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Action for Economic Reforms

GENDER-AWARE POLICY ANALYSIS

The author is a Research Associate of Action for Economic Reforms. This article was published in the Yellow Pad column of BusinessWorld, 29 November 2004.


A common reaction among economists when one mentions gender is, “Gender? Aren’t there more important things in this world?”


This reflects the common notion that gender equality is something one

should be concerned with only after what are perceived to be “more

fundamental” problems have been addressed. From this point of view, the

more fundamental problems include eradicating poverty, narrowing income

inequalities, protecting the environment and ending hunger, among

others.


Of course, these are all valid and certainly desirable social goals.

What some economists do not realize, however, is that in each of these

goals, gender-based inequalities significantly influence policy

outcomes. Furthermore, the narrowing of gender equalities contributes

towards the achievement of these goals.


It is in this sense that gender is often described as a cross-cutting

issue. After all, “the poor” and “the marginalized” are really

comprised of poor and marginalized men and poor and marginalized women,

who experience poverty and social exclusion differently. They have

different expectations of their entitlements, duties and aspirations,

and face different challenges. However, by ignoring gender as an

analytical category, one simply assumes that these groups are

homogeneous and are affected by policies in the same way.


Gender equality as a social goal


Gender relations interact with policy in both directions. On the one

hand, gender equality is a human rights issue, and should be among the

goals of policy. Narrowing inequalities does not only refer to income

or class-based inequalities, but also inequalities arising from gender,

race, ethnicity, and other forms of discrimination. Sustainable

development cannot be achieved without the full and equal participation

of all individuals – including women – in the development process.

On the other hand, existing gender relations – how men and women relate

to each other – and the inequalities arising from such relations

influence the impact of policy. Therefore, policies that ignore the

influence of gender may not yield expected results.


A very clear is example is the case of public health services. For

example, fiscal austerity measures that squeeze public health spending

may be thought of by policy makers to be affecting the poor

symmetrically. However, this type of policy affects women more, not

only because they have greater health needs due to childbearing, but

also because they are primarily responsible for the health care of

their families. Thus, any policy that attempts to “correct” the

negative impact of reduced public health services on the poor, but

which ignores the disproportionate impact on women, cannot be effective.

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A gender-informed view of the economy


There is little debate on the significance of gender in micro-settings,

such as the household or the labor market. However, many economists

find it difficult to see the relevance of gender at the aggregate or

the macro-level. This springs from the deep-seated belief that

macroeconomic policy instruments (fiscal policy, monetary policy, etc.)

are gender-neutral – that is, they affect both men and women in the

same way.


The contrary view, however, is that gender is crucial to our

understanding of the economy as a whole, not only in household

economics or microeconomics. In addition, gender-aware economists

question the very foundations of economics as a discipline. Rather than

defining economics as a study of choices of market participants, as an

acclaimed introductory economics textbook by Mankiw asserts,

gender-aware economists propose a broader framework as a starting point

– one that examines the “provisioning of material needs to support

life.”


To see how gender informs our view of the economy, it is important to

realize that the household is not merely the site for consumption, but

is a key production sector of the economy. Renowned feminist economist

Diane Elson presents a schema for a gender-aware economy in the United

Nations Fund for Women (UNIFEM) report, “Progress of the World’s

Women”. She notes that if indeed economics is concerned with the

provisioning of material needs to support life, then it should follow

that goods and services made available through unpaid work within the

household are just as important as those produced by paid labor and

acquired through the market. However, household production activities

have been traditionally rendered “invisible” because of the focus on

market processes.


In recent years, there have been attempts to make unpaid work visible,

such as the valuation of unpaid family work in agriculture. However,

there are inherent limitations to approaches of mainstream economics

because of its underlying view of work as an activity that creates a

marketable good or service. Although domestic chores may be deemed

marketable – one can hire another person to do these tasks – a

significant part of what feminist economists call “caring work” or

“social reproductive work” is not marketable.


