Aid-for-Trade Workshop. Economic Diversification and Empowerment on Youth and Women (including in Rural Areas) November 5, 2018 WTO Headquarters

Transcription

1 Aid-for-Trade Workshop Economic Diversification and Empowerment on Youth and Women (including in Rural Areas) November 5, 2018 WTO Headquarters

2 Meeting Aspirations of Inclusive and Sustainable Development Fahad Khan Economist Economic Research and Regional Co-operation Department, Asian Development Bank 2

3 Outline I. SETTING THE CONTEXT II. WOMEN PARTICIPATION IN THE ECONOMY STATE OF PLAY III. TRADE AND EMPOWERMENT IV. KEY POLICY ACTIONS

4 Setting the Context

5 Changing landscape and Asia s development challenges While the region has made progress in some areas of gender equality, inequalities for women and girls remain stark across the region on a broad range of indicators. Gender inequality in the region is shaped by a range of broader social, economic, political and environmental trends: Remaining poverty and rising inequality. Environmental pressures Demographic shifts Technological advancements Growing influence of extremist groups

6 Women and Youth Empowerment in the 2030 Sustainable Development Agenda Gender equality a cross-cutting priority across all SDGs Young people both beneficiaries and drivers of development 6

7 HEALTH Maternal mortality ratio dropped but progress has been largely uneven HIV incidence increased; women are biologically more susceptible to HIV transmission putting them at particular risk More girls survive infancy than boys but the sex ratio is skewed for some countries Falling l Progress on Gender Equality in Asia EDUCATION Educational attainment has been increasing, but significant gender disparities persist More girls achieve proficiency in maths and reading than boys in most countries. On the other hand, girls are less likely than boys to be in organized learning before primary school Most countries reported integrating sexuality education at secondary level, but lack of information about its quality and content persist Uneven proportions of Asian students are graduating with STEM-related degrees EMPLOYMENT Falling female labor force participation rates Women and girls spend as much as 11 times more of their day on unpaid care and domestic work Women have less access than men to financial services and productive assets Women either concentrated in low-paying and lowskilled jobs, confined in traditional unpaid family work arrangements or in informal and vulnerable employment sectors Enterprises owned/managed by women are often characterized as small firms with low capital base and low productivity OTHER DEVELOPMENT OUTCOMES 1 in 2 women has experienced physical and/or sexual violence from an intimate partner in the last 12 months Highest rates of child marriage in the world in South and Southwest Asia, 1 in 3 women are married or in a union by the age of 18 Women s representation in decision making and leadership roles remains limited Girls aged under 15 are over-represented among those living in slums Women more likely to be the victims of trafficking than men

8 WOMEN PARTICIPATION IN THE ECONOMY STATE OF PLAY

9 Falling labor force participation rates across Asia ad the Pacific Female and Male Labor Force Participation Rates, 1990 and 2016 (%) East Asia Female East Asia Male Pacific Pacific Southeast Asia Southeast Asia Developed Member Countries Developed Member Countries Central Asia Central Asia South Asia South Asia Note: Developed Member Countries refers to ADB members Australia, Japan, and New Zealand. Source: ADB calculations using data from International Labour Organization. ILOSTAT.

10 Increasing female employment in services Female Employment by Sector 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% World % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Asia and the Pacific Agriculture Industry Services Agriculture Industry Services Source: ADB calculations using data from International Labor Organization, ILOSTAT.

11 Rising female employment in wholesale and retail trade, education, health and tourism-related activities Female Employment by Industry 100% 90% World Asia and the Pacific Other services Public administration and defence; compulsory social security Human health and social work activities Education 80% 70% Real estate; business and administrative activities Financial and insurance activities 60% 50% 40% 30% Accommodation and food service activities Transport; storage and communication Wholesale and retail trade; repair of motor vehicles and motorcycles Construction 20% Utilities 10% Manufacturing 0% Mining and quarrying Agriculture; forestry and fishing Source: ADB calculations using data from International Labor Organization, ILOSTAT.

12 Female participation in the private sector, as employers and employees, remains low Female Participation in the Private Sector, Asia and the Pacific (%) Firms with female participation in ownership Firms with majority female ownership Asia and the Pacific Firms with a female top manager World Proportion of permanent full-time workers that are female (%) Note: World and regional averages are computed by taking a simple average of country point estimates. For each economy, only the latest available year of survey data are used in this computation. Source: ADB calculations using data from World Bank. Enterprise Surveys.

