Report No. 70808-LA Lao PDR Mapping the gender dimensions of trade A preliminary exposition Poverty Reduction and Economic Management Sector Department East Asia and Pacific Region July 2012 CURRENCY EQUIVALENTS Currency unit = Lao Kip US$ 1 = 8,000 Kip ABBREVIATIONS AND ACRONYMS AFTA ASEAN Free Trade Area ASEAN Association of Southeast Asian Nations EBA Everything But Arms EMRIP Enhancing Milled Rice Production Project EU European Union FAO Food and Agriculture Organization GDG Gender Development Group GDP Gross Domestic Product GRB Gender Responsive Budgeting GRID Gender Resource Information and Development Centre ICT Information Communications Technology IFAD International Fund for Agricultural Development ILO International Labor Organization INGO International Non-Governmental Organization ITC International Trade Centre LDC Least Developed Country LECS Lao Expenditure and Consumption Survey LNCCI Lao National Chamber of Commerce and Industry LNTA Lao National Tourism Administration LWU Lao Women’s Union MoIC Ministry of Industry and Commerce NCAW National Committee for the Advancement of Women NSEDP National Socio-Economic Development Plan NTFP Non-Timber Forest Products P2P Power to the Poor RCA Revealed Comparative Advantage SITC Standard International Trade Classification SNA System of National Accounts SNV Netherlands Development Organization UNDP United Nations Development Program UNECA United Nations Economic Commission for Africa UNIDO United Nations Industrial Development Organization UNIFEM United Nations Development Fund for Women (now UN Women) UNRISD United Nations Research Institute for Social Development VAT Value Added Tax WITS World Integrated Trade Solution WTO World Trade Organization Mapping the gender dimensions of trade 3 Acknowledgements This report was written by Marzia Fontana (Institute of Development Studies, Uni- versity of Sussex), with inputs from Stephanie Kuttner (Social and Development Con- sultant), Konesawang Nghardsaysone (Trade Analyst, EASPR) and Mark Miller (Con- sultant), and under the supervision of Richard Record (Trade Specialist, EASPR), task team leader for the World Bank. Overall guidance was provided by Mathew Verghis (Lead Economist, EASPR), Keiko Miwa (Country Manager, EACLF) and Genevieve Boy- reau (Senior Country Economist, EASPR). Research assistance from Vivienne Benson and Stefanie Lovo, and administrative assistance from Sulu Mathews (all Institute of Development Studies) and Phet Udom Mainolath (Program Assistant) is gratefully acknowledged. The report has greatly benefited from the many interactions with stakeholders in Lao PDR, and from two workshops held in Vientiane in November 2010 and May 2011. The active participation in the process by many staff from the Ministry of Industry and Commerce (Foreign Trade Policy Department-National Implementation Unit, Department of Imports and Exports, Department of Trade Promotion and Product Development and Economic Research Institute for Trade), Ministry of Agriculture and Forestry (Gender Division), Lao National Committee for the Advancement of Women, Lao National Chamber of Commerce and Industry, Young Entrepreneur’s Association of Lao PDR, Gender Development Group, CARE International and the SNV Nether- lands Development Organization, by sharing views and feedback helped to shape the final document. We also thank all of those who provided comments on earlier drafts of the study, including Helene Carlsson Rex (Senior Gender Specialist, EASER), Ian Gillson (Senior Trade Economist, PRMTR), Jose Guilherme Reis (Lead Trade Econo- mist, PRMTR), Thomas Farole (Senior Trade Specialist, PRMTR) and William Rex (Lead Social Development Specialist, EASTS). This research was made possible by resources provided through the World Bank’s Gender Action Plan and the Lao PDR Trade Development Facility, a multi donor trust fund financed by Australia, the European Union and the German International Coop- eration Agency, and administered by the World Bank. The findings and interpreta- tions expressed here are those of the authors and do not necessarily reflect the views of the World Bank, its Executive Directors, or the countries they represent. 4 Mapping the gender dimensions of trade Summary Over the past decade Lao PDR has opened up its economy and taken substantial steps towards greater international economic integration as part of efforts to boost export earnings and economic growth. The Lao Government has also made important commitments to gender equality in both its national so- cio-economic development planning and in a number of international agreements. Through mapping the gender dimensions of trade in Lao PDR, this report aims to draw out key inter-linkages between a more open trade policy and gender. A methodological framework to map the gender dimensions of trade is introduced for researchers and then applied to Lao PDR. The analysis equips the policy maker with improved understanding on i) how export expansion in Lao PDR will impact upon men and women differently, and ii) the constraints that men and women face in accessing the benefits of a more open trade policy. This analysis is then used to inform the design of possible complementary policies and investments to alleviate these constraints and mitigate potential adverse impacts of increased trade flows on gender equality. A sector overview of the Lao economy shows that mining and electric power already constitute half of national exports and this is likely to grow further as new power and mining projects come on-line. Direct employment opportunities in these sectors are however limited and also at present predomi- nantly held by men. For growth in the Lao economy to be inclusive, trade expansion in the non-natural resource sectors ought to be a priority because of its greater employment potential. Agriculture remains the main source of employment for both men and women in the economy, while manufacturing and garments in particular are also a significant employer of women with scope for expansion. An assessment of revealed comparative advantage in Lao points to a number of promising sectors with potential for and expansion in exports where women are currently employed in large numbers. Look- ing at the gender dynamics in these sectors suggests that fresh as well as processed vegetables and fruits, tea, and garments are likely to have the highest potential for female employment generation. Al- though the export potential of the rice sector is limited, its role as the predominant crop in the economy means that any export expansion in the sector would also have significant socio-economic benefits for women. There are however a number of constraints to Lao productivity and competitiveness, preventing fur- ther expansion of these sectors. Addressing the constraints that both men and women face through complementary policies and investments will maximize the potential supply response of greater trade openness. The constraints include a wide range of interconnected factors such as limited access to skills, capital and services; weak infrastructure; restricted information on prices and marketing; cumbersome taxes and regulatory procedures; labor retention and lack of raw materials. While both men and women from poor and marginalized backgrounds suffer from deficits in such dimensions, gender interacts with other socio-economic inequalities to exacerbate women’s disadvantage. Mapping the gender dimensions of trade 5 Key binding constraints and possible policy responses are outlined below: In agricultural work, productivity is impacted by inefficient production and processing skills. Extension services can be more relevant than formal education for improving productivity. Measures such as adopting participatory methods, focusing on tasks in which female farm- ers specialize and increasing the number of female agents could be put in place to increase women’s access to these services. Financial inclusion programs could lessen the challenges faced by smallholder farmers in ac- cessing credit which constrains them from adopting more modern farming methods. Access to export markets is hampered by limited market knowledge, barriers through cumber- some regulatory procedures, difficulties in complying to international standards and limited bargaining power in markets. Access to information can be enhanced through the promotion of communication technologies such as mobile phones and building up of ICT infrastructure. Strengthening of producer groups and support for women’s inclusion and influence in farmer associations and trade unions can also assist. The introduction of modern, electronic customs clearance systems could go a long way to overcome some of the difficulties women tend to experience more prominently than men at the border. In the medium term, resources could be invested in making improvements to infrastructure that would assist in ensuring that goods and services of all kinds reach markets in a timely manner and costs are more competitive. In particular improvements to transport networks and physical infrastructure include electricity and water as well as ICT innovations could im- prove competitiveness. Such investments have the additional benefit of reducing the heavy housework burden that limits many women’s involvement in income-generating activities. In manufacturing, the lack of adequate skills and technical knowledge is a key binding con- straint. Curricula in formal education and vocational training might be designed so as to be more relevant to the technical knowledge required in key export sectors such as garments. Government and the private sector could also work together to strengthen linkages between skills training and access to the job market In the garments sector, firms report challenges in the retention of labor. Strengthened public- private partnerships to increase skills and productivity as well as interventions to improve management, working conditions and representation of workers could improve the existing situation. To improve access to raw materials in the handicrafts sector, government and the private sec- tor should work to link the producers of raw materials with weaving firms. 6 Mapping the gender dimensions of trade Notwithstanding policies and investment to address constraints outlined above, in forthcoming years, export growth is likely to be predominantly driven through the natural resources sector and more par- ticularly copper and electricity. These sectors typically employ a small labor force and this is predomi- nantly male. To achieve widespread social and economic gains from expansion of the natural resource sectors, it is important to invest the revenues from the increased resource exploitation in line with the goals set out in the National Socio-Economic Development Plan (NSEDP). Public Financial Management systems need to be supported to that end while prudent fiscal policy will be important to effectively mitigate the potential negative macroeconomic effects of natural resource extraction. In addition, resource based projects can be complemented with interventions to support alternative livelihood flows for those men and women who are disproportionately affected by resulting loss of forests, land and water in communities close to mining and hydropower projects. A number of existing mechanisms have been tried in Lao and internationally in this regard including (i) preferential provision of employment and ancillary services to affected communities; (ii) preferential rates, services and access to affected communities such as preferential utility rates; lower rates to use services offered by the proj- ect (training, medical services, communication networks) and preferential access to common resources such as fisheries and forests; (iii) Community Development Funds (CDFs) set aside by the company for investment directly benefiting affected communities; and (iv) establishing partnership agreements be- tween developers and local communities. Mapping the gender dimensions of trade 7 Contents 1. Introduction 9 2. Analytical framework for trade and gender mapping 11 3. Gender characteristics of the Lao economy: sector overview 17 4. Gender dimensions of export competitiveness 19 4.1. Agriculture 21 4.2. Manufacturing 23 4.3. Services – Tourism 24 5. Gender dimensions of binding constraints 25 5.1. Key constraints in agriculture 25 5.2. Key constraints in manufacturing 30 5.3. Summary 32 6. Gender and resource exports 33 6.1. Employment and Ancillary Services 34 6.2. Preferential Rates, Services and Access 35 6.3. Community development funds 35 6.4. Public-private partnerships 36 7. Conclusions 36 References 39 8 Mapping the gender dimensions of trade 1. Introduction Over the past decade Lao PDR has opened up its economy and taken substantial steps to- Box 1: Women’s representation and gen- der-mainstreaming in Lao PDR institu- wards greater international economic inte- tions gration. The country has reduced import tariffs under the framework agreement for the ASEAN There are well-established systems for wom- en’s representation and gender-mainstream- Free Trade Area (AFTA). It has bilateral trade agree- ing in Lao PDR within the Party, the Gov- ments with the United States and benefits from ernment and the National Assembly. These preferential access to the EU market under the platforms can be effectively used to support the promotion of a sound gender equitable ‘Everything but Arms’(EBA) initiative. Lao PDR is trade agenda. also in the final stages of the review process for accession to the WTO. Vietnam, Thailand and the The Lao Women’s Union (LWU) is a central mass organization of the Lao People’s Revo- People’s Republic of China are increasingly impor- lutionary Party mandated to represent the in- tant trading partners. With an increasingly open terests of women from all ethnic groups. The and liberalized economy the structure of the Lao LWU has extensive networks at all levels of the State’s administrative structure and thus economy is changing rapidly. serves as an important bridge between the Party—the Government—and the People for Recent export performance in Lao has been disseminating information on gender issues and mobilizing women’s participation in de- strong and mostly driven by hydro-electricity velopment and trade integration activities. and minerals, which constituted more than half of all exports in 2010 and are predicted The Gender Development Group (GDG) is one of the most prominent non-governmen- to grow even more in