Gender and the CARIFORUM Economic Partnership Agreement _EPA

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Gender and the CARIFORUM Economic Partnership Agreement _EPA Powered By Docstoc
					Gender and the CF-EU EPA
   Key Socio-economic Issues
             Jason Jackson
         Port-of-Spain, Trinidad
              July 28, 2008
Presentation outline
 Background on gender as an analytic
  category
 Engendering economics
 Trade theory and implications for the
  EPA
 Fiscal and macroeconomic issues in the
  EPA
 Challenges in gender and economics
  research in the Caribbean
What is gender?
 Social rules, norms, customs and practices by
  which biological differences between males and
  females are translated into socially constructed
  differences between men and women and boys
  and girls.
    Results in differences in how the two genders
  are valued and which leads to unequal social and
  economics opportunities and life chances.
Why is gender important?
• Gender inequality is constructed both through
  formal laws and through unwritten norms and
  shared understandings.
 It is not only pervasive across all societies but is
  also the most prevalent form of social
  disadvantage within societies.
 It cuts across all other forms of inequality such as
  class, caste and race.
 Critically in the context of economic development,
  gender is the key to the organisation of production
  and reproduction within society.
Engendering economics
 Engendering economics entails a recognition that
  gender inequalities exist in economic institutions
  and policies, and aims to redress these inequalities
  through the pursuit of egalitarian outcomes.
 Two different starting points for defining what
  economics is about:
        1.efficient allocation of scarce resources amongst autonomous
          [rational] individuals [given tastes and preferences] or;
        2.accumulation and distribution of surplus output [or human
          provision – how do people provide for themselves].
   This approach allows for explicit consideration of
    power, which is typically ignored in NC analysis.
Trade theory
   Neoclassical trade theory rests on highly
    stylized models
       Hecksher-Ohlin, Samuelson 2x2x2 models
   Many unrealistic assumptions
       Free movement of capital & labour (with free trade
        a substitute when this fails)
       Perfect competition
       Constant returns to scale
   Heterodox theories
       bring in unequal exchange, competitive vs
        comparative advantage, social & historical context
Trade effects
   Distributional implications are key:
     Skilled vs unskilled labour;
     North vs South
     Women vs Men
     These need not necessarily be in opposition, but
      failure to recognize differences can produce this
      result.
   NC theory says free trade good for women
       Get rid of wages so labour markets can ‘clear’
       Downward flexibility of wages boosts employment
       Men dominate trade unions; women less
        organized
EPA as free trade agreements
 The EPAs are built on neoclassical
  assumptions about gains from trade.
 Narrow conceptions of market access
       seen as naturally promoting ACP development.
   Little consideration of:
       Supply side issues
       Social and economic inequalities and power
        differentials between and within the parties
   These critical factors increase vulnerability to
    costs and limit potential to take advantage of
    opportunities.
Gender and Poverty
   Gender inequalities exists across income levels,
    but vary in dimension.
       Ex. an increase in the price of basic food affects both
        poor men and women but in different ways,
       However little impact on wealthy women or men;
       Alternatively, the existence of the ‘glass ceiling’ and
        policies to address it affects professional women and
        men, but is of little relevance to the poor.
   Poverty is a gendered phenomenon.
       Men and women experience poverty in different and
        unequal ways and become poor via different, though
        often related processes.
Caribbean Development Challenges
Region characterized by significant heterogeneity


