Gender, Neoliberalism and the African State

By Zo Randriamaro

 

(Paper prepared for the  ILRIG Globalisation School 2002, Cape Town, South Africa 30 September- 4 October 2002)

I come to this Globalisation School with a deep sense of urgency, because the war against terrorism and the developments around the NEPAD make it very urgent for us to reflect on the implications of the shift to a neoliberal State for women and gender relations in Africa.

 

I also come with a sense of sadness, because the very fact that we have to discuss about this today means that despite all the international conferences and resolutions and all our struggles, we are facing even more threats on the livelihoods of the most resourceless among poor African peoples, that is women. We are facing an economic fundamentalism that directly affects the fundamental human rights of African citizens, especially women.

 

I am grateful to ILRIG for the opportunity to share with you the evidence from studies in different African countries which shows that women are disproportionately affected by the move towards a neoliberal type of State whose role is centred on advancing the neoliberal economic agenda.

 

Gender and the Neoliberal Economic Agenda

 

The economic fundamentalism that has been further legitimised by the events of 11 September and the war against terrorism has its own catechism.  This catechism is embodied in the neoliberal policy regime which is described by its proponents as an agenda of liberalisation and stabilisation. 

 

At the centre of this agenda is the strengthening of private property and profit-driven markets, together with what feminists call the ‘marketisation of governance’ (DAWN, 2000).  Under such marketised governance, the main responsibility of the State is not to ensure the protection and the realisation of the economic and social rights of its citizens, but to establish an enabling environment for free trade and foreign investment as prescribed by the international financial institutions (IFIs) and imposed through the WTO regime.

 

In most African countries, stabilisation measures to reduce budget deficits have resulted in a decline in shares of expenditures in social services such as health and education in national budgets since the 80s, as well as a decline in real expenditure per person.  Thus, millions of poor people have been denied access to social services, while the costs of providing care have been transferred from the State to communities and households.  It has been well established that women have paid for these costs, as part of their reproductive roles. 

 

Typically, macroeconomic stabilization policies also include fiscal austerity measures which have led to tighter credit conditions with higher interest rates, and have worked to make women’s access to formal credit even more difficult and to reinforce the exclusion of poor women (GERA Programme, 2000).

 

African States have embarked on fiscal policy reforms to ensure fiscal discipline, as part of an enabling environment for investment.  There is a widespread tendency to implement regressive taxation measures, with an overwhelming focus on consumption taxes (such as the VAT), while taxation on capital is considerably reduced.  The poor and the women among them are negatively affected by this focus on consumption taxes because they are consumers, not capital owners. 

 

As a result, “the tax and public expenditure economy is being re-subordinated to the profit-seeking commercial economy in conditions in which families and communities are less and less able to absorb the shocks” (Keller-Herzog, 1996).  This is a basis of major concern from a gender perspective, as it implies that women who already act as the major shock-absorbers under restrictive fiscal policies will be overburdened.  Women’s so-called “reproduction tax” - the burden of providing unpaid care to sustain families and communities – is being increased, whereas big corporations are subsidised by governments through tax breaks and other incentives.   

 

Gender and Privatisation

 

Privatisation is another key element of the neoliberal catechism.  It is a policy as well as an organising principle of the neoliberal State, in the sense that « the main way in which people are expected to obtain the resources to support human life is via private production for sale and the purchase of the goods and services they need.» (Elson 2000: 7) :

 

Privatisation per se raises a number of issues from both a development and gender perspective.  First, there is no reason to believe that the profit-motivated private sector will act in the interests of the poor and the public at large.  This raises the broader issue of the so-called global public goods, as goods – or services – whose benefits accrue to all sectors of society and should therefore be equitably available to all people with equal opportunity.  As such, the provision of these global public goods by the State is crucial. The issue of global public goods has important gender dimensions and it is a basis of major concern that it has disappeared from the international development agenda during the run-up to the World Summit on Sustainable Development.

 

Secondly, many privatization schemes of public utilities in Africa have resulted in failures in terms of performance and most importantly, in the disconnection of the poor, including a majority of women, from basic utilities.  Water privatisation is a case in point in many countries and has raised a growing popular protest against the denial of the right to meet their basic needs to those who do not have the required purchasing power, i.e. the poor.  Women who are primarily responsible for the provision of water to their families as part of their reproductive roles are particularly affected. 

 

The drive of the neoliberal State towards the provision of social services by the private sector clearly shows a “commodification bias” (Elson, 2001 : 4) that raises grave concerns from a human rights and gender perspective.  This “commodification bias” puts the rights of the poor and vulnerable groups to meet their basic needs at the mercy of financial intermediaries.  It fuels the growth of financial corporations and the «corporate welfare State” (Elson, 2001: 11) at the expense of the rights of citizens, especially women. 

