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"In Search of Economic Alternatives: Voices from India" is a new publication from WIDE. It is an edited collection of short essays by Indian authors on economic structures, relations and principles that are needed to serve the goals of sustainable economic and human development, poverty eradication, social justice, and empowerment of the most vulnerable segments of society: women, Taken together, the 12 essays form an agenda of alternative thinking, linking gender with other social, livelihood, and democratic concerns.

Download the electronic version of the paper from here

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"We women need to be the torchlight for changing the ways in which we try to build gender equality, implement CEDAW and remove poverty. We have to change the macro-economic sky through our advocacy and knowledge." 

Engaging with Economic Growth: Learning from the Ground

by Devaki Jain*

The global crisis sent the economies of the world, both rich and less so, into a spin – destroying many spaces but also jolting ideas. It started waves of rethinking[1][1] on the ways that economies should trigger growth – it was like a wake-up call. It is another matter that despite this deep distress, and the burst of proposals for an alternative program, the “power” economists and economic agencies have not transformed, and are only engaging with more of the same as a response to healing the damage already done.

The Gross Domestic Product (GDP) growth rate has been one of the most accepted measures of progress, and with the embedding of globalization – not just the run of private capital but also the connectivity that the internet has provided – trade, both in goods and in services has become the most favoured engine of growth and indicators of economic success. Economic arguments drawn from free trade theory have capital hunting for the cheapest productive capacities. However, the so-called free trade agreements are not free; trade is tethered in highly controlled systems to benefit some at the cost of others, and so we should not use the words ‘free trade’ although the globalization model is based on the free trade theory, which argues that it maximizes the efficient use of factors of production at the lowest cost. So, global growth via foreign trade is or was the mantra.

 

In a world that is extremely unequal in economic conditions and peoples, the global factory as it is being called has shifted to the poorer in the developing countries. And amongst the poorer of these countries, women are the “preferred” labour as they are willing to accept insecure and hard work due to their drive for the survival of their households. The export of goods and services from Asia have been a source of income for women, whether as self-employed home-based workers or as workers in Special Economic Zones (SEZ). However, I will never forget a presentation made by a Thai trade union leader a few years ago, who showed how Nike (the sportswear and sports equipment supplier) marched from one country to another shifting its production units, driving down wages and negotiations for the protection of workers. Every single country fell into line, flea eating flea in a race to the bottom.

The recent downturn in the global economy has taught us that it this employment segment painfully vulnerable at the lower end. Even the last person – for e.g. the woman waste-picker – has been affected, as shown by many studies, the most striking of which was done by Women in Informal Employment Globalizing and Organizing (WIEGO) in collaboration with Self-Employed Women’s Association (SEWA). Due to the global crisis, the demand from China, the largest importer of the world’s waste, has gone down, resulting in a drop of the selling price of waste material by 40 to 80 percent in India and in a severe decrease of earnings of women waste pickers.

The crisis did however establish one structure that was in the melting-pot[2][2] but had not really boiled, and that is South-South configurations in economic bonding. The crisis hit the financial markets and the employment sheds of the Northern countries harder than it did many of the continents of the South – one could ironically say that the less developed the banking and stock market systems, the better the survival of the economy, as was proved by Latin America and some countries of Africa. Countries like China and India, while quite developed in markets of capital and tradables, could also maintain some growth of GDP and quick revival while the European countries were lagging behind.

This difference further strengthened the South continents to attempt new configurations of economic clubs, trading preferences so that they could both release themselves from the demand pull for products by the North, seeing how volatile that was, Apart from shifting the direction of trade, i.e., exports from the formerly rich countries, there is a desire to find ways of trading which emancipate the region from the dependence, collectively reorder the power relationships, and build their own strength using their own large population demand spaces like in China. Regionalism then is emerging as a bulwark against globalism. And hence the extraordinary difference in the targeting of response, due to the particular relative autonomy of the region from the global run.

 

But as Asia and Latin America strengthen themselves against North-driven tsunamis on their economies, are they thinking of the women of the region? Or to put it differently, are the women of the region engaged in these negotiations? Not as far as I can see. Therefore, the first task is to engage with those configurations. What do the organizations of women workers such as SEWA and others in the mode of advocacy for women as workers have to say about the new arrangements and aspirations? We must look at the anatomy of those arrangements and gender them from the top i.e., the managers of the plan, right down to the implementation, including the flows of finance and the design of laws – i.e., gendering the macro-economic sky. Most important is how the capital markets roam, what they bite into, what arrangements should be made for the survival of food farming, etc. – i.e. the macro-economic decisions and initiatives.

 

The time has come for us to shift our work and our advocacy from looking for gender justice and explaining women’s location (especially exploitation in the success story of trade), for e.g. as experienced by India and China today, -- and asking for special considerations within that framework -- towards arguing for another kind of view of economic progress and prosperity; for a voice to direct the economies usually called the Keynesian approach. This suggests that demand can be and should be generated through a wide spread employment base, shifting from capital-led growth to wage-led growth, and making decent work -- employment with a decent wage and security of wage – the engine of growth. It is my view that we need to shift our language -- from gender equality and other terminologies and objectives such as Millennium Development Goals – towards ensuring securities: food, livelihood and water security for women. This should be the responsibility of the State. States are now all geared to ensure security against terror attacks, but it is these “peace goods” that women want and should have, if there is seriousness in the States’ commitments to ensure “inclusive growth.”