13 Women are most represented in SMEs Women Firm Ownership and Employment in Asian SMEs Firms with a female top manager Firms with majority female ownership Small Medium Large Firms with female participation in ownership Note: World and regional averages are computed by taking a simple average of country point estimates. For each economy, only the latest available year of survey data are used in this computation. Source: ADB calculations using data from World Bank. Enterprise Surveys.

14 Female-led firms are more digitally savvy Share of Companies that Use their Own Website and with Clients/Suppliers (%) Asia and the Pacific World Female-led Male-led Female-led Male-led Firms using to interact with clients/suppliers Firms having their own Web site Digital connectivity and the development of e- commerce present promising opportunities for MSMEs including female-owned/led firms Note: World and regional averages are computed by taking a simple average of country point estimates. For each economy, only the latest available year of survey data are used in this computation. Source: ADB calculations using data from World Bank. Enterprise Surveys.

15 Political instability, informality, and access to finance as top constraints for female-led firms in Asia Obstacles in Business for Asian Firms (%) Political instability Practices of the informal sector Access to finance Tax rates Corruption Electricity Inadequately educated workforce Tax administration Access to land Transportation Business licensing and permits Crime, theft and disorder Customs and trade regulations Labor regulations Courts Value of collateral needed for a loan (% of the Proportion of investments financed internally Firms using banks to finance working capital Proportion of investments financed by banks Proportion of working capital financed by banks Male-led Proportion of loans requiring collateral Firms with a checking or savings account Firms using banks to finance investments Firms whose recent loan application was Access to Finance in Asian Firms (%) Firms not needing a loan Firms with a bank loan/line of credit Firms using supplier/customer credit to Female-led Note: Regional averages are computed by taking a simple average of country point estimates. For each economy, only the latest available year of survey data are used in this computation. Source: ADB calculations using data from World Bank. Enterprise Surveys. 15

16 TRADE AND EMPOWERMENT

17 Female representation is higher in trading firms Women Firm Ownership and Employment in Trading and Non- Trading Firms Firms with female participation in ownership Permanent full-time workers that are female Permanent full-time production workers that are female Permanent full-time non-production workers that are female Exporter Non-Exporter Trade can contribute to empowerment primarily through the facilitation of entrepreneurship activities and absorption into the labor force World Asia Note: World and regional averages are computed by taking a simple average of country point estimates. For each economy, only the latest available year of survey data are used in this computation. Source: ADB calculations using data from World Bank. Enterprise Surveys.

18 18 Trade can lead to economic empowerment Trade and global value chains (GVCs) have reinforced specialization, compartmentalization, and agglomeration of economic activities all of which can influence the employment and entrepreneurial outcomes of women and youth in a variety of ways Trade and participation in GVCs also holds potential to enhance inclusiveness in education and promote the expansion and quality of skills development opportunities Trade openness, primarily through imports, can result to lower prices and increased variety for consumers, for which women stand to benefit the most given their consumption patterns relative to men By and large, these mechanisms create a virtuous cycle of empowerment

19 Occasionally, trade can perversely impact women and youth Trade can lead to contraction in comparative disadvantage sectors, consequently affecting employment and entrepreneurship activities GVCs can reinforce common forms of gender discrimination and inequalities Trade can have negative impacts on women as consumers

20 Key Policy Actions

21 ADB s Corporate Strategy CA = concessional assistance. Source: ADB (Strategy, Policy and Review Department). Gender Equity is one of the five drivers of change in ADB s corporate strategy Gender Equality and Women s Empowerment Operational Plan o ADB s efforts to ensure that gender equality remains at the front and centre of its development efforts, and to accelerate progress in closing remaining gender gaps Nearly half, or 48%, of all ADB projects supported gender mainstreaming for the latest threeyear period. ADB s Digital Agenda provides the vision and roadmap for ADB s digital transformation, critical for implementing its Strategy

22 Invest in economic and social infrastructure and services Invest in physical and digital infrastructure - transport infrastructure in Afghanistan and Uzbekistan - water supply and sanitation project in Uzbekistan - bus rapid transit (BRT) corridor project in the northern Pakistan city of Peshawar - Undersea fiber-optic cable project in Tonga Increase provision of public services and implement complementary social protection policies and programs - provision of long-term care services for elderly in Japan and the Republic of Korea - set up of child care facilities to help reduce and redistribute women s unpaid care responsibilities in Cambodia - Domestic legislation that promote greater sharing of unpaid care work in Viet Nam Ease the unpaid care and domestic responsibilities of women and girls Maximize employment and entrepreneurship opportunities Expand women s and young people s choices to engage in decent work and education

