72704 Fostering Women’s Economic Empowerment Through Special Economic Zones Comparative Analysis of Eight Countries and Implications for Governments, Zone Authorities and Businesses In Partnership with Canada and the World Bank Group Gender Action Plan THE WORLD BANK Fostering Women’s Economic Empowerment Through Special Economic Zones Comparative Analysis of Eight Countries and Implications for Governments, Zone Authorities and Businesses © 2011 The International Bank for Reconstruction and Development/The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclu- sions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 What are SEZs and Why Focus on Gender Issues in the SEZ Context?. . . . . . . . . . . . . . . . . . . . . . . . 1 Research Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Structure of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Chapter 1: The Case for Promoting Women’s Economic Empowerment in SEZs . . . . . . . . . . . 7 I.   Socioeconomic Returns for the Host Country . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 II.  Economic Returns for Zone Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 III.  Economic Returns for Investors: Benefits for Company Bottom Line . . . . . . . . . . . . . . . . . . . . . 11 IV.  Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Chapter 2: Obstacles and Enablers of Women’s Economic Participation in Zones: Comparative Analysis of Focus Countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section1: Effect of Legal Rights and their Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Section 2: Social and Cultural Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Section 3: Poor Investment Climate and Lack of Business Support Services . . . . . . . . . . . . . . 41 Chapter 3: Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 I.   Creating a Legal, Regulatory and Policy Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 II.   Strengthening Enforcement of Policies and Ensuring Compliance by Investors . . . . . . . . . . . . . 50 III.  Providing Improved Services and Facilitating Capacity Building . . . . . . . . . . . . . . . . . . . . . . . . . 52 Chapter 4: Implementation Tools: Stakeholder Engagement, Monitoring and Evaluation Frameworks . . . . . . . . . . . . . . . . . . . . . 57 I.   Stakeholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 II.  Monitoring and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 iv Fostering Women’s Economic Empowerment through Special Economic Zones Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Bangladesh. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 China. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Costa Rica. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Egypt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 El Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Jordan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Kenya. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Annex A: Interviewees Annex B: Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Acknowledgments T his book has been produced by a team led Thoughtful comments and suggestions enhanced by Sevi Simavi of the Women in Business the overall quality of this publication. Individual Program, IFC. The core team was comprised chapters were refereed by a panel of experts com- of Narissa Haider, Martin Norman, and Gokhan prising Thomas Farole (World Bank), Ganesh Akinci of IFC, as well as Ayesha Barenblat, Alison Rasagam (World Bank), Tara Holeman (IFC) Colwell, Betsy Fargo Mell, Ryan Flaherty, Racheal and Naoko Otobe (ILO). In addition, the authors Yeager, Helen Zhang, Zheng He of Business for gratefully acknowledge the invaluable comments Social Responsibility (BSR). Pei Bin, Faris Natour, received from industry and NGO representa- Celine Suarez, Stephanie Tan, Jennifer Schappert tives which included Carrefour, Gap, H&M, Jabil, (all BSR) and Narissa Haider (IFC), Andrea KappAhl, Levi Strauss, Li & Fung, Lindex, Marks Erdmann (SEZ Specialist) have contributed to the & Spencer, Nike, St. John’s Medical College of select chapters and country case studies. The team Bangalore, Tesco and Wal-Mart. gratefully acknowledges Monika Weber-Fahr, Cecilia Sager and Sumit Manchanda of the World The publication of this book was made possible by Bank Group for their intellectual contributions to the generous support of the World Bank Group the overall design of the study and for their guid- Gender Action Plan and Canadian International ance throughout the process. Development Agency. Foreword W omen are a powerful economic force. zone and enterprise competitiveness in developing For a country’s growth, they make im- countries. This report—“Fostering Women’s Eco- portant contributions as entrepreneurs nomic Empowerment Through Special Economic and employees. And they support development Zones�—summarizes their findings. more broadly, through the care and attention they bring to the welfare of their families. Studies show What is interesting: Most successful economic that opening economic options for women puts zone management approaches that also support poverty reduction on a faster track. Special Eco- women economic empowerment operate along nomic Zones—geographical regions with special three dimensions—fair employment and work- regulatory and legal regimes that aim to increase ing conditions for female employees, equal access domestic and foreign direct investment —offer to opportunities for professional advancement, an opportunity for countries to embark on such and investment opportunities for female entre- a path. preneurs. The report presents an excellent com- pendium of policies and practices, ranging from But how? Our teams have looked across the globe, laws, regulations, labor policies, gender-sensitive analyzing the influence special economic zones professional development programs, family sup- (SEZs) can have on promoting women’s economic port mechanisms and women’s health programs, empowerment while at the same time boosting through to supplier diversity and capacity-building viii Fostering Women’s Economic Empowerment through Special Economic Zones initiatives. Based on research from eight countries between better gender-adjusted labor practices around the world, we are sure you will find practi- and their performance. The experiences presented cal insights and recommendations here that also fit in this report will provide valuable lessons for us your situation! in systematically creating win-win options, open- ing up economic opportunities for women entre- The World Bank Group is committed to reducing preneurs and women employees that also result in gender based barriers in development, and with re- growing investments and more competitive indus- gard to our engagement with the private sector we tries. The report is the product of a two-year col- focus on investment climates, helping governments laboration between staff in the World Bank’s Fi- understand the gender dimensions of business re- nancial and Private Sector Development group and form and growth, and on firm-specific approaches, IFC’s Women in Business Team. We are grateful such as working with financial institutions on in- for the support and funding from the Canadian In- creasing access to finance for women entrepreneurs, ternational Development Agency (CIDA) which or with firms on understanding the relationship has made this important effort possible. Sujata Lamba Monika Weber-Fahr   Director Global Business Line Leader Competitive Industries Practice Sustainable Business Advisory Financial and Private Sector Development Advisory Services World Bank International Finance Corporation Executive Summary T his report summarizes findings from global the first entry into formal-sector employment, and, research that examined the opportunity for as such, they offer a unique opportunity to empower special economic zones (SEZs) to promote women by providing economic opportunity outside women’s economic empowerment and boost zone of the informal sector. In addition, this study posits and enterprise competitiveness in developing that zone regulatory environments and infrastruc- countries. ture, by serving as “demonstration areas� or catalysts for countrywide reforms, present unique opportu- It focuses on women’s economic empowerment in nities to address the challenges faced by women in the context of zones at three levels: (1) fair employ- the workplace and female entrepreneurs. ment and working conditions for female employees, (2) equal access to opportunities for professional Nongovernmental organizations (NGOs), con- advancement, and (3) investment opportunities for sumer groups, and international organizations female entrepreneurs. The objective of the study was often denounce SEZs and attribute to them to identify gender-friendly policies and practices harsh labor conditions in which women tend to that support these three main goals. The primary be disproportionately disadvantaged compared research included field visits to Bangladesh, Chi- to men, and unions and collective bargaining na, Costa Rica, Egypt, El Salvador, Jordan, Kenya, tend to be prohibited. Typically, women work in and the Philippines. These were augmented with low-skilled, labor-intensive positions in export- an extensive review of country-specific research oriented sectors. Capital investments and tech- and globally focused research reports. Policies and nological upgrading are expected to replace such practices identified included laws, regulations, labor production work by reducing or mechanizing job policies, gender-sensitive professional development types now dominated by women.2 As a result, programs, family support mechanisms and women’s some predict that zones will experience a “de- health programs, and supplier diversity and capaci- feminization� since new, higher-skilled jobs will ty-building initiatives. SEZs were chosen as a focus for this study because they are known to be significant employers of fe- 1 International Labour Organization, Report of the InFocus Initiative on export processing zones: Latest trends and pol- male workers: Women average 60–80 percent of the icy developments in EPZs, 2008; White, Marceline, “Why total workforce in zones, reaching up to 90 percent Trade is a Women’s Issue.� Women’s EDGE: August of zone employment in certain countries.1 For many 2000. women in developing countries, zones often provide 2 Ibid. x Fostering Women’s Economic Empowerment through Special Economic Zones be deemed better filled by men because of gender economic participation by women, currently under- stereotyping.3 represented in the formal labor force in the major- ity of developing countries, can contribute to overall While these issues are well documented in the lit- economic growth. When women are free to seek an erature, no recommendations are offered to tackle education or work outside the home, they become the problem from a business perspective. There is more able to contribute to their own development little awareness of the business case for creating and that of their families, communities, and societ- better environments for women in zones, such as ies. In particular, greater gender equality in educa- reduced risk, decreased absenteeism and turnover, tion and income can enhance a woman’s decision- increased worker satisfaction, and improved pro- making power within the household, which may ductivity and profitability. Building an evidence- increase the allocation of income to family health, based business case is expected to help increase the nutrition, and children’s education.4 When men and willingness of zones and businesses within them women are able to take up jobs and occupations ac- to invest more in their workers, and particularly in cording to their ability and preference rather than their female workers. This study identifies global gender norms, aggregate productivity may increase. good practices for women’s economic participation And when countries are able to mobilize the equal and advancement and defines a practical approach participation of men and women in social and po- to design, promote, and implement gender-inclu- litical life, governments and policy-making bodies sive SEZs across the globe. are likely to gain in diversity of views and voices. Finally, women entrepreneurs are more likely to The study provides background, evidence of chal- generate jobs for other women in the community lenges and success stories drawn from the coun- and create cascading social and economic benefits tries where research was conducted, comprehen- of gender inclusion in the workplace.5 sive recommendations, and a suite of tools and tips to implement the recommendations suc- At the zone level, gender-inclusive policies and cessfully. As such, that this study aims to provide programs can deliver business benefits by target- the necessary information and resources to help ing the most significant demographic of most governments, zones, and individual businesses zone workforces. A steady supply of cheap fe- promote women’s economic empowerment more male labor has contributed to the development effectively in the future. of competitive export-oriented industries in some countries. From a competitiveness perspective, a development strategy based on export industries Economic, Social, and Business and cheap labor cannot be sustainable and coun- Benefits to Promoting Women’s tries who implement a long-term strategy to in- Economic Empowerment crease the technological content of their exports and move up the supply-chain ladder will achieve The economic and social case for governments, longer-term development gains that ideally are zones, and enterprises to create and enforce poli- spread more equally among the population. How- cies and implement programs that support work- ever, because of the concentration of low-wage ing women and female entrepreneurs is presented in Chapter 1. Investments in women’s economic empowerment can deliver significant returns at all 3 Ibid. levels. 4 Blumberg, “Income under Female Versus Male Control,� Journal of Family Issues, 9(1), 1988; Desai and Johnson, “Women’s Decision-Making and Child Health: Famil- At the national level, empowering women through ial and Social Hierarchies,� Commissioned by the Mea- SEZs can have significant impacts on economic sure DHS project in Calverton, Maryland, 2005. development and poverty reduction. Enhanced 5 Simavi et al., 2010. Executive Summary xi female workers in capital- and/or skill-intensive circumstances of and opportunities available to fe- industries, industry upgrading by these countries male workers. will necessarily result in large-scale job loss, with disproportionate impacts on women. As such, Section 1 focuses on the effect of legal rights and retention and skill upgrading of female workers their enforcement on women’s entry, retention, and in zones at all stages of the upgrade process will mobility within SEZ workforces. The legal rights limit negative impact and ensure that the socio- examined are contained in international labor stan- economic gains of women’s employment and em- dards and human rights conventions and in national powerment are maintained. In addition, zones labor laws, as well as in additional or separate regu- that provide, support, or encourage enterprises lations created specifically for zones themselves. to adopt women-friendly programs and policies International conventions protect rights such as can market those efforts as unique and additional freedom of association, the right to organize, equal benefits to businesses that locate within them. remuneration, abolition of forced labor, nondis- Specific business benefits may include enhanced crimination, elimination of the worst forms of child legal protection and investor compliance through labor, and maternity protection; national legal pro- fair and equal employment, attraction of investors visions include, for example, maternity leave, work- by a skilled and stable female labor force, and en- place child care, nursing leave, and laws prohibiting hanced reputation among investors and their in- pregnancy testing and sexual harassment. ternational clients. The countries studied have not all ratified these Individual businesses operating in the zone can international conventions and do not all provide also experience economic benefits from investing these legal protections on a national level. There- in their female employees and creating women- fore, the first recommendation is to create laws friendly work environments. Benefits to individual to protect women and promote their economic enterprises can include reduced absenteeism and empowerment where these laws do not yet exist. turnover, increased productivity, enhanced worker However, in many cases, laws designed to “protect� loyalty, improved legal compliance and risk mitiga- women have unintended negative consequences, tion, and improved worker-management commu- and poor enforcement of laws is a shared challenge nication. Furthermore, according to recent studies, across all of the countries. To support the effective- companies that invest in women’s employment in ness of any law protecting women’s equality and the developing world enjoy improved profits, com- empowerment, the study recommends improving petitive advantage, and performance benefits.6, 7 methods of monitoring, such as gender-equity cer- tification systems and grievance mechanisms, and increasing women workers’ voice by engaging them Overcoming Barriers to Women’s more effectively on rights awareness and their abil- Economic Empowerment in SEZs ity to communicate about rights violations. Chapter 2 discuss several factors common to the Section 2 identifies social and cultural factors eight countries studied that can act as obstacles to affecting women’s entry into the workforce and or enablers of women’s economic empowerment. their welfare, retention, and mobility within The issues discussed in these chapters do not all relate only to female employees, and some of the good-practice enablers introduced are gender- 6 McKinsey, “The business of empowering women�, Jan- uary 2010. neutral. Likewise, many of the challenges intro- 7 Siegel, Jordan, “Multinational Firms, Labor Market duced apply to circumstances both within and be- Discrimination, and the Capture of Competitive Ad- yond SEZs. The premise of this study is that SEZs vantage by Exploiting the Social Divide�, Harvard present a unique location in which to improve the Business School, 2010. xii Fostering Women’s Economic Empowerment through Special Economic Zones SEZs. First, cultural norms and expectations tries where their access to land is constrained by about a woman’s role in society may limit women’s legal restrictions on land ownership and leasing, opportunities to gain formal employment and ad- inheritance laws, mortgage laws, customary laws, vancement. Women’s advancement is also often or other administrative barriers. There is increas- constrained by limited access to education and ing evidence that such legal and cultural limita- to training on basic life skills as well as techni- tions and administrative requirements also make cal job skills. Additionally, female factory work- it more difficult for women to start and operate ers are vulnerable to a myriad of health issues, their businesses in the formal economy. Growing exacerbated by a lack of health awareness and a existing businesses, and in particular expanding lack of access to health services. Lack of access to local and domestic businesses to be export-facing, quality and affordable child care is another major requires business support services, such as training concern for women in zone workforces. Finally, on business skills, management, and market iden- female workers in zones face several challenges tification, that are unavailable to the majority of related to their living conditions, including poor female entrepreneurs. Finally, access to finance for quality of accommodations and basic services, business start-up and operations is a major issue excessive distance between home and workplace, globally for women entrepreneurs. and unavailability of safe and reliable transporta- tion to and from work. The recommendations for removing these barriers begin with enacting laws and regulations that give To overcome sociocultural barriers, stakeholders women and men equal access to land and stream- can conduct community outreach to encourage lining administrative barriers within SEZ laws and women’s employment in zones. Lack of access regulations. SEZ operators can also adopt gender- to education and skills training can be addressed equality policies and guidelines to cultivate both through investment in education that targets girls female and male business owners and can initiate and in training programs that target women as supplier diversity programs to incentivize exist- beneficiaries. Training on basic life skills can help ing zone enterprises to source from local women- improve the work environment and female work- owned businesses. Stakeholders in the public and ers’ job performance and prepare women for pro- private sectors and NGOs can provide business fessional advancement opportunities more effec- support services via linkages to training programs, tively. Workers’ advancement can also be boosted networks, and centers targeting female entrepre- through the creation of policies and training pro- neurs. Lack of access to finance can be addressed grams to support promotion from within. Busi- through collaborations among zone authorities, nesses can reduce absenteeism and turnover and banks, microfinance institutions, and women’s increase productivity by providing health edu- entrepreneur groups. In addition, existing banks cation, women’s health services, and child care within zones can develop gender-equitable service either within the workplace or on a zone-wide offerings, such as loans available to women. basis. Zones can also organize safe and reliable transportation for workers between their homes and the workplace, or even allow factories to be Key Recommendations located directly in the rural areas where zone workers live. Chapter 3 presents the study’s main recommen- dations for policies and programs to promote Section 3 identifies barriers related to a poor women’s economic advancement in SEZs. Policy investment climate for facilitating women’s en- framework and enforcement recommendations trepreneurship and the lack of business support are left broad to allow for country-specific modi- services. Women are hindered from accumulat- fications. Services and capacity-building recom- ing assets and growing their businesses in coun- mendations are more specific, with the assump- Executive Summary xiii tion that they will be undertaken based on needs Tools for Implementation identified in a baseline assessment of the targeted zone population. The recommendations fall into Chapter 4 provides a framework for stakeholder three categories: engagement and implementation tools for moni- toring and evaluation of the study’s recommended MM Creating a legal, regulatory, and policy frame- policies and programs. work that advances women’s employment and investment opportunities An initiative is more likely to be successful and XX Create laws to enable women’s full econom- sustainable if key stakeholders support it from ic participation the beginning, feel a sense of ownership from the XX Create policies to support female entrepre- design phrase through implementation, and have neurs’ access to zones, as either investors, opportunities to participate in, and ideally assume suppliers, or small-business owners responsibility for, implementing its components. XX Improve collaboration between national committees or ministries of women or gen- Stakeholder engagement is particularly important der and ministry of labor for initiatives aimed at increasing women’s eco- MM Strengthening enforcement of gender-relevant nomic participation; women workers’ and entre- laws and policies and ensuring compliance by preneurs’ needs are different, more nuanced, and investors more interrelated than those of men, yet the mar- XX Ensure efficacious enforcement of gender- ginalization of their voices in politics, industry, and relevant laws, and train gender-sensitive en- even in the leadership of workers’ organizations forcement officers such as unions or worker committees means these XX Comply with legal requirements pertaining needs are neither identified nor met. to female workers’ labor rights and basic hu- man rights The chapter identifies priorities and roles for a XX Establish national or zone-level grievance number of key stakeholder groups, including zone mechanism specially targeted to women regulators or authorities, zone operators, enterprise XX Create or support the creation of women’s owners and operational managers, international committees at zone and enterprise levels clients, worker organizations, relevant government XX Conduct a gender diagnostic to assess wom- ministries, technical experts such as NGOs and en’s economic participation as investors and multilateral organizations, and other people and workers in zone program organizations that may have interests or expertise MM Providing improved infrastructure for services pertaining to the implementation of specific rec- and facilitating capacity building ommendations. A diagram illustrates the key steps XX Create zone-level social services to ben- to stakeholder engagement. efit women, such as hospitals, child care, schools, transportation, and housing Measuring the impacts of programs and policies XX Promote female workers’ health and well- on individuals, business entities, and national com- being through education, factory meals, and petitiveness is challenging, but critical for sustain- health services ability. Demonstrating impact, in terms of both XX Help female workers grow financial assets social development benefits as well as competitive- through direct wage deposit and financial ness, helps maintain funding from both private and literacy programs public sources. The chapter identifies key economic XX Promote women’s skills development indicators to be monitored and evaluated at the lev- through vocational training program els of enterprise (e.g., absenteeism, turnover rate), XX Support female entrepreneurs through ac- zone (e.g., zone occupancy rate, profitability), and cess and training programs government (e.g., poverty levels, unemployment xiv Fostering Women’s Economic Empowerment through Special Economic Zones rate). The chapter also identifies specific indicators and data-collection processes to minimize the re- for measuring progress in the three key focus areas sources required to conduct this important task and described in Chapter 5. The metrics included are to align with existing processes to improve overall short-term outputs, medium-term outcomes, and management systems. Integrated measurement of long-term impacts. Outputs and outcomes can be both business and social indicators can help demon- measured primarily at the enterprise and zone lev- strate the strategic nature of investments in women els, while impacts are the results that emerge at the more quantitatively, and should be employed in all national level. programs and policies targeting women in order to maximize both benefits and sustainability. Whenever possible, metrics should disaggregate data by gender. Monitoring and evaluation of ini- The study concludes with country case studies and tiatives to promote women’s economic opportuni- a comprehensive list of interviewees, a bibliogra- ties should also build on existing evaluation systems phy, and references. Introduction T his study summarizes findings from a global What are SEZs and Why Focus on research initiative that examined the oppor- Gender Issues in the SEZ Context? tunity for special economic zones (SEZs)8 to promote women’s economic empowerment and A special economic zone (SEZ) is a geographical boost zone and enterprise competitiveness in de- region or serviced industrial land with good con- veloping countries. The study focuses on women’s nectivity and infrastructure, governed by a com- economic empowerment in the context of zones at prehensive and integrated set of economic laws three levels: (i) fair employment and working con- and regulations compatible with the World Trade ditions for female employees; (ii) equal access to Organization (WTO) and other free-trade agree- opportunities for professional advancement; and ments. Foreign and domestic investors lease land (iii) investment opportunities for female entre- from the SEZ authority, which may be a public preneurs. The study also examines gender-friendly or private entity, to set up businesses within the policies and practices that support these three main SEZ and take advantage of tax and other incen- goals, which include a wide range of options around tive programs. Goods produced in SEZs are often, laws, regulations, labor policies, gender-sensitive but not always, designated for export. Common professional development programs, family sup- enterprise types in SEZs include light and heavy port mechanisms, women’s health programs, and manufacturing, data and call centers, food process- supplier diversity and capacity-building initiatives. ing, research and technology, chemical industries, logistics and maritime services, and others. Some This study establishes the business case for invest- zones have also developed into high-tech parks, ments in women’s economic empowerment in tourist centers, or sites for high-level financial and SEZs, and identifies good-practice examples of recommended “enablers� to address this invest- ment opportunity. Enablers are defined as efforts to counteract the negative impact of the obstacles “Special economic zone� (SEZ) refers to any economic 8 women face in economic participation, and can zone with a portion of goods intended or required for include policies and programs at the government, export. SEZs can also be referred to as export pro- cessing zones (EPZ), free trade zones (FTZ), and zone, and enterprise level. The study provides back- qualified industrial zones (QIZ). This study will use ground, evidence of challenges and success stories, the terms “SEZ� and “zone� throughout. Specific zone comprehensive recommendations, and a suite of terms will be used in reference to specific country zone tools and tips to implement the recommendations regimes, which may be categorized as one type of zone successfully. or another. 2 Fostering Women’s Economic Empowerment through Special Economic Zones logistics coordination or scientific research. Many MM Excessive overtime; and enterprises doing business within SEZs are tied MM Health and safety violations. to global businesses, whether by providing out- sourced services or manufacturing goods for ex- Many of these challenges are not unique to zones, port. Within this context, additional important and in some countries, conditions within SEZs are stakeholders in the economic viability of SEZs markedly better than outside. However, just as fre- are international companies who buy products or quently, conditions within zones are documented services located in SEZs. as being worse than those outside zones, and criti- cism generally ties that discrepancy to the prohi- SEZs were mainly selected as a focus of this study bition of unions and workers’ right to organize because they are known to be significant employ- within zones.12 ers of female workers: Women average 60–80 per- cent of the total workforce in zones, reaching up to Despite the considerable impact of SEZs on in- 90 percent of zone employment in certain coun- creased employment opportunities for women in tries,9 while, in contrast, women’s average partici- export-oriented sectors, women are often concen- pation in the global labor force is 52 percent.10 For trated in specific sectors and types of jobs. Typically, many women in developing countries, zones often women tend to work in low-skilled, labor-intensive provide the first entry into formal-sector employ- positions, such as assembly work in garment and ment and, as such, offer a unique opportunity to electronics manufacturing facilities. empower women by providing economic opportu- nity outside of the informal sector. For developing countries, SEZs are argued to be 9 International Labour Organization, Report of the In- effective tools within an economic growth strategy Focus Initiative on export processing zones: Latest trends to enhance industry competitiveness and attract and policy developments in EPZs, 2008; Milberg, Wil- liam and Matthew Amengual, “Economic development foreign direct investment (FDI). At a public policy and working conditions in export processing zones: A level, SEZs provide an opportunity to pilot and survey of trends�, ILO 2008; White, Marceline, “Why promote countrywide reforms by serving as “dem- Trade is a Women’s Issue.� Women’s EDGE: August onstration areas� or catalysts. This study posits that 2000. zone regulatory environments and infrastructure 10 ILO, “Global Employment Trends for Women�, March present unique opportunities to address the chal- 2008. 11 Perman, Sarah et al, “Behind the Brand Names: Work- lenges faced by women in the workplace and fe- ing Conditions and Labour Rights in Export Pro- male entrepreneurs, and to realize economic ben- cessing Zones�, ICFTU, 2004; International Labour efits by making policy and program investments to Organization, Report of the InFocus Initiative on export empower women. processing zones: Latest trends and policy developments in EPZs, 2008. 12 International Labour Organization, Report of the InFo- Nongovernmental organizations (NGOs), con- cus Initiative on export processing zones: Latest trends and sumer groups, and international organizations of- policy developments in EPZs, 2008; Perman, Sarah et al., ten denounce SEZs and attribute to them harsh “Behind the Brand Names: Working Conditions and labor conditions in which women tend to be dis- Labour Rights in Export Processing Zones�, ICFTU, proportionately disadvantaged compared to men. 2004; Lang, Andrew, “Trade Agreements, Business and Studies have demonstrated the negative aspects of Human Rights: The case of export processing zones�, zone employment, including: London School of Economics, Working Paper No. 57, April 2010; Murayama, Mayumi and Nobuko Yokota, “Revisiting Labour and Gender Issues in Export Pro- MM Restricted or prohibited freedom of association; cessing Zones: The Cases of South Korea, Bangladesh MM Gender discrimination in wages;11 and India�, October 2008; Sudwind Institute, “Women MM Wages below living wage; Working in the Shadows�, 2010. Introduction 3 It is further argued that women’s employment in could make it easier for companies to support SEZs will not be sustainable in the long run, as gender-relevant initiatives, services, and regu- capital investments and technological upgrading lations if operating within a zone with gender- will affect the nature of the jobs in the zones. Spe- friendly programs in place. cifically, such upgrading is expected to replace la- MM SEZs are not a loose cluster of companies; bor-intensive, low-skilled production by reducing rather they have a management entity dedicat- or mechanizing job types formerly dominated by ed to their operation that convenes meetings women.13 As a result, some predict that zones will of all the tenants on a regular basis. This makes experience a “defeminization� as the proportion anchoring gender-specific initiatives to zone of men to women shifts since new, higher-skilled management highly viable. jobs will be deemed better filled by men because MM Zone operators can play a role in overseeing of gender stereotyping.14 If this predicted “defemi- the implementation of gender policies and pro- nization� occurs, it will impose development costs grams, and supporting or requiring enterprise on countries and productivity costs on companies. uptake of those policies and programs. MM Zone authorities can have more capacity than While these issues are well documented in the lit- national governments to regulate compliance erature, however, no enablers are offered to tackle with gender policies and programs, particularly the problem. In addition, arguments for women’s in countries where regulatory enforcement is economic advancement in zones remain largely generally weak at the national level. rights-based and there is little awareness of the MM Incentives for companies to comply with social business case for creating better environments for standards are much higher, as companies op- women in zones, such as reduced risk, decreased erating in the zones face greater peer pressure absenteeism and turnover, increased worker satis- from their competitors as well as from inter- faction, and improved productivity and profitability. national buyers who are particularly stringent Building an evidence-based business case will help about standards of their suppliers located in the increase the willingness of zones and businesses zones. within them to invest more in their workers, and MM Best practices in one zone can be isolated and particularly in their female workers. As such, this replicated in other zones around the world be- study examines gender issues within SEZs from a cause of structural similarities of zones. business and economic development perspective and offers win-win solutions that can benefit firms, To support the above objectives, this study iden- employees, and host countries. tifies global good practices for women’s economic participation and advancement and defines a prac- The study argues that several unique qualities of tical approach to design, promote, and imple- zones provide an opportunity to address rights- ment inclusive SEZs across the globe. It should based challenges and make zones a strategic en- be noted that the research itself uncovers relatively vironment for targeting female workers through few examples of good practice targeting women in policies and good practices in the zones and the SEZs specifically. However, in addition to a small workplace. Relevant opportunities within zones amount of relevant replicable practices available in include the following: zones, the study also finds and draws on other use- ful programs implemented outside of SEZs that MM Gender-friendly reforms can be piloted and could be replicated within zones. tested in zones, which may not be feasible to do in the broader country context. 13 International Labour Organization, Report of the InFo- MM Existing zone infrastructure and access to fi- cus Initiative on export processing zones: Latest trends and nancial and government services enables com- policy developments in EPZs, 2008. panies to “plug-and-play�; by extension, this 14 Ibid. 4 Fostering Women’s Economic Empowerment through Special Economic Zones Research Methodology two main zones in Bangladesh. The sample con- sisted of 395 workers, 208 female and 187 male. The study includes first-hand observations from Using a standardized interview tool and facilitat- field visits to zones in eight countries: Bangladesh, ed workshops, BEPZA counselors conducted 41 China, Costa Rica, Egypt, El Salvador, Jordan, Ke- group interviews. At least 2 women and 2 men nya, and the Philippines. The study also includes were included in each facility interview. Thirteen interviews of global stakeholder organizations and factories were randomly selected for detailed gen- a desk-based literature review. der reports by counselors, representing 7 garment, 2 ladies’ undergarment, 2 tent, 1 pant (flat-knit), Countries were selected based on several factors to and 1 t-shirt (flat-knit) manufacturing facilities. ensure a diverse sample. Considerations included: Of factories surveyed, the average size was about 2,000 workers with approximately 62 percent MM Zone program in the country—including pro- women and 38 percent men. According to BEP- gram maturity, commercial success, planned ZA data, women represent 66 percent of workers growth, foreign vs. domestic ownership and in Chittagong EPZ and 54 percent of workers in key industries; Dhaka EPZ. MM Region; MM Economy (based on GDP); and The survey and factory interviews allowed for a MM Potential for impact (e.g., significant percent- quantitative, structured assessment of the unique age of workers are women). challenges and opportunities for female workers in zones in Bangladesh. These activities were only A total of 172 one-on-one and group interviews conducted in Bangladesh; fieldwork in all other were conducted with representatives of civil so- countries relied on anecdotal accounts from work- ciety, worker organizations, government, private er interviews, local and global NGOs, and other sector (including international buyers and factory stakeholders. managers), and zone management. In addition, the study recognized that a significant The study includes an in-depth focus on Bangla- body of literature already existed on women’s eco- desh, which entailed working with the Bangladesh nomic participation in zones, the positive impact Export Processing Zone Authority (BEPZA) of women’s economic participation on develop- counselors to distribute a survey to workers in a ment, and the benefits of zones to economic devel- random sample of factories operating within the opment. Primary research was augmented with an TABLE 1  ■  Stakeholder Interviews Stakeholder Type Number Objective of Engagement Government 28 Identify government priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Zone Authorities 15 Identify zone priorities, existing programs, regulatory system, and potential role in the solution. Private Sector 53 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or po- tential future programs or policies. Worker Organizations 11 Identify workplace issues unique to women, challenges to their resolution, and recommendations for the private sector. Civil Society 65 Determine challenges facing women at work and at home, and learn about programs and policies in the region to address those challenges. Introduction 5 extensive review of country-specific research and Based on the findings presented in Chapter 2, globally focused research reports. Chapter 3 presents three sets of recommendations for legal and regulatory frameworks and their en- forcement, strengthening of provision of zone- Structure of the Study wide services, and capacity building. The chapter emphasizes the need for public-private partner- The study begins with the social, business, and eco- ships, identifies government, zone authorities, and nomic case for women’s economic advancement investors as key stakeholders, and discusses each in Chapter 1. Chapter 2, identifies key legal and stakeholders’ role in implementation. Chapter 4 regulatory issues, social and cultural constraints, offers implementation tools that include a moni- investment climate issues, and the lack of business toring and evaluation framework to measure the support services affecting women’s economic par- progress made based on the recommendations of ticipation. Also in Chapter 2, the study argues that Chapter 3 and tips for effective stakeholder en- the obstacles can be as addressed through enablers gagement. for women’s economic participation in zones. Chapter 1: The Case for Promoting Women’s Economic Empowerment in SEZs T his chapter presents the economic and social women’s economic empowerment by increasing case for governments, zones, and enterprises and improving formal employment opportunities, to create and enforce policies and implement providing women with higher income levels than programs that support working women and female afforded outside zones, and supporting women’s entrepreneurs. economic independence. Related economic re- turns at the national, zone, and enterprise level are SEZs often employ a higher percentage of women explained in detail below. than the national average, even where there are relatively low levels of female labor force partici- pation nationally. While women’s unemployment Socioeconomic Returns for the I.  tends to be higher than men’s in the majority of Host Country the countries included in this study, for example, female labor force participation is equal or higher Increasing women’s economic empowerment in in zones than outside of zones. This demonstrates SEZs can have significant impacts on economic the opportunity that zones represent for women’s development and poverty reduction. Enhanced employment, particularly in countries where for- economic participation by women, currently un- mal employment opportunities for women are derrepresented in the formal labor force in the otherwise rare, such as Jordan and Kenya. In- majority of developing countries, can contribute to creased employment opportunities for women, overall economic growth. When women are free such as those provided in SEZs, can contribute to to seek an education or work outside the home, significant socioeconomic benefits. they become more able to contribute to their own development and that of their families, commu- Investing in women yields positive returns for the nities, and societies. In particular, greater gender society, for the host country, and for the zone itself equality in education and income can enhance as well as for the bottom line of the business op- a woman’s decision-making power within the erating in the zone. However, in the absence of a household. When men and women are able to gender-inclusive view of policies, procedures, and take up jobs and occupations according to their initiatives, broad developmental objectives will be ability and preference rather than gender norms, compromised and the full potential of trade for aggregate productivity may increase. And when export performance and competitiveness, growth, countries are able to mobilize the equal participa- and poverty reduction will not be realized. This tion of men and women in social and political life, study argues that SEZs can be used to promote governments and policy-making bodies are likely 8 Fostering Women’s Economic Empowerment through Special Economic Zones to gain in diversity of views and voices. Finally, incentives for educating girls are improved as a women entrepreneurs are more likely to generate result.19 Despite these advances, however, a con- jobs for other women in the community and create cern remains that while SEZs have been effective cascading social and economic benefits of gender in creating formal employment opportunities in inclusion in the workplace.15 women’s- labor-intensive industries, these em- ployment opportunities may not represent decent As women’s incomes rise and they expand their control over household spending decisions, their 15 Simavi et al., 2010. allocation of household resources differs that of 16 Blumberg, “Income under Female Versus Male Con- from men. Studies have demonstrated, for example, trol,� Journal of Family Issues, 9(1), 1988; Desai and that women dedicate higher monetary amounts to Johnson, “Women’s Decision-Making and Child family health and nutrition, and to children’s edu- Health: Familial and Social Hierarchies,� Commis- cation.16 Over the longer term, such shifts may re- sioned by the Measure DHS project in Calverton, Maryland, 2005. duce infant, maternal, and overall mortality rates. 17 See, for example, Stephen Knowles, Paula Lorgelly, and Therefore, increasing women’s economic empower- P. Dorian Owen, “Are Educational Gender Gaps a Brake ment in SEZs, by reducing undernourishment in on Economic Development? Some Cross-Country Em- children, will help decrease chronic infant sickness, pirical Evidence,� Oxford Economic Papers 54 (1): 118–49; stunting, and impaired social and cognitive devel- S. Klasen and F. Lamanna, “The Impact of Gender In- opment. These shifts can contribute to a long-run equality in Education and Employment on Economic Growth in Developing Countries,� Feminist Economics macroeconomic effect by improving human capital 15 (3): 91–132; B. Esteve-Volart, “Gender Discrimina- and thus the labor productivity of a society.17 tion and Growth: Theory and Evidence from India,� 1–68; A. Boschini, “The Impact of Gender Stereotypes on Economic Growth� (Department of Economics, Uni- Economic Returns for Zone II.  versity of Stockholm, 2003); T. Cavalcanti and J. Tavares, Authority “The Output Cost of Gender Discrimination: A Model- Based Macroeconomic Estimate� (Universidade Nova de Lisboa and Center for Economic Policy Research, A steady supply of cheap female labor has con- 2007). Matthias Busse and Peter Nunnenkamp, “Gen- tributed to the development of competitive ex- der disparity in education and international competition port-oriented industries in some countries. At the for foreign direct investment.� Feminist Economics 15 (3): same time, employment in SEZs has increased 61–90. Some skepticism remains about the reliability of women’s income-earning opportunities, often results from cross-country growth regressions, in part due to concern about simultaneity problems (between gross representing a significant improvement compared domestic product growth and gender equality). Two with earlier limited options such as unpaid fam- studies that address this problem, using 3SLS estimation ily work, poorly paid work in the informal sector, techniques, are Baliamoune-Lutz, “Globalisation and or subsistence farming in rural areas. In addition Gender Inequality: Is Africa Different?� Journal of Afri- to providing higher levels of income, employ- can Economies 16 (2): 301–348; and Stephanie Seguino ment in the export-oriented formal sector gives and James Lovinsky, “The Impact of Religiosity on Gen- der Attitudes and Outcomes� (UNRISD, 2009). Results women a higher status, more autonomy, and some from macroeconomic research on gender and growth, decision-making powers within their households. surveyed in Janet G. Stotsky, Gender and Its Relevance to Women workers have reported an enhancement Macroeconomic Policy: A Survey, (International Monetary of their self-esteem, and they appreciate the ex- Fund, 2006) are consistent with the microeconomic re- panded social opportunities and life choices that search. Although causality is difficult to conclusively es- wage employment brings.18 This also brings a tablish because of limited time series data, this combined body of work offers a convergence of evidence on the greater change in gender relations, by shifting benefits of gender equality in education and, to a lesser parents’ perceptions of girl children as a liability extent, employment, for societal economic well-being. toward viewing them as potential income earners 18 Tiano and Fiala, 1991; Amin et al., 1998. and contributors to the household. Attitudes and 19 Kabeer, 1995. The Case for Promoting Women’s Economic Empowerment in SEZs 9 work,20 as defined by the International Labour those efforts as unique and additional benefits to Organization (ILO). Another concern is that the businesses that locate within them. Gender-in- same women may lose out as SEZs “upgrade� to clusive policies and programs can deliver business less capital- and/or skill-intensive industries.21 benefits to zones in the following forms: From a competitiveness perspective, it is argued 1. Enhanced legal protection and investor com- that a development strategy based on export in- pliance through fair and equal employment for dustries and cheap labor cannot be sustainable. the majority female workforce; Short-term gains can be reaped in terms of market 2. Enhanced reputation among investors and shares, but competition among low-income coun- buyers from commitment to social responsibil- tries will undermine the competitive advantage of ity toward the majority female workforce; and the early movers by favoring countries with even 3. Attraction of investors by a skilled and capable cheaper labor. In this context, countries who im- female labor force. plement a long-term strategy to increase the tech- nological content of their exports and move up These are explored in greater detail in the sections the supply-chain ladder will achieve longer-term below. development gains that ideally are spread more equally among the population. However, because 1. Enhanced legal protection and investor com- of the concentration of low-wage female workers pliance in capital- and/or skill-intensive industries, indus- SEZs have a global reputation of restricting work- try upgrading by these countries will necessarily er rights, in particular by limiting or prohibiting result in large-scale job loss, with disproportionate freedom of association.Within this context, fearful impacts on women. Integrating gender-equality of being unable to meet the growing legal compli- considerations into zone programs at all stages of ance expectations of global buyers, foreign inves- the upgrade process will limit negative impact and tors may be reluctant to locate their business in ensure that the socioeconomic gains of women’s zones. Establishing mechanisms to enhance legal employment and empowerment are maintained. protection and monitor investor compliance can Zone-program growth and upgrade strategies serve as a competitive differentiator for individual should also consider gender equality in education zones or zone programs. and training, so that women gain higher qualifica- tions for employment in line with the rise in tech- Since women represent the majority of zone em- nological capabilities of the exporting country.22 ployees in many cases, and women’s labor rights As such, there is an economic case for the retention and skill upgrading of female workers in zones, 20 The ILO defines “decent work� on its Web site as the since these will allow the host country to remain following: “Decent work sums up the aspirations of competitive and profitable and to contribute to the people in their working lives. It involves opportunities for work that is productive and delivers a fair income, growth of the export market. security in the workplace and social protection for families, better prospects for personal development and In addition to the competitiveness of the host social integration, freedom for people to express their country, several business benefits exist for the concerns, organize and participate in the decisions that competitiveness of the zone itself. Zones are in a affect their lives and equality of opportunity and treat- unique position to introduce and promote gender- ment for all women and men.� Source: http://www.ilo. org/global/topics/decent-work/lang-en/index.htm inclusive policies and programs by building them 21 Barrientos, Kabeer and Hossain, 2003 into their “one-stop-shop� offerings. Zones that 22 UN, 2004 Trade and Gender: Opportunities for De- provide, support, or encourage enterprises to adopt veloping Countries. The economics of gender equality, women-friendly programs and policies can market trade and development, 27. 10 Fostering Women’s Economic Empowerment through Special Economic Zones are often disproportionately compromised, in- A solid reputation also helps attract workers to tegrating programs and policies for women into the enterprises operating in the zones, and may zone services and requirements can help increase increase competition for jobs there, helping to compliance with and beyond the law. For example, ensure a higher-skilled and dependable supply of in Bangladesh, continuous improvement in com- labor. Workers will also be less likely to leave the pliance helps zone authorities (BEPZA) and in- zone for outside employment; however, turnover vestors mitigate risk and attract and retain foreign between individual enterprises within the zone investment. The benefits of legal compliance and will likely remain at normal rates. improved ability to meet buyer standards within the zones as compared to outside can help Bangla- desh’s zones grow their share of the export market. BOX 2  ■  Reputation Management Example Zone in El Salvador: While zones in the country have suffered in BOX 1  ■  Enhanced Legal Protection Example the economic crisis, many dropping to 50 percent capacity, one zone has maintained almost full occupancy. The CEO of the zone attributes its success to the fact that it has a reputation as a “responsible zone,� The BEPZA Counselors Program in Bangladesh was intro- allowing it to attract and build long-term relationships with compa- duced as a zone-level monitoring system to assess labor standards nies who value the extra services the zone offers in addition to legal compliance and has 60 counselors, who each monitor labor practices requirements—many of which are health services that directly benefit in 5–10 enterprises. Female workers have taken advantage of the pro- women workers, such as gynecological services and a pediatric clinic. gram to report workplace grievances, sexual harassment, and other concerns. This model, first tested by YoungOne factory in Chittagong EPZ, empowers the Counselor figure to help workers address both personal and professional concerns before grievances must be filed. 3. Attraction of investors by skilled, capable la- The program has successfully reduced grievances from 2,500 to 400 over the period 2005 to 2009. Interviews with BEPZA counselors, the bor force head of the Counselor program, and BEPZA zone staff confirmed that Zones can also remain competitive and contribute the program had also contributed to improved compliance among to enterprises’ bottom line by attracting and training zone investors. a skilled and capable labor force, through programs that are subsidized by or whose cost is shared with investors, such as skills training. As women are likely 2. Enhanced reputation among global buyers to have lower levels of education and skills as com- and zone investors who value social respon- pared with men, women will experience dispropor- sibility tionate benefit from training and other development A positive reputation vis-à-vis working condi- programs within zones. Likewise, because they rep- tions can help zones attract both buyers and inves- resent the majority of most zone workforces, the tors who want to be in compliance with labor law and human rights standards, and those who want to reduce their auditing burden by sourcing from environments with better laws and enforcement of BOX 3  ■  Skilled Labor Force Example laws. Incentives to comply with legal standards are much higher for those companies operating in the The Public-Private Training Program, Costa Rica, offers zones, as they face greater peer pressure from their free specialized technical training to workers in zones through the competitors as well as from international buyers government’s National Learning Institute (INA), the Costa Rica In- who are particularly stringent about standards of vestment Promotion Agency (CINDE), and individual enterprises in zones. CINDE organizes a working group of zone investors to pro- their suppliers located in the zones. Participation in vide feedback on their concerns and needs vis-à-vis desired skills in supply-chain compliance efforts such as the Global the labor force, and this feedback is integrated directly into INA’s cur- Reporting Initiative are expected to expand, along- riculum. This program and system of acquiring feedback provides zone investors with free or low-cost technical training for workers side expansion of such bodies’ objectives to include on the specific skills they have identified as priorities, producing voluntary and compulsory standards. higher-skilled, more productive workers. The Case for Promoting Women’s Economic Empowerment in SEZs 11 impacts of training programs stand to result in larg- ies found ROIs ranging from 2:1 to 6:1 from er-scale reductions of turnover and increases in the lowered health care costs, decreased absenteeism, value of zone-based jobs to the local labor pool. improved performance and productivity, and em- ployee attraction and retention.25 A 2010 study found a US$3.27 reduction in medical costs and Economic Returns for Investors: III.  a US$2.73 reduction in absenteeism-related costs Benefits for Company Bottom for every dollar spent on employee wellness pro- Line grams.26 Some factories, including two in Egypt and El Salvador visited for this study, have begun Investments in creating women-friendly working act on the observed link between health-related environments have been shown to have a measur- absenteeism and factory-based health outreach by able, positive impact on an enterprise’s bottom line implementing programs (see examples below). as well. These benefits include: 2. Legal compliance and risk mitigation 1. Reduced absenteeism and turnover, increased Another key area of business benefit is in risk mit- productivity, and enhanced worker loyalty; igation—specifically by supporting compliance 2. Legal compliance and risk mitigation; and with women workers’ rights. Compliance with 3. Improved worker satisfaction and worker- national labor laws and international conventions management communication. has become increasingly prioritized by multina- tional companies (MNCs), who conduct audits 1. Reduced absenteeism and turnover, in- to assess adherence to local and international law creased productivity, and enhanced worker by companies supplying them with manufactured loyalty goods or services. Increasingly, MNCs are con- Garment, footwear, and electronics factory man- sidering social and environmental performance, agement and international buyers interviewed for in addition to price, quality, and on-time delivery, this study agree on the business benefits of imple- in their purchasing decisions and contractual rela- menting workplace programs targeting women. tionships. As women represent both the majority Such benefits include enhanced worker loyalty and of and the most vulnerable employees, women- skills, reduced absenteeism, and reduced turnover. inclusive programs represent a key area of invest- It is assumed that these results also contribute to ment to prevent the loss of client contracts and improved productivity and quality. It is also argued worker turnover to other enterprises with better that the business benefits of investing in women social programs. go beyond one factory or one international com- pany: supporting female factory workers is directly tied to the sustainability of the light manufactur- 23 Interview, June 2010. ing industry as a whole because of the magnitude 24 Extending Service Delivery, “Effects of Workplace of contributions to the industry made by millions health program on absenteeism, turnover, and worker of female workers.23 attitudes in a Bangladesh garment factory,� 2007. 25 Pelletier, Kenneth, “A Review and Analysis of the In particular, investments in women’s health pro- Health and Cost-Effective Outcome Studies of Com- grams enjoy positive returns. A cost-benefit analy- prehensive Health Promotion and Disease Prevention Programs at the Worksite: 1991–1993�, American sis of a women’s health program in Bangladesh, Journal of Health Promotion, September/October for example, found a 3:1 return on investment 1993: 50–62; Chapman, Larry, “Proof-Positive: Analy- (ROI) due to the program’s impact in decreasing ses of the Cost Effectiveness of Worksite Wellness�, health-related absenteeism and staff turnover.24 Summex Corporation, 1996. Other studies have documented the overall ROI 26 Baicker, Katherine et al, “Workplace Wellness Programs in workplace health. One review of 10 such stud- Can Generate Savings�, Health Affairs, 29:2, 2010. 