Trade liberalisation and globalisation: What are the impacts on women's lives?

Size: px

Start display at page:

Download "Trade liberalisation and globalisation: What are the impacts on women's lives?"

Jane Harris
5 years ago
Views:

1 Trade liberalisation and globalisation: What are the impacts on women's lives? European Women's Lobby Barcelona, 9 June 2001 To kick off our discussions today I would like to refer to the perspectives opened by the work of Professor Amartya Sen. His stress on inequalities of social opportunity as well as revenue puts social sciences back at the heart of the economic debate. He points out that genderbased identities and collective interests are one of the components of the social changes under way, though not the only one. Women's struggles are clearly a significant element in the variety of social struggles thrown up by the march of globalisation. Two remarks will highlight the particular relevance of today's topic. First, the historical evidence. That of two simultaneous trends in the twentieth century: the rapid and universal (although uneven) transformation of the role of women in society, and the other, equally rapid and universal, of increased economic interdependence and the globalisation of economic trade. Hence the importance of everything that can enrich the political debate on the causal links, while rejecting out of hand arguments supporting a supposed "voluntary servitude" of social actors in the face of economic change, since the likes of Simone Weil or Fernand Braudel has happily established the inverse relationship. Two, the value of seeing how women's insertion into the labour market - plus their greater participation in economic and political life - influences long-term growth trends and the international division of labour. This is particularly true in Europe where women's activity rate is one of the determining factors in growth, at any given demographic and technological trends. Any analyses or scenarios that could inform political choices by looking at the interaction between what happens in Europe and the rest of the world would be welcome. The neutrality of international trade law on gender issues - and neutrality must govern obligations between states - does not exclude discussion of the overall purpose of negotiations, whether on trade or other matters. For the European Union the purpose of global governance is to make possible development that is socially, economically and environmentally sustainable. Seen in this perspective, it is policies that provide suitable responses to gender-based issues, whether they be countries' domestic policies, backed, where need be, by appropriate international aid, common policies such as those forming the building blocks of the European Union, or international commitments. In these exchanges on the theme of Globalisation and Gender, I should like to single out two aspects: (i) areas of research that are especially pertinent for our discussions today; (ii) the contribution made by EU trade policy, including the preparations for the next WTO ministerial conference at Doha in November. I. Food for thought The fact that the first feminist movements appeared in Europe is something worth underlining. They then took off in the US and their influence spread southwards, starting with

2 Ecuador in The globalisation of trade amplified the universal nature of the demands made by these movements, among which we can identify different tendencies. The first tendency, that of German origin, focused from the end of the nineteenth century on women and work, including trade union issues. This movement is still alive today in some developing countries, such as Indonesia and El Salvador. The second approach, the Anglo- Saxon one, went hand in hand with the development of liberal democracy and aimed to get women recognised as political actors, whether militating in local associations or obtaining equal representation in parliament. With or without a trade-union or political voice, women's burgeoning social awareness took the form, especially in the South, of efforts to find ad hoc grassroots alternatives to the dominant economic model, taking the form of peasants' cooperatives in Latin America, rural banks in Asia and tontines in Africa. As we can see, any consideration of gender has to be multidimensional: social, political and economic. These multiple facets are formed by the interaction between liberalised economies, trade policy and women's rights, and accordingly emerged from the early debates on global governance. World trade and women's work One of the social challenges of globalisation is the issue of women and the labour market. Working can bring benefits - improving women's social status, education for girls, etc. - and also pose a threat. One danger, more often perceived than analysed, arises from the international division of labour that is taking place around the globe and adversely affects women in particular. Why women? First because they form a majority in subcontracting work in many developing countries and second, especially in the industrialised countries, because they are the first hit by the introduction of new technologies that increase male employment at the expense of women's. In both cases the capitalist market economy has a natural tendency to extract added value and flexibility from pre-existing social inequality. But, under certain conditions, there are positive aspects on women's job opportunities and well being. Debate - as in the dialogue on trade policy - is especially stimulating when it enables us to find a strategy that reconciles women's interests and ongoing global economic integration. I'm thinking of studies such as that of Maria Fontana and Adrian Wood, which proposes an integrated approach, based on a general equilibrium model, to the economic and social impact of changes in trade on the textile industry and situation of women in Bangladesh. Let us conclude that not all is black and white. Let us simply note that cause and effect in the international trade economy is not straightforward and take it as an encouragement to pursue the necessary dialogue under the aegis of the WTO. The condition of women and fundamental rights Apart from women's work, a number of questions arise concerning their access to public benefits, above all education and health. The UN's mid-term report on the outcome of the Beijing Conference rightly stressed the many inequalities that afflict women. Even as victims of major endemic diseases like AIDS, women are generally less protected, often more affected, as well as being physically and morally responsible for the risk of transmission to their children. Today 55% of the 32 million adults that are carriers of the AIDS virus are women. The frontline victims of this epidemic are undoubtedly African women. Women's special vulnerability makes the debate on the relationship between the WTO's legal framework and economic, social and cultural rights, above all basic labour standards, of particular concern to them.

