Special event at LDC-IV conference discusses making trade work for women, concludes that policy adjustments, further research are needed
JOINT PRESS RELEASE FROM UNCTAD and UN Women
Geneva, 16 May 2011 -- Women are employed extensively in the formal and informal trade sectors of least developed countries (LDCs), and their contributions through trade to the economic growth of their nations and to the well-being of their households is significant, experts said at a high-level meeting on 11 May.
But women will benefit more and contribute more if their specific needs are taken into account as governments set and implement their trade policies, these officials noted.
The special event, held during the course of the week-long Fourth United Nations Conference on the Least Developed Countries (LDC-IV), was titled "Making trade work for women in LDCs". It was jointly organized by UNCTAD and UN Women.
Country by country, policy makers need to have a clear picture of the economic sectors in which women work, and should be well informed about the challenges women face, panellists said in concluding the debate. In that way, government officials will have the information needed to establish well-targeted policies.
Economic growth and trade expansion do not necessarily lead to social development, and growth that leaves behind important segments of the population, including women, is increasingly being questioned, said UNCTAD Secretary-General Supachai Panitchpakdi. He stressed that several countries enjoying economic growth are suffering from such social exclusion and the related problem of increasing income inequality.
In the same vein, Khandu Wangchuk, Minister of Economic Affairs of Bhutan, told the meeting, "Many approaches to development have lost sight of the end and concentrate only on the means. In our outlook, development is valuable if it is an efficient means to happiness and human development, which includes gender equality".
Speakers noted that recent evidence on the links between expanded education for girls and economic growth has shown that enhanced gender equality increases the level of investment in a country. It also has shown that societies where income inequality and gender discrimination are lower tend to grow more quickly.
Women´s ability to contribute to economic growth and well-being through trade is illustrated by the activities of women cross-border traders, said Kaliza Karuretwa, Director-General in Charge of Investment Climate and Intellectual Property of the Ministry of Trade and Industry of Rwanda. In Rwanda, informal cross-border trade constitutes 20 per cent of total exports. It deals mainly agricultural products and livestock, Ms. Karuretwa said.
Vabah Gayflor, Minister of Gender Equality and Development of Liberia, told the meeting that 70 per cent of women cross-border traders in her country are marketing agricultural products produced locally. Though the volumes of trade are relatively small, the resulting income is regularly reinvested and used to cover family expenses, she said.
In the Southern African Development Community (SADC), informal cross-border trade contributes around 30 to 40 per cent of intra-SADC trade. Women cross-border traders contribute to employment creation, poverty reduction and regional integration, speakers said. They have been able to cushion their countries during the financial crisis and have helped to alleviate food shortages.
In Uganda, after the financial crisis, informal exports of both industrial and agricultural products to neighbouring countries increased dramatically, while official exports declined by 16 per cent, said Michelle Bachelet, Executive Director of UN Women.
Despite its economic and social role, women´s informal trade in LDCs remains a generally under-estimated and neglected issue in trade policies and processes, Ms. Bachelet noted. The main hurdles these women face, including lack of access to credit, services, transport, storage and marketing information, and their exposure to abuses, are ignored in the design of trade policies that only deal with the formal trade sector. This occurs despite the fact that "formal and informal trade are closely linked, through international production networks and global value chains designed to minimize production costs," she said.
Panellists at the session said more should be done to support informal cross-border traders, including through the creation of specific associations. They also said steps should be taken to formalize such activities. They called on UNCTAD and UN Women to continue their cooperative work in the field of gender and trade.
