In the current economic climate, forward movements in market
access and trade capacity building for developing countries can
seem unlikely. But at both bilateral and multilateral levels
opportunities exist to create policies that would increase access
to global markets, credit and technical skills for women living in
poverty around the world.
Women Thrive Worldwide (formerly the Women's Edge Coalition) is
a non-profit organization focused on making United States policies
foster economic opportunity for women living in poverty. Women
Thrive brings together over 50 organizations and 25,000
individuals, united in the belief that empowering women is not only
right, but also the most effective long-term solution to world
poverty.
In this unique trade environment, Women Thrive advises
policymakers in the United States on how preferences help women in
developing countries and their economies as a whole, while having
positive impacts on the United States economy. It also strives to
extend gender integration in trade policy, capacity-building
efforts and sustainable development programmes. By holistically
linking the approach to these programmes, 2009 can be a productive
year in global trade.
Global trade, the financial crisis and women
The last decade has seen some of the world's poorest regions begin
to climb out of poverty. In just the last six years, for example,
Africa's exports have jumped by about $240 billion, which is far
more than either humanitarian assistance from wealthy countries or
remittances from the 16 million Africans working abroad. More than
100,000 new jobs have been created on the continent in the
export-based textile industry alone, with up to 90% of these jobs
going to women living in poverty. It's estimated that each woman
employed in the textile sector supports up to seven family members.
But as Americans and Europeans rein in their spending due to the
global financial crisis, these exports from Africa will fall,
putting thousands of new manufacturing jobs in danger. Women are
most likely to have jobs in the informal sectors of the economy
with virtually no job security and are the first to be laid off.
Even when they have jobs in the formal sector, women are
disproportionately affected: they are more likely to be unskilled
in comparison to their male counterparts in factories and are more
likely to be made redundant first.
But the financial crisis will affect more than just export
levels. Women in low-income countries will also have to piece
together food and shelter with fewer remittances from relatives
living abroad. According to the Inter-American Development Bank,
money flowing into Latin America has already slowed.
The last decade has also seen the coming of age for microcredit,
which created new opportunities for millions of the world's poorest
women through small loans to start businesses and gain access to
global markets. Predictions place small, unsecured loans under as
much threat as other credit, if not more. And unlike many other
borrowers, these women have few alternative sources of
financing.
As producers of food and providers for their families, women
across the developing world are already feeling the brunt of
another crisis: rising food prices. In sub-Saharan Africa, for
example, women produce up to 80% of basic foodstuffs both for
household consumption and for sale. The economic slowdown will
delay investments in agriculture and infrastructure projects that
are vital for the long-term outlook of these societies.
Of course, all of this is occurring as developed nations set
aside billions of dollars to rescue their banks and financial
systems, and these same countries are likely to slash their
international assistance budgets.
Increased local, regional and global trade can play a pivotal
role in providing the economic sustainability women need to support
themselves, their families and their national economies.
Accordingly, policymakers in the United States and elsewhere must
consider women's role in the global economy when devising solutions
and future international trade policies.
Women have a disproportionately high risk of being poor and yet,
in many cultures, they are responsible for providing for the
well-being of their families. This makes investing in women an
effective strategy for reducing global poverty.
Take women into account in policy dialogue
While the United States needs to stabilize its markets, this is not
the time to halt all movement on market access and increasing
economic opportunity around the world. How the nation's newly
elected administration will engage international partners on trade
and economics is still unknown.
But some facts are certain. Leaders in the United States in both
the House of Representatives and the Senate have signalled that
they will review all United States trade preference programmes,
which could either be an opportunity for positive advancements or
for increased United States protectionism. Committing to increasing
environmental and labour protections should help the administration
to find common ground with Democratic leaders in Congress who have
had hesitations about extending trade. The improved consensus, as
well as the new protections themselves, should be beneficial for
women labourers, farmers and entrepreneurs. In addition, working
together on priorities for domestic trade adjustment assistance for
workers would increase space for discussion on how trade can
benefit developing countries.
Despite the financial crisis or fears that the United States
will be less aggressive in its approach to global trade, there is
an opportunity to explore how certain aspects of trade can help
economies both at home and abroad. Our view is that the current
United States tariff and quota system inadvertently hits least
developed countries (LDCs) the hardest, and United States trade
preference programmes designed to remedy this often leave out the
very poorest countries. The solution is to extend better coverage
to these LDCs, expanding duty-free, quota-free product coverage to
100% so that it includes sectors that are largely populated by
women, such as agriculture and textiles, while providing permanent
benefits to encourage long-term investment and sustainable growth.
The time is right for a full dialogue in the United States on this
issue.
Finally, the sheer scale of the financial crisis requires a more
collaborative and multi-stakeholder approach to solutions. This
engagement could result in a more synchronized approach to other
pressing trade issues, namely a more robust and coordinated take on
the "Aid for Trade" agenda.