Ten Principles for Challenging Neoliberal Globalization ”Facts and Issues” By Association for Women’s Rights in Development (AWID) |
Neoliberal globalization is one of the primary threats to women’s human rights and equitable, sustainable development that we face today. These ten principles are starting premises for opposing this narrow economic agenda and devising alternatives. Every day and in almost every aspect of life, gender equality and women’s rights are affected by economic policy. Choices and opportunities regarding education, health care, employment, and childcare, for example, are all directly impacted by national economic agendas and international financial forces. Women therefore have a lot to lose when economic policies do not take gender discrimination and gender roles into account. At the same time, women’s rights can be advanced through economic policies that put their concerns, needs, and livelihoods at the centre of the analysis. Neoliberal globalization, which is the dominant driving force for economic policies throughout the world today, is therefore a crucial focus of gender equality advocates. What is Neoliberalism? Neoliberalism is a particular brand of economic theory that has gained prominence in recent decades, becoming the predominant ideology steering globalization, macroeconomic policy and political decision-making in much of the world. Primarily a response to the economic downturn and international debt crises of the 1970s, neoliberalism is based on an unwavering belief in “free markets”. It promotes competitive market capitalism, private ownership, “free trade”, export-led growth, strict controls on balance of payments and deficits, and drastic reductions in government social spending. This formula is assumed to promote economic growth; which is seen as the means and end to economic problems and poverty. Until recent decades, national governments were responsible for economic policies which affected their domestic economies. Yet since the 1970s, political, social and economic processes have stretched across borders and the neoliberal project has spread throughout the world. In the 1980s, international financial institutions (IFIs) began to impose their economic prescriptions on countries that accepted loans or aid from them through “conditionality”, a central feature of structural adjustment policies. [1] While the programs of IFIs have evolved over the years, the neoliberal agenda remains the standard for what is considered “sound and prudent” economic policy. National Poverty Reduction Strategies of the World Bank continue to be framed around these types of policies. [2] In addition, international investors, donors, and trade organizations (e.g. the World Trade Organization) have increased powers of persuasion with respect to economic policies. Their overwhelming preference for policies of trade liberalization and investor rights has further solidified this vision of development and governance. Neoliberal economic globalization has not brought about equality or eliminated poverty; it has instead resulted in a concentration of wealth in certain parts of the world and in the hands of certain people. In most areas, marginalized members of society — especially poor women — have not benefited from neoliberal economic restructuring. For example, in many regions women are disproportionately suffering from disruptions to their local economies, from the continuing undervaluing of their work, and from the insecurity brought about by the increasing prevalence of casual and flexible jobs. Women are often the primary users of social services, they are frequently employed in the public sector and in service industries, and they lack access to capital, credit and property rights. All of these factors exacerbate the promotion of gender equality in this era of globalization. The System Needs to Change in at least Ten Different Ways Accounts in the media, by politicians, and in much of the literature imply that neoliberal globalization is irresistible, uncontrollable and inevitable. This is not true. We can influence processes of globalization and shape the policies and structures that govern our lives. The global popularity of the World Social Forum process is a key indicator that alternatives can be harnessed towards making ‘another world possible’. As gender equality advocates, we can look for biases in economic policies that undermine gender equality and work to address the economic inequalities that face women and other marginalized groups. Strategies and policies can not necessarily be generalized from one context to another. We can, however, articulate feminist principles to guide our analysis, our advocacy and our policy recommendations. Feminist principles (feminist in that they underscore equality for women through structural change) can be applied in various contexts, in accordance with the local needs, priorities and circumstances.
