the proportion of average earnings of women firm level. Accordingly, the following analysis compared to men varies between 43 per cent in relates firm-level average wages (calculated as Mauritius and 93 per cent in the United Republic the total monthly salary payment divided by of Tanzania.72 the number of workers from both blue- and white-collar tasks) with the female-to-male Due to the lack of quality data, it is hard to employment ratios. Figure 14 plots the firm-level conduct a causality analysis between trade average monthly wage with the corresponding and wages for the manufacturing sector in female-to-male employment ratio along with the SADC region. Nevertheless, WBES datasets trend lines for exporting and non-exporting used in the previous analysis contain yearly firms.

Figure 14 Wages and female-to-male labour ratios for exporting and non-exporting firms in the SADC Percentage change in wages Percentage Percentage change in wages Percentage 051015 051015

0.00.51.01.52.02.5 0.0 0.5 1.0 1.5 2.0 2.5 Percentage change in female-to-male labour Percentage change in female-to-male labour ratios for exporting firms ratios for non-exporting firms

Source: Calculations by the UNCTAD secretariat based on the World Bank Enterprise Surveys. Note: SADC: Southern African Development Community.

The fitted curves in figure 14 hint at three ratios, the fitted line for exporting firms lies key observations. First, as the female-to-male above the line for non-exporting firms. This employment ratio increases, average wages positional difference in the lines reveals that decrease. In other words, average wages tend the average wage in exporting firms is higher to decline with the increases in the female- than in non-exporting firms. Given that the to-male employment ratio in manufacturing. time span of the dataset coincides with the This observation holds true for both exporting period when trade liberalization took place and non-exporting firms. Second, the curve with various trading partners, it could be for exporting firms is steeper for small values considered that trade liberalization had a of the female-to-male employment ratios as positive effect on average wages. However, compared to their non-exporting counterparts; one must be cautious about reaching such a on the other hand, the situation reverses as general conclusion, since this framework does the female-to-male employment ratios get not allow for testing a causality relationship higher. That is to say, the negative relation between average wages and female between wage and female employment is employment. Therefore, the higher wages more striking for the exporting firms with a for exporting firms could be the result of small female workforce; however, the contrary other factors, including hiring relatively more is true for exporting firms employing a productive workers with more experience and larger number of female employees. Finally, better training or employing more intensively for almost all female-to-male employment white-collar workers.

35 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 36 an empirical issue. women.against Ultimately, results arethe net previously existingdiscriminatorybehaviours effect onfemale byeliminating employment competition could create apositiveimport women workintensively; alternatively, greater by creating acontraction wherethe sectors in could negatively affect women’s employment male-dominated. Similarly, competition import to be tend these industries to declinebecause mining andquarrying, femaletends employment increase suchas inindustrial sub-sectors exports in female employment.the otherhand, On if garments, is often accompanied byanincrease technology intensity,low textiles and suchas an increase inlabour-intensive with exports the economy.composition of For example, trade ofhow as aresult affectsthe sectoral male- andfemale-intensive industriesdifferently the structure affect of andimports exports teaching manual (UNCTAD, 2014), increased industrial sector? the SADC outcomeson genderemployment in the effecttrade ofincreased is What openness oftrade Estimatingthegender impact 3.3 in the SADC and non-SADC export and import shares of GDP on total shares female ofGDPon the SADC inbroad employment andnon-SADCin ofSADC andimport sectors countries. export Note: Source: sector. However, of the impact whenlookingat effect onwomen’sthis shares employment in the findings,trade opennesshasnosignificant female inindustry. employment Accordingto the effectstradeto related of opennesson Table inAnnex1presentsthe results A1.4 oftrade Theimpact opennessonfemale 3.3.1 Figure 15 –0.05 –0.15 0.05 –0.2 –0.1 0.15 0.2 SADC: SouthernAfrican Development Community. coefficientsThe reported ofa1percentagethe impact increase point give 0.1 0 Calculationsthe UNCTAD inAnnex1. by tablethe results A1.4 of basedon secretariat employment intheindustrialsector employment openness in the industrial sector openness intheindustrial Regionally differentiatedRegionally effects oftrade opennessoffemale inindustry employment Exports/GDP 0.1792 SADC 73 As discussed in the core Asdiscussedin Imports/GDP –0.1511 SADC SADC andnon-SADC shares, import the estimates of the otherhand,the impact whenlookingat increase inbothSADC andnon-SADC exports. On industries have ofan expandedasaresult female-intensivethat to indicate This seems effects are identical also almost inmagnitude. SADC andnon-SADCtrading partners. two These shares forassociated withincreased both export ispositivelythe industrialshare sector in the findings,Based on the female employment tradetrade and withexternal partners. analysis distinguishes betweenintra-regional inindustry.employment Inparticular,the (measured asashare ofGDP)onwomen’s differentiated effects andimports ofexports Figurethe regionally 15summarizes differentiated effects onwomen’s employment. have andimports regionallywhether exports The analysis continues byexamining coming fromthe People's Republic ofChina. the surgeofcheapimports could beexplainedby competition.through import Inparticular,this forto beassociatedwithjobdestruction women this effect,Accordingto trade liberalization seems increase. decreasesemployment asimports In otherwords, femalethe estimatesrevealthat effect onwomen’s share employment inindustry. hand, (asashare ofGDP)have imports anegative activities as total exports rise. total exports as activities be explainedbyanexpansionoffemale-intensive (measured asashareexports ofGDP). This may in industryispositivelyto increasing related the onehand,the female share ofemployment the analysis reveals more interesting results. On the export-to-GDP andimport-to-GDP ratios, Exports/GDP Non-SADC 0.1788 Imports/GDP Non-SADC 74 –0.1185 On the other On Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b reveal that both have an adverse effect on female Since the early 1980s, economic activities in the employment. This seems to indicate that imports global economy have been increasingly organized

have displaced domestic industrial products, around global value chains. Transnational module especially in sectors that are female-dominated. corporations have divided production processes into segments and – based on profitability 3.3.2 The impact of trade openness on the gender calculations – have located different segments of employment gap in industry production in various parts of the world. A primary This section examines the effect of trade factor that explains a country’s participation in openness on the gender employment gap in global value chains is trade costs. High transport industry. Table A1.4 in Annex 1 presents the results, costs explain why many sub-Saharan countries which reveal that overall trade openness has no are not part of manufacturing value chains. In significant effect on the gender employment gap addition, services (especially finance, electricity, in industry. When looking at the impact of export water, and telecommunications) now represent the main sector attracting FDI in the world and import shares, their magnitudes are very economy (Balchin et al., 2016; UNCTAD, 2010). small. This indicates that both export and import shares (also considered at the regional level) have Improving the availability and the efficiency almost no effect on the gender employment gap. of the service sector is, therefore, key for development and for successful integration in In conclusion, the findings for industry seem to the world economy. Trade can be instrumental indicate that greater trade openness through in providing opportunities for employment and regionally expanding exports and imports affect stimulating efficiency. As discussed in Module women’s employment. However, since the gender 3, however, trade policies need to be designed employment gap seems to remain unchanged to account for the specific constraints faced by following increased trade openness in the sector, women in order to prevent gender inequalities male employment must be affected in a similar from becoming more acute (Coste and Dihel, way. 2013; Staritz and Reis, 2013).

4 Trade and gender in the service In SADC, services are now a primary source of economic growth. On average, services sector contribute to over 50 per cent of the region’s GDP. In Seychelles and Mauritius, services even This section explores the interplay between contribute to 73 and 85 per cent of economic trade and gender in the service sector in the growth, respectively. According to the World SADC region. Due to the lack of quality data Bank’s 2017 World Development Indicators, on the informal sector, the focus is on formal despite heterogeneity across countries, over services. The analysis presents the developments the last decade the contribution of services has in the service sector in the region, with a specific grown in all SADC countries. Only the Democratic focus on the growing relevance of this sector for Republic of the Congo and the United Republic of women’s employment. The analysis continues Tanzania have experienced a decline. with an assessment of gender outcomes associated with tourism – the largest share of Following liberalization policies in the service service exports – and an evaluation of how trade sector in the early 1990s that provided limited has affected women’s employment in the service market access to foreign suppliers of services, sector. in 1995 all SADC member states (except the Seychelles75) became members of the World 4.1 The role of services and SADC service Trade Organization (WTO) and undertook liberalization binding liberalization commitments through the General Agreement on Trade in Services (GATS). The development of services is essential both The Protocol on Trade in Services signed in 2012 for a country’s aggregate productivity and by SADC members emphasizes their obligations for its participation in global value chains. under the GATS. It does not contain requirements Many services, such as financial services, for liberalization, but instead establishes a telecommunications, transport services, and mandate to “progressively” negotiate the business, contribute to the production and sale elimination of obstacles to the free movement of of other goods and services. Retail and wholesale services. Specifically, it states the desire to create distribution is key for business competitiveness a single market for trade in services to achieve and profitability, and energy is at the centre of sustainable development.76 a country’s sustainable development. Finally, health and education are essential determinants Figure 16 shows the values of service imports of social well-being. and exports for the individual SADC countries

37 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 38 26% services Other regional integration). The magnitudeofservice same average between2005and2007(i.e. before the the regionto incomparisonunchanged in share ofeachcountry hasremained substantially the periodindicated. BasedonUNCTAD data, the US$27millionfor ofabout sector the service in ofservices,importer withanaverage trade deficit average The area for isanet the period2012–2015. the region asawhole,and considered asan Note: Source: allocated. not and services SADC: SouthernAfrican Development Community. information services, other businessservices, personal, cultural andrecreational services, government n.i. goodsandservices and pensionservices, financial services, chargesforthe useofintellectual n.i.e., property telecommunications, computer and services,transport, travel, andotherservices. disaggregated arethe following: into Otherservices further construction, ins availablenot for 2015. BasedonUNCTAD statistics, are services the following classifiedinto four maincategories: goods-rela Note: Source: Figure 17 Figure 16 60000 40000 20000 50000 30000 10000 SADC: SouthernAfrican Development Community. For Zimbabwe, dataare available onlyfor 2012; forthe Democratic Republicthe Congo, of Lesotho, andZambia, dataare UNCTADstat 2017). (accessedon25October UNCTADstat 2017). (accessed20October 0

