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Via Yumiko Yamamoto - Policy Specialist, Inclusive Growth
Regional Bureau for Asia and the Pacific - UNDP

 

Feminist Economists Discuss Crises, Austerity & Gender Equality

 

In the week that the EU Troika were asking Greece to accept austerity measures and the Third Global Conference on Financing for Development in Addis Ababa (FfD3) got closed with an outcome document, which was expected to provide instruments for financing the post-2015 development agenda, feminist economists from across the globe gathered in Berlin, Germany, and discussed the gender equality in challenging times.

 

As the panelists at the Opening Plenary of the 24th Annual Conference (16-18 July) of the International Association for Feminist Economics discussed the ongoing European crisis, those from Asia, Africa and Latin America wondered how the European situation described is familiar to them. Indeed, one of the speakers mentioned that austerity measures proposed to Greece have been known as ’structural adjustments’ and that Europe can learn from experiences of the developing South. 

 

Professor Joan Tronto of University of Minnesota, in her keynote speech entitled Migrant Care Work & the Global Political Economy, pointed out that drudgery work and unpaid care work, performed mainly by women, working class and migrants, are not new.

 

“They have been a part of modernity since its colonial beginning.” The poor/South providing care to the rich/North resembles a master and servant relationship; inequalities created in the neoliberal society is a colonial legacy, she explained, answering that decolonization is needed. 

 

Tronto, speaking from her 2013 book Caring Democracy, at the Roundtable organized by Friedrich Ebert Stiftung at its Berlin office on 15 July 2015, called for a new thinking of freedom and equality from the standpoint of making caring more just.  In a corporate world for example, work-life balance policy puts production and economic life at the centre of our human lives. Tronto says it should be the other way around.

 

If we are able to commit ourselves caring for us and others by “accepting and rethinking our caring responsibilities and providing sufficient resources for care”, then we will be able to “enhance levels of trust, reduce levels of inequality, and provide real freedom for all (p. 182).” This state of freedom and the nature of needs and justice has been discussed as ‘basic human capabilities’ (p. 162) by Amartya Sen and others.

 

Human development is a process of enlarging people’s freedoms to live long and healthy life, to be educated and to enjoy a decent standard of living. In both Tronto’s framework as well as human development framework, people are both beneficiaries and providers of such a just society. 

  

Then, the question was how we transform our current society to the just society? Policy makers often say the cost of providing public services such as education, health care, child care or elderly care is too expensive. However, the “cost of not investing in care has not been evaluated,” said Ms. Soledad Salvador of Centro Interdisciplinario de Estudios sobre el Desarrollo (Interdisciplinary Center for Development Studies) in Uruguay at the Roundtable.

 

Feminist economists, together with other macroeconomists, have been supporting innovative tax policy such as Tobin tax and good global governance for combating tax evasion and tax avoidance so as to finance the necessary social services and tackle debt crisis. Meanwhile, many countries are locked in a ‘race to the bottom’ by reducing corporate tax rates and other means of progressive taxation to attract investment and global financial capital.

 

On the other hand, some countries were asked to undertake austerity measures when they need to have economic stimulus. With austerity measures, social sectors that are responsible for health, education, pension etc. often face public spending cut first, resulting in an increase of burden of the poor and women.

 

This year’s Feminist Economics conference attracted many European scholars and development practitioners partly because it was held in a European city. What they described about European crises—debt crisis, financial crisis, migration crisis, care crisis and democracy crisis etc. are not foreign to Asia. 

 

Recently some Asian currencies have been depreciated to the level of the 1998 financial crisis. While remittance has been seen as a significant contribution to poverty reduction, negative social impacts have been also recognized. Illegal migration and trafficking remain an issue. Youth unemployment and underemployment persisted even among those with higher education despite a rapid growth.

 

We shall not treat the sustainable development goals as aspirations. Crises are not someone else’s problem.

 

It is time to care for one another.