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Action for Economic Reforms

DRAFTING GENDER-SENSITIVE POLICIES

The author is a candidate of PhD for economics of the University of the Philippines. She developed this two-part article for the Asia Gender and Trade Network Literacy Packet.


” Women all over the world have lacked support for central human

functions, and that lack of support is to some extent caused by their

being women. But women, like men – and unlike rocks and trees and even

horses and dogs – have the potential to become capable of these human

functions given sufficient nutrition, education and other support. That

is why their unequal failure in capability is a problem of justice. It

is up to all human beings to solve this problem.” – Martha Nussbaum,

2002


All over the world, women and men continue to be treated differently at

home, at work, and in society at large. Gender inequalities continue to

exist and are strongly correlated with poverty in developing countries.


As Martha Nussbaum puts it, “When poverty combines with gender

inequality, the result is acute failure of central human capabilities.”

This picture darkens further when we incorporate vulnerabilities. Poor

women with little or no access to social protection are helpless in the

face of health crises, economic crises and other risks. The belief that

development is a right to which all human beings are entitled makes

this failure unacceptable.


The capabilities approach, pioneered in economics by Nobel laureate

Amartya Sen and put into practice in the UNDP Human Development

Reports, is the core of Nussbaum’s theory of social justice and human

rights. Here we examine her version of capabilities, and determine how

this approach can inform policy issues in social protection.


Why do capabilities matter?


Human capabilities are what people are actually able “to do” and “to

be.” Also referred to as “substantial freedom” by Sen, capability is

the freedom “to choose a life one has reason to value.”


The capabilities approach is especially useful because it identifies

the dimension within which meaningful comparisons on quality of life

can be made among nations. Capabilities matter because ultimately,

income or resources (i.e. land and other assets) are worthless unless

they are used to promote human functioning – what individuals actually

do and are.


The UNDP uses this approach in constructing the Human Development

Index, a composite of indicators for longevity, health, knowledge and

standard of living. This idea departs from the traditional focus on

income as the primary indicator of deprivation. While income and

resources certainly have an effect on people’s capabilities, many other

factors (e.g. laws, gender relations, etc.) previously ignored are now

recognized.


Another crucial divergence in this approach is the consideration of

persons individually, rather than collectively as families or

households. This feature is vital for women, because taking the

household as one often masks the dynamics within. This exposes

deprivations within the household arising from unequal distribution of

resources, opportunities and responsibilities among family members.

However, Nussbaum goes beyond the mere comparative use of capabilities.


She emphasizes that human abilities exert a moral claim to be

developed. These claims give rise to corresponding social and political

duties. She lists the central elements of truly human functioning – a

result of cross-cultural discussion and consensus. A minimum level of

each capability is defined, beneath which human functioning is not

available to citizens. Thus, the social goal may be understood in terms

of keeping citizens above this capacity threshold.


Also, the idea of a capability threshold provides a new appreciation

for care in society. Not only should society “arrange to provide care

for those in a condition of extreme dependency,” they must do so

“without exploiting women as they have traditionally been exploited,

and thus depriving them of basic capabilities.”


Nussbaum classifies capabilities into three types:

  1. Basic capabilities are the innate equipment of

  2. Internal capabilities are states of persons that are

  3. Combined capabilities are defined as internal


Thus, the aim of public policy is the promotion of combined

capabilities. This requires both (1) the promotion of internal

capabilities (e.g. by education or training) and (2) the making

available of the external institutional and material conditions.

How does the “capabilities approach” change how we thing about social protection?

Social protection has been traditionally equated with income security.


It follows from the observation that various risks threaten incomes,

livelihoods, and by extension, threaten quality of lives. This is

primarily why social insurance or social security schemes have been the

general response of public policy. These schemes protect beneficiaries

against health risks, old age, disability, death and others.


On the other hand, the concept of social safety nets was developed much

later, when it was recognized that policy shifts in industrial policies

and trade policies displaced workers. Social safety nets are also

relevant in the context of natural calamities. Compared to the

mandatory nature of social security, social safety nets are short-term

measures intended only to assist during periods of adjustment.


What an individual is actually able to do or be, remains relevant in an

uncertain environment with risks. Our question may then be: “What is an

individual actually able to do or be in the face of such risks?”