the next few years. In- tal associations active in the area of gender creasing openness to trade will not on its own be and development. It operates as a network of sufficient to ensure that the benefits of growing INGOs and Lao organizations promoting the exchange of experiences on gender related exports are distributed to the poorest and most initiatives in communities within the country. vulnerable in Lao PDR. This high concentration of It also provides training, including support- exports in the natural resource-based sectors also ing the government’s gender mainstreaming efforts, for example by working closely with carries some risks. the Ministry of Agriculture and Forestry on their gender strategy. The Lao Government has made important com- The Lao National Committee for the Ad- mitments to gender equality in both its nation- vancement of Women (NCAW) is chaired by al socio-economic development planning and the Deputy Prime Minister and is responsible a number of international agreements. This for formulating and implementing national policy for the advancement of women as well commitment is evidenced by the well-established as mainstreaming gender in all sectors. Sub- systems for women’s representation and gender- Committees for the Advancement of Women mainstreaming in Lao PDR government structures (Sub-CAW) have been established through- out the country at central and provincial lev- (see Box 1). els, creating a broad network of gender focal points within the public administration. Mapping the gender dimensions of trade 9 Women, though, continue to face a number of Gender inequities may also act as a constraint disadvantages which tend to be reinforced by to trade expansion. Any factor that limits indi- other factors such as ethnicity and location. The viduals (and households, firms and communities) Lao PDR has one of the highest maternal mortality from responding to economic opportunities will rates in the world and the gender gap in schooling constrain the economy’s ability to develop to its remains high, especially among non-Lao speak- full potential. The different roles and responsibili- ing girls and boys from remote rural areas. In the ties of men and women in the economy mean that economy, women tend to be heavily concentrated those constraints may not necessarily be the same in agriculture and few other sectors while men are and as such it is important to consider gender is- more evenly distributed across sectors and occu- sues when seeking to maximise the benefits from pations. The gender division of labor is even more trade. In addition, gender disparities - in access to evident in the distribution of unpaid housework. education, land, finance and other assets - are a significant constraint to the country’s capacity to These twin policy goals of trade-driven eco- benefit from trade expansion. Gender inequal- nomic growth and gender equality cannot be viewed in isolation: trade matters for gender ity may limit the gains from trade, for example and gender matters for trade. As the structure through its negative impact on the process of in- of the Lao economy changes following trade lib- novation in export-oriented manufacturing, or by eralization, so too will the opportunities available undermining supply responses in agriculture. A to women. This process will inevitably continue as gender wage gap and other inequities may also the effects of the current natural resources boom depress women’s productivity acting as a draw- resonate throughout the economy. Similarly, wom- back to growth (UNCTAD 2008). en’s economic empowerment has been strongly affected by regional economic integration, with To better understand the interaction between the growth of labor-intensive manufacturing in- gender and trade policy, this paper presents a dustries and increased cross-border investment gender mapping exercise for export development and trade. It is highly likely that this process will in Lao PDR and in this regard presents simple rec- continue as the trade regime is further liberalized. ommendations on how to undertake this type of Trade always has distributional impacts: the exercise. The paper is split in two parts: the first benefits and the risks of trade are experienced sketches out a simple methodological framework differently by different groups, with some gain- that can be used by researchers to do an initial ing more than others. The effects of trade on a mapping of the inter-relationships between ex- particular individual or group will depend on their port promotion/trade policy and gender. It pres- position and role in the economy. Because gender ents step by step recommendations on how such is a key determinant of men’s and women’s access an analysis could be undertaken, based on the to economic resources, it is also an important de- limited gender disaggregated information that is terminant of trade-related distributional impacts.1 Trade reforms can either enhance gender-equal- typically available. izing trends or exacerbate existing gender gaps, depending on the way they are designed and implemented. 1 Other important factors affecting people’s exposure to economic benefits and risks are location, ethno-linguistic affiliation, poverty levels, etc. These often intersect with each other and with gender. This paper focuses on the gender dimensions of trade, but refers to other dimen- sions when possible. 10 Mapping the gender dimensions of trade The second part of the paper is aimed primarily search that would yield a more in-depth under- at policy makers. It uses the framework to provide standing of the interrelationships between gen- a diagnostic which examines i) sectors in Lao with der and trade. potential for export expansion that could benefit women ii) gender-based constraints in these sec- The remainder of the paper is structured as fol- tors which limit their expansion through trade; lows. Section 2 introduces the analytical frame- and, iii) potential impacts for women, both posi- work; section 3 presents some basic statistics to tive and negative, from an increase in Lao’s natural highlight those sectors in Lao with potential for resource exports. This analysis provides the basis export expansion that could benefit women; sec- for formulating ideas on complementary policies tion 4 provides a trade performance assessment and interventions to (i) address constraints to and a more in depth gender analysis of potentially trade which women often disproportionately suf- key strategic sectors for trade promotion; section fer from and to (ii) mitigate the potential adverse 5 analyses key binding constraints facing specific impacts of export promotion on gender equality. sectors and their gender dimensions and makes recommendations on policies to address the con- The paper is exploratory in nature and the first straints ; section 6 analyses questions concerning analysis of this kind undertaken in Lao PDR. natural resource based exports and section 7 con- The analysis uses the existing information that is cludes by summarizing policy options, identifying available, but also makes recommendations for gaps in knowledge and suggesting ways forward. improvements in data and areas for further re- 2. Analytical framework for trade and gender mapping To map the relationships between gender and consumers of public services. To tease out the re- trade requires looking at the economy of a lationships between gender and trade requires country as a gendered structure. Box 2 shows in where possible that the researcher interrogates more detail how men and women typically have how these varying roles in an economy interact unequal roles in an economy as producers, work- with policies aimed at promoting exports. ers, traders, household managers, tax payers and 2 The main drawbacks of elasticity indicators is that they do not imply a causal relationship between numerator and denominator, and abstract from a range of other factors that may influence change in the numerator and/or denominator. Mapping the gender dimensions of trade 11 Box 2: The economy as a gendered structure: unequal roles played by women in an economy Women as producers and workers Women tend to be clustered in fewer jobs and occupations than men. Although, of course, there is variation across regions and countries, available data reveals in most cases that women tend to be concentrated in fewer sectors (such as: food production in agriculture, textiles and garments, and domestic as well as other social services) than men, who tend to be more evenly distributed across a larger range of occupations and productive activities(See Annex 1.1). Women are also more likely than men to be found in precarious forms of work. A recent ILO report on women’s employment trends (ILO 2010) shows for instance that, in all regions of the world, women constitute a larger share of contributing family workers. This gender difference is particularly marked in South Asia where unpaid family work accounts for 51 percent of women’s employment compared with 14 percent of men’s. In Southeast Asia the corresponding figures are 35 percent for women and 10 percent for men. A ‘contributing family worker’ is in the most vulnerable form of employment as her status implies no independent access to income. Women face many demands on their time related to their domestic responsibilities. Im- portantly, viewing the economy through a gender lens involves also counting not only produc- tive but also reproductive activities. Activities such as food preparation, water and fuel collec- tion, housework and child care contribute to the productivity of the labor force and maintain the daily well-being of the population. Responsibility for these activities falls disproportionately on women’s shoulders. For example, a recent UNRISD study (Budlender 2008) shows that, in India, women spend on average 354 minutes every day doing housework and childcare while men spend only 36 minutes on it. In Tanzania, the corresponding figures are 270 minutes for women and 54 minutes for men. The burden of unpaid work is particularly heavy for rural women in remote areas, mostly because of poor physical infrastructure. This is likely to undermine the ca- pacity of these women to contribute to paid productive activities and increases the probability that they will be involved in informal low-return forms of employment. In Tanzania, for example, time spent fetching water and fuel appears to be a significant constraint on women’s participa- tion in off-farm self-employment (World Bank 2007). Information on the time spent on providing unpaid services for the nurture of family and neighbors can be gleaned from Time Use Surveys, which are carried out in a growing number of developing countries (see Annex 1.2). Women face greater disadvantage than men in responding to new economic incentives not only because they are more time constrained but also because their access to productive resources is restricted. A large body of empirical evidence from many different countries shows 12 Mapping the gender dimensions of trade that female farmers are just as efficient as their male counterparts but they have less land and use fewer inputs, so they produce less (FAO 2010). With regard to credit, because women tend to receive only very small loans, they often remain trapped in low value activities, which may help them in meeting their practical needs but do not contribute towards widening their op- portunities. In Sri Lanka, for example, average returns to capital were found to be zero among female-owned enterprises but greater than 9 percent a month for male-owned enterprises (cited in Quisumbing and Pandolfelli 2008). With regard to education, women and girls’ lim- ited access to skills, including in cutting-edge technical fields, limits their upward mobility for employment opportunities related to trade. Women as traders Female traders tend to have weak bargaining power. Women in many countries have to deal with cultural biases on what are considered appropriate modes of transportation for them (many women travel on foot and carry head loads, and their control over simple trans- portation advances such as draft animals, bicycles and carts is limited). Their time constraints prevent them from travelling regularly and long distances to reach the markets that offer best prices and fairer conditions. Furthermore, they often face harassment by market or trade of- ficials. As a result, they tend to be paid too little for what they sell and pay too much for what they buy. Women as household managers Time and resources within households are not distributed equally between women and men, girls and boys. Women are not only producers, workers and traders, but also play an important economic role as household managers and purchasers of food and other goods for their families. Any economic shock resulting in changes in the relative price of necessities is therefore likely to have a different impact on female and male household members. Women as tax payers and users of public services Because of their different economic roles and responsibilities, women and men are also likely to be affected differently by fiscal reforms. A change in income tax, for instance, would impact more directly on men as they usually earn more and own more wealth. A VAT on basic consumption goods may impact more directly on women in their responsibility as primary household caregivers. Mapping the gender dimensions of trade 13 The framework presented in Table 1 is a simple, Trade leads to some sectors expanding and some systematic, step by step approach to gender other sectors contracting. It is important to know mapping for export promotion that looks at if the expanding/contracting sectors are female- the economy through the lens of a gendered intensive and hence whether gains/losses in em- structure. It serves as a useful outline for con- ployment from trade are likely to be dispropor- ducting a simple diagnostic to identify those sec- tionately female/male. In the researcher’s analysis, tors where export promotion is likely to benefit (or they would therefore seek to answer to some of not) women and then further examining the gen- the following questions: der-based constraints in these sectors which limit their expansion through trade and any potential In which economic sectors do women and men adverse impacts of export promotion. work? What is the difference between female employ- A first step in drawing the gender picture of ment patterns and male patterns? an economy might involve mapping in which What is the proportion of female and male work- sectors (such as different types of agriculture, ers in sectors with potential for export expan- manufacturing or services) women and men sion? work, and their employment status (such as What is the proportion of female and male work- self-employed, wage employee or contribut- ers in sectors which will be exposed to import ing family worker). competition? Table 1: A step by step approach to gender mapping for export promotion FIRST STEP Collect data on: how many of the products currently exported in high volumes are female intensive; how many new emerging products are female intensive; and, how many of the exports that survive employ female workers or are likely to be produced by female-owned enterprises. Calculate aggregate indicators such as: trade elasticity of gender inequality in income; and, trade elasticity of gender inequality in unpaid labor time. SECOND STEP Use available analyses of export quality and sophistication (such as PRODY, EXPY and similar) to guide choice of sectors for which in-depth gender analysis is needed. THIRD STEP Carry out gender value chain analysis of specific products to make women’s contri- butions fully visible and to identify key binding constraints. 