Trade, gender and poverty

This paper focuses on the relationship of trade, on the one hand, with gender and poverty, on the other, within the context of the human development paradigm. Specifically, it examines the impact of trade liberalization on gender inequalities (primarily via employment, wages and the care economy) and the impact of gender inequality on trade performance. These interactions are discussed in light of main-stream literature on trade, growth and poverty reduction, which defines poverty in terms of income or consumption and largely ignores gender. The paper also considers the policy implications of a gender-aware approach to international trade analysis and the current world trade regime.

The principal conclusions that emerge from this analysis are:

• that men and women are affected differently by trade policies and performance, owing to their different locations and command over resources within the economy
• that gender-based inequalities impact differently on trade policy outcomes, depending on the type of economy and sector, with the result that trade liberalization policies may not yield expected results
• that gender analysis is essential to the formulation of trade policies that enhance rather than hinder gender equality and human development

The policy implications of the findings of the report are likely to be different in different countries and also depend on the dimension of gender equity that is being addressed. Specifically, it suggests:

• in line with the recommendations of the Beijing Platform of Action, there needs to be a greater gender awareness in the design and formulation of trade policies and there needs to be gender mainstreaming and capacity building with regard to gender awareness in trade ministries. The gender implications of all issues under negotiation should be fully assessed and discussed within regional and multilateral trade negotiations
• gender awareness in trade policy formulation requires deeper and contextualized understandings of the interactions between gender inequalities, class-based inequalities and poverty, on the one hand, and trade policies and trade performance, on the other. County-specific studies of the gender-differentiated impacts of trade policies and on the ways in which gender relations and inequalities affect trade performance are needed
• the current trade and international financial regime privileges capital vis-à-vis labour and the rights of investors take precedence over the human rights of the large majority of citizens, especially those in developing countries. All institutions dealing with trade policies and governments need to be made accountable and transparent, and policy-making needs to be made democratic and participatory
• policy changes are unlikely to occur unless there is a substantive democratization of policy-making at all levels. In particular, the voices of women and poor people, which are largely missing from trade policy negotiations, need to be heard and respected

[adapted from author]