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Using the capabilities approach changes the traditional view towards

social protection in two significant ways. First, it changes the aim of

social protection. Risks threaten capabilities – not income or

resources. When income is insecure, this translates to insecurity in

capabilities. Insecurity in capabilities means that not all choices are

available to individuals when shocks occur.


By recognizing that capabilities rather than income ultimately matter,

it becomes clear that social protection must secure capabilities – not

merely incomes. The realm for social protection interventions is

broadened.


Second, focusing on capabilities makes visible the capability

deprivation that accompanies the “household-coping mechanisms” that the

poor often resort to in the event of shocks. Often, risk reduction

measures are presented as substitutes – each is as good as another as

long as the purpose of mitigating the impact of the risk when it occurs

is served. While it is often implied that public or private provision

of social protection measures are preferred over household or informal

measures, it is not clear why. The capabilities approach lends clarity

to this bias.


What a person is able to do changes when faced with a crisis. Consider

a woman whose husband falls seriously ill and can no longer work.

Suppose this is a family where each member is at the threshold of

minimum capabilities. What would it take to keep each family member at

that threshold even after the crisis has occurred? If it exists, that

option would perfectly “insure” their capabilities.


Suppose that he is adequately covered by social security. His wife is

able to claim benefits to pay for his medical treatment as well as a

partial disability benefit to replace his income while he is unable to

work. When he recovers, all is well.


But what if there was no social security to fall back on? The family

will have to use up its savings, sell its assets, or borrow from

relatives, friends and neighbors to pay for the medical expense and

replace the lost income. The wife will look for better work

opportunities. She may migrate if there are no opportunities in her

locality. The children might stop schooling and work as well. The

entire family would reduce their consumption to the barest minimum.


Note, however, that the woman also remains the keeper of the house. She

continues with the chores, taking care of the children and her sick

husband. She acts as the default provider of social protection for her

husband and her children, assuming there are no health care or

unemployment benefits elsewhere. When her husband recovers, all may be

well again, but at what cost and whose expense? Clearly, from the

capabilities perspective, this woman is deprived of certain freedoms

because of her socially ascribed role as the family’s default provider

of social protection.


Capabilities perspective


The presence of risks and shocks should not prevent women and men from

living lives they value. Ideally, social protection should work such

that the minimum level of capabilities remains intact with or without

any shock. While people may have internal capabilities “to do” and “to

be,” they may not be free to use them when faced with a crisis. The

availability and accessibility of social protection programs may then

be seen as part of the institutional environment, which public policy

must promote, to create combined capabilities.


Social protection systems exist in both developed and developing

countries. However, existing programs are deficient on two important

points: First, existing social protection schemes are inaccessible to

most women. The most common form of social protection is

employment-based, mandatory social security. Women working in the

informal sector are automatically excluded from this scheme. In

contributory schemes where benefits are tied to wages, women who

receive lower wages compared to their male counterparts are likewise

entitled to lower benefits.


Second, inadequate attention has been given to policy-induced risks

such as trade reform or structural adjustment policies. Policy shifts

as a source of risks are unique because governments have the advantage

of knowing what changes will occur, who the affected sectors are, and

when this change will take place. In Asia, however, hardly any social

safety nets were put in place for trade adjustment. Even where safety

nets were introduced, most of the beneficiaries were men.


The capabilities approach has shown how women typically bear more than

their share of risks in the household. At the same time, gender biases

limit their access to alternative means of social protection. The

capabilities perspective in designing social protection policy demands

that women be central to any intervention.


However, this is not as simple as merely targeting vulnerable women.

One practical drawback in using the capabilities approach is the

challenge of measuring capabilities. To effectively target the most

vulnerable members of society, one must determine their capability

level. Household summary information is insufficient because it can

mask intra-household deprivations. Other information problems exist,

such as the difficulty of tracking down women in the informal sector.

Information search can be costly, especially when social capital is

weak. Also, as default providers of social protection, women’s

capabilities are rendered insecure not only by risks they themselves

are exposed to, but also by those risks their families face. Targeting

women alone cannot completely address those insecurities.


Ironically, women stand to benefit most from universal social

protection programs, rather than narrow targeted schemes. For the

Philippines, this poses a fiscal dilemma. However, it must be

emphasized that if the goal of society is to guarantee a minimum level

of human functioning for each individual, ensuring that social

protection programs are available to all who need them is not an

option, but an obligation.

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