Angola Exports

Botswana andexports, ofUS$) imports Services average (millions for 2012–2015 Composition of SADC services imports andexports, imports Composition ofSADC services 2016(percent) Congo, Dem. Rep. 0% related services Goods-

Lesotho Imports Travel 58% Madagascar

17% Transport Malawi

Mauritius 53% services Other

Mozambique value. 60 perabout total export of cent South source ofexports,the largest contributing the SADC in2016. by and exported Travel was importedFigure ofservices the basket 17shows tripled between2005and2015. almost change involves Angola, ofservices where imports process ofregional integration.77 striking The most trade flows, however, the hasincreased during

Namibia

Seychelles Exports South Africa Imports Swaziland

Tanzania, Un. Rep. of

Zambia

Zimbabwe 0% related services Goods-

urance SADC ted e., 33% Transport 14% Travel

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Africa is the primary site for tourism in the service sector (50.1 per cent). Around 43 per region, accounting for 58 per cent of SADC cent of men and about 62 per cent of women

travel revenue. The category "Other services" work in services (ILO, 2016). module accounted for about one-fourth of total export value (26 per cent), followed by transport Looking at individual SADC countries, (17 per cent). Other services also constituted consistent with the structural diversity of about half of total import revenue, followed the economies, there is great variation across by transport (33 per cent) and travel (14 per countries in the degree of female employment cent). Goods-related services – which consist in the service sector. Table 13 shows the share of "manufacturing services on physical inputs of female and male employment in the sector, owned by others and maintenance and repair comparing the average value in 2009–2016 services n.i.e." (WTO, 2017: 80) – are not part of with the average value in 2001–2008 in order to the SADC trade basket. evaluate potential changes since the creation of the SADC FTA.78 In many SADC countries, the 4.2 The relevance of the service sector for share of women employed in the service sector women’s employment is well above the share of men, and this holds true in both the periods considered. Angola, At the global level, slightly more than half Mauritius, and South Africa have the largest of the world’s workforce is employed in the shares of female employment in the sector.

Table 13 Male and female shares of employment in services, averages for 2001–2008 and 2009–2016 (per cent) Female Male 2001–2008 2009–2016 2001–2008 2009–2016 Angola 65.44 71.55 45.58 46.84 Botswana 69.06 68.29 46.56 48.04 Democratic Republic of the Congo 18.60 20.81 30.76 32.94 Lesotho 43.00 52.36 21.78 27.96 Madagascar 16.26 18.32 14.32 13.87 Malawi 16.30 18.18 29.82 32.43 Mauritius 61.93 76.31 54.18 62.24 Mozambique 13.84 14.30 26.48 27.48 Namibia 62.02 65.58 45.84 46.95 South Africa 81.32 84.58 55.40 58.70 Swaziland 50.91 53.04 64.09 65.64 United Republic of Tanzania 18.94 24.12 20.66 24.59 Zambia 16.82 26.20 24.22 36.05 Zimbabwe 18.09 25.31 23.13 23.76 SADC 34.79 37.46 33.13 35.44

Source: ILOSTAT (accessed on 25 October 2017). Note: Figures are not available for Seychelles. SADC: Southern African Development Community.

Table 13 is informative about the quantity of Table 14 presents the female-to-male employment, but it does not say anything employment ratios for sub-services for five SADC regarding the quality of the jobs in the sector. member states.79 It emerges that in most of those Women tend to be concentrated in precarious, countries, as compared to men, women are more low-pay, and low- and mid-skilled service positions heavily employed in retail trade, accommodation, (e.g. retail, restaurants, low-end information and food and beverages service activities. It should and communication technology services, be noted that, although female employment in secretarial positions), with little opportunity for financial services and insurance services appears promotion. This seems to suggest that women to be high, the employment share of financial do not have access to the same occupations as services in total services in these countries is men. In addition, even when women work in very low.80 For this reason, the total impact of the same occupation as men, they have fewer this sub-sector on women’s welfare is marginal. responsibilities and lower compensation than Additionally, women typically tend to hold more men, not for reasons related to education or clerical occupations rather than managerial experience (SADC, 2016; Staritz and Reis, 2013). responsibilities.

39 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 40 2016 for Namibia, and2014for SouthAfricathe UnitedRepublic and of Tanzania. SADC: SouthernAfrican Development Community. Note: Source: to increase regulatory cooperation among SADC Development of Tourism (1998)was introduced sustainable development. The Protocolthe on fortourism asapriorityand an instrument Since itsestablishment,the SADC hasidentified and one-fifthtotal exports, of respectively. Tanzania andMadagascar, to one-fourth isclose it totalthird exports; of a forthe UnitedRepublic of Mauritius andSeychelles,tourism makes upover an essential earnings. percentage ofexport For some countries, however, tourism constitutes There isextensive variation across countries; for each SADC countrytotal asashare exports. of share ofreceipts from internationaltourism for exchangethe region. –in Figure 18illustratesthe revenuethereforesource –and ofexport foreign tourism sector. is,The sector infact, the largest present excellentthe investment in opportunities resources andfavourable that climaticconditions The SADC region isendowedwithabundant natural Tourism andgender outcomes 4.3 the unequal payexperiencedbyfemale workers. medium-skilled jobs–isamajorcontributorto –withwomenprevalentlysector holdinglow-to- gap. Women’s the service jobsegregation in the genderwage explain time cannot in work number ofweeklyhours, differencesthat hinting the same to workabout tend the sub-sectors menandwomenin that hours perweekshows Africa. inSouth percent inMauritius,cent and35 per inMalawi, percent 38 inAngola,cent 46 is61 per sector gender wagethe service gapin the UNCTADon calculations by secretariat,the other occupationgroups. For example, based those in comparedto the highest are sector SADC region, wage differentials the service in wage gapexistsfor allthe occupationgroups in Concerning wages, although gender asignificant nuac ciiis10 .018 1.00 1.29 0.50 1.34 1.86 1.43 5.16 1.22 1.24 0.56 2.63 0.02 1.00 0.28 0.04 1.39 1.69 1.75 1.12 2.18 0.11 1.00 0.52 0.14 3.55 1.25 0.83 2.21 1.38 0.08 0.33 1.04 0.06 0.48 1.29 0.75 1.00 1.05 0.08 0.80 0.47 0.03 1.50 2.86 Insurance activities 2.00 Financial services 0.04 Telecommunications 0.74 0.03 Health activities Food andbeverages Accommodation Land transportation Retail trade Wholesale trade Construction Table 14 The female-to-male ratios are calculated fromthe datapoints of2012for Madagascar, 2015and2016for Mauritius, 2014and Calculationsthe UNCTAD by the datafrom basedon ILOSTAT secretariat 2017). (accessedon3October 81 Comparingthe meannumberof working Female-to-male employment ratiosFemale-to-male employment insub-sect Mdgsa artu aii SouthAfrica Namibia Mauritius Madagascar investmentthe region. in the level of tourists and the numberof increase infrastructureto the priorityareas constitute quality of service, safety standards, andphysical countries. improvingthe The protocolthat states acrossthe sector andharmonize to boost transport tourism improvingthe quality of tourism statistical data;(ii) sharing and(iii) members by(i)developing common standards; across the world thetourism sector has twice investment requirements. that isestimated It entrepreneurship withlow opportunities Tourismthe potentialto provide has women inmanagerial positions(UNCTAD, 2017b). of female employment, female ownership, and trade,and retail proportion havethe highest restaurants sector,together withwholesale workers are aged25or younger. The hoteland tourism labour force,the of those andhalf of percent women make upbetween60and70 Regarding workforce composition, worldwide 2,000tour guideswere women(UNCTAD, 2017b). United Republic of Tanzania fewerthan 10 ofabout tour guideswere women,only 66 the whereas in women.biases against In2015, in reflects stereotypes andculturalthat segregation ismarked andhorizontal byvertical the sector underpaidactivities.and most Inotherwords, vulnerablethe most in to participate tend men) responsibilities. However,than women(more forto family opt part-time workdue must limited educational qualifications andwho benefits women,those whohave especially inothersectors.opportunities This situation much time without labour for market the first people, migrants,the andpeopleentering workers, also for but low-skilled workers, young through jobsfor opportunities high-skilled Tourism offers income andentrepreneurship ors of services in selected SADC countries inselected ors ofservices 82 United Republic of Tanzania Botswana Botswana Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Figure 18 International tourism receipts as a percentage of total exports, 2015 module 40

0 Congo, Angola Malawi Zambia Lesotho Namibia Tanzania, Botswana Dem. Rep. Mauritius Seychelles Swaziland Un. Rep. of Zimbabwe Madagascar South Africa Mozambique

Source: World Bank, World Development Indicators database (accessed on 25 October 2017). Note: The latest data available for Madagascar are for 2013. as many female employers as other sectors are heavily involved in small-holder agriculture (WEF, 2017). However, gender gaps in women’s (especially in horticulture). Thus, tourism outlets entrepreneurship in the SADC region remain sourcing from small agricultural producers could high. According to the 2017 Ease of Doing provide jobs and entrepreneurship opportunities Business Index (World Bank, 2017), SADC countries for women in the rural non-farm economy. continue to perform poorly in categories such Based on UNCTAD (2017b), the following are “getting credit” and “starting a business.” possible measures to reinforce forward linkages Women do not automatically benefit from trade and promote women’s participation in the liberalization in tourism. Indeed, most of the tourism sector: value added in the tourism sector is captured by • Supplying high-value horticultural products foreign investors, international tour operators, to tourism establishments and airline companies. Limited benefits remain within the country of destination and down along • Participating in new types of tourism the tourism value chain. Strengthening cross- activities, such as agri-tourism (see box 7) sectoral linkages and promoting diversification • Facilitating market opportunities for local of both low- and high-value activities is essential handicrafts by organizing markets in tourism to promote greater income opportunities and establishment premises and through a fairer distribution of earnings in the sector coordinated visits to local markets (UNCTAD, 2017). This approach could also • Using joint ventures to help ensure the transfer contribute to the protection of local environments of economic benefits to local communities and cultures. For example, women in the SADC through rents, royalties, and lease fees.

