Untangling links between trade, poverty and gender - ODI Briefing Papers 38

• Changes in employment, prices and social expenditures are three pathways linking trade and gender • Trade liberalisation may have positive or negative impacts, but there are risks for women • Trade reforms must be complemented by social and labour policies to ensure that women can take full advantage of the new economic environment L inks between trade, growth and poverty reduction are under global scrutiny by a broad range of policy and civil society actors, as are gender dimensions of trade liberalisation. Proponents assume that growth will benefit women, given the disproportionate growth of their employment in export-orientated, labour-intensive light manufacturing. Critics, meanwhile, fear that women may be more vulnerable to negative effects of trade liberalisation and less able than men to benefit from positive impacts. Evidence suggests, however, that the reality is more complex and context-specific. A gender analysis of trade requires an understanding of the pre-existing gender dimensions of market dynamics and the broader social, cultural and political environment. It also requires an understanding of the nature, pace and scale of changes ushered in by trade liberalisation, and the extent to which they are mediated by national government policies and legislation. We need to consider the effects of trade reforms on income-generating work and on the invisible and unpaid work that is traditionally assigned to women. Because society places a low value on unpaid work and caring for others, such work is a key factor in inequality between the sexes. The challenge is to see how national policies and legislation to mediate the effects of trade reforms can be harnessed to address this inequality. While trade liberalisation may result in improved growth, there is a growing realisation that reducing poverty and inequality requires complementary policies to tackle not only competitiveness, investment climate and infrastructural challenges, but also social inequalities that may be perpetuated or exacerbated by trade reforms. This paper examines why and how trade liberalisation affects men and women in different ways, drawing on recent evidence from Latin America and the Caribbean, where governments have signed much-debated Free Trade Agreements. While these recognise the need to address gender inequalities if women are to benefit from trade liberalisation, they have not been accompanied by the necessary social policy measures. The paper ends by examining policy implications, looking at how traderelated policies can enhance women’s and men’s capabilities to take advantage of new market opportunities, given the patterning and dynamics of poverty in the region.