In the United Nations Development Program (UNDP) Background Paper

“Trade, Gender and Poverty,” Nilufer Nagatay highlights three main

conceptual starting points for a gender-aware approach to

macroeconomics:


Labor is a produced input


Just as capital is a produced input, so is labor. An economy’s labor

force does not simply reproduce and maintain itself costlessly. Rather,

labor needs to be reproduced on a daily and an intergenerational basis

through non-market processes. This process of social reproduction rests

on the unpaid work of families and communities, and is often socially

ascribed as “women’s work”. The scope of macroeconomic analysis must be

broadened to account for those costs, and make explicit the interaction

between production and social reproduction. By disregarding the

“reproductive economy”, Nagatay emphasizes that what may appear to be

“efficient” from a market-focused analysis may in fact be socially

inefficient once full labor accounting and time-use are considered.


Gender is a relation of power and social stratifier


Comparable to class, race and ethnicity, gender is a stratifier of

social life. It influences the economic behavior of agents and affects

the distribution of output, work, income, wealth and power. Men and

women do not necessarily respond to the same economic phenomena in the

same way.


Institutions bear and transmit gender biases


Institutions cannot be assumed to be gender neutral. Many

economists take for granted the fact that institutions mediating

between the micro and the macro levels of the economy – including “free

markets” – bear and transmit gender biases. The mere fact that gender

wage gaps still persist even in the flexible labor markets of developed

countries demonstrates this. Gender relations are not given or

exogenous, existing independent of the economy. Rather, they permeate

all economic activities and are constantly being redefined.

These observations taken together translate to a totally different

macroeconomic picture than what is suggested by standard economic

theory.

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Gender-blind policy constrains development


In addition to all the points raised above, gender is important for

policy because gender inequalities carry a financial and social cost

not only for women, but also for men, and for society in general. The

United Nations Population Fund (UNFPA) Report “The State of the World

Population 2000” emphasizes that inequalities between men and women

result to lost opportunities and prevent mutual gain. To be able to

design policies to eliminate gender biases, it is essential to

recognize the costs of gender inequalities, and make them visible.


The report notes that in general, gender discrimination:

  • “Diverts resources from women’s activities, sometimes in favor of less productive investment in men;

  • Rewards men, but also some women, blinding them to productive alternatives;

  • Obstructs social as well as economic participation and closes off possible partnerships; and

  • Reduces women’s effectiveness by failing to support them in meeting their responsibilities, challenges and burdens.”


“En-gendered” policymaking


The simple recognition of social reproduction as a separate sector of

economic activity, as suggested in Diane Elson’s framework, is a good

starting point for gender-informed policy discussion. This enables one

to ask the same policy questions, but with the important difference of

being able to identify gender-differentiated impacts and gender biases.

Incorporating gender analysis into policymaking makes explicit the

interaction between the goals, processes and achievements of policy on

the one hand, and gender relations on the other.


It should be noted that incorporating gender analysis into the

policymaking process requires a different set of information. These

include: (i) sex-disaggregated data for all standard data currently

collected, (ii) sex-disaggregated time use data, and (iii) monetary

valuation of household production.


Promoting gender equality in the Philippines


To its credit, the Philippines has made substantial gains towards the

mainstreaming of gender in policymaking. A prime example is the 1992

Women in Nation-Building and Development Act (RA 7192), which requires

each government agency to allocate 5 percent of its budget to Gender

and Development (GAD) programs. However, compliance has been low and

enforcement difficult, reflecting a general lack of appreciation for

the objectives of the policy on the part of government agencies.


More than mere allocation of guaranteed funding, however, it must be

emphasized that the success of the GAD policy lies in the quality of

gender analysis that motivates the specific programs and policies it

funds. Ideally, projects and programs under GAD aim to promote the

equal status of women with men either by compensating for existing

biases, or by correcting for biases perpetuated or created by its own

programs. Gender analysis is necessary in identifying which areas need

intervention.


Much has yet to be achieved in terms of systematizing gender analysis

in policy dialogues and in the policymaking processes. Although they

cannot change attitudes towards the issue of gender overnight, it is

imperative for government to consistently push for better GAD

compliance and initiate gender-aware policies if only to provide strong

signals for its commitment to the goal of gender equality.


Most importantly, these steps are strategic in providing women with an

institutional framework within which they can demand their rights. Over

time, expanding the realm of possibilities for women will contribute

towards transforming gender relations in a way that is just and

equitable.

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