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UN Research Institute for Social Development

 

United Nations Human Rights Council 17

Panel on Women-Poverty-Crises-Trade-Human Rights

 

3 June 2011, 14:00-16:00

Room 27, Palais des Nations

 

Statement by Shahra Razavi, Research Coordinator, UNRISD

 

 

The proximate causes of the 2007/8 crisis may have been located in the global financial markets, but the ripple effects spread very quickly to the real economy, not only in the global North but also in the global South (given the extent of global economic integration).  The crisis affected the “visible” parts of the economy—production, trade, economic growth, jobs, people’s livelihoods and earnings.  But it also affected the “unpaid/invisible” economy, the social processes and human relations and the unpaid care work which (re)produces and maintains people and communities on a daily and generational basis. This invisible part of the economy is the foundation upon which all production and exchange rests. 

 

As Diane Elson has argued, government response was “swift and comprehensive”[1][1] when it came to safeguarding the banks and capitalist firms, but “slow and partial” in response to social deficits and human needs/rights.  Some have even argued that the “giant bailout of Wall Street was sold to the American people as a way to save Main Street and jobs”.[2][2] But it has done neither; and there is a return to the bonus bonanzas of pre-crisis years.  Speculation by finance capital has once again pushed commodity prices to unprecedented levels, with grave implications for people’s food security not only in urban areas, but also in many rural communities where poor farmers are net-food buyers.

 

The 2007/8 crisis, following similar episodes in Asia and Latin America, has reinforced the argument that open economies need institutionalized systems of social protection if they are to reap the benefits of openness without succumbing to its socially disruptive effects.  For a while the aphorism that “every crisis is an opportunity” did seem to hold some truth. 

 

Three years on, however, it is legitimate to ask if the world is not re-entering a new phase of fiscal retrenchment given the austerity measures being taken in many developed countries, especially in Europe.  The gender implications of the budget cuts in the UK have been analysed by the UK Women’s Budget Group (2010).[3][3] Their rigorous analysis is sobering and it demonstrates that fiscal retrenchment not only has a strong class dimension to it, but it also has a clear gender content. Three findings stand out:

 

 

 

These findings underline once again that women stand at the cross-roads of the “paid” and the “unpaid” care economy, over-represented within the public care sector (as teachers, nurses, and carers) and disproportionately implicated in the unpaid work that goes into reproducing individuals, families and households on a daily and generational basis.

 

It is perhaps in recognition of their dual role that women, as mothers and carers, have been seen as legitimate recipients of child- and family-centred conditional cash transfers that are spreading in many developing countries.  Donors see these cash transfers as the life line that is going to hold families together and ensure that children are sent to school and fed properly.

 

As the Independent Expert on the question of human rights and extreme poverty has also recognized,[4][4] cash transfer programmes, if well-designed and properly implemented, can provide women and other recipients with a regular and reliable source of additional income to assist them in caring for their families. However, conditionalities that impose additional work requirements on recipients (very often time-pressed mothers), or those that require proof of marriage or proof of child’s regular school attendance—can only deter people from making their claim, while enhancing the discretionary power of welfare administrators. Removing such conditionalities is an important short-term objective. In the medium to longer-term increasing the size of such benefits, extending the age bracket, and removing the income test can be additional steps towards creating a more universal child/family allowance system that can assist families, especially women, with some of the material costs of raising children.

 

However, it is also important to recognize the limitation of any cash transfer programme. Cash transfers and other social assistance instruments, such as public employment programmes like India’s National Rural Employment Guarantee Programme (NREGP), need to be seen as part of a much larger social policy effort. 

 

A comprehensive social policy programme must include quality public health and education services and accessible care services; affordable housing; contributory social insurance programmes that are redistributive and effective; affordable food items; and access to amenities such as safe drinking water, public transport, electricity and domestic technologies to reduce the burden of domestic work. 

 

Putting together such a comprehensive policy requires a significant fiscal effort --- and hence, effective tax systems that can raise the necessary revenues. It also requires economic strategies that create productive employment opportunities offering decent wages and safe working conditions.