Box 7 Agri-tourism Agri-tourism refers to tourism linked to agricultural products and facilities. It constitutes an innovative development WITHPOTENTIALTOBENE½TWOMEN´SEMPLOYMENT!GRI TOURISMDOESNOTREPRESENTABREAKWITHFARMING BUTRATHER the continuation of an active farm operation. The development of agri-tourism can also help provide women with economic incentives to protect traditions and natural resources at the basis of this activity. This would help avoid further degradation of natural resources and erosion of local cultures.

In South Africa, small-holders have established successful agri-tourism-related activities in Limpopo Province. A project initiated there by a commercial enterprise harvesting baobab fruit over 2006–2010 hired over 1,500 HARVESTERS MOSTLY UNEMPLOYED WOMEN 4HE PRODUCE ITSELF HAD A SPECI½C MARKET OF DESTINATION IT WAS SOLD AS an ingredient for cosmetic and food markets. Additionally, because the largest baobab tree is in this area, many tourists visit there, opening up opportunities for women harvesters, who have responded with the development of agri-tourism activities such as farm-stays and tourist participation in harvesting and agri-processing.

Source: (UNCTAD, 2017b).

41 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 42 gap in services willbepresentedgap inservices separately. andforemployment the genderemployment the previous sections,the findingsfortotal female the SADC region. in inservices employment Asin tradethe effect of liberalization onwomen’s manufacturing sectors, examinesthis section the agriculturethe analysis and of to Similar oftrade Estimatingtheimpact openness 4.4 by local artisans. allowmight agreatertourism benefits capture of tourism value chainwithfew ornointermediaries the integrationthe enterprises ofartisanal in those communities. For example, guaranteeing to tourism-related benefits the distributionof outlets andlocal communities could facilitate tourism between Synergies andpartnerships promoting innovationthe sector. in andgrowth entrepreneurship also beencouraged must by fortheir opportunities promotion. Women’s the choiceofjobsavailableto womenand inplace.should beput This wouldincrease with target skill initiatives that development, gap, educationandvocationaltraining, along the gender to bridge that (2017b) also suggests in empoweringwomeneconomically. UNCTAD tourism enterprises role canplayasignificant Accordingto UNCTAD (2017b), publicpoliciesand in services. Additionally,the export-to-GDP and the female-to-maleeffect on ratio employment trade findings reveal opennesshasno that the female-to-male ratio. employment The the effectstradeto related of opennesson Table A1.5inAnnex1also providesthe results Resultsforsectoral gender-based 4.4.2 trade,retail restaurants, andpersonal services. capital accumulationpotential suchassmall traditional, low-productivity withlow services ofwomen’sbe aresult concentrationthe more in sub-components onwomen’s could employment effectsinsignificant trade of opennessandits effect onfemale inservices. employment The to have appear any donot significant imports GDP shares ofSADC andnon-SADC and exports share inservices. ofemployment Finally,the total the to haveshare on seems any impact Moreover, the import nor the export neither sector.of femalethe service in employment the share effectopenness hasnosignificant on in services.the findings, Accordingto trade effectstrade of opennessonfemale employment Table A1.5inAnnex1presentsthe the results of in Resultsfortotalfemaleemployment 4.4.1 employment inequalities employment services on women inservices same could apply to men).same could apply women’sthe (and inotherservices employment bypossiblenegativebalanced effects out on be might services incertain employment positive effectstrade of opennessonwomen’s on bothmenandwomen; alternatively,the liberalization having inservices similareffects unchanged.the sector tradeto This maybedue to leave gapin the genderemployment tends trade opennessinservices that be concluded of GDP)are also very small. Therefore, could it (calculated asashare andexports of imports Accordingly,the regionally differentiated effects the female-to-male ratio employment inservices. import-to-GDP ratios showminimal effects on segregation. Suchobstaclesundermine women’s rural womensuffer from occupational training. Asfar isconcerned, asemployment inputs andresources suchasland, credit, and women’sto limit tend and norms to key access customary lawandcultural norms. Those laws genderbiasesare stillrootedthat in suggests the SADC region,In the gendergapinagriculture agenda. the genderequalityinstitutions inimplementing and limitedcoherence betweenpoliciesand in chargeofgenderequality inpolicy-making, the institutions insufficient of participation availability ofgender-disaggregated statistics, and economic development, inadequate the links betweengenderequality knowledge on the SADC,mainstreaming in includinglimited constrainthat gender flaws persist important these commitments,Despite however, several the eliminationofgenderdiscrimination. women’stool supporting and empowerment and entered into force in2012,the primary is and Development, whichwas signedin2008 was established. The SADC Protocol onGender create agender-sensitive community sinceSADC SADC membershaveto shownacommitment still pervasivethe SADC region, in though even men andwomen. Infact, genderinequality is the labour force rate participation between disparities ineducation, percapitaincome, and gender-related outcomes,there are significant the economies.composition of Asregards both socio-economicthe sectoral conditions and of development, isheterogeneousterms of in region, composed ofcountries different at stages teaching manual (UNCTAD, 2014). The SADC three modulesof the in Volumethe core 1of SADCthe concepts region presented byapplying tradeThis moduleexaminedthe genderand in Conclusion: Summaryandpolicy 5 recommendations Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b productivity compared to men’s, making women liberalization on women’s employment outcomes underachievers of competitive advantage. in manufacturing. The results (based on a

While most women are still concentrated in microeconomic analysis) show that a reduction module subsistence agricultural and unpaid family or dismantling of export tariffs imposed on intra- work, trade liberalization has led to an increase SADC trade had a positive effect on the share of in wage employment opportunities. However, female employment in manufacturing firms only trade liberalization may turn gender inequalities for production workers; the impact was found not into a source of competitive advantage; women’s to be significant for non-production workers. On lower pay, in fact, makes them a profitable source the other hand, export tariff liberalization with of labour for firms that face stiff competition in non-SADC countries seems to have had a negative the international markets. effect for blue-collar production workers, which supports the defeminization of labour in certain The empirical analysis presented in this activities. The results discussed in this module module points to a negative impact on female also reveal that trade liberalization affects employment in agriculture of an increase in women differently based on their skill levels; in exports (as a share of GDP) with countries addition, the effect of changes in both export and outside the SADC region, which might reflect import tariffs on women’s employment varies an expansion of male-dominated sub-sectors across trading partners as a result of differences following trade liberalization. On the other in traded products or specialization patterns. hand, both SADC and non-SADC imports (as a share of GDP) are associated with a positive According to the results, when all firms are impact on female employment in agriculture. considered, tariff reductions on imports coming Increased competition in agriculture following from other SADC countries do not have any impact trade liberalization may increase women’s on female employment for overall workers or for employment, as women tend to be a cheap workers in production and non-production tasks. source of labour. In addition, there may be an Reductions in import duties on intra-SADC trade, increase in imported inputs and intermediate however, seem to increase female employment goods in female-dominated sectors, in turn in production tasks of exporting firms. supporting women’s employment. Finally, when Using a different empirical approach (based on looking at the effect of trade openness on the a macroeconomic analysis), this module has gender employment gap in agriculture, the also evaluated the impact of trade openness on findings suggest that trade openness tends to women’s employment in industry. The analysis be more beneficial to men than to women. suggests that increased exports are associated The manufacturing sector has special with an increase in total female employment in importance for SADC because industrialization industry. This implies that the growth in exports is recognized as one of the leading objectives of has been associated with an expansion of economic development and regional integration. female-intensive industries. On the other hand, Moreover, manufacturing employment tends the empirical results indicate that an increase to offer higher wages and potentially provides in imports is associated with a decrease in total more stable job opportunities compared to female employment in industry. This suggests the agriculture and low-skilled service sectors. that, following trade liberalization, imports Feminization of labour has become a typical tend to replace women’s employment. These process in the manufacturing sector, which has effects are similar for both female and male been used as a strategy to minimize production employment, leading to the conclusion that costs when facing competition in global markets. gender employment inequalities do not seem to However, as industrialization advances and firms be affected by trade openness in the industrial expand in capital-intensive sectors (which are sector. male-dominated), the opposite phenomenon has been observed, referred to as the defeminization With regard to the service sector, this module of labour. has focused on formal services only due to the lack of quality data on the informal sector. In the This module has analysed women’s employment SADC, the service sector now contributes to over in EPZs within SADC. Although most SADC 50 per cent of the region’s GDP, and is a growing countries have implemented EPZs, it is still sector providing employment opportunities unclear whether such zones are ultimately to women. Although agriculture remains the beneficial to women. While they have created primary source of employment for women, formal employment for women, a number of since the early 2000s female employment has factors, including poor working conditions, make shifted away from agriculture towards services. EPZs questionable for women’s welfare. This Regarding occupations in the sector, women module has also explored the effect of trade tend to be concentrated in precarious, low-pay,