12 Fostering Women’s Economic Empowerment through Special Economic Zones BOX 4ABSENTEEISM AND TURNOVER BOX 5  ■  Productivity Examples EXAMPLES A garment factory in El Salvador contracts 12 buses to pro- In Bangladesh, China, Egypt, India, Pakistan, and Viet- vide free transportation to its employees. The company noted that nam, HERproject (or Health Enables Returns)1 teaches fe- the program has provided clear benefits for both workers and the male workers about reproductive health, family planning, and how to company. Benefits for women workers include more reliable, safer care for themselves through a series of in-factory educational ses- transportation and more net income to provide for their families. sions. Those workers in turn counsel and educate their peers in the Benefits for the company include less money spent on taxes and factory. Business benefits to the program include decreased health- benefits—assuming that a transportation stipend would otherwise related absenteeism and staff turnover, an increased female labor be paid to workers—and more reliable production schedules as a pool, and improved worker-management communication. result of punctual shift changes. A garment factory in El Salvador offers in-factory health ser- Gap Inc.’s P.A.C.E. program provides professional development, vices in addition to those provided at the zone clinic and a “Future literacy and health education programs, and general life-skills train- Mother’s Club� that offers prenatal and postnatal training and ing to female workers in two garment factories in India. A program support. The factory also conducts investigations into health-related assessment by the International Center for Research on Women found issues that contribute to absenteeism and uses the results to de- that participating women reported higher efficiency at work, and great- termine the content of health training programs and/or health fairs. er ability to take on new and increased responsibilities.1 The YoungOne Counselor Program, Bangladesh, helps An anemia and intestinal worm treatment program and ROI workers and management address life and work problems before study conducted in seven factories in Bangalore, India, provided drug they create adverse affects on women at work. The factory has a total treatment, dietary supplements, and awareness raising for women of 49 counselors (47 women) who act as the first point of contact workers over a nine-month period. The program saw a reduction for female workers to go to with family matters as well as workplace in workers who were anemic from 29.6 to 16.1 percent. Productiv- grievances. The system has helped YoungOne improve anticipation ity rates for the anemic worker control group were increased by 6–8 of potential absenteeism as well as develop better systems to explain percent on average—with an average of 30 percent of factory workers and avoid absenteeism and turnover. testing anemic in the study, treatment programs could be expected to raise overall factory productivity by 2–3 percent.2 In China, the Yan Xie, Timberland and Social Accountabil- ity International (SAI) worker committee program estab- 1 Impact Alliance/UNDP, “India—Gap Inc. P.A.C.E. Program for Women Gar-   lished an elected worker committee and informed and advised work- ment Workers�, Case Story 70, http://www.impactalliance.org/ev_en.php?ID= ers and management on rights and responsibility issues. Average 49284_201&ID2=DO_TOPIC (viewed April 1, 2011). employee tenure doubled from 12.6 months to 25 months over the 2 Brown, D.K. et al., “Human Resource Management Technology Diffusion   course of the program.2 This program does not target women only. through Global Supply Chains: Buyer-directed Factory-based Health Care in India�, World Development (2009). 1 HER Project is a factory-based women’s health awareness-raising program   that has been implemented in China, Egypt, Mexico, India, Pakistan, and Viet- nam. See http://www.herproject.org/. 2 Ma, Martin et al, “From Words to Action: A Business Case for Implementing   programs apply a gender perspective to rights Workplace Standards�, Center for International Private Enterprise and Social Accountability International, 2009. compliance. 3. Improved worker satisfaction and worker- Most current compliance systems continue to ad- management communication dress the impacts of risks, rather than contributing Companies have also cited the business benefits to elimination of the risks themselves. Addressing generated by improved worker-management com- women-specific issues represents an opportunity munication. The majority of grievances filed by to identify risks that may be currently hidden, such workers are related to miscommunication with as sexual harassment or maternity benefit viola- management or misunderstanding of individual tions, and address the source of those risks rather rights and responsibilities. Such grievances occur than only their impacts. in large numbers and can be costly—for example, in China in 2008, nearly one million labor disputes The majority of legal compliance issues are gen- were filed (with more than 693,000 litigation cases der-neutral, so most existing good practices do and more than 237,000 labor arbitration cases), not single out female employees. Nevertheless, representing an increase of 93.93 percent over the women stand to benefit disproportionately from disputes filed in 2007. Another potential business such programs, and will benefit even more if these benefit is improved ability of management to antic- The Case for Promoting Women’s Economic Empowerment in SEZs 13 BOX 6COMPLIANCE AND RISK MITIGATION BOX 7  ■  Improved Worker Satisfaction EXAMPLES and Worker-Management Communication Examples The Friendly Environment for All program, Vietnam, was a rights and responsibilities program designed to improve a fac- The Nordstrom Worker Professional Skills Development tory’s compliance performance by engaging workers more effectively Initiative, China, provides workers and midlevel management on their rights. The program included management trainings and a with training on management, communication, and stress manage- “Worker Initiative Program� where workers submitted ideas for fac- ment. Within five participating factories in 2008–2010, 62 percent of tory improvements. The program improved worker-management participants were women (136 of 218). Management commented on communication, reduced turnover, and improved the buyer relation- benefits to the internal training system, the mitigation of stress and ship with the factory through increased trust.1 conflicts between workers and management, the reduction of turnover H&M Rights and Responsibilities Soap Operas introduce the and recruitment costs, and the benefits of a participatory workplace. concept of rights and responsibilities for workers through cultur- The BSR Labor Relations Practitioners Project, China ally sensitive and locally produced video dramas that can be shown (2008–2010), provided training to supervisors and HR managers during the factory lunch hour or other break periods. The soap op- in communication skills and employee relations management, la- era format did not intentionally target female workers, yet the high bor dispute prevention and handling, and worker participation and percentage of women in the workplace was reflected in the films. collective bargaining, addressing the communication gaps within The videos were made in 2008 and released in 2009, and cost ap- the workplace and broader systems. The program organized train- proximately Tk 100,000 to produce, with additional resource invest- ing programs for over 1,500 factory representatives at a cost of ap- ment by H&M staff in Bangladesh. H&M shares the videos with any proximately US$450 for each participant. Improved communication company who demonstrates a clear commitment to improving its and management practices related to grievance handling can provide workers’ rights and responsibilities awareness.2 business benefits including risk management, improved worker sat- isfaction and loyalty, and increased productivity. 1 BSR & Levi Strauss Foundation, “Moving the Needle: Protecting the Rights of Garment Factory Workers�, October 2009, http://www.bsr.org/reports/ BSR_LeviStraussFoundation2009.pdf 2  Interview, H&M, February 2010. study aimed at multinational firms identified a significant competitive advantage and perfor- mance benefit to increased hiring of women in ipate and plan for worker absences or resignations. the developing world, where many local compa- The status quo in most low-skill enterprises is for nies opt not to hire women. The competitive ad- workers to not alert their supervisors to upcoming vantage was found to be particularly pronounced absenteeism for fear of punishment. Improving as women became more skilled, with the highest communication mechanisms can help reduce the performance benefits being observed with female costs of unexpected absenteeism, and allow the en- hires at the senior management level.29 terprise to modify production schedules as needed. Beyond the examples cited in this report, other Conclusion studies have found significant business benefits to investors as well. According to a 2010 McKinsey This chapter demonstrates that investments in study, among companies who invest in programs women’s economic empowerment can deliver im- targeting women in developing countries, at least portant economic returns. At the national level, one-third have measured improved profits, and enhanced economic empowerment of women— an additional 38 percent are expecting returns.27 Employing women, and gender diversity in gen- eral, has also become increasingly recognized as 27 McKinsey, “The business of empowering women�, Jan- beneficial to business—another 2010 McKinsey uary 2010. 28 McKinsey, “Moving women to the top�, 2010. survey found that 72 percent of respondents be- 29 Siegel, Jordan, “Multinational Firms, Labor Market lieved there was a direct connection between gen- Discrimination, and the Capture of Competitive Ad- der diversity and a company’s financial success.28 vantage by Exploiting the Social Divide�, Harvard More specifically, a Harvard Business School Business School, 2010. 14 Fostering Women’s Economic Empowerment through Special Economic Zones through increased and improved formal employ- Individual businesses operating in the zone can also ment opportunities, higher income levels, and eco- experience economic benefits from investing in their nomic independence—can contribute to national female employees and creating women-friendly work economic development and poverty reduction by environments. Benefits to individual enterprises can increasing the number of household income earn- include reduced absenteeism and turnover, increased ers. Enhancing the economic empowerment of productivity, enhanced worker loyalty, improved le- women can also contribute to gender equity and gal compliance and risk mitigation, and improved enhanced household decision-making power for worker-management communication. women, which may increase the allocation of in- come to family health, nutrition, and children’s The chapters that follow introduce the challenges education.30 to women’s economic empowerment in zones, and present enabling factors and examples of good- At the zone level, gender-inclusive policies and practice policies and programs to overcome those programs can deliver business benefits by target- challenges. ing the most significant demographic of most zone workforces. Specific business benefits may include enhanced legal protection and investor compliance Blumberg, “Income under Female Versus Male Control,� 30 through fair and equal employment; attraction of Journal of Family Issues, 9(1), 1988; Desai and Johnson, investors by a skilled and stable female labor force; “Women’s Decision-Making and Child Health: Famil- and enhanced reputation among investors and ial and Social Hierarchies,� Commissioned by the Mea- their international clients. sure DHS project in Calverton, Maryland, 2005. Chapter 2: Obstacles and Enablers of Women’s Economic Participation in Zones: Comparative Analysis of Focus Countries A country’s legal framework and its en- MM Section 3: Poor investment climate for facili- forcement play a significant role in deter- tating entrepreneurship and lack of business mining women’s economic opportunities support services. and fair employment. In addition, key social fac- tors such as education, health, and living condi- This section provides an explanation of the three tions impact women’s ability to excel and advance issue areas above in the context of women’s eco- in the workplace. Finally, the business enabling nomic empowerment. Following the explanatory environment impacts female entrepreneurship, information, key related obstacles are identified. where women also face unique challenges as com- Finally, suggested enablers are discussed, with pared with men. country-specific examples provided where pos- sible. With the objective of promoting women’s eco- nomic empowerment in SEZs, this study sought The issues discussed in this section do not all relate to identify key barriers and enablers within zones only to female employees, and some of the good- that impact women’s fair employment, advance- practice enablers introduced are gender-neutral. ment opportunities, and investment opportuni- Likewise, many of the challenges introduced ap- ties for female entrepreneurs. Despite many dif- ply to circumstances both within and beyond an ferences in the countries researched, the study SEZ, and many of the good-practice enablers found several common factors that can act as introduced are programs taking place outside of obstacles to or enablers of women’s economic em- SEZs. For example, while a common legal viola- powerment. tion such as excessive overtime may look the same within the zone and outside, zones may have a Women’s entry into the workforce, as either work- different regulatory code or enforcement agency ers, professionals or entrepreneurs, their welfare, that can address the issue differently. Similarly, a and their retention and dropout rates are affected workers’ rights awareness program may use a rel- by a combination of factors. These include: evant methodology outside of a zone, and a zone presents an opportunity for replication and scale MM Section 1: Legal protection and enforcement through coordinated efforts by its authority and of women’s rights; operator. MM Section 2: Cultural perceptions and social fac- tors including education, health, and housing; The premise of this study is that SEZs present a and unique location in which to improve the circum- 16 Fostering Women’s Economic Empowerment through Special Economic Zones stances of and opportunities available to female is “gender-neutral.� Thus, while the reader may workers, who also represent a majority of the identify areas in the forthcoming sections that also workforce inside zones. The study also posits that pertain to men or to businesses outside of zones, for a number of reasons—gender inequality, legal the objectives of this study—to empower female provisions, religious norms, and others—women workers and entrepreneurs within SEZs—will re- often suffer disproportionately when an obstacle main consistent throughout. Section 1: Legal Rights and their Enforcement International Conventions sites and supply chains. The majority of the top Governing the Rights of Working 500 companies in the United States and the Unit- Women ed Kingdom have adopted some sort of code of conduct, many of them referring to ILO standards. International labor standards are legal instruments While these codes are no substitute for binding drawn up by the ILO’s constituents, setting out ba- international instruments, they play an important sic principles and rights at work. These standards role in spreading the principles contained in inter- are primarily tools for governments to draft and national labor standards. Similarly, international implement labor laws and social policies in con- labor standards have been used in various inter- formity with internationally accepted standards, national collective agreements, particularly in the which serve as targets for harmonizing national garment and textile industries. law and practice in a particular field. This section summarizes the key international la- International labor standards are either conven- bor and human rights conventions that are most tions—legally binding international treaties that relevant to women’s economic participation and may be ratified by member states—or recommen- examines the commitments made by each country dations, which serve as nonbinding guidelines. of study. Table 2 below summarizes the ratification Ratified international treaties apply automati- status of these conventions. cally at the national level and ratifying countries commit themselves to applying the convention With the notable exception of China, the coun- in national law and reporting on its application tries in this study have ratified most of the core at regular intervals. Their courts are thus able to ILO conventions. Important exceptions include use international labor standards to decide cases the maternity protection convention, which has on which national law is inadequate or silent, or to not been ratified by any country subject to this draw on definitions set out in the standards. study, and the freedom of association convention, which is not ratified in China, Jordan or Kenya. International labor standards are also increasingly In addition, it is worth noting that while Ban- being used beyond governments. Consumer inter- gladesh, El Salvador, and Costa Rica have rati- est in the ethical dimensions of products has led fied this convention, in SEZs unions are either multinational companies to develop codes of con- disallowed by law (Bangladesh) or subject to sig- duct to govern labor conditions in their production nificant anti-union pressure, including the black- 18 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 2  ■  Ratification of International Conventions and Treaties by Country International Costa El Agreement Bangladesh China Rica Egypt Salvador Jordan Kenya Philippines ILO Conventions 29 Forced Labor Ratified Not Ratified Ratified Ratified Ratified Ratified Ratified Ratified 87 Freedom of Ratified Not Ratified Ratified Ratified Not Not Ratified Association and Ratified Ratified Ratified Protection of the Right to Organize 98 Right to Organize Ratified Not Ratified Ratified Ratified Ratified Ratified Ratified and Collective Ratified Bargaining 100 Equal Ratified Ratified Ratified Ratified Ratified Ratified Ratified Ratified Remuneration 105 Abolition of Forced Ratified Not Ratified Ratified Ratified Ratified Ratified Ratified Labor Ratified 111 Discrimination Ratified Ratified Ratified Ratified Ratified Ratified Ratified Ratified (Employment and Occupation) 138 Minimum Age Not Ratified Ratified Ratified Ratified Ratified Ratified Ratified Convention Ratified 182 Elimination of the Ratified Ratified Ratified Ratified Ratified Ratified Ratified Ratified Worst Forms of Child Labor 183 Maternity Not Not Not Not Not Not Not Not Protection Ratified Ratified Ratified Ratified Ratified Ratified Ratified Ratified UN Convention on With With Ratified With With With Ratified Ratified the Elimination Reservations Reservations Reservations Reservations Reservations of All Forms of Discrimination Against Women (CEDAW) International Ratified Ratified Ratified Ratified Ratified Ratified Ratified Ratified Covenant on Civil and Political Rights International Ratified Ratified Ratified Ratified Ratified Ratified Ratified Ratified Covenant on Economic, Social, and Cultural Rights listing of workers associated with unions (Costa the countries have signed key international cove- Rica, El Salvador).31 nants on civil, political, economic, social, and cul- tural rights. However, despite these ratifications, All of the countries have ratified the UN Con- gender discrimination remains prevalent and en- vention on the Elimination of All Forms of Dis- forcement of laws is often weak. crimination Against Women (CEDAW), though Bangladesh, China, Egypt, El Salvador, and Jor- dan have done so with reservations. Finally, all of 31 Interviews, Costa Rica and El Salvador, June 2010. Legal Rights and their Enforcement 19 National Employment Laws varies from country to country. The second most Governing the Rights of Working common provision was nondiscrimination based Women on pregnancy or marital status. The countries with the broadest regulatory safeguards across all areas Labor relations in most zones are governed by are Costa Rica and the Philippines. the national labor law of the country, as well as any additional or separate regulations created for Previous studies32 have noted that both men and the zones themselves. In some cases, zones have women working in zones may face challenges such separate labor-law regimes. Labor laws establish as low wages, excessive overtime, incorrect pay- the minimum wage, working hours, freedom of ment of wages, and restricted freedom of associa- association or the right to organize, overtime re- quirements, health and safety standards, sexual 32 Sarah Perman et al, ICFTU, Behind the Brand Names: harassment mandates, and other provisions, such Working Conditions and Labor Rights in Export Pro- as maternity leave, child care, and nursing breaks. cessing Zones (2004); Raymond Robertson et al, Glo- balization, Wages, and the Quality of Jobs: Five Country Table 3 below provides for a comparison of key Studies (2009); Gopalakrisnan, Freedom of association national laws and regulations affecting women in and collective bargaining in export processing zones: Role of the ILO supervisory mechanisms, Working Paper, In- the focus countries. ternational Labor Office, ILO (2007); Andrew Lang, “Trade Agreements, Business and Human Rights: The The most common protection provided by law case of export processing zones�, Working Paper of the is maternity leave, but the quality of that benefit Corporate Social Responsibility Initiative (2010). TABLE 3  ■  Key National Legal Provisions and Regulations Affecting Women* Costa El Legal Provision Bangladesh China Rica Egypt Salvador Jordan Kenya Philippines Maternity Leave Yes Yes Yes Yes Yes Yes Yes Yes Workplace Child Care Yes No law No law Yes No law (in Yes No law Yes labor code) Nursing/Breastfeeding Leave No law Modified Yes Yes Yes Yes No law No law work, no leave Laws Prohibiting Pregnancy No law No law Yes No law Yes No law No law No law Testing Nondiscrimination (Based on No law Yes Yes Yes Yes Yes Yes Yes Pregnancy or Marital Status) Law Prohibits Sexual Harassment No / Yes No / Yes Yes / No No / Yes Yes / Yes No / Yes No / Yes Yes / Yes in the Workplace / Generally Separate Washrooms Required for Yes No law Yes No law No law No law Yes Yes Male and Female Workers Restrictions for Female Workers No law No law Yes No law Yes Yes No law Yes (e.g., Women Cannot Work Night (Night work Shift, Restrictions for Pregnant prohibited) Workers) Note: unless otherwise indicated , the existence or nonexistence of laws applies nationally and within zones. More information about specific laws can be found in the country case studies. *  Extending Service Delivery Project (USAID), “National Laws Regarding Gender, Reproductive Health and Family Planning�, Draft, 2010. 20 Fostering Women’s Economic Empowerment through Special Economic Zones tion. Field research indicated that these practices manufacturing is overwhelmingly staffed by men exist in some zones in some countries, but are not in Bangladesh, while undergarment factories have universal. For example, in Bangladesh, wages are majority female employees. higher within zones than outside, and treatment of workers is generally thought to be better in zones. On the other hand, unions are prohibited in zones Obstacles and Enablers to Legal in Bangladesh, and in Jordan migrant laborers, ap- Framework and Enforcement proximately 75 percent of the workforce in zones, are prohibited from joining unions. In Costa Rica Two main obstacles that hinder women’s legal and El Salvador, unions are strongly discouraged rights in the workplace include the absence of laws in practice and interviewees reported actions such and the unintended negative consequences of ex- as blacklisting to prevent workers from joining isting laws on women, or ineffective enforcement unions.33 of these laws. Legal restrictions on working hours and industries, The obvious solution for the first obstacle is to cre- parental benefits (both maternity and paternity), ate laws to protect women and promote their eco- and retirement ages disadvantage women in ob- nomic empowerment where these laws do not yet taining a job in all but one country in Sub-Saharan exist. Enablers to address the second identified ob- Africa, all countries in the Middle East and North stacle are provided in more detail below. One key Africa, and a majority of countries in South Asia, enabler identified is improving monitoring mech- Latin America and the Caribbean, and East Asia anisms, for instance through a certification system, and the Pacific.34 Besides legal restrictions, women grievance hotline, or legal counseling services. A also face unique challenges when they participate second enabler is to increase women workers’ voic- in the workforce, such as disproportionate suffer- es, for instance through worker committees that ing from security concerns, limited access to in- are women-specific or encourage women’s partici- factory child care, limited representation in unions pation. These obstacles and enablers are explored and/or worker committees, and inappropriate ma- in more detail below. ternity leave and benefits. Discrimination against pregnant35 and sexual harassment36 are also highly prevalent. 33 Interviews, Costa Rica and El Salvador, June 2010. 34 World Bank and the International Bank for Recon- Wage discrimination was also found to be com- struction and Development, “Women, Business and the mon. In Bangladesh a 2007 study found that Law�, 2010. women earned 15.9 percent less than men on 35 Sarah Perman et al, ICFTU, Behind the Brand Names: average and, in addition, tend to be restricted to Working Conditions and Labor Rights in Export Pro- lower-paying industries and lack access to higher- cessing Zones (2004). 36 Interviews in Bangladesh, Costa Rica, El Salvador, and paying jobs. Targeted education programs could Jordan; FIDH, “Bangladesh: Labor Rights in the Sup- reduce occupational segregation and improve ply Chain and Corporate Responsibility�, June 2008; women’s economic status.37 Chen, Martha, Joann Vanek, Francie Lund, and James Heintz with Renana Jhabvala and Christine Bonner Occupational segregation, which contributes to (2005) p. 67–68 “Factory Workers in Bangladesh�, wage discrimination, was found to be common in Progress of the World’s Women, UNICEF, New York; all the countries visited. Women are often con- Perman, Sarah et al, “Behind the Brand Names: Work- ing conditions and labour rights in export processing centrated in lower- and unskilled positions and zones�, International Confederation of Free Trade industries, for instance, working as helpers and Unions, December 2004. sewers in garment factories. Similarly, sometimes 37 Kapsos, Steven, “The gender wage gap in Bangladesh�, sectors are gender-segregated; for example, textiles ILO Asia-Pacific Working Paper Series, May 2008. Legal Rights and their Enforcement 21 Obstacle 1. No Law Exists cal regulation to address the survival and develop- While existence of a law does not necessarily guar- ment challenges of women in the new situation.39 antee its adequate enforcement, the total absence of a law to protect basic rights means the absence of the minimum legal guarantees. The study found Obstacle 2. Unintended that only a few countries have robust laws prohib- Consequences of Laws and/or iting sexual harassment in the workplace, and this Ineffective Enforcement of Laws represents an area for improvement given the rela- In many cases, laws designed to “protect� wom- tively low cost of enforcement and the significant en have unintended consequences. For example, potential benefits for worker’s health, safety, mo- strong maternity laws in Kenya pushed through by rale, and productivity. the country’s Ministry of Gender have in some cas- es resulted in employers refusing to grant women For example, in Kenya, interviews revealed that permanent contracts, to avoid paying this benefit.40 sexual harassment is very common in enterprises Similarly, in Bangladesh and Egypt, where the law located in zones. What’s more, interviewees said requires employers to provide child care for female that workplace sexual harassment even occurs dur- workers within certain provisions, many employ- ing working hours; one interviewee called it an in- ers avoid the requirement by hiring fewer women, creasingly problematic “distraction� to supervisors. or by maintaining a substandard child-care facil- The harassment also contributes to the spread of ity that women don’t want to use.41 Similarly, re- HIV/AIDS among employees and to the occur- strictions on women’s working hours introduced rence of unwanted pregnancy.38 to “protect� women actually hinder their ability to participate in the workforce. Indeed, gender-equal rules on working hours and industries are associ- Enabler 1: Create Laws to Promote ated with more women in the workforce.42 Gender Equity MM Shenzhen legislation on gender equality, Second, poor enforcement of laws is a shared China challenge across all of the countries. For example, Shenzhen Special Economic Zone in Guangdong though laws prohibit discrimination based on Province has put the “Gender Equality Promotion pregnancy status, interviewees in El Salvador and Regulation� into the legislative track, which will Costa Rica said that women applying for jobs are fill a gap in local regulations on gender equality often required to take a pregnancy test.43 in China. In 1993, Shenzhen Special Economic Zone was the first in China to issue implementa- To support the effectiveness of any law protect- tion guidelines for the “Law of the People’s Re- ing women’s equality and empowerment, extensive public of China on the Protection of Rights and awareness-raising in communities is also required Interests of Women.� After over ten years of prac- to challenge societal practices that may run counter tice and implementation, it is clear that an amend- ment of current guidelines will not be sufficient, and there is a need for new regulation to promote 38 Interviews, Kenya, various, May 10–19, 2010. gender equality in the current social and economic 39 http://finance.qq.com/a/20100812/001266.htm situation in China. 40 Interview, Jonathan Chiffallu and Maria Ouya, Kenya Export Processing Zone Authority, May 12, 2010. 41 Interview: Ashraf Dowidar, Internal Trade Develop- The Women’s Federation in Shenzhen Special ment Authority, May 4, 2010; Interviews BEPZA Economic Zone is spearheading the legislation Counselors, Bangladesh, February-May 2010. with support from the Legal Affairs Committee 42 World Bank, Women Business and the Law, page 22 and the Internal and Judicial Affairs Committee of figure 4.1. Shenzhen People’s Congress. It will be the first lo- 43 Interviews, Costa Rica and El Salvador, June 2010. 22 Fostering Women’s Economic Empowerment through Special Economic Zones to the law. Without awareness-raising, legal pro- MM Grievance mechanisms targeting women, tections are not likely to be translated into greater Jordan and China support of women at a societal level, thus limiting The National Center for Human Rights (NCHR) the impacts of a good law on women’s economic is an independent national institution in Jordan empowerment. that monitors human rights violations and pro- vides legal advice and assistance. The Center can receive complaints from female workers, for ex- Enabler 2.1. Improve Monitoring ample, and can provide advice and assistance with Mechanisms legal redress if necessary.44 NCHR also visits en- A way to improve compliance with the law, pre- terprises in zones and supports Ministry of Labor vent unintended consequences, and ensure proper inspections. Finally, the Jordanian National Com- enforcement is to improve monitoring mecha- mission for Women ( JNCW) also has a women’s nisms. While the enablers listed below are not complaint office, which receives complaints about targeted toward zones specifically, the zone au- violence against women and workplace discrimi- thority can play a role in linking and facilitating nation and harassment. country-wide initiatives with investors and in developing zone-level monitoring where national The Maple Women’s Psychological Counseling capacity is low. Center in China runs several hotlines and man- ages hundreds of volunteer counselors. The cen- MM Gender equity labor certification to facilitate ter listens to women’s grievances and tries to help compliance and enforcement, Costa Rica them solve problems such as domestic violence. In Costa Rica’s Instituto Nacional de la Mujeres, or 1992, the Center started the first Women’s Hotline National Institute for Women (INAMU), has a in China to provide free services to women. The “System for Labor Certification on Gender Eq- program has successfully established a process for uity and Equality in Costa Rica.� This mechanism, screening, interviewing, and assessing volunteers to based on international norms, certifies companies run the hotline service. In this way, the quality of for their performance vis-à-vis gender, with an the volunteers’ service is built and maintained, cre- aim to gradually eliminate the gender equity gap ating a valuable resource for the local community. at work. Initiated in 2002, the system is currently The volunteer structure of the program also creates being implemented by 5 companies and 10 more some challenges, including the difficulty of predict- are interested in starting in 2012. The phases of ing volunteer availability for staffing the hotline. implementation include training, issue diagnosis, There is also the challenge of volunteer turnover. establishment of a gender policy, and development The Center addresses these challenges by providing of a plan of action. Participating companies must continuous training opportunities for volunteers invest in these phases, and INAMU serves as the to expand their capacity in counseling, which also certifying body. helps maintain their interest in providing service. One challenge that the program faces is becoming Other NGOs also provide similar services to dis- financially self-sustaining. To achieve this, partici- advantaged women in China. For example, the pating companies must fund the entire certification Shaanxi Association of Women Lawyers provides process. At present, companies pay a portion and women with legal services, such as securing injury INAMU pays the rest. Human resource capacity is also needed to continue to develop the model, as INAMU’s staff is only able to work part-time 44 National Center for Human Rights webpage: www.nchr. on the program. This is a result of spending cuts org.jo/pages.php?menu_id=47&local_type=0&local_ by the Costa Rican government that are affecting id=0&local_details=0&local_details1=0&localsite_ staffing on this and other governmental programs. branchname=NCHR Legal Rights and their Enforcement 23 compensation and bringing sexual harassment lack of understanding among committee members lawsuits. of their proper roles and responsibilities, which resulted in some initial conflicts with supervisors. To address this, the company invested in capacity- Enabler 2.2. Increase Women Workers’ building training programs to help the committee Voices members understand their roles and responsibili- Another means of improving enforcement is to ties, and to ensure effective management of each engage women more effectively on rights aware- role. Examples of training topics include commu- ness and their ability to communicate about rights nication, running effective meetings, leadership, violations. Women’s participation in organized la- rights and responsibilities, HR policies and proce- bor is often low, and their participation in lead- dures, challenges women face in management, and ership positions tends to be even lower: Research others. in Bangladeshi zones found women’s participation in workers’ association executive committees was Another challenge was a misunderstanding by the less than 1 percent.45 In general, women tend to workers of what the gender committees should be be underrepresented in worker organizations and responsible for—many inappropriate issues were committees designed to promote workers’ interests brought in front of the committees in the begin- with individual companies or industries. Adding ning, so the proper role of the committees needed women’s welfare committees to these organiza- to be communicated to the workers as well. A final tions may help women gain a stronger voice, par- challenge was encouraging women to take up po- ticularly in countries where women are tradition- sitions as committee members, made difficult by a ally less likely to occupy leadership positions or to cultural view of women as inferior and incapable speak up in large groups. of taking positions of authority, according to a company HR manager. MM Women’s representation in worker organiza- tions, Kenya Addressing these challenges and making the com- A successful example was observed in Kenya, on a mittee successful required patience and guidance cut-flower farm in the Naivasha region. The farm from more senior HR staff. Another lesson learned has established an innovative system of gender was that after this initial hand-holding period, committees as subcommittees of the already estab- workers became highly capable of addressing the lished workers’ association. The gender committees issues assigned to them with minimal supervision. enable the farm’s human resources department Encouraging this sense of ownership by workers’ to monitor and address women-specific issues committee members will help make such commit- by working directly with female workers on the tees successful. committees. The farm established the committees in response to a growing awareness among man- Since establishing the gender committees, the farm agement of unplanned pregnancies, HIV/AIDS has seen a reduction in unplanned pregnancies, an infection, and sexual harassment experienced by increase in HIV/AIDS awareness, an increase in female workers. These challenges were recognized condom use, and a reduction of workplace sexual by management as a serious risk to stability, safety, harassment as well as active worker participation and productivity in the workplace, yet the work- in developing a workplace sexual harassment pre- ers’ association (dominated by men at the time) vention policy.46 seemed unable to identify or address the issues. When the committees were first established in 45 BEPZA Counselor Research, Bangladesh, March-May 2004, the company faced some challenges with 2010. getting them set up. The biggest challenge was a 46 Interview and site visit, flower farm, Kenya, May 2010. 24 Fostering Women’s Economic Empowerment through Special Economic Zones MM Women workers’ committees in labor unions, ers who are familiar with technology, the Nidec China Corporation created an online “suggestion box� in Most labor unions in China have women workers’ 2009 that is still in use. The company has placed committees that address women’s issues. The scale, a computer station next to the canteen to allow functions, and conditions of these committees vary. workers to provide feedback in an easily accessible The progress or success of such committees depends and nonintimidating location. Workers can choose on the vision and courage of the women leaders. whether or not to submit the feedback anony- mously. The system has had a positive response The Guangdong Provincial Labor Union, for ex- from workers, and the company sees the tool as ample, was the first union to conduct a survey on a great resource for management decisions—in women migrant workers’ needs in 2002. 200,000 terms of both listening to employees’ needs and migrant women workers in 1,000 non-state- concerns and collecting creative business solutions owned enterprises took part in the survey. In 2003, based upon the on-the-ground perspective. the union also developed a three-level—city, dis- trict, and factory—occupational health and safety One factor contributing to the success of this pro- supervision system to strengthen participation and gram is strong management support—the compa- protection of women workers. ny sees value in reducing the likelihood of work- ers making complaints to external organizations. MM Encouraging worker feedback, Philippines Workers also welcome this online system as it is Creating ways for workers to share concerns and easily accessible and they can provide feedback provide ideas for improvement is an effective way without attribution. There were some initial user- to both increase operational efficiencies and reduce friendliness challenges in first week of installing the risk that problems will escalate to labor dis- the program; these were resolved by making im- putes. Since its employees are higher-skilled work- provements to the system based on worker input. Section 2: Social and Cultural Factors A wide range of social and cultural factors workplace- or zone-provided child care, and pro- inhibit women’s access to employment, af- vided transportation. fect their treatment within the workplace, and limit opportunities for professional advance- ment. The most significant barriers include the fol- Obstacle 1. Cultural Norms and lowing: Expectations 1. Cultural norms and expectations influence Expectations about a woman’s role in society may women’s role in society and economic opportu- limit women’s formal employment opportuni- nities available to women; ties. Further, negative perceptions and discrimi- 2. Lack of access to education limits women’s nation lead to women gaining only short-term employability and potential for upward mobil- employment, which limits their opportunity for ity once employed; advancement. 3. Inadequate knowledge of women’s health issues and limited access to women’s health In rural areas in Jordan and Egypt, it is common services pose serious obstacles for women that for male relatives to resist women working outside impact absenteeism and productivity; of the home because of religious norms restrict- 4. Lack of access to quality and affordable child ing women’s mobility in public spaces. In most of care has been noted as a significant challenge, the countries visited, even if women are employed, even in countries where provision of child care they remain responsible for maintaining the house is mandated by law; and and caring for the children, and women often do 5. Substandard or unsafe living conditions and not have access to affordable child care. Women’s transportation to the workplace make women family responsibilities demand significant amounts workers more vulnerable. of time, and may prevent the ability to work over- time, or to commute to places of work such as The obstacles identified above are explored in zones. Furthermore, the relationship between cul- more detail below, and suggested enablers to ad- ture, laws, and enforcement of laws can compound dress them are also discussed. These enablers in- obstacles to women’s to employment and access to clude community outreach, government incentive redress if they experience abuse. In many countries, programs, life-skills development, investments in women do not report sexual harassment because girls’ education and workplace technical training, of shame or fear of punishment by their family or health education and workplace health services, community. 26 Fostering Women’s Economic Empowerment through Special Economic Zones Women’s health, particularly with respect to men were generally perceived as “better leaders.� women’s reproductive rights, remains a significant Men were also perceived to have management challenge in all the countries studied except Costa skills that women lack. For example, in paternalis- Rica. Contraception is particularly controversial tic or “machismo� cultures where men are the head in predominantly Catholic countries (El Salvador, of the family, women may often be assumed to lack Kenya, and the Philippines), and gender-based leadership or management capabilities, or it may violence was found to occur in the home and the be considered culturally inappropriate for them to community in all countries. exhibit such qualities. Within this context, women’s access to formal em- No concrete examples were observed of attempts ployment in zones can have a positive effect by to counteract these perceptions and the discrimi- improving women’s status within the family and nation that potentially results. Initiatives identi- society. For example, in Bangladesh women’s em- fied in this study as enablers may contribute to ployment in the garment industry has increased the changing these negative perceptions. Examples age of marriage, improved the financial conditions include sharing more data and information on of young women’s families through remittances, and women’s tenure, especially in those countries reduced or eliminated the dowry in many areas of where women remain in the workforce, and in- the country.47 These changes have also correspond- vesting in life skills and leadership abilities so ed with a significant increase in the availability and women can demonstrate their leadership poten- uptake of contraception—99 percent of married tial. Overall, creating a women-friendly work women had access to contraceptives.48 Women’s environment, through investments in compre- self-esteem and self-perception have also changed hensive maternity leave, nursing benefits, and because of new social relationships in all- or major- child-care centers, may help contribute to the ity-female households and work environments. ability of these trained women to return to an en- terprise after having children. This study also found “softer� obstacles to women’s entry into the workforce and professional advance- ment in zones. First, women are often, voluntarily Enablers or involuntarily, considered short-term employees of enterprises, as they are perceived to prefer to 1.1. Community Outreach leave work once they marry or have children. This As explained above, sociocultural constraints on the practice has started to change in many of the coun- role of women in society can prevent women from tries visited, particularly in those countries with a seeking opportunities in the formal workforce, longer history of zones. For example, in China and even when such employment is needed for mone- Bangladesh, this study found that many women tary reasons before or after marriage. For example, are beginning to marry fellow factory workers and as the ready-made-garment industry was becom- remain in the city, rather than returning to their ing established in Bangladesh and young women home. Despite this new evidence to the contrary, were beginning to take employment in the capital however, the majority of factory managers inter- city, Dhaka, a common perception held in rural ar- viewed believed that female workers will leave after eas was that those women would have no marriage an average of two to three years. This perception can restrict managers’ willingness to invest in train- ing for female workers’ professional advancement. 47 World Bank, Whispers to Voices: Gender and Social Transformation in Bangladesh, Authored by Maitreyi Bordia Das, March 2008. Societal perceptions and discrimination can also 48 National Institute of Population Research and Train- restrict women’s upward mobility and opportuni- ing, Dhaka, Bangladesh Demographic and Health Survey, ties for advancement. In several of the countries, 2007. Social and Cultural Factors 27 prospects. This perception has changed over time, women for professional advancement opportuni- and proactive community outreach would likely ties more effectively. Furthermore, training on ba- have changed it earlier. In this context, community sic hygiene, clean preparation of foods, and literacy outreach can provide significant contributions to and numeracy can help female workers improve expanding the labor pool to include women and to their job performance by eliminating simple risks beginning to challenge gender norms and improve and anxieties from their lives and can reduce con- women’s economic opportunities. flict between urban and rural populations. MM Community outreach to encourage women’s MM Community-based interactive training proj- employment in zones, Jordan ect, China Jordan has a domestic labor shortage, which has A program conducted in Sanxiang Town (2000– resulted in high levels of migrant workers, while 2010), Wujiang Zone (2007–2008), Nanhai Zone many Jordanians, especially women, remain un- (2004–2005), and Beijing (2007–2010) provided employed, in part because of cultural resistance migrant women workers with free training and to women working outside of the home. To ad- relevant services on legal awareness, occupational dress this resistance, government, zones, and en- health and safety, psychological health and stress terprises, often in partnership, conducted commu- management, reproductive health and HIV/ nity outreach in rural Jordanian communities near AIDS protection and prevention, interpersonal zones with the goal of increasing the number of communication skills, financial literacy and life Jordanian women workers. The outreach included planning, and the start-up of small businesses. speaking at community halls and also inviting The program also developed social aid and ser- women’s parents to visit the factories. For example, vices for migrant women workers, and mobilized every Saturday one enterprise invited 100 workers’ resources from government, enterprises, and the families to the factory, and about 50 percent of the local community to support social integration of invited families attended. The factory used these rural migrants. visits to build a relationship with the community, and families became more comfortable with their Training costs were approximately US$1,500– daughters or sisters working in factories in zones, $2,000 per 100 participants. As a result of the which led to an increase in employment and for- program, more than 570 legal aid cases were mal-sector income-generation opportunities for handled, 495 of those cases for women. Among Jordanian women. One of these zone outreach the cases, 565 were closed, and 522 were won programs, in partnership with the Ministry of or mediated successfully, with over 14 million Labor, successfully recruited 200 Jordanian work- RMB in compensation won. 100 migrant women ers from the southern part of the country, most of workers’ lives were saved; 73 of these women who them women. suffered poisoning from toxic substances at work were able to go to hospital or continue to re- ceive treatment after accidents.49 Success factors 1.2. Life-Skills Development for the program included collaboration between Another powerful enabler for women workers multiple parties with shared objectives, including in zones, particularly low-skilled workers, is ba- the local government, unions, and organizations sic life-skills development training. Many female working on issues of family planning, migrant workers are young migrants, with limited educa- workers, or women. tion and exposure to the urban environment, and may be unsure how to behave with male supervi- sors or co-workers. Training on communication, 49 Aisa Foundation: Community-Based Interactive Train- responsibilities, and proper behavior at work can ing Project for Migrant Women Workers in the Pearl help improve the work environment and prepare River Delta. 28 Fostering Women’s Economic Empowerment through Special Economic Zones Obstacle 2. Lack of Access to ployment and can limit women’s access to redress Education if they are employed. Public expenditure on education and education Lack of education was frequently cited during performance indicators are closely linked to eco- this research by factory managers as a reason for nomic development and competitiveness. At the women not being promoted to line supervisor; same time, it is common in the developing world, the managers often explained they would be more and demonstrated in all eight countries studied, likely to promote female workers if their education that women have limited access to education and levels were higher.50 Education levels are not the lower educational achievement. Where men are only influence on female labor force participation, expected to be wage earners in a family, limited fi- however, as cultural factors and family responsi- nances are often invested in boys’ education rather bility may also play a role. For example, despite than girls’. Table 4 outlines education expenditure Jordan’s high female literacy rate, only 15.5 per- and performance data by country. cent51 of women are working or looking for work. Countries with higher investment (public expen- From a business perspective, a highly educated and diture) in education tend to have higher educa- skilled workforce contributes to competitiveness tion performance indicators, such as literacy and education enrollment rates. There are differences in educational achievement between men and 50 BSR/BEPZA Counselor research, April-May 2010. women; for example, women’s literacy levels are 51 UN’s Statistics Division, World Statistics Pocket Book lower than men’s in both Bangladesh and Egypt. accessed at http://data.un.org/CountryProfile.aspx?cr Illiteracy can be a significant barrier to formal em- Name=Jordan TABLE 4  ■  Education Expenditure and Performance Costa El Indicator Bangladesh China Rica Egypt Salvador Kenya Jordan Philippines Public expenditure on education per $115 n/a in UN $1,623 $478 $237 $695 $418 pupil in primary education PPP US$ HDR 2009 (2003–2006) Public expenditure on education as 14.2% 20.6% 16.6% 20% 17.9% 15.2% % of total government expenditure (2000–2007) Education (combined primary, 68.7% 73% 76.4% 74% 59.6%, 78.7% 79.6% secondary, tertiary) for total adult population, female population 68.5% 74.4% 74.8% 58.2% 79.9% 81.6% Literacy, % of total population 53.5% 93.3% 96% 66.4% 82% 66.4% 91.1% 93.4% Literacy (for ages 15+), ratio female 0.82 0.91 1.00 0.77 0.94 0.90 0.91 1.01 to male Labor force participation rate (female 57.4% 69.3% 43.1% 24.3% 44.5% 74.1% 15.5% 49.8% population) Source: UNDP Human Development Report 2009, EPDC 2007, UN Statistics Division, World Statistics Pocketbook, 2008 Note: where information is not provided, it is not available. More information about country-level education policy and practice can be found in the country case studies. Social and Cultural Factors 29 by attracting foreign investment in industries with of unskilled job opportunities for women, who higher-paying jobs that demand skilled labor. Ed- represent the majority of employees in the sector. ucation and skills further contribute to the devel- Over time, FSP will increase the education and opment of robust domestic industries as well. Hav- skills of the RMG sector’s workforce. In the future, ing a skilled and educated labor force composed an educated female workforce could contribute to equally of women and men can contribute to bet- increased foreign investment in the RMG sector, ter stability and productivity in the workplace via and to investments in other higher-value sectors, the increased skilled-labor pool. such as electronics parts assembly and IT services. MM Long-term investment in education supports Enablers high-skilled industry, Costa Rica The Costa Rican government has invested sig- 2.1. Invest In Education and Target Girls nificantly in public education since 1948, allocat- as Beneficiaries ing a minimum of 6 percent of GDP to educa- Costa Rica and Bangladesh offer two useful ex- tional programs annually. The government has amples of the value of education in driving high- programs to guarantee literacy in computer sci- er levels of investment and improving women’s ences and English as a second language.53 As a access to equal opportunity in formal-sector em- result, 11 percent of men and 9 percent of women ployment. are fluent in English,54 which has contributed to Costa Rica’s ability to attract foreign investment MM National program ensures girls stay in school in service-sector industries that require bilingual longer, Bangladesh workers. In 1982, the Bangladeshi government created the Female Stipend Program (FSP) to keep girls MM High school internship program, Costa Rica in school longer and delay marriage and mother- A multinational company operating in Costa hood, and thereby support poverty alleviation. The Rica faced the challenge of a shortage of skilled program was piloted in six provinces and expanded and bilingual workers. The company identified throughout the country in 1994. FSP provided a the need to provide opportunities for students monetary stipend to rural girls entering secondary at low-income public schools with potential, but school, including a monthly sum ranging from Tk no previous work experience. The company part- 25 in Class 6 to Tk 60 in Class 10 (US$0.37–$0.88 nered with the Costa Rica Investment Promo- in July 2006), as well as additional support for tion Agency (CINDE) and a public high school books and exam fees. Participants are also required to offer two-month placements for students to abstain from marriage until after obtaining their in their last year of high school. Although the school certificate or turning 18. From the introduc- program did not directly target female students, tion of the nationwide program in 1994 through over half the participants were female—19 (73 2003, girls’ enrollment in secondary school almost doubled, from roughly 240,000 to almost 450,000.52 52 Raynor, Janet, “The Girls’ Stipend Program in Bangla- In the 1990s, the focus of FSP expanded beyond desh�, Journal of Education for International Develop- reducing fertility to include increasing women’s ment 2.2, July 2006. 53 Costa Rican Investment Promotion Agency (CINDE), employment opportunities in both the formal and informal sectors. This was seen as an effec- 2009. Costa Rica Education Overview. Accessed at http://www.cinde.org/attachments/069_028_Educa- tive means of reducing rural poverty and driving tion%20Overview%202009.pdf. economic growth. These shifting objectives corre- 54 Instituto Nacional de Estadística y Censos (INEC), sponded with the growth of the ready-made gar- July 2009. Data from the 2009 Census “la Encuesta de ment (RMG) sector, and the creation of millions Hogares y Propósitos Múltiples.� 30 Fostering Women’s Economic Empowerment through Special Economic Zones percent) in 2008, the first year of the program, Education and skill development remains a key and 26 (59 percent) in 2009. The program had barrier to women’s upward mobility. Basic skills a positive impact on the students and the com- programs will help women build a platform to ad- pany. Upon completion of the internship, most vance in the future, and targeted professional de- students were offered a full-time position with velopment training for promising female workers the company. Upon completion of three months’ can help them advance in the near term. In certain full-time work, employees (including the for- countries, where mixing of genders is particularly mer interns) have access to free language courses sensitive, separate training courses for women and with 100 percent tuition reimbursement. After 6 men may encourage higher participation by women. months, employees can access free college cours- es with 100 percent tuition reimbursement. As a Business benefits from such programs include result of these investments, the company has an improving the skill base of the workforce. In employee base that is skilled and dedicated. addition, investing in workers’ professional de- velopment and implementing transparent up- ward-mobility policies helps reduce turnover and Obstacle 3. Lack of access to increase loyalty56 as well as improve product or Technical Skills and Education service quality and productivity. In Costa Rica, robust systems of subsidized technical training As noted earlier in this paper, SEZs provide signif- on technical skills and English-language skills icant and often unique opportunities for women to have contributed to a higher-skilled workforce enter the formal workforce. A remaining challenge and drawn higher levels of FDI in higher-skilled is providing opportunities for female workers to industries. Costa Rica has 95 technical schools advance beyond entry-level positions, which are and 60 universities, and the National Training often unskilled or low-skilled jobs. Institute (INA), an autonomous public institu- tion, offers free technical training. Costa Rica’s This study indeed found that though women tend investment in education and training has sup- to be the majority of unskilled or low-skilled ported the growth of higher-value export sec- workers in zones, the majority of supervisors re- main male. For example, in Bangladesh, detailed reports on 13 randomly selected factories revealed BEPZA Counselor research, April-May 2010. 