“It seems utopian, but the world must recover its capacity for dreaming and in order to start, a new economic paradigm is required…
[3]
” 1. Policy-Making Processes must be Participatory and Transparent While national policymakers will often take credit for creating policies to boost the economy and many boast about taking stakeholders needs into account, it is always necessary to look behind the scenes to find out who is really calling the shots. In poor countries, especially those that rely heavily on development assistance and loans from foreign sources, policies are often primarily developed based on growth models and economic theories advanced by the IFIs and certain Northern universities. As a result, states that hold disproportionate power within the IFIs (most notably the United States) and Northern trained policymakers in ministries of finance play a central role in dictating the economic policies of developing nations, often with little direct knowledge of the realities and priorities of poor people within those countries. Furthermore, economic policies developed for one country are frequently applied to other countries with only slight modifications. Meaningful participation requires more than mere consultation. The country consultations that have been undertaken in conjunction with the Poverty Reduction Strategy process have been gender-blind, male dominated, and ineffective in terms of responding to local needs and perspectives. [4] Moreover, consultation processes have been used as instruments to legitimize economic policies imposed by donors. Economic policy is seldom based solely on technical calculations – the calculations and economic models should inform deliberative democratic processes where the policies are actually formulated. The voices of local people, particularly women’s rights advocates, therefore must be given real weight in all stages of policy development, implementation and evaluation. 2. Recognize Diverse Experiences and Identities to Determine who Wins and who Loses Neoliberal globalization has been uneven, contradictory and complex. Some women have benefited from new opportunities brought about by processes of globalization, while many others are struggling to survive in the face of insecure employment, rising prices, reduced services and escalating poverty. Often it is those from marginalized groups, such as racial or ethnic minorities, indigenous people or poor women and men, who are negatively impacted by neoliberal economic policies. Gender, race and class analysis is therefore essential to both understanding the impacts of neoliberal policies and for developing alternative policies that put sustainable development and human rights ahead of profits. For example, prioritizing the needs of the most disadvantaged and discriminated against is one way to ensure that policies are just, empowering and transformative. “Multiple and radical resistances to neoliberalism are spawning alternatives in many places but, alas, these are being frustrated by institutionalized market fundamentalism. The challenge is to interlink there resistances into a truly global movement by all of humanity and multiply spaces where people’s alternatives that are grounded on democracy, diversity and inclusiveness could be debated, crafted and actualized with greater force.” [5] - Josefa (Gigi) Francisko 3. Transformative Economic Policies Must Address Power Dynamics Neoliberal policies, in common with most economic theories, often do not address the power differentials that exist between “economic agents” (i.e. individuals) and within households. Policies that assume that men and women have the same access to and control of resources, the same ability to engage in paid employment and equivalent responsibilities in the home, will generally negatively impact women. Women may be unable to take advantage of new opportunities created by economic reforms; they may have increased burdens as a direct results of the new policies. Moreover, while poverty is interrogated and problematized, wealth tends to be unquestioned and herefore the inequalities which permit the accumulation of excessive wealth by certain individuals and institutions are not addressed. Gender equality advocates need to push for alternative economic prescriptions that address the root causes of power differentials in specific communities, whether they are cultural, economic, religious, social or otherwise. Examples could range from programs of land redistribution, alternative savings and investment mechanisms, nonmonetized exchange arrangements, and subsidized childcare, to global taxation and redistribution schemes (e.g. a “Tobin Tax”), debt cancellation, and reparations for past injustices. Assumptions about the roles and responsibilities of women, class and ethnic divisions, inequalities in the law, and skewed distribution of resources ultimately can only be rectified through holistic economic, social and political strategies. 