   Antigua & Barbuda             Guyana
       Services-oriented             Agriculture-oriented
        economy (>50%)                 economy (35%)
       $12,149 per capita            $1,193 per capita
        GDP                            GDP
       Avg GDP growth                Avg GDP growth
        6.0% (2001-6)                  1.2% (2001-6)
       57th in HDR                   97th in HDR
       Pop’l 83,000                  Pop’l 760,000
Development issues cut across
region
   Despite wide variation in macro indicators
    countries in region face the same challenges.
       Narrow production structures
       High levels of poverty and inequality
       Similar social dynamics around poverty, inequality,
        class and gender.
Gendered Poverty Cycle
   The poverty cycle has clear gender
    dimensions due to women’s reproductive
    responsibilities
       Compounded in region b/c of high number of
        women-headed households, esp among the poor
       Low household income->poor health and
        malnutrition->inability to perform at school-
        >increased likelihood of dropping out-
        >participation in crime/transactional
        sex/vulnerability to HIV/AIDS.
       Children face a particular set of challenges
       What of single men with weak social networks
   Guyana Basic economic indicators

Table 1(a) Basic Economic Indicators

                                                          2000         2001          2002    2003     2004
GDP at market prices (G$ bn)                             130.0        133.4         138.4   144.1    156.4
GDP (US$ m)                                              712.6        712.2         725.9   743.2    788.7
Real GDP growth (%)                                        -1.4         2.3           1.1     -0.7     1.6
Consumer price inflation (av; %)                            6.1         2.6           5.3      6.0     4.7
Exports of goods fob (US$ m)                             505.2        490.3         494.9   512.8    589.0
Imports of goods fob (US$ m)                             585.4        584.1         563.1   571.7    646.9
Current-account balance (US$ m)                         -115.3       -133.8        -110.6   -90.6    -62.0
Foreign-exchange reserves excl gold (US$ m)              305.0        287.3         284.5   276.4    231.8
Exchange rate (av) G$:US$                                182.4        187.3         190.7   193.9    198.3
Source: Economist Intelligence Unit, 2005. Export and import data exclude services trade.
Table 1(b) Economic and trade structure

National Income (2003)

Origins of gross domestic product           % of total   Components of gross domestic product    % of total
Agriculture, forestry & fishing                  28.9    Private consumption                          49.7
Mining & quarrying                               10.1    Government consumption                       26.3
Construction                                      8.5    Gross fixed capital formation                  35
T ransport & communications                      10.1    Exports of goods & services                 103.6
Government                                       12.5    Imports of goods & services                -117.8
T otal incl others                                100    T otal incl changes in stocks                 100

Principal exports (fob, 2004)                            Principal imports (cif, 2004)

By main commodity group                    Percentage    By main commodity group                Percentage
Agricultural products                            47.1    Agricultural products                        14.4
Fuel and mining products                          4.7    Fuel and mining products                     27.8
Manufactures                                     21.8    Manufactures                                 57.4

By value                                       US$ m     By value                                   US$ m
Gold                                            145.1    Intermediate goods                          168.5
Sugar                                           136.5    Consumer goods                              154.7
Rice                                             55.1    Fuels & lubricants                          169.6
Bauxite & alumina                                44.7    Capital goods                               135.7

By main destination                        Percentage    By main origin                         Percentage
1. European Union (25)                           35.6    United States                                29.9
2. Canada                                        18.7    T rinidad and T obago                        26.6
3. United States                                 16.4    Netherlands Antilles                          9.4
4. T rinidad and Tobago                           6.9    European Union (25)                           8.6
5. Jamaica                                        6.0    Japan                                         6.2
Source: WTO Country Profile, 2005; Economist Intelligence Unit, 2005.
Guyana sectoral employment
   Sugar (16% GDP) employs over 10% of labor
    force (51,202)
       90% men in official statistics; sector provides
        indirect employment for thousands more.
 Rice (10% GDP) employs another ~10% of
  labor force; supports 18,000 families
 Mining (15% GDP) 9,471 jobs in formal sector
 Manufacturing employs 30,631, 23% women
 Major gender differentials in labor force
  participation
       40% women vs 80% men. Highlights importance
        of informal sector.
Guyana sectoral employment
 Tourism key foreign exchange earner
 Women’s official employment exceeds men
  (65% to 35%)
 Community social and personal services only
  other sector to emplo more women than men.
  (65% to 35% as well)
        trade employs slightly more men than women;
        unusual in the Caribbean. May be another
        reflection of women’s low labor participation rates.
    Guyana-EU trade