3 This brings us back to the consideration of women's interests at all levels of decisionmaking, domestic and international. It is a general issue of governance that goes beyond trade policy as such but I want you to know that among the criteria for evaluating these decision-making systems I have taken on board the results-based approach as summed up by Martha Nussbaum when she stresses the notion of "capabilities". I am also aware of the work of specialists studying the diversity of standards, on the understanding that they absolutely have to be compatible with the central concept of human development and human rights, including non-discrimination, prevention of violence and respect for human integrity, rights and capabilities, all of which are common denominators of women's aspirations/demands. In all these areas globalisation is as much an opportunity as a threat to the situation of women. It just depends on the rules of the game. II. What the trade negotiations mean in terms of better governance and sustainable development What is the European Union doing on this front? What is the time-scale for taking up the proposals of the interest group you represent? 1. Well, first, the EU is actually doing something, as shown by a number of initiatives under way. It was the Commission that devised the proposal to help the least-developed countries by giving them better access to export markets. What is called the "Everything But Arms" initiative is designed to counter growing global inequality and exclusion by giving the all the products of the least-developed countries duty-free, quota-free access to the EU market - which is these countries' main export market. A study carried out by Unctad and the Commonwealth concluded that the scheme would be beneficial for the countries concerned. Combined with additional measures that the Commission announced at the LDC Conference in Brussels in mid-may, in the form of technical assistance and capacity building to help LDCs meet standards in export markets - including in the field of sanitary and phytosanitary measures and Technical Barriers to Trade- this is an advantageous package that will benefit women in the 49 LDCs because the products given improved access, agricultural products in particular, are from sectors with a high rate of female employment. Hand in hand with this approach, the Commission is actively working within international organisations to find ways of integrating the trade dimension into poverty reduction strategies in a way that is socially and environmentally sustainable. This concern is expressed in specific, targeted initiatives. For example, it has just proposed an ambitious action programme against the three major transmissible diseases that afflict the developing countries, AIDS, malaria and tuberculosis. The programme is three-pronged: development aid focused on health services and prevention policies; a differentiated price system allowing easier access to medicines; and a stepping-up of research efforts. On the question of access to drugs - seeing that it is such a topical subject- I should like to remark that WTO rules do leave national governments a sufficient margin to make provision for situations where trade is potentially a threat to human rights. More specifically, the agreement on Trade-Related Intellectual Property Rights (TRIPS) allows WTO members to authorise parallel imports and issue compulsory licences in emergencies or serious situations, as long as the related legislative meausres adhere to TRIPS rules. Lastly, we are also studying the best way of promoting fundamental workers' rights, which are very important for women, as I noted earlier.