14 Mapping the gender dimensions of trade This initial gender employment mapping of Are opportunities in the sector for upward mobil- the composition, quality and sustainability of ity equally available to male and female work- exports could be complemented by calculating ers/producers? trade elasticities of gender equality as indica- Is access to training in this sector gender-differ- tors of broad patterns: for example, the trade entiated? elasticity of gender equality in income or the Do working conditions in the sector vary by gen- trade elasticity of gender gap in unpaid labor der (i.e. enforcement of labor rights weaker for time. In these indicators, the denominator mea- female workers)? sures changes in exports over time whereas the How easily can workers/producers move from numerator measures changes in the gender wage one sector to another? gap and changes in the ratio of time spent by males in unpaid domestic work to the time spent A third step in a trade and gender mapping by females, respectively. These measures have se- exercise involves gaining a more in depth un- rious methodological limitations but are relatively derstanding of the key constraints facing a simple to calculate and could provide at least some specific sector (and of the different economic initial guidance as to whether trade expansion actors within it) which prevent resources from (and a particular trajectory in export composition) being allocated between different groups of has been helpful for women’s empowerment.2 women and men in ways that enhance overall Unfortunately the existing Lao PDR data does not productivity and well-being. The key binding allow for these calculations: sex-disaggregated in- constraints facing a specific sector are often gen- formation on wages appears to be available only der intensified. These constraints may include a for a few selected firms in the formal sector, and wide range of interconnected factors such as lim- time use data have started to be collected only re- ited access to skills, capital and services; weak in- cently (and hence do not cover a sufficiently long frastructure; restricted information on prices and time period). As more sex-disaggregated informa- marketing; and cumbersome taxes and regulatory tion on wages becomes available and the years procedures. While both men and women from poor and marginalized backgrounds suffer from available for time use data grows, these elasticities deficits in such dimensions, gender interacts with will provide useful further insight. other socio-economic inequalities to exacerbate women’s disadvantage. Policies may worsen gen- Moving beyond understanding at the aggre- der-intensified inequalities, for instance by the gate level, trade performance assessments can manner in which agricultural extension or land be a useful tool for the researcher for mapping tenure reforms are designed and implemented, or out potential winners and losers from trade when the state fails to legislate against discrimina- promotion, which can help to guide the re- tion in labor markets. At the same time, key public searcher on those sectors and product groups actors can do a great deal to institute rules, norms where further in-depth gender analysis is and behavior which can help to offset and even needed. An understanding of the roles that men transform long standing inequalities. and women play within the economy and the spe- cific sector can help to draw out in more detail the likely differential impacts on men and women of export promotion in a particular sector. 2 The main drawbacks of elasticity indicators is that they do not imply a causal relationship between numerator and denominator, and abstract from a range of other factors that may influence change in the numerator and/or denominator. Mapping the gender dimensions of trade 15 One of the best approaches to identify binding they will often vary from sector to sector. Comple- constraints and bottlenecks to trade expan- mentary interventions aimed at addressing con- sion is to carry out gender-aware value chain straints to trade expansion may therefore need to analyses of particular products and sectors. factor in gender differences. A global value chain analysis focus on: the way goods move from producers to processors, trad- In addition to analyzing the key constraints ers, and finally to consumers; the exchange of that prevent men and women in an economy payment, credit, and capital among actors; price from fully benefitting from export promotion; signals, pricing behavior, and value addition; and it is also important to understand any potential the dissemination of technology and the flow of adverse impacts that trade promotion might information across the chain. A gender perspec- have on poverty reduction more generally and tive can shed further light on where women and gender equality. This is particularly important in men are in the various nodes of the chain and on the context of resource-rich economies like Lao the power imbalances which may characterize PDR. There is a large body of literature on the ‘Nat- relations between them. A gender focus in value ural Resource Curse’ (see for a survey of the litera- chain analysis means also giving visibility to those ture Frankel 2010) which has shown that natural areas of women’s work (such as home-based and/ resource wealth does not necessarily confer in- or unpaid work) that tend to be overlooked in clusive economic development and indeed can in many development interventions. These activities some cases hinder development. To achieve wide- are generally important in explaining how produc- spread social and economic gains, it is important tion and distribution processes actually take place that the revenues from the increased resource and indicate critical links at which change should exploitation are invested in infrastructure, educa- happen in order to bring about upgrading of the tion and health care in ways that pay particular specific chain. Researchers would be looking for attention to the gender, ethnic and geographi- answers to questions such as: cal dimensions of disadvantage. Benefits sharing mechanisms may be required to ensure that the Do women and men have equal access and benefits of resource revenues are shared with af- control over resources such as land, credit and fected communities. inputs? How much time do women and men spend on activities such as cooking, cleaning, child care, fetching water and fuel? Does this vary depend- ing on location, age, family circumstances or ethnicity? The identification of binding constraints can serve to offer the policy maker some initial pointers to complementary policies that may be required to exploit the opportunities of- fered by trade liberalization for both men and women. The different roles and responsibilities of men and women in the economy mean that those constraints may not necessarily be the same and 16 Mapping the gender dimensions of trade 3. Gender characteristics of the Lao economy: sector overview This section presents a broad brush picture 34 percent of GDP, suggesting low productivity of the gender structure of the Lao economy levels in this sector. The proportion of women in through some basic statistics on the different agriculture is slightly larger than the proportion sectors of the economy. Aggregate sectoral statis- of men and the only sector in the economy with tics can offer an immediate and effective snapshot a higher female intensity is manufacturing. More of the gendered structure of production and trade disaggregated data at the sub-sectoral level show, of Lao PDR and hence constitute a useful starting however, that women working in manufacturing point for more in-depth analyses. The information are clustered in the garments sector while other presented here offers an initial indication of those manufacturing is dominated by men. sectors in Lao with may have potential for export expansion that could benefit women. Copper and electricity constitute about 45 per- cent of total exports (and are predicted to grow Agriculture is the main source of employment, further) but their contribution to the overall particularly for women. Outside of agriculture labor force is limited. Table 3 links data on key women tend to be clustered in garments and in exports with information on the gender compo- a few services. Table 2 shows that, in Lao PDR, ag- sition of the labor force. Power and mining are riculture gives employment to a very large share both capital-intensive sectors and their contribu- of the labor force (78 percent of the total female tion to the overall labor force, for both male and labor force and 76 percent of the total male la- female workers, is minimal (making up 0.6% and bor force respectively) but represents only about 0.2% of their respective work-forces). Low levels Table 2: Gender patterns of employment by sector Sector GDP Male labor Female labor Female (%) (%) (%) intensity* Agriculture 34.4 76.0 78.0 50.4 Mining 11.5 0.4 0.2 35.7 Electricity, Water & Construction 7.5 0.2 0.0 16.9 Manufacturing 8.2 5.5 6.2 52.9 Services 38.5 17.9 15.5 46.2 Total 100.0 100.0 100.0 - *percentage of the labor force in the specific sector which is female Source: LECS 4 for labor data, World Bank for GDP data Mapping the gender dimensions of trade 17 of female employment are found also in wood The high proportion of workers implicated in production which constitutes about 18 percent the agricultural sector means that to gener- of total exports. The female intensity of the labor ate wider benefits, trade related interventions force in these sectors is low; but their limited di- ought to give attention to improving women’s rect employment potential would suggest that a productivity and equitable access to oppor- more balanced gender employment in these sec- tunities in agriculture. Table 3 shows that most tors would have a small overall impact on equality agricultural goods are at present produced for of employment in the wider economy. Of poten- domestic consumption — for example, only 14 tially more significance in gender terms is how the percent of vegetables and fruit production is ex- additional revenues generated from investments ported and their current overall contribution to in the mining and power sectors are utilized. total exports is also low. Table 2 and 3 show that women’s participation in such production is quite The garment sector is the most export-orient- high, in both relative and absolute terms. ed sector in the economy (100 percent of what is produced is exported) and is also the most This type of analysis considers the existing sec- female intensive one. Thus, further expansion of tor structure of the Lao economy, but a more garments would have gender-equalizing effects. open trade policy would be expected to lead to However, as can be seen from Table 3 garments a shift in the sector composition of the econo- employ only about 2 percent of the total female my and exports. As such, this type of analysis is labor force, so the gender impact of this sector’s usefully complemented by a more detailed analy- growth is likely to be positive but modest, at least sis of trade competitiveness which may point to in the short term. possible changing dynamics in overall export composition. Table 3: Gender patterns of trade Key Export % of total Export Female % of total exports intensity Intensity female labor Copper (a) 37 90 Low - Wood and wood products (a) 18 82 Low - Garments (b) 14 100 Very High 2 Electricity(a) 8 66 Low - Coffee and tea(c) 2 89 Medium High Rice, maize and other grains(c) 2 4 Medium High 78 Vegetables and fruit (c) 1 14 Medium High Total 81 - - - Sources: (a) Estimated output (World Bank); (b) Estimated output (Association of Lao Garments Indus- tries); (c) FAO statistics; (d) WITS, World Bank 18 Mapping the gender dimensions of trade 4. Gender dimensions of export competitiveness Trade policy efforts should be directed not only serve as a useful guide for pointing to sectors towards strengthening the export potential of with potential for trade expansion and those existing export sectors, but also towards en- that may diminish. Record and Nghardsaysone abling participation in new ones. The Govern- (2010) calculate the revealed comparative ad- ment of Lao PDR recognizes the need to diversify vantage4 (RCA) for Lao PDR’s major exports and, exports and is committed to targeting the non- based on this, classify products into four main cat- resource sectors to ensure that trade and growth are egories: classics (those which have demonstrated inclusive and pro-poor (this is outlined for example an RCA consistently over the long run); disappear- in the 7th NSEDP as well as in the National Export ances (those which previously demonstrated an Strategy, and will be further elaborated in the up- RCA, but no longer do so); emerging champions coming Lao PDR Trade and Integration Strategy3). (those which previously did not demonstrate an Gender equality principles could be integrated RCA, but now do); and marginals (those which into the export diversification strategy in two in- have never demonstrated an RCA). terconnected ways: (a) by identifying clearly, and in detail, in which sectors women work (and on This study focuses on ‘Classics’ and ‘Emerging what employment terms), and tackling the con- champions’ in order to highlight sectors where straints in those sectors that are likely to mute export promotion could create opportunities supply responses and (b) by identifying potential for increased female employment or value ad- adverse impacts of trade promotion, (for example dition. In further studies, it would also be of value the impacts on the most vulnerable following to consider the ‘Disappearances’ and ‘Marginals’ changes in the environment emanating from hy- which are currently female intensive so that com- dropower development) and putting measures in plementary policies (e.g. retraining, labor market place to manage the impacts on the communities policies, social safety nets) can be designed to affected. ease the adjustment costs that would be associ- ated with female workers in Lao moving from im- An analysis of export quality and sophistica- port-competing to export-expanding sectors. tion (such as PRODY, EXPY and similar) can Table 4: List of products (classics and emerging champions) from Record and Nghardsaysone (2010) ID (SITC) Product Name T echnology Prody Path category CLASSICS 2483 Wood of non-coniferous species, sawn Resource Based 3,667 110 2472 Sawlogs and veneer logs, of non coniferous Resource Based 2,287 96 711 Coffee, whether or not roasted Primary Products 1,936 85 2922 Shellac, seed lac, stick lac, resins Primary Products 987 96 2924 Plants, seeds, fruit used in perfume Primary Products 3,622 105 2923 Vegetable matter Primary Products 2,334 123 Average 2,472 102 3 The Ministry of Industry and Commerce is currently preparing the Lao Trade and Integration Strategy, as an update to the 2006 Lao PDR Diagnostic Trade Integration Study. 