55 McKinsey, “Making a market in talent�, May 2006; All 56 an average of 25 percent female supervisors com- Business, “Measurable payoff: how employee engage- pared to 60 percent female workers.55 Table 5 be- ment can boost performance and profits�, July 2004; low provides an example of how the percentage of Harvard Business School, Harvard Management Up- women decreases as job grade increases. date, “Rethinking Company Loyalty�, September 2005. TABLE 5  ■  National workers by gender and job level, Bangladesh Worker Office-based Assistant Officer (Executive-level) (minimum hourly wages) (higher hourly wages) (salary wages) Female as Female as Female as Zone Male Female % of Total Male Female % of Total Male Female % of Total CEPZ 43,244 83,045 66% 5,574 1,530 22% 5,550 1,670 23% DEPZ 28,900 33,708 54% 3,500 721 17% 2045 265 11% Source: BEPZA Zone Data September, 2009 Social and Cultural Factors 31 tors, including parts assembly, medical devices, rent practice was to hire supervisors externally, and electronics, aerospace, and financial and shared qualified supervisors tended overwhelmingly to be services (which represent 26 percent of produc- male.58 Promoting trainings to “up-skill� existing tive activity). By contrast, the textile and garment workers and encourage promotion from within industry, a lower-value sector, represents only 16 would likely disproportionately benefit female percent of activity in free trade zones.57 workers in companies where they represent the majority of low- and unskilled workers. Factories often provide entry-level training for workers, but rarely train on basic educational skills Interviewees commented that more effective poli- like literacy and numeracy, which female employ- cies and programs to promote from within would ees in particular may lack. In addition, entry-level likely also provide time and cost benefits. For ex- training is often on-the-job, so unskilled women ample, an existing worker is more likely to know will start as “helpers� and will work as such for 6 internal systems and thus will only require training months to a year on average. This limits the abil- on new job responsibilities, in contrast to a new ity of qualified workers to distinguish themselves hire. An existing worker will also have established in the way that they could in a dedicated training relationships with peers and staff and can build on program, and lengthens the time women are re- these in the work environment. This study found a quired to work in a lower position. few examples of successful promotion-from-with- in policies in Costa Rica and Jordan. Several factory managers expressed concern that investments in training workers beyond basic MM Corporate training to enable promotion from technical skills are wasted, because once a work- within, Costa Rica er is trained at a higher skill level, he or she is Professional development programs are common more likely to leave the factory for better-paying in enterprises in Costa Rica. For example, some work. One way to address this is to link comple- companies have internal training centers, called tion of skills training to promotion or salary in- “company universities.� One electronics manu- crease, coupled with commitments by workers to facturer has a training model that includes new remain in the factory for six months. This could employee training and on-the-job production-line increase training participation rates and trained training, as well as training and onsite coaching by employee retention rates. Another strategy to clients. This company also has an internship pro- overcome this dilemma is to ensure that train- gram with a local university for second-year uni- ing is generally more widespread across factories, versity engineering students. The company pro- making it less appealing for workers to switch vides its employees with a few hours of paid time factories post-training. Governments and zones off per week to continue their studies (28 percent can support this by creating subsidized programs of employees are currently studying), and provides in zones and promoting their uptake among zone free weekly English classes for employees at the investors. supervisor level and above. MM Promoting from within, Jordan Enablers One company in Jordan had an explicit policy of skills training and promotion from within. 3.1. Create Policies and Training Programs to Support Promotion from within 57 ILO “Costa Rica: Estudio Sobre las Zonas Francas.� Trainings to help workers advance within an ex- November 2007. isting place of work were found to be rare in the 58 Interviews, BEPZA Investors, June 2010; interviews, zones included in this study. Instead, common cur- Egypt, May 2010; interviews, Jordan, April 2010. 32 Fostering Women’s Economic Empowerment through Special Economic Zones The former general manager of an enterprise in MM Support uptake through public-private part- a zone built a systematic training program aimed nerships, Egypt at teaching local Jordanian workers the soft and The Egyptian government’s Ministry of Trade and technical skills needed for promotion and intro- Industry also offers a subsidized skills-training duced a promote-from-within policy. The former program for factories. Factories apply and pay 10– factory general manager reported that during a 20 percent of the training costs, while the ministry 20-year period, more than 200 supervisors were pays 80–90 percent and provides an onsite trainer.59 trained, all of whom were promoted from with- Training programs are run by three NGOs. Work- in, and that most middle managers, excluding ers who participate in the program develop im- engineers, were also promoted from within. The proved skills and managerial abilities and increase business benefited from the skills enhancement their opportunities for promotion. In turn, this en- through increased productivity and employee sat- ables factories to promote from within, extending isfaction. workers’ tenure rather than hiring from the outside. A primary challenge was that all trainees also held supervisory responsibilities and were expected to 3.3 Target Women Specifically for deliver results in a certain time frame, which at Training Programs times made some of them miss classes. Unfortu- Women may not benefit from skills-training pro- nately, the program was stopped when the compa- grams where they do exist because they are not con- ny underwent downsizing that cut the workforce sidered for participation, or they may lack access to and management in half. the targeted jobs themselves. Both the private sector and civil society can contribute to making women and girls more job-ready through specialized skills 3.2. Incentivize Enterprises to Provide training and job placement programs. Skills-Training Programs to Workers Female workers will benefit disproportionately MM Gap Inc. P.A.C.E. Program, India from skills-training programs because they often The P.A.C.E.—Personal Advancement, Career make up the majority of low- and unskilled work- Enhancement—Program targets women gar- ers, and because they are more likely to have less ment workers to help them realize their profes- education and limited access to training outside of sional potential. The program aims to make an the workplace. This study found several examples impact both in improving women’s lives and in of government incentive programs to help enter- enhancing workplace effectiveness and related prises provide training to their workers. business growth. Training modules include Com- munication, Problem Solving and Decision Mak- MM Government incentives, Costa Rica ing, Time Management, Executive Excellence, The free zone law states that (a) a company in Financial Literacy, Women’s Health, Legal Lit- the free zone that trains small and medium en- eracy, and Social Entitlements. Factory manage- terprise (SME) suppliers to become part of ment has noted improvements in the production the company’s supply chain receives a discount output of the training participants, as well as in through a fiscal credit, (b) the National Learning communication, anger management, leadership, Institute (INA) offers free specialized technical and punctuality.60 training and English courses to workers in free zones upon demand by companies, and (c) the 59 Interview: Ashraf Dowidar, Internal Trade Develop- government is committed to ensuring that uni- ment Authority, May 4, 2010. versities and technical institutes include curricula 60 ICRW / Swasti Health Resource Centre, “India—Gap that match the needs of the workforce of compa- Inc. P.A.C.E. Program for Women Garment Workers�, nies in free zones. reported on www.impactalliance.org, February 2010. Social and Cultural Factors 33 MM Initiatives for training and employment for above personal needs. Female factory workers are women, Jordan vulnerable to a myriad of health issues, including The Satellite Factory Program includes four malnutrition, poor menstrual hygiene, communi- months’ on-the-job training for Jordanian women cable diseases, pregnancy complications, lack of workers. After the women have completed this access to or incorrect use of family planning prod- training, they continue working full-time for the ucts, reproductive infections, and sexually trans- enterprise. There is also a public-private part- mitted diseases.61 nership in Jordan between the government and the Jordan Forum for Business and Professional Table 6 below shows how countries’ public ex- Women ( JFBPW). This partnership offers skills penditure on health varies and is positively linked training to local female workers to increase their with health indicators. Understanding key health employability and reduce the need of local enter- indicators is important for assessing the potential prises to hire foreign workers. The program, called of the workforce and designing effective programs “National Initiative for Training and Direct Em- for the delivery of services to address key needs ployment for Women,� will provide the private and boost competitiveness. sector with 5,000 trained women employees. The table above contains key women’s health in- MM Skills training and job placement program, dicators that can provide insight into the general Kenya status of women’s health within a country. For ex- TechnoServe’s Young Women in Enterprise Pro- ample, the variance between Kenya and Bangla- gram builds young women’s skills and connects desh versus China and Costa Rica on births at- them to formal-sector job opportunities. Tech- tended by a skilled health professional indicates noServe works with secondary schools and com- a lower rate of access to maternal health care in munity programs in the slums to reach the target Kenya and Bangladesh. This also correlates with 15–25 age group. The training program focuses higher levels of maternal mortality and can im- on business skills, life skills, communication, and ply a cultural devaluation of women’s health and entrepreneurship. Although the original objective women’s lives. of the program was to help young women start their own businesses, the young women requested A major challenge for women is the lack of training to help them access formal employment health awareness. In the majority of the countries opportunities. Once young women have gone included in this study, there is no sexual education through the initial training program, they are con- in schools and societal norms restrict women from nected with CareerLink, a job placement partner open discussions about their health within the of TechnoServe that helps women find jobs, in- family.62 As a result, women often lack both access cluding in zones. This program can provide em- to health care and the information that would help ployers in zones with skilled and educated young them better care for themselves. women who are able to communicate effectively within the workplace. Female zone workers may also face health and secu- rity risks outside of the zone that affect their ability to work. In most of the countries visited, most sig- Obstacle 4. Inadequate Knowledge nificantly El Salvador and Kenya, violence against of Women’s Health and Limited women is common and, particularly in Kenya, rape Access to Women’s Health Services 61 BSR, Women’s General and Reproductive Health in Global A significant concern and challenge for women in Supply Chains, October 2006. the countries included in this study is their health, 62 Interview: Dr. Mervat Nessiem, Center for Develop- often worsened by a tendency to place family needs ment Services, May 2, 2010. 34 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 6  ■  Health Expenditure and Indicators Costa El Indicators Bangladesh China Rica Egypt Salvador Kenya Jordan Philippines Public Expenditure on Health – $26 $144 $565 $129 $227 $51 $257 $88 Per capita PPP (US$ 2006) Public Expenditure on Health 7.4% 9.9% 21.5% 7.3% 15.6% 6.1% 9.5% 6.4% – as % of total government expenditure (2006) Women with Unmet Family 17% 2.3% 5% 9.2% 8.9% 24.5% 11.9% 22.3% Planning Needs Births Attended by Skilled 18% 97% 99% 74% 92% 42% 100% 60% Health Professional Maternal Mortality Rate (per 340 38 44 82 110 530 59 94 100,000 live births) Source: UNDP Human Development Report 2009, 2007/2008. and workplace sexual favors are extremely com- At the same time, female workers’ health has been mon.63 In addition, women suffer disproportion- demonstrated to have direct and significant eco- ately from the HIV/AIDS epidemic in the country, nomic implications for absenteeism and produc- as they are biologically more vulnerable to sexual tivity and, as a result, national productivity and transmission and it is their societal responsibility to businesses’ bottom line. For example, 51 percent care for family members who are HIV positive. of female workers surveyed in one Egyptian fac- tory said they had missed work because of pain- Another challenge is the lack of access to ful menstruation—a preventable situation if the health services. In the countries studied, class women had been more aware of treatment op- is typically the primary factor in determining a tions and able to talk about the issue more free- woman’s access to health care, and lower-income ly.65 Studies have also demonstrated the positive families will tend to direct their limited resources business impacts of workplace women’s health toward men’s and children’s health.64 Working programs, including a 2007 study in Bangladesh women often lack access to services because of that found a $3:$1 return on investment from a time constraints and the limited locations where women’s health program in the form of reduced public services are available. Women’s health absenteeism and turnover.66 services can also be costly, or lack of awareness may prevent women from accessing services that are available. Finally, as the majority of female workers in zones are migrants from rural areas or different countries, they are often not aware 63 Interviews, Kenya, various, May 10–19, 2010. of or are disallowed from accessing local services. 64 Sanja Kelly and Julia Breslin, eds., Women’s Rights in the In China, female and male migrant workers are Middle East and North Africa: Egypt, New York, NY: rarely covered by health insurance, because of Freedom House; Lanham, MD: Rowman & Littlefield, strict provisions of the household registration, or 2010. (http://freedomhouse.org/template.cfm?page=38 Hukou, system. This system only allows female 4&key=253&parent=24&report=86). 65 HERproject: Investing in Women for a Better World, May workers access to services located within the area 2010. where their household is registered, typically a 66 ESD, “Effects of a workplace health program on absen- rural homeland. teeism, turnover, and worker attitudes�, 2007. Social and Cultural Factors 35 Enablers female genital mutilation. By investing in women’s health education, the participating factories have 4.1. Workplace Health Education also benefited and increased their competitive- The average level of female factory workers’ health ness. Specific business benefits include: awareness is extremely low, which indicates the potential for significant improvement through MM Reduced health-related absenteeism: One fac- low-cost awareness-raising interventions. Such in- tory saw a reduction from 13.5 to 9.5 percent; terventions can be designed and implemented by the other from 15 to 10 percent; experienced NGO trainers or integrated into exist- MM Reduced requests for early leave, particularly ing workplace training and outreach programs. Po- for reasons related to menstrual pain; tential activities include informational events with MM Increased employee loyalty, especially among health experts and service providers as well as train- women workers: One factory saw a 5+ percent the-trainer or peer-to-peer training methods, both difference between the turnover rates of wom- of which take advantage of existing employees and en and men at the end of the project; communication networks to spread key messages. MM Improved productivity; MM Improved worker-management relations; MM Improving health knowledge and access, MM Improved worker concentration; and Egypt MM Increased leadership and communication skills To address low levels of health awareness among among workers. female factory workers67 and to demonstrate the benefits to businesses of factory-based health Challenges encountered during the program in- programs,68 a “health enables return� project was cluded time limitations for training within the implemented in three garment factories in Egypt factory, mostly tied to production peaks; resistance over the period 2009–2011. The model included from some factory managers; turnover of key pro- identifying peer educators in each factory, deliver- gram staff such as peer educators, nurses, and proj- ing monthly training sessions to the peer educators ect trainers; and cultural challenges in addressing on women’s health topics, and then encouraging sensitive women’s health topics. Challenges were the peer educators to spread their learning to peers addressed throughout the project using collabora- and be available to counsel female workers while tion, training methods for new recruits and peer at work. educators, and training materials formulated for dealing with sensitive issues. Factories in zones are a rare location where wom- en are away from their home and together in large A key factor in the program’s success was its fo- groups, creating a critical opportunity to offer cus on factory nurses’ involvement, development, peer-based learning.69 By starting with general and leadership. Nurses’ roles and performance ex- training and discussion of life skills, factory par- pectations were also expanded in some factories, ticipants have grown comfortable talking about to include counseling and factory-based pres- additional issues that are taboo in Egypt, such as ence—their role was made more proactive and reproductive health and family planning. As one factory worker said, the program has “broken the silence.�70 At completion, the program was found 67 Women’s General & Reproductive Health in Global Supply to have improved women’s health knowledge on Chains, October 2006. 68 ESD, “Effects of a workplace health program on absen- key topics including family planning, menstrual teeism, turnover, and worker attitudes�, 2007. hygiene, pre- and postnatal care, and sexually 69 Interview: Dr. Mervat Nessiem, Center for Develop- transmitted infections and blood-borne diseases. ment Services, May 2, 2010. Health behavior and attitudes also improved with 70 Focus group of HERproject peer educators, Lotus Gar- regard to hygiene, nutrition, a healthy lifestyle, and ment Factory, May 5, 2010. 36 Fostering Women’s Economic Empowerment through Special Economic Zones focused on preventative care, rather than reactive MM Providing Women’s Health Services, Bangla- and focused on basic treatment for accidents and desh, El Salvador, and Jordan emergencies. Factory clinics provide basic services and most have a doctor for a few hours a week, but they This program has the potential to be rolled out to are often ill equipped to address female heath is- factories operating in zones around the world. It is sues. Given the limited capacity of factory clinics currently being successfully implemented in more in Jordan, the General Trade Union of Workers than seventy factories in Bangladesh, China, India, in Textile Garment & Clothing Industries ( JT- Mexico, Pakistan, and Vietnam. GCU) has established and manages two zone- wide general medical clinics in Irbid and Al MM Creating networks of mothers, El Salvador Dulayl zones. Factories can pay the union a fee One garment factory in El Salvador provides a to treat their workers at the union clinic, which “Club Futura Mamá� (Future Mothers’ Club) as has more advanced medical services and women’s well as gynecological and pediatric services offered health care services including gynecology, obstet- by the zone health services in Export Salva and rics, and ultrasound. In Bangladesh, the Dhaka AIP zones. This club focuses on ensuring better EPZ has a hospital that provides prenatal care health for women employees who are pregnant or to female workers, and El Salvador’s American have recently given birth and for their children. Park and Export Salva zones have clinics with Prenatal activities include training on nutrition gynecologists on staff. and care of infants, and postnatal activities include counseling and assistance in caring for the child. MM Targeted health intervention: Anemia and The company brings in outside service providers intestinal worm treatment, India when needed for support. An anemia and intestinal worm treatment pro- gram and ROI study conducted in seven facto- By ensuring that its women workers understand ries in Bangalore, India, from July 2004 through how to properly care for themselves and their chil- March 2005 provided drug treatment, dietary dren, the company creates business value through a supplements, and awareness raising for women more satisfied workforce, and reduced absenteeism workers over a nine-month period. Health as- and turnover. This service is particularly impactful sessments and administration of drugs were since many of the workers come from rural areas delivered through a partnership with St. John’s where science-based reproductive health educa- Medical College, Bangalore. The program saw tion is limited. a reduction in workers who were anemic from 29.6 to 16.1 percent. Productivity rates for the treated group of anemic workers were increased 4.2. Provision of Women’s Health by 6–8 percent on average. With an average of Services Within the Workplace or Zone 30 percent of factory workers testing anemic in In addition to low awareness, female zone work- the study, treatment programs could be expected ers’ access to health services is quite limited. For to raise overall factory productivity by 2–3 per- example, in Chittagong EPZ, Bangladesh, workers cent.71 reported traveling up to one hour to visit a full- service hospital. At the same time, key women’s health services directly related to workplace at- tendance and productivity, such as pre- and post- natal examinations and care, gynecological exams, 71 Brown, D.K. et al., “Human Resource Management and family planning counseling and contraceptive Technology Diffusion through Global Supply Chains: distribution, could be administered in workplaces Buyer-directed Factory-based Health Care in India�, through zone facilities. World Development (2009). Social and Cultural Factors 37 Obstacle 5. Lack of Access to 4. Many centers simply comply with the literal Quality and Affordable Child Care law and offer a room without child-care pro- viders, or the child-care providers are under- Another major challenge for women in the zone qualified workforce is child care. In many developing coun- 5. Factories place limits on use of child-care cen- tries, traditional child care is often provided within ters, such as age or number of children the family by older relatives. However, as working 6. There is a cultural preference to leave the child in zones often requires migration to cities, female with a relative or trusted elder near home workers may not have such family nearby, which leads forces them to rely on “nonfamily child care�; In other countries, such as China, Costa Rica, and finding affordable, convenient, and quality child Kenya, no law requiring child-care provision ex- care is a struggle in these instances.72 ists. Reliable child care was found to be extremely The benefits to businesses from providing work- important to the women workers interviewed in place child care include reducing turnover, encour- this study. For example, in Kenya, female factory aging the return of new mothers to work, reduc- workers are paying almost 3 times their cost of ing absenteeism, and improving women’s ability to rent for good child-care services, and opt to live concentrate on work.77 The return of new mothers in the slums to afford these services. This indi- to work is also closely linked to upward-mobility cates that high-quality workplace child care can opportunities, as few factories interviewed give serve as a strong nonfiscal incentive for women women credit toward promotion based on previ- to remain in their job, thus increasing employee ous work in other factories. retention. A few of the countries included in this study have Enablers laws requiring workplace child care to be provided. In Bangladesh, for example, the labor law requires 5.1. Workplace or Zone Child Care that companies provide a “children’s room� for ev- Quality and affordable child care within the work- ery 40 female workers with children below 6 years place or within zones can help address this ob- of age.73 This law is primarily directed at the RMG stacle and help women reduce absenteeism and sector in Bangladesh, which represents a signifi- stay at work after they have children. Zones offer cant number of enterprises in the country’s SEZs. a unique opportunity to create shared services, and Unfortunately, this study found that in practice the to reduce the burden of monitoring service quality law was not very effective. Workers interviewed re- by having fewer and larger child-care centers. This ported they were not using the facilities because study found no existing examples of zone child the services provided were inadequate, inacces- care, but did find examples of successful workplace sible, or culturally unacceptable. child-care programs. Specific reasons given for underutilization of the child-care centers included: 72 Catherine Hein and Naomi Cassirer, Workplace Solu- 1. They are not secure or oversight is poor (re- tions for Childcare, ILO (2010). 73 Section 94, Bangladesh Labor Law 2006. ported by 84 percent of interviewees)74 74 BEPZA Counselor research, April–May 2010. 2. The center is too small or poorly ventilated (16 75 BEPZA Counselor research, April–May 2010. percent)75 76 BEPZA Counselor research, April–May 2010. 3. Transporting children to zones is a challenge 77 Catherine Hein and Naomi Cassirer, Workplace Solu- (16 percent)76 tions for Childcare, ILO (2010). 38 Fostering Women’s Economic Empowerment through Special Economic Zones MM Providing workplace child care as a means to able, and access to water and electricity for cooking reduce absenteeism and improve productiv- and washing. In many countries, such housing will ity, India also need to be gender-segregated by building be- Golkadas Images Private Limited has sixteen fac- cause of cultural sensitivities about single men and tories employing approximately 13,500 people in women having ready access to each other. and near Bangalore, India. 85 percent of Golka- das Images’ employees are women. The company Living conditions can have significant time im- established a workplace “crèche� (child-care cen- plications for women, for both their personal hy- ter) in one factory in Bangalore in response to a gienic needs as well as their responsibilities for demonstrated need among workers, as well as a cooking and cleaning at home. A 2000 study in subsequent national law requiring such services. Bangladesh found that female garment workers The crèche is available for workers’ children age used bathrooms shared “between 16–22 board- 6 months and up, and there is no waiting list or ers, on average, and cooking gas burners or heaters restrictions on usage. Since creating the crèche, shared between 10–15 families.�80 Golkadas Images’ management has observed im- proved productivity and attendance at work by fe- male workers with children.78 Enablers 6.1 Address Women’s Unique Needs at Obstacle 6: Substandard or Unsafe Home through Policies and Services Living Conditions, Located far from Living conditions, housing, and transportation Place of Employment impact both the quality of life of women workers as well as productivity, absenteeism, and turnover Female workers in zones face several challenges re- at the enterprise where they work. Some zones and lated to their living conditions, and these challeng- enterprises have tried to identify innovative solu- es can impact their ability to go to work. Poor qual- tions for housing and transportation challenges. ity of accommodations and basic services, excessive distance between home and zone, and unavailabil- MM Zone-organized transportation, Costa Rica ity of safe and reliable transportation to and from In Costa Rica, transportation can be a logistics and work are the main issues female workers face. safety challenge for workers who live in commu- nities located varying distances from the zone and In most of the countries included in this study, work different shifts, who therefore do not always the majority of female workers are young, single have access to public transportation; moreover, rural migrants who must find their own housing public buses are often crowded and are not always or shared housing near their place of work. The safe, particularly for women. As a solution, the zone majority of female workers in zones in Kenya and administrator worked with companies to identify a Bangladesh live in slums, where sanitation is poor, bus route that meets the needs of the workers, and access to water and electricity are limited, and, particularly in Kenya, high risks to personal and property security exist.79 In other countries stud- 78 Catherine Hein and Naomi Cassirer, Workplace Solu- ied, workers live in slightly better conditions, but tions for Childcare, ILO (2010). 79 Interviews, various, May 2010; Kibera slum visit and still face significant challenges regarding transpor- tation access and proximity to work. interviews, May 13, 2010. 80 Afsar, Rita (2000), “Gender Dimensions of labor mi- gration in Dhaka city’s formal manufacturing sector�, Dormitory housing, common in Chinese SEZs, is in Women’s Employment in the Textile Manufactur- one option that can help alleviate these challenges. ing Sectors of Bangladesh and Morocco, ed. By Carol Such housing must have hygienic facilities avail- Miller and Jessica Vivian, Geneva: The Institute, 2002. Social and Cultural Factors 39 established a contract with a private bus company corner the transportation market and control the for a defined route at established prices. The em- prices. ployees purchase bus tickets and therefore are liable (not the zone or enterprise); however, companies MM Satellite factories located near rural villages, often subsidize the cost of the tickets. Workers Jordan save time by commuting on this express bus, and A satellite factory program in Jordan brings zone- enjoy increased safety and convenience from being status factories to workers by establishing factories picked up in their community and arriving inside in rural areas that hire almost entirely Jordanian the zone. The enterprises benefit from workers’ in- women. These factories are established through a creased punctuality, enhanced productivity (workers public-private partnership whereby the Jordanian are less tired given the shorter and safer commute), government provides incentives and financial sup- and higher levels of control and security within the port, including zone status,81 for enterprises to lo- zone, as only private buses carrying zone workers cate a factory in rural villages and to provide four are allowed to enter the zone. months’ on-the-job skills training for Jordanian women. The program also provides transportation Program costs are low, and most drivers obtain from the factory to the workers’ communities. The the required government permit and pay a related program includes intensive community outreach to monthly fee of US$200. In the twelve years that women and their families to encourage uptake of the service has been in operation, the number of job opportunities. The five satellite factories cur- workers using it has stayed consistent, and at pres- rently employ 1,200 Jordanian women. ent it moves a population of 6,000 workers to and from their jobs. 81 Individual enterprises are awarded the financial and Although it has been very successful, the program logistical benefits of locating within a physically de- faces some challenges related to competition from lineated SEZ, although they are not actually located a small number of private transport providers that there. Section 3: Poor Investment Climate and Lack of Business Support Services T he opportunities for women to invest in zones MM Intimidating, time consuming, and bureau- and for female entrepreneurs to benefit from cratic administrative requirements for starting opportunities linked to zones were evident in a formal business; all the countries studied. Much of that potential is MM Unavailability of business support services such currently untapped—there are few, if any, successful as training on business skills, management, and examples of programs or policies targeting female market identification; and entrepreneurial investment in zones. MM Lack of access to capital and finance. In some countries, limited female entrepreneur- No good examples were found of programs specif- ship in the zones is consistent with businesses ically targeting women looking to invest in zones. outside the zone; for example, women account Although there is currently limited female entre- for only 4% of entrepreneurs in the formal sector preneurship in zones, the potential exists for wom- in Jordan, even though 90 percent of businesses en to own factories and small businesses in zones in Jordan are SMEs.82 In other countries, such or linked to zones—for example, input businesses as Bangladesh and Kenya, female entrepreneur- that serve clients in a zone. Another opportunity ship is relatively strong, particularly in the infor- is to encourage women-owned service businesses, mal economy. However, women struggle to cre- such as cafes, small shops, or privately owned day- ate businesses in zones or businesses that link to care centers. For these opportunities to become a the export market more generally.83 This is partly reality, however, female entrepreneurs require ac- linked to the fact that women-owned businesses cess to information on international markets and on average tend to have fewer employees and exporting, as well as access to finance and technical lower sales and invested capital as compared with assistance to navigate the process of establishing a businesses owned by men.84 Smaller businesses business in a zone. with limited growth potential also have limited investment opportunities in most SEZ programs, as these programs tend to favor larger, export-fac- ing businesses. 82 USAID. 2007. Jordan Gender Assessment: Sustainable Achievement of Business Expansion and Quality (SABEQ). 83 Interviews with female entrepreneurs, Bangladesh Feb- Female entrepreneurs face the following obstacles to investing in zones: ruary 2010, Kenya May 2010. 84 World Bank, Women, Business and the Law: Measuring gender parity for entrepreneurs and workers in 128 econo- MM Lack of access to land; mies, 2010. 42 Fostering Women’s Economic Empowerment through Special Economic Zones Obstacle 1. Lack of Access to Land BOX 8  ■  Land and Mortgage Law Checklist Women are hindered from accumulating assets and growing their businesses in countries where wom- Can women acquire, occupy, and manage land on the same 1.  terms as men? Are there any specific legal provisions in the en’s access to land is constrained by legal restrictions constitution or any other laws conferring such powers over on land ownership and leasing, inheritance laws, land on women, or are such powers recognized as a part of mortgage laws, customary laws, or other adminis- the regular law without the need for special provisions? Are trative barriers. Where the overall legal and regula- there laws that forbid or prevent women from acquiring and occupying land in their name? tory environment in a country constrains women, Is the process for acquiring land in the SEZ the same for a 2.  they may often not be aware of or able or confident woman as for a man? For example, does a woman require the to pursue entrepreneurship opportunities within consent of a male relative, or does she need to produce any zones, even in cases where SEZ laws and regula- additional documents? Can a woman register title to land in tions do not overtly prevent investment by women. her name and do so without the need for permission from a male relative? As a matter of law or practice, are there any special rules or 3.  restrictions on women obtaining a mortgage to finance the Enablers development of land in an SEZ that do not apply to men? If so, what are they and are they grounded in law or a matter of practice by mortgagors? 1.1. Enact Laws and regulations that Give Women and Men Equal Access to Does marital status affect any of the answers given above? If 4.  so, how? Land SEZ development is frequently associated with the provision of serviced sites. In association with this, improved land-use and land-rights-acquisition laws and regulations may be developed. The re- women seek to interact with bureaucratic proce- sulting arrangements for investors to acquire land dures, they are much more likely than men to suffer in SEZs by purchase or lease should be reviewed harassment (including sexual harassment) and be through a gender lens. The following checklist (Box disadvantaged in their dealings with public officials. 8) is designed to ensure that the legal framework for land acquisition enables women business own- ers to acquire and develop SEZ land on the same Enablers basis as their male counterparts. This also fits the incubator role of SEZs, where reforms are piloted 2.1. Streamline Administrative that can then be scaled up to the national level. Barriers that Hinder Women within SEZ Laws and Regulations; adopt Gender-Equality Policies and Obstacle 2. Administrative Guidelines for SEZ Operators Requirements Where SEZ development is designed to include piloting of improved approaches to issues in the There is growing evidence that women can find it wider investment climate—such as business en- more difficult than men to start and operate their try, tax, or import or export procedures—a gender businesses in the formal economy. Legal or cultural lens should be applied to highlight the constraints limitations on their ability to travel may mean that of women entrepreneurs in the formal economy women cannot get to a registry to file the neces- and to address those challenges within the SEZ sary documents; time poverty may also constrain regulatory framework. Zones’ piloting and incu- women’s ability to undertake the bureaucratic steps bating role could be expanded to streamline ad- necessary to register a business, apply for licenses, ministrative processes required for business start- or deal with customs authorities; and often when up, licensing, and trade logistics and to introduce Poor Investment Climate and Lack of Business Support Services 43 and implement new policies and procedures that would eliminate the barriers specific to women BOX 9  ■  Institutional Gender-Equality entrepreneurs. Checklist for SEZ Developers, Managers and Operators In addition, modern best practice is for SEZs to be developed and administered by private-sector Does the organization have a customer charter that includes 1.  reference to gender-equality issues? rather than public bodies. Even when laws and Does the organization have formal links with women’s orga- 2.  regulations are gender-neutral, the attitudes and nizations (business associations, women’s employee asso- practices of such bodies (whether public or pri- ciations) for consultation and input on policy development, vate) can discriminate against women. The follow- management, and operations? ing checklist will help SEZ authorities assess the Is the organization’s staff trained to handle gender issues sen- 3.  extent to which their policies and practices facili- sitively? tate cultivation of both female and male business Are women employed in the organization, especially at levels 4.  owners. Where the SEZ authority is not yet in where they interact with the public and are empowered to make decisions? existence, the checklist should be discussed with Are institutional systems in place to collect and monitor gen- 5.  the government body or ministry responsible for der-disaggregated data, and are these regularly reported on? advancing SEZ development as a means of incor- Is gender equality seen as an explicit goal of the organization? 6.  porating a gender lens into that authority. Are gender-equality perspectives evident in the major policy 7.  and planning documents guiding the work of the institution? Are SEZ site vacancies advertised in locations and through 8.  Obstacle 3. Unavailability of media as likely to be accessed by women as by men? Business Support Services such as Training on Business Skills, Management, and Market Identification into because their businesses lack the necessary scale and financial backing for exports, and they Individual and group interviews with female entre- lack the networks necessary to build an interna- preneurs revealed that though small-scale female tional client base.86 entrepreneurs were relatively common, expansion of their businesses into more medium-sized en- Another great need is access to training and men- terprises was a challenge shared by all female en- tors. Women entrepreneurs in the Middle East trepreneurs. Growing businesses, and in particu- and Africa are interested in receiving external lar expanding local and domestic businesses to be training and support services.87 In Kenya, female export-facing, requires networks and know-how entrepreneurs often learn better business practices that the majority of female entrepreneurs lack. The through accidents and emergencies—for example, three main challenges reported by interviewees learning about taxes when the tax man comes to were acquiring business-management skills and report that their taxes have not been filed prop- knowledge; identifying markets, marketing prod- erly. As such, female entrepreneurs need experts ucts, and acquiring export-specific knowledge; and gaining access to a business network. 85 Female entrepreneur focus group, IFC Nairobi, May In Kenya and Bangladesh, though strong cultures 10, 2010. 86 Interviews with female entrepreneurs, Bangladesh Feb- of female entrepreneurship exist,85 female entre- ruary 2010 and Kenya May 2010. preneurs have difficulty scaling up their businesses 87 FC GEM and The Center for Arab Women Training into sustainable operations. Export businesses in and Research, “Women Entrepreneurs in the Middle particular, which are often predominant within East and North Africa: Characteristics, Contributions zones, are particularly difficult for women to break and Challenges�, June 2007. 44 Fostering Women’s Economic Empowerment through Special Economic Zones and mentors to teach them the basics and prepare MM Entrepreneurship and leadership training them for what is to come in order to avoid costly program for women, Egypt mistakes. The Women’s Entrepreneurship and Leadership Program offered by American University of Cai- The Kenya Export Council has information about ro and Goldman Sachs’ 10,000 Women program exporting on its website and offers one-on-one as- helps grow and develop female entrepreneurs in sistance in four centers in Nairobi. However, too the Arab region. One hundred women are selected few people, particularly women, knew about the each year for a scholarship to attend a five-week services or where they were available. Another certificate program in entrepreneurship at the program, in the Athi River Zone in Kenya, offers a American University of Cairo. As part of the pro- system that allows people to lease a space for coop- gram, they attend classes and participate in activi- erative use. This is a useful opportunity for women, ties focused on personal leadership development, because they often lack the capital to expand to an work-life balance, negotiation skills, management, export scale independently.88 finance and accounting, competitive strategy, oper- ations, marketing, and the legal aspects of starting a business. The program covers all costs of tuition, Enablers instruction, and accommodation. An evaluation after the program’s first year found an increase in 3.1. Linkages to Training Programs, women’s business expertise and management skills. Networks, and Centers Targeting These skills can be translated to starting their own Female Entrepreneurs business ventures, while also making them more Women entrepreneurs in Bangladesh and Kenya marketable in the broader workforce. expressed the need for female entrepreneurship centers, where women could access information MM Chamber of Commerce Program for Female and training on topics like writing a business plan, Entrepreneurs, Costa Rica creating a budget, and information and commu- In Costa Rica, the Chamber of Commerce launched nication technologies (ICT) skills, and could get a national program for the Development of Women enrolled in mentorship programs with other female Entrepreneurs in 2009.90 Although not currently entrepreneurs. This study found innovative pro- active in zones, the initiative provides relevant skills grams in Jordan, Egypt, Costa Rica, and Tunisia training to support women entrepreneurs, and if the that are working to address these barriers and max- program is expanded to include entrepreneurship imize the potential of female entrepreneurs. Plenty within the zones, it could positively impact the op- of opportunities remain to invest in this area. portunity for women entrepreneurs and innovation. The program builds on the credibility, resources, and MM Export toolkit, Jordan convening power of the Chamber to specifically tar- To help address lack of access to markets and edu- get the facilitation and creation of business initia- cation and business management training, an ex- tives to support the development of women-owned port toolkit for women was produced.89 The tool- small businesses and to incorporate women’s voices kit provides a step-by-step explanation of how to into a largely male-dominated business community establish an export business, from the inception of and chamber. The objectives of the program include the idea through to accreditation, marketing, and sales. It has the potential to increase the number of female factory owners in the EPZs and to be 88 Female entrepreneur focus group, Kenya, May 2010. replicated in other countries, such as Bangladesh, 89 USAID SABEQ and JFBWP Access to Export Tool- where women entrepreneurs identified their lack kit in Arabic http://www.sabeq-jordan.org/SABEQ_ of knowledge of export processes and procedures Files/633371800617959856.pdf. as a barrier to owning factories. 90 http://www.mujerempresariacr.com/ Poor Investment Climate and Lack of Business Support Services 45 representing businesswomen, promoting spaces for service and retail sectors, into zones, which tend female entrepreneurs to develop their businesses, to be dominated by large, export-oriented com- creating networks for women business leaders to panies. This status quo limits economic partici- establish and strengthen their participation in the pation within zones to ownership of factories or national market, and promoting the spirit of en- other large export-oriented businesses. In this trepreneurship among women. Program activities context, SEZ operators can play a role in facilitat- include training, counseling, a Web site with on- ing supply-chain linkages to female-owned small line informational resources, an annual conference, or medium businesses that could offer products and technical assistance and support to women or services to enterprises in zones, such as but- business owners. As part of the opportunities for ton or zipper manufacturing, or privately run day- women entrepreneurs, a distance learning course care centers. Generally, women’s lack of access in partnership with the University of Monterrey or know-how limits their ability to market their in Mexico was offered to women in the program products to companies operating in zones.91 Local in Costa Rica. Through this program, the women supplier linkage programs could specifically target were assigned local tutors and took courses in law, women’s businesses, which would provide them accounting, marketing, human resources, manufac- with increased growth opportunities and access to turing, information technology, and more. The first skills development. 10,000 women received a diploma and graduated in the summer of 2011, and they will use the knowl- MM Supplier linkage program, Costa Rica edge they gained to build their small businesses. The National Costa Rica Provee (Costa Rica Sup- plies) Program encourages incorporation of Costa MM Center to mobilize female handicraft makers Rican companies into the supply chains of MNCs. for export, Tunisia As a part of Costa Rica Provee, a supply-chain link- Vital Voices, the Women’s Chamber of Commerce age study was conducted to identify the inputs and in Tunisia (Chambre Nationale des Femmes Chefs raw materials required by companies in Costa Rican d’Entreprises [CNFCE]), and the Middle East Free Zones. Study results were compared to exist- Partnership Initiative (MEPI) recently launched a ing Costa Rican companies’ products and services. program in Tunisia to create a “Center for Excel- A map was then created to identify Costa Rican lence of Women Entrepreneurs in Handicrafts.� companies that could serve the MNCs in the zones. The center will serve as a “one-stop shop� for female artisans in Tunisia, providing training on a range of Costa Rica Provee also includes incentives for topics including product design, bookkeeping, cost- MNCs to invest in training these Costa Rican ing and pricing, and marketing. The training courses companies, and encourages other companies to will be specially designed to promote “export-read- locate in Costa Rican zones in order to service ex- iness� among the women. The center will also have isting MNCs in the zones. Additionally, the zone an IT facility, to provide training and access to com- law provides an extra incentive for suppliers. If 40 puters for women. The success of the program will percent of a supplier’s production is sold to compa- also be supported by public-private partnerships nies in the zone, that supplier can benefit from the with government ministries and local industry. incentives provided to companies located in the zone, even if it is not located in the zone or desig- nated as belonging to a strategic sector. As a result 3.2. Supplier Diversity Programs and of this initiative, several Costa Rican companies Provision of Incentives to Source from have been successfully integrated into enterprise Local Women-Owned Businesses The study has found that it may prove difficult to expand the successful model of small, female- 91 Interviews, Female entrepreneur organizations, Febru- owned businesses, which are primarily in the ary 2010. 46 Fostering Women’s Economic Empowerment through Special Economic Zones supply chains. For instance, through this program, While no good examples were found of access- an electronics company identified potential sup- to-finance programs specifically targeting women pliers, and grew its local supplier base from zero looking to invest in zones, many microfinance and when it entered Costa Rica in 1996 to over 300 in other programs exist that could be linked to in- 2010. While the program is not specific to wom- vestment opportunities in zones. For example, in en’s entrepreneurship, the model could be adapted Costa Rica in 2010, in recognition of women as to target women entrepreneurs. potential leaders in economic recovery from the global recession, the National Bank released finan- cial programs targeting women, including a credit Obstacle 4. Access to Finance card for women only and “Banca Mujer,� a suite of financial services for women, including mil- Access to finance for business start-up and opera- lions of dollars in new loans for businesswomen.95 tions is a major issue globally for women entrepre- Zone authorities can work together with banks, neurs. A 2007 IFC study of women entrepreneurs microfinance institutions, and women’s entrepre- in the Middle East and Africa found that though neur groups to build links and support systems for 50–70 percent of women surveyed had sought ex- female entrepreneurs looking to invest in zones. In ternal financing for their businesses, very few had addition, existing banks within zones can develop received financing from a formal financial institu- gender-equitable service offerings, such as loans tion.92 In Jordan, businesswomen believe they are available to women. discriminated against on the basis of gender when applying for a loan, through higher collateral, less favorable responses to new business ideas, and the 92 IFC GEM and The Center for Arab Women Training requirement to provide a spousal guarantee.93 Only and Research, “Women Entrepreneurs in the Middle 14.2 percent of women business owners who re- East and North Africa: Characteristics, Contributions sponded to the survey acquired business or com- and Challenges�, June 2007. mercial bank loans, 9.2 percent received micro- 93 USAID. 2007. Jordan Gender Assessment: Sustainable finance loans, and 8.1 percent took out personal Achievement of Business Expansion and Quality (SABEQ). 94 IFC and Center of Arab Women for Training and Re- bank loans. Other access–to-finance challenges search. 2007. Women Entrepreneurs in the Middle East identified in the study by Jordanian women busi- and North Africa: Characteristics, Contributions and Chal- ness owners include high interest rates, a compli- lenges. cated application process, lack of collateral, and 95 International Museum of Women, “Costa Rica: A lack of business track record.94 Model Country?�, November 2010. Chapter 3: Recommendations T his chapter presents the study’s main rec- Service and capacity-building recommendations ommendations to maximize women’s are more specific, with the assumption that they economic participation in SEZs through will be undertaken based on needs identified in a decent working conditions, opportunities for pro- baseline assessment of the targeted zone popula- fessional advancement, and access to investment tion. Individual governments and zone operators opportunities within SEZs to start and grow their will need to assess whether the need exists, and businesses. The recommendations focus on invest- then apply the corresponding recommendations if ments that create further opportunities for female appropriate. workers and entrepreneurs, and that also generate economic benefits at the enterprise, zone, and/or To implement the recommendations presented in national levels. this section, three key stakeholders—the national government, the SEZ authority and operator, and The recommendations are categorized around 3 the zone investors (enterprises)—will need to levels of interventions as follows: work in partnership to gain the best results. This section highlights the specific role each of these MM Creating a legal, regulatory, and policy frame- stakeholders can play. work MM Strengthening enforcement of policies and en- MM The national government should ratify out- suring compliance by investors standing international conventions and trea- MM Providing improved infrastructure for services ties, enforce compliance with national laws and facilitating capacity building pertaining to women’s safety and employ- ment, and facilitate collaboration of govern- The policy framework and enforcement recommen- ment ministries on improved training for girls dations are left broad to allow for country-specific and women as well as effective utilization of modifications. Should a government wish to make national gender policies and national women’s regulatory modifications to its zone program to bet- institutions for the economic empowerment ter promote women’s economic empowerment, it of women. is recommended that it work in collaboration with MM Zone authorities and operators should cre- the relevant ministries and stakeholders identified ate zone-level social services that are sensi- in the recommendations below to develop country- tive to women’s needs, support investment specific approaches. opportunities for female entrepreneurs, pro- 48 Fostering Women’s Economic Empowerment through Special Economic Zones mote female workers’ skills development, and Creating a Legal, Regulatory and I.  establish a zone gender committee where ap- Policy Framework plicable. MM Individual enterprises should comply with national labor law and international conven- I.1. Create Laws to Enable Women’s tions, contribute financially to zone-wide so- Full Economic Participation cial services, support female workers’ right to Governments should ratify all the ILO Core Con- redress and representation, promote women’s ventions, the International Covenant on Civil and skills development, support female workers’ Political Rights, the International Covenant on health, facilitate the growth of female workers’ Economic, Social and Cultural Rights, and the financial assets, and participate in any zone- UN Convention on the Elimination of All Forms wide gender committee. of Discrimination Against Women (CEDAW). Ongoing stakeholder engagement and cross- In addition, governments should ensure that the na- sector collaboration will be critical to the success tional labor law and any zone-specific labor laws or of these recommendations. Key stakeholders in- specialized provisions protect the fundamental hu- clude unions, NGOs, relevant government min- man rights and labor rights of female workers. The istries, and female entrepreneurs. Also critical, national labor law should support women’s econom- monitoring and evaluation will support contin- ic participation and equal access to jobs and wages. ued investment by demonstrating the business Some key gender-relevant provisions include: and development impacts of these recommended actions. Tools and tips for successful stakeholder MM Maternity leave, paid sick leave for pre- and engagement are provided in Chapter 4, along postnatal care, reduced workplace responsibili- with a full list of sample monitoring and evalu- ties for pregnant workers ation indicators. MM Child care TABLE 7  ■  Summary Recommendations, Legal, Regulatory Policy Framework Responsible Recommendation Stakeholder(s) Example(s) Benefits 1. Create laws to enable Government Costa Rica and the Philippines are the • Increase in female labor force participa- women’s full economic countries in this study with the broadest tion rate participation safeguards of laws and regulations • Decrease in discrimination against affecting women. women • Increase in women’s advancement/ upward mobility • Increase in women’s productivity Create policies to support fe- 2.  Government, Zone No examples. • Diversify and localize zone investment male entrepreneurs’ access Authority Potential policies could include quotas portfolio to zones, as either investors, for land dedicated to female inves- • Increase investment in zones suppliers, or small-business tors or input business given to female • Increase domestic backward linkages owners entrepreneurs 3. Improve collaboration Government Costa Rica National Institute for Women • Creation of gender-sensitive policies between national com- (INAMU) worked with the Ministry of • Strategic alignment of national policies mittees or ministries Labor and Social Security to create the • Accountability for implementation of women/gender and “National Policy about Women, Work of principles outlined in “National ministry of labor and Employment.� Women’s Policy� Recommendations 49 MM Sexual harassment in the workplace 1. As owners of small businesses in zones, such as a MM Equal treatment and payment for equal work café or restaurant, dry-cleaning, or small shops; MM Nondiscrimination based on pregnancy or 2. As input suppliers to enterprises in zones, such marital status as Costa Rica’s National Linkages program (see Costa Rica case study); and When creating such laws, key stakeholders should 3. As enterprise owners of their own export-ori- be consulted, including women’s legal advocates, ented business. workers’ organizations, and women’s health ser- vice providers. This will help ensure that robust Regulatory enablers could include zone require- laws are written that will serve women’s interests, ments for investors to buy a quota of their in- and will not heighten their vulnerability in the puts from female-owned input suppliers. In some workplace. zones, nonexport service businesses (not including traditional services such as banks, postal services, Governments can also explore potential incentive and expedited shipping services) are not encour- programs to encourage compliance with gender- aged or are not legally allowed. Allowing and en- relevant laws regarding, for instance, maternity couraging such businesses to locate in zones may leave and child care, which often have unintended give opportunities to services often dominated by consequences for women workers because of the women, such as cafes, small groceries, and small- perceived cost to businesses. Public-private part- scale consumer-product retailers. nerships to subsidize the costs of compliance can help reduce discrimination against married and This study found all three forms of investment pregnant women. For example, Jordan’s Social by women-owned businesses to be currently very Security Corporation (SSC) conducted a study rare. and found that access to child care is a major bar- rier for women who wish to enter the workforce. The SSC is now exploring potential models that I.3. Improve Collaboration Between would enable women workers’ access to affordable National Committees or Ministries child care. of Women or Gender and Ministry of Labor to Support Women’s Economic Opportunities in Zones I.2. Create Policies to Support Some countries included in this study have already Female Entrepreneurs’ Access to established women’s institutes or committees, such Zones, as Either Investors, Suppliers, as Costa Rica’s National Institute for Women or Small-Business Owners (INAMU), the Salvadorian Institute for the De- In partnership with zone authorities and opera- velopment of Women (ISDEMU), the Jordanian tors, governments can help increase investment National Commission for Women ( JNCW), and opportunities for female entrepreneurs in zones. the Egyptian National Council for Women. Other From a regulatory perspective, quota systems countries have dedicated government ministries could be introduced to promote investment by that focus on gender and women’s issues, such women-owned businesses or supply-chain link- as Kenya’s Ministry of Gender and Bangladesh’s ages to women-owned businesses. Additionally, Ministry of Women and Children. In Jordan, the regulations could be changed or expanded to al- JNCW requested that each government depart- low small service businesses to set up operations ment have a “gender focal point� to be the liaison within zones. with JNCW, sitting on the JNCW Gender and Public Sector Committee, and to incorporate gen- Investment in zones by female entrepreneurs could der considerations into the mainstream of each occur at three levels: department’s work. 50 Fostering Women’s Economic Empowerment through Special Economic Zones The government should work to increase and im- II. Strengthening Enforcement prove cross-collaboration between ministries of of Policies and Ensuring labor and trade, education, and health; existing Compliance by Investors women’s institutes or committees; and private- sector entities and zones. The collaborators should share the objectives of ensuring that women are II.1. Maintain an Effective and getting equal access to economic opportunities Gender-sensitive Enforcement System and that their rights are being effectively protected Many countries explored in this study have some in the workplace. For example, in Costa Rica, IN- strong gender-relevant laws on the books. However, AMU worked with the Ministry of Work and So- as with labor laws in general in many developing cial Security to create the “National Policy about countries, enforcement remains a significant chal- Women, Work and Employment.