Hence, it is crucial at this time for feminists and the women’s movement to consolidate their knowledge on the how to of economic growth, identify new triggers of economic growth which enable more equitable outcomes, as well as to engage with these new arrangements to ensure that women as labour get a better deal through laws and other structural arrangements.

There is a need for laws across the region to protect the workers as a community: for e.g., a regional minimum wage and a regional approach to the capital that comes seeking. When SADEC (Southern African Development Community) was looking for a way forward to get the region to be a region, I had suggested that they draw up a plan with optimization of employment as the goal of the model -- a regional employment plan which investors and governments could follow such that there was a consolidation of power as well as cooperation, to avoid the situation in the Nike example cited.

 

On another occasion, I had suggested that the Non-Aligned Movement (NAM) set up its own CEDAW type of legislation especially to protect South-South women migrants who often face grave bodily harm apart from other forms of distress. I had pointed out that the major portion of foreign exchange in countries like Sri Lanka and the Philippines comes from women who emigrate as workers and yet their lives were not seen as precious by the States.

 

That resonates what Mahatma Gandhi had proposed as the path for India’s second freedom, freedom from poverty for its people. His theory could be called the ‘bubbling-up theory of growth’ which counters the old ‘trickling-down theory of growth.’ The bubbling-up theory argues that the process of removal of poverty can itself be an engine of growth, that the incomes and capabilities of those who are currently poor have the potential to generate demand which in turn will engine production, but of goods that are immediately needed by the poor which are currently peripheral in production. The oiling, then, of this engine will bubble up and fire the economy, in a much more broad-based manner. Unlike export led growth, it will not skew production and trade into the elite trap, which is accentuating disparities and creating discontent.

 

This can also be coincided with regionalism suggesting that the goals of the regional trade compact would be to maximize employment in the region, so models can be built where the maximization would be employment, rather than merely foreign exchange.

 

Feminists have come up with many well-reasoned policy ideas. For example, in India a Committee of Feminist Economists (CFE) who were consulted by the National Planning Commission during the preparation of the Eleventh Five-Year Plan (2007-2012) argued that women were India’s growth agents: they were a strong presence in the economic sectors like agriculture, infrastructure and informal productive sectors and much of the GDP came from their labour but was not recognized in the public domain of the State. The CFE presentation to the National Planning Commission had information on women’s contribution to savings and revenue despite being increasingly excluded from formal finance sources: 60% of total savings is from the informal sector with least access to financial savings.

 

One of the changes that was a result of the CFE’s influence was that the chapter conventionally titled ‘Women and Development’ was renamed ‘Women’s Agency and Child Rights’, enabling the shift from a ‘social development’ perspective to one of agency and rights. They were able to influence the sectoral programs, such as agriculture, infrastructure, health, employment, etc.. I am glad to report that their intervention and inside-outside partnership, i.e. the presence of a feminist in the Planning Commission, Dr. Syeda Hameed, made a striking difference to the design of the 11th Five-Year Plan.

 

Another recent initiative to which I am a party is run by a group called the Casablanca Dreamers.[3][3] It is comprised of feminist scholars, authors and activists who come from very varied regions, specialisations, generations and ideological positions with tremendous experience and knowledge that made them experts in various fields of development and political and social activism – all coming together to create unique and valuable dialogue. The common thread was a deep commitment to issues of social justice and equality, for women, for the poor, for other excluded, oppressed and disenfranchised groups and communities.

 

This international group is attempting to gender the macro-economic sky through shifting the basis of economic reasoning and measuring progress drawn from ideas which have emerged from women’s scholarship and activism. Assessing the Development Paradigm through Women’s Knowledge, their goal is to go beyond fragmented assessment in relation to particular goals and targets and to reflect more deeply on the kinds of societies that are being created and the extent to which they can achieve social and economic justice: calling for an interrogation and rebuilding of concepts, measures and methods for achieving progress.

What I am trying to argue for is that we need to move along now in our advocacy ways from gendering, which was most useful in the previous decades up to around 2000, to reconstructing macro-economic policies including regional and global economic arrangements, as a lobby not only for women but for economic justice in an economic democracy. It is good news for feminists that the Nobel Prize for Economics has been shared with Elinor Ostrom, who has challenged one of the very basic axioms put forth by so-called mainstream economists and said that common property management by communities is more efficient than by the State and the market.

We need to be the torchlight for changing the ways in which we try to build gender equality, implement CEDAW and remove poverty. We have to change the macro-economic sky through our advocacy and knowledge.







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* Assisted by Divya Alexander

[2][2]        Jain, Devaki. “The Problematique of South-South” in Isis International, May 2007

[3][3] http://www.casablanca-dream.net