4 The revealed comparative advantage is a measure of the relative export performance by a country for a specific export product, defined as a country’s share of world exports in the given product, divided by the country’s share of total world exports. Mapping the gender dimensions of trade 19 EMERGING CHAMPIONS 6821 Copper and copper alloys, refined Resource Based 4,900 105 3510 Electric current High Tech 8,874 151 8451 Jerseys, pullovers, twinsets, cardigans Low Tech 4,464 119 8423 Trousers, breeches etc. of textile fabrics Low Tech 4,789 122 8462 Under garments, knitted of cotton Low Tech 4,975 113 8441 Shirts, men’s, of textile fabrics Low Tech 4,936 124 8459 Other outer garments & clothing, knitted Low Tech 6,020 118 8439 Other outer garments of textile fabrics Low Tech 5,408 125 8463 Undergarments, knitted, of synthetic fabrics Low Tech 6,207 131 9710 Gold, non-monetary Resource Based 5,716 106 2320 Natural rubber latex; natural rubber Primary Products 1,169 56 8510 Footwear Low Tech 7,765 149 2482 Wood of coniferous species, sawn, planks Resource Based 11,578 133 440 Maize (corn), unmilled Primary Products 6,430 114 6344 Wood-based panels, n.e.s. Resource Based 7,848 138 8429 Other outer garments of textile fabrics Low Tech 5,624 132 3222 Other coal, whether/not pulverized Primary Products 12,166 97 2732 Gypsum, plasters, limestone flux Primary Products 5,721 135 8993 Candles, matches, pyrophoric alloys Low Tech 8,437 153 459 Buckwheat, millet, canary seed, grain Primary Products 5,009 94 2876 Tin ores and concentrates Resource Based 1,685 47 548 Vegetable products, roots & tubers High Value PP 4,789 108 8431 Coats and jackets of textile fabrics Low Tech 6,511 146 545 Other fresh or chilled vegetables High Value PP 5,477 122 8434 Skirts, women’s, of textile fabrics Low Tech 5,544 137 8424 Jackets, blazers of textile fabrics Low Tech 7,794 145 2221 Groundnuts (peanuts), green, whether Primary Products 2,739 101 6341 Wood sawn lengthwise, sliced/peeled, Resource Based 5,237 136 8421 Overcoats and other coats, men’s Low Tech 6,423 143 2225 Sesame seeds Primary Products 1,179 93 11 Animals of the bovine species Primary Products 4,391 128 8433 Dresses, women’s, of textile fabrics Low Tech 5,790 141 6359 Manufactured articles of wood, n.e.s Resource Based 9,089 159 8435 Blouses of textile fabrics Low Tech 5,783 132 2929 Other materials of vegetable origin High Value PP 5,977 121 421 Rice in the husk or husked Primary Products 4,101 97 Average 5,849 121 MARGINALS 6672 Diamonds, unworked. cut/otherwise work. Resource Based 2 5,607 79 6822 Copper and copper alloys, worked Resource Based 2 9,728 158 422 Rice semi-milled or wholly milled, Primary Products 4,455 99 8219 Other furniture and parts Low Tech 2 10,855 168 6353 Builders’ carpentry and joinery Resource Based 1 13,115 152 565 Vegetables, prepared or preserved, n. Resource Based 1 8,482 145 2613 Raw silk (not thrown) Primary Products 2,861 47 1222 Cigarettes Resource Based 1 12,204 142 20 Mapping the gender dimensions of trade 589 Fruit otherwise prepared or preserved Resource Based 1 9,337 136 2875 Zinc ores and concentrates Resource Based 2 5,171 119 Average 8,181 125 DISAPPEARANCES 2471 Sawlogs and veneer logs, of conifero Resource Based 1 8,841 139 2882 Other non-ferrous base metal waste Resource Based 2 6,030 129 Average 7,435 134 Source: Record and Nghardsaysone (2010) The following paragraphs examine gender exported. Lao women are involved in its produc- characteristics of specific sectors. Having tion and do most of the weeding and hand mill- grouped exports from Table 4 into two main blocs: ing —their labor inputs tend to be higher in poor agricultural goods and labor-intensive manufac- villages practicing upland rice cultivation than in tures, the task is then to single out, within each prosperous lowland villages where irrigated rice of these blocs, those sectors that appear most prevails. As for other grains, vegetables and fruit, promising in terms of providing opportunities for it seems both women and men plant, apply fertil- meeting gender, broader equality and poverty re- izer, irrigate and harvest. Land preparation tends duction goals in support of the Government’s 7th to be done by men while weeding is largely wom- NSEDP. en’s responsibility (FAO National Gender Profile of Agricultural Households 2010). Reflecting pat- 4.1. Agriculture terns found in many other parts of the world, men seem to mostly control motorized equipment and Agricultural production and agro-processing dominate cash crops while women contribute sig- for exports clearly are the activities with high- nificant but less visible labor inputs to production est potential for socio-economic impact. More (World Bank, IFAD, FAO 2009). than 70 percent of the population still lives in rural areas and agriculture is key for Lao women’s liveli- Women have primary responsibility for house- hoods, even more than for Lao men’s (78 percent hold food security and spend considerable time of the total female labor force is in the agricul- gathering non-timber forest products (NTFPs) tural sector compared with 76 percent of men as such as mushrooms, wild berries, fruits, nuts shown in section 3). Most rural women are largely and medicinal plants especially in the North engaged in subsistence or semi-subsistence farm- and during agricultural lean seasons. Women ing and are unpaid family workers. Three main also tend to small livestock such as pigs, poultry farming systems prevail in Lao PDR: dry-land rice and goats for both household own consumption cultivation using shifting cultivation techniques and income generation; men are mostly responsi- in the northern and eastern mountain upland re- ble for larger livestock such as cattle and buffalos. gions bordering China and Vietnam; paddy rice cultivation along the Mekong river valley border- Gender patterns in agricultural tasks and roles ing Thailand; and horticulture crops in the south- differ by ethnic group and geographical loca- ern inland plateau areas. Women participate in all tion and, significantly, have been changing as these systems but in varying degrees, and with a result of increased commercialization and different roles and responsibilities, depending on associated greater investment in cash crops in the socio-economic context. recent years. A tentative ranking, informed by se- lected anecdotal evidence from various Lao sourc- Rice is the main crop: it is mostly used for house- es as well as by knowledge of global patterns in hold consumption and local trade, but is also gender and export performance, suggests the fol- Mapping the gender dimensions of trade 21 lowing as the most promising products from the high income values and greater scope for diversi- point of view of women’s employment generation fication compared to other agricultural commodi- and economic empowerment: vegetables, rice, ties. Even minor processing of vegetables, or the coffee and tea. The following paragraphs explain development of fresh and chilled supply chains, why and point to key aspects that would need to appears to result in significant additional value be further investigated in order to facilitate the added (Record and Nghardsaysone 2010). Glob- design of appropriate policy measures. ally, high-value agriculture is the fastest growing of all traded agricultural exports. High-value agri- 4.1.1. Vegetables culture can include a wide range of products such as vegetables, fruits, shrimps, nuts as well as non- Women are involved in vegetable production food goods such as cut flowers.6 in most parts of the world and Lao PDR is no exception. Vegetables are considered ‘female In principle, rural women could be involved crops’ in most regions of the world (but the spe- in the production of high-value agricultural cific gender intensity of their production may goods at any node of the value chain, either as vary, and is not static). Women in the Lao PDR farmers or as wage workers, or as intermediar- are active in the cultivation of cabbage, lettuce, ies processing or selling products. In practice, potatoes, tomatoes, ginger and fruit, which tradi- women seem to have been able to benefit from tionally they grow on small plots mainly for home this growth more as hired labor on the field or in consumption, with some sale in local markets. In packaging plants—the snow pea sector in Kenya recent years, however, production for export has and fresh fruit in Mexico provide examples of this been increasing with growing cross-border invest- (Fontana 2009). ments, contract farming arrangements and trade (Trade Development Facility Champasak Agribusi- In addition to vegetable and fruit export ex- ness Study 2009). Evidence suggests, for example, pansion, some studies (for example UNDP that export of cabbage has been growing and that 2006) note the gender equality potential of women are involved in the cabbage supply chain export of non timber forest products (NTFPs), not just as producers but also as cross-border including creating positive incentives at local- traders. As for processed vegetables and fruit, it is community and central-policy levels to protect reported that female workers constitute about 80 biodiversity and forest cover. In particular, wild percent of the total labor force in the two existing fruits and herbal ingredients used in traditional firms exporting fruit jams and pickled vegetables medicine, for which demand from China appears (UNDP 2006). to be strong, are promising. NTFPs are harvested mainly by women and girls in the poorest area of The sector of fresh, as well as processed, vege- Lao PDR and provide income that women control. tables and fruits has high female employment However, there may be environmental sustainabil- creation potential. An assessment carried out by ity risks as well as limited scope for women’s skills the International Trade Centre (ITC2005) ranked enhancement related to these activities. Positive the sector of fresh, as well as processed, vegeta- outcomes would crucially depend on whether bles and fruits very high for its female employment policies to support enhancement of women’s tra- creation potential as well as for environmental ditional roles as ‘forest protectors’, and to involve sustainability, relative to other crops. One further them in higher value segments of the NTFPs chain, aspect to note, though, is that vegetable produc- can be put in place. tion takes place mostly in the relatively richer ar- eas of the South and hence may be of less ben- efit to remote female farmers belonging to ethnic minorities in the North.5 Vegetable products have 5 Perhaps with the exception of Luang Prabang, although this is a small island of opportunities is mostly related to the tourism industry. 6 Food products make a stronger contribution to poverty reduction than luxury non-food products and expansion of these latter carries risks for food security and the environment. 