� lenge. Maternity laws are regularly ignored or, as observed in Kenya, lead many employers to give fe- male employees only temporary contracts to avoid honoring the regulatory requirements. Interviews in TABLE 8  ■  Summary Recommend: Enforcement of Policy and Ensuring Compliance Responsible Recommendation Stakeholder(s) Example(s) Benefits 1. Ensure efficacious enforce- Government, Zone In El Salvador, there is a gender • Higher rates of awareness of gender-sensitive ment of gender-relevant Authority unit within the Inspection Divi- issues and noncompliance laws, and train gender-sensi- sion of the Ministry of Labor. • Higher rates of identification of gender-sensi- tive enforcement officers Jordan’s Ministry of Labor has tive noncompliance • Higher rates of compliance established offices in zones to • Improvements in working conditions for enhance enforcement. women  omply with legal require- 2. C Enterprise Vietnam factory implements • Reduce risk ments pertaining to fe- worker engagement and rights • Enhance reputation male workers’ labor rights and responsibilities program • Increase productivity and worker satisfaction and basic human rights and improves compliance and • Reduce absenteeism and turnover reputation of brand • Attract and retain workforce Establish national or zone- 3.  Government, Zone The JNCW has a women’s • Higher rates of identification of gender-related level grievance mecha- complaint office, which receives noncompliance nism specially targeted to complaints about violence • Higher rates of compliance with laws women against women and workplace • Improvements in working conditions for discrimination and harassment. women and job satisfaction Create or support the creation 4.  Zone, Gender committees at Home- • Increase worker engagement of women’s committees at grown Flower Farm, Kenya, pro- • Reduce health- and violence-related absentee- Enterprise zone and enterprise levels vide forum for female workers ism and turnover to voice concerns and address • Build employee loyalty and improve commu- violations, and discuss potential nication improvements.  onduct a gender diag- 5. C Government – In Jordan, USAID conducted • Help determine regulatory and social services nostic to assess women’s Department of the Jordan Gender Assessment: needs of zone “population� economic participation as Statistics, National Sustainable Achievement of • Demonstrate economic benefit based on investors and workers in Data; Zone Business Expansion and Quality women’s role in the labor force zone program Recommendations 51 Bangladesh revealed that many women hide a preg- trained to reduce the likelihood of harassment and nancy from their supervisors to avoid being forced discrimination, and to improve the effectiveness of to take the leave for prenatal care guaranteed under policies, such as those allowing reduced responsi- law, because the leave is rarely paid in practice.96 bilities for pregnant workers that are in place in some enterprises. Enforcement should be universally improved in trade zones, and should be used as a competitive Key focus areas should include fair and equal wag- differentiator for attracting investors, offering them es, a voice for women in workers’ associations and/ a way of limiting risk exposure. Zones should seek or organized labor, freedom from sexual harass- opportunities to participate in collaborative audit- ment and discrimination, child-care provision, and ing programs, such as the ILO/IFC Better Work adherence to women-specific laws. Initiative, currently active in Cambodia, Haiti, Jor- dan, Lesotho, and Vietnam. Zone authorities should explore establishing their own monitoring commit- II.3. Establish National or Zone-level tee to maintain standards and promote continuous Grievance Mechanism improvement. An example of a successful program Safe and responsive grievance mechanisms are re- is the Bangladesh Export Processing Zone Author- quired to help women exercise their rights and to ity (BEPZA) Counselor program, which provides ensure remediation of some kind where they are 56 counselors to assess social and environmental violated. Grievance mechanisms are related to ef- compliance in zone-based enterprises.97 In addition fective judicial and nonjudicial remediation; how- to improving general enforcement, enforcement of- ever, for most female workers and entrepreneurs an ficers should receive additional training on gender- additional step is often required. In many cases, fe- relevant laws, as a disproportionate percentage of male workers are not fully aware of their rights, so the workforce in zones is often female. access to a trusted counselor can help them assess whether a violation has occurred and how to pro- ceed. Women’s legal aid organizations exist in many II.2. Comply with Legal Requirements of the countries visited, such as the Federation of Pertaining to Female Workers’ Labor Women Lawyers in Kenya. Zones and enterprises Rights and Basic Human Rights should seek to create hotlines or drop-in services to Enterprises must strive to comply with internation- connect female workers to legal aid resources. al conventions, national labor laws, and individual buyer codes of conduct. Though regulations per- taining to the employment of women, such as laws II.4. Create or Support the Creation about maternity and child care, may seem costly, of Women’s Committees at Zone and this study demonstrates that compliance with these Enterprise Levels regulations can deliver business benefits and cost Women’s needs and challenges are often differ- savings in the form of reduced absenteeism and ent from and additional to those of male workers turnover. In addition, compliance is key from a risk- and entrepreneurs. At the same time, with some management perspective, as buyers and national notable exceptions, women’s participation in la- governments continue to improve and expand their bor organizations is often low, which suggests monitoring and evaluation capability and criteria. that their unique needs are often not addressed. In many of the countries examined in this study, Corporate policies and culture can encourage compliance at all levels of management. Human 96 Interviews, BEPZA Counselors, Bangladesh, February resources staff in particular should be trained on 2010. gender-sensitive monitoring and grievance mech- 97 See Bangladesh Case Study for additional detail on the anisms. Line and floor supervisors should also be program. 52 Fostering Women’s Economic Empowerment through Special Economic Zones culture dictates that men and women occupy dif- nostic, for example, could help demonstrate to ferent places in society. When they occupy the ministries that hospitals or schools were needed same place at work, having separate committees in or near zones to serve the needs of the large for women may facilitate more open and produc- working population. tive dialogue about how to better protect and empower female workers and entrepreneurs. Providing Improved Services and III.  These committees can exist at the zone and en- Facilitating Capacity Building terprise levels. It is important that women at dif- ferent levels be represented, and that workers re- ceive a proportional voice on any committee. It is III.1. Create Zone-level Social Services also important that such committees not replace Social services can include hospitals or clinics that but rather support existing workers’ committees provide access to women’s health services. Zones or unions. For example, the head of the women’s should work with the government and enterprises committee could serve on a larger executive com- to determine if the most effective solution for af- mittee. fordable child care and transportation is a zone-or- ganized solution and, if so, implement accordingly. In addition, and working through women’s com- Zones could also consider providing schools and mittees, zones could customize gender-sensitive dormitories and work together with enterprises training programs and initiatives, such as JNCW’s and government to determine if this is feasible and diversity training for private-sector human re- the best solution. Enterprises should contribute to source managers, baseline studies of gender at zone-wide social services by buying in financially private companies that could serve as tools for on behalf of the relevant percentage of their work- improvement, and questionnaires on gender main- ers. Payment by enterprises will ensure workers’ ac- streaming. cess to medical clinics, child care, transportation, and any other relevant services. II.5. Establish Metrics and Conduct MM Zone health care center: Zone hospitals exist a Gender Diagnostic to Assess in roughly half of the countries and zones vis- Women’s Economic Participation ited. Where such hospitals exist, they should as Investors and Workers in Zone provide specialized women’s health services, Program such as gynecological exams, family planning This global study and the case studies provide counseling and services, and pre- and postnatal the foundation for a zone diagnostic to under- care. Where they do not exist, zone authori- stand women’s economic participation in trade ties should explore partnerships with govern- zones, a better picture of the demographics of ment ministries of health to build such services working women, and key national stakeholders within densely populated areas within and near and partners. A more in-depth study can provide zones. additional information on whether the majority MM Zone child care: Consolidating child care in a of women are young or old, married or unmar- larger setting can improve compliance, help re- ried, and locals or migrants, as well as identify- duce the burden on individual enterprises, and ing education levels, basic health indicators, and improve quality of service and ease of moni- child-care needs. Like national diagnostics, a toring. gender diagnostic for a particular zone program MM Zone- or enterprise-sponsored housing and/or will help planners determine the demographics transportation: Options for getting workers to of the workforce, and the specific needs of the the workplace in a safe, affordable way should workforce population in that zone. Such a diag- be evaluated. Recommendations 53 TABLE 9  ■  Summary Recommend: Improved Services and Capacity Buiding Responsible Recommendation Stakeholder(s) Example(s) Benefits Create zone-level social ser- 1.  Zone, Hospitals in zones in Bangladesh, El • Efficient use of resources to vices to benefit women, such as Enterprise Salvador, and Jordan provide women’s better meet women’s needs (e.g., hospitals, child care, schools, health services enterprises pay fee for workers to transportation, and housing. have access to larger platform of A Costa Rican zone coordinates transpor- services) tation for workers • Increased productivity and reduced turnover Promote female workers’ health 2.  Zone, Young One factory in Bangladesh has a • Improve worker health and well-being through educa- Enterprise nutritionist on staff • Reduce health-related absenteeism tion, factory meals, and health and turnover Health-education programs are imple- services. • Improve worker concentration and mented in factories in Bangladesh, China, productivity Egypt, India, Pakistan, and Vietnam • Build employee satisfaction and loyalty Help female workers grow 3.  Enterprise Apparel Factory, Kenya, has a direct • Reduce security risks and logistical financial assets through direct deposit program including agreement demands of cash payroll wage deposit and financial with local bank to create accounts for new • Help employees establish savings literacy programs workers. Wages are deposited directly accounts into accounts for withdrawal at ATM. Promote women’s skills de- 4.  Government, The Costa Rican National Institute for • Country can utilized skilled and velopment through vocational Zone, Learning (INA) offers free specialized educated workforce as a com- training program. Enterprise technical training to workers in zones. petitive advantage for attracting Zones/enterprises communicate desired investment skills for labor force and INA designs and • Enterprises gain access to skilled delivers training. Some enterprises work workforce and can promote from directly in partnership with INA to design within training programs. • Workers are more highly skilled and productive Support female entrepreneurs 5.  Zone, Enterprise, Jordan Export Toolkit • Increased investment in zones through access and training (Women’s Business • Increased competition among input Tunisian Women Entrepreneurs’ Handi- programs Association) suppliers craft Center III.2. Promote Female Workers’ Health toilets. Where women’s health services are not pro- and Well-being through Education, vided, factories can employ a visiting doctor ca- Factory Meals, and Health Services pable of providing those services, or partner with a This study found a significant demonstrated ben- relevant government health service. Nutritious and efit to individual enterprises from having healthy hot factory meals, and healthy snacks for workers workers, and particularly healthy female workers. on overtime shifts, can also contribute to boost- Likewise, the status quo of unhealthy workers is ing workers’ health and performance. Finally, tak- contributing to absenteeism, low productivity, ear- ing better advantage of existing factory nurses by ly leave, and occupational health and safety issues, enrolling them in training programs or allowing such as fainting at work. them to participate in worker-engagement pro- grams on health can help nurses take on a coun- Enterprises can invest in female workers’ health seling role to assist workers with referrals, mental by providing women’s health-education programs, health and stress, disease prevention, and pre- and sanitary napkins, and clean and gender-segregated postnatal care. 54 Fostering Women’s Economic Empowerment through Special Economic Zones III.3. Help Female Workers Grow MM Language training (i.e., English), especially for Financial Assets through Direct service-industry jobs and management positions. Wage Deposit and Financial Literacy programs Such training programs should emphasize the Most factories visited for this study remain on a business benefits of promotion from within, and cash payroll; however, many managers interviewed should encourage the participation of lower-skilled expressed that they were “exploring� direct deposit workers. Human resources staff can be trained to options. Direct deposit represents an excellent op- look out for lower-skilled workers with manage- portunity to help women grow their financial lit- ment potential. A promote-from-within policy, eracy and their financial assets while reducing fac- and the training to support it, should dispropor- tory costs. Such programs will disproportionately tionately benefit female workers because of their benefit young, unmarried female workers, who dominance of lower-skilled positions in most zone will be able to enter marriages with independent enterprises. Specialized programs for women may savings, or use their financial assets to delay mar- deliver increased benefits, given the segregation of riage or not marry. Direct deposit programs must men and women in many of the cultures visited. be linked to local banks and accounts must pro- vide fair provisions to workers. Financial literacy education should also be offered, to explain basic III.5. Support Female Entrepreneurs financial principles surrounding saving and spend- through Access and Training ing. Where numeracy levels are low, numeracy Programs trainings can be embedded within financial literacy In addition to the regulatory quotas for inputs pur- programs. chased from women-owned suppliers discussed in the policy section above, zones are in a unique po- sition to help female entrepreneurs in several other III.4. Promote Women’s Skills ways: Development through Vocational Training Programs MM Connect entrepreneurs to potential clients. This study found that female workers’ lack of ac- For example, a zone authority could organize a cess to skills-training programs was a significant trade show for female input suppliers to show barrier to upward mobility. The study also found their goods to zone investors. that investments in skills-training programs for MM Connect entrepreneurs to export markets. For existing workers can be challenging for individual example, a zone authority or operator could enterprises. Thus, this study recommends that gov- work with the government or an NGO to pro- ernments and zones partner to create subsidized vide training and access to export markets for and streamlined training programs that zone in- female entrepreneurs vestors can then utilize, paying a marginal fee for MM Offer a streamlined “one-stop-shop� process for the service. starting a business in a zone. Zones can make it easier for women to bypass the red tape and bu- Training may be required or beneficial in the fol- reaucracy associated with starting a business in lowing areas: a zone. Female entrepreneurs in Egypt, for ex- ample, cited bureaucracy as a key barrier, partic- MM Basic literacy and numeracy; ularly given gender roles in Egyptian culture.98 MM Technical skills required for job roles; MM Skills training for workers and supervisors on technical, communication, and manage- 98 Interview: Dr. Maha ElShinnawy, American University ment skills; of Cairo / Goldman Sachs Women’s Entrepreneurship MM IT skills; and and Leadership Program, May 3, 2010. Recommendations 55 MM Link female entrepreneur skills training to business benefits at the enterprise, zone, and na- investment opportunities in zones. For ex- tional levels. It is our hope that this study will pro- ample, a zone operator could partner with vide the necessary information and tools to help a women’s entrepreneurship association or governments, zones, and individual businesses women’s chamber of commerce to participate promote women’s economic empowerment more in training programs and contribute modules effectively in the future. on export readiness and creating businesses in zones. All zones need not implement all included recom- mendations, but rather will select relevant recom- These recommendations are intended to improve mendations based on a zone gender diagnostic. women’s economic participation and contribute to Further research will be required to identify de- their economic empowerment. Successful policy tailed action plans for implementing the recom- changes or program investments should deliver mendations above. Chapter 4: Implementation Tools: Stakeholder Engagement Monitoring, Evaluation and Frameworks T he previous chapters introduced the busi- It is also important to recognize that govern- ness case for improving women’s economic ments, zones, and individual enterprises have participation in zones, demonstrated some limited resources to dedicate to such investments, of the obstacles to and enablers of that partici- and any policy changes or programs should in- pation, and outlined recommended actions that volve monitoring and evaluation to measure governments, zone authorities and operators, and impact, and prioritize areas for continued in- zone enterprises can undertake to improve wom- vestment. Monitoring and evaluation refers to a en’s employment, advancement, and entrepreneur- process of creating key performance indicators ial opportunities in SEZs. to assess the defined success of new policies and programs. Monitoring and evaluation can also These policy and program investments will benefit benefit from rigorous stakeholder engagement, from rigorous stakeholder engagement, which can as different stakeholders will have different pri- help to: orities to measure, and measuring impact from different perspectives can help promote collab- MM Gather critical information about the state of orative implementation. women’s rights, health, education, living condi- tions, and access to land and financial services The following chapter outlines roles for govern- in SEZs; ment, zones, and enterprises in stakeholder en- MM Design effective policy changes and govern- gagement and monitoring and evaluation respon- ment, zone, and enterprise programs that are sibilities, as well as tools and approaches to support closely aligned with women’s needs in specific policies and programs related to women’s econom- SEZs; ic opportunities in zones. MM Garner support for initiatives from key con- stituencies whose support or resources result in effective and efficient implementation; and I.  Stakeholder Engagement MM Provide feedback as part of ongoing monitor- ing and evaluation of the business and social impact of investments. Definition IFC defines stakeholders as “persons or groups Key stakeholders include unions, NGOs, rel- who are directly or indirectly affected by a project, evant government ministries, and female entre- as well as those who may have interests in a project preneurs. and/or the ability to influence its outcome, either 58 Fostering Women’s Economic Empowerment through Special Economic Zones positively or negatively.�99 Stakeholder engage- ferent, more nuanced, and more interrelated than ment refers to formal and informal dialogue to those of men. Unfortunately, the marginalization share information, gather feedback, and create op- of their voices in politics, industry, and even in the portunities for stakeholder participation in project leadership of workers’ organizations such as unions design and implementation. or worker committees means these needs are nei- ther identified nor met. Within this context, direct and focused engagement with female stakehold- Benefits of Stakeholder Engagement ers will be a critical element of developing poli- Engagement can be an important factor in project cies and programs to increase their employment, success. It can be used to: advancement, and entrepreneurship opportunities in SEZs. Furthermore, amplifying the voices of MM Assess needs and prioritize investments; women workers themselves in projects will rein- MM Obtain insights and perspectives that can force their contribution to self-empowerment. strengthen project design and, consequently, improve project effectiveness and impact; Specifically, governments, zones, and enterprises MM Build trust and earn the endorsement of key can use stakeholder engagement to (1) assess the constituencies, whose support can help or hin- specific needs of female workers and entrepreneurs, der a project; and (2) design programs and policies that will address MM Identify resources and partnerships to support those needs effectively, and (3) ensure that women implementation and long-term project sustain- are utilizing and benefiting from those programs ability. and policies once put into place. Stakeholder en- gagement can also help identify appropriate part- Throughout the stakeholder engagement process, ners to implement programs and enforce policies. short-term or lasting partnerships may be formed. Stakeholders can play specific roles in implement- ing policies or programs to support women’s eco- Priorities and Roles of Key nomic participation in zones, for example. Differ- Stakeholder Groups ent individuals or organizations can help conduct Considering the objectives and priorities of key needs assessments, implement outreach, education, stakeholders will help ensure productive engage- or training programs, run grievance mechanisms, ment with these groups. Programs and policies that and support project monitoring and evaluation. integrate these diverse perspectives where possible, and emphasize the business case for the involve- In sum, projects are more likely to be successful ment of critical stakeholder groups, will likely have and sustainable if key stakeholders support an greater success and higher rates of uptake. initiative or policy design from the beginning, feel a sense of ownership from the design phrase MM Zone regulator or authority: The main con- through implementation, and have opportunities cern of the zone regulator is to maintain the to participate in, and ideally assume responsibility economic viability of individual zones and/or for, management components. a multisite zone program. The regulator autho- rizes development and investor activity, and coordinates with the national government as Stakeholder Engagement and needed. Compliance, the overall performance Women’s Economic empowerment and reputation of the zone, and local commu- Stakeholder engagement is particularly important for initiatives aimed at increasing women’s eco- 99 IFC, 2007. Stakeholder Engagement: A Good Practice nomic participation. This study highlights how Handbook for Companies Doing Business in Emerging women workers’ and entrepreneurs’ needs are dif- Markets. Page 10. Implementation Tools 59 nity acceptance of the zone will all be impor- tive programs offered in zones help to encourage tant to the zone regulator. Within this context, MNCs to contract with enterprises located in zone regulators should be approached as po- the zones. Compliance with national labor laws tential partners in establishing gender policies and international conventions has also become and programs. Existing zone infrastructure and increasingly prioritized by MNCs, who conduct access to financial and government services can audits to assess the adherence to local and inter- be utilized for such initiatives. In addition, zone national law by companies supplying them with regulators sometimes have more capacity than manufactured goods or services. When zones or national governments to regulate compliance, individual enterprises can demonstrate superior which makes them natural potential partners compliance, including enhanced treatment of in legislation improvements and enforcement. and benefits provided to their female workforce, MM Zone operators: The first priority of the zone this will increase their opportunities to secure operator is to manage the zone effectively, in- business relationships with MNCs. cluding to lease and sublease zone land plots MM Worker organizations: The foremost priority of or buildings to enterprises at a rate that de- worker organizations is to uphold the rights of livers a profit for the zone. The zone operator workers to organize, bargain collectively, and re- also supervises the provision of facilities and ceive fair treatment, including fair wage payment services for zone tenants and their employees, and decent working conditions. Worker organi- and convenes tenants on a regular basis. Thus, zations often struggle to access workers inside the zone operator is in a position, and has a zones, and in extreme cases, worker organiza- business incentive, to support gender-related tions are banned within SEZs. Any proposed initiatives and policies. If the zone operator programs or policies should consider workers’ is engaged effectively, it can become a partner right to organize, either formally or informally, not only in the oversight of policy and program and should evaluate how to maximize women’s implementation, but also in facilitating, requir- participation in such efforts. In addition to local ing, and monitoring uptake of those policies unions or worker committees, global organiza- and programs by zone investors. tions such as Solidarity Center may be useful MM Enterprise owners (zone investors) and en- to involve in this process. Worker advocates and terprise operational management: Enterprise organizations can raise awareness of perceived owners are foremost concerned with ensuring abuses, amplify the voice of the community, and that their business is profitable, which, among help to create pressure for action. other things, is achieved through a skilled work- MM Relevant government ministries: Govern- force that is efficient and delivers high-quality ment institutions that should be involved in- goods and services. Client relationships are clude those related to national legislation per- highly important. Disruptions to an enterprise’s taining to labor laws and family laws, as well ability to meet contractual obligations are a as women-specific institutions, such as min- serious concern as well, and these can include istries of gender or women’s issues, or other incidents such as worker strikes. Enterprises national bodies created to oversee women’s is- should be given the opportunity to review and sues. These different bodies will have relevant comment on proposed programs or policies, national priorities that can be embedded into and actors should seek to identify opportunities the achievement of recommended policies and to support female workers that do not exces- programs, such as mainstreaming gender issues sively disrupt enterprise business activity. or improving labor law enforcement. A good MM International clients: The first considerations place to start for dialogues related to women’s of MNCs purchasing manufactured goods and economic empowerment may be “gender fo- services are price, quality, and on-time delivery. cal points� in relevant ministries, in countries Many of the infrastructural and financial incen- which have these designations, such as Kenya. 60 Fostering Women’s Economic Empowerment through Special Economic Zones National women’s institutions are outlined in trepreneurship associations or technical experts Box 10 for the study focus countries. offering assistance to women entrepreneurs, federations and chambers of commerce, and See the country case studies for comprehensive national or private zone investment promotion lists of additional relevant national stakeholders. organizations. MM Technical experts (NGOs and multilateral Engaging key stakeholders is critical to achieving organizations): These organizations often have impact and developing partnerships to sustain and objectives pertaining to specific facets of so- scale up that impact. All of the recommendations cioeconomic development, and may be poten- presented in the previous section should be dis- tial partners in the implementation of many of cussed and evaluated with relevant stakeholders the recommendations presented in Chapter 5. using the guidance provided in this section. Examples of these organizations include Vital Voices, CARE, Oxfam, United Nations Devel- opment Fund for Women (UN Women), UN How-To: Stakeholder Engagement Population Fund (UNFPA), and the Interna- Below is a diagram of steps to engage stakeholders. tional Labour Organization (ILO). Gender and For longer-form guidance on stakeholder engage- compliance practitioners (government, multi- ment, the reader may reference IFC’s Stakeholder lateral organizations, industry) also may fit into Engagement: A Good Practice Handbook for Compa- this category, as well as local NGOs supporting nies Doing Business in Emerging Markets.100 issues related to workers’ rights, women’s rights, and issues such as women’s health and child care. In taking these steps toward stakeholder engage- MM Other relevant stakeholders: Other people ment, the initiating or responsible body—e.g., and organizations may have interests or ex- a government ministry, zone authority or opera- pertise pertaining to the implementation of tor, or individual enterprise—should distinguish specific recommendations, such as women’s en- between process, objectives, and tactics. Objec- tives should be identified at the early stage by the implementing body and refined throughout the BOX 10  ■   Examples of National Women’s stakeholder engagement process as new priorities Institutions emerge. Objectives may include disclosure, con- sultation, partnership, reporting, or others. Tactics Country National Institutions refer to methods of stakeholder engagement, such Bangladesh Ministry of Women and Children Affairs as grievance management, participation in moni- China Provincial Women’s Federations toring, facilitated dialogue, and others. Tactics may also include considerations based on the circum- Costa Rica Instituto Nacional de la Mujeres (INAMU)/National Institute for Women stances of the stakeholder group identified. Egypt National Council for Women; National Council for Childhood and Motherhood For example, engaging women, and particularly female workers with lower education levels, will El Salvador Instituto Salvadoreño para el Desarrollo de la Mujer (ISDEMU) / Salvadoran Institute for Women’s require some specific tactics and sensitivities. For Development example, direct engagement with female work- Jordan Jordanian National Commission for Women (JNCW); ers, particularly if they have less education, should gender focal points in each government entity Kenya Ministry of Gender, Children and Social Development Philippines Philippine Commission on Women (PCW ; formerly Accessed at http://www.ifc.org/ifcext/enviro.nsf/ 100 National Commission on the Role of Filipino Women AttachmentsByTitle/p_StakeholderEngagement_ [NCRFW]) Full/$FILE/IFC_StakeholderEngagement.pdf. Implementation Tools 61 be conducted by local and trained persons, who Next follows stakeholder consultation (Step 3), may already be aware of some of the challenges or which begins with engagement design and tactic concerns those women may have. See the country identification. Approaches may include informal case studies for examples of NGOs that might be engagement, targeted interviews, multistakehold- appropriate for such engagement. It is important er meetings or forums, or the establishment of a to take into account cultural and religious consid- formal advisory council. The choice of approach erations when approaching women for conversa- should be shaped by the topic under discussion and tions. For example, women may need permission the stakeholders involved. For example, interviews from family members to speak to a stranger or to with women will need to take into account cul- a man. In addition, women may be very shy about tural considerations as introduced above, whereas discussing certain issues, particularly health, as this engagement with middle management in a zone- is rarely discussed even within the family in many based manufacturing enterprise will require careful of the countries visited. scheduling to avoid interrupting workflow. From a process perspective, the first step that the During this step, opportunities for partnership or initiating or responsible body should take is to necessary negotiation points may emerge. These map potentially relevant stakeholder individu- areas should be explored in full using the same als and groups. Stakeholder identification should engagement tactics, and should enable equal and include an identification of issues and objectives, active participation by stakeholders. which will help create an order of priority for which stakeholders to engage. For example, if a na- Critical tactics that should be employed for main- tional government wishes to revise zone labor law taining stakeholder relations throughout a project to require mandatory child care, the stakeholders include grievance management and reporting of will need to include legal experts and legislators, data and progress to stakeholders. Each will pro- law enforcement agencies, zone authorities and mote a continued open dialogue. operators that stand to be affected, worker organi- zations, workers, NGOs providing child-care ser- Finally, opportunity areas for productive partner- vices to low-income populations, and the relevant ship include stakeholder involvement in project ministry on women and children. monitoring and management. Dialogues can be held to discuss impacts and benefits, and external Following from stakeholder identification (Step 1), monitoring agents can ensure transparency and there are seven additional steps to stakeholder en- credibility. Building capacity among stakeholders gagement (see Figure 1). Next is information dis- to manage components of projects or policies can closure, an informative process in which relevant contribute to their sustainability and ensure that information is shared with identified stakeholders, engagement is maintained over time. and their opportunities for input and/or partici- pation are explained. Engagement may take place through one-on-one meetings or larger group Monitoring and Evaluation workshops, or a combination of both. The recom- mended gender diagnostic will provide data that This study looked at programs and policies that de- a diverse selection of stakeholders will find highly livered or could deliver benefits to women as well useful and relevant. More focused needs assess- as to business, zone authorities, and governments. ments will provide similarly useful platforms for Measuring the impacts of programs and policies on early discussion. Intended activities—for example, individuals, business entities, and national compet- the construction of a zone-based women’s clinic— itiveness is challenging, but critical. Key economic should also be communicated in full, and linked to indicators are summarized in Table 10, divided by identified needs. the levels of enterprise, zone, and government. 62 Fostering Women’s Economic Empowerment through Special Economic Zones | FIGURE 1    Key Components of Stakeholder Engagementa Information Disclosure Communicate Information to stakeholders early in the decision-making Stakeholder process, in ways that Identification & are meaningful and Stakeholder Analysis accessible, and Consultation Invest time in continue this Plan out each consultation identifying and communication process, consult prioritizing throughout the exclusively, document the stakeholders and project life. process, and communicate assessing their follow-up. interests and concerns. Negotiations and Partnership Management Functions Good For controversial and complex issues enter Build and maintain sufficient capacity within into good faith negotiations that satisfy the the company to manage processes of Stakeholder interests of all parties. Add value to impact stakeholder engagement, track commitments, Engagement mitigation or project benefits by forming and report on progress. strategic partnerships. Reporting to Stakeholders Grievance Report back to Management stakeholders on Establish accessible and environmental, social Stakeholder responsive means for and economic Involvement in stakeholders to raise performance, both those Project Monitoring concerns and consulted and those Involve directly grievances about the with more general affected stakeholders project throughout its interests in the project in monitoring project life. and parent company. impacts, mitigation and benefits, and involve external monitors where they can enhance transparency and credibility. Whenever possible, metrics should disaggregate port, and the Jordanian government has launched data by gender. Some countries included in this a project with the World Bank to establish a gen- study are already collecting gender-disaggregated der-sensitive system of monitoring and evaluation. data. For example, the Jordanian Department of In Kenya, the Ministry of Gender works with dif- Statistics produces gender-disaggregated data in ferent ministries in the government to insure that the “Woman and Man in Jordan: In Figures� re- national data collected are gender-disaggregated. Implementation Tools 63 TABLE 10  ■  Assessing Economic Impact on Enterprises, Zones, and Government Enterprise Zone Government • Absenteeism and early leave rate • Zone occupancy rate • Poverty levels • Turnover rate • Profitability • Unemployment/employment rate • Productivity • Tenant occupancy length • Labor force participation • Product or service quality • Number of enterprises (and growth rate • Job creation • Worker–management relations of new enterprises) • GDP • Worker satisfaction • Total exports (US$ billions) • Profitability • National competitiveness • Literacy • Life expectancy • Maternal mortality rate • Water and sanitation access • Electricity access The table below provides additional detail and spe- methodologies, such as surveys, and existing data cific indicators for each of the program or policy sources, such as national legal documents. focus areas, such as education and training, health, child care, housing, and transportation. This table The above are indicators to measure the results and is organized based on the logical framework, or impact of the gender-friendly policies and practic- logframe, that describes and illustrates the logical es recommended in the preceding sections. Many (causal) relationships among program elements enterprises likely already have evaluation systems and the problem to be solved, thus defining mea- in place, as do organizations who must report surements of success. For the purpose of this study, back to donors and governments that must justify the metrics included are (1) outputs—short-term spending. Monitoring and evaluation of initia- results from the activities related to implementing tives to promote women’s economic opportunities policies or programs that will be completed during should build on existing evaluation systems and a one-year period, (2) outcomes—medium-term data-collection processes to minimize the resourc- results from activities and outputs, which occur es required to conduct this important task and to (on average) one to 3 years after implementation align with existing processes to improve overall of the policy or program, and (3) impacts—long- management systems. term changes or benefits that may occur three years or more after implementation. Many of the Monitoring and evaluation is critical for program long-term impacts are at the national level—in the sustainability. Demonstrating impact, in terms of long-term, governments are likely to see a benefit both social development benefits as well as com- from enterprise—and zone-level programs with petitiveness, helps maintain funding from both shorter-term objectives. The table also provides private and public sources. Integrated measure- suggested data samples and data sources. Data ment of both business and social indicators can sample refers to the body that should provide the help demonstrate the strategic nature of invest- data and the corresponding data population (e.g., ments in women more quantitatively, and should national population, zone workforce, or enterprise be employed in all programs and policies targeting workforce). Data source refers to the place the women in order to maximize both benefits and data likely come from, including data-gathering sustainability. 64 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 11  ■  Monitoring and Evaluation Indicators Creating Legal, Regulatory, and Policy Framework Recommendation Type Indicator Data Sample Data Source RECOMMENDATION 1: Create laws to enable women’s full economic participation Impacts Output Diagnostics and analysis produced Government National law Increased female labor Outcome Establishment of national law(s) to enable women’s full economic Government National law force participation, In- participation creased GDP, Increased national competitive- Outcome Establishment of national law requiring companies to provide Government National law ness compensated maternity leave Outcome Establishment of national law against sexual harassment in the Government National law workplace Outcome Establishment of national law against discrimination based on Government National law pregnancy or marital status Outcome Ratification of international conventions pertaining to human rights Government Ratification record and women’s protection (e.g., CEDAW, ILO Covenants) Outcome Decreased incidence of discrimination against women Zone, Factory Survey Outcome Decreased incidence of sexual harassment in the workplace Zone, Factory Survey, Factory records Outcome Increased retention of female workers / Decreased turnover Factory Factory records RECOMMENDATION 2: Create policies to support female entrepreneurs’ access to zones, as either investors, suppliers, or small-business owners. Impacts Output Diagnostics and analysis produced Zone, Factory Surveys, interviews, Increased GDP, Job sector data Creation Outcome Establishment of zone quota systems Zone Zone law Outcome Establishment of legal regulations enabling small service busi- Zone National and/or nesses to set up operations within the zone zone law Outcome % of zone investors that source from female-owned input suppliers Factory Factory records Outcome Presence of nonexport service businesses (not including traditional Zone Zone records services such as banks, postal services, and expedited shipping services) within the zone Outcome Number of female-owned enterprises within the zone Zone Zone records RECOMMENDATION 3: Improve collaboration between national committees or ministries of women/gender and ministry of labor Impacts Output # of meetings between relevant groups Government Government Increased female labor records force participation, Output # of shared objectives or concerns identified Government Government Improved enforce- records ment of laws and other protections for female Outcome Creation of gender-sensitive policies Government Government workers records Outcome # of collaborative initiatives identified Government Government records Outcome # of collaborative initiatives implemented Government Government records (Continued on next page) Implementation Tools 65 TABLE 11  ■  Monitoring and Evaluation Indicators (Continued) RECOMMENDATION 4: Establish national or zone-level grievance mechanism specially targeted to women Impacts Output Assessment of the zone grievance mechanism Zone Factory records Increased compliance, Output # of of female workers referred to legal aid resources Zone Zone records Reduced turnover Outcome # of workers using grievance mechanism, compared over time Factory Grievance records Outcome % of workers who express trust in grievance mechanism Factory Survey Outcome Increased rates of identification of gender-sensitive compliance Zone Audit Strengthening Enforcetment of Policies and Ensuringcompliance Recommendation Type Description Data Sample Data Source RECOMMENDATION 1: Ensure efficacious enforcement of gender-relevant laws, and train gender-sensitive enforcement officers Impacts Output Diagnostics or evaluation of monitoring system Zone Survey, Factory Increased female records labor force participa- Outcome Establishment or improvement of a zone monitoring committee Zone Zone law tion, Increased GDP, Increased national Outcome Zone participation in collaborative auditing program, such as ILO/ Zone Zone law competitiveness IFC Better Work where available Outcome Increased zone and factory compliance Zone Audit, Survey RECOMMENDATION 2: Comply with legal requirements pertaining to female workers’ labor rights and basic human rights Impacts Output # of trainings, workshops, seminars, etc. Factory, Zone Factory and zone Increased female records labor force participa- Output % of human resource staff trained on gender-sensitive monitoring Factory Factory records tion, Increased GDP, and grievance mechanisms Increased national competitiveness Output % of line and floor supervisors trained on sexual harassment and Factory Factory records discrimination Output % of factories with an operating workers’ association or organized Zone Audit, Survey labor association Output % of female representation in factory workers’ associations or Zone Audit, Survey organized labor associations Outcome Increased zone and factory compliance Zone, Factory Audit, Survey Outcome Decreased incidence of discrimination Zone Audit, Survey Outcome Decreased incidence of sexual harassment Zone Audit, Survey Outcome Decreased turnover Factory Factory records RECOMMENDATION 3: Create or support the creation of women’s committees in zones and individual enterprises Impacts Output Needs assessment or diagnostics of existing workers’ committees Factory, Zone Survey Increased female par- Output % of committee members trained on rights and responsibilities Factory Factory records ticipation in workforce Output # of annual committee meetings Factory Factory records Output Committee turnover rate Factory Factory records Outcome % of women on workers’ association executive committee Factory Factory records Outcome # of policies/programs targeting women established as a result of Factory Factory records committee recommendations Outcome % of women workers with positive attitude toward management Factory Factory survey Outcome Reduced turnover rate Factory Factory records (Continued on next page) 66 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 11  ■  Monitoring and Evaluation Indicators (Continued) RECOMMENDATION 4: Conduct a gender diagnostic to assess women’s economic participation as investors and workers in zone program. Impacts Output Gender diagnostic tool developed with country/culture-specific Government Developed material Increased access to component social services for zone Output # of zones within zone program that conducted gender diagnostic Zone program Government employees, Improved records working and living conditions for female Output % of zones within zone program that conduct gender diagnostic Zone program Government zone employees records Output Published female demographics of zone Zone Government records Output Gender diagnostic results by zone, including regulatory and social Zone Government service needs identified records Outcome Development of regulatory and social services needed by identified Zone Government population records Outcome Increased access to social services for zone employees Zone Government records Providing Improved Services and Facilitating Capacity Building RECOMMENDATION 1: Create zone-level social services to benefit women, such as hospitals, child care, schools, transportation, and housing. Impacts Output Diagnostics, needs assessment Zone, Factory Zone/factory Increased female labor records, surveys force participation, Outcome % of mothers (children under 6) in participating factories with Zone / Factory Center / factory Lower unemployment children enrolled in zone child care records rate, Reduced incidence of violence against Outcome % of mothers (children under 6) in participating factories with records women in delineated enrolled children in zone child care area, Population using Outcome Factory worker satisfaction rate with child-care facility Zone Survey an improved water source Outcome Worker satisfaction with factory, schools, transportation, housing Factory Survey Outcome Worker punctuality rate Factory Factory records Outcome Absenteeism rate Factory Factory records Outcome Number of factories reporting improved performance (e.g., im- Factory Factory records provements in productivity, operations, etc.) Outcome Decreased turnover Factory Factory survey RECOMMENDATION 2: Promote female workers’ health and well-being through education, factory meals, and health services. Factory and Zone services Impacts Output # of trainings, workshops, seminars, etc. Zone Survey Increased female Output # of factories providing meals Zone Survey labor force participa- tion, Increased life Output Total # of zone-wide clinics Zone Zone records expectancy, Decreased Output Total # of clinics offering women’s health services Factory / Zone Factory / zone maternal mortal- records ity rates, More births attended by skilled Output # of factories that contribute financially to zone-wide clinics Zone Zone records health professional, Outcome # or % of female workers using factory / zone clinics Factory / Zone Factory / zone Increased national records competitiveness Outcome # of enterprises providing maternity and nursing leave Zone Zone records Outcome Reduction of health-related absenteeism rate Factory Factory records (Continued on next page) Implementation Tools 67 TABLE 11  ■  Monitoring and Evaluation Indicators (Continued) Outcome Improved employee loyalty (reduced turnover) Factory Factory records Outcome Improved employee satisfaction Factory Survey Outcome Number of factories reporting improved performance (e.g., im- Factory Factory records provements in productivity, operations, etc.) Factory Health Education Impacts Output # of trainings, workshops, seminars, etc. Zone Zone records Increased female Output # of factories providing women’s health education training Factory Factory records labor force participa- tion, Increased life Output # or % of factory workers trained Factory Factory records expectancy, Decreased Output # of training hours Factory Factory records maternal mortality rates, More births at- Outcome Improved awareness level of key general and reproductive health Factory Survey tended by skilled health topics professional, Increased Outcome % of female workers using factory clinics Factory Survey national competitive- ness Outcome Health-related absenteeism rate Factory Factory records Outcome Employee loyalty (reduced turnover) Factory Factory records Outcome Employee satisfaction Factory Survey Outcome # of factories reporting improved performance (e.g., improvements Factory Factory records in productivity, operations, etc.) Hot Meals and Nutrition Impacts Output Diagnostics / # or % of factories providing hot meals Zone Zone/factory Increased life expec- records tancy, Decreased ma- Output Diagnostics / # or % of factories providing lunch allowance Zone Zone / factory ternal mortality rates, records Increased national competitiveness Output Diagnostics / % of factories with nutritionist Zone Zone/factory records Output Diagnostics/ # or % of workers eating hot meal daily Factory Survey Outcome Health-related absenteeism rate Factory Factory records Outcome Employee loyalty (reduced turnover) Factory Factory records Outcome Employee satisfaction Factory Survey Outcome Number of factories reporting improved performance (e.g., im- Factory Factory records provements in productivity, operations, etc.) RECOMMENDATION 3: Help female workers grow financial assets through direct wage deposit and financial literacy programs Impacts Output Assessment of % workers with bank accounts Factory Bank/factory records Increased national Output Assessment of % female workers with bank accounts Factory Bank/factory records savings rate, Increased school enrollment, Re- Output Assessment of average savings rate Zone Bank records duced infant mortality, Output # of financial literacy training courses held Zone Service provider Job creation, Increased GDP, Increased national Output % of workers received training Factory Service provider competitiveness, Ag- Output % of female workers received training Factory Service provider gregate cost savings Outcome Average savings rate Zone Bank records Outcome % of workers with confidence in formal banking system Factory Factory survey (Continued on next page) 68 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 11  ■  Monitoring and Evaluation Indicators (Continued) Outcome % of workers whose actions demonstrate confidence in banking Factory Bank records system Outcome % of women who feel control over financial decisions Factory Factory survey Outcome Reduction of costs of cash payroll Factory Factory records Outcome Instances of reported harassment/robbery Factory Factory records RECOMMENDATION 4: Promote women’s skills development through vocational training program Impacts Output # of trainings, workshops, seminars, etc. Zone Zone records Decreased unemploy- Output # or % of workers trained Zone Training center ment rate, Decreased records poverty rate, Increased literacy, Increased Output # or % of female workers trained Zone Training center investment in higher- records skilled industries, Output # or % of management trained Zone Training center Increased GDP, records Increased total exports, Increased national Output # or % of female management trained Zone Training center competitiveness records Output # of training hours per factory Zone Training center records Output Total # of workers trained Zone Training center records Outcome % of supervisors meeting job competency standards Zone Survey Outcome Internal promotion rate Factory Factory records Outcome Worker turnover Factory Factory records Outcome Supervisor turnover Factory Factory records Outcome Worker satisfaction with factory Factory Survey Outcome Supervisor satisfaction with factory Factory Survey Outcome % of women workers in managerial-level position Factory Factory records Outcome # of factories reporting improved performance (e.g., improvements Factory Factory records in productivity, operations, etc.) RECOMMENDATION 5: Support female entrepreneurs through access and training programs Impacts Output # of trainings, workshops, seminars, etc. Zone Zone records Decreased unemploy- Output # of women trained Zone Training center ment rate, Decreased records poverty rate, Increased GDP, Increased national Output # of events connecting entrepreneurs to potential clients Zone Survey competitiveness Output # of entrepreneurs connected to export markets Zone Survey Output # of training hours per zone Zone Training center records Outcome Increased revenues for women-owned SMEs Firm Firm data Outcome Decreased rate of small-business failure Zone Survey Case Studies Bangladesh Case Study: Fostering Women’s Economic Empowerment through Special Economic Zones T his study examines the role of special eco- argues that these obstacles can also be used posi- nomic zones (SEZs) in promoting wom- tively as “enablers� for women’s economic partici- en’s economic empowerment and creating pation in zones if they are addressed directly and sustainable jobs as a way to boost zones’ competi- effectively through policies and programs at the tiveness. The Bangladesh case study supports a government, zone, and enterprise levels. As such, global research initiative to uncover good practic- the study presents numerous examples of good es for women’s economic advancement within the practices. In addition to a small number of rel- zones and define a practical approach to design, evant replicable practices in zones, the study also promote, and implement gender-inclusive SEZs finds useful examples outside of zones that could across the globe. Findings are based on field re- be replicated within zones. search in eight countries, as well as a global lit- erature review. Bangladesh was selected for inclusion in the study because of the significant body of literature To support women’s improved economic partici- on the transformational effects of the RMG sec- pation in zones, this study seeks to identify good- tor on role of women in one of the world’s poor- practice programs and policies that can be imple- est and most densely populated countries. It is a mented by SEZs throughout the world to promote traditionally agricultural society, with an increas- women’s advancement at three levels: ing trend toward urbanization and migration by young populations seeking employment in indus- MM Fair employment and working conditions for trial sectors. female employees MM Equal access to opportunities for professional advancement Methodology MM Investment opportunities for female entrepre- neurs This case study is based on findings from a com- bination of stakeholder organization interviews, In doing so, the study identifies key legal and qualitative factory-based research, and desk re- regulatory issues, social and cultural constraints, search. The primary research included 45 one-on- lack of support services, and investment-climate one and group interviews with civil society groups, issues affecting women as the main obstacles to workers’ organizations, government, and private- decent working conditions, upward mobility, and sector stakeholders (including international buyers investment opportunities within SEZs. The study and factory managers). 72 Fostering Women’s Economic Empowerment through Special Economic Zones A significant body of literature exists on the RMG Stakeholder Type Number Objective of Engagement sector in Bangladesh and the role of women within that sector. Primary research was augmented by Civil Society 10 Determine challenges facing desk research, including twenty-four Bangladesh- Bangladeshi women at work and at home, and learn about specific reports, in addition to a review of related programs and policies seeking global research. to address those challenges. Female 3 Identify general challenges Entrepreneurs facing female entrepreneurs and Zone Program in Bangladesh assess specific challenges to starting/owning a business in a zone. Identify recommendations SEZs in Bangladesh are publicly owned and reg- to facilitate increased female ulated zone programs, which include a total of 8 entrepreneurship in zones. export processing zones (EPZs). Dhaka EPZ and Worker 2 Identify labor rights issues Chittagong EPZ, the two largest zones, were visit- Organizations unique to women, challenges to their resolution, and ed for this study. Chittagong EPZ is slightly larger recommendations for the private than Dhaka EPZ, but the management systems of sector. the zones are identical. Government 4 Identify government’s priorities, limitations, and potential role Zones in Bangladesh are regulated by the Bangla- in solution. Discuss regulatory systems in place. desh Export Processing Zones Authority (BEPZA), which is the government body tasked with attract- Private Sector 26 Identify drivers and challenges. Uncover perspective on female ing foreign investment in EPZs, and with regulating employees. Discuss existing practices within the zones. BEPZA regulates the or potential future programs or EPZs through two main sets of legislation, Instruc- policies. tions 1&2, and the EPZ Workers’ Association and Industrial Relations Act (2010). The Bangladesh Labour Law does not apply in the zones, except in instances where there is no specific BEPZA Instruc- To collect EPZ-relevant statistical data, BEPZA tion, in which case the National Labour Law may counselors (see Good Practice Example 1, below) be followed. Trade unions are outlawed in EPZs, in collected information on a randomized sample of favor of worker-organized “workers’ associations,� factories and interviewed a sample of 395 work- according to the act noted above. ers—208 female and 187 male. These activities were used to assess unique challenges and oppor- Dhaka and Chittagong EPZs are considered tunities for female workers in EPZs. commercially successful, with US$64.38 and US$57.52 million in investment and US$1,216.49 Using tools developed by the researchers, BEPZA and US$1,333.53 million in exports, respectively, counselors conducted 41 group interviews with in 2009–2010.1 The RMG sector as a whole gen- a total of 395 workers. At least 2 women and 2 erated US$12,347.77 million in exports in 2008– men were interviewed at each facility. Thirteen 2009, representing 79 percent of Bangladesh’s to- factories were randomly selected for detailed re- tal exports. Comparatively, EPZ exports represent ports by counselors. The thirteen factories included 16.5 percent (US$2,581.70m) of Bangladesh’s 7 garment, 2 ladies’ undergarment, 2 tent, 1 pant total exports of US$15,565.19 million, implying (flat-knit), and 1 t-shirt (flat-knit) manufacturing facility. Of the factories included, the average size was ~2,000 workers with approximately 62 percent BEPZA website data, taken October 2010, http:// 1 women and 38 percent men. www.epzbangladesh.org.bd/bepza.php?id=YRINV Bangladesh Case Study 73 TABLE 1  ■  Number and Percentage of Female Local Workers at Job Levels Local Worker Local Staff Local Officer (Executive Level) (minimum hourly wages) (higher hourly wages) (salary wages) Female as Female as Female as Zone Male Female % of Total Male Female % of Total Male Female % of Total CEPZ 46,842 92,451 66% 5,227 1,502 22% 6,735 1,802 21% DEPZ 30,512 38,560 56% 4,040 840 17% 2,959 291 9% Source: BEPZA Zone Data December, 2010. that there is remaining opportunity to grow EPZs’ Within this composition, women represent 72 share of exports.2 percent of all permanent workers, which could indicate lower turnover rates among women and The largest percentages of zone investment come longer terms of service. Women represent much from South Korean investors, followed by inves- lower percentages of technical and nontechnical tors from Bangladesh, Japan, and China, including officer-level staff (25 and 12 percent, respectively), Hong Kong. As of 2008, 65 percent of EPZ units though it is worth noting the significant differ- make garments, textiles, and related products, and ence between Chittagong and Dhaka zones in this these sectors also account for 74.8 percent of zone regard. It is also worth noting that women with investment and 86 percent of zone employment. technical qualifications seem more likely to receive Furthermore, although the number of garment an officer-level job than those without. factories in EPZs represents only 1 percent of the total in the country, these factories are much larger than those located outside of zones, and represent 2 BEPZA Year Wise Export (http://www.epzbangla- over 20 percent of total garment exports.3 desh.org.bd/bepza.php?id=Yrexport) and Year Wise Investment (http://www.epzbangladesh.org.bd/bepza. Dhaka EPZ and Chittagong EPZ have a total of php?id=YRINV), viewed 06/22/10; BGMEA, “Com- 257 active enterprises and 208,365 Bangladeshi parative Statement on Export of RMG and Total Ex- factory workers, 63 percent of whom are women. port of Bangladesh�, http://www.bgmea.com.bd/home/ While both EPZs are significant employers of pages/TradeInformation, viewed 06/22/10. 