43 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 44 and entrepreneurship” and their“[r]eview fortradeand opportunities womenand menin laws which ensure equalenact access, benefit memberstates that policiesand“[a]dopt this module,the protocol 17of requires Article trade,regardto asmentioned 1of in Section forequal opportunities menandwomen. With member statesuseaffirmativeto ensure action Gender andDevelopmentthat requested continueto face. The 2008SADC Protocol on traditional womenthat discriminatorynorms the economic constraints alleviate that and there isaneedfor complementary policies gender equality andwomen’s empowerment, caneffectivelythat development promote To ensure aninclusive process ofeconomic housework andcare responsibilities. the lion’sto hold disparities and share ofunpaid In addition, womencontinueto endure wage employment, includinginformal employment. dominate low-skilled andvulnerable forms of and move upvalue chains. Women continueto commodities, promote productive capacity, countriesto reduce dependenceonprimary development remains akey challenge for SADC towards services. industrial Supporting economies hasshifted away from agriculture the structuraldecades composition ofSADC this analysis hasdemonstrated,As over recent services. as smalltrade, retail restaurants, andpersonal with lowcapital accumulationpotential, such traditional,the more in low-productivity services gap. to women’sThis maybedue concentration female the genderemployment and employment sector,the results reveal effects nosignificant on on female the service outcomes employment in trade of openness the impact When lookingat for for creating newjobopportunities women. such asagri-tourism, have potential significant women. Recent developmentsthe sector, in to stereotypes andculturaltowards prejudices andhorizontalboth vertical discriminationdue least-paid activities. Tourism, infact, suffers from vulnerablethe most and in to participate tend of welfare for women. Women, however, often thus could potentially sector beapositive source providing entrepreneurship opportunities. The forthrough women employment, aswellby the region. in sector Tourism offers opportunities revenue sourceforthe service ofexport the largest men. Tourism hasspecial relevance is becauseit the sameoccupationsas haveto do not access promotion. women inservices that This suggests secretarial jobs, for withlittleopportunity technology services,and communication and such asretail, restaurants, low-end information and low-skilled positions andmid-skilledservice be supported andstrengthened.be supported (Shayo,their activities 2012). These effortsto need to mainstreamtrade genderin to enable experts Training hasalsothe SADC strived GenderUnit by building forthe relevant all SADC institutions. to facilitatetraining gender Unit andcapacity- the SADC Gender the missionof of ispart It to enforce skills necessary gendermainstreaming. policymakersthat haveto ensurethe planning building ingenderanalysis, budgeting, and SADCto invest more also needs incapacity- capacity.their datacollection developing memberstatesin to support mechanisms gender-disaggregated dataandintroducing up regional guidelinesfor ofthe collection (UNCTAD, 2017c). SADC could consider setting negative effects orreinforce positive ones complementaryto eitheroffset measures tradeof policiesonwomen,to design and the impact to estimate makes possible that it releasedan instrument byUNCTAD in2017 UNCTAD’sGender Toolbox. Tradeand is This trade of gender assessment reforms using anex-anteto carryout to beable also needed policies. The availability ofgenderstatisticsis requiredto designeffective gender-aware the capabilitiesto develop step important purposes.this obstacleisavery Addressing nor regular useofgenderstatisticsfor policy In SADC,there isneithersystematiccollection gender mainstreaming policiesandpractices. areto adequately inform anessentialtool dimensions ofgenderinequality. Hence,they the multiplethe lives ofwomenand monitor to measureGender statisticsare and necessary other government functions. andgender ministriesordepartments the powerimbalancesaddressing between progresstowards genderequality requires involvedactively indecision-making. Supporting of promoting genderequality are also often not government activities. The institutionsincharge remain marginal incomparison withother andgenderfunctions to genderdepartments (SADC, 2016). Nonetheless, allocations budget implementation ofgendermainstreaming the effectiveto ensure adoptionand nationalhave ministries upinmost beenset within otherministries. Genderfocal points locatedministries orgenderdepartments SADC memberstateshave eithergender 17.Article the prescription fullycomplied of with yet not towards genderequality,trade policyhas but frameworksthe commitments inlinewith countries have established clearinstitutional to makethem genderresponsive.” AllSADC tradenational andentrepreneurship policies, Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Enforcement of the protocol requires institutional Well-designed vocational training is a useful government action, but also a cultural shift instrument to improve women’s financial and

away from traditional gender stereotypes. economic literacy and equip them with the module Education and awareness programmes can necessary skills to seek out jobs associated with play an important role in transforming gender greater labour protection and better economic relationships. Such programmes can help reduce opportunities. In addition to reducing existing violence against women and support women’s gender gaps in formal education, educational bargaining power within the household and in partnerships could be established between the society. private and public sectors, including on-the-job training and skill development programmes As discussed in Section 1, women are dominant that could be effective in providing women with in the informal sector, so supporting women’s the skills required by jobs in higher-value-added economic livelihoods requires policies that activities in manufacturing and services. In specifically target women in this sector. Section agriculture, improving extension and advisory 2 emphasized the role of informal cross-border services to female farmers would facilitate trade for women’s livelihoods and for total intra- access to new skills and technologies that are regional trade in the SADC. In 2011, SADC approved key to participating in trade and production its Advocacy Strategy on Informal Cross-Border opportunities in higher-value-added niches. Trade, which commits to recognizing informal In this regard, gender value-chain analyses are trade as an accepted sector through coordinated important to identify the areas where there is policy and legislative action, in turn creating a a need to develop women’s skill and business more favourable trade environment for informal knowledge. As things stand, however, training cross-border traders, most of whom are in fact and information dissemination specifically for women. Most SADC countries, however, have women is still limited. not yet complied with trade mechanisms that In addition to these educational measures, support informal traders (e.g. tariff bands and enforcement of laws against gender-based simplified custom and immigration procedures) discrimination and full adherence to the 83 (Mirand, 2015). It is also necessary to put in ILO core conventions of non-discrimination place awareness campaigns about rules and and equality of opportunity and treatment procedures governing trade and ensure that they are essential to ensure that women can reach women traders, who tend to have limited successfully participate in the expanding knowledge about how to trade across the borders sectors. Job placement agencies could also in compliance with the law. More understanding facilitate the integration of women in these of rights and obligations at the border could sectors. facilitate the shift from informality to formality. As agriculture continues to constitute the core To help women become more competitive both sector of the SADC economies, strengthening in the formal and informal economy, it is key land rights for small-holder farmers – and that policies tackle women’s unequal access to especially women – is a priority area to financing, training, and resources. This would promote long-term investment, women’s help women as producers and traders reap competitiveness, and the development of greater economic benefits from the process of rural communities. SADC should issue tenure regional integration. With regard to finance, guidelines and protection rules that could policies could consider fostering models that serve as a reference framework to set up are alternatives to commercial banking (e.g. country-specific tenure arrangements (Oxfam, solidarity finance schemes) in order to promote 2015). local development and support women’s ability To ensure that paid work can be reconciled with to make capital investments and purchase key family responsibilities, family-related policies inputs (Mirand, 2015). Alternatively, governments are crucial. Unpaid work responsibilities have could intervene to reduce the traditional market direct implications for women’s successful risks associated with providing financing to participation in the economy under trade women by using such policy measures as reforms because they can constrain women’s guarantee options, tax incentives, a combination ability to take on paid work and influence of grants with commercial loans, and insurance women’s productivity, especially as farmers. schemes (Oxfam, 2015). Policy incentives in the Paid maternity leave (through a combination of form of targeted subsidies, tax credits, and employer and state funding) and government- technological investments could also help subsidized or government-funded child care support the expansion of production and trade facilities are critical institutions to address in higher-value-added activities. the traditional gender division of labour that

45 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 46 encourage betweendomestic partnerships throughcan beachieved programmes that fromgoods andservices local suppliers. This by encouraging purchases ofintermediate commercial linkagesthe local economies with tax incentives)and to ensure positive need FDI(e.g.frameworksthroughto boost financial these measures,the context ofall In policy economy. informationthe value on the ofunpaidworkin policymakersthat haveto ensure more accurate step wouldbeanimportant time-use surveys of to unpaidresponsibilities, more widespread use imbalance betweenmenandwomenwithregard the economythe the visibilityof andincrease Tothe role on ofunpaidlabour shedlight in with care responsibilities. to women makesthem accessible that manner related capacity-building programmes ina 2011). reproductivethe economy sphere of (Smit, makes womenprimarilyresponsible forthe 84 It is also important to design trade-to design isalso important It could behelpfulaswell. the economy womenin programmesto support the economypractices in andintroducing award to besupported.this regard, In sharinggood collective action, need andpolicyengagement platformsthat formeans women’s advocacy, the realitytheir needsandconstraints. of This themselves caninform policy-makers about those policies.women indesigning Onlywomen effective of the participation mannerwith and producers canonlybeformulated inan traders, womenas to support seek workers, Finally, that policies that to note isimportant it represented groups (includingwomen). businesses,those employingunder- particularly international enterprises andsmall domestic diversity byincentivizing linkages between initiatives could especially foster supplier (Braunstein, 2008; World Bank, 2018). These women’s entrepreneurship andemployment level productivity, local skilldevelopment, and and foreign promotethat firm- enterprises Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Exercises and questions for discussion

1. How did the composition of SADC trade and trade partners change before and after SADC module integration? Related to this, what is the primary challenge for most SADC countries regarding international trade?

2. How did the sectoral composition of employment change for male and female workers in SADC countries in the era of regional integration?

3. How have gender issues been addressed in the institutional development of the SADC? In your answer, please consider both achievements and ongoing challenges.

4. What does mainstreaming gender in trade policy mean? Explain how gender issues are incorporated into trade policy in the SADC region. What are the primary obstacles for mainstreaming gender in trade policies?

5. What does the gender agricultural gap refer to? What factors drive the gender agriculture gap in the SADC region?

6. What does it mean to be “sources of competitive advantage” and “underachievers of competitive advantage” for women in the context of agricultural employment in the SADC region?