22 Mapping the gender dimensions of trade 4.1.2. Rice 4.2. Manufacturing Rice has a long tradition of production and The manufacturing sector as a whole accounts consumption in Lao PDR and women are sig- for about 8.2 percent of the Lao GDP and pro- nificantly involved in it, although the extent of vides formal employment to about 8 percent their engagement varies by region. Evidence of the total labor force. Major manufacturing suggests, for instance, that female labor inputs sub-sectors are food and beverages, garments tend to be higher in poor villages practicing up- and wood processing. The coverage and quality of land rice cultivation than in lowland villages dom- data for manufacturing activities is slightly higher inated by paddy rice. In Southeast Asia, more in than for agriculture, thus allowing a better track- general, women are reported to constitute up to ing of gender-based employment dynamics in 90 percent of the labor force in rice. In Cambodia these sectors. As in many other parts of the world, and Vietnam, female farmers also seem to be in- the labor force employed in the Lao PDR garments creasingly taking on male tasks (FAO 2005). Paris industry is overwhelmingly female. Some studies et al. (2009) report that, in Vietnam, as a conse- (for example UNDP 2006) point also to the handi- quence of male migration, wives have assumed craft exports for their poverty reduction impact, additional responsibilities such as land prepara- including on women from ethnic minorities tion, pesticide application, and marketing—effec- tively transforming themselves from unpaid fam- 4.2.1. Garments ily laborers into family farm managers. The sector with the strongest potential for Lao PDR has great diversity of rice varieties trade-related female employment generation most of which are glutinous and hence con- is garments. The garments sector is the most sumed largely locally. According to UNIDO female-intensive sector in the Lao PDR economy, (2002), though, the aromatic varieties are likely although it is still currently of modest size in rela- to have good export prospects. An ITC assess- tive terms. Working conditions vary. The garments ment (ITC2005) notes that the export potential of sector employs around 28,000 workers (or about 1 rice production in Lao PDR is low, but gives it the percent of the total labor force). About 80 percent second highest score in terms of socio-economic of the labor force in the garment industry is con- impact, in particular considering its potential for stituted by women between the age of 16 and 25 employment creation and poverty reduction. who are mostly hired as unskilled and semi-skilled workers performing activities such as cutting, 4.1.3. Coffee and Tea sewing, packing and ironing. Employers or man- agers in this sector are rarely women and the few Coffee production in Lao PDR is more estab- female-owned enterprises tend to be of smaller lished than tea production but is still a relative- size and have more restricted access to financial ly young activity. The ITC assessment (ITC 2005) resources than male-owned ones. Average wages ranks tea higher than coffee in terms of both em- in the garments industry are lower than in other ployment creation and environmental sustainabil- industries where male workers predominate. ity. Tea is grown mostly in the Northern parts and Working conditions vary depending on a num- undertaken mostly on an organic basis. It consists ber of factors. Initial findings from a recent study of a mix of wild forest tea areas and cultivated ar- (World Bank, forthcoming) provide a diverse pic- eas. Many communities of different ethnicities are ture with some workers complaining of strict rules involved in the sector. Anecdotal evidence sug- and supervisor harassment in some larger export- gests that many of the tea pickers, especially of oriented factories while others reporting a greater the wild forest variety, are women. The high qual- satisfaction with working in smaller, Lao-owned ity of tea means that, in principle, producing it operations because of ‘softer’ family-style man- could generate higher sale prices. agement even when wages, benefits and physical working conditions are less attractive. Mapping the gender dimensions of trade 23 The sector has continued to grow despite ex- management positions though. Transport and re- pectations to the contrary, but some producers pair activities are almost exclusively male operat- struggle to meet buyers’ demand. Garment ex- ed while it is common for women to be involved in ports in 2010 have been rising. While the absolute more informal services such as operating food and level of exports has grown over time, the sector’s drink stands. In addition to more standard forms of share of total exports has declined from around tourism, the development of ecotourism and ‘vil- 31 percent in the early 2000s to just above 10 per- lage’ tourism has the potential to bring resources cent, due to the recent boom in natural resources to rural areas but the gender division of labor and exports. The sector however appears overall to be responsibilities in local communities often means stable and has continued to grow after 2005 de- that women and men do not share the benefits spite expectations of a decline following the expi- (or burdens) of local tourism equally. Local men ration of the Agreement on Textiles and Clothing. are more likely to secure new income-generating and leadership roles, while local women are often 4.2.2. Handicrafts engaged in lower-paid and lower-status activities such as providing meals and participating in cul- The handicrafts sector has significant poten- tural entertainment (Adams 2008). Some initiatives tial to increase the income of rural households, (such as home-stays) may increase their workload including minority households who have oth- with little compensation because this additional erwise limited economic options. The major labor is considered a ‘natural’ extension of wom- products of Lao’s handicraft industry are silk and en’s domestic responsibilities(LNTA 2006).The Lao cotton textiles which are mostly woven by wom- National Tourism Association received significant en, including women from minority ethnic groups support for undertaking a Gender Assessment and living in remote areas. Handicraft production pro- Strategic Action Plan of the Tourism Sector (2006- vide a good source of supplementary income, 2008) from SNV and LWU/GRID. However, it is yet especially during periods of low labor demand unclear how successful implementation of the in agriculture and, because much of it can be car- strategy has been in addressing gender concerns ried out at home, women find it easy to reconcile (World Bank Gender profile, forthcoming). The in- it with their domestic responsibilities. For these dustry has considerable potential to support the reasons, handicraft production tends to be ranked social inclusion of women, especially from ethnic very high in various assessments (for example in minorities, but a number of measures need to be ITC 2005) for its poverty reduction and female em- put in place to ensure that their incorporation into ployment generation potential. A few (often for- the sector happens on terms that enhance their eign) companies are very successful in exporting skills and status and do not reinforce negative per- high value products, combining traditional weav- ceptions around their roles. ing techniques with western designs (and female weavers in these companies tend to enjoy a num- In sum, this section has provided some more ber of social security benefits). specific analysis of export sectors with potential for female employment generation. Some of the 4.3. Services – Tourism sectors reviewed are traditionally ‘female sec- tors’ (such as garments, vegetable production or The tourism industry has the potential to sup- handicrafts) and some jobs in these sectors can port the social inclusion of women, especially be more easily reconciled with women’s domes- from ethnic minorities, but measures need to tic responsibilities (such as home-based weaving be put in place to ensure that their incorpora- or other home-based production). While support tion happens on terms that enhance their skills to these sectors is an important first step towards and status. Handicraft production is related to ensuring that the immediate practical needs of tourism expansion and tourism generally can also many vulnerable women are met, in the long run offer women job opportunities, both in the formal policy may need to focus on more transformative hospitality industry and in informal related ser- strategies that widen labor market opportunities vices. Available evidence suggests many women for women and do not reinforce traditional gen- in Lao PDR are currently employed by hotels and der roles and stereotypes, whether in the market guesthouses, food service providers, and by tour or at home. companies. Women are under-represented in 24 Mapping the gender dimensions of trade 5. Gender dimensions of binding constraints The key binding constraints facing a specific ‘production’ arrow) and as millers (the ‘process- sector are often gender intensified. A third ing’ arrow). However the manner in which farm- step in a trade and gender mapping exercise in- ers contribute to production processes and the volves gaining a more in depth understanding of way millers manage processing activities reflects the key constraints facing a specific sector (and specific gender roles. For example, while some of the different economic actors within it) which farming activities are jointly undertaken, male prevent resources from being allocated between farmers tend to be in charge of land preparation different groups of women and men in ways that and female famers do most of the drying. Female enhance overall productivity and well-being. farmers do also take care of other agriculture pro- These constraints may include a wide range of duce that can be grown near rice fields and take it interconnected factors such as limited access to to local markets for sale. More male farmers than skills, capital and services; weak infrastructure; female farmers take part in extension services. restricted information on prices and marketing; Female farmers attribute their limited participa- and cumbersome taxes and regulatory proce- tion to their domestic responsibilities (while men dures. While both men and women from poor and explain women’s lack of participation in terms marginalized backgrounds suffer from deficits of their low education levels). Women are about in such dimensions, gender interacts with other 50 percent of the millers: they do most of the ac- socio-economic inequalities to exacerbate wom- counting and tend to rely on other female family en’s disadvantage. Policies may worsen gender- members for support with housework, while male intensified inequalities, for instance by the man- millers rely heavily on their wives for book-keep- ner in which agricultural extension or land tenure ing as well as housework. Women are involved in reforms are designed and implemented, or when activities complementary to rice production such the state fails to legislate against discrimination in as making bags and other products for packaging labor markets. At the same time, key public actors rice (the red arrows), but are mostly excluded from can do a great deal to institute rules, norms and any activity that involves transport, networking behavior which can help to offset and even trans- and marketing (the blue arrows), which remain form long standing inequalities. the domain of men. In addition to more visible transactions that take place through markets (the 5.1. Key constraints in agriculture arrows), there are also important invisible contri- butions (the red circles) by girls and other female One of the best approaches to identify binding family members. constraints and bottlenecks to trade expan- sion is to carry out gender-aware value chain The analysis highlights the specific constraints analyses of particular products and sectors. An faced in Enhanced Rice Production along the illustration of this is provided in Figure 1 which value chain (i.e. production, processing) that draws on a recent gender assessment of the EM- affect men and women. Although this analysis RIP (Enhancing Milled Rice Production) project was undertaken particularly in the context of rice (SNV 2010) to sketch women’s contributions in production, many of these constraints cut across the rice value chain. This analysis provides useful different agricultural product markets. In produc- insight into constraints in the agriculture sector tion, the main blockages seem to be: (i) access more generally. to inputs and credit and (ii) limited access to ex- tension and training; while in processing, the key The way in which rice farmers and millers con- blockages are: (i) limited access to info on markets tribute to the value chain reflects specific gen- and prices and (ii) restricted use of transport. Each der roles. The mapping shows that both women of these constraints will be considered in turn. and men participate in the chain as farmers (the Mapping the gender dimensions of trade 25 Figure 1: Visible and invisible women’s contributions in the rice value chain *visible contributions in arrows *invisible contributions in circles Some invisible women’s contributions ♀ Women, ♀ Wives of male daughters and other ♀ Girls millers and female ♀ Girls female helping with millers exclusively in on family family members, only rice sorting charge of accounting farms responsible f or and book-keeping-but collection of water, no decision making cooking and ♀ Farmers sell power cleaning other agricultural produce at local markets PRODUCTION PROCESSING INPUTS -Growing (both M and F) ♀ COLLECTION -Storage -Wholesale (M) -Seeds -Harvesting (both M and F) -Paddy collection -Milling -Retailing (mostly M but -Fertilizers -Drying (mostly F) and selling -Grading ♀ in Vientiane) -Threshing (mostly M) -Selling ♀ Supplied ♀ -Complementary mostly by millers Supply of products for (both M and F) rice bags organic rice packaging - Packaging Main Blockages: Main Blockages: - For women: access to input and credit -Women’s more limited access to info on markets and -For men: access to training prices -Limited access to extension by women (women explain -Women’s restricted use of transport it as due to domestic responsibilities, men explain it as due to lack of education) Source: Framework adapted from Mayoux and Mackie, 2008, Making the Strongest Links, ILO. Information on gender division of labor in Lao rice production and milling from SNV Gender assessment of EMRIP, November 2010. 