3 Murayama, Mayumi and Nobuko Yokota, “Revisiting women, these jobs tend to be concentrated at the Labor and Gender Issues in Export Processing Zones: level of assembly line workers. As illustrated in The Cases of South Korea, Bangladesh, and India�, In- Table 1, women’s participation drops significantly stitute of Developing Economies, Discussion Paper No. at the staff and officer levels. 174, October 2008. TABLE 2  ■  EPZ Employee Positions Male/Female Data Point (CEPZ + DEPZ) Male Female Female as % of Total # of Permanent (contracted) Workers 43,603 116,010 72% # of Casual (noncontracted) Workers 10,216 15,001 59% # at Technical Officer Level 3,978 1,302 25% # at Nontechnical Officer Level 5,716 791 12% Source: BEPZA Zone Data December, 2010 74 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 3  ■  Key Findings, BEPZA Counselor Factory Reports, Collected March–April 2010 Data Point Male Female Female as % of Total # of Workers 763 1220 62% # of Line and Floor Supervisors 463 127 22% Average Length of Service in EPZ (years) 8.6 8.1 Factories in EPZs are generally considered to have As noted by one worker, “Child-care facilities are better working conditions, higher wages, and high- just set up for buyers to examine. They are badly er productivity than outside of the zones. Workers lit, poorly ventilated, and have no actual providers are also more skilled and have higher levels of edu- on staff.� cation than those outside the zone—female work- ers in EPZs have an average of 8 years of education, Within zones, all workers are eligible to use the compared with 4 years for women working outside BEPZA hospital facilities and to apply for their the zones.4 Women working in EPZs tend to be children to attend a school within the Dhaka EPZ. younger and single or, if married, are likely to have In practice, a large majority (92 percent) of factory fewer children than women in other industries. workers do not send their children to the Dhaka EPZ school, as school fees are often prohibitive— Women work in garment and electronics factories, up to half of their salary per child. while men are more commonly found in textile and knitwear facilities.5 Jobs are often gender-seg- The BEPZA hospital in Dhaka EPZ provides pre- regated as well—women often dominate the sew- natal examinations and vaccinations for pregnant ing floor, while men are more likely to do ironing women working within the zone, and factory man- and cutting.6 agement within the zone is required to release preg- nant workers for these examinations during work- While there is a higher prevalence of women on average within the surveyed enterprises and wom- en tend to have a similar length of service as men 4 Center for Policy Dialogue (CPD) and World Bank (2007), Bangladesh’s Apparel Sector in Post-MFA Period: (8.1 and 8.6 years, respectively), they remain large- A benchmarking Study on the Ongoing Restructuring Pro- ly underrepresented in supervisory positions and cess, Dhaka; Kabeer, Naila and Simeen Mahmud, Rags, in worker committees. Riches, and Women Workers: Export-oriented Garment Manufacturing in Bangladesh, Report prepared for the Reasons for turnover are also markedly different, Commonwealth Secretariat, London, 2004; Kabeer, with men leaving for better-paying jobs, often Naila, and Simeen Mahmud (2004), Globalization, Gen- der and Poverty: Bangladeshi Women Workers in Export abroad, while women leave primarily to address and Local Markets, Journal of International Develop- family and child-care needs. This illustrates that ment, Volume 16. investment in certain gender initiatives such as 5 BSR Interviews with Chittagong EPZ Management better child care could help zones retain female and factory management in Dhaka and Chittagong, workers. February 2010; Center for Policy Dialogue (CPD) and World Bank (2007), Bangladesh’s Apparel Sector in Post- MFA Period: A benchmarking Study on the Ongoing Re- Overall, support services for workers are underuti- structuring Process, Dhaka. lized and underresourced. Most enterprise-based 6 BSR Interviews with Chittagong EPZ Management child-care facilities are only set up to adhere to and factory management in Dhaka and Chittagong, the law, providing a room but no child-care staff. February 2010. Bangladesh Case Study 75 TABLE 4  ■  Key Findings, BEPZA Counselor Worker Interviews, Collected March–April 2010 Data Point Male Female # of workers surveyed 187 208 Absenteeism: Most frequently cited reason Headache, poor nutrition Menstrual pain, sick child Frequently cited reasons for leaving Better-paying job Child care and family Have established bank accounts 52% 48% Direct deposit of salary in bank account, DEPZ (out of workers with bank account) 45% 7% Data Point Total Aware of BEPZA hospital 100% Dissatisfied with hospital service 58% Housing: Want dorms 22% Child care: Not using or not available 92% Missed work in last 6 months 94% ing hours.7 Workers do use hospital services, though ers have established direct deposit of their salary. In women are often reluctant to take time off from Chittagong EPZ, though percentages of women work to receive prenatal care, particularly if they are with bank accounts are higher, almost no women or paid on a piece-rate basis and will lose wages by men have established direct deposit of salary.8 doing so. Stories of women hiding pregnancy from supervisors to avoid compulsory prenatal care were heard in interviews with BEPZA counselors. Obstacles to Women’s Economic Participation in Bangladesh 58 percent of workers found the BEPZA hospital to be unsatisfactory because of inadequate medi- A country’s legal framework and cultural norms cine provided, not enough or poor-quality doctors, play a significant role in determining women’s a long wait for service, and expensive and substan- economic opportunities and fair employment. In dard service (answers varied). Interviews also re- addition, key issues such as education, health, and vealed poor personal health and nutrition, due to living conditions impact women’s ability to excel workers’ skipping breakfast, enterprises’ providing and advance in the workplace. “poor-quality� meals or no meals, and the common occurrence of dehydration and weakness, which This study sought to identify key barriers and en- contributed to absenteeism. Poor personal health ablers within zones that impact women’s fair em- has resulted in over 94 percent of workers inter- ployment, advancement, and entrepreneurial in- viewed taking sick days within the last 6 months. vestment opportunities in Bangladesh. The study Simple investments in menstrual health and hy- giene, nutrition, and child care would dramatically improve female absenteeism and turnover rates 7 BSR Interviews with BEPZA, Dhaka EPZ manage- ment and Chittagong EPZ management, February within these enterprises. 2010. 8 Bangladesh Institute of Development Studies, “Bank Although 44 percent percent of female workers have account status of workers in factories of Dhaka and bank accounts, a very low percentage of these work- Chittagong EPZs�, March 2011. 76 Fostering Women’s Economic Empowerment through Special Economic Zones found several common factors across countries tiveness of these workers’ associations varies widely, that can act as obstacles to or enablers of women’s as they depend on the initiative of the workers in economic empowerment. Policies, initiatives, and an individual factory to establish an association business practices can become enablers to spur and on the effectiveness of the association mem- women’s economic participation. bers and executive leadership.9 Some organizations, like Solidarity Center in Bangladesh, have created These themes are explored within Bangladesh spe- capacity-building programs for worker associations cifically around the following categories. to help support their effectiveness. However, survey results found that only 1 percent of women partici- MM Legal Framework: International and local pated in workers’ associations, suggesting that the laws pertaining to female employees and their associations may not deliver benefits to female fac- enforcement. Women often lack access to em- tory workers regardless of their effectiveness. ployment opportunities in the formal sector, and require additional protections as employ- The National Minimum Wage Board increased ees, such as maternity leave and child care. the minimum wage of the RMG sector in 2010, MM Social and Cultural Factors: Cultural norms following lengthy debate between the government dictate women’s home responsibilities and can and labor organizations. The new minimum wage, impact their economic participation, and social which came into effect on November 1, 2010, is factors including education, health, child care, Tk 3,000 (US$43) per month, up from the previ- and living conditions can impact women’s abil- ous minimum wage of Tk 1,662 (US$25). Unrest ity to work and excel at work. followed the agreement, because the minimum MM Professional Advancement: Advancement wage fell far short of labor unions’ demands of opportunities for women are tied to education Tk 5,000. The 2010 pay structure has seven grades, and skills development, and also influenced by with the highest pay fixed at Tk 9,300 (US$140).10 social and cultural factors. The EPZ law amendment also included a mini- MM Entrepreneurship: Female entrepreneurs of- mum wage adjustment to rates above the new na- ten lack access to capital, land, and business tional minimum wage (see Table 6, p 10 for de- networks, and need training on business skills, tails). The amendment also stipulated additional management, and market identification. benefits including Conveyance Allowance, House Rent, Medical Allowance, Maternity Benefit, Fes- This study has also identified replicable good prac- tival Bonus, Provident Fund, and Overtime.11 tices in Bangladesh, which are outlined in the sec- tion “Good-Practice Enablers of Women’s Eco- Tables 5 and 6 summarize the conventions and nomic Empowerment in Bangladesh� that follows laws currently in place that affect women. on page 17. Most laws related to women’s rights at work are acceptable or even good on paper, but enforce- Legal Framework and Impact on Women 9 US Department of State, Bureau of Democracy, Hu- The primary law affecting Bangladeshi workers is man Rights, and Labor, Country Report on Human the Labor Act of 2006, which consolidated parts Rights, March 2008. 10 Asian Correspondent, 07/30/2010, “Bangladesh gar- of 25 acts into one. The export processing zones are governed by a separate law, the EPZ Workers’ Asso- ment workers reject new wage rates�; BBC, 07/30/10, “Bangladesh garment workers protest in Dhaka over ciation and Industrial Relations Act 2004 (amended wages�; and others. October 2010), which forbids union membership 11 BEPZA Website, “Labor Issues�, visited 12/06/10: but permits “workers’ associations� that have collec- http://www.epzbangladesh.org.bd/bepza.php?id=lab_ tive bargaining rights. The establishment and effec- issues Bangladesh Case Study 77 TABLE 5  ■  Ratification of ILO Core Conventions and CEDAW ILO Convention Ratified or Not 29 Forced Labor Ratified 87 Freedom of Association and Protection of the Right to Organize Ratified 98 Right to Organize and Collective Bargaining Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Not Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) With Reservations TABLE 6  ■  Laws and Regulations Affecting Women’s Economic Opportunities Law Law Description National or Zone Maternity Leave Leave of 16 weeks with pay. Both Section 46, Provisions: Labor Law 2006 • Worker shall not receive benefit unless she has served for minimum period of six months prior to notice of probability of delivery. • No maternity benefit shall be payable to any woman if at the time of her confinement she has two or more surviving children. Child care 1 “children’s room� required for every 40 female workers with children below 6 years of age. Both Section 94, Provisions: The room is required to be of such an area that it can provide 600 square centimeters Labor Law 2006 (previously 20 sq. ft.) of space for each child and the minimum height of such room shall not be less than 360 centimeters. Pregnancy No law prohibits testing workers for pregnancy prior to hire. Both testing Minimum wage $39/month Apprentice $48/month Helper $55/month Junior Operator Zone $61/month Operator $61/month Senior Operator $109/month High Skilled Operator $35/month Apprentice $42/month Helper $49/month Junior Operator National $53/month Operator $58/month Senior Operator $102/month Master ment is largely ineffective. Weak enforcement from workplace child care. Research found that limits most laws’ positive impact on women, and 92 percent of workers surveyed were not using sometimes creates opportunities for unintended their factories’ child-care center or lacked access negative consequences. The child-care law, for to a child-care center. A focus group of BEPZA example, is mostly ineffective in Bangladesh, investors confirmed that child-care centers were both inside and outside of the EPZs. The lan- underutilized.12 guage of the law is vague—it calls for a “room� but does not specify the requirement of a provid- er—and thus employers invest in the minimum 12 BEPZA Counselor survey data, March–April 2010; required by the law and women do not benefit BEPZA Investor Focus Group, May 31, 2010. 78 Fostering Women’s Economic Empowerment through Special Economic Zones A strong government policy in support of child detailed below must be addressed by a variety of care should take into account the potential nega- stakeholders, and be supported by legal regulations tive impacts of such a policy, and so should sup- and enforcement. portive innovative and collaborative solutions to minimize the cost of compliance with legislation. Some governments, for example, offer grants to Employment companies for the cost to set up a child-care center; Women’s employment in Bangladesh has grown other governments provide subsidies to child-care significantly in recent decades. From 1995 to 2003 centers near industrialized areas. A third option is women’s employment increased almost one and a the establishment of a voucher system, whereby half times.14 A notable area of growth for this study, employers pay for vouchers that can be redeemed and for the Bangladeshi economy, has been in the at registered child-care centers. RMG industry, which has created hundreds of thousands of jobs for women since the early 1990s. Social and Cultural Factors Factory managers interviewed in Bangladesh As Table 7 illustrates, Bangladesh’s performance in commented on their preference for female work- gender equality remains mixed. While some prog- ers because of their reduced likelihood of unrest, ress has been achieved in economic empowerment their smaller hands, which enable them to do more and education, women are still at a significant dis- delicate and intricate work, and their higher pa- advantage in health, nutrition, employment, and tience levels.15 One study identified a perception political participation. Disparities in adult literacy that women performed better than men, and that persist, and women’s participation in leadership their “sincerity� and “law-abiding nature� made positions in the public and private sectors remains them more desirable employees.16 Women’s entry low. Women remain unequal under the law, espe- into the labor force in the RMG sector was fur- cially regarding divorce, inheritance, and property ther facilitated by the historical participation of rights. Rape, dowry-related assaults, acid throwing, Bangladeshi women in sewing and dressmaking at and other violence are not uncommon, particularly home. Thus, technically “unskilled� young women in rural areas, and are widely underreported and were seen as requiring only limited training. underprosecuted.13 However, jobs in the RMG sector have not come Major challenges for women entering or advancing without challenges. A low minimum wage that within the formal workforce include access to edu- does not meet living-wage standards,17 excessive cation, vocational skills, health, finance and hous- ing, family responsibilities, transportation to and from work, and rights awareness. Taken together, 13 Freedom House, Freedom in the World: Bangladesh, the evidence below demonstrates that economic 2006 14 World Bank (2008), Whispers to Voices: Gender and Social empowerment through jobs in Bangladesh EPZs Transformation in Bangladesh, South Asia Sustainable offers significant opportunities to women to im- Development Department, Bangladesh Development prove their education and skill levels, employabil- Series Paper No. 22, World Bank, Washington D.C. ity, health, living conditions, and status within their 15 BSR Interviews with factory management in Dhaka family through increased income. What’s more, and Chittagong, February and June 2010. 16 Afsar, Rita (2000), “Gender Dimensions of labor mi- increasing women’s access to employment, upward mobility, and investment opportunities will help gration in Dhaka city’s formal manufacturing sector�, in Women’s Employment in the Textile Manufacturing Bangladesh continue to grow the export industry, Sectors of Bangladesh and Morocco, ed. By Carol Miller which has been fueled to date by young women and Jessica Vivian, Geneva: The Institute, 2002. workers. To achieve their continued economic 17 Asian Development Bank, “Country Briefing Paper: empowerment, the challenges and opportunities Women in Bangladesh�, August 2001. Bangladesh Case Study 79 TABLE 7  ■  Socioeconomic Indicators: Bangladesh (various sources, 2005–2009) Indicator Total Adult Population Ratio, Female to Male % Female % of population living on less than US$2 per day 81% Unemployment 4.3% Education (combined primary, secondary, tertiary) 1.01 Literacy (for ages 15+) 53.5% 0.82 48% Labor force participation 0.68 57.2% Earned income (USD annually) $1,282 0.51 Women-held seats in parliament and women in 6%, 8% government at ministerial level Female legislators, senior officials, managers 10% Female professional and technical workers 22% Women with unmet family planning needs 17% Births attended by skilled health professional 18% Maternal mortality rate (per 100,000 live births) 340 Major Religions Muslim 88.5% Other Hindu 10.5%, Christian 0.3%, Buddhist 0.6% Gender Measures Gender-related development index (GDI) 0.536, Rank 140/177 countries Gender empowerment measure (GEM) 0.264, Rank 108/109 countries Source: Human Development Report, Bangladesh, 2009, UN Country Profile, 2005,  UNDP 2005, EPDC 2007, HDI (1999–2008), DHS, WHO, HDR. Note: “The gender-related development index (GDI), introduced in Human Development Report 1995, measures achievements in the same dimensions using the same indicators as the HDI but captures inequalities in achievement between women and men. It is simply the HDI adjusted downward for gender inequality. The greater the gender disparity in basic human development, the lower is a country’s GDI relative to its HDI.� (source: http://hdrstats.undp.org/en/countries/country_fact_sheets/ cty_fs_BGD.html) “The gender empowerment measure (GEM) reveals whether women take an active part in economic and political life. It tracks the share of seats in parliament held by women; of female legislators, senior officials and managers; and of female professional and technical workers- and the gender disparity in earned income, reflect- ing economic independence. Differing from the GDI, the GEM exposes inequality in opportunities in selected areas.� (source: http://hdrstats.undp.org/en/countries/ country_fact_sheets/cty_fs_BGD.html) overtime, incorrect payment of wages, and lim- found that 60 percent of women workers inter- ited freedom of association are issues pervasive viewed reported being subject to obscene and sex- throughout the sector in Bangladesh. External ually suggestive language in the workplace; oth- studies have similarly concluded that even where ers reported instances of physical sexual abuse.20 unions or workers’ associations are allowed, wom- en often lack upward mobility opportunities, re- main unable or unwilling to unionize, and have no 18 Ahmed, Erfan Fauzia (2001) The Rise of the Bangladesh representative voice in garment factories.18 A 2008 Garment Industry: Globalization, Women Workers, and Voice, Volume 16, Number 2, Summer 2004, pp. 34–45, study of working women found that 70 percent of Indiana University Press. “operators� and 78 percent of “helpers� reported 19 Paul-Majumder, Pratima (2008), Social, Economic and receiving verbal abuse from supervisors and hav- Health insecurity affecting women’s participation in the la- ing a resulting fear of supervisors.19 Another study bor market and their labor productivity, Dhaka. 80 Fostering Women’s Economic Empowerment through Special Economic Zones None of the above studies were focused on the provided a monetary stipend to rural girls entering EPZs, and as conditions within EPZs are viewed secondary school, including a monthly sum rang- as better than those outside, they may experience ing from Tk 25 in Class 6 to Tk 60 in Class 10 the above issues less frequently. (US$0.37–$0.88 in July 2006), as well as additional support for books and exam fees. Continued receipt Surveys found that women face additional unique of the stipend is conditional upon an individual’s challenges regarding transport to and from the zone attendance rate (minimum 75 percent), as well as and security concerns, a lack of access to in-factory a minimum exam score of 45 percent. Participants child care, and limited representation in worker are also required to abstain from marriage until af- committees and supervisory roles, as well as inap- ter obtaining their school certificate or turning 18. propriate maternity leave and benefits.21 Female From the introduction of the nationwide program workers often suffer disproportionately because of in 1994 through 2003, girls’ enrollment in second- their greater likelihood of being hired at a lower ary school almost doubled, from roughly 240,000 level than male workers, their lack of representative to almost 450,000.25 female voices in unions and workers’ associations, their home responsibilities, their lower education In the 1990s, the focus of FSP expanded beyond levels, and their vulnerability to sexual harassment. reducing fertility to include increasing women’s employment opportunities in both the formal Wage discrimination, though against the law, still and informal sectors. This was seen as an effec- occurs in the RMG sector, both inside zones and tive means of reducing rural poverty and driving outside. A 2007 study of the RMG industry found economic growth. These shifting objectives corre- that women earn 15.9 percent less than men on sponded with the growth of the RMG sector and average. Job discrimination or “occupational sex segregation� is also common.22 In addition, women tend to be restricted to lower-paying industries 20 Alam, Khorshed et al, “Fashion Victims: How UK re- tailers are keeping workers in poverty�, War on Want, and lack access to higher-paying jobs (See the December 2008. following section, Professional Advancement 21 FIDH, “Bangladesh: Labor Rights in the Supply Chain Opportunities). The study concluded that educa- and Corporate Responsibility�, June 2008; Chen, Mar- tion reform and educational programs targeting tha, Joann Vanek, Francie Lund, and James Heintz with women could reduce occupational segregation and Renana Jhabvala and Christine Bonner (2005) p. 67–68 improve women’s economic status.23 “Factory Workers in Bangladesh�, Progress of the World’s Women, UNICEF, New York. 22 World Bank (2008), Whispers to Voices: Gender and Social Transformation in Bangladesh, South Asia Sustainable Education Development Department, Bangladesh Development While Bangladesh has seen significant advances in Series Paper No. 22, World Bank, Washington D.C. 23 Kapsos, Steven, “The gender wage gap in Bangladesh�, gender equity in education due to targeted govern- ment policies to increase girls’ enrollment in pri- ILO Asia-Pacific Working Paper Series, May 2008. 24 Universal Primary Education (UPE) program. The gov- mary and secondary schools,24 a significant gender ernment launched several initiatives to increase enroll- gap persists in terms of adult education and eco- ment: building new schools, establishing community nomic and political participation. and satellite schools, improving teacher training, and providing free tuition for female students. Targeting The Female Stipend Program (FSP) was created in poor, underserved communities was central to programs 1982 in Bangladesh to help increase the enrollment like the Food for Education Program, which provided wheat or rice to poor families as an incentive for chil- and retention of girls in secondary schools, and to dren to attend school regularly. delay marriage and motherhood and support pov- 25 Raynor, Janet, “The Girls’ Stipend Program in Bangla- erty reduction. This strategy was a response to the desh�, Journal of Education for International Develop- growing population and its impact on poverty. FSP ment 2.2, July 2006. Bangladesh Case Study 81 the creation of millions of unskilled job opportu- health.29 In general, workers in EPZs are thought nities for women. to be healthier than those working outside, because of higher wages and better working conditions on Women represent the majority of employees in average.30 Still, all the challenges below likely apply RMG, which is the country’s major export sector. to EPZ workers, but are less frequent. Over time, it is expected that the FSP will increase the education and skills of the RMG sector’s work- Priority issues include malnutrition and menstrual force. In the future, an educated female workforce hygiene. “Women are more malnourished than could contribute to increased foreign investment men at every stage of life but this phenomenon in the RMG sector, and to potential investments is more visible in the case of adolescent girls and in other higher-value sectors, such as electronics pregnant mothers. A quarter of maternal deaths parts assembly and IT services. are associated with anemia and hemorrhage.�31 In Bangladesh, 47 percent of preschool-age children A study underway at Yale University, seeking to and pregnant mothers are anemic, and 25 per- demonstrate the positive impact of women’s em- cent of pregnant women are deficient in vitamin ployment in the garment sector on their village A.32 A 2003 study by the Bangladesh Institute of communities, has found a correlation between Development Studies found that over 30 percent women with jobs in the garment sector and of women had developed chronic illnesses such as 5-year-old girls attending school: If the number gastrointestinal infections, urinary infections, and of women with jobs in the garment sector doubles, anemia since starting work in the garment sector.33 the likelihood of girls in schools increases by al- most 7 percent.26 26 Bajaj, Vikas, “Garment Factories, Changing Women’s Recent studies have noted that newer hires in Roles in Poor Countries�, New York Times Economix, zones tend to have higher education levels.27 Fe- July 2010. 27 Center for Policy Dialogue (CPD) and World Bank male workers in EPZs also tend to have higher ed- (2007), Bangladesh’s Apparel Sector in Post-MFA Period: ucation and skill levels than other female workers. A benchmarking Study on the Ongoing Restructuring Pro- One study found that female workers in EPZs had cess, Dhaka. an average of 8 years of education, compared with 28 Center for Policy Dialogue (CPD) and World Bank 4 years for women working outside the zones.28 (2007), Bangladesh’s Apparel Sector in Post-MFA Period: However, many older women currently work- A benchmarking Study on the Ongoing Restructuring Pro- cess, Dhaka; Kabeer, Naila and Simeen Mahmud, Rags, ing in Bangladesh’s zones likely left school prior Riches, and Women Workers: Export-oriented Garment to the government reforms and have lower levels Manufacturing in Bangladesh, Report prepared for the of formal education. Also, the perception among Commonwealth Secretariat, London, 2004; Kabeer, managers is that female workers are less educated; Naila, and Simeen Mahmud (2004), Globalization, efforts must be made to change these perceptions. Gender and Poverty: Bangladeshi Women Workers in Ex- port and Local Markets, Journal of International Devel- opment, Volume 16. 29 BSR, Women’s General and Reproductive Health in Global Health Supply Chains, October 2006. Female factory workers in Bangladesh are vulnerable 30 Paul-Majumder, Pratima, “Health Status of the Gar- to myriad of health issues, including malnutrition, ment Workers in Bangladesh�, Bangladesh Institute of communicable diseases, pregnancy complications, Development Studies, 2003. 31 Asian Development Bank, “Country Briefing Paper: incorrect use of family planning materials, and re- Women in Bangladesh�, August 2001. productive infections and diseases. Key areas of need 32 World Bank, “Nutrition at a Glance: Bangladesh�, 2010. included pre- and postnatal care, HIV/AIDS, nutri- 33 Paul-Majumder, Pratima, “Health Status of the Gar- tion, family planning, early detection of breast and ment Workers in Bangladesh�, Bangladesh Institute of cervical cancer, and occupational safety and general Development Studies, 2003. 82 Fostering Women’s Economic Empowerment through Special Economic Zones Sanitation, access to water, and health taboos and Religious-cultural Context prejudices impact women’s menstrual hygiene and Rural women migrating to urban areas for jobs reproductive health.34 Reproductive-tract infec- in the RMG sector have participated in a social tions are common, and many women miss work revolution, softening the conservative culture by during their menstrual cycle because of pain and increasing women’s formal employment and free- embarrassment. In individual and focus-group dom of movement.42 conversations with approximately 25 factory op- erations and human resources managers, the study Female garment-factory workers are seen to “rep- found that the majority were familiar with the is- resent the new generation of women workers and sue of menstrual hygiene because of its impacts on perhaps the future trend setters� from a sociocul- their rates of absenteeism.35 tural perspective.43 Employment in the garment industry has increased the age of marriage, im- Family planning products are for the most part proved the financial condition of young women’s available to women (note the very low figure of 17 families through remittances, and reduced the percent of women with unmet FP needs in Table dowry in many areas of the country. These changes 7), especially in urban areas, and are widely used by have also corresponded with a significant increase female garment workers. However, interviews also revealed common misuse of those products out of lack of awareness. For example, one NGO said that 34 Asian Development Bank, “Country Briefing Paper: Women in Bangladesh�, August 2001. many women take 2–3 types of oral and injected 35 BSR Interviews with factory managers in Dhaka and contraceptives at once.36 Such misuse can enhance Chittagong, February 2010 and June 2010; BEPZA rather than reduce risk of unplanned pregnancies Investor Workshop, May 31, 2010. or other health risks to women. 36 BSR Interview, Awaj Foundation, June 2010. 37 Cruelty to Women (Deterrent Punishment) Ordinance Though illegal,37 domestic violence and other (1983); Repression against Women and Children (Spe- cial Enactment) Act XVII (1995); Women and Chil- violent acts against women are common, and are dren Repression Act (2000, 2003). closely related to women’s isolation and restricted 38 National Institute for Population Research and Train- movement, particularly in rural areas. The 2007 ing (2007), Bangladesh Demographic and Health Sur- Bangladesh Demographic and Health Surveys veys, Ministry of Health and Family Welfare, Dhaka. 39 Asian Development Bank, “Country Briefing Paper: by the National Institute for Population Research and Training found that 49 percent of women who Women in Bangladesh�, August 2001; Perman, Sarah et al, “Behind the Brand Names: Working conditions and had ever been married had experienced violence labour rights in export processing zones�, International in their current or most recent marriage. One in Confederation of Free Trade Unions, December 2004. four married women surveyed said they had ex- 40 BEPZA Counselor survey data, March–April 2010. perienced physical and/or sexual violence often or 41 Salway, Sarah, Sonia Jesmin, and Shahana Rahman sometimes in the past year.38 (2005), Women’s Employment in Urban Bangladesh: A Challenge to Gender Identity? Proshika Manobik Un- nayan Kendra, the London School of Hygiene and Reported rape incidents also increased rapidly in Tropical Medicine and the University of Bath. the mid- to late 1990s, and reported sexual ex- 42 World Bank (2008), Whispers to Voices: Gender and Social ploitation remained high as of 2004.39 Incidents Transformation in Bangladesh, South Asia Sustainable of physical sexual abuse in the workplace are per- Development Department, Bangladesh Development haps less common, especially in export processing Series Paper No. 22, World Bank, Washington D.C.; zones, but findings did reveal higher levels of con- BSR Interviews: Engender Health, War on Want, WEA, February 2010. cern regarding security among female workers than 43 World Bank (2008), Whispers to Voices: Gender and Social among males.40 Earning wages has also been dem- Transformation in Bangladesh, South Asia Sustainable onstrated to increase women’s status in the home, Development Department, Bangladesh Development and to help protect them from domestic violence.41 Series Paper No. 22, World Bank, Washington D.C. Bangladesh Case Study 83 in the availability and uptake of contraception— far away from workplaces or in isolated areas. This one study found that 99 percent of married women study gathered reports of women needing to wake had access to contraceptives44—although inter- at 5am to be at work by 8am, for example, because views found remaining challenges in the proper of these combined issues. usage of contraceptives.45 Land availability, for industry and residential zon- Women’s self-esteem and self-perception have also ing, is an enormous and growing challenge in changed because of new sets of social relation- Dhaka and in the industrial areas of Chittagong. ships in all- or majority-female households and This limits the availability of safe housing for work environments—as Sabrina Islam, president young women migrating to urban areas for work. of the Women Entrepreneurs’ Association, said, “Look at how they hold themselves, with confi- A 2007 study found that workers in the RMG sec- dence.�46 The acquisition of independent income tor (both in EPZs and outside) lived in tin-roof has shifted women’s status in their family and in houses (74 percent), pucca51 houses (24 percent), society at large, giving them personal purchasing or thatched houses (2 percent). In the same study, power, access to bank accounts, and the ability to female workers expressed concerns about security support their family financially.47 One study found in and near their homes, and researchers found that remittances from female garment workers had that access to pure drinking water and sanitary toi- contributed to an increase from 22 percent to 43 lets was limited.52 A 2000 study found bathrooms percent of families living in brick houses.48 “shared between 16–22 boarders, on average, and cooking gas burners or heaters shared between Other studies have found that women remain fi- nancially dependent, especially married women, even when they are earning income from jobs in 44 National Institute of Population Research and Train- the garment industry. Single women are more ing, Dhaka, Bangladesh Demographic and Health Survey, 2007. likely to feel empowered by their earnings, while 45 BSR Interview, Awaj Foundation, June 2010. married women traditionally have tended to give 46 BSR Interview, Sabrina Islam, WEA, February 2010. their earnings to the male heads of household, who 47 Pakistan Institute of Labour Education & Research in turn give the women a monthly allowance,49 and South Asia Alliance for Poverty Eradication, “Or- though there is some perception that this situation ganizing for Labour Rights: Women Workers in Tex- is changing. Research for the study also revealed a tile/Readymade Garments Sector in Pakistan and Ban- gladesh, 2009. strong need for improving female workers’ finan- 48 Pakistan Institute of Labour Education & Research cial literacy and access to microsavings accounts— and South Asia Alliance for Poverty Eradication, “Or- both would enhance their financial independence ganizing for Labour Rights: Women Workers in Tex- and improve their ability to contribute to support- tile/Readymade Garments Sector in Pakistan and Ban- ing their families via safer remittance processes.50 gladesh, 2009. 49 Ahmed, Erfan Fauzia (2001) The Rise of the Bangladesh Garment Industry: Globalization, Women Workers, and Voice, Volume 16, Number 2, Summer 2004, pp. 34–45, Housing Indiana University Press. The substandard living conditions of most gar- 50 BSR Interviews with BEPZA Counselors, Chittagong ment workers create time, efficiency, health, and EPZ, February 2010; BSR Interview, MAMATA, Feb- safety concerns. For example, the lack of running ruary 2010. 51 Pucca houses are made of brick and cement with iron water and electricity in slums means that women reinforcement. often have to line up to use a shared gas burner 52 Center for Policy Dialogue (CPD) and World Bank to boil water. Similarly, they must stand in line to (2007), Bangladesh’s Apparel Sector in Post-MFA Period: use shared bathrooms and showers. Finally, trans- A benchmarking Study on the Ongoing Restructuring Pro- portation is often a challenge, if slums are located cess, Dhaka. 84 Fostering Women’s Economic Empowerment through Special Economic Zones 10–15 families.�53 A 2004 study identified that of supervisors are female, compared to 62 percent 100 percent of female workers in EPZs were liv- of workers.60 ing in rented accommodations.54 However, women working in EPZs were more likely than women There are a variety of explanations for women’s working in other industries or locations to live in a failure to advance in the workplace in Bangla- house made of durable materials with access to an desh’s EPZs. One explanation provided by both independent water supply.55 These findings were BEPZA counselors and factory managers was that confirmed in interviews with BEPZA counselors women didn’t want to be supervisors—the hours and NGOs, including Awaj Foundation and NUK were too long, the pay was salaried, which meant (the Centre for Women’s Initiatives).56 no overtime, and they didn’t want the responsibil- ity.61 Overall, women were found to be less likely The logistics of renting also come with complica- to advance for the following reasons: tions. BEPZA counselors commented that most landlords require a man to sign a lease, and most MM Skills gap: Lack of technical, life, communica- women working in the garment sector cannot af- tion, and management skills; ford to live on their own.57 As a result, many women MM Education gap: Higher rates of illiteracy and share cramped accommodations with two or more innumeracy; women or a married couple. Regarding cost of MM Limited training to enable low-wage women living, a 2000 report found that women garment- workers to improve their skills and move up; factory workers spent 52 percent of their income MM Perception of women as short-term workers, on housing, compared to only 34 percent for their likely to leave when they marry; and male colleagues. This implies one of two things— that women tend to invest more in housing than men or that there is a gender-based wage gap. The 53 Afsar, Rita (2000), “Gender Dimensions of labor mi- likely reality is a combination of both factors, sug- gration in Dhaka city’s formal manufacturing sector�, in Women’s Employment in the Textile Manufacturing gesting that women could increase their savings Sectors of Bangladesh and Morocco, ed. By Carol Miller and remittances if safe, lower-cost housing options and Jessica Vivian, Geneva: The Institute, 2002. were made available to them.58 BEPZA counsel- 54 Kabeer, Naila and Simeen Mahmud (2004), Globaliza- ors emphasized the value of the government or the tion, Gender and Poverty: Bangladeshi Women Workers in zone making gender-segregated housing options Export and Local Markets, Journal of International De- available, particularly for young female migrants.59 velopment, Volume 16. 55 Kabeer, Naila and Simeen Mahmud (2004), Globaliza- tion, Gender and Poverty: Bangladeshi Women Workers in Export and Local Markets, Journal of International De- Professional Advancement velopment, Volume 16. Opportunities 56 BSR Interviews with Nazma Akhter, Awaj Foundation, EPZs in Bangladesh provide significant and often June 1, 2010, and Mashuda Shefali, NUK, May 30, 2010. 57 BSR Interviews with BEPZA Counselors, Chittagong unique opportunities for women to enter the for- EPZ, February 2010. mal workforce. A remaining challenge is provid- 58 Afsar, Rita (2000), “Gender Dimensions of labor mi- ing opportunities for female workers to advance gration in Dhaka city’s formal manufacturing sector�, beyond entry-level positions, which are often un- in Women’s Employment in the Textile Manufacturing skilled or low-skilled jobs. Sectors of Bangladesh and Morocco, ed. By Carol Miller and Jessica Vivian, Geneva: The Institute, 2002. 59 BSR Interview, BEPZA Counselors, Chittagong EPZ, Although women tend to constitute the majority February 16, 2010. of unskilled or low-skilled workers in zones, the 60 BSR/BEPZA Counselor research, April–May 2010. majority of supervisors remain male. For example, 61 BEPZA Counselor Interviews, Chittagong and Dhaka BEPZA Counselor reports on 13 randomly se- EPZs, February 2010; Factory visits, Dhaka and Chit- lected factories revealed that on average 22 percent tagong EPZ, February 2010. Bangladesh Case Study 85 MM Inability to transfer length of service to new 8 years for women), and that some factory manag- factories when women leave for marriage, ma- ers noted less turnover and more loyalty in their ternity, or by choice for a new job. female worker cohort.66 Another external study also found high proportions—between 40 and 50 Lack of education was the reason most frequently percent—of married female workers within the cited by factory managers for women not being RMG sector.67 A developing trend is for women to promoted to line supervisor; the managers often marry male factory workers and remain in the city explained that they would prefer to promote female past marriage, and sometimes after they have had workers if their education levels were higher.62 children. It is particularly common for both male and female workers to want to keep jobs in EPZs, Another widely held perception, among both as these are viewed as more desirable, because of workers and management, was that women pos- higher pay and better working conditions. Thus, sess fewer leadership qualities than men. One the perception of women as short-term employ- manager said, “Many male workers prefer male ees may be increasingly irrelevant within the EPZ supervisors over female,� which corresponded to a context. Hopefully, this shift will be accompanied similar comment by a male worker: “I do not like by an increased investment in women’s manage- female supervisors—they cannot lead workers�. ment potential and promotion. Others said that women lacked critical manage- ment skills—for example, that women are afraid of decision making and they find it difficult to com- Opportunities and Challenges for municate with others.63 Female Entrepreneurs The culture of female entrepreneurship is very The study also found instances of high numbers strong in Bangladesh, largely founded and sup- of female supervisors and managers who valued ported by the Grameen Foundation’s (and other female over male supervisors. For example, of the organizations’) introduction of microfinance and, 13 factories surveyed, the two with the highest in particular, small loans programs targeting wom- percentages of female supervisors had 71 and 45 en. What’s more, the RMG industry has increased percent, respectively.64 At a workshop with factory the population of women with expendable income, management in May 2010, representatives from supporting the development of women’s entrepre- one factory commented that they had over 90 per- neurial opportunities to sell goods such as clothes, cent female supervisors and that they felt women jewelry, and food to a new generation of consumers. made excellent managers.65 Within this climate, small female-owned business- Finally, perception and prejudice play a large role es flourish with strong leadership from women’s in women’s lack of advancement. In-factory inter- business associations and female entrepreneurship views and focus groups with BEPZA counselors groups like the Bangladesh Federation of Women confirmed a widely held perception among factory Entrepreneurs (BFWE), the Bangladesh Women’s managers of women, particularly young unmar- ried girls, as temporary or transient workers who 62 BSR/BEPZA Counselor research, April–May 2010. are expected to leave the factory after 2–3 years to 63 BSR/BEPZA Counselor research, April–May 2010; get married. This perception reduces factory man- BEPZA Investor Focus Group, May 31, 2010. 64 BSR/BEPZA Counselor research, April–May 2010. agement’s willingness to invest in female work- 65 BEPZA Investor Focus Group, May 31, 2010. ers for long-term employment and up-skilling. 66 BSR/BEPZA Counselor research, April–May 2010. In fact, BEPZA Counselor reports and surveys 67 Kabeer, Naila and Simeen Mahmud, Rags, Riches, and found that within EPZs, there was actually a neg- Women Workers: Export-oriented Garment Manufactur- ligible difference in service length between men ing in Bangladesh, Report prepared for the Common- and women (8.6 years on average for men versus wealth Secretariat, London, 2004. 86 Fostering Women’s Economic Empowerment through Special Economic Zones Chamber of Commerce and Industry (BWCCI), often resist expanding their business from small Women in Small Enterprise (WISE), and the to medium, because of either risk aversion, lack of Women Entrepreneurs’ Association (WEA). confidence, or lack of financial resources.70 Out- reach programs run by WEA, WISE, and BW- However, in Bangladesh, as in other countries vis- CCI are working to improve women’s confidence ited for this study, women struggle to create busi- and to enhance the existing entrepreneurial culture nesses in zones, or businesses that link to the ex- among Bangladeshi women. port market more generally.68 In addition to these general challenges, some zone- Female entrepreneurs in Bangladesh face chal- specific challenges exist. It may prove difficult to lenges to investing in zones with regard to the fol- replicate the successful model of small, female- lowing areas: owned businesses, primarily in the service and retail sectors, within zones. Currently only export- MM Access to capital oriented companies are allowed in zones, beyond MM Access to land a few limited service organizations (banks, post MM Skills and business-management knowledge offices) that are located near BEPZA offices to MM Identification of markets, marketing products, serve administrative officials. This status quo lim- and export-specific knowledge its economic participation within zones to factory MM Intimidating, time consuming, and bureau- ownership, and there are currently very few female cratic administrative requirements for starting factory owners. a formal business MM Corruption or bribery in the system for obtain- A final challenge for women is the location of ing a business license zones, which are often far from the city center. For MM Access to a business network example, Dhaka EPZ is located 1–2 hours outside MM Location and distance of zones outside of cit- of the city center. Given their traditional role at ies (making it difficult to balance work with home, women find it difficult to locate a business women’s responsibilities at home) so far away from their residence. To create realistic MM Confinement to small businesses in female- opportunities for female entrepreneurs in zones, dominated sectors any program or policy should first target local women who live within close proximity to zones. Administrative requirements for starting a formal business can be intimidating for women, particu- larly those with no formal business training. In ad- Investment Opportunities for Female dition, women creating businesses are as likely as Entrepreneurs in Zones men to fall victim to corruption, such as demands Although there is currently limited female entre- for bribery in exchange for a business license, and preneurship in zones, the potential exists for wom- are often less adept at navigating their response to en business owners to participate economically in such situations.69 Organizations like the Women’s zones in three ways: Chamber of Commerce are trying to minimize this disparity for female entrepreneurs through a training program on principles of women’s rights and negotiation skills for female entrepreneurs. 68 Interviews with female entrepreneurs, Bangladesh Feb- ruary 2010, Kenya May 2010. 69 BSR Interview with President, Women’s Chamber of Once they are able to start a business, many fe- Commerce and Industry, February 2010. male entrepreneurs remain confined to small busi- 70 BSR Interview with President, Women in Small En- nesses in female-dominated sectors. According to terprise (WISE) and Bangladesh Federation of Wom- BFWE and WISE, many women they work with en Entrepreneurs (BFWE), 2010. Bangladesh Case Study 87 1. Women-owned factories: Currently, female inves- Zone Compliance Monitoring: BEPZA tors are very uncommon in Bangladesh’s zones. Counselors Program According to WEA, BWCCI, and WISE, many MM Type: Program that covers labor and social women lack the formal business training in compliance, including gender, environmental, communications, marketing, and budgeting that and occupational health and safety issues, as might help them create business opportunities well as providing informal dispute mediation in zones. Addressing this deficit will require pro- MM Who: BEPZA, IFC viding women with training programs on inter- MM Where: In 300+ firms in all 8 EPZs in Ban- national markets and exporting, access to capital, gladesh and possibly ongoing technical assistance. MM Time frame: 2006–present (as of June 2011) 2. Supply-chain linkages to female-owned business- MM Cost: Approximately US$375,000 per year to es: According to WEA, BWCCI, and WISE, cover 56 counselors’ salaries and benefits, as many women are running small businesses that well as other program costs, such as materials could offer supply-chain services to enterprises and impact measurement in zones, such as button or zipper manufactur- MM Benefit to women: Residual but significant, as ers. However, they generally lack access to these 64 percent of workers in the zones are women companies or the know-how to market their MM Benefit to business: (1) Low-cost and neutral products to them.71 BEPZA could play a role monitoring mechanism supports level playing in creating opportunities for such businesses to field for BEPZA investors; (2) Continuous market their services to BEPZA investors. compliance improvement mitigates risks for 3. Female-owned small businesses within zones: investors and BEPZA; (3) Worker counseling Small service and retail businesses in zones aspect addresses concerns before they become currently cater to the needs of investors and grievances; (4) Programs assist in reducing BEPZA. A collection of female-owned small worker unrest in the zones businesses seeded in zones could broaden this scope to also serve workers through cafes, The BEPZA Counselors Program was introduced small shops, and services like laundries or pri- as a zone-level monitoring system to assess com- vately run day-care centers. A partnership with pliance with labor standards. The program cur- WISE or WEA could identify female entre- rently has 56 counselors: 38 men and 18 women. preneurs and link to MIDAS, which provides Each Counselor is part of a 2-person team that is small business loans to women. assigned to a zone and 5–10 individual factories, which they are responsible for monitoring. Moni- toring results are shared with BEPZA and kept Good-Practice Enablers of Women’s confidential from factories and buyers. The Coun- Economic Empowerment in selors also work as informal dispute arbitrators and Bangladesh help resolve grievances. Through fieldwork and other research in Dhaka Over the course of the 5-year program, BEPZA and Chittagong zones, this study identified poli- counselors contributed to significant improve- cies, initiatives, and business practices that support ments in the number of factories with proper economic opportunities for women and increase grievance procedures, from 35 percent in 2005 to competitiveness for enterprises and zones. The 90 percent in 2010. In addition, the number of fac- following programs represent good practices we tories with effective disciplinary measures in place identified in Bangladesh, which have the potential also rose from 35 percent to 91 percent. As ex- to be replicated in other zones or enterprises in Bangladesh, as well as in zones and enterprises in 71 BSR Interviews, Female entrepreneur organizations, other countries. February 2010. 88 Fostering Women’s Economic Empowerment through Special Economic Zones pected, the increase in proper grievance procedures issues, and a campaign to raise awareness among and disciplinary measures helped to decrease filed both workers and factory management of rights grievances over time: Filed grievances fell from ap- and responsibilities through posters, booklets, proximately 2,500 in 2005 to approximately 400 in and serial dramas to address the remaining gaps 2009.This increase in grievance resolution shows in awareness. a strong correlation with increased disciplinary measures and overall safety and security under the program. Women’s Health Program for Business Returns: Extending Service Several factors contribute to the effectiveness of Delivery Program and ROI Study this program for female workers. First, the ma- MM Type: Workers’ rights protection, health, and jority of workers in the zones are female. Second, well-being program the majority of supervisors in the zones are male. MM Who: Extending Service Delivery Project And third, there are sufficient numbers of female (USAID), Investor, Health Solutions Partici- counselors to allow most female workers access patory Development Appraisal (HSPDA) to them. As a result of the above factors, female MM Where: Chittagong garment factory workers take advantage of the program to report MM Time frame: 2005–2006 workplace grievances, sexual harassment, and oth- MM Cost: US$47 per week for direct and indirect er concerns to female counselors. This model, first costs for clinic staff and medicines and full pay tested by YoungOne factory in Chittagong EPZ, to workers during clinic visits and scheduled empowers the Counselor to help workers address peer education sessions; ROI research study both personal and professional concerns and avoid costs were additional. unnecessary conflict. MM Benefit to women: Direct benefits through in- creasing female workers’ health awareness and Building on the success of the monitoring pro- their access to information and services both gram, IFC and BEPZA have begun a new aware- within the factory clinic and through outside ness-raising campaign for social management referrals. within zones. The campaign is being tested in MM Benefit to business: Program delivered a $3:$1 Dhaka EPZ and will later be rolled out in Ban- return on investment in the form of reduced gladesh’s other zones. The campaign will use the absenteeism, reduced turnover, and increased existing monitoring forms, a needs assessment of productivity. current levels of awareness of social compliance The participating Chittagong factory had 450 employees, 84 percent of whom were women. A baseline assessment conducted by local partner 1000 900 HSPDA in November 2004 found the availability 800 of “health facilities at the factory� to be the high- Number of grievances 700 est priority of workers at 66 percent, over a subsi- 600 dized cafeteria, transportation assistance, or new 500 400 machinery (each at 33 percent). Fifty percent of 300 managers agreed that there was a need for health 200 facilities. 100 0 2006 2007 2008 2009 HSPDA supported program implementation, Delay in payment Procedure not followed properly which included funding a factory-based clinic op- Resignation Letter not easily received Physical abuse erating 3 days per week at a cost of approximately Show cause notice given without any reason US $47 per week. The health team comprised a Bangladesh Case Study 89 doctor (Ob/Gyn), a nurse-counselor, and an at- Comprehensive Partnership Program, tendant. Over the 18 months of the program ( Jan. Chittagong EPZ 2005–June 2006), the clinic recorded 1,145 con- MM Type: Workers’ skills, health, and financial in- sultations, which provided 2,263 treatments. clusion program MM Who: CARE Bangladesh, Timberland, Young The program also included a peer education pro- One, Mamata gram that sought to raise awareness among work- MM Where: YoungOne facilities, Chittagong EPZ ers about the services available in the clinic and the MM Benefit to women: Improved health awareness importance of utilizing the services. For visiting and communication skills, and increased finan- the clinic and receiving basic health services and cial decision-making power. information, including reproductive health and MM Benefit to business: Improved worker-man- family planning products, workers paid a co-pay of agement communication, reduced turnover Tk 5 (or seven US cents) per visit—the equivalent and absenteeism. of the cost of a cup of tea or two bananas at a local food vendor. The Comprehensive Partnership Program began in 2002 with the objective of improving the skills, In examining the business value of the program health, and financial stability of the more than over 18 months, the study found the following: 22,000 female workers in YoungOne factory in Chittagong EPZ. The program used a combina- MM Audit Data: tion of peer education, community-based educa- XX Average of 18 percent fewer days lost to ab- tion, counseling, advocacy, and community mobi- senteeism (from 867 to 712); lization to achieve its objectives. XX A 46 percent decrease in staff turnover (from 40 to 21) Program contents included: MM Worker Interviews: Whether or not they used the onsite clinic services, clinic availability made MM Awareness-raising about health and hygiene workers and rights and responsibilities through peer- XX Less likely to be absent from work to-peer education, community outreach, and XX More likely to stay in their current job an information booth; XX More likely to have positive attitudes to- MM A street fair exploring “women’s vulnerability ward factory management in the home and at the workplace�; MM An early childhood development training pro- The study quantified the monetary value of the gram for mothers and nursery staff, including return on investment in reduced absenteeism and schooling, growth monitoring, and parenting turnover as US $3:$1 over the 18-month program methods; period. MM Health education about hygiene, HIV/AIDS, immunization, and food and nutrition as well Factors contributing to the program’s success in- as referral to health services, including Mamata cluded (1) support from senior management and and YoungOne clinics; line supervisors for the creation of the onsite clinic MM Finance programs, including a savings account and worker use of the clinic; (2) the needs-based program and loans of Tk 3,000 to 25,000 with design of the program, which directly responded monthly repayment. The savings account pro- to workers’ expressed health needs; (3) the combi- gram has a 2 percent monthly service charge nation of services with information sharing using a peer education model; and (4) the high compe- tency level of the clinic nurse.72 72 ESD, “Effects of a workplace health program on absen- teeism, turnover, and worker attitudes�, 2007 90 Fostering Women’s Economic Empowerment through Special Economic Zones and yields 6 percent annual interest. Money is intentionally target female workers, yet the collected in the factory at booths set up on a high percentage of women in the workplace monthly basis. The financial program is cur- were reflected in the films. The videos were rently self-sustaining. made in 2008 and released in 2009, and cost approximately Tk 100,000 to produce, with The program delivered multiple benefits for work- additional resource investment by H&M staff ers and YoungOne. For example, female workers in Bangladesh. H&M shares the videos with improved their communication and decision-mak- any company who demonstrates a clear com- ing skills, contributing to improved worker-man- mitment to improving its workers’ rights and agement communication. Incidence of sickness de- responsibilities awareness.74 creased and turnover in production units decreased. MM Gap’s Literacy Program with CARE Bangladesh In addition, the micro-savings and loan program provides basic literacy training to female gar- was highly successful at increasing female work- ment workers and other women in their commu- ers’ control over their income, and the program will nities through community-based night schools. continue, funded by workers’ investments.73 Literacy centers are open to participation by any women in the serviced communities.75 MM A partnership between Bangladesh Garment Various Brand and Industry Manufacturers Employers’ Association (BG- Association Programs Supporting MEA) and Smiling Suns Clinics arranges ro- Women’s Health, Rights, and Literacy tating doctor visits to garment factories with MM Type: Programs, various factory and BGMEA financial contributions. MM Who: International buyers, local NGO part- MM The Wal-Mart Literacy and Empowerment Pro- ners (various; see below) gram with CARE Bangladesh provides work- MM Where: Bangladesh, various locations place skills and literacy training. Education MM Benefit to women: Improved awareness and sessions also address maternal and child health, skills, and improved health nutrition, hygiene, and sanitation. Workplace MM Benefit to business: Improved garment-indus- skills training provide design, sewing, equip- try workforce, specific factory workforce, and ment handling, and other on-the-job skills.76 more stable communities. These multinational companies and others feel that Because of the importance of Bangladesh as a the business benefits from such programs are sig- sourcing destination and the prevalence of women nificant to both themselves and their supplier fac- within the factory workforce, many international tories. According to one company interviewed, the companies have invested heavily in social pro- business benefits of investing in women go beyond grams to benefit female factory workers in the one factory or one international company; support- country. Programs address women’s health chal- ing female factory workers is directly tied to the lenges, rights awareness, and basic education. sustainability of the garment industry as a whole.77 Some examples of brand programs targeting wom- en are highlighted below: 73 BSR Interview, MAMATA and YoungOne, February 2010. 