7. What are the primary objectives of SADC regional agricultural development? Where do gender equalities stand in those policies? What are the main constraints faced in the implementation of those policies?

8. What are the possible effects of trade openness on female employment in agriculture? How did export and import shares of GDP affect female employment and the gender employment gap? What factors might drive those results?

9. What role have export processing zones played in women’s shift to formal employment in the SADC region? Briefly discuss the effect of those zones on gender inequalities.

10. Which factors explain the “feminization of labour” and the “defeminization of labour” in the manufacturing sector? Which of the two phenomena seems to apply in the SADC countries?

11. How has tariff liberalization affected gender equality in production tasks and non-production tasks in SADC manufacturing? Explain both theoretical and empirical results.

12. Based on the data presented in this module, what is the relationship between female employment and average wages in the SADC region? What can be said about the effect of trade liberalization policies within and outside SADC on the earnings and working conditions of women in the SADC manufacturing sector?

13. What are the features of female employment in services in SADC? What are the existing challenges that women face in the service sector?

14. What kind of policies can be implemented to reinforce forward linkages of sectors and promote the participation of women in the tourism sector?

15. What can be said about the impact of trade liberalization on gender equality in the service sector in SADC?

47 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 48 male ratios employment to evaluate are used the the agriculture isused. sector in Also, female-to- outcomes,total sharethe ofwomenemployed tradethe effect of openness onwomen’s labour subcomponents ona regional basis. To evaluate tradeto decompose opennessandits used the UNCTADstatstates from database isalso tradeInformationthe structure ofmember on Bank’s World Development Indicatorsare used. women’s employment, datafromthe World Totradethe effect measure of opennesson Dataandmethodologytoestimatethe A.1.1 ANNEX 1 in the regressionsin are represented by and othercontrol variables. Unobservable factors tradeto unrelated openness, itssubcomponents, for any areto all shocks countries commonthat representstime-specific fixed effects to control where outcome inagiven broad for sector country time TO ratio gap.the genderemployment to measure the female-to-male shareemployment aswell and represents oneoffour control variables, and it is the correspondingtrade is openness, ITO t SADC countries oftradeimpact opennessonwomen in .that Note FEO it in the second specificationrepresent in it denotes the female denotes employment FEO representstotal the both = = = σ =1 2 1 1 1 + + σ =1 4 U 2 it + . ETO

i σ and =1 2 X ĳ jit it t + +

1 σ Bank Enterprise Surveys. manufacturing calculated from sector World the types within across andoccupation sectors female outcomes employment differentiated Table A1.2presentsthe descriptive statisticson statisticsonfemale-to-male Descriptive A.1.2 takesthe value of1for SADC and2for non-SADC. indicator forthe SADC andnon-SADC groupthat openness, respectively. Finally, componentstrade of andimport the export inequalities. trade of opennessongenderemployment impact the module are the following:the moduleare equations forthe macroeconomic modelusedin other socio-economics factors. The estimated characteristics suchasreligion, culture, and to control helps it forthat country-specificis estimation method. The advantagethis model of fixed-effectthe paneldatamodelisusedas agriculture, manufacture, andservices. The the broad of sectors ineachof employment Three specificationsare estimatedfor women’s shares inGDP. andimport export as regionally differentiated SADC andnon-SADC components, shares, andimport export as well tradetotalthe shareare inGDPanditssub- of =1 4 + sector inSADC sector ratiosemployment inthemanufacturing

σ + =1 4 85 The primaryvariables ofinterest

+ + + k is a particular isaparticular Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Table A1.1 Estimates of the impact of trade openness on female employment in agriculture

Female employment in agriculture Female-to-male employment ratio in agriculture module

0.0093 -0.0192*** Trade/GDP (0.0295) (0.0048) -0.1557*** -0.0450*** Export/GDP (0.0490) (0.0116) 0.1524** 0.0032 Import/GDP (0.0602) (0.0069) -0.0501 -0.0336** SADC Export/GDP (0.1537) (0.0122) 0.1729** SADC Import/GDP 0.0040 (0.0071) (0.0630) -0.1575*** Non-SADC Export/GDP -0.0456*** (0.0120) (0.0451) 0.1182* Non-SADC Import/GDP 0.0012 (0.0074) (0.0574) -5.2687*** -2.3009 -1.9504 0.8737*** 1.3376*** 1.3591*** Log(GDP per capita) (1.4750) (2.0547) (2.0339) (0.2557) (0.3430) (0.3357) 9.3457 10.3706 4.6469*** 5.0698*** Log(population) 6.6405 (6.1338) 5.1892*** (0.8859) (6.0890) (6.3892) (0.7849) (0.8570) -0.4430*** -0.4582*** -0.4981*** 0.0164 0.0140 Urban population share 0.0106 (0.0104) (0.1202) (0.0992) (0.0957) (0.0144) (0.0114) 0.1329*** 0.0282 0.0452 -0.0311*** -0.0475*** Foreign direct investment -0.0464*** (0.0086) (0.00564) (0.0685) (0.0605) (0.0094) (0.0089) R-squared 0.347 0.399 0.416 0.542 0.592 0.595 Number of observations 290 290 290 290 290 290

Source: Calculations by the UNCTAD secretariat. Note: Driscoll-Kraay standard errors in parentheses. To obtain heteroscedasticity and autocorrelation robust Driscoll-Kraay standard errors, the user written command xtscc by Hoechle (2007) in Stata was used for the estimation of the fixed-effect panel data models. *** Significant at the 1 per cent level. ** Significant at the 5 per cent level. * Significant at the 10 per cent level. SADC: Southern African Development Community.

Table A1.2 Descriptive statistics on female-to-male employment ratios within firms by sector

Overall female-to-male Production female-to-male Non-production female-to-male ISIC Rev. 3.1 sectora employment ratio employment ratio employment ratio

Min Mean Max Min Mean Max Min Mean Max Food 0.00 0.54 11.00 0.00 0.56 13.15 0.00 0.62 10.00 Textiles 0.00 0.87 9.00 0.00 0.52 5.00 0.00 0.43 1.20 Garments 0.00 1.88 15.67 0.00 2.33 31.50 0.00 1.04 9.00 Leather 0.00 0.47 1.50 0.00 0.35 1.33 0.06 1.41 2.50 Wood 0.00 0.14 0.77 0.00 0.16 3.00 0.00 0.49 2.00 Paper 0.07 1.36 9.77 0.00 1.48 12.50 0.33 1.25 2.75 Publishing 0.00 0.61 5.00 0.00 0.72 10.00 0.00 0.93 5.00 Refined petroleum 0.27 0.62 0.96 0.18 0.55 0.93 0.60 0.88 1.17 Chemicals 0.00 0.48 3.00 0.00 0.43 4.00 0.00 0.66 5.00 Plastic and rubber 0.00 0.26 3.33 0.00 0.21 3.89 0.00 0.54 6.50 Mineral 0.00 0.35 2.96 0.00 0.36 4.00 0.00 0.66 8.00 Basic metals 0.02 0.13 0.21 0.00 0.05 0.25 0.14 0.66 1.00 Fabricated metals 0.00 0.27 4.83 0.00 0.32 9.00 0.00 0.72 4.00 Machinery 0.00 0.24 1.33 0.00 0.18 1.50 0.00 0.59 4.00 Electronics 0.02 0.61 3.81 0.00 0.61 3.81 0.00 0.78 3.33 Motor vehicles and trailers 0.05 0.13 0.23 0.00 0.04 0.11 0.11 0.38 0.67 Other transport equipment 0.43 1.09 1.75 0.31 1.09 1.86 0.80 1.11 1.43 Furniture 0.00 0.17 1.33 0.00 0.18 2.67 0.00 0.54 3.00 Source: Descriptive statistics calculated from the World Bank Enterprise Surveys for the countries mentioned in Section 3.2.2.1. a ISIC Rev 3.1 refers to the International Standard Industrial Classification of All Economic Activities, Revision 3.1.

49 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 50 in almost all sectors,in almost all median sincealmost representationthe workplace ofwomenin using box plots. The figurethe under- shows the overall female-to-male ratios employment these descriptiveFigure statisticsfor A1.1plots non-production, andoverall workers. Similarly, figures employment reported for production, isobtainedfrom ratioemployment that yearly representsthe female-to-malethe log changein the world. of rest Additionally, Δ Africa, 3forthe European Union, and4forthe takesthe value of1for SADC, 2for sub-Saharan indicatorfortradingparticular each groupthat where fixed-effectto control paneldataestimationis model specifiedbelow. The reason forthe using fromthe fixed-effectthe paneldataestimationof table A1.3areThe results in obtained reported oftariﬀ Methodologytoestimatetheimpact A.1.3 The circlesthe outliers. are the medianobservation.correspondsto The horizontalto abox linesattached are ranges forto beanoutlie anobservation not Notes: Source: ݐ݅݋ܴ݈ܽ݁ܽ݉݁ܨο Figure A1.1 Other transportequipment Motor vehiclesandtrailers the observations (precisely,the majorityof The figure gathers third quartile).the to quartile fromthe first l The vertical Calculationsthe UNCTAD by the basedon secretariat World BankEnterprise Surveys. changes onwomeninSADC countries i refersthefirm,to Refined petroleum Plastic andrubber Fabricated metals Basic metals Electronics Publishing Machinery Chemicals Furniture Garment Minerals Textiles Leather ௜௧ Wood Paper Food ൌ෍ߚ ௝ୀଵ ସ t denotes time, denotes and Female-to-male employment ratiosFemale-to-male employment across sectors 015 10 5 0 ௝ ο ݂݂݅ݎݐܶܽݎݔ݌݋ܧ Female Ratio j is a