4 2. The central plank of the EU's policy is the push for the start of the Doha Round of trade negotiations, which will provide an opportunity to balance market liberalisation by the adoption of appropriate regulations. Trade rules cannot take precedence over other concerns of society. But it is important that we ensure that the objectives are compatible and the legal instruments suited to the task. As I said at the beginning, our overall objective is that the new Round should promote sustainable development, and sustainable development includes the economic and social position of women. To be successful, the new Round must do four things, and I'll be interested to see what the conclusions of your seminar have to say about the relationship of each with women's concerns and demands. First we must continue liberalising markets for goods and services on the basis of predictable, non-discriminatory rules. The developing countries need from us greater liberalisation of agriculture and non-agricultural customs duties, these being the keys to improved market access. And it is at this point that a comprehensive, supra-sectoral approach, comes into play. The industrialised countries cannot keep their protected sectors off bounds to the developing countries, which need better access if they are to develop. We must be prepared to negotiate on all these sectors. Of course, the developing countries must also liberalise, but at a pace that will enable them to make the necessary economic adjustment. The second ingredient is to improve WTO rules in key areas for the globally integrated economy, such as investment and competition. Basic rules on foreign direct investment are important because such investment offers an alternative to trade in the modern economy. But these rules must offer stability and predictability, while also leaving individual countries in control of investment made on their territory. In other words, the rules should help developing countries to attract more investment. Competition is still more important for the working of the system. It affects development as much as trade. Behind underdevelopment you will always find monopolies and cartels together with murky public procurement practices that are hotbeds of corruption. In terms of trade, competition is just as important as cutting tariffs at the border because what is the point of a tariff reduction if you cannot access points of sale or transport? Or if your domestic competitors have a tight grip on the market? We want to set up simple machinery suited to the needs of developing countries. Third, development should inform our approach to all aspects of any new round, whether market access or rules. We need better coordination between the WTO, the World Bank, the IMF, Unctad and other international organisations like the World Health Organisation and the International Labour Organisation on subjects such as tied aid, poverty reduction and access to medicines. WTO working methods should also be made more transparent for all members, and participation by the developing countries encouraged. The fourth thing to do is to find better ways of responding to concerns about sustainability. Confidence in the international trade system is weakening despite the fact that trade is important for the economy and for development. We also have to satisfy those who fear that basic social standards are being jeopardised or who wish to ensure that they are properly implemented. I told you that the Commission is actively studying these problems. The WTO will have to be more transparent to the outside world if it is to avoid being the target of damaging criticism from across civil society. Transparency is the best way of answering accusations that the agenda for civil society is simply a cover-up for protectionist designs.

5 3. The EU has finally entered into a dialogue with civil society on these matters. The "Trade Policy Dialogue" was launched in 1998 and has been stepped up over the last year. As you know - the European Women's Lobby being a participant - the dialogue consists of general meetings that I am pleased to chair twice a year, plus specific issue groups, which meet every two months. Currently they are looking into trade related intellectual property rights, reform of the WTO system, investment and competition, and have already examined services, agriculture, access to medicines, and the environment and sustainable development. This dialogue is open to all civil society organisations of the European Union and is designed to increase mutual understanding and thus enrichment. Gearing up for Doha As you will be aware, since I stated my position publicly, I have asked the authorities in charge of the organisation of the fourth WTO ministerial meeting to do everything they can to facilitate the access of civil society organisations to the meeting. They have promised to do so. I welcome the fact that the Women's Lobby took the initiative to organise this seminar in Barcelona and eagerly await your conclusions. Your contributions, proposals and demands will be taken into account in our preparations for the ministerial. The Trade Policy Dialogue is the right framework to follow up this work and make the connection from Barcelona to Doha. A multilateral trade regime like the WTO that is stable, transparent and rule-based is a global public good. It now has to be strengthened if it is to be preserved. This goes hand in hand with development of other public goods such as access to health and environmental protection. Improving the position of women is, from this point of view, a global public good that will be strengthened, not weakened, by the multilateral regulation of trade. A weakening of the multilateral system and a return to unilateral policies would definitely be more detrimental to vulnerable economies than industrialised ones, and still more damaging to the more fragile sections of society in both groups of countries. In that case women would certainly be the first affected. We shall continue our efforts to ensure that the WTO works openly and transparently to further sustainable development.

,QIRUPDWLRQQRWHWRWKH&RPPLVVLRQ IURP&RPPLVVLRQHUV/DP\DQG)LVFKOHU

$,QIRUPDWLRQQRWHWRWKH&RPPLVVLRQ IURP&RPPLVVLRQHUV/DP\DQG)LVFKOHU$ ,QIRUPDWLRQQRWHWRWKH&RPPLVVLRQ IURP&RPPLVVLRQHUV/DP\DQG)LVFKOHU 6XEMHFW WK :720LQLVWHULDO&RQIHUHQFH1RYHPEHU'RKD4DWDU± $VVHVVPHQWRIUHVXOWVIRUWKH(8 6XPPDU\ On 14 November 2001 the 142 members of the WTO