23 Provide integrated support through Removing barriers to the formalization of economic activities Implementing regulatory reforms in access to finance, tax rates and administration, business registration Empowering SMEs and creating market incentives for firms promoting equality Providing capacity building through business development advisory/training services Promoting the adoption of new technologies and online platforms

24 Support for education and skills development opportunities Sustain and scale up investments in education and training - Basic and secondary education - Higher education - TVET Implement education reforms and foster good governance and strategic partnerships - Sector-wide policies - Curricula harmonization - Equal access to training programs - Flexible pathways for graduates to continue to higher levels - National TVET quality assurance, accreditation systems, and qualification frameworks Leverage regional mechanisms Cross-border program and degree or diploma harmonization Mutual recognition of skills and qualifications Regional TVET frameworks and institutions networks Integrated labor market information system

25 Removing discrimination from legal frameworks and promoting change in social norms Promote gender-inclusive and transformative legislation Meet international standards and harmonize domestic legislation Ensure quality and implementation of laws

26 Mainstreaming gender and youth empowerment in trade facilitation initiatives and trade policy and regulations Promote trade and investment in labor-intensive sectors by reducing restrictions in market access o Facilitating services trade Promote labor mobility and address constraints to the movement of people Mainstreaming gender and youth empowerment in trade facilitation initiatives In Asia, greenfield investment has contributed to job creation Inward Greenfield Foreign Direct Investment Job Creation in Asia Number of jobs per project Manufacturing Primary Services Source: ADB calculations using data from Financial Times. fdi Markets (accessed June 2018).

27 ADB s trade facilitation initiatives with women/youth empowerment elements Transport and Trade Facilitation in the Greater Mekong Subregion South Asia Subregional Economic Cooperation Trade Facilitation Program South Asia Subregional Economic Cooperation National Single Window Project Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project

28 Increasing financing and investment Make gender equality and youth empowerment a priority in domestic resource mobilization Introduce gender- and age-responsive budgeting Integrate and scale up gender equality and youth empowerment focus in other official development assistance priority areas Constant 2015 $ billion Gender equality focus of bilateral allocable aid, % Gender equality as an objective in the economic and productive sectors on average per year Principal Significant Screened, not targeted Not screened Aid targeting gender equality (% of total bilateral allocable aid) Principal (% of total allocable aid targeting gender equality) -30 Source: ADB calculations using data from OECD. Creditor Reporting System. (accessed October 2018). Source: OECD (2018).

29 Forging strategic partnerships and building on regional and international commitments Promote collaboration between governments, the private sector, civil society, and international development organizations Build on regional and international commitments

30 Strengthening the production, analysis and use of gender- and age-disaggregated data and statistics Improve the evidence base for gender- and ageresponsive policy and practice through statistical capacity development Capitalize on new and innovative data sources Bridge the divide between producers and users of data Prioritize gender- and age-disaggregated statistics

31 Overview of ADB s Aid for Trade 2019 Report Research questions Trade can boost employment and incomes, but is trade alone sufficient to achieve sustainable and inclusive economic growth? How can the benefits from trade be shared more equitably? In particular, what are the roles of the private sector, donors/aid agencies, and multilateral development organizations in fostering trade driven growth to be more inclusive, particularly for women? MSMEs particularly in the agriculture sector account for a growing share of employment and output, but their engagement in international trade is more challenging. This is particularly the case for women-led MSMEs. What are some of the key barriers that constrain participation of MSMEs and women-led enterprises in international trade and global value chains, and how can these be overcome? And how can policies such as easier access to credit, information and government services help to create the best possible outcomes for MSMEs and women-led enterprises? The services sector contributes more than 70% of global GDP, employs 60% of the world s workforce and over 70% of female workers. What is the role of trade liberalization, domestic reforms and digital technologies in enhancing the growth and tradability of the sector. While global value chains generate employment opportunities for women and unskilled work force, they can also reinforce poor working conditions and low wages. How can labor and social protection, as well as gender equality policies, laws, and programs help ensure health and safety in workplace and create decent jobs? How can education policies and skill development strategies best help to capitalize trade for economic empowerment, including through the acquisition of technical and vocations skills for employment, access to decent work and entrepreneurship, and equal opportunities for women and the vulnerable? In particular, what type of policies and interventions could provide women better opportunities for accessing higher skilled jobs, managerial roles and narrow the gender wage gap?

32 Thank you.

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