4. Account for Women’s Unpaid Work One of the biggest problems with many economic policies is their failure to account for women’s unpaid work. For many women, unpaid work, (including attending to children, cooking and small-scale farming) accounts for a large portion of their contribution to the economy. Together, unpaid housework, volunteering and community work is the single largest sector of all nations’ economies. [6] If women did not contribute their unpaid labour, the monetized economy could not function. The strength and well-being of the paid labour force is directly correlated to unpaid care work, the bulk of which is carried out by women. Furthermore, economic policies that do not account for this unpaid labour are likely to have a detrimental impact on women by assuming that their ability to contribute unpaid labour is unlimited. Too much unpaid work and too little care are both detrimental to quality of life. [7] Therefore, when economic policies take unpaid work into account, communities can have better programs for food security, childcare, education, water and sanitation, and all the other essential elements that guarantee the well-being of households. 5. Make the Links: Local,National, Regional and Global Trade liberalization, privatization of essential services, foreign investment promotion, and labour market flexibilization are all part of the same agenda. Activities in national ministries of finance, regional trading bodies and international financial institutions are all interconnected. While policy coherence is not well-developed between human rights institutions and financial institutions (in other words, economic policies are not necessarily in line with human rights law), coherence between financial institutions is well coordinated. In order to challenge the neoliberal agenda therefore, gender equality advocates must be sophisticated in making the analytical links between local, regional and global levels of economic policy making and their impacts. For instance, changing the conditions of Mexican women factory workers could simultaneously involve: workers organizing at the factory level to demand better working conditions; legislative changes and enforcement at the national level to require higher levels of protections for workers; using international mechanisms such as those of the International Labour Organization to guarantee the rights of workers; and advocacy at the international level to influence the provisions of trade and investment agreements that impact on working conditions. In terms of advocacy and activism therefore, we need to make the links in order to select the most strategic venues for raising our concerns. 6. Protect Human Rights and Prioritize Equality Traditional economic theories are built around the model of a ‘male breadwinner’, that is, a full-time, life-long worker who supports his family. Those who do not fit into this norm are accorded lesser rights because they are seen as dependents. A focus on human rights, therefore, is important for women as it provides a counterweight to policies focused purely on economic growth and models which continue to assume that women occupy a position of dependency on men. [8] Pro-women, pro-poor alternatives to neoliberal globalization would acknowledge the equal worth and dignity of each person in their own right, advancing equality and human rights as a means of development. In the current system, many women are employed in informal and unregulated sectors, free trade zones, or do home-based work. Women are the majority of the small-scale farmers on the planet and also the majority of those employed in factories producing for export. Many are not protected by labour laws, are not unionized, and are isolated from their families, communities, and other women who share their experiences. Moreover, the evidence shows that women’s rights to food, to housing, to health care, and to political participation (to name just a few), continue to be violated the world over, the violations often resulting directly from or exacerbated by trade liberalization and investment policies. Instead of only analyzing impacts and developing social safety-nets after the fact, we need to institutionalize regulations and structures that will provide for the welfare and empowerment of women. Economic planning must therefore include economic and social policies that support the equitable distribution of resources, universal provisioning of essential services and the protection of human rights. 7. Do Not Underestimate the Role of the Nation State Many neoliberal policies involve limiting state involvement in the economy, often through privatization of previously state-run enterprises including the provision of water, electricity, health care and education. A defining characteristic of the contemporary state is the subordination of social policy to the demands of labour market flexibility and competitiveness. Many contend that governments have lost their power in the face of IFIs and transnational corporations, but despite the shifts and structural changes that have taken place the state continues to play many important roles. As the manager of the domestic economy, the protector of marginalized groups and the voice of the nation in international institutions, national governments continue to be powerful actors in their own right. Governments have international obligations (including women’s human rights commitments) and responsibilities for redistributing income and developing action plans for eradicating poverty. They should not be allowed to ‘get off the hook’ by blaming all their woes on international actors. National governments are therefore important entry points for gender equality advocates, between local constituencies and international institutions. “Promoting gender-sensitive economic policies is not only about establishing safety nets. It is primarily about ensuring that there will be no need for safety nets. In this regard, a feminist approach would posit that sound and equitable policies require men and women to have equal access to, and control over, productive