74 BSR Interview, H&M, February 2010. MM H&M Rights and Responsibilities Soap Operas 75 BSR Interview, Gap, June 2010. introduce the concept of rights and responsi- 76 Retail in Asia (Wal-Mart press release), http://www.retai- bilities for workers through culturally sensitive linasia.com/article/sectors/department-stores/2010/06/ and locally produced video dramas that can be walmart-and-care-launch-womens-empowerment-ini- shown during the factory lunch hour or other tiative-bang, 06/19/2010 (visited 06/28/10). break periods. The soap opera format did not 77 BSR Interview, June 2010. Bangladesh Case Study 91 Opportunities for Innovation in 3. Create women’s welfare subcommittees within Bangladesh workers’ associations to support women’s par- ticipation in associations, and to ensure the in- Women represent the majority of workers in ex- clusion of women’s perspectives and concerns port processing zones in Bangladesh, and as such, in conversations with management. any investment in this group will have far-reach- 4. Support women’s health education and services ing impacts, from both business and social per- and improve workers’ nutrition for the sake of spectives. This study recommends giving women health and business benefits. additional access to health information and ser- 5. Create a zone-sponsored child-care center to vices, improved nutrition, improved representa- increase workers’ uptake of and benefit from tion, training and professional advancement op- factory-level child-care services. portunities, and child care. The recommended investments will deliver busi- Implications for Competitiveness ness benefits to BEPZA investors in the form of reduced absenteeism and turnover, improved Most current programs specifically targeting worker morale and worker-management com- women in Bangladesh are conducted at the enter- munication, improved productivity, and enhanced prise level, but there is great potential to expand reputation. The investments will also contribute to the positive business impact of enterprise-level business benefits for BEPZA through increased programs at the zone level. investor satisfaction, enhanced “one-stop� service provision, and ideally, increased investment and The business case for programs targeting women employment opportunities in BEPZA zones. in Bangladesh is presented below from three dif- ferent angles: In addition, there are opportunities for BEPZA and BEPZA investors to demonstrate innovative Enterprise: Do programs and policies targeting leadership and forward thinking. For example, women reduce turnover and absenteeism and/or stakeholders can acknowledge that the current increase profitability? system to provide child care under the law is not working, and suggest an alternative in the form of MM Quantitatively and qualitatively, factories and high-quality, independently run BEPZA child- international buyers have found benefits to care centers. This concept and three others are in- businesses from workplace programs targeting troduced below for consideration as opportunities women, in the form of enhanced worker loyalty to address challenges in Bangladesh EPZs through and skills, reduced absenteeism, and reduced investment and innovation. turnover. It can be assumed that the above re- sults also contribute to improved productivity This study makes five recommendations for im- and quality. provement in Bangladesh: MM The second area of business benefit is in risk mit- igation, preventing capital flight and supporting 1. Establish bank accounts for workers with di- compliance with the law vis-à-vis women work- rect wage deposit, and deliver financial literacy ers’ rights. This is important to buyers, and, as training to them. women are among the most vulnerable employ- 2. Create a zone-coordinated, government-subsi- ees, their need for protection is heightened. dized, and investor-funded vocational training program to provide work- and life-skills train- Zones and BEPZA: Do programs and policies ing to workers and supervisors. targeting women increase the likelihood that busi- nesses will locate in the zone? 92 Fostering Women’s Economic Empowerment through Special Economic Zones MM Zones in Bangladesh currently have the reputa- Methodology tion of providing generally better pay and work- ing conditions than factories outside of the zones. This case study is based on findings from a com- This reputation can be further enhanced by an- bination of stakeholder organization interviews, nouncing a renewed focus on women working in qualitative factory-based research, and desk re- EPZ factories. In addition, the benefits of legal search. The primary research included 45 one-on- compliance and greater ability to meet buyers’ one and group interviews with civil society groups, standards within the zones rather than outside workers’ organizations, government, and private- can help Bangladesh’s EPZs grow their share of sector stakeholders (including international buyers the export market. Though legal compliance is and factory managers). not specific to women, improved compliance will disproportionately impact women through com- To collect SEZ-relevant statistical data, BEPZA pliance with policies providing protections such counselors (see Good Practice Example 1, above) as child care and maternity leave. supported collection of information on a random- MM If BEPZA develops some zone-level policies ized sample of factories and interviewed a sample or programs targeting women, it can also use of 395 workers—208 female and 187 male. These findings on the enterprise-level business ben- activities were used to assess unique challenges and efit to encourage investors to locate in the zone. opportunities for female workers in EPZs. National Economy: Do programs and policies Using tools developed by the researchers, BEPZA targeting women contribute to job creation and counselors conducted 41 group interviews with increase foreign investment and GDP? There is a total of 395 workers. At least 2 women and 2 less evidence of this type of impact; however, a few men were interviewed at each facility. Thirteen assumptions might be made: factories were randomly selected for detailed re- ports by counselors. The thirteen factories included MM Improving the working conditions and liv- 7 garment, 2 ladies’ undergarment, 2 tent, 1 pant ing standards of female factory workers in the (flat-knit), and 1 t-shirt (flat-knit) manufacturing EPZs will contribute to an improved percep- facility. Of the factories included, the average size tion of Bangladesh as a sourcing destination was ~2,000 workers with approximately 62 percent for international buyers, which may lead to in- women and 38 percent men. creased foreign investment. MM Increasing the skill level of the female workforce A significant body of literature exists on the RMG through enterprise- and zone-level programs sector in Bangladesh and the role of women within will also contribute to enhancing Bangladesh’s that sector. Primary research was augmented by competitiveness for foreign investment in the desk research, including twenty-four Bangladesh- RMG industry. It may also support the growth specific reports, in addition to a review of related of higher-skilled manufacturing industries, global research. such as electronics. Bangladesh Case Study 93 Resources: Key Implementers and Experts in Bangladesh Organization Name Location Focus Area Awaj Foundation Dhaka Workers’ rights, workplace programs, living wage, women’s rights, women’s health Bangladesh Federation of Women Entrepreneurs Dhaka Various programs to support women entrepreneurs: Advocacy, training, exchange programs, mini-mart startups, mentoring Bangladesh Institute of Labour Studies (BILS) Dhaka NGO promoting workers’ rights and human rights. Specific program targeting women workers, Common Demand for Women Workers, includes advocacy, leadership training programs, women’s committees within trade unions. Bangladesh Legal Aid and Services Trust (BLAST) Dhaka Legal aid NGO Bangladesh Mahila Parishad Dhaka Women’s legal aid and advocacy organization Bangladesh National Women Lawyer’s Association Dhaka Women’s legal aid and advocacy organization Bangladesh Women’s Chamber of Commerce and Chittagong Women’s business association. Runs trainings for female business owners. Industry BRAC Various Poverty-alleviation programs including education, health, knowledge and skills training, social enterprise, and human rights and legal services. CARE Bangladesh Dhaka Programs focused on women’s health and empowerment. Some workplace programs, working with local organizations such as Mamata and Sheva. Chittagong Women’s Chamber of Commerce and Chittagong Women’s business association. Industry Engender Health Various Women’s health experts. Provide trainings to doctors and nurses, work mostly in rural areas. GTZ Dhaka German government donor supporting development programs. Progress Program promotes social and environmental production standards in the RMG industry. Joint program of Bangladesh Ministry of Commerce and the German Federal Ministry of Economic Cooperation and Development (BMZ), implemented by GTZ and partners. INCIDIN Dhaka Community and Industrial Development Initiative in Bangladesh. Conducts research and implements programs serving vulnerable populations. Karmojibi Nari Dhaka Organization of women workers, striving to establish rights, dignity, and authority of women workers as well as women and laborers. Mamata Chittagong Workers’ empowerment, women’s empowerment, access to finance, women’s health, literacy, community outreach Marie Stopes International, Bangladesh Various Women’s health experts and implementers. Have train-the-trainer programs for social compliance, offerings on women’s health and life skills, also factory-nurse training programs. NUK (Centre for Women’s Initiatives) Dhaka Gender equality and women’s rights organization. Large social audit program. Phulki Dhaka Child care, services for working women, women’s health. Programs training Partners in factory child-care providers and raising awareness of providers among mothers. Chittagong Sheva Dhaka Social compliance monitoring, workers’ rights and empowerment Smiling Suns Clinics Dhaka Community health clinics. Recently signed agreement with BGMEA to provide factory doctor visits. Solidarity Center, Bangladesh Dhaka Workers’ rights education and community engagement. Worker association leadership training programs. (Continued on next page) 94 Fostering Women’s Economic Empowerment through Special Economic Zones Resources: Key Implementers and Experts in Bangladesh (Continued) Organization Name Location Focus Area Swiss Contact, Bangladesh Dhaka Vocational training and social auditing UBINIG Dhaka Policy research for development alternatives Women Entrepreneurs’ Association (WEA) Dhaka Membership organization for female entrepreneurs and prospective entrepre- neurs. Runs business, management, skills training for members. Women in Small Enterprise (WISE) Dhaka Connects female entrepreneurs, mostly in small business, with microfinance loans from MIDAS bank Stakeholder Type Number Objective of Engagement Civil Society 10 Determine challenges facing Bangladeshi women at work and at home, and learn about programs and policies seeking to address those challenges. Female Entrepreneurs 3 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/owning a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Worker Organizations 2 Identify labor rights issues unique to women, challenges to their resolution, and recommendations for the private sector. Government 4 Identify government’s priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Private Sector 26 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or poten- tial future programs or policies. China Case Study: Fostering Women’s Economic Empowerment through Special Economic Zones T his study examines the role of special eco- and programs at the government, zone, and enter- nomic zones (SEZs) in promoting women’s prise levels. As such, the study presents numerous economic empowerment and creating sus- examples of good practices. In addition to a small tainable jobs as a way to boost zones’ competitive- number of relevant replicable practices in zones, the ness. The case study supports a global research study also finds useful examples outside of zones initiative to uncover good practices for women’s that could be replicated within zones. economic advancement within the zones and de- fine a practical approach to design, promote, and The People’s Republic of China (hereafter referred implement gender-inclusive SEZs across the to as China) was selected for inclusion in the study globe. Findings are based on field research in eight because of its dominance of the global export mar- countries, as well as a global literature review. ket and advanced zone program. China’s total ex- ports reached US$1.2 trillion in 2009,1 surpassing To support women’s improved economic partici- Germany for world’s highest exports. Of the $1.2 pation in zones, this study seeks to identify good- trillion, $187.4 billion in exports are generated in practice programs and policies that can be imple- the fifty-six national SEZs in China, which em- mented by SEZs throughout the world to promote ploy 6.46 million people.2 women’s advancement at three levels: MM Working conditions for female workers Methodology MM Opportunities for upward mobility MM Investment opportunities for female entrepre- This case study is based on findings from a combina- neurs tion of stakeholder organization interviews, quali- tative factory-based research, and desk research. In doing so, the study identifies key legal and regu- The primary research included approximately 50 latory issues, social and cultural constraints, lack of in-person or phone interviews with stakeholders support services, and investment-climate issues af- fecting women as the main obstacles to decent work- ing conditions, upward mobility, and investment op- 1 National Bureau of Statistics of China: http://www.stats. portunities within SEZs. The study argues that these gov.cn/tjfx/ztfx/2005sbnjjsp/t20100302_402623949. obstacles can also be used positively as “enablers� for htm 2 China Association of Development Zones (CADZ), women’s economic participation in zones if they are http://www.cadz.org.cn/Content.jsp?ItemID=1570& addressed directly and effectively through policies ContentID=78235 96 Fostering Women’s Economic Empowerment through Special Economic Zones Stakeholder Type Number Objective of Engagement Civil Society 8 Determine challenges facing Chinese women at work and at home, and learn about programs and policies seeking to address those challenges. Female Entrepreneurs 3 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/owning a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Workers’ Organizations* 2 Identify labor rights issues unique to women, challenges to their resolution, and recom- mendations for the private sector. Government 3 Identify government’s priorities, limitations, and potential role in solution. Discuss regula- tory systems in place. Private Sector 6 Identify drivers and challenges. Uncover perspective on female employees. Discuss exist- ing or potential future programs or policies. * China’s union is a government body. from civil society, workers’ organizations, govern- of 1.773 trillion yuan, tax revenue of 314.5 billion ment, and the private sector (including factory yuan, total exports of US$187.4 billion, and total managers), between March and September 2010. imports of US$164.4 billion.3 This study is informed by 6 factory visits from As of 2006, over 40 million people were employed March to July 2010 in Guangdong and Jiang prov- in SEZs in China, representing two-thirds of all inces. It is also based on eight salon discussions employees in zones worldwide.4 and interviews of labor relations practitioners from March to September 2010. Primary research was supplemented by documentation received during Key Characteristics of the Chinese the fieldwork, and desk research. Zone Program include the Following: MM As of November 2010, there are 107 state-level ETDZs.5 Zone Program in China MM The zone authorities, or regulators, for the Chi- nese zone program are the Department of For- In 1984, the Central Committee of the Commu- eign Investment Administration, the Ministry nist Party of China and the State Council set up of Commerce, and the Administration Com- economic and technological development zones mittee of Development Zones. Other minis- in China. The SEZs were a central component of tries monitor company operations within zones China’s reform and “opening up� program in the just as they do outside of zones—for example, 1980s, led by Deng Xiaoping, then president of the the Ministry of Human Resources and Social Communist Party. Security monitors labor compliance and the Ministry of Environmental Protection moni- There are currently two zone programs in China: tors environmental compliance. national SEZs and national economic and techno- logical development zones (ETDZs). 3 http://www.cadz.org.cn/Content.jsp?ItemID=1570& In 2009, the overall economic development of ContentID=78205 4 Wick, Ingeborg, “Women Working in the Shadows: The the 54 ETDZs and 14 BECZs (border economic informal economy and export processing zones�, SUD- cooperation zones) maintained a steady growth WIND Institut fur Okonomie und Okumene�, 2010. momentum. In 2009, the 54 state-level ETDZs 5 http://www.cadz.org.cn/en/content.jsp?ID=1567&Ite achieved a regional gross domestic product (GDP) mID=1723&keywords= China Case Study 97 MM The labor law within zones is not entirely the preneurial investment opportunities across eight same as national labor law. See Table 3 for not- countries. The study found several common factors ed variations between the two. across countries that can act as obstacles to or en- MM Current benefits of the zone program vary ablers of women’s economic empowerment. Poli- from industry to industry, from economic zone cies, initiatives, and business practices can become to economic zone, and from city to city, includ- enablers to spur women’s economic participation. ing entry-level support for manufacturing in- dustries in land provision and continued sup- Women’s entry into the workforce, their welfare, and port in R&D, and special funds support and retention or dropout rates are affected by a variety tax benefits for service industries such as finan- of factors. For the China Case Study, key themes cial services.6 are explored around the following categories. MM Though Chinese zones have successfully at- tracted numerous industries, manufacturing re- MM Female Workers’ Welfare and Advancement mains the most prevalent industry in SEZs. In XX Legal Policies and Enforcement: Interna- Tianjin SEZ, for example,7 97 percent of com- tional and local laws pertaining to female panies are in manufacturing. Other industries employees and their enforcement. Women present in the zones include communications, often lack access to employment opportu- information and communication technologies, nities in the formal sector, and require ad- entertainment, sports facilities, automobile ditional protections as employees, such as manufacturing, emerging energy, pharmaceuti- maternity leave and child care. cals, software, and new chemical materials.8 XX Social and Cultural Challenges: Cultural norms dictate women’s home responsi- Four zones were visited in China for the study: bilities and can impact women’s economic Guangzhou Luogang Economic Zone, Shenzhen participation, and social factors including Economic Zone, Zhongshan Huoju Economic education, health, child care, and living con- Zone, and Wuhan Economic and Technological ditions can impact women’s ability to work Zone.9 The study also included interviews with and excel at work. representatives from Haidian Science and Tech- XX Professional Advancement Opportuni- nology Development Zone in Beijing. Additional ties: Advancement opportunities for wom- information on the four zones visited is summa- en are tied to education and skills develop- rized in Table 1. ment, and are also influenced by social and cultural factors. MM Women’s Entrepreneurship: Obstacles to Women’s Economic XX Policies and Access: Female entrepreneurs Participation in China often lack access to capital and land. A country’s legal framework and cultural norms play a significant role in determining women’s economic 6 Invest in China: http://www.fdi.gov.cn/pub/FDI_EN/ opportunities and fair employment. In addition, key StateDevelopmentZone/Profile/History/t20070119_ issues such as education, health, and living condi- 72629.htm tions impact women’s ability to excel and advance in 7 Tianjin SEZ statistics: http://202.99.99.30/ConIn- the workplace. Finally, entrepreneurship is an area of foParticular.jsp?id=2546 8 Industrial Planning and Development Strategy Consul- opportunity where women face unique challenges. tation Report on Chinese Economic Zone 2010–2013. http://www.BaogaoChina.com/2009-11/2010_2013ka This study sought to identify key barriers and en- ifaquchanyeguihuayufaBaoGao.html ablers within zones that impact women’s fair em- 9 Wuhan Economic and Technological Zone is a state- ployment, advancement opportunities, and entre- level economic zone. 98 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 1  ■  Zone Profiles Guangzhou Luogang Zhongshan Huoju Wuhan Economic Beijing YiZhuang Measure Economic Zone Economic Zone Zone Economic Zone Industries Operat- • Electronic • Automobile • Automobile manufactur- • Manufacturing (elec- ing in Zone • Automobile • Office equipment ing is the largest industry tronics and others) • Smelting • Nickel-metal hydride • Other: Electronics, • Service industries • Bio-industry battery printing, light industries, (finance and others) • Chemistry • Biological reagent apparel, food and bever- • Food and beverage • Other high-tech industries ages, etc. Factories Operating Around 3,700, with an an- Over 1,100 factories, with an Over 260 factories, with an- Over 3,000 factories in Zone nual gross industrial output annual gross industrial output nual sales of over 5 million value of 343 billion yuan value of 90 billion yuan yuan Workers Employed 155,000+ 188,000+ 100,000+ 200,000+ in Zone Female Workers No statistics available No statistics available No statistics available No statistics available Employed in Zone Amenities Provided • Hospitals • Hospitals • Hospitals • Hospitals by Zone • Schools • Schools • Schools • Schools • Banks/ATMs • Banks/ATMs • Banks/ATMs • Banks/ATMs • Recreational facilities • Recreational facilities • Public security bureau • Public security bureau • Public security bureau • Public security bureau • Customs offices, human • Customs offices, • Customs offices, human • Customs offices, human resources and social human resources resources and social resources and social security bureau, etc. and social security security bureau, etc. security bureau, etc. bureau, etc. Dormitories • Yes, some factories • Yes, some factories • Yes, some factories • Yes, some factories XX Support Networks and Training: Female China, and government and company restrictions entrepreneurs need training on business on worker organizing are common.12 skills, management, and market identifi- cation, and would benefit from building Ratification of international laws and domestic networks among other entrepreneurs and laws affecting women in the workplace are sum- within key sectors. marized in Tables 2 and 3. This study has also identified replicable good prac- The Chinese Labor Law is the key legal frame- tices in China, which are outlined in the section work that affects women in the workplace—both “Good-Practice Enablers of Women’s Economic inside and outside zones. In addition, the Law of Empowerment in China� that follows on page 11. the People’s Republic of China on the Protection Female Workers’ Welfare and 10 The Labor Law of People’s Republic of China, No.28, Advancement Promulgated by the National People’s Congress on July 25th, 1994, Effective on January 1st 1995. 11 The Labor Contract Law of the People’s Republic of Legal Policies and Enforcement China, No. 65, Promulgated by the National People’s The primary laws affecting workers in China are the Congress on June 29th, 2007, Effective on January 1st Chinese Labor Law10 and Chinese Labor Contract 2008. Law.11 The All-China Federation of Trade Unions 12 Freedom House, “China Country Report�, (http:// (ACFTU) is the only legal workers’ organization in www.freedomhouse.org) China Case Study 99 TABLE 2  ■  Ratification of ILO Core Conventions and other Conventions* ILO Core Conventions Ratified or Not 29 Forced Labor Not Ratified 87 Freedom of Association and Protection of the Right to Organize Not Ratified 98 Right to Organize and Collective Bargaining Not Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Not Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) With Reservations International Covenant on Civil and Political Rights Ratified International Covenant on Economic, Social, and Cultural Rights Ratified *  ILO accessed at http://www.ilo.org/ilolex/english/docs/declworld.htm. TABLE 3  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities Law National1 Differences in Zones2 Prenatal Care • Female workers should be provided 15 days prenatal leave • The enterprise should set up a rest room for pregnant • Workers over 7 months pregnant are prohibited from women if there are more than 5 pregnant female work- working overtime or night shifts. Pregnant female workers ers. cannot be assigned to manual labor of Class-III intensity. • Half-day leave should be approved for pregnancy • Termination of contract or reduction in basic salary of a examinations for female workers after 6 months from pregnant worker is prohibited. the date of pregnancy. Maternity Leave • Female workers should be provided 90 days maternity leave • 30 days leave is added for dystocia with cesarean • Termination of contract or reduction in basic salary of a operation. female worker on maternity leave is prohibited. • Women who have had an abortion should be granted • 15 days additional leave is offered for dystocia. For births of a period of maternity leave according to the medical more than one child at a time, 15 days leave are added for certificate. For an abortion under 4 months pregnancy, each additional baby. 15 to 30 days leave should be approved depending on • When the female worker has an abortion, the employer physical condition; 42 days for pregnancies from 4 to should approve a period of maternity leave according to the 7 months; 75 days for those over 7 months, including certificate of the medical department. stillbirths. Workplace Companies are expected to assist their workers with child care, No explicit regulations exist. Child Care but no explicit regulations exist. Nursing/Breast- • Termination of contract or reduction in basic salary of a Female workers are eligible to request breastfeeding leave feeding female worker in nursing period is prohibited. to care for an infant under 1 year of age after expiration of • Enterprises are required to provide 2 breast-feeding breaks maternity leave. Enterprise is required to pay 75% salary of 30 minutes each during each shift. For multiple births, 30 during approved breastfeeding leave. minutes more should be allowed for each additional infant. This feeding time and any related time spent traveling to different areas within the workplace should be treated as work time. Pregnancy No written policy Testing (Continued om next page) 100 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 3  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities (Continued) Law National1 Differences in Zones2 Sexual Harass- Sexual harassment is forbidden. Female workers have the right • Sexual harassment of women is forbidden, includ- ment in the to complain about sexual harassment to the enterprise and ing speech, text, physical behavior, photographs, and Workplace / government authority. electronic information. General • The enterprise should take measures to prevent and prohibit sexual harassment of female workers. • Employees have the right to require the employer to in- clude prevention and prohibition of sexual harassment in their work contract. The female worker can report sexual harassment to the enterprise or the local labor union. Separate Wash- No written policy rooms Working Hours Labor intensity is regulated: Restriction • It is forbidden to assign women to jobs in mines and coal (e.g., women shafts, labor of Class-IV intensity, and other jobs forbidden cannot work by the state. night shift) • It is forbidden to assign women to jobs at high altitude, low temperature, or in cold water during the menstrual period or in manual labor of Class-III intensity.   “The Law of the People’s Republic of China on the Protection of the Rights and Interests of Women� “Regulations on Labor Protection of Female Workers� 1  “Implementation measures on labor protection of female workers in Guangzhou� “The regulation of Guangzhou on the protection of the rights and interests of women� 2 of Rights and Interests of Women is another na- to help those workers, such as gynecological clin- tional law that protects women’s lawful rights and ics, restrooms for pregnant women, breastfeeding interests. Economic zones are required to abide by rooms, nurseries, and kindergartens, either inde- the Chinese law, but each economic zone can de- pendently or cooperatively. However, among fac- velop its own regulations. Based on desk research, tories visited for this study, most have basic clinics, no zone law variations were found to target wom- but do not provide women’s-health-related servic- en separately. es and facilities or child care. According to article 13 of the Chinese Labor Law, Specialized government agencies and institutions women enjoy equal rights to men in employment. have been established to protect women’s rights, Sex shall not be used as a pretext for excluding such as the All-China Women’s Federation (AWF), women from employment unless the types of work whose mission is to safeguard the legitimate rights or posts for which workers are being recruited are and interests of women and children through, inter not suitable for women according to state regula- alia, putting forward suggestions and recommen- tions (see above). Nor shall the standards of re- dations to the relevant government departments at cruitment be raised when it comes to women. In all levels, pushing and assisting relevant authori- reality, however, gender is often stipulated in clas- ties to investigate and deal with violations of the sified ads, and it is well understood that certain rights and interests of women and children, and jobs (e.g., assembly line worker, office assistant) are providing assistance to the victims.14 The National more appropriate for women.13 Working Committee on Women and Children Though laws do not exist on all relevant issues, 13 Chang, Leslie, Factory Girls: From Village to City in a there is an expectation that enterprises with a ma- Changing China, Spiegel & Grau, 2008. jority of female workers should establish services 14 http://www.women.org.cn/ China Case Study 101 under the State Council (NWCCW)15 has imple- that 150 million people in China are still living mented the basic state policies of equality between below the poverty line.25 men and women, and women and children’s sur- vival, protection, and development. According to the All-China Women’s Federation, the rate of women in high positions has been in- creasing. Currently 8 women are serving as state Social and Cultural Challenges leaders, 230 women hold positions at the provincial China is located in Eastern Asia, bordering the and ministerial levels, and 670 women are serving East China Sea, Korea Bay, Yellow Sea, and South as mayors and vice mayors in over 600 cities. How- China Sea, between North Korea and Vietnam. ever, most women remain in deputy positions, and China is the fourth-largest country in terms of most positions filled by women are in marginalized land mass (9,596,961 sq. km.),16 after Russia, rather than mainstream departments.26 Canada, and the United States; the largest in terms of population, with 1.3 trillion people;17 and the Key social and economic indicators are summa- second-largest economy, behind the United States, rized in Table 4, which is followed by contextual with an economic output of US$1.33 trillion. There are seven major Chinese dialects. Mandarin (or Putonghua), the predominant dialect, is spo- 15 http://www.nwccw.gov.cn/html/news.html 16 CIA World Factbook, 2010. China. Accessed at https:// ken by over 70 percent of the population;18 others www.cia.gov/library/publications/the-world-factbook/ speak Cantonese, Wu, Yue, Min, Xiang, Hakka, geos/ch.html. and Gan.19 Finally, there are many subdialects and 17 CIA World Factbook, 2010. China. Accessed at https:// non-Chinese languages spoken widely by ethnic www.cia.gov/library/publications/the-world-factbook/ minorities, including Mongolian, Tibetan, Uyghur geos/ch.html 18 U.S. Department of State, 2009. Background Note: and other Turkic languages (in Xinjiang), and Ko- China. Accessed at http://www.state.gov/r/pa/ei/ rean (in the northeast).20 bgn/18902.htm. 19 Wikipedia. Accessed at http://en.wikipedia.org/wiki/ China is classified by the World Bank as a lower- Spoken_Chinese middle-income economy21 with a GDP per capita 20 U.S. Department of State, 2009. Background Note: of US$2,604.20.22 China ranks 24th out of 182 China. Accessed at http://www.state.gov/r/pa/ei/ countries in UNDP’s Human Development Re- bgn/18902.htm. 21 World Bank classifications accessed at http://data. port 2009. China’s total exports are US$1.5 tril- worldbank.org/about/country-classifications/country- lion, comprising electrical and other machinery, and-lending-groups including data processing equipment, apparel, 22 UN Statistics Division’s World Statistics Pocket- textiles, iron and steel, optical and medical equip- book. Accessed at http://data.un.org/CountryProfile. ment. China’s major trading partners include (by aspx?crName=China. 23 U.S. Department of State, 2009. Background Note: percentage of exports): the United States (19.1 China. Based on 2007 data. Accessed at http://www. percent), Hong Kong (15.1 percent), Japan (8.4 state.gov/r/pa/ei/bgn/18902.htm. percent), South Korea (4.6 percent), and Germany 24 U.S. Department of State, 2009. Background Note: (4 percent).23 Foreign investment in the export in- China. Based on 2007 data. Accessed at http://www. dustry is a major driver of China’s rapid economic state.gov/r/pa/ei/bgn/18902.htm. 25 Speech of Premier Wen Jiabao at the UN Conference growth; foreign-owned enterprises produce about half of China’s exports.24 on September 23, 2010. http://news.xinhuanet.com/ english2010/china/2010-09/24/c_13526690.htm 26 All China Women’s Federation, “Women and City Despite rapid economic growth and relatively Development Forum & Fifteenth Anniversary Forum high GDP, China still has high poverty levels: of Fourth World Women Conference�, convened in Chinese Premier Wen Jiabao recently estimated Shanghai, September 17, 2010. 102 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 4  ■  Socioeconomic Indicators: China Total Adult Female Ratio: Female to Indicator Population Population Male % of population living on less than US$1.25, US$2 per day 15.9%, 36.3% Education (combined primary, secondary, tertiary) 68.7% 68.5% Literacy (for ages 15+) 93.3% 90%4 0.91 Labor Force Participation 69.3% 0.72 Unemployment 4.2% 11.82% Earned Income (PPP US$ annually) 4,323 0.68 Major Religions Primary Atheism is official religion. Buddhism is also widely practiced, with an esti- mated 100 million adherents. Other Traditional Taoism also is practiced. Official figures indicate there are also 20 million Muslims, 15 million Protestants, and 5 million Catholics, but unofficial estimates are higher. Gender Measures Gender-related development index (GDI) 0.770, Rank 75/157 countries Gender empowerment measure (GEM) 0.533, Rank 72/177 countries Women-held seats in People’s Congress, women in govern- 21%, 9% ment at ministerial level (% of total) Female legislators, senior officials, managers (% of total) 17% Female professional and technical workers (% of total) 52% Women with unmet family planning needs 2.3% Births attended by skilled health professional 97% Maternal mortality rate (per 100,000 live births) 45 Source: UNDP Human Development Report, UN Statistics Division, World Statistics Pocketbook, Chinese Academic of Social Science, U.S. Department of State, DHS. information, including the perceived challenges form and Development (2010–2020),� the gov- and barriers to greater gender empowerment. ernment intends to modernize education, shape a learning society, and turn China into a country Education rich in human resources. To achieve this plan, the Women, especially those from rural areas, tend to Chinese government has pledged to increase its have lower education levels than men.27 Interviews educational investment to reach 4 percent of Chi- with workers and human resources management na’s GDP by 2012.28 As a component of this plan, found that women working in zones typically have the government has also commited to promoting 9 years of education on average, although women girls’ right to compulsory education and increasing born in the 1980s and 1990s typically stayed in school longer and on average have closer to 12 27 U.S. Department of State, 2009. Background Note: years of education. China. Based on 2007 data. Accessed at http://www. state.gov/r/pa/ei/bgn/18902.htm. According to the “Outline of China’s National 28 Xinhua News Agency. Accessed at http://www.gov.cn/ Plan for Medium and Long-Term Education Re- jrzg/2010-07/29/content_1667143.htm China Case Study 103 the net enrollment rate for girls to 99 percent for tion Research,� surveyed 3,000 workers in Beijing, primary school, and 75 percent for junior educa- Changsha, and Kunming, and conducted individual tion, by the end of 2010.29 worker interviews. The study found that workplace gender discrimination exists in recruitment, remu- Employment nerations, promotion, rights protection, and retire- China’s government and society have promoted ment. Surveys found that 61.9 percent of women gender equity in the sense that women and men are believed that workplace gender discrimination was officially equal under the law, and few societal re- due to lack of awareness of workplace gender equal- strictions exist for women seeking work opportuni- ity, 58.2 percent felt it was a result of the greater ties. This has contributed to significant participation supply of female workers, 60.3 percent felt it was of women in the workforce. About 60 percent of related to maternity leave costs, and 61.3 percent China’s approximately 150 million migrant workers said it was due to women’s family burden. Only are women, most between the ages of 21 and 35.30 39.1 percent said gender discrimination was due to women’s lesser capability in comparison to men.32 Manufacturing jobs for female migrant workers in China have not come without challenges. Fe- In an ongoing program to elevate gender aware- male migrant workers in China face several ma- ness among worker advocacy organizations, the jor employment challenges, many of them shared Asia Monitor Resource Center found that women with men.31 are less likely to seek legal assistance for workplace grievances or abuse—instead they are more likely MM Lack of contracts resulting in limited negotia- to tolerate injustices and move to a new job as a tion power; last resort.33 Interviews for this and other studies34 MM Minimum wage payment, and other wage pay- confirm this finding as well. ment issues; MM Health and safety hazards, particularly chemical Within this context, violations against women’s and dust exposure, including during pregnancy; rights are common. A study by the All-China MM Excessive overtime in the manufacturing and Women’s Federation found that 86.6 percent of service industries; enterprises did not provide maternity insurance for MM Workplace stress and/or supervisor abuse; MM Lack of access to labor unions or other worker representation; 29 http://www.nn365.org.cn/NewsCenter/news-2006- 09-21-8111588072328287.htm MM Unhygienic, overcrowded, or unsafe dormito- 30 National Bureau of Statistics of China: Present Work- ries; and ers Monitor and Survey Report 2009 (2009 data) MM Workplace sexual harassment. 31 Zhang Ye, Asia Foundation, “Hope for China’s Mi- grant Women Workers�, The China Business Review, These issues tend to be shared by enterprises within 2002; ACFTU/All China Women’s Federation web- SEZs and outside, with significant differences be- site, http://www.womenofchina.cn/; BSR Interviews, various, March–August 2010. tween different industries. In general, both inside 32 Zhang Shuai, “China Workplace Gender Discrimina- and outside of SEZs, manufacturing and service tion Research�, Women Laws Research and Service industries tend to have the highest occurrences of Center, Peking University, 2010. the above challenges, and problems are more com- 33 Asia Monitor Resource Centre,“Case of gender awareness mon for lower-income wage earners. building among rural migrant women�, 2010. Accessed http://www.amrc.org.hk/cms/files/Case%20of%20 gender%20awareness%20building%20on%20rural%20 Research has identified that workplace gender migrant%20women%20workers%20in%20PearlRiv- discrimination is widespread from recruitment er%20Delta%20in%20China.pdf (Nov 2010). to retirement in China. A 2010 Peking Univer- 34 Chang, Leslie, Factory Girls: From Village to City in a sity study, “China Workplace Gender Discrimina- Changing China, Spiegel & Grau, 2008. 104 Fostering Women’s Economic Empowerment through Special Economic Zones female workers.35 Because of the historical excess of port feeling work pressures that exacerbate health cheap, available labor in China, it became common problems.38 HERproject, a health education initia- for enterprise management to refuse payment of tive targeting female factory workers in Asia, has maternity benefits or to fire pregnant workers.36 As identified the following health issues affecting fe- of 2010, labor shortages were becoming increasingly male factory workers in China: common in Chinese industrial areas, and this may contribute to improved rights protection over time. MM Breast cancer and cervical cancer: Of the more than 500,000 new cervical cancer patients each Finally, a critical employment challenge shared by year worldwide, approximately one-third are both men and women is the Hu Kou household in China. The incidence of cervical and breast registration system, which profoundly affects mi- cancer is highest among Chinese women in the grant workers’ employment and welfare. Migrants’ 15–44 age group.39 temporary household registration status limits their MM Exposure to chemical hazards: Women are access to education, housing, and health care, and especially at risk of chemical exposure given can affect their legal protection. Impacts on women their predominance in manufacturing indus- are significant because they carry the pressure to tries. They often do not receive sufficient train- return home and care for elderly parents and young ing in handling hazardous materials and com- children—whom the registration system will not monly choose not to wear personal protective recognize or protect. This also contributes to a per- equipment. ception among management of women as short- MM Feminine hygiene and reproductive compli- term employees. If women choose to stay in the cit- cations of STDs such as pelvic inflammatory ies longer, financial and legal restrictions associated disease (PID): PID and cervical inflamma- with the Hu Kou system often serve to trap them tory disease often occur in older women who and their families in the cycle of poverty.37 are married or sexually active with men. A lack of knowledge about personal hygiene among Health migrant workers contributes to the spread of In China, health services are delivered by both these diseases. public and private health organizations (including MM HIV/AIDS and Hepatitis B: Women workers clinics, community and township health centers, possess a basic understanding of these diseases hospitals, the Center for Disease Control and Pre- and awareness of preventive methods, but they vention, etc.). The public hospitals play the major lack a complete understanding of their own risk. role, providing more than 80 percent of inpatient Factory management often ignores sexually services, while the private sector supplies a vast amount of outpatient care. According to the Na- tional Health System Reform Plan of 2009, the 35 All-China Women’s Federation, 2010. health system should cover all rural and urban ar- 36 Zhang Ye, Asia Foundation, “Hope for China’s Migrant eas by 2020. The government is taking action to Women Workers�, The China Business Review, 2002. 37 Pun Ngai, “Women Workers and precarious employ- expand insurance coverage and reinforce security, ment in Shenzhen Special Economic Zone, China�, and to strengthen development of the health sys- Gender and Development, 12: 2, July 2004; Zai Liang, tem through capacity building in urban and ru- “Foreign Investment, Economic Growth, and Tempo- ral communities. Although there is no supportive rary Migration: The Case of Shenzhen Special Econom- policy or action plan specifically designated for ic Zone, China�, Development and Society, 28: 1, 1999. 38 2009 Survey Report on the Survival Situation of Work- women, the Chinese government promotes equal ing Women in China, jointly organized by All-China access to essential public health services. Women’s Federation, Sun Media Group and Sina.com, with support from IBM and Universum. Among female factory workers poor health is com- 39 WHO, Human Papillomavirus and Related Cancers, mon, and about 70 percent of working women re- China. June 2010. China Case Study 105 transmitted infections as a health issue because commute. Dormitories are also relatively safe; workers live in gender-segregated factory dor- most have security guards both day and night. mitories and management assumes that unmar- The most important factor is cost; most factories ried workers are not engaging in sexual activity. charge very small amounts for rent, electricity, and By contrast, research indicates that premarital water. Events in 2010 at the Foxconn factory com- sex is common among female factory workers. plex’s dormitory facilities, including an estimated MM Malnutrition: Most Chinese factories’ can- 14 worker suicides between January and Novem- teens provide 3–4 daily meals to workers, but ber 2010,42 revealed high levels of stress and some management rarely invests in insuring that mental health challenges associated with dormi- the food has nutritional value. Women work- tory life. ers spend frugally on food to maximize their wage earnings. Many have limited knowledge Factory management often prefers for workers to of what constitutes a balanced diet. In addition live onsite, as this makes the management of work- to longer-term impacts, poor nutrition results ers easier and means workers are available if over- in workplace health problems such as dizziness time is required. For this reason, living in dormito- and tiredness.40 ries is compulsory in some factories. Most factories in the zones provide only very basic A small number of female workers prefer to rent an health care to women workers, and not all women apartment near their factory; however, they usually workers have access to regular examinations, includ- don’t do this alone. Instead, they rent a house with ing gynecological and cancer screenings. Consider- their husband or boyfriend or with friends from ing the work environment and the poor sanitation the same hometown. Couples generally have to facilities in dormitories, women workers are a group rent privately because most factories don’t provide at high risk for general and reproductive diseases. rooms for couples. Housing Religion and Culture As the majority of Chinese workers are rural mi- China’s largest ethnic group is Han Chinese, grants, they are often thousands of miles from which represents 91.5 percent of the total popula- home. Migrants arrive in industrial areas unfa- tion. The remaining 8.5 percent are Zhuang (16 miliar with the locale and with limited family or million), Manchu (10 million), Hui (9 million), friends to rely on. Most factories in zones provide Miao (8 million), Uyghur (7 million), Yi (7 mil- housing and food, and workers prefer and seek out lion), Mongol (5 million), Tibetan (5 million), jobs in factories with these benefits. According to Buyi (3 million), Korean (2 million), and other research conducted in 2001–002 by the Institute ethnic minorities.43 Officially, the national religion of Contemporary Observation (ICO), 82.9 per- is atheist, but an estimated 100 million Chinese cent of workers (male and female) live in factory practice Buddhism. Other less common religions dormitories, 1.3 percent live in relatives’ home, and include Taoism, Islam, and Christianity. 15.8 percent rent rooms privately with other work- ers. Factory dormitories provide rooms for 1–16 occupants each, with an average of 12–13 people 40 HERproject, “Female Factory Workers’ Health Needs per room. The average room size is between 20 and Assessment: China�, BSR, 2010. 41 ICO: Factory Dormitories in South China, 2002. 26 square meters.41 42 Reuters, “Another Foxconn worker dies at south China plant�, 11/5/10, http://ca.reuters.com/article/technolo- Living in dormitories is the first choice for most gyNews/idCATRE6A41T120101105 workers since they are unfamiliar with the local 43 U.S. Department of State, 2009. Background Note: Chi- environment, while the dormitories are close to na. Based on 2007 data. Accessed at http://www.state. the workplace and convenient for the workers’ gov/r/pa/ei/bgn/18902.htm. 106 Fostering Women’s Economic Empowerment through Special Economic Zones Traditional beliefs especially common in rural ar- enter the workforce and develop independent fi- eas tend to value men and boys over women and nances. As this group of workers has matured and girls. These beliefs can be attributed to women’s gained experience over the past two decades, up- historical lack of financial independence, as well ward mobility has become increasingly common. as the traditional practice of women moving into To take advantage of these opportunities, female their husband’s parents’ home. This practice has migrant workers in China often move between created the assumption that boys are more reliable factories to seek promotion opportunities, some- than girls as the pillar to uphold the family and times lying about their experience in order to be provide for their parents later in life.44 China’s lack hired.48 of a reliable social security system further contrib- utes to this perception. However, men continue to occupy the majority of management positions, both at the middle and se- China’s 2002 Population and Family Planning nior management levels. A 2009 study found that Law also contributes to the imbalance between men take 57.9 percent of positions at the manag- girl and boy children, by allowing preferential er level, 15 percent more than women. The same treatment that reinforces the value system. For ex- study revealed that men occupy 83.4 percent of ample, local governments can permit a couple to positions at the general manager and more senior have a second child if their first child is female. levels, with women filling only 16.6 percent.49 Although government policy opposes forced abor- tion, the practice is still common, particularly with Several challenges continue to prevent women’s female fetuses. As a result of preferences for boy professional development and advancement in children, in 2009 the sex ratio of Chinese babies Chinese SEZs: was 119 boys to 100 girls.45 MM Limited formal training to enable low-wage Working women are still expected to maintain women workers to improve management and their traditional family responsibilities. According communication skills; to this study’s interviews with workers and HR MM Perceptions of women as being suitable only managers, when women workers have a child, they for certain jobs and discriminatory hiring; and typically move back to the countryside to raise MM Registration and retirement legislation. their baby. Mothers often return to the factories after their child or children turn three, at which point they may be left with grandmothers to raise 44 http://news.sina.com.cn/c/2005-05-17/17495913369s. them. However, this study found that one positive shtml outcome of job opportunities in zones in China 45 Chinese News Online. Accessed at: http://www.chi- has been delayed marriage for young women and nanews.com.cn/gn/news/2010/06-03/2321111.shtml 46 BSR Interviews, various, March–August 2010; Zai more bargaining and decision-making power in the selection of their spouses.46 Liang, “Foreign Investment, Economic Growth, and Temporary Migration: The Case of Shenzhen Special Economic Zone, China�, Development and Society, 28: 1, Domestic violence and sexual harassment are not 1999; Chang, Leslie, Factory Girls: From Village to City in as common as in other countries but do occur— a Changing China, Spiegel & Grau, 2008. Freedom House estimates that approximately 30 47 Freedom House, “China Country Report�, (http:// percent of Chinese families are affected.47 www.freedomhouse.org) 48 Chang, Leslie, Factory Girls: From Village to City in a Changing China, Spiegel & Grau, 2008. 49 2009 Survey Report on the Survival Situation of Work- Professional Advancement Opportunities ing Women in China, jointly organized by All-China SEZs in China have provided and continue to Women’s Federation, Sun Media Group and Sina.com, provide significant opportunities for women to with support from IBM and Universum. China Case Study 107 Perception and prejudice play a large role in wom- legislation, men normally retire at the age of 60, en’s lack of advancement in China. Overall, women but women retire at 55. Evidence and statistics find more job opportunities in preliminary un- show that some women workers are forced to re- skilled or lower-skilled positions, because women tire much earlier—for example, at 50 or in their are considered to be more obedient and disciplined. forties—for contract, health and other reasons. Af- Gender is often stipulated in classified ads, and it ter retirement, most women’s career comes to an is well understood by workers that certain jobs are end and they stay at home to do housework and more appropriate for women.50 take care of children. GAOBU HANDBAG FACTORY SEEKS Within this context, there exists an opportunity TO EMPLOY to support female factory workers’ development more formally, in order to help factories and zones SALESPERSON: FEMALE ONLY, retain female workers as they pursue professional GRADE FOUR ENGLISH growth. RECEPTIONIST: FEMALE ONLY, CAN SPEAK CANTONESE Women’s Entrepreneurship Opportunities SECURITY GUARDS: MALE, UNDER Women’s economic empowerment through en- 30, 1.7 METERS OR ABOVE, EX- trepreneurship opportunities in zones depends on MILITARY, KNOWS FIREFIGHTING, (1) policies and access and (2) support networks CAN PLAY BASKETBALL A PLUS51 and training. In China, this study found evidence of supportive policies and programs and deter- As the example above illustrates, women are be- mined that access was not significantly limited by lieved more suitable for work on the assembly line, gender. We did not find significant information on in the service sector, and as office assistants, while support networks or training programs for female men are expected to work in security, high-tech- entrepreneurs. nology, and management positions. According to a 2009 survey on the situation of Policies and Access working women in China, 55.2 percent of women Regarding female entrepreneurs’ access to zones, interviewed said they had encountered gender dis- the study identified that small businesses are per- crimination in the process of promotion or wage in- mitted in the SEZs. According to an interview crease. 66.1 percent of women interviewed said they with a woman entrepreneur who set up her own felt it was easier for men to obtain a wage increase business in Haidian Science and Technology De- and 38.1 percent of respondents said that men re- velopment Zone in Beijing, women and men can ceived higher wages than women at the same job almost equally enjoy preferential policies for set- level. 65.7 percent of women surveyed also felt that ting up businesses. She said that she did not en- maternity leave had a negative impact on their work counter any unique challenges for women as com- to some extent.52 Finally, the rural-urban status di- pared to men. vide further complicates migrant women workers’ opportunities for upward career advancement. 50 Chang, Leslie, Factory Girls: From Village to City in a Registration legislation also contributes to restric- Changing China, Spiegel & Grau, 2008. 51 Chang, Leslie, Factory Girls: From Village to City in a tions on women’s professional advancement and Changing China, Spiegel & Grau, 2008. should be revised to allow women to stay in the 52 2009 Survey Report on the Survival Situation of Work- workforce as long as men if they choose to do so. ing Women in China, jointly organized by All-China Retirement legislation is another barrier prevent- Women’s Federation, Sun Media Group and Sina.com, ing women’s advancement. According to Chinese with support from IBM and Universum. 108 Fostering Women’s Economic Empowerment through Special Economic Zones The same interviewee explained that the zone pro- Enablers for Female Workers’ vided “one-stop� service to businesses and funding Welfare and Advancement support along the following lines: Legislation on Gender Equality MM The small business registration process is easier MM Enabler Type(s): Legal inside the zone than outside; MM Who: Shenzhen Special Economic Zone Gov- MM Companies with highly qualified services and ernment technologies in the zone can access financial MM Where: Shenzhen Special Economic Zone support from the Science and Technology In- MM Time frame: 2007–present; listed on the gov- novation Fund through administrative bodies ernment legislation track in 2011 at three different levels: (1) Haidian Science and Technology Development Zone, (2) the Shenzhen Special Economic Zone in Guangdong Beijing Municipal Government, and (3) the Province has put the “Gender Equality Promotion Ministry of Science and Technology; Regulation� into the legislative track, which will fill a MM There are many advantages and benefits to run- gap in local regulations on gender equality in China. ning businesses in zones; specific benefits will In 1993, Shenzhen Special Economic Zone was the vary by province and depend on local govern- first in China to issue implementation guidelines for ment. For example, some zones may provide the “Law of the People’s Republic of China on the factory buildings, while others may offer dis- Protection of Rights and Interests of Women.� Af- counted rent. ter over ten years of practice and implementation, it is clear that an amendment of current guidelines In 2009, the Ministry of Finance, the Ministry of will not be sufficient, and there is a need for new Human Resources and Social Security, and the regulation to promote gender equality in the current All-China Women’s Federation jointly released a social and economic situation in China. policy53 “to offer micro-credit with subsidized in- terest to women entrepreneurs and support wom- Legislation detailing the system and implementa- en’s employment and entrepreneurship. Women in tion of reemployment training and poverty alle- rural areas can apply for micro-credit from their viation policies for women will take into account local women’s federation and can receive loans women’s education level and family responsibili- without interest or with low interest.