௜௧ ௝ respectively, inagiven year. Finally, tariff changes, andimport the logofexport time-invariant, firm-level fixed effects, and surveyed in the dataset. in surveyed the presencethe sectors ofoutliersfor of most the boxes insectors. The figure also suggests the lowerboundof observationsto are closer Δ changes onfemale labour outcomes: be interpreted aswithin-firmeffectstariff of (which allows for amicroeconomic analysis) can Therefore,the followingthe estimationof model potentially unrelated tothetrade environment. affect genderlabour outcomes, andwhichare for might that firm-specificcharacteristics unrelated totariff changes, areto allshocks countries commonthat time-specific fixed effectsto control for any the parametersto beestimated, denotes the idiosyncraticdenotes errorterm. ൅෍ߜ Export Tariff ௝ୀଵ ସ ௝ ο ݂݂݅ݎݐܶܽݎ݌݋݉ܫ andΔ Import Tariff ௜௧ ௝ ൅߮ ȝ i refers tothe ĳ ௧ t ȕ represents ൅ߤ and denote ௜ ൅ߝ į are ine İ ௜௧ r. r. it

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

Table A1.3 Regression results for the impacts of tariff changes on female-to-male employment

ratios in manufacturing (dependent variable: percentage change in female-to-male employment ratios) module Overall Production tasks Non-production tasks Exporting All Exporting All Exporting All (I) (II) (III) (IV) (V) (VI) 0.068** 0.075*** 0.156*** 0.073** 0.036 % Δ in export tariff - SADC 0.097* (0.056) (0.031) (0.025) (0.057) (0.034) (0.111) 0.016 0.014 0.006 0.037** 0.023 -0.112*** % Δ in export tariff - SSA (0.014) (0.017) (0.019) (0.018) (0.026) (0.031) % Δ in export tariff - - 0.008 - 0.031*** -0.088** -0.045*** -0.071** 0.046 European Union (0.018) (0.001) (0.042) (0.012) (0031) (0.030) - 0.040* - 0.097*** -0.107*** -0.105*** -0.127*** % Δ in export tariff - RoW -0.047 (0.117) (0.244) (0.020) (0.040) (0.027) (0.043) 0.034 0.046*** 0.006 0.088*** -0.095 -0.307** % Δ in import tariff - SADC (0.031) (0.017) (0.019) (0.026) (0.062) (0.132) 0.001 - 0.218* 0.005 -0.295** 0.592*** % Δ in import tariff - SSA 0.248** (0.101) (0.042) (0.123) (0.075) (0.140) (0.186) % Δ in import tariff - - 0.083** - 0.151 -0.091** -0.222 -0.050 0.367*** European Union (0.039) (0.144) (0.045) (0.161) (0.071) (0.132) 0.009 0.193 0.026 0.285 -0.070 -0.433*** % Δ in import tariff - RoW (0.043) (0.170) (0.061) (0.189) (0.104) (0.159) Observations 684 198 693 199 629 195 Firm fixed effects Yes Yes Yes Yes Yes Yes Year fixed effects Yes Yes Yes Yes Yes Yes Source: Calculation by the UNCTAD secretariat based on World Bank Enterprise Surveys and the World Integrated Trade Solution database. Note: Robust standard error in parentheses clustered at the firm level. RoW: rest of the world; SADC: Southern African Development Community; SSA: sub-Saharan Africa. *** Significant at the 1 per cent level. ** Significant at the 5 per cent level. * Significant at the 10 per cent level.

Table A1.4 Estimates of the impact of trade openness on female employment in industry

Female employment in industry Female-to-male employment ratio in industry 0.0122 0.0004 Trade/GDP (0.0230) (0.0004) 0.1835*** 0.0028** Export/GDP (0.0396) (0.0010) -0.1363*** -0.0017* Import/GDP (0.0370) (0.0009) 0.1792** 0.0045*** SADC export/GDP (0.0808) (0.014) -0.1511*** -0.0023** SADC import/GDP (0.0382) (0.0008) 0.1788*** 0.0025** Non-SADC export/GDP (0.0383) (0.0010) -0.1185*** -0.0012 Non-SADC import/GDP (0.0386) (0.0011) -4.4540*** -7.5352*** -7.7093*** -0.0276 -0.0713* -0.0762* Log(GDP per capita) (0.8451) (0.8379) (0.8437) (0.0230) (0.0397) (0.0376) 11.6279** 8.8194* 8.8672* 0.2627* 0.2229 0.2449 Log(population) (5.0485) (4.7232) (5.0983) (0.1553) (0.1695) (0.1716) 0.4222*** 0.4380*** 0.4482*** 0.0022 0.0025 0.0024 Urban population share (0.0856) (0.0752) (0.0809) (0.0034) (0.0034) (0.0035) -0.0297 0.0791* 0.0714* -0.0029* -0.0014 -0.0016 Foreign direct investment (0.0512) (0.0436) (0.0392) (0.0015) (0.0010) (0.0009) R-squared 0.297 0.430 0.439 0.254 0.279 0.290 Number of observations 290 290 290 290 290 290

Source: Calculation by the UNCTAD secretariat. Note: Driscoll-Kraay standard errors in parentheses. To obtain heteroscedasticity and autocorrelation robust Driscoll-Kraay standard errors, the user written command xtscc by Hoechle (2007) in Stata was used for the estimation of the fixed-effect panel data models. SADC: Southern African Development Community. *** Significant at the 1 per cent level. ** Significant at the 5 per cent level. * Significant at the 10 per cent level.

51 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 52 cent level.cent level.the 10 percent at *Significant data models. SADC: SouthernAfrican Development Community. level. cent the 5 per at **Significant the 1 per at ***Significant standard errors,the userwrittencommand xtsccbyHoechle(2007)inStatawas the fixed-effect usedforthe estimationof pane Note: Source: Trade/GDP -qae .7 .7 .7 .4 0.474 290 0.447 290 290 0.577 290 0.572 290 0.571 290 Number ofobservations R-squared Foreign investment direct Import/GDP SADC export/GDP Export/GDP Urban populationshare SADC import/GDP Non-SADC export/GDP Log(population) Log(GDP percapita) Non-SADC import/GDP Table A1.5 Driscoll-Kraay standard errors inparentheses. To obtainheteroscedasticity andautocorrelation robust Driscoll-Kraay Calculationthe UNCTAD by secretariat. Estimates of the impact oftradeEstimates oftheimpact opennesson -18.594*** -18.594*** -0.1002** 9.7167*** (0.0480) (0.0180) -0.0230 (1.4847) (1.1697) (0.1541) 0.0351 eaeepomn nsrie Female-to-maleemploymentratioinservices Female employmentinservices -18.469*** -18.469*** 9.8542*** -0.1050* (0.0376) (0.3282) (0.1544) (1.6927) -0.0164 (0.0511) (2.8175) 0.0307 0.0344 -19.4702*** -19.4702*** 9.6658*** -0.1148** (0.0370) (0.0955) (0.0254) (0.0491) (0.0357) -0.0236 (0.1453) -0.0252 (1.7454) 0.0636 (3.1525) -0.1263 0.0013 female inservices employment -0.1990*** (0.0006) 0.5150*** (0.0024) -0.0009 (0.0032) (0.0379) -0.0042 (0.1328) 0.0034 -0.0060*** 0.5989*** 0.0035*** -0.1070** -0.0046* (0.0008) (0.0025) (0.0485) (0.0016) (0.0013) (0.1297) 0.0001 -0.0010*** -0.0053*** 0.0030*** 0.0044*** -0.1024** 0.5401*** (0.0009) (0.0008) (0.0024) (0.0473) (0.0015) (0.0015) -0.0039 (0.0013) (0.1329) 0.0002 l

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

ANNEX 2 A.2.2 Taruna Shalini Ramessur and Sanjeev K. Sobhee (2009): “Impact of Trade

A.2.1 Bilge Erten and Fiona Tregenna (2014): Liberalization on Labour Conditions module “How Does Trade Liberalization Affect in the Textile Sector of Mauritius: Racial and Gender Inequality in The Fate of Female Workers” Employment? Evidence from Objective and Background Post-Apartheid South Africa” This paper evaluates the impact of trade Objective and Background liberalization on the demand elasticity of labour This paper examines how trade liberalization in the textile industry in Mauritius, which is part 86 in post-apartheid South Africa between 1995 of the country’s export processing zones (EPZs). and 2002 affected employment in specific This industry is dominated by female workers groups by race, gender, and skills. and went through two liberalization phases: a first phase during the mid-1980s, when tariffs Data and Methodology were significantly reduced; and a second phase that began in 2005 with the phasing out of the The analysis uses household and labour micro Multi-Fibre Agreement. data, which allows for the study of the wider labour market effects of trade liberalization beyond firms Data and Methodology and industries directly affected. These data were matched to tariff data at the level of 371 districts The analysis uses panel data from the Industrial using the October Household Surveys for 1995– Statistics of the United Nations Industrial 1998. These district-level data provide nationally Development Organization and information representative official data. The sample is made provided by the Mauritius Export Processing up of all employees aged 15 and over. Zone Association (MEPZA), from 1976 (when MEPZA was created) to 2003. The sample includes The analysis examines the effect of district- a panel of 43 firms operating in the wearing level tariffs on district-level employment. To apparel industry, which constitutes 89 per cent avoid endogeneity, the sectoral composition of of total employment in EPZs. employment in each district at the beginning of trade reform was used as weights to This paper uses a model of monopolistic 87 construct a weighted average of tariffs at the competition to estimate the impact of trade district level. liberalization (measured by a dummy variable that has a value equal to 0 between 1976 and 1983 The estimation equation evaluates the and 1 thereafter) on the labour demand function average effect of trade protection (as (distinguishing between male and female workers), measured by a weighted average of tariffs) controlling for the wage rate, rate of interest, and on district-level employment, controlling for cost of raw material. The key variable of interest is a set of initial district indicators interacted elasticity change, which corresponds to the wage with a post-reform time dummy, district-level variable interacted with the liberalization dummy. controls, district-level fixed effects, and year fixed effects. Findings

Findings The results show that labour demand for female workers in the wearing apparel industry has become The results indicate that trade liberalization in more elastic with respect to a change in the wage rate South Africa negatively affected the employment after the trade reform. In the case of male workers, of less-educated workers; that is, uneducated however, the estimates do not show any significant African and female workers are found to impact. This means that trade liberalization makes be especially vulnerable to job losses. These it more difficult for women to ask for higher wages estimated effects are found to be particularly because doing so can threaten their employment. In high in manufacturing, especially for low-skilled addition, due to their average lack of skills, women manufacturing employment. This indicates cannot be easily retrained or move to other sectors. that trade liberalization has differential effects This implies that growing trade liberalization on different groups, identified by race, gender, would lead to a more-than-proportionate decline and skills. in employment among women in the EPZs.