resources, equal participation in decision making, and equal distribution of the benefits of their work.” [9] - Zo Randriamaro 8. Align Goals and Indicators with Gender Equality and Women’s Rights Economic policies often aim at maximizing economic efficiency and growth, as measured by and indicator such as Gross Domestic Product. [10] Increased economic efficiency and growth are abstract concepts that say nothing about increasing human welfare, protecting human rights, or ensuring gender equality and empowerment. We therefore need to question the conventional wisdom of what constitutes “sound and prudent” economic policies. Shortsighted and narrow definitions of efficiency Do not give an accurate account, including how resources are distributed and the full costs of production. By articulating the goals of a policy and the indicators of success in terms of increasing equality, improving the lives of the most marginalized, realizing human rights, and achieving sustainable human development, policies that are pro-women and pro-poor will more likely be implemented. Indicators of progress must be tangible, concrete and meaningful. The end goal cannot be solely that more women are engaged in paid work. We must instead look to the types of jobs they have secured, the benefits they receive, their working conditions and their paid work. 9. Hold Decision-Makers To Account Economic policies have often failed large segments of the population, including and especially women. By holding decision-makers to account for these failures, redress can be obtained for the ‘victims’ and better programs can be developed for the future. Actors that may be held accountable include governments, IFIs, private corporations and others. Accountability may be based on commitments to international human rights treaties, domestic constitutional guarantees or other regulatory frameworks, and also political processes. Developing and using accountability mechanisms that are accessible, transparent and effective are key strategies for guaranteeing women’s rights in this era of neoliberal globalization. 10. There are Alternatives to Neoliberal Globalization Finally, it is important to remember that despite messages to the contrary, there are alternatives to the current dominant paradigm. Macroeconomic policy is not given or non-negotiable. Countries that do not follow the IMF-prescribed policy agenda do not necessarily have to suffer from poverty, insecurity and hyperinflation; there is no “one-size fits all” policy. We have feminist analyses of the economy – what we need now is to further strengthen advocacy efforts based on our analysis in order to bring about a more equitable, just world. These principles have been articulated in order to provide direction to gender equality advocates all over the world who want to oppose neoliberal globalization. As a check-list for evaluating local policies, a training framework for understanding globalization, a rallying point for campaigning and lobbying, or an empowering and unifying agenda for diverse social justice groups, these principles can assist us in developing global solutions to global problems because, as the poignant motto of the World Social Forum reminds us, “Another World is Possible”. Economic Terms Demystified Economic Growth: an increase in the amount of money flowing through a country’s economy. Promoting economic growth is the goal of much economic policy because it is often incorrectly assumed that economic growth is good for everyone. Efficiency: the allocation of goods and services such that no person can be made better off without making someone else worse off (or such that those who are made worse off can be compensated by those who are made better off). Efficiency is usually a goal of economic policies. An efficient allocation, however, does not necessarily require an equal or fair distribution of goods or services. Fiscal Policy: policy relating to government revenue, particularly taxation and spending. Heavily-Indebted Poor Countries (HIPC): countries that have accumulated a large amount of debt during the 1980s and as a result qualify for the HIPC debt reduction initiative of the World Bank and International Monetary Fund. Macroeconomics: refers to economic issues that concern the performance of the economy of a whole country, including the overall output and income of a country, unemployment, trade, interest rates, investment, and government budgets (as opposed to microeconomics which looks at the economic activity of individuals or small groups). Monetary Policy: the government policy that controls the amount of currency available in an economy. Neoliberalism: an economic theory which opposes state intervention in the economy and believes in the free operation of the market. Poverty Reduction Strategy Papers (PRSPs): comprehensive action plans for combating national poverty. These are required by the World Bank and International Monetary Fund in order for a country to access development loans and aid. Privatization: occurs when services that were owned by the government are sold to private companies. When privatized, services such as health care, education and social services are provided by companies who aim to make a profit. A belief in the inherent superiority of profit-oriented production has lead to a drastic increase in privatization in recent years. Structural Adjustment: processes of reform imposed mostly on poor countries requiring that they export more products, privatize services, increase taxation, devalue their currency, and reduce