� This effort ties in order to develop programs that can meet could be linked to zones to stimulate additional their needs.54 investment by female entrepreneurs, such as the enterprise described above. The Women’s Federation in Shenzhen Special Economic Zone is spearheading the legislation with support from the Legal Affairs Committee Good-Practice Enablers of Women’s and the Internal and Judicial Affairs Committee Economic Empowerment in China of Shenzhen People’s Congress. It will be the first local regulation to address the survival and devel- Through fieldwork and other research, we have opment challenges of women in the new social and identified policies, initiatives, and business practic- economic situation in China.55 es that support economic opportunities for women and increase competitiveness for enterprises and zones. The following programs represent good 53 h t t p : / / c z z z . m o f. g o v. c n / z h o n g g u o c a i z h e n g z a - zhishe_daohanglanmu/zhongguocaizhengzazhishe_ practices that were identified in China, which have zhengcefagui/201003/t20100305_274347.html the potential to be replicated in other zones or en- 54 http://info.wenweipo.com/index.php?action-viewnews- terprises in China, as well as in zones or enter- itemid-42913 (Accessed June, 2011). prises in other countries. 55 http://finance.qq.com/a/20100812/001266.htm China Case Study 109 Grievance Programs for Women Labor Contract Law Enforcement and Workers Capacity Building for Labor Relations MM Enabler Type(s): Legal Practitioners and Workers MM Who: Maple Women’s Psychological Counsel- MM Enabler Type(s): Legal ing Center, Beijing MM Who: Business for Social Responsibility (BSR) MM Where: Beijing MM Where: Guangdong, Qingdao, and Hubei MM Time frame: 1992–present (as of 2011) MM Time frame: 2008–2010 MM Cost: Approximately US $50,000 per year for MM Cost: Training cost and associated costs were managing the hotline service approximately US$450 per participating fac- MM Benefit to women: Over 100,000 women have tory representative received counseling services. MM Benefit to women: Female supervisors and MM Benefit to business: Through the counseling human resources staff benefited from im- services, women are able to address and resolve proved skills and professional advancement emotional, physical, and workplace stress in a opportunities. Female workers benefited from safe way. improved treatment by trained supervisors and improved systems for grievance reporting and The Maple Women’s Psychological Counseling handling. Center in China runs several hotlines and man- MM Benefit to business: In 2008, nearly one mil- ages hundreds of volunteer counselors. The cen- lion labor disputes were filed (with more than ter listens to women’s grievances and tries to help 693,000 litigation cases and more than 237,000 them solve problems such as domestic violence. In labor arbitration cases), representing an increase 1992, the center started the first women’s hotline of 93.93 percent over the disputes filed in 2007. in China to provide free services to women. Improved communication and management practices related to grievance handling can pro- The program has successfully established a pro- vide business benefits including risk manage- cess for screening, interviewing, and assessing ment, improved worker satisfaction and loyalty, volunteers to run the hotline service. In this way, and increased productivity. the quality of the volunteers’ service is built and maintained, creating a valuable resource for the From 2008 to 2010, BSR partnered with interna- local community. The volunteer structure of the tional buyers, Qingdao Economic Development program also creates some challenges, including Zone, Wuhan Economic Development Zone, the the difficulty of predicting volunteer availability Federation of China Trade Associations and Cham- for staffing the hotline. There is also the challenge bers of Commerce, the Labor Bureau of Qingdao of volunteer turnover. The center addresses these Economic Development Zone, the Labor Bureau challenges by providing continuous training op- of Wuhan Economic Development Zone, and the portunities for volunteers to expand their capac- Guangdong Human Resource Management As- ity in counseling, which also helps maintain their sociation to run the Labor Relations Practitioners interest in providing service. (LRP) program. Other NGOs also provide similar services to dis- The LRP program provided training to supervisors advantaged women in China. For example, the and HR managers in communication skills and Shaanxi Association of Women Lawyers provides employee relations management, prevention and women with legal services, such as securing injury handling of labor disputes, and worker participa- compensation and bringing sexual harassment tion and collective bargaining, addressing the com- lawsuits. munication gaps within the workplace and broader systems. The program organized large-scale train- ing for over 1,500 factory representatives, small 110 Fostering Women’s Economic Empowerment through Special Economic Zones salon discussions, and industry-specific pilot pro- MM Where: Guangdong grams for the footwear and garment industries. MM Benefit to women: Women have their needs represented by unions. The project was developed in response to the 2008 MM Benefit to business: Women have access to Labor Contract Law, with the aim of providing so- representation for their unique needs, and indi- lutions to support buyer and supplier compliance vidual enterprises gain an occupational health and strengthen labor rights in Chinese factories and safety supervision mechanism. by creating a constituency of trained professional labor relations specialists. Most labor unions in China have women workers’ committees that deal with various women’s issues. To support uptake and replication, the program also The scale, functions, and conditions of these com- developed a training curriculum for professional la- mittees vary. The women workers’ committee in the bor relations practitioners, three case studies, and Guangdong Provincial Labor Union, for example, practical tools to help companies in China develop used to be the most proactive and innovative such a systematic way of engaging employees, including committee, led by an inspiring former vice chair- dealing with grievances or providing opportuni- man of the labor union, Ms. Li Liulian, and the for- ties for worker participation. The case studies and mer women workers’ committee chair, Ms. Yu Fen. practical tools cover topics such as participatory The progress or success of such committees depends communication at workplace (PCW), employee on the vision and courage of women leaders. assistance programs, and workplace peer education about women’s health, demonstrating how factories The Guangdong Provincial Labor Union was the benefit from workers’ engagement and participation. first union to conduct a survey on migrant workers’ needs, in 2002. 200,000 migrant women workers in Factors in the program’s success included strong 1,000 non-state-owned enterprises took part in the engagement by the Chinese government, key in- survey. In 2003, the union also developed a three- dustry groups, buyers, suppliers, and workers and level—city, district, and factory—occupational buy-in from local governments. As a result of suc- health and safety supervision system to strengthen cessful government buy-in and participation, and the participation and protection of women workers. following positive feedback from buyers and fac- tory suppliers, the Guangdong Province Shantou Labor and Insurance Bureau has decided to adopt All-China Women’s Federation Trainings and replicate the LRP program. MM Enabler Type(s): Social and Cultural, Profes- sional Advancement The major challenge the program faced was a delay MM Who: All-China Women’s Federation due to a merger in the Chinese government of the MM Where: Women’s Federation branches nation- Ministry of Labor and the Ministry of Human Re- ally, including in economic zones sources into the Ministry of Human Resources and Social Security. This transition slowed BSR’s ability Women leaders in Women’s Federation branches to secure buy-in and scale up the project at the start. at all different levels nationwide, including many economic zones, receive training on women’s issues and gender mainstreaming. The training consists Women Workers’ Committees in the of two parts: training for the trainers and train- Labor Unions ing for women leaders. The training for trainers MM Enabler Type(s): Legal normally takes 5–6 days, the training for women MM Who: Guangdong Provincial Labor Union, leaders 3–4 days. The training content varies, with Nanhai City Labor Union, and Shunde Labor modules including gender mainstreaming, inter- Union national trends and practices, Millennium Devel- China Case Study 111 opment Goals, issue analysis for China with regard MM Cost: Training costs are approximately US$1,500 to laws, political participation, employment, rural to US$2,000 per 100 participants. development, gender culture, and women’s devel- opment through project-based engagement. Each As of the end of 2007, this project provided mi- training module takes a half day. The training was grant women workers with free training and jointly initiated by the All-China Women’s Fed- relevant services on related laws, occupational eration and the Organization Department of the health and safety, psychological health and stress Chinese Communist Party Committee, and was management, reproductive health and HIVAIDS aimed at women leaders. In Shenzhen city, the protection and prevention, interpersonal com- training has been extended to all districts, and munication skills, social safety, financial literacy 800–1,000 women leaders are trained each year; and life planning, and start-up of small busi- the same group of women takes part in different nesses, among other topics. This project was or- training courses every year. Each training class ganized and implemented by a task force from contains about 40 women leaders. The core mate- Tsinghua University, the Guangdong Women’s rial is a book, Mainstream of Social Gender (2009, Professional Technical College, the Guangdong by Ms. Liu Bohong, Deputy Director of China Women’s Federation, and local women’s federa- Women’s Studies Institute), which covers topics tions in Sanxiang and Wujiang. Additional part- such as gender-responsive budgeting and gender ners include local governments, trade unions, fac- auditing. tories, universities, NGOs, and others. Following the completion of the project in 2007, according As a result of this training, many women lead- to the factory managers in Sanxiang, the facto- ers become champions in their industry sector ries continued to implement the project activities for gender equity and mainstreaming of gender themselves. in their business operations. For example, Mag- gie Liu, former Corporate Citizenship Lead in This project developed social aid and services for Cisco Greater China, has incorporated diversity migrant women workers, and mobilized resources and inclusion into Cisco’s business operations from government, enterprises, local communities, in China. Another expert, Professor Qu Ning and all aspects of society to support social inte- of Guangdong Women’s Professional Technical gration of rural migrants. The project provided College, has helped incorporate gender inclusion 510 themed lectures, special training for 134,000 and mainstreaming into the training curricu- women, and distribution of 53,500 copies of 38 lum of the Chinese Communist Party School in editions of Mailbox for Migrant Women Workers. Guangdong. The project also oversaw publication of the Sanx- iang Newspaper for Migrant Women Workers, the organization of an amateur performance troupe Community-based Interactive Training of workers, and themed activities such as forums, Project of Migrant Women Workers seminars, special competitions, large-scale coun- MM Enabler Type(s): Legal, Social and Cultural, seling activities, and research. Professional Advancement MM Who: The Asia Foundation, Levi Strauss Topics covered in program activities were chosen Foundation based on the needs of migrant women workers. MM Where: Nanhai Zone of Foshan City, Sanx- They included self-esteem and social values, inter- iang Town of Zhongshan City, Wujiang Zone personal relationships and communication, psy- of Nanjing City, and Beijing chological health, legal and rights protection, hy- MM Time frame: 2000–2010 in Sanxiang Town; giene and health care, self-development, love and 2007–2008 in Wujiang Zone; 2004–2005 in marriage, social safety, occupational health and Nanhai Zone; 2007–2010 in Beijing safety, safe sex and prevention of AIDS, vocational 112 Fostering Women’s Economic Empowerment through Special Economic Zones skill training, business start-up training, predepar- completed their vocational training and completed ture training before migration, and others. internships in their professional field of choice.57 As a result of the program, more than 570 legal aid cases were handled, 495 of those cases for women. China Training Institute: Supervisor Among the cases, 565 were closed, and 522 were management trainings won or mediated successfully, with over 14 million MM Enabler Type(s): Social and Cultural, Profes- RMB in compensation won. 100 migrant women sional Advancement workers’ lives were saved; 73 of these women who MM Who: China Training Institute (BSR) suffered poisoning from toxic substances at work MM Where: Guangzhou, Guangdong Province were able to go to hospital or continue to receive MM Time frame: 2008–present (as of 2011) treatment after accidents.56 MM Cost: US$8,500 per facility inclusive of travel cost Success factors for the program included collabo- MM Benefit to women: Indirect; improved man- ration between multiple parties with shared objec- agement skills of supervisors may encourage tives, including the local government, unions, and better treatment of female workers, reduce organizations working on issues of family plan- sexual harassment, and improve sensitivity to ning, migrant workers, or women. gender issues. MM Benefit to business: Supervisors’ management skills are improved, and worker-management Scholarship Program for Chinese relations can also improve. Women Workers MM Enabler Type(s): Professional Advancement The China Training Institute (CTI), started in MM Who: Wal-Mart Foundation 2004, helps companies and their Chinese suppli- MM Where: Guangdong Province ers improve corporate social responsibility (CSR) MM Benefit to Women: Access to education schol- performance and overall competitiveness through arships and opportunities for skills development. a wide range of training, roundtables, salons, and MM Benefits to Business: Female workers gain long-term training programs. CTI offers supervi- skills at no cost to individual enterprises. sor training relevant to the needs of supervisors, such as communication and supervisory skills and From 2006 to 2010, the Wal-Mart Foundation do- stress management. nated US$255,000 to the Scholarship Program for Chinese Women Workers, providing educational MM The communication training workshop pro- scholarships for 70 migrant women workers across vides skills and advice for starting constructive Guangdong Province, the heart of China’s boom- dialogue between supervisors and employees. It ing manufacturing center. The program sponsors helps to enhance the communication efficiency advocated vocational education for migrant women of the team. The workshop provides supervisors workers to improve their career prospects. Of the 70 with hands-on experience in team communi- recipients of the scholarship, 40 studied preschool cation and coaching skills. education and computer application technology at MM The supervisory skills-training course teaches the Guangdong Women’s Professional Technical trainees how to build leadership competencies College, while the other 30 studied at other voca- tional schools. Courses provided by those colleges 56 Asia Foundation: Community-Based Interactive Train- and schools include human resource management, ing Project for Migrant Women Workers in the Pearl business administration, logistics management, River Delta. computer science, foreign languages, and economics. 57 Walmart News: Wal-Mart Sponsors Scholarship for By 2010, it is expected that all 70 students will have Migrant Women Workers. China Case Study 113 such as communication, authorization, and Innovations to Further Female coaching and motivating subordinates. It also Workers’ Welfare and Advancement focuses on the common issues that supervisors face and solutions to address these issues. Legal: Address Sexual Harassment in MM The stress-management training workshop the Workplace focuses managing stress and identifying ways Research by the All-China Federation of Trade to mitigate stress. The course will start by iden- Unions (ACFTU) on workplace sexual harassment tifying the symptoms and signals of stress and indicates that the state-owned enterprises have the then provide good practices for better stress lowest incidence of sexual harassment, followed by management. multinational companies and large private enter- prises, with small businesses demonstrating the SA factor contributing to the success of the pro- highest incidence of sexual harassment. gram is that it demonstrates to management that as workers’ management skills are improved, their Based on the interviews and the questionnaire professional satisfaction also often improves. An- survey conducted by BSR over the two years of other success factor is the participatory methodol- research for this study, more than half of female ogy used in trainings, which helps trainees inter- workers have encountered sexual harassment them- nalize messages and support peer-to-peer learning selves and most female workers said that sexual ha- after the training. rassment happens in their workplace. The survey’s definition of sexual harassment included harass- The main challenges faced by the program are re- ment conducted through language, text, physical lated to the timing of training around the tight behavior, photographs, and electronic information schedule of management teams inside factories, in the workplace. It is worth noting that most fe- especially during the peak season. To address this male workers don’t view making dirty jokes as sex- challenge, CTI trainers work to gain commit- ual harassment; such behavior is common in zone ment at the senior management level, and enlist workplaces in China. Sexual harassment lawsuits senior management to communicate the value do occur, but many more women choose to keep proposition to participating middle managers. silent when they experience sexual harassment. CTI further encourages participating factories to incentivize worker participation with promo- According to a 2010 study by Peking University,58 tion opportunities on completion of training pro- 42.8 percent of working units interviewed had no grams. policy to prohibit workplace sexual harassment. As a result of this lack of workplace protection, 28.7 percent of women interviewed reported sexual ha- Remaining Challenges and rassment by peer colleagues and 17.2 percent re- Opportunities for Innovation in ported sexual harassment by supervisors. A further China 54.1 percent of women interviewed reported hav- ing experienced sexual harassment from both peer While uncovering best practices, we have also colleagues and bosses.59 identified major barriers and poor practices that af- fect women trying to enter the workforce, achieve upward mobility, or start their own business in China’s special economic zones. The following are 58 Zhang Shuai, “China Workplace Gender Discrimina- tion Research�, Women Laws Research and Service areas where further innovation and program de- Center, Peking University, 2010. velopment can help address remaining challenges 59 Zhang Shuai, “China Workplace Gender Discrimina- to women’s economic empowerment in China in tion Research�, Women Laws Research and Service trade zones and beyond. Center, Peking University, 2010. 114 Fostering Women’s Economic Empowerment through Special Economic Zones This research highlights an urgent need for busi- ing to the system, workers have to return to their nesses to develop workplace sexual harassment hometown when they get old or their family needs policies, to provide related training to female work- them unless they are granted local registered resi- ers about their rights vis-à-vis sexual harassment dence status. This system perpetuates the particular and management training on gender sensitivity, expectation that female migrants will return to their and to create anonymous hotlines for women to hometown to raise their children and look after their report abuse. elders at an earlier age than male workers. Therefore, most female workers view the length of their work- ing career as restricted, and likewise, most managers Legal: Increase the Role of Unions in view them as a transient population. Protecting Female Workers’ Rights In China, independent labor unions are prohib- If migrant workers are not registered locally, it is ited. The only union is the government-affiliated extremely difficult for them to settle in the indus- ACFTU, whose role is stipulated in the China trial areas. For example, their children would not Law on Labor Unions. Enterprises are required to be able to attend school in the town, and the work- allow worker participation in the state union and ers themselves would not receive a pension. The to treat all employees equally, regardless of whether household registration system also restricts access they are members of the union or not. Within this to social security and health care, thus increasing context, however, labor union participation is very out-of-pocket costs for personal and occupational low, and labor organizations do not believe the AF- health diagnoses and treatment for nonregistered CTU correctly represents workers’ interests. workers. If women choose to stay in the cities lon- ger, such restrictions often serve to trap them and Except for a few efforts, most factory manage- their families in the cycle of poverty. ment teams do not have regular dialogue with labor union representatives with regard to wages, Some local governments in small towns and cities work time, and benefits. According to interviews are pilot-testing loosening the Hu Kou system to with the economic zones’ female workers, very few allow rural migrant workers to stay in the industrial workers realize that a labor union exists, let alone communities where they work after accumulating understand the function of the labor union and a certain number of years of work. Shenzhen SEZ how to assert their rights through it. revised the Hu Kou system in the early 1980s to issue temporary household registration to migrant There are a small number of innovative programs workers; however, this effort also entailed restric- trying to establish independent labor unions, but tions that affected marriage, childbirth, and support far more are needed for significant change. For ex- for family members.60 The experiment in Shenzhen ample, Reebok conducted a pilot program in one can be used as an example to be replicated and im- factory in Xiamen Economic Zone. Workers were proved upon in other SEZs in China. allowed to elect their own labor union represen- tatives and the pilot factory was encouraged to respect the election process and the results of the Advancement: Remove Limitations on election at their factory. Women’s Professional Advancement To address gender discrimination in professional advancement opportunities in China there is a Legal: Revise the Hu Kou System The Hu Kou registration system in its current form places significant restrictions on migrant workers’ Pun Ngai, “Women Workers and precarious employ- 60 welfare and career development, with dispropor- ment in Shenzhen Special Economic Zone, China�, tionate impacts on female migrant workers. Accord- Gender and Development, 12: 2, July 2004. China Case Study 115 need for all employers to develop workplace non- continue to plague factory managers. Developing discrimination policies. Additionally, gender quo- female workers to allow internal promotion within tas for management positions and policies pro- factories can help women realize their objectives hibiting gender-specific job descriptions could be and may help factories reduce turnover. introduced. Finally, registration legislation also contributes to There also exists an opportunity to formalize train- restrictions on women’s professional advancement, ing for female workers to support their skills devel- and it should be revised to allow women to stay opment in order to help factories and zones retain in the workforce as long as men if they choose to female workers as they pursue professional growth. do so. Formal studies and interview series have demon- strated that female workers have a strong desire to grow professionally and advance in the workplace 61 Chang, Leslie, Factory Girls: From Village to City in a in China.61 At the same time, high turnover levels Changing China, Spiegel & Grau, 2008. Resources: Key Gender Stakeholders in China Organization Location Focus Area Asia Foundation Beijing Factory-based programs for women including health, education, empowerment, and rights awareness. Asia Monitor Resource Center Hong Kong Workers’ rights and democratic labor movements throughout Asia, including China. BSR Guangzhou, Factory-based programs for women including health, education, Beijing, Hong Kong empowerment, and rights awareness. China Labor Bulletin Hong Kong Workers’ rights advocacy network. China Labor Watch New York Workers’ rights education and advocacy; legal assistance; research and publications. China Training Institute (CTI) Guangzhou Professional training institute providing courses in management, communications, social and environmental compliance, and other topics. China Women’s Studies Institute Beijing Research and advocacy. Affiliated with All-China Women’s Federation. China Working Women’s Network Shenzhen Women workers’ rights advocacy. Fair Labor Association Beijing Women workers’ rights research and advocacy. Maple Women’s Psychological Beijing Hotline and counseling services for women. Counseling Center Shaanxi Association of Women Lawyers Shaanxi Women’s legal advice and services. World Health Organization Beijing Health research and programs, including TB and HIV/AIDS prevention for women. 116 Fostering Women’s Economic Empowerment through Special Economic Zones Costa Rica Case Study: Fostering Women’s Economic Empowerment through Special Economic Zones T his study examines the role of special eco- “enablers� for women’s economic participation in nomic zones (SEZs) in promoting women’s zones if they are addressed directly and effectively economic empowerment and creating sus- through policies and programs at the government, tainable jobs as a way to boost zones’ competitive- zone, and enterprise levels. As such, the study ness. The Costa Rica case study supports a global presents numerous examples of good practices. In research initiative to uncover good practices for addition to a small number of relevant replicable women’s economic advancement within the zones practices in zones, the study also finds useful ex- and define a practical approach to design, promote, amples outside of zones that could be replicated and implement gender-inclusive SEZs across the within zones. globe. Findings are based on field research in eight countries, as well as a global literature review. Costa Rica was selected as one of two Central American countries to be included in the study be- To support women’s improved economic partici- cause Costa Rica is a stable country with progressive pation in zones, this study seeks to identify good- regulation and government policies toward women, practice programs and policies that can be imple- a relatively high GDP, and strong, healthy free trade mented by SEZs throughout the world to promote zones (FTZs). Costa Rican zones have attracted di- women’s advancement at three levels: verse and advanced manufacturing firms, including medical devices and electronics makers, as well as MM Fair employment and working conditions for companies from the service sector. female employees MM Equal access to opportunities for professional advancement Methodology MM Investment opportunities for female entrepre- neurs This case study is based on findings from a combi- nation of stakeholder organization interviews, qual- In doing so, the study identifies key legal and reg- itative factory-based research, and desk research. ulatory issues, social and cultural constraints, lack The primary research included sixteen in-person in- of support services, and investment-climate issues terviews conducted June 7–11, 2010, in Costa Rica, affecting women as the main obstacles to decent and one phone interview conducted in April 2010. working conditions, upward mobility, and invest- The study is also informed by interviews with man- ment opportunities within SEZs. The study argues agers at five enterprises in three free trade zones, that these obstacles can also be used positively as and with representatives from two zones in Costa 118 Fostering Women’s Economic Empowerment through Special Economic Zones Stakeholder Type Number Objective of Engagement Civil Society 2 Determine challenges facing Costa Rican women at work and at home, and learn about programs and poli- cies seeking to address those challenges. Female Entrepreneur 1 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/owning a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Government 5 Identify government’s priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Private Sector 8 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or potential future programs or policies. Rica: Coyol Free Zone & Business Park, and Fo- Costa Rica’s zones are unique compared to other rum Business Park and Free Zone. Primary research zones in this study, as they comprise many service was supplemented by documentation received dur- enterprises as well as advanced manufacturing of ing the field work and deskt research. electronics, medical devices, and aerospace equip- ment. Originally, the companies in the Costa Ri- can zones were mainly in manufacturing, largely Zone Programs in Costa Rica apparel. However, over the last decade there has been a transition to more advanced manufacturing Costa Rica’s zone program was established in 1981 and the introduction of service companies. For ex- with the enactment of the Free Zone Act (Law ample, according to CINDE and PROCOMER, 7210). Costa Rica has one zone regime, and each in 2000 there were five service companies employ- FTZ is individually managed by a private corpora- ing about 2,000 workers, and in 2010 there are tion supervised by the FTZ Board, consisting of over 90 service companies employing over 20,000 PROCOMER and COMEX (Ministry of For- workers. Additionally, there are now very few “ma- eign Trade), which grants companies benefits and quilas� (apparel manufacturers), as they have been operational permits. replaced by more advanced manufacturers, such as medical device makers. Costa Rica is focused on Costa Rica recently reformed the zone law by attracting “high-tech� investments. For example, in removing the minimum export requirement so 2005, service companies represented 26 percent of that it is in compliance with the World Trade the productive activity developed in the free zones, Organization (WTO). The reform also encour- electric/electronic activities along with medical ages development in less developed areas of the equipment and precision instruments represented country and strategic investment in key sectors. another 26 percent, and the textile/garment indus- PROCOMER said that there are currently 29 try represented only 16 percent.1 zones in Costa Rica, including zones that have both manufacturing and services, and zones that Key characteristics of the program as of 2008 are have manufacturing only. Additionally, there is a as follows:2 business park with locations called Forum I and Forum II that currently only contains service 1 ILO “Costa Rica: Estudio Sobre las Zonas Francas.� companies; floors within buildings in the park November 2007. are designated as free zones so that companies 2 PROCOMER, 2009. “Balance de Las Zonas Francas: located on those floors receive the benefits and Beneficio Neto del Régimen Para Costa Rica 2004– incentives provided in the free zone law. 2008.� Costa Rica Case Study 119 MM Continuous increase in the number of compa- Obstacles to Women’s Economic nies in the FTZs, totaling 259 in 2008 Participation in Costa Rica MM FTZ companies account for 52.1 percent of Costa Rica’s exports A country’s legal framework and cultural norms MM Service-company FTZs account for 22.4 per- play a significant role in determining women’s cent of Costa Rica’s service exports economic opportunities and fair employment. In MM About two-thirds of imports to FTZ compa- addition, key issues such as education, health, and nies are assembly parts, which is evidence that living conditions impact women’s ability to excel many of the FTZ companies are dedicated to and advance in the workplace. Finally, entrepre- high-value-added production neurship is an area of opportunity where women MM Total accumulated investment grew on aver- face unique challenges. age by 10.1 percent per year between 2004 and 2008, reaching a peak of US$2,722 million. This study sought to identify key barriers and en- The biggest increase in this area is due to in- ablers within zones that impact women’s fair em- vestment services companies. ployment, advancement opportunities, and entre- MM Foreign direct investment (FDI) generated preneurial investment opportunities across eight by the FTZs recovered in the last three years, countries. The study found several common factors reaching US$444.7 million in 2008, and in- across countries that can act as obstacles to or en- creasing its share of total FDI to 22.1 percent. ablers of women’s economic empowerment. Poli- MM In 2008, the number of jobs generated by cies, initiatives, and business practices can become FTZs was 52,742, growing on average by 10.4 enablers to spur women’s economic participation. percent per year since 2004 MM Salaries paid by enterprises in FTZs have Women’s entry into the workforce, their welfare grown on average by 10 percent since 2004, and retention or dropout rates are affected by a va- reaching an average value of US$842.50 per riety of factors. Key themes are explored around month per worker. The average salary in the the following categories. FTZs is 65 percent higher than the average wage in Costa Rica MM Female Workers’ Welfare and Advancement XX Legal Policies and Enforcement: Interna- The study included interviews with representatives tional and local laws pertaining to female from two zones in Costa Rica: Coyol Free Zone employees and their enforcement. Women & Business Park, and Forum Business Park and often lack access to employment opportu- Free Zone. There were few, if any, zone-wide pro- nities in the formal sector, and require ad- grams specifically targeted at women in either of ditional protections as employees, such as the FTZs that we visited; however, some initia- maternity leave and child care. tives may benefit women more than men, such as XX Social and Cultural Challenges: Cultural the zone-organized transportation programs. norms dictate women’s home responsi- bilities and can impact women’s economic Regarding female entrepreneurship in zones, the participation, and social factors including study identified that small businesses are permit- education, health, child care, and living con- ted in the zones, but this is not a common practice, ditions can impact women’s ability to work beyond a few cafeterias (“sodas�), none of which and excel at work. were known to be owned by women. XX Professional Advancement Opportuni- ties: Advancement opportunities for wom- en are tied to education and skills develop- 120 Fostering Women’s Economic Empowerment through Special Economic Zones ment, and are also influenced by social and policy, the delivery of trainings, campaigns to re- cultural factors. duce sexual discrimination, and the mainstream- ing of gender considerations in the Social Secu- This study has also identified replicable good prac- rity Department. tices in Costa Rica, which are outlined in the sec- tion “Good-Practice Enablers of Women’s Eco- The free zone law states that companies must com- nomic Empowerment in Costa Rica� that follows ply with the other national laws, such as the Costa on page 8. Rican Labor Code (Código de Trabajo), which is the legal reference for all labor regulations. Female Workers’ Welfare and Tables 1 and 2 summarize illustrative conventions Advancement and laws currently in place that affect women. Legal Policies and Enforcement Despite legislation prohibiting discrimination at Costa Rica is a democratic republic with executive the workplace, some interviewees said that dis- responsibilities vested in a president. In addition, crimination against pregnant women and moth- there are two vice presidents and a cabinet with ers persists. Interviewees reported that some en- over 20 members. In 2010, Costa Rica elected a terprises still give pregnancy tests as part of the female president, Laura Chinchilla, whose plat- hiring process, and as maternity leave is seen as form included “supporting women’s issues.�3 Ad- a cost, some enterprises have started to provide ditionally, some ministers—including the minister short-term contracts rather than full-time posi- of labor, Sandra Piszk—are female. tions to women. Nationally, there is a government institution dedicated to women, the “Instituto Nacional de Social and Cultural Challenges la Mujeres� (INAMU) or National Institute for Costa Rica is located in Central America, between Women. Together with the Ministry of Work Nicaragua and Panama, and has a population of and Social Security INAMU created a women’s 4.3 million.5 Spanish is the official language, and policy, “Politica Nacional Sobre Mujeres, Trabajo, English is becoming widely spoken given the y Empleo,� or the National Policy about Women, government’s priority to include English courses Work and Employment, after six consultations starting in grade school and companies’ invest- with over 542 women workers from March to ment in providing English language courses for July 1999.4 Additionally, many government min- their employees. According to the National In- istries, such as the Social Security Department stitute of Statistics and Census (INEC), 11 per- and the Ministry of Labor, have established “gen- cent of men and 9 percent of women are fluent der units.� The Ministry of Labor’s gender unit’s in English.6 initiatives include identifying and disseminating good practices related to women and work, con- ducting a campaign to eliminate pregnancy tests 3 U.S. Department of State Costa Rica Country Profile. as part of the hiring process, and educating work- Accessed at http://www.state.gov/r/pa/ei/bgn/2019.htm. ers and employers on the revisions to the Costa 4 INAMU. Accessed at http://www.inamu.go.cr/index. Rican Labor Code. The Social Security Depart- php?option=com_content&view=article&id=33&Item ment’s Gender Equity Program also carries out id=1497. 5 U.S. Department of State, 2010 Background Note: Cos- gender initiatives to empower women workers ta Rica http://www.state.gov/r/pa/ei/bgn/2019.htm and to educate employers and human resource 6 Costa Rican Instituto Nacional de Estadística y Censos managers. These include the development of the (INEC), cifras de la Encuesta de Hogares y Propósitos Social Security Department’s internal gender Múltiples, Julio 2009. Costa Rica Case Study 121 TABLE 1  ■  Ratification of ILO Core Conventions* ILO Convention Ratified or Not 29 Forced Labor Ratified 87 Freedom of Association and Protection of the Right to Organize Ratified 98 Right to Organize and Collective Bargaining Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) Ratified * ILO accessed at http://www.ilo.org/ilolex/english/docs/declworld.htm. TABLE 2  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities Law Law Description National or Zone Maternity Leave, Art. 95, Costa Mandatory paid maternity leave during the month before and three months after Both Rica Work Code delivery. Breastfeeding Leave, Costa Rica Every mother in the nursing period (the minimum period of lactation is the first Both Work Code, Arts. 95 & 97 three months) may have a break from work of fifteen minutes every three hours or half an hour twice a day in order to breastfeed her child. Law against Sexual Harassment at Forbids and sanctions sexual harassment Both the Workplace Nondiscrimination Based on It is prohibited for employers to dismiss workers who are pregnant or breastfeed- Both Pregnancy or Marital Status, ing, except for serious misconduct arising from the duties under the contract. Costa Rica Work Code, Art. 94 Limits on Women’s Work, Costa It is forbidden to contract women to perform work with unhealthy, dangerous, or Both Rica Work Code, Arts. 87 & 88 heavy physical aspects. It is forbidden to have women perform work at night, with the exception of work at home or in family, nursing, social visiting, and other similar domestic service. Costa Rica, classified by the World Bank as an successions include “enlightened leadership, com- upper-middle-income economy,7 has a GDP per parative prosperity, flexible class lines, educational capita of US$5,801.8 Costa Rica ranks 54th out of 182 countries in UNDP’s Human Development Report 2009. Costa Rica has the highest standard 7 World Bank classifications accessed at http://data. of living in the region, and among the highest in worldbank.org/about/country-classifications/country- Latin America and the Caribbean, as well as one of and-lending-groups 8 UN Statistics Division’s World Statistics Pocket- the lowest poverty levels.9 Costa Rica is known for book. Accessed at http://data.un.org/CountryProfile. its political stability and inclusive democracy. Fac- aspx?crName=Costa%20Rica tors that have contributed to this stability, orderly 9 World Bank, 2009. Costa Rica Competiveness Diagnostic democratic institutions, and smooth government and Recommendations. 122 Fostering Women’s Economic Empowerment through Special Economic Zones opportunities that have created a stable middle tors, has created many employment opportunities class, and high social indicators. … Because Costa in Costa Rica.17 The global recession of 2008–2009 Rica has no armed forces, it has avoided military hit working women harder than men, driving involvement in political affairs, unlike other coun- women’s unemployment levels up to almost 10 per- tries in the region.�10 cent, as compared with 6.6 percent for men.18 Costa Rica’s total exports are US$8.9 billion, and The free trade zones employ a significant and in- its major trading partners are the United States creasing number of workers: from 16,697 workers (36.6 percent of exports) and China (9.4 per- in 1997 to 49,904 workers in 2007.19 Additionally, cent).11 Costa Rica’s exports include integrated the new jobs created by companies in the free trade circuits, medical equipment, bananas, pineapples, zones pay higher wages than the average national coffee, melons, ornamental plants, sugar, textiles, wage. In 2007, the free-zone wage was double the electronic components, and medical equipment.12 average income of a skilled worker, and, in some The United States accounts for more than two- cases, such as INTEL, the wage was almost three thirds of the foreign investment in Costa Rica.13 times the national minimum wage.20 However, there is a gender income gap—according to a rep- Costa Rica ranks 59th out of 134 countries in the resentative of the United Nations Development World Economic Forum’s 2008 Global Competi- Fund for Women there is a consistent gap of 19 tiveness Index, reflecting an improvement of 9 places percent between men’s and women’s wages.21 since 2006, and, with Panama, is ranked as the most competitive country in Central America. Costa Ri- ca’s competitive advantages include fairly efficient 10 U.S. Department of State Costa Rica Country Profile. institutions, relatively good primary and higher edu- Accessed at http://www.state.gov/r/pa/ei/bgn/2019.htm 11 UN Statistics Division’s World Statistics Pocket- cation systems, flexible labor markets, and a capacity for innovation in the business sector.14 book. Accessed at http://data.un.org/CountryProfile. aspx?crName=Costa%20Rica 12 U.S. Department of State Costa Rica Country Profile. In 2010, in recognition of women as potential Accessed at http://www.state.gov/r/pa/ei/bgn/2019.htm leaders in economic recovery from the global re- 13 U.S. Department of State Costa Rica Country Profile. cession, the National Bank released financial pro- Accessed at http://www.state.gov/r/pa/ei/bgn/2019.htm 14 World Economic Forum, “Global Competitiveness grams targeting women, including a credit card for women only and “Banca Mujer,� a suite of finan- Report 2008–2009.� (http://www.gafinet.org/English/ Publications/GlobalCompeti.Repor2008-2009pdf.pdf ) cial services for women, including millions of dol- 15 International Museum of Women, “Costa Rica: A lars in new loans for businesswomen.15 Model Country?�, November 2010. 16 Costa Rican Investment Promotion Agency (CINDE). Key social and economic indicators are summa- Accessed at http://www.cinde.org/index.php/workforce. 17 Costa Rica Ministry of National Planning and Political rized in Table 3, which is followed by contextual information, including the perceived challenges Economy (MIDEPLAN), 2008. Costa Rica: Contribucion de las Zonas Francas en las Areas de Menor Desarrollo. P. 33. and barriers to greater gender empowerment. 18 International Museum of Women, “Costa Rica: A Model Country?�, November 2010. Employment 19 Costa Rica Ministry of National Planning and Political Costa Rica has a relatively low unemployment rate Economy (MIDEPLAN), 2008. Costa Rica: Contribu- of 7.8 percent and relatively high female labor force cion de las Zonas Francas en las Areas de Menor Desarrollo. participation at 43.1 percent. According to CIN- P. 32. 20 Costa Rica Ministry of National Planning and Political DE, 43 percent of the population is between the Economy (MIDEPLAN), 2008. Costa Rica: Contribucion ages of 15 and 40,16 which results in a labor force de las Zonas Francas en las Areas de Menor Desarrollo. P. 32. of approximately 2.05 million people. The govern- 21 International Museum of Women, “Costa Rica: A ment’s investment in education, among other fac- Model Country?�, November 2010. Costa Rica Case Study 123 TABLE 3  ■  Socioeconomic Indicators: Costa Rica Indicator Total Adult Population Female Population Ratio: Female to Male % of population living on less than US$1.25, 2.4%, 8.6% US$2 per day Education (combined primary, secondary, 73% 74.4% tertiary) Literacy (for ages 15+) 96% 96.2% 1.00 Labor force participation 43.1% 0.54 Unemployment 7.8% 9.9% Earned income (PPP US$ annually) 6,788 0.46 Major Religions Primary Roman Catholic 70.5% Other Evangelical Protestant 13.8% Gender Measures Gender-related development index (GDI) 0.848, Rank 47/155 ranked countries Gender empowerment measure (GEM) 0.685, Rank 27/109 ranked countries Women-held seats in parliament, women in 37%, 29% government at ministerial level (% of total) Female legislators, senior officials, managers (% 27% of total) Female professional and technical workers (% 43% of total) Women with unmet family planning needs 5% Births attended by skilled health professional 99% Maternal mortality rate (per 100,000 live births) 30 Source: UNDP Human Development Report, U.S. Department of State Costa Rica Country Profile, UN Statistics Division, World Statistics Pocketbook, 2008, DHS, Costa Rican Instituto Nacional de Estadística y Censos (INEC), cifras de la Encuesta de Hogares y Propósitos Múltiples, Julio 2009. Education of 6 and 13; additionally, the government has Since 1948, when Costa Rica abolished the armed programs to guarantee literacy in computer sci- forces, significant additional resources have been ences and English as a second language.24 In ad- invested in education and health services for the population. The government is constitutionally re- quired to allocate at least 6 percent of the coun- 22 Costa Rican Investment Promotion Agency (CINDE), try’s GDP from its annual budget to educational 2009. Costa Rica Education Overview. Accessed at programs.22 From 2000 to 2007, the public expen- http://www.cinde.org/attachments/069_028_Educa- diture on education was 20.6 percent of total gov- tion%20Overview%202009.pdf. 23 UNDP Human Development Report 2009 ernment expenditures.23 24 Costa Rican Investment Promotion Agency (CINDE), 2009. Costa Rica Education Overview. Accessed at Since 1870, elementary schooling has been free http://www.cinde.org/attachments/069_028_Educa- and compulsory for all children between the ages tion%20Overview%202009.pdf. 124 Fostering Women’s Economic Empowerment through Special Economic Zones dition to free grade schools, Costa Rica has 95 Health technical schools, 60 universities, and the Na- Costa Ricans have access to a system of public tional Training Institute (INA), an autonomous health care including community health centers, public institution created in 1965 that offers free clinics, and hospitals. Costa Ricans have high technical training. The INA is financed primar- health indicators: a life expectancy of 78.7 years, ily by resources coming from an earmarked 1.5 and a maternal mortality rate of only 30 per percent payroll tax, resources from the private 100,000 live births (99 percent of births are at- sector, and the government budget.25 In addition tended by a skilled health professional).32 to free technical training provided across Costa Rica, the INA offers customized training pro- Housing grams for companies “that need their employees The population is concentrated in the “greater met- to learn an innovative process or technology that ropolitan area,� which includes the cities of San is still non-existent in the country and essential to Jose, Alajuela, Cartago, and Heredia, where ap- their productive process.�26 In 2008, INA trained proximately 2.1 million people,33 49 percent of the around 50,000 people and had a budget of close population, live. Historically, the majority of free to US$89 million.27 trade zones have been located in or near the greater metropolitan area; however, there is a government The results of these investments are impressive. initiative by the Ministry of Planning and Eco- The literacy rate is 96 percent and the combined nomic Policy to provide incentives to locate zones gross rate of enrollment in education is 74.4 per- in areas of lesser development to encourage local cent for women and 71.6 percent for men.28 The development and create employment opportunities. level of education of the population is believed to have been a decisive factor that influenced elec- tronics and medical device companies to locate in 25 Costa Rican Investment Promotion Agency (CINDE), Costa Rica.29 2009. Costa Rica Education Overview. Accessed at http://www.cinde.org/attachments/069_028_Educa- tion%20Overview%202009.pdf. Religion and Culture 26 Costa Rican Investment Promotion Agency (CINDE), Christianity is the main religion in Costa Rica. 2009. Costa Rica Education Overview. Accessed at According to the 1949 Constitution, Roman Ca- http://www.cinde.org/attachments/069_028_Educa- tholicism is the official state religion. 70.5 percent tion%20Overview%202009.pdf. 27 Costa Rican Investment Promotion Agency (CINDE), of the population is Roman Catholic and 13.8 per- 2009. Costa Rica Education Overview. Accessed at cent is evangelical Protestant.30 Costa Rica appears http://www.cinde.org/attachments/069_028_Educa- to have an egalitarian culture, with women reach- tion%20Overview%202009.pdf. ing top positions in government, including cur- 28 UNDP Human Development Report 2009 (2007 data) rently the presidency. However, the study “Tenden- 29 Costa Rica Ministry of National Planning and Political cias Recientes de la Inserción Femenina en el Mercado Economy (MIDEPLAN), 2008. Costa Rica: Contribucion Laboral en Costa Rica,� presented by the Estado de de las Zonas Francas en las Areas de Menor Desarrollo. P. 33. 30 U.S. Department of State Costa Rica Country Profile. la Nación and the Instituto Nacional de las Mu- Accessed at http://www.state.gov/r/pa/ei/bgn/2019.htm jeres (INAMU), found that despite the relatively 31 INAMU, 2009. Article “Tendencias Recientes de la In- high female labor force participation, women’s em- serción Femenina en el Mercado Laboral en Costa Rica en ployment is not always in high-quality positions, la ultima decada.� accessed at http://www.inamu.go.cr/ and women face problems of unemployment, un- index.php?option=com_content&view=article&id=1 deremployment, and income gaps. For example, 160:tendencias-recientes-de-la-insercion-femenina- en-el-mercado-laboral-en-costa-rica-en-la-ultima- 25 percent of working women work fewer than 30 decada&catid=291:noticias-2009&Itemid=1449. hours per week, and the income gap has shown an 32 UNDP Human Development Report 2009 (2007 data) upward trend in the last five years, from 20 percent 33 U.S. Department of State Costa Rica Country Profile. in 2003 to 26 percent in 2008.31 Accessed at http://www.state.gov/r/pa/ei/bgn/2019.htm Costa Rica Case Study 125 Within the greater metropolitan area, workers el. On the basis of interviews, it appears that this often commute by public bus to the zones, which situation has improved, and that upward mobility can take time and can create safety concerns, espe- at lower levels is not uncommon, but in many en- cially for women. Some companies provide access terprises it is still a challenge. to transportation for their workers, and one zone coordinates (but does not pay for) private trans- Within this context, there exists an opportunity to portation for workers (see example below). Most support female zone workers’ development more entry-level working mothers leave their children formally, in order to help enterprises and zones with family or friends at or near home as they retain female workers as they pursue professional cannot afford private child care; however, man- growth. agement-level working women in zones may have access to private child care, although many stated Our research identified some good examples of that they still prefer to leave their children in the investment in professional development opportu- care of someone they know. nities such as internship placements, government- sponsored training, and enterprise support for con- tinued adult education and training. In particular, Professional Advancement Opportunities service and advanced manufacturing enterprises Most enterprises interviewed appear to under- tend to be more sophisticated and supportive in stand that developing their staff is good for busi- this area. These examples are outlined in the fol- ness, specifically for productivity, worker reten- lowing section, “Good-Practice Enablers of Wom- tion, and worker satisfaction. However, few, if any, en’s Economic Empowerment in Costa Rica.� enterprise-level programs specifically targeted women. Several challenges remain that prevent women’s professional development and advance- Good Practice Enablers to ment in Costa Rican trade zones: Women’s Economic Empowerment in Costa Rica MM Lack of sufficient education and skills required for advancement Through fieldwork and other research, we have MM Limited formal training to enable low-wage identified policies, initiatives, and business practic- women workers to improve management and es that support economic opportunities for women communication skills; and increase competitiveness for enterprises and MM Perception of women as being suited for only zones. The following programs represent good certain jobs and discriminatory hiring; and practices we identified in Costa Rica, which have MM Limited upward mobility for women at senior the potential to be replicated in other zones or en- management level, terprises in Costa Rica, as well as in zones or en- terprises in other countries. Many companies in Costa Rica require a univer- sity degree for upward mobility at a certain level (typically management and above). This type of re- Enablers for Female Workers’ quirement prohibits promotion of operators who Welfare and Advancement often have not finished high school. Many female workers in zones tend to be single working moth- Gender Certification Program ers, who, as many interviewees noted, have a sub- MM Enabler Type: Legal stantial need for education and advancement op- MM Who: National Institute for Women (IN- portunities. Even with a university degree, a few AMU) respondents said that there is still limited upward MM Where: National mobility for women at the senior management lev- MM Time frame: 2002–present (as of June 2011) 126 Fostering Women’s Economic Empowerment through Special Economic Zones MM Benefit to Women: Improved working condi- MM Benefit to business: Businesses will have ac- tions and relations as a result of companies track- cess to an educated workforce. ing performance against a national standard and striving to improve in order to be certified. Costa Rica’s free zone law and investment attrac- MM Benefit to business: Positive impact on repu- tion strategy include encouraging development tation from receiving certification, as well as of strategic priorities for Costa Rica, such as eco- on productivity, turnover, absenteeism, and re- nomic development in areas outside of the densely cruitment from improved performance. populated “Gran Metropolitan� (which includes the capital, San Jose, and neighboring towns such INAMU has a “System for Labor Certification as Alajuela and Heredia) by providing higher fi- on Gender Equity and Equality in Costa Rica,� a nancial incentives for investments outside the met- mechanism based on international norms to cer- ropolitan area and by requiring that companies in tify companies’ performance on gender equity in zones be either (a) located outside the metropoli- the workplace. The purpose is to gradually elimi- tan area or (b) in a strategic sector. This strategy nate the gender equity gap at work. This program should enable employment opportunities for rural has the potential to eliminate inequity and create women and high-quality, long-term jobs in strate- opportunities for women. gic sectors. Initiated in 2002, the certification program is a Currently, many of the zones in Costa Rica are management system. Currently, 5 companies are located outside San Jose, in former agricultural implementing the system and 10 more are interest- fields; therefore, the members of these communi- ed in starting in 2012. The phases of implementa- ties are often farm laborers who do not have the tion include training, issue diagnosis, establishment education or previous experience to work in the of a gender policy, and development of a plan of ac- zones. Some of these communities sometimes see tion. Participating companies must invest in these the zone and the corresponding development in phases, and INAMU serves as the certifying body. the area as a threat to their livelihoods. However, each zone has an initiative to integrate the com- One challenge that the program faces is becoming munity, which includes hiring local adults to do financially self-sustaining. To achieve this, partici- maintenance work on the buildings and grounds pating companies must fund the entire certification in the zone, investing in local schools to educate process. At present, companies pay a portion and the future local workforce to potentially work in INAMU pays the rest. Human resource capacity the zone, and providing services to elderly people. is also needed to continue to develop the model, Each company also has an initiative to try to em- as INAMU’s staff is only able to work part-time ploy local community members, by accepting a on the program. This is a result of spending cuts slightly lower level of education (no high school) by the Costa Rican government that are affecting for operators and by providing scholarships for staffing on this and other governmental programs. community members to get their high school equivalency degree. The positive impact for the company and the zone is a social license to operate Strategic Development in Rural and access to a workforce. Benefits to the commu- Communities nity members include increased access to jobs and MM Enabler Type: Legal, Social, Advancement educational opportunities. MM Who: Costa Rican government and a zone MM Where: National MM Benefit to women: Rural women will have ac- Zone-organized Private Transportation cess to employment and education opportuni- MM Enabler Type: Social ties. MM Who: Zone Costa Rica Case Study 127 MM Where: Alajuela, Costa Rica Government-sponsored Training MM Benefit to women: Access to safe, affordable, Program and faster transportation. Workers save time MM Enabler Type: Advancement by commuting on an express bus, and enjoy MM Who: Public-private partnership between gov- increased safety and convenience from being ernment’s National Learning Institute (INA), picked up in their community and arriving in- the Costa Rica Investment Promotion Agency side the zone. (CINDE), and enterprises in zones MM Benefit to business: The companies benefit MM Where: National from the increased punctuality of workers, the MM Benefit to women: Access to INA provides enhanced productivity of workers who are less free specialized technical training to workers in tired given the shorter and safer commute, zones and increases their skill level, which can higher levels of control and security within lead to opportunities for advancement. the zone as only private buses carrying zone MM Benefit to business: Free technical training for workers are allowed to enter the zone, and workers on the skills that businesses require, avoidance of liability as workers purchase the resulting in higher-skilled, more productive bus ticket as individuals and therefore are li- workers. able themselves. The Costa Rican government’s National Learn- Transportation is often a logistical and safety chal- ing Institute (INA) offers free specialized techni- lenge for workers who live in different communi- cal training to workers in zones. To identify the ties that are varying distances from the zone. Also, skills training desired by investors (enterprises), workers on different shifts do not always have CINDE facilitates a working group of companies access to public transportation. Moreover, public in free zones. The working-group participants are buses are often crowded and are not always safe. general managers and human resource managers As a solution, the zone administrator worked with who meet quarterly to communicate their con- companies to identify a bus route that meets the cerns and needs—including desired skills in the needs of the workers, and established a contract labor force—to INA in order to inform its cur- with a private bus company for a defined route at riculum. Additionally, some investors work di- established prices. Over time, the bus route has rectly in partnership with INA to design training been adapted to the changing needs and demands programs. of workers. As a result, companies have greater access to skilled Program costs are low, and most drivers obtain workers and are able to have policies to “promote the required government permit and pay a related from within.