 

This requires structural changes that are not on current post-crisis agendas.  Without such bold moves, there are real dangers of political backlash and instability. 

 

There are already many signs of social discontent, declining levels of trust in governments, and unrest in response to rising food prices and labour retrenchment.[5][5]  If the latter cannot be controlled then a skewed recovery and development scenario may need the backing of repressive states.[6][6]

 

While deep-seated and locally specific factors underpin the recent uprisings in Tunisia, Egypt, Yemen and other countries in the region, the high rates of unemployment, precarious livelihoods and repressive state practices are common sources of discontent that feed popular unrest. In contexts where there is deep social insecurity, limited resilience of social institutions to cushion the effects of crises on people, and weak and fragile democracies, the possibility of authoritarian resurgence cannot be ruled out.

 

However, even in countries with consolidated democracies, as austerity measures are taken to cut benefits, diminish health and education services, and make jobs more temporary, crisis is becoming a way of life with unsavoury political implications.

 

From France to Germany, from Austria to Holland, even mainstream political parties, and not just the far Right fringe parties, are finding it acceptable to stress the ‘threat from immigration’, thereby giving credibility to populist racism.[7][7] Contradictions and crises in the advanced capitalist economies, especially the United States, have also prompted a shift from the politics of hegemony to the politics of coercion as a form of rule; in the context of this shift, carceral relations centred on prisons and personal debt have become increasingly important, pervading the lives of marginalized social groups, including increasing numbers of poor black and Hispanic women.[8][8]

 

What is clear is that minimalist top-down reform that tinkers with financialization and social protection looks increasingly out of kilter with the scale of the social dislocation and insecurity that persists. Much bolder initiatives are needed to move away from existing policy mind-sets and to start re-thinking policies from the point of view of human needs and human rights—including women’s rights—as opposed to the narrow interests of a small élite of financiers who have amassed huge wealth over the past thirty years.





[1][1] Diane Elson (forthcoming) ‘Social reproduction in the global crisis: Rapid recovery or long-lasting depletion?’, In Peter Utting, Shahra Razavi and Rebecca Buchholz (eds.), The Global Crisis and Transformative Social Change, UNRISD/Palgrave, Basingstoke.

[2][2] Robert Reich (2010) ‘Reading America’s tea leaves’, The American Interest, Vol.VI, No.2, pp. 6-17.

[3][3] Women's Budget Group (WGB) (2010) The Impact on Women of the Coalition Spending Review 2010.  Women's Budget Group, London.

[4][4] United Nations General Assembly (UNGA). 2009. Promotion and Protection of All Human Rights, Civil, Political, Economic, Social and Cultural Rights, Including the Right to Development. Report of the Independent Expert on the question of human rights and extreme poverty, Magdalena Sepúlveda Carmona. Human Rights Council, Eleventh session, Agenda item 3, A/HRC/11/9, 27 March. www2.ohchr.org/english/bodies/hrcouncil/docs/11session/A.HRC.11.9_en.pdf, accessed on 5 August 2010.

[5][5] International Labour Organization (2009) The World of Work Report 2009, ILO, Geneva.

[6][6] Peter Utting, Shahra Razavi and Rebecca Buchholz, ‘Neoliberalism’s crisis of legitimacy’, in Peter Utting, Shahra Razavi and Rebecca Buchholz (eds.), The Global Crisis and Transformative Social Change, UNRISD/Palgrave, Basingstoke.

[7][7] Zizek, S. (2010) ‘Liberal multiculturalism masks an old barbarism with a human face’, The Guardian, 3 October.

[8][8] The United States currently leads the world in terms of incarceration rates, with 1 per cent of adult population now in prison or jail; if those on probation and parole are added, 3.2 per cent of the adult population is under some form of criminal justice supervision. While incarceration in the United States has always had a class and racial dimension, during the neoliberal era these inequalities have increased considerably. Overall more than two-thirds of those in prison are black or Latino. See Genevieve Le Baron and Adrienne Roberts (2010) ‘Toward a feminist political economy of capitalism and carcerality’, Signs, 36(1), 19–44.