Table 1(c) Guyana-EU trade 1990, 1995, 2000-2003 (in millions of euros)

                                               1990       1995      2000     2001    2002    2003

EU agro imports from Guyana                     94.5      104.9     158.8   148.3    133.2   132.7
Total EU imports from Guyana                   118.5        146     205.3   204.4    182.5   181.7
EU agro imports as % of total                   80%        72%       77%     73%      73%     73%

Indexed agro exports                               100     111       168      157     141     140
Indexed TOTAL exports                              100     123       173      172     154     153

Guyana agro imports from the EU                     4.2    9.1       17.2    17.6    18.2     16.4
Total Guyana imports from the EU                   44.8   72.5       70.6      78     101    120.9
Agro imports as % of total                          9%    13%        24%     23%     18%      14%

Indexed agro exports                               100     219       414      425     438     394
Indexed TOTAL exports                              100     162       158      174     226     270

Balance (EU exports-imports)                   -73.7      -73.5    -134.7   -126.4   -81.5   -60.8
Source: Adapted from Eurostat, EU15 Trade, 2004.
Guyana-EU trade pattern
   Exports to the EU
       EU exports cover only 141 tariff lines (8-digit level).
       Further, 90% of its EU-bound exports are concentrated
        in a mere 7 product groups.
       These 7 groups based around 3 commodities: sugar,
        diamonds & rice (56%, 20% and 14% of total trade)
       These exports are unrefined commodities i.e. with very
        little value-added. This, it should be noted, is the norm
        across most CARIFORUM members.
       Guyana’s EU-bound exports are one of the most highly
        concentrated (exceeded only by the banana-exporting
        Windward Islands).
       This highlights the narrow production structure in
        Guyana and the need for trade and industrial policies
        that support diversification.
Guyana-EU trade pattern
   Imports from the EU
       In stark contrast to the high level of concentration of
        exports to the EU, Guyana’s imports from the EU are
        spread out across 1,303 tariff lines.
       This compares to 141 tariff lines on the export side.
       However, a single tariff line, aircraft parts, (assessed at
        the 5% level) accounted for 40% of total trade by value
        in 2003 (Euro 46 million) and the next highest line
        (milk and solid cream) accounted for 4% of total trade.
       All of the remaining 1,301 tariff lines accounted for
        less than 2% of total imports (see table 3).
       Potential for trade diversion under the EPA (i.e.
        benefits to the EU)
        Antigua: basic economic indicators