26 Mapping the gender dimensions of trade 5.1.1. Limited access to extension and training agricultural activities than formal education, but basic levels of education and literacy still Relevant and quality extension services are impact upon access to extension. Gender gaps limited for women farmers in many Asian persist at all levels of education and are especially countries, including in Lao PDR. In Vietnam, for severe in poorer rural districts and amongst non- example, women make up only 25 percent and 10 Lao Tai ethnic groups. Women living in poor villag- percent of participants in training programmes on es in remote areas have much lower literacy rates animal husbandry and on crop cultivation, respec- and Lao language proficiency than men (World tively (Kabeer 2003). In Cambodia, women appear Bank Gender Profile, forthcoming). In the long- to be only 10 percent of extension beneficiaries term, policies to ensure universal access to basic (Asian Development Bank 2008). Similar biases ex- education will be vital for equipping all citizens ist in Lao PDR (as highlighted in recent reviews by with the basic skills and literacy required to more the Lao Ministry of Agriculture). Research and ex- easily engage with extension workers, traders and tension services tend to focus on the tasks in which any others outside their village. Policies to build males specialize. Also, access to extension services standards of basic literacy amongst women could often requires travelling to district centres, taking include incentives for male, and especially female several hours away from the family, and extension teachers, to work and remain in rural schools; personnel are overwhelmingly male, raising cul- building new schools and improving physical ac- tural difficulties in engaging in face-to-face com- cess to them, paying particular attention to suit- munication with women farmers. able locations and means of transportation which are women-friendly; and gender training to teach- Extension skills are vital for learning about ers, including on issues related to sexual harass- modern farming methods throughout the val- ment. ue chain. In production, new skills are required in order to yield the benefits of modern production 5.1.2. Access to input and credits methods such as high yielding crop varieties and fertilizer application. The development of higher A more modernized form of rice-based farming, value-added vegetable exports for example might characterized by mechanization, high yielding depend upon meeting international food safety varieties, more intensive use of fertilizers and and phytosanitary standards. Without the exten- supplementary irrigation schemes, is being sion services to provide the necessary marketing adopted in some parts of the country. This type and processing skills, access to export markets is of modernized farming typically requires access unlikely to be realized. to credit, as up-front investments are needed to purchase fertilizer, high yielding varieties and any Participatory extension services that use illus- motorized equipment for which the financial ben- trated instructions rather than lots of written efits will be not realized until crops are harvested. material—so to be more accessible to illiterate At present, as stated in the last chapter, it is pre- farmers could widen access to modern farm- dominantly men that control motorized equip- ing methods. More female trainers and exten- ment and dominate cash crops while women con- sion agents could serve to improve the balance of tribute significant but less visible labor inputs to the tasks which extension services tackle and also production (World Bank, IFAD, FAO 2009). help to alleviate cultural difficulties. Infrastructure improvements in transport networks and electric- Government could work with the private sec- ity can also ease access to extension through low- tor, development partners and civil society to ering journey times to district centres and lighten- look at innovative ways of providing financial ing the high domestic burden of work that women services to women and the rural poor more disproportionately undertake. generally. The United Nations Capital Develop- ment Fund is supporting the government in the Extension services are likely to be a more im- program ‘Making Access to Finance more Inclu- portant determinant of labor productivity in sive for Poor People’. This type of initiative may fa- Mapping the gender dimensions of trade 27 cilitate access to credit enabling women to make access to information, ICT services have the po- the necessary investments required for more tential to play an important role in transforming modernized farming methods which can enhance markets and making them sites of cooperation in productivity. Establishing land titles is another which otherwise disadvantaged producers and potential mechanism for developing rural credit users of goods and services can interact without markets as land provides potential collateral to set the intervention of large powerful intermediaries. against loans. Mobile phones for example, are increasingly used in many remote rural areas by women farmers to 5.1.3. Access to information and learn market prices for inputs and crops (e.g. the markets Grameen Village Phone in Bangladesh and simi- lar such initiatives in Cameroon, the Philippines, Smallholders in general and women in particu- Rwanda and Uganda). In Senegal the Grand Coast lar, are likely to be in a weak position in nego- Fishing Operators Union, an organization of wom- tiating terms and prices with powerful buyers en who market fish, set up a website to promote because of limited experience and low levels of their produce, monitor export markets and nego- literacy. There are no systematic export promo- tiate prices with overseas buyers before they arrive tion support services available in the Lao PDR for in the country (Hafkin and Taggart 2001, quoted producers, and little or no market information is in World Bank, IFAD and FAO 2009). provided in newspapers, on the radio or television (World Bank Gender profile, forthcoming). Prob- Measures to facilitate women’s access to mar- lems of compliance to international food safety kets could also include institutional strength- and phytosanitary standards are also significant. ening of women’s groups and support for As a result, prices in the market are mostly con- women’s inclusion and influence in farmer as- trolled by ‘middlemen’. For example, a major sociations and trade unions. In the coffee mar- constraint to the expansion of exports of NTFPs ket, a number of recent initiatives in Lao have been is identified in the fact that local collectors have aimed at promoting producers’ associations with weak knowledge of markets and prices and hence the aim of improving technologies, helping in ob- either fail to get their products to markets or sell taining organic certifications and negotiating bet- their products at much lower prices to middlemen ter prices with buyers (Trade Development Facil- than directly to buyers. Many coffee smallholders ity Champasak Agribusiness Study 2009). Another participate in contract arrangements with local promising opportunity is found in the tea sector traders and processors and often sell their crop offered by the Lao Forest Tea Initiative. This is a in advance and hence receive significantly lower project that seeks to achieve both environmental prices. Women’s especially weak bargaining posi- and social sustainability through protecting the tion in the sale and purchase of goods and servic- biodiversity of upland areas and building on the es is strongly correlated with their disadvantage indigenous knowledge of cultivation practices. in education and in access to transport discussed Its activities include: supporting on-farm trials of in earlier sections. Traditional customs limiting improved organic tea cultivation models ensuring women’s mobility can further restrict their access women share control over resources and access to to markets. Women are also more likely to market income produced; facilitating the establishment smaller quantities than men. They may face barri- of organic certified tea production groups that ers to membership in rural organizations and co- include women and ethnic minority participation operatives, which may further inhibit a channel to in decision making roles; and supporting women’s facilitate market access (Doss 2001). groups to engage in cooperative tea cultivation (including through training in basic organization- In recent years, communication technologies al, financial and business skills). have proved very effective in bringing product market information to both women and men. The introduction of modern, electronic cus- Women are benefiting more because of their toms clearance systems could also go a long lesser mobility and literacy. By facilitating better way to overcome some of the difficulties wom- 28 Mapping the gender dimensions of trade en tend to experience more prominently than SNA and non-SNA work as well as by three types men at the border. Typically, border agencies of location: urban, rural with roads and rural with- are staffed by men and do not have a culture of out roads.7 Depending on the setting, women working in gender sensitive ways to assist female spend on average between 2.3 and 2.5 hours on traders (Dejene 2001). In addition, women’s lower non-SNA work compared to men who on average levels of knowledge about border processes can spend between 0.4 and 0.6 hours on the same. at times fuel extortion (UNECA 2010). There are still many villages in Lao PDR with lim- ited access to roads and poor availability of basic 5.1.4. Restricted use of transport and infrastructure generally. It is therefore not surpris- access to infrastructure ing to find that activities such as water and fuel collection take women longer in these areas than Women bear a disproportionate share of the in urban areas. Both women and men appear to burden of non-productive work, which can be spend less time in income-generating activities in eased with infrastructure improvements. Table rural villages without roads relative to other loca- 5 and Table 6 report data on women’s and men’s tions, suggesting limited overall opportunities for daily hours of work respectively, distinguishing by paid work for both genders in these areas. Table 5: Total work burden, adult females (hours in a day) Urban Rural Rural with roads without roads Total SNA work 4.4 3.9 3.5 Of which water and fuel 0.1 0.5 0.6 collection Non-SNA work 2.3 2.5 2.5 Total 6.8 6.9 6.7 Source: LECS 4 Table 6: Total work burden, adult males (hours in a day) Urban Rural Rural with roads without roads Total SNA work 5.1 4.7 3.8 Of which water and fuel 0.1 0.2 0.2 collection Non-SNA work 0.4 0.4 0.6 Total 5.7 5.3 4.6 Source: LECS 4 7 The UN System of National Accounts (SNA) recognizes as productive work the following categories: employment for establishments; primary production activities not for establishments such as agriculture, animal husbandry, fishing, forestry, fetching of water and collection of fuel wood; services for income and other production of goods not for establishments such as food processing, trade, business and other services. Water and fuel collection has been added only since 1993 but it is still often not included in measures of GDP in practice. It was included into SNA activities in the calculations reported in table 3 and table 4. Subsistence agriculture is of course also considered as part of SNA work. Food preparation, household maintenance, management and shopping for own household; care for children, the sick, the elderly and disabled; community services and help to other households are still considered ‘non-productive’ activities, and hence are not recorded. Only some countries record these activities but as separate ‘satellite accounts’. It is these activities that most gender-aware literature calls non-SNA work or extended-SNA work. Following these categorisations what is reported in table 3 and table 4 as non-SNA work includes what is described in the LECS questionnaire as: household cooking, washing and care of persons. Mapping the gender dimensions of trade 29 More widespread and regular electricity provi- 5.2. Key constraints in sion has the benefit of significantly reducing manufacturing the heavy domestic labor burden that con- strains many women’s capacity to engage in 5.2.1. Skills and technical knowledge income generating activities. Surveys of newly- electrified rural households in Lao PDR (World As in agriculture, lack of adequate skills and Bank Gender Profile, forthcoming) show that grid technical knowledge appears to be one of the electricity has reduced time spent on cumbersome major constraints to export competitiveness domestic chores performed by female household in Lao PDR in manufacturing, and has a strong members by facilitating the use of refrigerators gender dimension. Girls and young women are and water pumping for vegetable gardens, for in- under-represented in vocational and technical ed- stance. Access to electricity has also led to better ucation. Training seems to reinforce/reflect gen- educational outcomes, improved community ser- der based occupational segregation as boys and vices, and more security, particularly for women girls are channeled into different subjects. At the and girls. Project such as the Power to the Poor diploma level, 84 percent of female students are (P2P) pilot programme (World Bank 2009), provid- enrolled in agriculture, business, hospitality and ing the poorest households with interest-free loan tailoring. Electronics is the second most popular for electricity grid connections, are promising ini- subject area for all students, representing 28 per- tiatives in this area. cent of all trainees, but only 4 percent of female students. Females constitute 96 percent of the Women tend to predominate among produc- students in hospitality programs. Women are also ers and traders who use public transport and under-represented among vocational teachers hence they feel the implications of weak in- and trainers. frastructure more acutely. Restricted transport service availability in rural areas often means that Policies for promoting greater gender equality women going to markets or to work in agro-pro- in access to skills could involve a combination cessing must wait for tuk-tuks at dawn and return of measures that address both the content of after dusk, putting them at risk for assault. Also, education and training, as well as more prac- the high cost of providing transport in areas with tical problems that girls more often than boys low population density often translates in high face in accessing schools and training services. tariffs that poor women cannot afford. As a result Measures could include: better design of curricula of their limited mobility, female farmers have lim- so as to be more relevant to the technical knowl- ited knowledge of market prices and hence bar- edge required in key export-oriented sectors like gaining power, and therefore sell their produce to textiles production; and support to firms to un- middlemen who take a large share of the profit. In dertake on-the-job training for female employees addition to the trade dimension, a good road sys- as well as gender training for managers. tem has of course other positive impacts, which are likely to be more intensified for women: it can 5.2.2. Infrastructure help young girls to get safely to school and can reduce maternal mortality by making access to Limited transport networks and, more general- obstetrical care faster. Improved paths to water ly, weak physical infrastructure including pro- points or fuel-wood locations can save women’s vision of electricity and water, are identified by and girls’ hardship. many as an important constraint to improved competitiveness in the Lao PDR. Firm produc- In sum, infrastructure services, especially in tivity can be significantly affected by irregular rural areas can address a number of gender- electricity and water provision and poor transport specific needs, thus having a multiplier effect networks. Complex and cumbersome customs on female productivity. This in turn could further procedures, along with poor infrastructure at the enhance trade competitiveness in the long term. borders can often further increase transaction costs and lengthen delays to the clearance of im- ports, exports and transit goods. 