Impacts of the global crisis on women in developing Asia By Jayati Ghosh 2010 Edition About the Author: Jayati Ghosh is a Professor at Jawaharlal Nehru University in New Delhi. She is one of the founders of the Economic Research Foundation in New Delhi, a non-profit trust devoted to progressive economic research and has been a consultant and researcher for many government and non- government organizations, nationally and internationally. Editor: Reihana Mohideen Copyeditor: Rosanna Barbero, Alejandra Scampini and Cindy Clark Proofreaders: Michele Hasson, Karen Murray Designer: Diego García Pedrouzo Final proofreader: Ana Inés Abelenda Production: Lynn O’Rourke 2011 Association for Women’s Rights in Development (AWID). This publication may be redistributed non-commercially in any media, unchanged and in whole, with credit given to AWID and the author. Pub- lished by Association for Women’s Rights in Development (AWID),Toronto, Mexico City, Cape Town. 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Impacts of the global crisis on women in developing Asia - Jayati Ghosh Impacts of the global crisis on women in developing Asia By Jayati Ghosh 2010 Edition Introduction Among policy-makers in Asia, governments, even in countries there has been a tendency to see that do not really need them, are the global recession of 2008– making things worse. At the most 2009 as a mere blip in a process fundamental level, the three basic of continuing and dynamic eco- imbalances that caused the most nomic growth. Asian developing recent crisis of international countries were the first to come capitalism have still not been 3 out of the crisis; indeed, many of resolved: the imbalance between them experienced only a decelera- finance and the real economy; tion of still positive growth of out- the macroeconomic imbalances put rather than negative growth. between major players in the Asian trends have preceded a international economy; and the global recovery in which most ecological imbalance that will regions of the world have been necessarily become a constraint declared as coming out of reces- on future growth, not only because sion, as income has recovered, of climate change but because of especially from the second quar- other environmental problems and ter of 2009. Much of this is related the demand for energy. to the apparently uncoordinated, but nonetheless synchronized, Without resolution of these recovery packages that were in- problems, sustained growth is troduced in the wake of the cri- no longer possible in the global sis. Across the world, including in economy, and the Asian region Asia, governments responded not cannot hope to be immune from only with huge bailouts of trou- this negative impact. Further, bled financial institutions, but also even the resolution of such prob- with large fiscal stimulus packag- lems is likely to be associated es that were effective in staving with severe and potentially pro- off depression. tracted crises, in different areas and countries. These problems Nevertheless, it is increasingly are made worse by the evidence clear that the recovery remains that output recovery has not been fragile and downside risks look matched by any improvement in large. Sovereign debt issues are employment, wages or liveli- currently at the centre of concern hoods of self-employed workers, for financial markets, and austerity and that other negative effects packages being followed by of the crisis have persisted into the incipient and tentative recov- forms due to intensified social ery. In any case, the impact of the tensions. The effects of the crisis financial crisis on material and also tend to be disproportionately social conditions in developing distributed among the population, Asia has already been far more with certain vulnerable groups, severe than is suggested by ag- including women and girls, much gregate output figures. Due to the worse affected than more secure high dependence of most Asian or privileged sections. It is a sad countries, the volatility of global but constantly repeated fact of exports has direct and indirect economic life that financial crises effects on employment. A large tend to deliver the most harm to part of the population in the re- those who had usually gained the gion is still absolutely poor. The least from the preceding boom, greater proportion of the work by reducing wages and chances force in all but a few countries of employment, destroying live- is in informal activities, self-em- lihoods and constraining public ployment and vulnerable employ- provision of essential goods and ment, a proportion that is over- services. whelming in the case of women workers. Agriculture has been Gender discrimination tends to in difficulty in most parts of the be intertwined with other forms region, yet continues to employ a of social and economic dispar- large share of workers, especial- ity, such that region, location, ly women workers. The agrarian community, social category and crisis has also translated into occupation also typically deter- and been associated with a food mine the extent of deprivation of crisis, rising prices and declin- women and girls. Even so, there ing food self-sufficiency in most are critical differences in the im- 4 countries. pact of such crises on men and women, determined largely by All of these processes have ad- the greater significance of wom- verse effects on people within en in social reproduction and the countries and particularly on “care economy”, as well as their workers, some of which are: greater involvement in more vul- decreased employment; decline nerable forms of paid work. Now in real wages and incomes from that the region has experienced self-employment; changes in more than two years of crisis, it patterns of migration, with re- is useful to consider the impact duced employment opportunities on women in terms of their var- in several destination areas; the ied but overlapping roles as paid impact of higher food prices on workers, self-employed work- food consumption; reduced ac- ers, unpaid workers, members cess to health care; reduced ac- of households, and citizens with cess to education; and increased rights and individuals with needs, incidence of violence in various wants and aspirations. Impacts of the global crisis on women in developing Asia - Jayati Ghosh Women workers in paid employment Women workers continue to be gender relations within and out- sample of sex workers, 58 percent more adversely affected than their side the household. In Cambo- entered into sex work in the wake male counterparts in the manu- dia, for example, 70,000 garment of the financial crisis and 19 percent facturing industry, through the workers, mostly women, have lost were former garment sector work- loss of employment and falling their jobs since the crisis began. A ers. Undocumented migrant work- wages. To begin with, the indus- recent study by the United Nations ers are more vulnerable to many tries in which they predominate Inter-Agency Project on Human problems and challenges, including (e.g. textiles and garments) were Trafficking, quoted in Sothath and getting infected with HIV, because the most affected by the crisis Sophal 2010, found that among a their rights are not protected. and even as output has recovered to some extent, employment has not returned to its earlier levels. Coping with job loss entertainer with a base salary The pressure on employers to in Cambodia of US$40. She now makes more compete in an increasingly hos- money on tips from some gener- tile environment leads to efforts ous customers. She has not told to reduce labour costs by driving Single, 24-year-old Lath Srey- her family about the change in down wages and forcing remain- aun from Prey Veng Province her job, because she fears that ing workers to work for longer had been unemployed for three they would not allow her to work hours, often for less pay. months prior to the survey. She in such a place, but the need to had been working as a gar- keep her brothers at school has Further, women are less union- ment worker for six years, mak- forced her to work there. […] ized and therefore easier to dis- ing US$80 per month. Of this, Sreyaun has informed her par- miss, and job segregation as- US$30 was allocated to support ents and other relatives that she signs them to lower-paying and her family of five and various is still employed, but at another more “flexible” labour activities, personal expenses. factory. Sreyaun’s greatest fear unlike the more diversified and After tirelessly looking for a job is that if her conservative com- 5 relatively more secure occupa- at other factories, but with no munity finds out that she works tions of male workers. It is im- luck, Sreyaun decided to look at a Karaoke club, her “virtue” or portant to note that loss in such for a job at a Karaoke club. She reputation will be compromised. employment affects not only was offered a job as a Karaoke (Sotath and Sophal, 2010, p. 12.) household incomes, but also Self-employed women As opportunities for paid employ- of her daughter, embroiders and in the present crisis, the Government ment dwindle, women workers have even makes garments on occasion.