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Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

ENDOTES

1 The teaching manual is comprised of Volume 1 (Unfolding the Links) and Volume 2 (Empirical Analysis of the Trade and module Gender Links). 2 The empirical analyses of this module generate results fort the SADC region as a whole. Two case studies, which focus on individual countries (i.e., South Africa and Mauritius), are presented in Annex 2. 3 Comoros is not included in the analysis in this module. Comoros joined SADC in August 2017, so its contribution to the process of integration cannot be assessed yet. 4 See http://www.sadc.int/about-sadc/overview/sadc-mission/. 5 For SADC’s institutional structure, see SADC (2001b). 6 Angola, Democratic Republic of the Congo, and Seychelles remained outside of the SADC FTA in 2008. Seychelles joined the FTA in 2015. Angola planned to join in 2017, but has also yet to submit its tariff offers to other member states. 7 The agreement was meant to contribute to the realization of an “African Economic Community” as outlined in the 1980 Lagos Plan of Action and the Abuja Treaty of 1991. The idea was to resolve the issue of overlapping memberships of countries in more than one economic bloc. 8 The set of legal instruments includes a founding agreement, protocols on trade in goods and services, annexes on trade- related rules and procedures, and a dispute settlement mechanism. 9 Trade and Economic Partnership Agreements are a key component of the ACP-European Union Cotonou Agreement between the African, Caribbean and Pacific Group of States and the European Union, which since 2000 has provided a comprehensive framework for the European Union’s relations with 79 developing countries. 10 Market access regulations essentially guaranteed potential EPA countries temporary free trade. 11 As discussed in Section 1.3, however, consistent with the disparities in the development levels of the SADC countries, the growth performance of individual countries has varied widely in the 2000s. 12 There are significant disparities across countries for GNI per capita and trade. 13 Developing Asia refers to Asian countries excluding Japan and the newly industrialized economies (Republic of Korea, Singa- pore, Hong Kong [China], and Taiwan Province of China). 14 As discussed in Section 1.3, however, behind these aggregate statistics are significant differences in the economic size, level of development, and structural composition of the individual economies in the region. 15 The shift to services often coincides with expansion of the informal sector. Due to various political and economic factors in Zimbabwe, for example, many women have embarked on small-scale cross-border trade over the past two decades (Ndiaye, 2009). In the region, women also dominate the ownership of informal and microenterprises (SADC, 2016). 16 In 2016, the levels of GDP per capita in these four countries were below the average GDP per capita in sub-Saharan Africa. 17 For technical details, see http://hdr.undp.org/en/content/human-development-index-hdi. 18 No African country as of 2015 was in the very high development group. 19 In addition, in 2016 the Democratic Republic of the Congo was involved in an armed conflict. 20 Commodity prices began to recover in 2016 and were expected to keep rising in 2017 and 2018. 21 See the mining page of the SADC website at http://www.sadc.int/themes/economic-development/industry/mining/. 22 An accurate gender analysis of course needs to take into account the broad social-cultural context. This means that other important social factors (age, race, ethnicity, class, etc.) need to be taken into account as well. 23 The unpaid, reproductive sphere of the economy is measured based on time-use surveys (see box 1). 24 The limited availability of data on unpaid activities is a constraint for economic analysis, but time-use surveys are increasingly being conducted (see box 1). 25 As stated in Volume 1, gender equality and women’s empowerment are closely related but quite distinct concepts. Gender equality is assessed based on the status of women compared to that of men. In contrast, empowerment is evaluated based on whether women have the ability to exercise control over their own lives, have access to opportunities, and have independent decision-making power (both within and outside the household sphere) (UNCTAD, 2014). 26 This section provides aggregate indicators of gender inquality; more specific dimensions of gender-related outputs as related to the individual economic sectors will be discussed in the following sections. 27 The GII is only calculated for 154 countries (in contrast to 188 countries for the HDI) due to data limitations. 28 More specifically, UNDP (2016b) estimates that a 1 per cent increase in the GII reduces the HDI by 0.75 per cent. 29 In 1993, the Fifteenth International Conference of Labour Statisticians (ICLS) adopted an international statistical definition of the informal sector; employment in the informal sector “comprises all persons who, during a given reference period, were employed in at least one informal sector enterprise, irrespective of their status in employment and whether it was their main or a secondary job” (ILO, 2000, 4). 30 For a detailed explanation of the structure of the GGGI, see WEF (2017, 4). 31 The comparison is based only on the group of SADC countries for which both the 2006 and 2016 GGGI is available. 32 See the Treaty of the Southern African Development Community at http://www.chr.up.ac.za/undp/subregional/docs/sadc8. pdf. 33 The protocol became enforceable in September 2012 after nine ratifications (over two-thirds of the 13 signing countries). As of 2018, 15 countries have ratified the protocol (Mauritius has not ratified it yet). 34 To support gender mainstreaming efforts, SADC introduced a Gender Mainstreaming Toolkit in 2009. SADC has also established SADC National Committees composed of various national representatives (including government, civil society, workers’ and employers’ associations, etc.) in charge of providing inputs for the formulation of regional measures, as well as for coor- dinating and overseeing the implementation of regional policies at the national level. 35 See the official site of the SADC Gender Protocol Alliance at http://genderlinks.org.za/what-we-do/sadc-gender-protocol/sadc- protocol-barometer/. 36 The 2008 protocol included 23 indicators. They were expanded to 36 in the updated version of the protocol (nine of the origi- nal indicators were also dropped, either because they were fulfilled or because they were no longer considered relevant). The 36 indicators are now grouped under nine categories: Constitutional and Legal Rights, Governance, Education and Training, the Economy, Gender Violence, Health, HIV and AIDS, the Media, and Climate Change. To create the composite index, each category is given equal weight by calculating the average score across the indicators in that category. Based on the SGDI, South Africa is first in the ranking, followed by Mauritius, Zimbabwe, Seychelles, and Namibia. Mozambique, the United Republic of Tanzania, and the Democratic Republic of the Congo are at the bottom (Southern Africa Gender Protocol Alliance, 2017). 37 In contrast to the 2008 Gender Protocol, the updated version does not provide deadlines to meet the goals targeted. 38 Member states have the obligation to put in place the legislative framework and institutions to promote gender equality, and to allocate the necessary human, technical, and financial resources to implement the protocol. Implementation of the protocol is the responsibility of three bodies: the Committee of Ministers responsible for women’s affairs that supervises the Commit- tee of Senior Officials responsible for women’s affairs, which in turn supervises the SADC secretariat. The role of this tripartite mechanism is to monitor and evaluate implementation of the protocol through national action plans, data analysis, and the