 

Indeed, past experience from liberalization and privatization policies in Africa and other countries shows that in this context, not only is the hidden reproduction tax extracted from women increasing, but also “particularly in poor and middle income families, women are called upon to spend more time and effort in providing non-market substitutes for marketed goods that their families can no longer afford to buy, and providing substitutes for public services that are no longer available” (Elson 2001:3). 

 

In addition, “commodification/privatization bias fuels the growth of financial intermediaries; and the growth of financial intermediaries in search of a high real rate of interest fuels deflationary bias in macroeconomic policy, and leads to even more pressure to privatize” (Elson, 2001 : 11).   

 

From a gender perspective, it is also important to identify who is part of ‘the private sector’ that is targeted by the neoliberal State.  In this regard, it should be noted that the prevailing definition of the private sector exclude the informal sector where the major part of women’s economic activity is located.  In addition, measures to promote the development of the private sector in Africa included mainly policies directed at large-scale industries and ignored the small-scale production in which a majority of women is engaged.  As an example, in Uganda, a GERA Programme study has found that the definition used by corporations and the World Bank excludes small and micro enterprises, most of which are run by women (GERA Programme, 2000).   

 

Gender and Trade Liberalisation

 

Since the last WTO Conference in Doha, we have witnessed a process of re-conceptualisation of development which has been precipitated and strengthened by the events of 11 September and the establishment of the international coalition against terrorism.  Trade and investment liberalization has come to mean development in the mainstream international discourse, and is also a key element of the catechism of the neoliberal State.  

 

The studies conducted by the GERA Programme in 8 African countries clearly show that all this takes place in a context where the existing trade and investment policies and arrangements are already undermining the livelihoods and the rights of women and other vulnerable groups. 

 

Trade liberalisation, Labour and Women’s Employment : The Case of South Africa

 

The studies on the export processing zones (EPZs) in Madagascar and the footwear industry in South Africa (GERA Programme, forthcoming) show the same trend towards the feminisation of the labour force, together with an increasing flexibilisation of work at the workplace through the use of lean production and other legal devices by employers.  Both studies have not found a reduction in the gender gap in terms of wages, as women’s wages remain lower than those of men.  In particular, the South Africa study shows an important erosion in the social wage and women’s rights as workers, as well as the negative impact on their reproductive roles.  Moreover, the study points to the fact  that workers in the formal footwear industry suffer from the same level of job insecurity and intensive working conditions as workers in the informal sector. 

 

The South Africa study also points to the fact that the pressure on firms to compete in the hostile economic environment created by globalisation has been a determining factor in the deregulation of the labour market and the feminisation of the labour force in the footwear industry.  In this regard, the case of South Africa provides a typical example of a low-wage growth strategy that relies on women’s labour.  In this strategy, gender inequalities in wages and working conditions contribute positively to growth, which means that export successes and growth come at the expense of gender equality and women’s rights.  Feminist economists draw attention to the fact that using gender inequality as an instrument of international competition may result in long-term adverse effects on the terms of trade of the concerned countries (Cagatay 2001).

 

The study also found a growing casualisation and informalisation of work in the footwear sector.  Together with the changes in production relations, namely the growing number of home-based and temporary workers – the majority of which are women – and the various forms of increased pressure on workers within the workplace, the informalisation of work raises critical issues about the sustainability of women’s livelihoods and their rights as workers. 

 

This is in a context where trade liberalisation has reduced import and export taxes, and pressure from mobile transnational capital has reduced taxation on corporate and capital gains and income, thereby reducing the fiscal capacity of the State and its ability to provide for effective safety nets or other forms of social protection.  In Madagascar as well as in South Africa, the GERA studies confirm that trade liberalisation contributes to prevent governments from devoting sufficient resources to the social protection of women workers whose cheap labour constitute their « comparative advantage ».  Thus, they also add to the evidence from other countries of the negative impact of liberalised taxation policies on social protection for women and vulnerable groups.  

 

In addition, the South Africa study found that as a result of economic restructuring in the formal footwear sector, the informal sector has also undergone significant changes. Among these is the arrival of an important number of white women in the informal sector that used to be the attribute of coloured people in the province of Kwazulu-Natal.  This re-composition of the informal sector has exacerbated the vulnerabilities of women workers as a result of intersecting disadvantages based on gender, class and race.  The study also highlights the fact that in the case of South Africa, the hotly debated competition between women brought about by globalisation and trade liberalisation is increasingly between women from the South, rather than between women from the North and the South.    

 

All the GERA studies show the negative impact of trade and investment liberalisation on women’s economic and social rights, especially the erosion of their livelihoods and socio-economic status.  In particular, women’s subordination and free labour has been abused by employers and governments to pursue their strategies in the globalised economy.  Women are the most affected by the rigidities caused by the neoliberal orthodoxy in the global economy. 