30 Mapping the gender dimensions of trade Upgrading infrastructure is a long-term pro- tions in garments factories, the negative social gram and is expensive. It will require mobilizing status associated with being a garments worker resources from the private sector and as such it and higher relative wages for other unskilled jobs will be important to have in place conditions con- in Thailand. ducive for investment. New research on labor practices, labor pro- 5.2.3. Attraction and retention of labor ductivity and firm performance is currently being undertaken by the World Bank through Some garments producers report not being a series of firm surveys and focus group dis- able to meet demand from buyers and identify cussions with garments workers. Initial insights labor shortages, and difficulties in attracting suggest much scope exists for targeted invest- and retaining workers as their main binding ments and strengthened public-private partner- constraint (World Bank Investment Climate As- ships to increase skills and productivity as well as sessment 2011). Reasons for the existing short- for interventions to improve management, work- age appear to be migration challenges for young ing conditions and representation of workers (Box rural women, difficult working and living condi- 3 provides further details) Box 3: Survey of labor practices and conditions in the Lao garments sector Garments factory workers are mostly young women from rural areas seeking a better life and opportunities for themselves and their families. Factory work, although difficult and demanding, is considered less arduous and offers more opportunities for earning income than the alternative of working on family farms. Learning about big city life, making new friends and earning income motivates young women to continue working in the factories as long as they can. However, they often find it difficult to adapt to the long-hours and demands of industrial work and they struggle to cover the rising cost of living in urban areas, build savings and send remittances to their families in rural areas. Most women have limited information on working and living conditions before they are recruited. As a result they are often quite overwhelmed by transition into industrial labor and urban environments. Furthermore, they appear to gain only limited understanding of their contractual rights and obligations—even after recruitment—placing them at a distinct disadvantage for claiming benefits, negotiating improved working conditions, or reporting unfair labor practices. Many workers complain of long hours with too much compulsory and poorly paid overtime. Even in relatively 'good' factories, there are com- plaints of insufficient drinking water, poor air quality and hot working conditions, poor sanitation facilities, as well as controlling and sometimes abusive behavior by supervi- sors. While Lao Labor Law establishes basic standards such as minimum wages, restrictions on overtime, entitlements such as maternity and sick leave, these appear to be only weakly enforced and there is very limited opportunity for third party arbitration or dispute reso- lution. Labor standards established under contracts with foreign buyers or international trading regimes seem to create stronger inducements for compliance. These systems of voluntary certification and periodic auditing do not appear to be sufficient however to counter some of the unfair labor practices reported by workers. Lack of collective bargaining or effective representation through existing mass organiza- tions means workers have limited effective negotiating power vis-a-vis their employers. As a result, when individuals are dissatisfied, they simply quit their job. Source: World Bank (2012) Labor Practices and Productivity in the Lao Garments Export Sector, forthcoming. Mapping the gender dimensions of trade 31 5.2.4. Access to raw materials 5.3. Summary As with other sectors, exports of handicrafts suf- Table 7 below summarizes the key constraints fer from capacity constraints due to lack of skilled facing a specific sector which prevent resources personnel and limited access to capital, but this from being allocated between different groups sector also faces a shortage of domestically pro- of women and men in ways that enhance overall duced raw materials (in particular silk yarn and co- productivity and well-being and outlines poten- coons). The Department of Trade Promotion and tial interventions to address these constraints. Product Development, in collaboration with the Some interventions, such as the introduction of World Bank, is currently supporting an innovative participatory extension services that use illustrat- project providing support and technical training ed instructions are largely policy based and may to silk farmers in rural areas as well as facilitating therefore be easier to implement in the near-term sustainable partnerships between them and lead than other which require investment in fixed capi- weaving firms. This represents a valuable model tal like electronic customs clearance. for strengthening market linkages in an equitable manner that could be replicated and extended to other sectors and actors in the future. Table 7: Addressing constraints to trade expansion Sector Constraint Potential complementary Implementation interventions requirements Agriculture Access to inputs Financial inclusion programs to Requires long-term and credit increase access to finance program Access to extension Participatory extension services us- Largely policy based services ing illustrated instructions Infrastructure improvements in Investment in transport networks and electricity infrastructure required which can ease access to extension Access to Institutional strengthening of Largely policy based information on women’s groups and support for markets women’s inclusion and influence in farmer associations and trade unions. Facilitate access to communication Policy and infrastructure technologies Garments Labor attraction Strengthened public-private Largely policy-based and retention partnerships to increase skills and productivity as well as interventions to improve management, working conditions and representation of workers Handicrafts Lack of raw materials Support and technical training to Policy-based silk farmers in rural areas; facilitating sustainable partnerships between them and lead weaving firms 32 Mapping the gender dimensions of trade Manufacturing Technical Skills Better design of curricula so as to be Policy-based more relevant to the technical knowl- edge required in key export-oriented sectors Support to firms to undertake on-the- Policy-based job training for female employees Cross-cutting Difficulties The introduction of modern, electronic Requires infrastructure experienced customs clearance systems investment at the border. Incentives for teachers to work and Policy-based but may remain in rural schools require significant budgetary resources Basic skills and Building new schools and improving Requires infrastructure literacy physical access to them investment Improvements to road network Requires infrastructure investment Limited transport Providing the poorest households with Policy-based networks interest-free loan for electricity grid connections Electricity provision Investment in electricity transmission Requires infrastructure network investment 6. Gender and resource exports Mineral extraction and hydropower genera- of electricity generation currently exported. Cur- tion in Lao PDR have sharply increased. In the rent evaluations of this performance all share the last four years, the natural resource sector (includ- view that, while there are considerable benefits to ing mining, quarrying and energy) has become rapid growth in hydropower and mining, there are the largest export sector in the economy, as well also significant risks. Both positive and negative as the fastest growing. The contribution of min- impacts related to natural resources expansion ing and hydro resources to GDP is projected to have gender dimensions and the impacts of the increase from nearly zero in 2000 to more than 25 expansion will depend upon the complementary percent in 2020. Mining and hydro revenues con- policies put in place. stitute now about 20 percent of total revenues, and are expected to reach more than 5 percent In the absence of complementary interven- of GDP a year by 2020 (World Bank Lao PDR De- tions, loss of land, water and forests are evi- velopment Report 2010). The expansion of these dently going to be experienced most severely sectors is largely externally oriented: with some by communities living close to a project. The 90 percent of copper extraction and 70 percent new mining and hydropower projects in Lao PDR Mapping the gender dimensions of trade 33 are set up in remote areas with ethnically diverse ated in social services, such as education and populations who are poorer than average, have health care, and infrastructure improvements, lower literacy, depend on natural resources for such as improved roads. As with the national their survival, suffer from high incidence of stunt- budget as a whole, participation of women in ing and child malnutrition and have limited access decisions regarding the use of additional govern- to health and other services. There is thus a risk ment revenues will be key to ensure that poverty of increased poverty and food insecurity for these reduction and gender equity objectives are met. groups if appropriate mitigation measures are not Revenues from hydropower and mining ought to taken. be spent on poverty reduction and public invest- ment in ways that closely reflect the priorities set Without mitigation measures women in the up by the government in its development pro- affected communities are also likely to bear gram under the 7thNSEDP. The additional resourc- disproportionately the burden of these nega- es should also be channeled towards addressing tive shocks as they own less property than men the constraints identified in the non-resources and rely heavily on common resources as their sectors as it is these sectors where employment main source of livelihood. They usually have the opportunities for both men and women will be main responsibility for the collection of water, wild greatest. Building effective PFM institutions will berries and plants, fish and other wildlife which also help to ensure that increased resources are constitute the bulk of their family’s diet. They do channeled and spent in line with policy priorities. not have any other means to ensure the provision of necessary protein and micronutrients for their A number of innovative benefit sharing ap- children. proaches have also been adopted in Lao PDR to ensure that those local communities direct- Growth in natural resource exports also brings ly affected by mining and hydropower proj- with it the risk of Dutch Disease. Dutch Disease ects are able to share the benefits of natural refers to the phenomenon of increased resource- resource-based projects. Because women are based export earnings negatively impacting upon mostly users of communal goods, but rarely own- manufacturing or other tradable sectors, where ers of individual assets, standard mitigation mea- direct employment opportunities for both men sures which focus only on compensation for lost and women are greater. On average, resource-rich stock and neglect disruptions to livelihood flows, countries have a tradable sector (manufacturing tend to exclude them. This underscores the crucial and agriculture) that is 15 percentage points lower importance of complementing more convention- than other countries(Brahmbhatt, M et al. 2010). al compensation-based approaches with other Macroeconomic impacts of a boom in commodity measures to support new and sustainable sources exports include appreciation in the real exchange of income. A number of different types of benefit rate making exports less competitive and poten- sharing mechanisms have been used in Lao and tial overheating of the economy following rapid internationally and are considered in turn (from expansion of spending by the private and/or pub- Gibson and Carlsson Rex 2010). lic sectors. Fiscal policy is the key mechanism for managing the macroeconomic challenges that a 6.1. Employment and ancillary fast rise in resource based export earnings brings. services The 2010 World Bank Lao PDR Development Re- port gives detailed guidance of how fiscal policy The direct employment generation of mining can be used to mitigate the macroeconomic risks and hydro activities is small and so is the ex- brought by the commodity boom. tent to which jobs created in these sectors are likely to contribute to poverty reduction (Fen- Notwithstanding these risks, managed ef- ton and Lindelow 2010). Currently, only about 0.5 fectively there is considerable opportunity percent of the total Lao labor force is employed in for women and vulnerable groups to benefit mining and energy (data from LECS 4) and women through the national budget from the addition- constitute an even smaller fraction of the workers al revenues that the resource expansion brings in these sectors. through investment of the resources gener- 34 Mapping the gender dimensions of trade Nevertheless, projects often offer preferential vices can help to address many of the constraints employment to residents of affected villages women face in benefitting from trade promotion and project-related employment results in outlined in the previous section: such as skills, ac- cash income and skills development for local cess to information and electricity. In some cases, residents. Two international mining companies affected communities can be provided with pref- operating in Lao PDR, Lang Xang Minerals Ltd at erential access to common resources. An example Sepon and PhuBia Mining Ltd offer preferential of this mechanism being used in Lao PDR is the employment to residents of affected villages and Nam Theun 2 Hydropower Project, which provides adopt progressive employment policies and report resettled villagers with largely exclusive access to that, in 2008, women represented 18 percent and reservoir fisheries for 10 years, and exclusive rights 27 percent of their workforces respectively. How- to forest resources for 70 years. The collective for- ever a marked gender-based vertical segregation estry association is intended to provide resettlers remains, in that women are over-represented in with dividends from timber production, as well as administrative positions and under-represented exclusive access to forest areas for gathering of in operational departments (World Bank Gender non-timber forest products or other purposes. profile forthcoming)8. 