the government’s role in the economy in order to stabilize their economies. In the 1980s, structural adjustment policies (SAPs) were imposed by the World Bank and International Monetary Fund in over seventy developing countries. Trade Liberalization: the reduction of restrictions (including tariffs, quotas and regulatory standards) on the trade of goods and services across borders. Myths and Realities about Economic Policy Myth: Economics is pure science. Reality: Economics is often represented as technical and scientific, based on ‘truths’ from mathematics or statistics. However, economic policy is profoundly political and represents a certain set of subjective assumptions about power and the distribution of resources. Myth: Economics is gender-neutral. Reality: Traditional economic analysis can have devastating impacts on women because it does not take into consideration the gendered nature of our societies and the resulting gender differentiated impacts of economic policies. Women’s assumed status as secondary wage earners in the paid labour force results in women experiencing more poverty than men, for example. The privatization of public services increases women’s unpaid work as they take over where the public sector leaves off in terms of nursing the sick, educating children and caring for the elderly and those in need of assistance. And as companies cut costs by laying off employees, reducing salaries and using home-based workers, women are the most affected. Furthermore, the impacts of economic crises are more severe for women. Applying a gender analysis to economics reveals biases that exclude women and allows for the redress of economic inequalities that face women. Myth: Gender equality advocates do not have the expertise to engage with macroeconomic policy. Reality: Gender equality advocates come from all walks of life and are all affected by economic policies in their day-today lives. They are therefore capable of critiquing economic policies and of suggesting policy directions that would empower women. Who is Working Towards Economic Gender Justice? Many NGOs, civil society organizations, grassroots movements, academic institutions, and individuals all over the world are challenging the neoliberal globalization model from a gender perspective. Some organizations you might want to contact or become involved with include:
African Women’s Economic Policy Network (AWEPON):
Articulación Feminista Marcosur:
Development Alternatives with Women in a New Era (DAWN)
Gender and Economic Reforms in Africa (GERA)
Iniciativa Feminista de Cartagena:
International Gender and Trade Network (IGTN):
International Network for Economic, Social and Cultural Rights(ESCR-Net):
KARAT Coalition:
Maquila Solidarity Network:
Network Women in Development Europe (WIDE):
Third World Network (TWN)-Africa: Women’s Edge Coalition: http://www.womensedge.org1825 Connecticut Avenue NW, Suite 800, Washington, D.C. 20009, USA
Women’s Environment and Development Organization(WEDO):
Women’s International Coalition for Economic Justice (WICEJ):
AWID, Women’s Rights and Economic Change © The Association for Women’s Rights in Development is an international membership organization connecting, informing and mobilizing people and organizations committed to achieving gender equality, sustainable development and women’s human rights. A dynamic network of women and men, AWID members are researchers, academics, students, educators, activists, business people, policy-makers, development practitioners, funders and others, half of whom are located in the global South and Eastern Europe.
AWID’s goal is to cause policy, institutional and individual change that will improve the lives of women and girls everywhere. Since 1982, AWID has been doing this by facilitating on-going debates on fundamental and provocative issues as well as by building the individual and organizational capacities of those working for women’s empowerment.
[1] See AWID Facts & Issues No. 5, “The World Bank and Women’s Rights in Development”, for a more detailed discussion of conditionality. [2] See ibid. [3] Cecilia Lopez, (former Minister of the Environment in Columbia and member of Iniciativa Feminista Cartagena), Plenary Speech, AWID’s 9th International Forum on Women’s Rights in Development: Reinventing Globalization, October 2002. http://es.awid.org/forum/plenaries/day1cecilialopezspanish.html. [4] See Ann Whitehead, Failing Women, Sustaining Poverty: Gender in Poverty Reduction Strategy Papers, Report for the UK Gender and Development Network, May 2003. See also Elaine Zuckerman and Ashley Garrett, “Do Poverty Reduction Strategy Papers (PRSPs) Address Gender? A Gender Audit of 2002 PRSPs” (Gender Action, 2003). [5] Josefa (Gigi) Francisco is the South-East Asian Regional Coordinator of DAWN and the Executive Director of the Women and Gender Institute of Miriam College Foundation in Quezon City, Philippines. [6] With the possible exception of the United States. [7] See Elson, D., and N. Catagay, “The Social Content of Macroeconomic Policy” World Development, 28:7 (2000) [8] Diane Elson (Professor, University of Essex), at the Conference “Women’s Access to the Economy in the Current Period of Economic Integration of the Americas: What Economy?”, Montreal, 23-26 April 2003. [9] “African Women Challenging Neo-liberal Economic Orthodoxy: The Conception and Mission of the GERA Programme”, Gender and Development, 11.1 (2003): 47. [10] Gross Domestic Product (GDP) measures all of the market transactions that take place in a country.
|
 |