 

This process appears to be greatly faciltated by the role played by States.  A cross-cutting issue in all the GERA studies is that in the context of trade and investment liberalisation, the patriarchal nature of the State is compounded by an increasing tendency to prioritise the interests of foreign investors and donors over the rights of citizens, especially women, as evidenced by current privatisation policies and the commodification bias in economic policies.

 

The GERA research highlights another cross-cutting issue with regards to the role of the State in relation to the gender dimensions of trade and investment policy in Africa, which is the multiple disempowerment of African  women in the context of international trading and financial arrangements :

 

 

 

Gender, NEPAD and the Neoliberal Agenda

 

As an African women and a gender activist, I am therefore deeply concerned that trade and investement liberalisation is the centerpiece of initiatives such as the NEPAD which has the ambition of setting the agenda for Africa’s development for the millennium, and promoting the role of women in all activities.  Because the promoters of the NEPAD are strong believers in the neoliberal catechism and merely reproduce the neoliberal Washington Consensus under an African dressing, there is very little doubt that the implementation of the NEPAD will further undermine gender equality and women’s rights.  There is also reason to be concerned that poor women will be the most adversely affected by the NEPAD neoliberal policies.

 

The GERA research in Africa and other studies at the global level demonstrate that « neoliberal economic policies have transformed the public policy environment in ways that are detrimental to women » (Elson, 2000 :15). They have dramatically increased the need for social protection against market risks, and at the same time reduced the capacity of States to devote the necessary resources for such social protection system.

 

However, it must be recognised that poor women have been discriminated against even within the constraints of existing resources, and that these constraints « have been intensified by neoliberal policies, in the name of free enterprise, efficiency and growth.» (Elson, 2000 :16) Just like gender relations, « the constraints on the raising and spending of public money …(…)…are socially constructed constraints» (Elson, 2000 :16). 

 

The raising and spending of public resources is not a purely economic and technical exercise, it is also a political process that involves a choice about who will benefit and who will be excluded.  It is very sad indeed that in the eve of the new millennium, we still have to remind ourselves that women form the majority of those who are excluded.  It is sad that African leaders plan to implement the neoliberal policies that have deprived this majority of their full dignity and rights. 

 

What can be done ?

 

In defining strategies to engage with the neoliberal State, it is critical to ensure analytical clarity about the issues at stake.  A historical perspective is required in order to expose the flaws in the neoliberal discourse which presents globalisation as an a-historical and benign process.  We must make the point that globalisation builds on a history of slavery, racism, colonialism, exploitation and discrimination, especially against women.  Therefore, we must use a gendered class analysis to identify the issues around which we are going to strategise.

 

The fight in which we have to engage together is primarily about ideas.  It is about neoliberal ideas that deprive us of our humanity and reduce us to consumers in the « free » global market.  It is about ideas that treat our labour as an input, on the same footing as machinery or raw materials.  It is about ideas that consider women’s labour as free and infinitely elastic, so that it can be exploited forever to sustain society in the global village . 

 

In this fight, it will be critically important to build strategic alliances between workers and African intellectuals.  These intellectuals have a specific responsibility in providing the knowledge base for social transformation.  African research must have policy relevance and serve the interests of the dispossessed and oppressed under globalisation.  Research should contribute to progressive and equitable social transformation.

 

We have to forget about collaboration with the neoliberal system.  History tells us that this has never worked.  The trade unions in different countries have experienced more disempowerment in this process, than progress towards the full realisation of workers’ rights. The market-based growth that the neoliberal State wants to promote is basically biased against women, because much of their work is non-market work.  Therefore it is critically important for women workers and organisations to engage with the neoliberal State and to challenge the hold of patriarchy that prevents them to have access to the male-dominated public sphere where the power and resources are mainly located.  We need to unite with other civil society organisations and progressive forces in order to ensure broad-based support for a different vision of society.  We need to establish a new social contract by which economic policy making and processes will be democratised, and the State held accountable for its economic policies.

 

We have to re-think our way of organising and go beyond our differences and national borders to build strategic alliances around our common concerns.  More than ever, solidarity is crucial.  It is crucial in itself as a value that we must uphold in order to confront the ideology of profit.  It is crucial as a strategy if we want to capture and influence the State. 

 

 


REFERENCES

 

Elson (D.), Gender Justice, Human Rights and Neo-liberal Economic Policies, UNRISD 2000.

 

Elson (D.), International Financial Architecture : A View from the Kitchen, Paper for the International Studies Association Annual Conference, Chicago, February 2001.

 

Cagatay (N.), Trade, Gender and Poverty, Background Paper, UNDP, New York, October 2001.

 

GERA Programme, Economic Reforms and Employment in Madagascar : A Gender Analysis of the Case of Export Processing Zones, forthcoming.

 

GERA Programme, Working Women in Leather and Footwear Industries in South Africa: Finding Responses to the Threats of Globalisation, forthcoming.

 

Keller-Herzog (A.), Globalisation and Gender.  Development Perspectives and Interventions, Discussion Paper, CIDA 1996.