6.3. Community Employment can also be provided through development funds ancillary services: those services provided to a project that are not directly related to the Community Development Funds (CDFs) are primary business of the project. These services funds set aside by the company for investment could include transportation and provision of directly benefiting affected communities. In goods (consumables or construction materials), security services, waste collection and disposal, or addition to direct funding benefits, community construction of camp sites or other facilities. To en- members often participate (to varying degrees) in hance the spread of local benefits, project manag- determining how funds will be spent. Best practice ers should engage local service providers and pro- implementation of a community development cure goods from local suppliers. A good example fund can be challenging, in particular as different in Lao PDR is provided by PhuBia Mining’s ‘Locally parties involved in the participatory planning ap- Grown Produce Initiative’ promoted since 2008 in proach often have different views and competing villages affected by the Phu Kham Copper-Gold priorities for how the money should be spent. For and Gold Heap Leach operations. This initiative, example, a project may want the funds used in the which involves a market garden scheme where vil- affected villages, while government authorities lagers grow vegetables to sell to the mine, seems may have other priorities. How such funds affect to have been particularly successful in engaging and providing benefit to women, who constitute gender equality will clearly depend upon the ad- 95 percent of the members participating in the ministration of the funds, pointing to the need for procurement scheme. gender concerns to be factored into the planning approach. 6.2. Preferential rates, services and access CDFs are becoming increasingly common in Lao PDR. Most companies are now including Affected communities can be offered preferen- CDF in the planning of their projects, pre-emp- tial rates, services or access to mitigate social tively responding to WREA’s Decree on Environ- impacts and share project benefits. Examples ment and Social Impact Assessment, which once include offering preferential electricity rates to approved will legislate the requirement for such local residents, allowing residents lower rates to funds. Both Sepon and PhuBia mining programs use services offered by the project (training, medi- implement a community development program cal services, communication networks). Such ser- through a trust fund-type scheme. 8 Alongside large-scale mining, a significant number of people in Lao PDR (UNIDO estimate) are involved in small-scale artisanal mining, much of which is a seasonal supplement to subsistence livelihoods in rural areas. Evidence suggests that women are the vast majority of artisanal miners. They often have limited knowledge of the associated health, safety and environmental risks (e.g. level of mercury exposure) and would greatly benefit from targeted health and safety campaigns combined with the introduction of accessible technology and protective equipment. Mapping the gender dimensions of trade 35 6.4. Public-private partnerships address existing constraints which limit their expansion through trade. “Establishing partnership agreements between developers and local communities is probably In the short-term, the government can work the most innovative form of monetary benefit on a number of policy areas that would make sharing,� according to Egre (2007). He points to it easier for women to access export markets, seven hydroelectric projects as examples (four in including: China, two in Canada, and one in Ecuador) to illus- trate his point. Such public-private ventures en- Strengthening of women’s groups and sup- sure local cooperation, and participation through- port for women’s inclusion and influence in out the entire progress (including a percentage farmer associations and trade unions can be of the economic rent and management input for effective measures for facilitating women’s ecological management). However, even more access to markets. so than other benefit sharing schemes; partner- Government can work with partners to look ships are extremely new and in need of evaluation at ways of making extension services better at some point in the future. Again the impact of tailored to female farmers’ needs, for example such partnerships on gender equality will depend by adopting participatory methods, by fo- upon how gender concerns are factored into spe- cusing on tasks in which female farmers spe- cific agreements. cialize, by increasing the number of female agents, and by using illustrated instructions 7. Conclusions rather than written material, which is easier for people with weak reading skills to under- stand. Promotion of communication technologies The gender-trade mapping exercise under- such as mobile phones can play an important taken points to a number of sectors in the Lao role in supporting disadvantaged producers economy where there is clear potential for and users of goods and services in market ne- women to benefit directly from a more open gotiations without the intervention of power- trade policy if constraints can be addressed. In ful intermediaries. Women are likely to benefit agriculture, the minor processing of vegetables more from ICT services because of their lower (which are largely cultivated by females), or the literacy and mobility. development of fresh and chilled supply chains, would likely lead to significant additional value In the medium term, government, both as an in- creation. The development of more modern rice- vestor and also through mobilizing investment farming practices for rice exports and increased of the private sector and development partners exports of coffee and tea also have considerable can make infrastructural investments. potential for employment creation and poverty reduction for women. In manufacturing, the sec- Better provision of transport networks and tor with the strongest potential for trade-related physical infrastructure including electricity female employment generation is garments, al- and water as well as women-friendly ICT in- though employment is still currently of modest novations are key to ensuring that goods and size in relative terms. The handicrafts sector has services providers reach markets in a timely significant potential to increase the income of manner, and have the additional benefit of rural households, including minority households reducing the heavy housework burden that who have otherwise limited economic options. limits many women’s involvement in income- generating activities. In order that both men and women can increas- Customs automation can significantly con- ingly improve their incomes through trade in tribute to overcoming the difficulties women these labor intensive, non-natural resource tend to experience in border procedures and sectors, stakeholders should work together to save further their time. put in place complementary interventions to 36 Mapping the gender dimensions of trade The private sector also has a vital role in ad- ity will therefore largely depend upon how in- dressing constraints that limit expansion of creased resources are managed and how the trade. benefits of increased revenues are shared. In agriculture, the financial sector has a clear On the government side: role to play in facilitating access to financial Fiscal policy will be key to mitigating the services to address the constraints that farm- potential negative macroeconomic ef- ers face in accessing the credit often neces- fects of natural resource extraction. sary for modernization of farming methods. With the support from development part- Companies may also be able to leverage some ners government should seek to drive for- of their advantages in coming up with inno- ward its agenda to strengthen PFM sys- vative approaches to make extension services tems to ensure that additional resources better tailored to female farmers’ needs. are aligned to the goals of the 7th NSEDP. In the manufacturing sector, the private sec- Some of the increased revenues could be tor would be best placed to advise on current channeled to investing in infrastructure skills gaps. Companies could take a more ac- improvements aimed at addressing con- tive role in advising on curricula for formal straints in the non-natural resources sec- education and vocational training. tors. The private sector, government and existing labor organizations could work in tandem to For the private sector: put plans in place to improve working con- Prospective mining and hydro companies ditions and representation of workers in the should work with government to ensure garments sector. all new natural resource projects meet The existing work being done by the Depart- the standards set out in WREA’s Decree on ment of Trade Promotion and Product Devel- Environment and Social Impact Assess- opment, in collaboration with the World Bank ment. to support technical training of silk farmers in Women’s involvement should be sought rural areas and strengthen linkages with lead at every stage of projects supporting al- weaving firms could serve as a useful model ternative income-generating activities, for the private sector as a means of ensuring from design to implementation. better access to locally-sourced raw materials Benefits sharing mechanisms such as an- for handicraft production. cillary employment services, preferential rates, services and access, community The gender-trade mapping has also highlight- development funds and public private ed that mining and hydropower exports con- partnerships offer women affected by re- stitute a significant and growing proportion source-based projects opportunities for of exports and GDP bringing with it a number new livelihood flows. of potential risks and benefits that will depend upon the complementary policies and benefit All the findings are preliminary and point sharing mechanisms put in place. The capital-in- to the need for the DPs to work with the tensive nature of these sectors means that oppor- Lao PDR government in the development tunities for direct employment for men or women of sounder evidence and more in-depth will be limited. There is also a risk that without pru- studies of specific sectors. In particular ef- dent fiscal policies in place that growth in these forts should focus on: sectors could negatively impact non-natural re- source sectors through Dutch Disease effects. Conducting gender-focused value chain studies of particular products and sectors Increased trade flows in these sectors also to examine with precision where wom- however bring with them significant revenues en and men are in the various segment both to government and the private sector. The of the chain, identify ways to overcome impact of increased trade flows on gender equal- power imbalances that may character- Mapping the gender dimensions of trade 37 ize relations between them, and give full vis- Collecting more information on rural sectors ibility to those areas of women’s work often in particular, focusing more specifically on overlooked in development interventions. how different family members allocate time The rice milling and silk projects currently and resources to various crops and other being implemented with the support of SNV sources of livelihoods, and on their status and in some parts of Lao PDR could constitute a bargaining power within the family farm. The good model for similar analyses and interven- new 2011 Agricultural Census by the Ministry of Agriculture and Forestry is an important tions in other sectors and regions. step in this direction. This effort could be fur- Collecting sex-disaggregated statistics at a ther strengthened by promoting more regu- highly disaggregated level, in a timely man- lar monitoring of key sex-disaggregated indi- ner and at regular intervals (without an under- cators on an annual basis. standing of trends and changes over time, an accurate assessment of gender-differentiated impacts is impossible). 38 Mapping the gender dimensions of trade References Asian Development Bank (2008) ‘A Gender Policy and Strategy in the Agriculture Sector’, Cambodia Ag- riculture Sector Development Program, Asian Development Bank, Manila. Adams, L.(2008) The Socio-Cultural Effect/Impact of Tourism in the Ethnic Villages Along the Trek of Dong PhuVieng National Protected Area, Assessment completed for SNV Ecotourism Programme,Savannakhet Province. Brahmbhatt, M., O. Canuto, and E. 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Mapping the gender dimensions of trade 41 Annex 1: International male and female employment statistics Figure 2: International distribution of total employment by status, by sex, 2009 Male 84.1 5.0 10.1 0.7 OECD Female 89.2 2.1 6.2 2.4 East Asia Male 50.0 1.6 36.7 11.7 Female 42.1 1.5 33.7 22.7 Southeast Male 39.3 3.8 46.4 10.5 Paci c Asia & Female 35.0 1.8 28.9 34.7 Male 25.1 1.8 58.8 14.2 South Asia Female 15.2 0.9 33.0 50.9 Caribbean American Male 61.9 5.8 27.5 4.7 Latin & Female 66.0 2.8 22.5 8.7 Male 58.6 6.2 17.9 17.2 Middle East Female 49.2 1.8 28.7 20.8 Male 28.9 1.5 46.6 23.0 Saharan Africa Sub- Female 15.8 0.6 44.7 38.9 0% 20% 40% 60% 80% 100% Wage and salaried workers Employers Own-account workers Contributing family workers Source: ILO, Trends Econometric Models, November 2009 Figure 3: Average minutes spent per day on unpaid care work by sex, selected countries 350 Housework Person care Community care 306 300 250 225 208 215 200 173 150 100 86 85 68 58 48 48 47 50 33 31 24 29 14 13 10 19 6 12 5 7 4 8 0 4 0 3 0 Argentina India South South Tanzania Argentina India South South Tanzania Korea Africa Korea Africa Male Female Source: Budlender, Debbie, The statistical evidence on care and non-care work across six countries, Geneva, UNRISD 2008 42 Mapping the gender dimensions of trade