59 4 module b Trade andGenderLinkages: Community AnAnalysisoftheSouthernAfricanDevelopment 60 41 40 39 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 The concept of trade of Theconcept opennessisexplainedinModule1, 4. Section According to the United Nations Special Rapporteur on the Right to Food, the Right the UnitedNationsSpecial on Rapporteur Accordingto foodto have the right securityrefers regular,to TheSADC Regional IndicatorStrategicthis goal (pages25-26). Development Planexplicitlyunderlines Seehttp://www.sadc. For example, high-value products agriculturalfor SADC export membercountries for includemeat Botswana, fruitsand For more detailed discussion, seeCaraway (2006), Kucera al. et (2011), andKucera and Tejani (2014). High-value products include, first, semi-processed products suchasflour, oil, woolandhides; second, horticultural crops an The gender employment gap is calculated as the difference gapiscalculated Thegenderemployment as betweenmale andfemale rates, employment the male dividedby Non-traditional agriculturaltypically are associatedwithhighermonetaryvaluetraditional than exports cereal grains and Exceptions are Botswana (for bothmenandwomen)Zimbabwe (for womenonly). For example, high-value products agriculturalfor SADC export membercountries for includemeat Botswana, fruitsand Informal cross-borderthe regulatorytrade frame- escapes trade that isdefinedas inlegitimatelyproduced goodsandservices SADC preparedthe SADC Industrialization in2015(http://www.ilo.org/wcmsp5/groups/ Strategy andRoad Map2015–2063 Jowit Saluseki, Jowit “Southern Africa: SADC Food InsecurityGainfor Local Farmers” Seehttp://archive.ipu.org/wmn-e/classif.htm 2017). to 1October (updated Production tasks mostlycoincide Productiontasks withblue-collar refertomanagement, related jobswhilenon-production to activities Since this section employsfirm-level data,this section Since frameworkthis analytical constitutes amicro analysis. Amicro analysis allows fo availablethe latest Thedataare onEPZsthe SADC region. in consists Theindustrial ofminingandquarrying, sector manufacturing, construction, andpublicutilities(electricity, gas, a SeeMelitz(2003)andBustos(2011)for detailedinformation. Since the examination is of the effect of tradethe effectthe examination of isof Since openness onfemale inbroad employment sectors,this analysis isamacroeco- Thedatafor bothZambia andSouthAfrica are from (FAO, 1994householdsurveys 2011a). See the UnitedNationsOfficethe Special http://www.un.org/en/africa/osaa/peace/caadp. AdviserwebsiteonCAADP See of at See page 5 of the SADC Regional Seepage5of Agricultural Policy http://www.inter-reseaux.org/IMG/pdf/Regional_Agricul- at document the coreteaching manual (Volume Asdiscussedin 1, box 1)(UNCTAD, 2014),the genderwagethe differ- gapismeasured by For example, asnotedbyKucera andMilberg(2000),the expansionofOrganisationfor Economic Co-operation andDevel- Toto useapaneldataapproach beable forthe analysis, the sample. are onlypanel surveys includedin The panel WBES Ibid. For example,to mensince than derogationsto labourto women to bemore rightsthat harmful seem Jauch(2002)observes int/files/5713/5292/8372/Regional_Indicative_Strategic_Development_Plan.pdf. tobacco for Zimbabwe. al. SeeGuha-Khasnobiset (2007). vegetables for Mauritius,tobacco for sugarand Malawi, fishfor Mozambique, andmeat, dairyproducts, sugar, honey, and tariff changes. the broaderthe manufacturing (ratherthan industrial sector is on sector), ismostlyaffectedthat is manufacturing by asit evaluatingthe sub-sectoraltariff level how the female affect changesat the firmlevel. share at ofemployment The focus here org/EN/Issues/Food/Pages/FoodIndex.aspx. ensures aphysicalthat andmental, anindividual andcollective, fulfillinganddignifiedlife free offear. Seehttp://www.oh the consumer pertains,adequate andsufficientthe culturalto which correspondstraditionsto foodthe people that of and permanent, andunrestricted access, eitherdirectly orbymeansoffinancial purchases,to quantitatively andqualitatively SADC_Industrialization_Strategy_and_Roadmap.pdf). alization Strategy Planforthe Roadmap andAction in2017(https://www.sadc.int/files/4514/9580/8179/Action_Plan_for_ the SADC Industri- and public/---africa/---ro-addis_ababa/---ilo-pretoria/documents/meetingdocument/wcms_391013.pdf) the period2009–2016. in cent The figures for male are employment and9.8 percent, 9.3 percent respectively. manufacturing,total asashare employment, of to 2.5 per decreased was It onaveragethe period2001–2008. in cent 2.7 per the UNCTADthe calculationscategories B-FofISIC4. by Accordingto secretariat,the SADC region in female in employment water), ofInternational inaccordance Standard withdivisions2-5 Industrial Classification(ISIC)2, categoriesC-FofISIC3 export crops.export Non-traditional agricultural exports, for example, includefruits, vegetables, fish, flowers. andcut nomic (ormacro) analysis. tural_Policy_SADC.pdf. profitable workforce for enterprises facing intense competition oninternational markets. in Module3, womenreceivethe relativelythat for lowerincometo genderdiscriminationmakes similarworkdue womena in productivity asaresult, for example, ofdifferences ineducationandworkexperiences(see Volume 2, box 11). Asexplained be considered asaraw measure ofgenderdiscrimination. isaraw account for It doesnot measure differences onlybecauseit ence betweenmale andfemale average wages, expressed asapercentage ofmale average wages. The genderwage gapcan SADC GenderUnit). the SADC Protocolof onGenderandDevelopment,the SADCthe GenderandDevelopment see Monitor2016(publishedby foreto ensurethe instruments faithful the protocol. implementation of For detailedevidenceonprogress inimplementation the SADC Monitoring, Planand Action Evaluation andReporting Framework. Monitoring, evaluation,there- are andreporting suppliedbymemberstates.biennial reports the country level, At implementation shouldfollowthe SADC Implementation competing industries such as textiles,competing industriessuchas footwear, andleathergoods. trade withdeveloping (OECD) opment countries resulted inexcessive joblossesfor countries womeninOECD in import- professional categoriessuchasvendors arethis group. also includedin sales, administration, etc.tasks are Althoughnon-production mostlyhandledbywhite-collar jobs, non-traditional white-collar shtml. com/stories/201607260649.html. 2013); andZambia (2002and2007; 2007and2013). Panel dataallow for controlling country-,the unobserved time-, sector-, and 2016); Malawi (2005and2009; 2009and2014); SouthAfrica (2003and2007);the UnitedRepublic of Tanzania (2006 and Angola (2006and2010); Botswana (2006 and2010);the Democratic Republicthe Congo of (2006and2010); Lesotho (2009 followsurveys the samefirmsfor than oneperiod. more areThe surveys available inpanelform for SADC eight countries: tobacco for Zimbabwe. al. SeeGuha-Khasnobiset (2007). vegetables for Mauritius,tobacco for sugarand Malawi, fishfor Mozambique, andmeat, dairyproducts, sugar, honey, and the government,work established by therebytax andregulatory avoiding burdens. certain labour legislation shall apply and that national minimumwagesthat labour have legislationshall applyand to berespected. their labour legislationinEPZs.cation of the case,This is for example, inMozambique, where regulations onEPZs that state In Zimbabwe,to EPZs. apply the Labour Relations doesnot Act Conversely, someotherSADC countries guaranteethe fullappli- the former aretrade lessunionized and unionshavetraditionally feminine-specific neglected issues, suchasmaternityleave. employment rate.employment dairy products, andchocolate (Kabala andKirsten, 2013). produce suchasfruits, vegetables, andnurseryproducts; andfinally, processed products suchasbeverages, breakfast cereals, Times ofZambia , 25July2016. Seehttp://allafrica. chr. , or nd d r

Trade and Gender Linkages: An Analysis of the Southern African Development Community 4b

and firm-specific individual effects. This empirical analysis employed a fixed-effect panel data model. Details about the technique are provided in Annex 1. 67 For example, the calculations show that on average the export tariff change was 2.38 per cent, and on average the import

tariff duty change was 1.47 per cent in intra-SADC markets. Consequently, both values confirm increased trade liberalization module within SADC regional trade over the period considered. Furthermore, in the dataset, the average export (import) tariff changes are 3.8 per cent (1.01 per cent) for sub-Saharan Africa, -1.05 per cent (0.62 per cent) for the European Union, and 0.19 per cent (0.20 per cent) for rest of the world. These figures show varying degrees of trade liberalization in most non-SADC trade partnership relations. 68 Details of the estimation methodology are presented in Annex 1. 69 The estimates are quite significant in magnitude for the non-production workers of exporting firms; however, since the relative size of white-collar employees is very small compared to blue-collar workers, these large estimates do not seem to affect overall female employment outcomes. 70 Specifically, a 1 per cent decrease in export duties faced in the SADC destination markets by SADC exports is correlated with an approximate 0.08 per cent increase in the overall female-to-male employment ratio. 71 The data show that more than 90 per cent of the exporting firms in the dataset sell their main product domestically as well. For this reason, the discussion on import competition will take into account the results of the exporting firms. 72 The figures for the other SADC member states for which data are available are 52 per cent in South Africa, 54 per cent in Swaziland, 61 per cent in Namibia and Lesotho, 63 per cent in Angola, 64 per cent in Zambia, 70 per cent in Madagascar and Zimbabwe, 78 per cent in Malawi, 80 per cent in Mozambique, and 84 per cent in Botswana. See SADC (2015c). 73 The ILO’s definition of the industrial sector includes mining and quarrying, which is quite significant in the SADC region, as well as the manufacturing sector. Because of data constraints, this section looks at industry as a whole rather than manufacturing only. This section provides a macro analysis. 74 Note that, according to economic theory, with increasing exports it is expected that labour-intensive industries expand and capital-intensive industries shrink in developing countries. Considering that women are more likely to form the bulk of the low-skilled workforce in developing countries, this result seems to apply to the SADC region. 75 Seychelles became a WTO member in April 2015. 76 Note that the protocol addresses intra-regional trade in services, whereas GATS obligations are for all WTO members. 77 The average trade deficit for 2005–2007 was US$12 million. 78 It is important to remember that the free trade agreement only concerns trade in goods; nonetheless, it is relevant to evaluate how services have changed since the formation of the agreement. 79 These are the only states for which the ILO makes this information available. 80 According to calculations based on the most current data from ILOSTAT, the sum of employment in financial services and insurance activities in total services employment is 0.6 per cent in Madagascar, 7.2 per cent in Mauritius, 6.4 per cent in Namibia and South Africa, and 1.4 per cent in the United Republic of Tanzania. 81 These calculations are based on the average nominal monthly earnings of employees according to gender and occupation provided by the ILO, and the gender-wage gap formula: (male wage-female wage)/male wage, as discussed in the core teaching manual. 82 See the tourism page of the SADC website at http://www.sadc.int/themes/infrastructure/tourism/. 83 Malawi, Zambia, and Zimbabwe are exceptions, as they have introduced duty-free status for goods sold by traders (below a certain value) under the Common Market for Eastern and Southern Africa Simplified Trade Regime (Mirand, 2015). 84 SADC countries provide short-term maternity leave. In contrast, there is paternity leave in Angola, the Democratic Republic of the Congo, Mauritius, Mozambique, South Africa and the United Republic of Tanzania (World Bank, Women, Business and the Law Database, accessed on 28 October 2018). 85 Similarly, the total share of women working in industry and services as well as the corresponding female-to-male employment ratios are used in the empirical analyses in Sections 3 and 4. 86 Demand elasticity of labour measures how much the demand for labour changes when there is a change in the wage rate. 87 Monopolistic competition refers to a market structure in which there are many firms selling products or services that are similar, but not exactly the same. These firms face a labour demand curve that is quite elastic (i.e. if a firm were to raise its price, consumers would purchase from a competitor).

61 [email protected] http://unctad.org/gender

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