B asic macroeconomic indicators, 2000-06
                                2000           2001        2002        2003        2004        2005        2006
Real sector
Real GDP at                1,249.80         1,269.00    1,294.60    1,350.40    1,420.90    1,496.30    1,668.60
GDP per                   21,517.00        21,073.00   21,091.90   21,664.80   22,645.50   23,902.00   26,968.80
GDP growth                      3.3              1.5           2         4.3         5.2         5.3        11.3
GDP Sectoral
Agriculture                       3.9           3.8         3.8         3.8         3.7         3.6         3.3
Mining                            1.7           1.7         1.7         1.7         1.4         1.7         2.2
Manufacturin                      2.3           2.3         2.3         2.3         2.1         1.9         1.7
Electricity and                     3           3.9         3.1         2.9         2.9         2.9         2.8
Construction                     12.8          13.4        13.8        14.1        13.9        16.2        19.9
Wholesale and                    10.9          10.4        10.1        10.3        10.1         9.9        10.3
Hotels and                       11.5          10.2         9.5          10        10.1         9.9         9.1
Transport and                    20.5          20.2          20        20.5        21.7        20.8        20.2
Financial and                    16.3            16        17.1        16.5        16.7        16.1          15
Government                       17.5          17.4          18        17.7        17.4        16.8        15.2
Other Services                    7.6           7.4         7.6         7.3         7.3           7         6.6
Less inputed                        8           6.4         7.1         7.3         7.2           7         6.5
OECS Services exports
   Travel, commercial and transportation
    services key in OECS.
       Ex. Travel services receipts US$914m in 2003,
        triple goods receipts.
   Services comprise 80% of OECS exports &
    over 85% of Antigua exports
       Travel services exports 73% of OECS services
        exports; 70% and 65% of Antigua & St Vincent.
       Commercial services 16% of OECS services
        exports; 30% & 20% of Dominica & St. Vincent.
       Transp. services 10% of OECS services exports
Services sector employment
   Services provides ~70% OECS employment
       Tourism 40%; government 20%.
 Women tend to outnumber men in services
  sector employment.
 Antigua women comprise
     60% hotel & restaurant sector,
     55% of financial services;
     54% of wholesale/retail trade
   Key issue though #s but relative placement of
    women and men, and intersection with class.
     Women concentrated in housekeeping in hotels
     Glass ceiling in white collar jobs
     Poor male edu performance and implications for
      participation in knowledge intensive services.
OECS Services trade performance
   Slow growth in total services exports,
    especially in latter half of period 1993-2003
       3.2% vs 4.6% for total CARICOM
       Performance weakest in Dom & Antigua with
        contractions in latter half of period.
   Travel exports similarly performance
       3% growth; 6% in Dom & STK; flat in AB & STKN
   Commercial services 4.5% growth
       15% growth in first half of period; 5% contraction
        in latter half
       Due to 30% contraction in insurance and financial
        receipts.
   Result: ~20% loss global services mkt share
OECS Services competitiveness
 OECS Services sector critical but exhibits
  weak performance.
 Tourism product characterized by high cost
  structure
 Grenada survey suggests:
       high cost of capital; high cost of doing business;
        inefficient transport.
 Investment incentives costly (9.5%-16%
  GDP) but showing little benefits.
 Mode 4 services trade important but benefits
  are through remittances and difficult to
  quantify, esp relative to cost of emigration
  (long term social and economic costs)
OECS Merchandise trade
   Goods trade 20% of exports; 70% imports
   Worsening trade balance (1.25-1.4) due to
    rising imports and stagnant exports.
       EU-bound exports worse performing, annual
        declines ~6%
       Consistent growth of exports to CARICOM (6.5%)
        and NA (10%, latter half of period)
   Composition of goods exports worrying in
    face of EPA:
     EU exports low value commodities e.g. bananas
      and sugar
     NA exports relatively high value-added technology
      intensive electronic and electric goods
Agriculture in Antigua
 Antigua least agro-focused but sector still
  critical, esp for the poor.
 Antigua agro 3.6% of GDP. Employs 8% of
  labor force, (~80% men in official data)
       50% output fruits, veg, ground prov. for local mkts
       50% fisheries, incl lobster for export
   Gender issues:
       Men dominate fastest growing segment of
        fisheries;
       Women concentrated in least competitive sector of
        fruits and veg;
   Key issues include gender differentials in
    agro growth and exports; food security.
Gender & Livestock holdings in StL
   Only 3% of all households own small
    livestock (2% of the rural poor)
       10% of all households own large livestock,
        including 19% of the rural poor.
   Women-headed households are slightly more
    likely to own small livestock e.g. chickens, but
    are significantly less likely to own large
    livestock e.g. cows, goats or pigs.
     Rearing small livestock may offer greater potential
      to earn a steady income as small livestock may be
      more readily sold than large livestock such as
      cows.
     Focus groups confirmed that a significant number
      of women reared chickens for income.
Preliminary Summary
   Data shows two key trends in the region:
       Declining export performance in services,
        agriculture and manufacturing
       Important gender differentials in labor market
        participation
   Further research:
       Informal sector data is crucial
       Understanding micro-dynamics of competitiveness
        to inform policy and progammatic action

				
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