� At one company, a worker had been monthly fee of US$200. Many employees pur- there 8 years, working her way up from operator, chase their bus tickets, but increasingly tickets are to supervisor, to supervisor of the most complex subsidized by their companies. In the twelve years production line. that the service has been in operation, the number of workers using it has stayed consistent, and at The government also provides incentives to encour- present it moves a population of 6,000 workers to age companies to invest in training. For example, and from their jobs. the free trade zone law states that (a) a company in the free zone that trains small and medium enter- Although it has been very successful, the program prise (SME) suppliers receives a discount through faces some challenges related to competition from a fiscal credit, (b) INA offers free specialized tech- a small number of private transport providers that nical training and English courses to workers in corner the transportation market and control the free zones upon demand by companies, and (c) the prices. government commits to ensuring that universi- 128 Fostering Women’s Economic Empowerment through Special Economic Zones ties and technical institutes include curricula that ported educational opportunities by providing match the workforce needs of companies in free employees with a few hours of paid time off per zones. Additionally, some companies have internal week to continue their studies. 28 percent of em- training centers known as “company universities.� ployees were studying at the time the interview These incentives enable Costa Rica to use the ex- was conducted. isting infrastructure of universities, colleges, and technical training institutes. Finally, one electronics enterprise’s training model includes internal new-employee training and on- the-job production line training, as well as train- Enterprise Support for Training and ing and onsite coaching from the customer. The Advancement enterprise also recruits second-year university en- MM Enabler Type: Advancement gineering students and allows them to conduct an MM Who: Enterprises (various) internship with the company as an opportunity for MM Where: Zone and outside the students to develop on-the-job skills and for MM Benefit to women: Skills advancement and the enterprise to develop skilled workers to hire promotion upon graduation. MM Benefit to business: Higher-skilled workers who are more satisfied and dedicated Internship Program in Shared Services Provider Service and advanced manufacturing enterprises MM Enabler Type: Advancement in Costa Rica tend to be more advanced in pro- MM Who: Enterprise viding training and advancement opportunities for MM Where: Zone their workforce, including female workers. In ad- MM Benefit to women: Work experience, employ- dition to the examples in this section of internship ment, professional development programs and the government-sponsored training MM Benefit to business: Trained and dedicated full- program, other examples include enterprise-cus- time employees tomer training partnerships, and an enterprise- wide “Women’s Network.� A shared service provider multinational corpora- tion (MNC), like many other service companies For example, one enterprise has a policy that all in the zone, faced the challenge of a shortage of employees must participate in 40 hours of train- skilled, bilingual workers, and identified the need ing annually. Another enterprise has a “promote- to provide opportunities for students at low-in- from-within� corporate policy; a worker who had come public schools who had potential but lacked been there 8 years said she had worked her way previous work experience. The company partnered up from operator, to supervisor, to supervisor of with the Costa Rica Investment Promotion Agen- the most complex production line. One enterprise cy (CINDE) and a public high school to offer has a program “Career Force� for all workers that two-month placements for students in their last maps all the positions in the company’s Costa Ri- year of high school in one of the company’s four can operations, identifies different ways employees core business areas: call center/customer service, can reach their ideal position, and outlines courses IT, accounting, and secretaries. available to strengthen their skills. Additionally, one enterprise’s managers are responsible for hold- Although the program did not directly target female ing bimonthly career development meetings with students, over half of the participants were female: their staff. 19 (73 percent) in year 1 (2008) and 26 (59 percent) in year 2 (2009). The program provided the girls Another enterprise had strict requirements for with on-the-job experience and frequently resulted promotion tied to university degrees, but sup- in the offer of a full-time position in the company. Costa Rica Case Study 129 Company employees (including the former interns) benefit from this creation of high-quality employ- have access to free language courses (100 percent of ment. As per CINDE’s statistics, women represent tuition reimbursed) and, after 6, months free college 52 percent of the workforce in medical devices, 40 courses (100 percent of tuition reimbursed). percent in advanced manufacturing, and 48 per- cent in services. Enablers to Support Female Additionally, the zone law provides an extra in- Entrepreneurs centive for suppliers. If 40 percent of a supplier’s production is sold to companies in the zone, that Incentives to Source from Costa Rican supplier can benefit from the incentives provided Suppliers to companies located in the zone, even if it is not MM Enabler Type: Access located in the zone or designated as belonging to MM Who: Government a strategic sector. MM Where: National MM Benefit to women: The program to create link- Costa Rican companies have been successfully in- ages with national companies could be aimed tegrated into MNC supply chains. For example, an specifically at women’s businesses, which would electronics MNC worked with PROCOMER to provide them with increased growth opportu- identify potential suppliers, and grew its local sup- nities and access to skills development. plier base from 0 when it entered Costa Rica in MM Benefit to business: For MNCs, the stability 1996 to about 300 local suppliers in 2010. and reduced cost from access to raw materi- als and inputs from the national (Costa Rican) The key to increasing the impact of these oppor- market. For Costa Rican companies, increased tunities on women will be to encourage women’s revenue—for example, Costa Rican companies entrepreneurship so that some of these suppliers earned US$7.5 million in first purchase orders are women-owned businesses. from MNCs in 2009. The national program “Costa Rica Provee� (“Cos- BusinessWomen’s Program in the ta Rica Supplies�), initially funded by the Inter- Chamber of Commerce American Development Bank and now supported MM Enabler Type: Access, Training and Networks by the Foreign Trade Corporation of Costa Rica MM Who: Chamber of Commerce’s Program for (PROCOMER), encourages incorporation of the Development of Women Entrepreneurs Costa Rican companies into the supply chains of (“Programa para el Desarrollo de la Mujer Em- MNCs. As a part of Costa Rica Provee, a supply- presaria�) chain linkage study was conducted to identify the MM Where: National (based in San Jose), not cur- inputs and raw materials required by companies rently in zones in Costa Rican Free Zones. Study results were MM Time frame: 2009–present (as of 2011) compared to existing Costa Rican companies’ MM Benefit to women: Women entrepreneurs have products and services. A map was then created to access to a network of support, capacity build- identify Costa Rican companies that could serve ing, and contacts. the MNCs in the zones. One example referenced MM Benefit to business: Strong small businesses in interviews was that of Baxter Healthcare Cor- help stimulate the economy and act as suppli- poration. After Baxter established operations in a ers to large businesses in the zones. Costa Rican FTZ, many medical companies en- tered Costa Rican zones to service Baxter, creating In 2009, the Chamber of Commerce created the high-quality jobs, enabling technology transfer, Program for the Development of Women Entre- and attracting more MNCs. Many women will preneurs (“Programa para el Desarrollo de la Mu- 130 Fostering Women’s Economic Empowerment through Special Economic Zones jer Empresaria�). 34 Although not currently highly Costa Rica’s free zones. The following programs active in zones, the initiative supports female en- reflect areas where further innovation and program trepreneurs nationally. If this program is expanded development can address remaining challenges to to include entrepreneurship within the zones, it women’s economic empowerment in Costa Rica in could greatly impact the opportunity for women trade zones and beyond. entrepreneurs and innovation. The program builds on the credibility, resources, Innovations to Further Female and convening power of the chamber to specifically Workers’ Welfare and Advancement target the facilitation and creation of business ini- tiatives that support the development of women- Legal: Increase Women’s Participation in owned small businesses and incorporate women’s Unions voices into a largely male-dominated business com- Encouraging active participation of women munity and chamber. The objectives of the program workers in unions would be a good practice; include representing businesswomen, promoting however, unions appear to be prohibited, which is spaces for female entrepreneurs to develop their a violation of the ILO Core Convention on Free- businesses, establishing networks for women busi- dom of Association. There appear to be no unions ness leaders to create and strengthen their partici- in the free trade zones. According to Costa Ri- pation in the national market, and promoting the can government statistics from 2009, only 2.62 spirit of entrepreneurship among women. The pro- percent of women and 2.85 percent of men are gram’s activities include training, counseling, a Web members of unions. In addition to the total lack site with important information, an annual confer- of union presence in zones, few if any organiza- ence, and technical assistance and support to women tions engage women workers in zones, unlike in business owners. other countries. As part of the opportunities for women entrepre- Workers’ associations cannot replace unions in neurs, a distance learning course was offered to representing workers and bargaining collectively; women in the program in Costa Rica in partner- however, workers’ associations can play a different ship with the University of Monterrey in Mexico. role. A few companies in Costa Rica referenced Through this program, the women were assigned “Asociacion Solidarista,� a workers’ association local tutors and took courses in law, accounting, that functions like a credit union (investing and marketing, human resources, manufacturing, in- sharing earnings, providing loans) and organizes formation technology, and more. The first 10,000 initiatives such as “Back to School� fairs at which women received a diploma and graduated in the companies attend and offer products at a discount. summer of 2011 and will use the knowledge they For one company, the association has an exclusive gained to build their small businesses. contract with a private bus company to provide transportation for workers (with the cost shared 50/50 by the company and workers). Additionally, Remaining Challenges and women entrepreneurs can organize in cooperatives Opportunities for Innovation in or associations, which enable them to have better Costa Rica access to financing. While uncovering best practices, we have also identified major barriers and poor practices that af- Chamber of Commerce’s Programa para el Desarrollo 34 fect women trying to enter the workforce, achieve de la Mujer Empresaria http://www.mujerempresariacr. upward mobility, or start their own business in com/ Costa Rica Case Study 131 Legal: Labor Rights and Discrimination There is opportunity for zones to provide a shared Many rural women are not aware of their rights. child-care center for all zone workers. Enterprises Out of economic need, they often work overtime, could pay into the center so that their workers have but they are not always paid time and a half. Addi- the option of using it. This would improve the at- tionally, some stakeholders said that wage discrim- tractiveness of locating a business in the zone by ination persists, although some human resource reducing the financial burden on any one enterprise, managers noted that they have wage matrices while providing a valuable service to female workers based on competencies and not gender. in the zone, potentially reducing absenteeism and the likelihood that women will miss work because Despite legislation prohibiting discrimination at their child-care provider is unavailable or sick. the workplace, some interviewees said that dis- crimination against pregnant women and moth- ers persists. It is believed that many companies Social: Transportation and Infrastructure still give pregnancy tests as part of the hiring The limited public transportation and infrastructure process, even though it is illegal. As maternity (roads, bridges) between San Jose and zones on the leave is seen as a cost, some companies provide outskirts of the city is a barrier for women in San short-term contracts to women rather than full- Jose who want to work in the zones. Additionally, time positions. only one zone and a few companies facilitate private direct or express transportation for workers, and so As the Ministry of Labor and the National Insti- it can take workers a long time to travel to work. tute for Women (INAMU) have limited resources for monitoring conditions and violations against women’s rights and workers’ rights in the zones, it Social: Gender Data and Vision is difficult to measure and regulate these potential There is a lack of gender-disaggregated data on violations. workers in trade zones, such as the number of women at different levels and positions. There is no vision of gender incorporated into free zones, Social: Zone-level Child-care Provision except indirectly through the vision of developing Companies are not currently required by law to rural areas, which will benefit women. provide child care, and this study found a lack of access to affordable child care for most women. No Public and private zone authorities can work with zones or companies included in the sample provide the National Institute for Women and the Min- child-care facilities, which is particularly important istry of Labor’s Gender Unit to ensure that cor- as there are many women heads of household. rect and useful data are being collected on women working in zones. 132 Fostering Women’s Economic Empowerment through Special Economic Zones Resources: Key Gender Stakeholders in Costa Rica Organization Location Focus Area Centro Feminista de Informacion y Accion (CEFEMINA) San Jose NGO dedicated to improving quality of life and opportunities for women. Centro de Investigacion y Estudios de la Mujer (CIEM) San Jose Research center. de la Universidad de Costa Rica ILO Researcher (Maria José Chamorro) San Jose Studies on child care and women and work. Ministry of Labor’s Gender Unit San Jose Organizes campaigns, undertakes research on challenges that women workers face, National Institute for Women (INAMU) San Jose Activities around women and paid labor including the norm/gender certification program (SIGEG) and a new project with high-tech companies; addressing challenges that women workers face. Programa para el Desarrollo de la Mujer Empresaria, San Jose Women entrepreneurs and small business owners. Chamber of Commerce Rinfogam San Jose area Women and entrepreneurship and communication media. Social Security Gender Equality Department San Jose Internal gender policy funded by UNFPA, training, sexual discrimi- nation, mainstreaming gender in the Social Security Department Egypt Case Study: Fostering Women’s Economic Empowerment through Special Economic Zones T his case study examines the role special “enablers� for women’s economic participation in economic zones (SEZs) can play to cre- zones if they are addressed directly and effectively ate regulatory frameworks and initiatives through policies and programs at the government, that promote women’s economic participation as zone, and enterprise levels. As such, the study a way to boost trade zone competitiveness and presents numerous examples of good practices. In sustainable jobs. This case study supports a glob- addition to a small number of relevant replicable al research initiative to uncover good practices practices in zones, the study also finds useful ex- for women’s economic advancement within the amples outside of zones that could be replicated zones and define a practical approach to design, within zones. promote, and implement gender-inclusive SEZs across the globe. Findings are based on field re- The Arab Republic of Egypt (hereafter “Egypt�) search in eight countries, as well as a global lit- was selected for inclusion in the study because of erature review. its mature zone program, growing manufacturing sector and trade, and its reflection of the culture To support women’s improved economic partici- of the Middle East and North Africa (MENA) pation in zones, this study seeks to identify good- region. practice programs and policies that can be imple- mented by SEZs throughout the world to promote women’s advancement at three levels: Methodology MM Working conditions for female workers This case study is based on findings from a com- MM Opportunities for upward mobility bination of stakeholder organization interviews, MM Investment opportunities for female entrepre- enterprise site visits, and desk research. The pri- neurs mary research included twenty-one in-person or phone interviews with civil society, worker orga- In doing so, the study identifies key legal and regu- nizations, government, and private-sector stake- latory issues, social and cultural constraints, lack holders (including factory managers) in May and of support services, and investment-climate issues July 2010. This case is also informed by 3 factory affecting women as the main obstacles to decent visits in Cairo, Mubark Industrial City, and Port working conditions, upward mobility, and invest- Said. Primary research was supplemented by docu- ment opportunities within SEZs. The study argues mentation received during the fieldwork and desk that these obstacles can also be used positively as research. 134 Fostering Women’s Economic Empowerment through Special Economic Zones Stakeholder Type Number Objective of Engagement Civil Society 9 Determine challenges facing Egyptian women at work and at home, and learn about programs and poli- cies seeking to address those challenges. Female Entrepreneurs 2 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/own- ing a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Worker Organizations 1 Identify labor-rights issues unique to women, challenges to their resolution, and recommendations for the private sector. Government 4 Identify government’s priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Private Sector 5 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or potential future programs or policies. Zone Programs in Egypt separate law (Special Economic Zone Law No. 83 of 2002) and is being developed in partner- Egypt’s zone program was established in the 1970s, ship with the government of Tianjian, China.2 and the country was among the first to establish MM In 2007, the Egyptian government introduced zones in the MENA region. Key characteristics of a new zone regime, moving away from “free the program are described below: zones� to “investment zones,� which do not offer tax and customs incentives. Each invest- MM There are 119 zones in Egypt, including 68 ment zone is run by a multistakeholder group public zones in governorates, 16 in new cities, of government, private-sector, and GAFI rep- 27 heavy-industry zones, 6 free zones, and 1 resentatives. Some have said this management SEZ. In addition, enterprises can earn quali- structure has made it more difficult for the fied industrial zone (QIZ) status if more than private sector to invest; thus, IFC is working 11 percent of inputs come from Israel and 100 with GAFI and the Egyptian government to percent of production is exported to the United streamline the process.3 States.1 MM Migrant labor in zones, and throughout Egypt MM Free zones were the primary focus of our study. in general, cannot exceed 10 percent of a fac- Businesses operating within free zones must tory’s employee base. export 50 percent of their total production, and MM Key industries operating in zones include the in return receive incentives from the General garment, textile, electronics manufacturing, IT Authority for Investment (GAFI), including a services, food processing, printing, and chemi- lifetime exemption from all taxes, customs, and cals industries. import/export regulations, and the option to MM There is no restriction on the types of enter- sell a portion of production domestically if cus- prises that can operate in zones. However, small tom duties are paid. Free zones can be publicly businesses do not typically operate in zones. or privately owned, and nearly all (if not all) are publicly owned at this time. The study included visits to two zones in Egypt: MM Investment Law No. 8 of 1997 and Compa- Port Said Free Zone and Nasr City Free Zone, nies Law No. 159 of 1981 identify GAFI as the government body responsible for zone projects, 1 Interview: Ashraf Dowidar, Internal Trade Develop- and state that labor law in zones is consistent ment Authority, May 4, 2010. with national labor law. Egypt’s one operation- 2 http://www.gafinet.org al SEZ is the only zone that operates under 3 IFC Egypt Egypt Case Study 135 and a meeting with GAFI, the zone authority, to neurship is an area of opportunity where women gain a better understanding of the zone program face unique challenges. in Egypt. There were no zone-wide programs spe- cifically targeted at women in either of the zones. This case study sought to identify key barriers and However, GAFI officials at both zones acknowl- enablers within zones that impact women’s fair edged that the zone is a large employer of women, employment, advancement opportunities, and en- and many of the enterprises operating within the trepreneurial investment opportunities across eight zone preferred to hire women because of their sta- countries. The study found several common factors bility and demeanor. Additional zone information across countries that can act as obstacles to or en- is summarized in Table 1. ablers of women’s economic empowerment. Poli- cies, initiatives, and business practices can become enablers to spur women’s economic participation. Obstacles to Women’s Economic Participation in Egypt Women’s entry into the workforce, their welfare, and retention or dropout rates are affected by a variety A country’s legal framework and cultural norms of factors. For the Egypt Case Study, key themes play a significant role in determining women’s are explored around the following categories. economic opportunities and fair employment. In addition, key issues such as education, health, and MM Female Workers’ Welfare and Advancement living conditions impact women’s ability to excel XXLegal Policies and Enforcement: Interna- and advance in the workplace. Finally, entrepre- tional and local laws, and their enforcement, TABLE 1  ■  Zone Profiles Port Said Free Zone Nasr City Free Zone Industries Operating in Zone • 90% of enterprises are in the textile industry, in- • Textile is the largest industry in the zone cluding 6 of the top 10 garment exporters in Egypt • Other industries represented include • Other industries represented include electronics, electronics, software, food processing, and food processing, and storage printing Factories Operating in Zone • 100 total • 132 total • 0 small or medium enterprises in the zones • 0 small or medium enterprises in the zones Enterprise Owners • 1 woman-owned enterprise • 0 woman-owned enterprise • Many foreign owners Workers Employed in Zone • 35,000 Female Workers Employed in Zone • More than 50% of total workers • More than 50% of total workers Migrant Workers Employed in Zone • Less than 10% • Less than 10% Wages and Benefits • Higher wages in zone than outside (US$600 vs. US$300–400 / month) Amenities Provided by the Zone • Post office • Post office • Tax / customs office • Tax / customs office • ATMs • ATMs • Worker training (in partnership with the Egyptian • Worker training (in partnership with the Ministry of Manpower) Egyptian Ministry of Manpower) Dormitories • None • None Note: Where data is not reported it is not available. 136 Fostering Women’s Economic Empowerment through Special Economic Zones pertaining to female employees. Women of- Female Workers’ Welfare and ten lack access to employment opportunities Advancement in the formal sector, and require additional protections as employees, such as maternity Legal Policies and Enforcement leave and child care. The primary law affecting workers in Egypt is the XX Social and Cultural Challenges: Cultural Labor Law (No. 12 of 2003), and Egypt has rati- norms dictate women’s home responsibilities fied all eight ILO Core Conventions. Ratification and can impact women’s economic partici- of international laws and domestic laws (at the pation, and social factors including educa- national and zone levels) affecting women in the tion, health, child care, and living conditions workplace are summarized in Tables 2 and 3 below. can impact women’s ability to work and ex- cel at work. Egyptian Labor Law No. 12 of 2003 is the key MM Women’s Entrepreneurship: legal framework that affects women in the work- XX Policies and Access: Female entrepreneurs place—both inside and outside zones. Women often lack access to capital and land. have benefited from several advancements under XX Support Networks and Training: Female the new law, including an increase in paid mater- entrepreneurs need training on business nity leave from 50 days to 90 days, and an increase skills, management, and market identifi- in the amount of unpaid leave women can take cation, and would benefit from building for child care from one year to two years. Addi- networks among other entrepreneurs and tional laws affecting women in the workplace are within key sectors. summarized in Table 3. This study has also identified replicable good While the law intends to address forms of dis- practices in Egypt, which are outlined in the sec- crimination against women, women still face sig- tion “Good-Practice Enablers of Women’s Eco- nificant challenges. Chief among them are a lack nomic Empowerment in Egypt� that follows on of enforcement of the law in the workplace and page 8. employer efforts to circumvent the law. For exam- ple, employers have been known to hire no more than 99 women at a facility in order to avoid the child-care law, and the child-care law is not en- TABLE 2  ■  Ratification of ILO Core Conventions ILO Convention Ratified or Not 29 Forced Labor Ratified 87 Freedom of Association and Protection of the Right to Organize Ratified 98 Right to Organize and Collective Bargaining Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) With Reservations Egypt Case Study 137 TABLE 3  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities Law Law Description National or Zone Maternity Leave (Article 91 of Employers are required to provide 90-day paid maternity leave for women who Both Labor Law) have served 10 months with the same employer. Such leave is available twice throughout a woman’s period of service. Breastfeeding Leave (Article 93 of Employers are required to provide two paid, 30-minute nursing breaks each day Both Labor Law) for two years after the birth of a child, in addition to normal paid breaks. Child Care in Workplace (Article Establishments that employ at least 100 female workers at one location are Both 94 of Labor Law) required to establish or assign daycare facilities. Nondiscrimination Based on Preg- Employers are prohibited from gender-based wage discrimination, and the Both nancy or Marital Status (Articles dismissal of women while out on maternity leave. 35, 88, and 92 of Labor Law) forced unless women ask the employer to make Egypt’s population of 80 million lives in Cairo, child care available.4 Alexandria, the Nile delta, along the Nile, or along the Suez Canal.6 It is a mainly urbanized Women’s rights have expanded in the past de- population (42.8 percent7), as much of the coun- cade. Legal prohibitions preventing women’s try is desert. The small population living in rural equal access to and representation in the judi- areas continues to decrease as people move to cit- ciary have been lifted, and social taboos that have ies in search of employment. restricted their access to certain professions have been broken.5 In 2008, laws were passed to al- Egyptian industry includes food processing, tex- low women to become judges for the first time tiles, chemicals, and light manufacturing, and its in the country’s history, and set a minimum rep- primary exports are petroleum, clothing and tex- resentation of women in parliament. In addition, tiles, cotton, fruits and vegetables, and manufac- amendments to child law included increasing the tured goods.8 GDP per capita is around US$5,500, minimum age of marriage to 18. While this is a and GDP has been growing approximately 5 positive trend for women, gender discrimination percent per year since 2005.9 Total 2009 exports remains prevalent throughout Egyptian society. This illustrates the need for extensive awareness- raising in communities to challenge societal prac- tices that run counter to laws protecting women’s 4 Interview: Ashraf Dowidar, Internal Trade Develop- equality and empowerment. Without awareness- ment Authority, May 4, 2010. 5 Sanja Kelly and Julia Breslin, eds., Women’s Rights in the raising, women-friendly laws are not likely to be Middle East and North Africa: Egypt, New York, NY: translated into greater support and protection of Freedom House; Lanham, MD: Rowman & Littlefield, women. 2010. (http://freedomhouse.org/template.cfm?page=3 84&key=253&parent=24&report=86). 6 U.S. Department of State, 2010 Background Note: Social and Cultural Challenges Egypt (http://www.state.gov/r/pa/ei/bgn/5309.htm) 7 Human Development Report, 2009 (2010 data) Egypt is located in the Middle East and North 8 U.S. Department of State, 2010 Background Note: Africa (MENA) region, bordering Israel, Libya, Egypt, 2009 estimate (http://www.state.gov/r/pa/ei/ and Sudan. It is the most populous country in bgn/5309.htm) the Arab world, and the second-most-populous 9 U.S. Department of State, 2010 Background Note: country on the African continent. Nearly all of Egypt (http://www.state.gov/r/pa/ei/bgn/5309.htm) 138 Fostering Women’s Economic Empowerment through Special Economic Zones were US$25.2 billion,10 with the following major Employment trading partners (as measured by a percentage of Despite gradual increases in women’s participa- exports): Italy (10.3 percent), India (6.3 percent), tion in the workforce, women represent a notable and Netherlands (5.7 percent).11 minority. In 2008, women’s labor force participa- tion was 24.3 percent.14 Female unemployment Egypt ranked 81st out of 134 countries in the rates are also trending positively, dropping from World Economic Forum’s 2008 Global Competi- 24.3 percent in 2004 to 18.6 percent in 2007. Key tiveness Index, reflecting a drop of four places from barriers to women’s participation in the workforce 2007. The low ranking was largely due to macro- include cultural norms and family duties, lack of economic instability, including high government skills, lack of child care, and poor health. debt, double-digit inflation, and high budget defi- cits. In addition, Egypt’s labor-market efficiency Women’s percentage of the workforce in free was ranked last among the countries evaluated.12 zones, however, is much higher than national rates. With higher minimum wages than other coun- In both zones, women constituted a majority of tries in the food processing and textile industries, the workers. Factory management claimed to pre- Egypt struggles to be cost competitive. Techno- fer female workers because of their stability, de- logical readiness and investment in education are meanor, and attention to detail. perceived as critical to Egypt’s economic develop- ment and global competitiveness. Health Cultural norms may inhibit women’s ability to Egypt is classified as having “Medium Human make decisions about their health. Women pri- Development,� ranking of 123rd out of 182 coun- oritize the health of their family over their own tries in UNDP’s Human Development Report health. Class is the primary factor in determining 2009—the third-lowest ranking among the a woman’s access to health care, and lower-income countries studied in this global research initia- families will tend to direct their limited resourc- tive. In addition, Egypt is rated third lowest for es toward children and men.15 Societal rules also gender-related development and gender empow- prevent women from discussing their health and erment. Key social and economic indicators are learning best practices from others.16 summarized in Table 4, which is followed by contextual information, including the perceived challenges and barriers to greater gender empow- 10 U.S. Department of State, 2010 Background Note: Egypt (http://www.state.gov/r/pa/ei/bgn/5309.htm) erment. 11 UN Statistics Division, World Statistics Pocketbook, 2007. (http://data.un.org/CountryProfile.aspx?crName= Education Egypt) Primary and secondary education rates have in- 12 World Economic Forum, “Global Competitiveness creased in recent years; the combined gross en- Report 2008–2009.� (http://www.gafinet.org/English/ rollment rate was 76.4 percent in 2007. While Publications/GlobalCompeti.Repor2008-2009pdf.pdf ) 13 Interview: Elizabeth Kalifa, Institute of International education is free to Egyptians through university Education, May 3, 2010 and required until age 15, required testing is said 14 UN Statistics Division, World Statistics Pocketbook, to prevent students from low-income families 2008, (http://data.un.org/CountryProfile.aspx?crName= from passing higher education entrance exams Egypt) 15 Sanja Kelly and Julia Breslin, eds., Women’s Rights in because they cannot afford tutors and assistance with studying.13 Literacy is notably lower among the Middle East and North Africa: Egypt; Lanham, MD: Rowman & Littlefield, 2010. (http://freedomhouse. women than men (roughly a 3:4 ratio). Many org/template.cfm?page=384&key=253&parent=24&re employers provide on-the-job training for line port=86) workers, but up-skilling (e.g., management skills 16 Interview: Dr. Mervat Nessiem, Center for Develop- training) is rare. ment Services, May 2, 2010. Egypt Case Study 139 TABLE 4  ■  Socioeconomic Indicators: Egypt Total Adult Female Ratio: Female Indicator Population Population to Male % Population living on less than US$1.25, US$2 per day < 2%, 18.4% Education (combined primary, secondary, tertiary) 76.4% Literacy (for ages 15+) 66.4% 57.8% 0.77 Labor Force Participation 24.3% Unemployment 8.9% 18.6 3.1 Earned Income (PPP USD annually) 2,286 0.27 Major Religions Primary Muslim (90%) Other Coptic Christian (9%), other Christian (1%) Gender Measures Gender-Related Development Index (GDI) Not available Gender Empowerment Measure (GEM) 0.287, Rank 107/109 ranked countries Women-Held Seats in Parliament, Women in Government at Ministerial Level 4%, 6% Female Legislators, Senior Officials, Managers 11% Female Professional and Technical Workers 32% Women with Unmet Family Planning Needs 10.3% Births Attended by Skilled Health Professional 74% Maternal Mortality Rate (per 100,000 live births) 130 Source: UNDP Human Development Report, UN Statistics Division, World Statistics Pocketbook, Sanja Kelly and Julia Breslin, eds., U.S. Department of State, DHS, Note: Where data is not reported it is not available. HERproject, a health education initiative target- MM Female genital mutilation (FGM): FGM re- ing female factory workers in Asia and North mains a very common practice in Egypt though Africa, has identified the following health issues it became officially illegal in 2007. Women sur- affecting female factory workers in Egypt: veyed in HERproject factories had differing views on FGM, with between 32 and 67 percent MM Anemia: HERproject surveys found that 67 arguing that FGM was a necessary practice. percent of 390 female workers surveyed cur- MM Occupational health: Neck and back aches, rently had or had previously had anemia and eye strains, and headaches are commonly oc- 20 percent currently had or had previously had curring problems for workers because of long intestinal worms during their lifetime. working hours either sitting or standing at MM Family planning and sexually transmitted in- work stations. fections (STIs): Female workers in HERpro- MM Menstrual hygiene: 91 to 93 percent of wom- ject factories stated that they knew at least one en surveyed reported using sanitary napkins, family planning method, but between 5 and but 51 percent of workers in one factory also 13 percent had never heard of condoms. STI said they had missed work because of painful knowledge was predominantly limited to HIV/ menstruation. AIDS. 140 Fostering Women’s Economic Empowerment through Special Economic Zones MM Personal hygiene: HERproject surveys found promoted. In Egyptian culture, both Christian and that female workers tended to have poor per- Muslim women are expected to be home by early sonal hygiene, because of irregular bathing evening to care for the family, and there is a lack of practices, unwashed hands, and the sharing of training courses accessible during daytime hours.20 bottles, cups, and cutlery during meals. Women are expected to miss work to care for a MM Postnatal care: Most young women in Egypt sick child, and repeated absenteeism is a barrier to have very low awareness about the importance promotion and advancement in the workplace. of breastfeeding. One serious consequence of this is malnutrition; most irreversible damage from malnutrition occurs during gestation and Women’s Entrepreneurship in the first 24 months of the baby’s life.17 Opportunities Women’s economic empowerment through en- Housing trepreneurship opportunities in zones depends on Given that much of Egypt is desert, the majority (1) policies and access and (2) support networks of Egyptians live in high-density urban areas near and training. their place of employment. Most working women with children leave their children with family or In Egypt, this study found that women were un- friends near their home. A small portion will bring derrepresented among business owners and entre- children to a company-sponsored child-care cen- preneurs. Only 18 percent of small and medium- ter, if a center is provided. The provision of worker sized enterprises are owned by women.21 dormitories is not a common practice because of the importance of the home in Egyptian culture Although some legal support for female entrepre- and the low proportion of migrant labor (which neurs exists, Egypt lacks a strong culture of entre- must be less than 10 percent by law). preneurship, particularly among women. A lack of confidence and empowerment, as well as women’s Religion and Culture societal roles, prevent them from taking the risk of Egypt is a predominantly Muslim country, and re- starting a business. Other barriers include lack of ligion plays a large role in Egyptian society and knowledge on how to run a business and excessive culture. Islamic law has an influence on national bureaucracy in registering a business. laws, particularly civil law and family law. Some- times conservative interpretations of Islamic law can create challenges for women. For example, Policies and Access under Islamic personal status law, men have the In Egypt, women have their own financial rights right to divorce at will by telling their wives three and property ownership rights. The main access times that they are divorced and registering the barriers are logistical challenges, mainly red tape announcement at a religious notary office. Wom- and government bureaucracy, and corruption. Cul- en, on the other hand, are required to petition the turally, it is very uncommon for a woman to be in- court and seek a fault-based or no-fault divorce, wherein they must either prove that the husband exhibited one of four recognized “faults� (such as 17 HERproject, “Female Factory Workers’ Health Needs physical abuse) or waive their rights to alimony.18 Assessment: Egypt�, BSR, 2010. 18 Interview: New Woman Foundation, May 6, 2010 Islamic law can be interpreted to excuse domestic 19 Human Rights Watch, Divorced from Justice violence by permitting the disciplining of disobe- 20 Interview: Elizabeth Kalifa, Institute of International dient women.19 Islamic law and cultural norms en- Education, May 3, 2010 courage women to prioritize their family responsi- 21 Interview: Dr. Maha ElShinnawy, American University bilities. This can pose a challenge to a woman who of Cairo / Goldman Sachs Women’s Entrepreneurship wants to join the workforce, develop skills, and be and Leadership Program, May 3, 2010. Egypt Case Study 141 volved in bribery, and women feel uncomfortable potential to be replicated in other zones in Egypt, with this often-necessary component of starting as well as in zones in other countries. and running a business. Though not unique to women, one challenge from Enablers for Female Worker Welfare a finance perspective is the prohibition within and Advancement Islamic law against taking out a loan. This often leads women to borrow capital from a male mem- Women’s Health Education ber of their family, such as a father or brother, to MM Enabler Type: Social & Cultural start a business. Awareness and training on this is- MM Who: Center for Development Services, BSR, sue, as well as targeted financial services products Extending Service Delivery Project (USAID), that are compliant with Sharia, can help address 2 garment factories this challenge. MM Where: Factories in and around Cairo, Port Said, and Alexandria MM Time frame: 2009–2011 Support Networks and Training MM Cost: US $8,000 / factory for health education Interviewees noted that even if a woman has a 22 program; return-on-investment study carries good idea for a business, she doesn’t know where additional costs to start. The majority of female entrepreneurs lack MM Benefit to women: Improved health, decreased accounting knowledge, information and commu- absenteeism (potentially removing a barrier to nication technologies training, and awareness of promotion), decreased medical costs marketing strategies and dissemination. Women MM Benefit to business: Decreased health-related also often lack customer service training or an absenteeism, decreased turnover, increased pro- understanding of how to build and manage a ductivity, and improved worker-management customer database. Women in the handicraft or relations. clothing manufacturing business also can struggle to meet product-quality expectations for markets HERproject was launched to address low levels external to Egypt. Finally, women are also often of health awareness among female factory work- unlikely to take the risks necessary to get a busi- ers23 as well as to demonstrate the benefits to busi- ness started. nesses of factory-based health programs.24 It was implemented in three garment factories in Egypt Targeted training programs and mentoring net- over the period 2009–2011. The model included works may help women build and expand their identifying peer educators in each factory, deliver- businesses. See “Enablers to Support Female En- ing monthly training sessions to the peer educa- trepreneurs� on page 9 in the following section for tors on women’s health topics, and then encourag- an example. ing the peer educators to spread their learning to peers and be available to counsel female workers while at work. Good Practice Enablers of Women’s Economic Empowerment in Egypt Through fieldwork and other research, the study 22 Interviews, American University in Cairo Women’s identified policies, initiatives, and business practic- Entrepreneurship and Leadership Program, May 2010; AWTAD and Vital Voices, July 2010. es that support economic opportunities for women 23 BSR, Women’s General & Reproductive Health in Global and increase competitiveness for enterprises and Supply Chains, October 2006. zones. The following programs were among the 24 ESD, “Effects of a workplace health program on absen- best practices identified in Egypt, which have the teeism, turnover, and worker attitudes�, 2007. 142 Fostering Women’s Economic Empowerment through Special Economic Zones Factories in zones are a rare location where wom- A key factor in the program’s success was the focus en are away from their home and together in large on factory nurses’ involvement, development, and groups, creating a critical opportunity to offer leadership. Nurses’ roles and performance expec- peer-based learning.25 By starting with general tations were also expanded in some factories, to training and discussion on life skills, factory par- include counseling and factory-based presence— ticipants have grown comfortable talking about their role was made more proactive and focused on additional issues that are taboo in Egypt, such as preventative care, rather than reactive and focused reproductive health and family planning. As one on basic treatment for accidents and emergencies. factory worker said, the program has “broken the silence.�26 At completion, the program was found This program has the potential to be rolled out to to have improved women’s health knowledge on factories operating in zones around the world. It is key topics including family planning, menstrual currently being successfully implemented in more hygiene, pre- and postnatal care, and sexually than seventy factories in Bangladesh, China, India, transmitted infections and blood-borne diseas- Mexico, Pakistan, and Vietnam.27 es. Health behavior and attitudes also improved with regard to hygiene, nutrition, a healthy life- style, and female genital mutilation. By investing Government-Sponsored Worker Training in women’s health education, the participating Program factories have also benefited and increased their MM Enabler Type: Professional Advancement competitiveness. Specific business benefits in- MM Who: Ministry of Manpower clude: MM Where: Throughout Egypt MM Benefit to women: Increased employability MM Reduced health-related absenteeism: One fac- and potential for promotion. tory saw a reduction from 13.5 to 9.5 percent, MM Benefit to business: Higher-skilled workforce, the other from 15 to 10 percent; which enables promotion from within and in- MM Reduced requests for early leave, particularly creases employee loyalty, reducing costs associ- for reasons related to menstrual pain; ated with hiring and turnover. MM Increased employee loyalty, especially among women workers: One factory saw a 5+ percent The Egyptian government’s Ministry of Manpow- difference between the turnover rates of wom- er offers a subsidized skills-training program for en and men at the end of the project; factories. Factories apply and pay 20 percent of the MM Improved productivity; training costs, while the ministry pays 80 percent MM Improved worker-management relations; and provides an onsite trainer.28 Workers who par- MM Improved worker concentration; and ticipate in the program have developed managerial MM Increased leadership and communication skills skills and increased their chances of being pro- among workers. moted. In turn, this enables factories to promote from within, extending workers’ tenure rather than Challenges encountered during the program in- hiring from the outside. cluded limitations on time for training within the factory, mostly tied to production peaks; resis- tance from some factory managers; turnover of key 25 Interview: Dr. Mervat Nessiem, Center for Develop- program staff such as peer educators, nurses, and ment Services, May 2, 2010. 26 Focus group of HERproject peer educators, Lotus Gar- HERproject trainers; and cultural challenges in ment Factory, May 5, 2010. addressing sensitive women’s health topics. Chal- 27 Unpublished data, BSR, ESD, and Center for Devel- lenges were addressed throughout the project us- opment Services. Forthcoming study, 2011. ing collaboration, training for new team members 28 Interview: Ashraf Dowidar, Internal Trade Develop- and peer educators. ment Authority, May 4, 2010. Egypt Case Study 143 Enablers to Support Female MM Benefit to women: Knowledge of how to start Entrepreneurs or grow a business; increased business expertise and management skills, which increase overall Community-Based Skills Training employability MM Enabler Type: Training & Networks MM Benefit to business: Job creation and econom- MM Who: Center for Development Services (CDS) ic development; reduced unemployment. MM Where: Rural communities throughout Egypt MM Benefit to women: Increased employability Recognizing the economic and social benefit of and knowledge of how to start a business developing more women entrepreneurs in Egypt, MM Benefit to business: Job creation and econom- the American University of Cairo and the Univer- ic development in the community; reduced un- sity of Pennsylvania developed the Women’s En- employment trepreneurship and Leadership Program. Funded as part of the Goldman Sachs 10,000 Women Recognizing the large population of unemployed initiative, the Women’s Entrepreneurship and young women in rural communities, CDS saw an Leadership Program is a program committed to opportunity to take advantage of these women’s growing and developing female entrepreneurs in free time by engaging them in community-based the Arab region. The program was founded based initiatives. Many of the women, however, lacked on the recognition that women’s participation in the project-management skills to start or run a the workforce is critical to economic development, community program. Thus, CDS developed Tech- and entrepreneurial ventures are an effective way nology Resource Centers—a central, safe place for of creating job opportunities. women in rural communities to access informa- tion, attend training programs on project manage- One hundred women are selected each year for a ment and other business skills, and participate in scholarship to attend a five-week certificate pro- community projects focused on a range of issues. gram in entrepreneurship at the American Uni- versity of Cairo. As part of the program, they at- Centers have been implemented in 8 communi- tend classes and participate in activities focused ties in Egypt. While the program was founded on personal leadership development, work-life to keep unemployed women busy and engaged balance, negotiation skills, management, finance in their community, the Centers discovered that and accounting, competitive strategy, operations, participating women were very interested in skills marketing, and the legal aspects of starting a busi- training to improve their overall employability ness. This provides the fundamental skills and and help them get jobs. Anecdotal feedback from knowledge necessary to start, grow, and sustain a women using the Centers has indicated that the business. Centers have enabled women to enter the work- force for the first time, and built skills for women The program also covers all costs of tuition, instruc- to start their own ventures, such child-care cen- tion, and accommodation. Results of the program’s ters, tutoring programs, and other profitable com- first year include an increase in women’s business munity services. expertise and management skills. These skills can be translated to starting their own business ven- ture, while also making them more marketable in Women’s Entrepreneurship and the broader workforce. Leadership Program MM Enabler Type: Training & Networks MM Who: American University of Cairo, Univer- sity of Pennsylvania MM Where: Cairo, Egypt 144 Fostering Women’s Economic Empowerment through Special Economic Zones Remaining Challenges and to address this barrier by providing a shared child- Opportunities for Innovation in care center for all workers in a zone. Enterprises Egypt could pay into the center to provide their workers the option of using the center. This would improve While uncovering best practices, the study also the attractiveness of locating a business in the zone identified major barriers and poor practices that by reducing the financial burden on any one fac- affect women’s ability to enter the workforce, tory, while ensuring that all factories operating in achieve upward mobility, or start their own busi- the zone are in compliance with Egyptian law. All ness in Egypt’s free zones. The following programs women working in the zone would have a reli- reflect opportunities for further innovation and able child-care resource, potentially reducing their program development. absenteeism and their likelihood of missing work because of their child-care provider being unavail- able or sick. Innovations to Further Female Workers’ Welfare and Advancement Innovations to Promote Female Advancement: Zone-coordinated Entrepreneurship Training While there are several training resources available Access: Streamlined Process for Starting to workers, skill development remains a key bar- a Business rier to women’s upward mobility. Factory owners Zones can make it easier for women to bypass the claim to not like investing in training because once red tape and bureaucracy associated with start- workers are trained in management, they are more ing a business in a zone. As Egypt has moved likely to leave the factory for better-paying work. toward “investment zones,� the process for start- A way to overcome this dilemma is to ensure that ing a business in a zone has grown more complex training is generally more widespread across facto- because more parties are involved. Zones have an ries, making it less appealing for workers to switch opportunity to partner with organizations like factories post-training. To promote training, zones IFC to offer a streamlined process. In addition, can facilitate and coordinate enterprise participa- zones have the opportunity to partner with pro- tion in the Ministry of Manpower’s subsidized grams focused on women’s entrepreneurship and training program, offering more regular training skills development (e.g., CDS’s Technology Re- sessions to workers in the zone. As a result, more source Centers and the Goldman Sachs 10,000 enterprises would realize the benefits of a more Women Entrepreneurship Leadership center) to skilled workforce, with a lower risk of turnover. connect women’s development of skills with op- portunities to start their business in a zone. This has the benefit of both increasing women’s partic- Social: Zone-sponsored Child-care ipation in the workforce and bringing additional Center business to zones. Child care remains a barrier to women’s ability to stay in the workforce. Zones have the opportunity Egypt Case Study 145 Resources: Key Gender Stakeholders in Egypt Organization Location Focus Area American Chamber of Commerce Women’s Commission Cairo Women’s employment Association for Women’s Total Advancement and Development Cairo Women’s entrepreneurship, mentoring program Ayoun Foundation Cairo Women’s rights, workers’ rights, labor relations Centre for Development Services / Near East Foundation Cairo Women’s health awareness, women’s leadership and skill development, anti-trafficking Center for Egyptian Women’s Legal Assistance (CEWLA) Cairo Women’s rights, workers’ rights, labor relations Endeavor Egypt Cairo Women’s entrepreneurship Family Health International Cairo Health awareness among vulnerable populations Goldman Sachs 10,000 Women Entrepreneurship and Leadership Center Cairo Women’s entrepreneurship Institute for International Education Cairo Education and training Nahdet Elmaroussa (Egyptian Renaissance) Cairo Women’s entrepreneurship New Women Foundation (NWF) Cairo Women’s health, economic / legal protection of women, women’s rights Vital Voices Global Partnership Cairo Women’s entrepreneurship El Salvador Case Study: Fostering Women’s Economic Empowerment through Special Economic Zones T his study examines the role of special eco- zones if they are addressed directly and effectively nomic zones (SEZs) in promoting wom- through policies and programs at the government, en’s economic empowerment and creating zone, and enterprise levels. As such, the study sustainable jobs as a way to boost zones’ competi- presents numerous examples of good practices. In tiveness. The case study supports a global research addition to a small number of relevant replicable initiative to uncover good practices for women’s practices in zones, the study also finds useful ex- economic advancement within the zones and amples outside of zones that could be replicated define a practical approach to design, promote, within zones. and implement gender-inclusive SEZs across the globe. Findings are based on field research The Republic of El Salvador (hereafter El Salva- in eight countries, as well as a global literature dor) was selected for inclusion in the study be- review. cause of its mature zone program that has been in existence for over 30 years, the growing im- To support women’s improved economic partici- portance of zones for manufacturing and services pation in zones, this study seeks to identify good- exports, and the large percentage of women em- practice programs and policies that can be imple- ployed. mented by SEZs throughout the world to promote women’s advancement at three levels: Methodology MM Working conditions for female workers MM Opportunities for upward mobility This case study is based on findings from a com- MM Investment opportunities for female entrepre- bination of stakeholder organization interviews, neurs enterprise site visits, and desk research. The pri- mary research included twenty-four in-person In doing so, the study identifies key legal and regu- interviews with twenty-three organizations in El latory issues, social and cultural constraints, lack Salvador in May and June 2010. The researchers of support services, and investment-climate issues visited and spoke with zone developers and opera- affecting women as the main obstacles to decent tors of two free trade zones (FTZs) and factory working conditions, upward mobility, and invest- management at four factories located within these ment opportunities within SEZs. The study argues zones. Primary research was supplemented by doc- that these obstacles can also be used positively as umentation and desk research conducted on zones “enablers� for women’s economic participation in in El Salvador. 148 Fostering Women’s Economic Empowerment through Special Economic Zones Stakeholder Type Number Objective of Engagement Civil Society 7 Determine challenges facing Salvadoran women at work and at home, and learn about programs and policies seeking to address those challenges. Female Entrepreneur 1 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/owning a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Workers’ Organizations 2 Identify labor rights issues unique to women, challenges to their resolution, and recommendations for the private sector. Government 7 Identify government’s priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Private Sector 7 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or potential future programs or policies. Zone Programs in El Salvador Natural Resources monitors environmental compliance. El Salvador’s zone program was established in the MM The labor law within zones is the same as na- 1970s. Although zones have existed in the country tional labor law. There are some restrictions on for over 30 years, prior to 1990 there was only one the types of companies that can operate within zone and it was public. There was strong growth FTZs, with the International Services Law in public zones in the 1990s, but the last ten years creating the more restrictive of the two types have posed challenges to zone growth for various of programs. Companies are permitted to sell reasons—including the events of September 11, a portion of their production domestically but 2001, the end of the Multi-Fibre Agreement in are required to pay import duties, value-added 2005, and the economic crisis of 2008. tax, and income tax on the operations related to that production. Key characteristics of the zone programs include MM Current benefits under both programs include the following: complete exemption from both import and export duties and tax on revenue. However, MM There are 17 zones in El Salvador—16 pri- the World Trade Organization (WTO) has vate zones and one public zone—of which recently ruled that the tax exemptions on rev- 14 are primarily industrial, and about 200 enue under the Free Trade Zone and Active single-factory “Deposits for Active Improve- Perfection Law are an explicit export subsidy ment� (see below for more details). There are and has ordered El Salvador to make changes two types of zone programs, one falling under by 2015. This ruling currently does not apply to the Free Trade Zone and Deposits for Ac- the International Services Law. The ruling has tive Improvements Law and one under the created significant confusion in the country, International Services Law. The zone author- where many believe that the WTO is requiring ity—or regulator—for both zone programs is El Salvador to eliminate FTZs altogether. the Ministry of Economy, while the Ministry MM Zones represent about 200 companies, and an of Treasury is responsible for monitoring the estimated 96,000 employees, or about 3 percent fiscal regime within zones. Other ministries of the country’s labor force. Textiles and light monitor company operations within zones manufacturing are by far the most prevalent just as they do outside of zones—for example, industries in FTZs. Other industries include the Ministry of Labor monitors labor compli- electronics, automotive parts, and services. Lo- ance and the Ministry of Environment and gistics, business process outsourcing (BPO), El Salvador Case Study 149 and call centers are fast-growing industries un- Two zones were visited in El Salvador for the der the International Services Law. study: American Industrial Park (AIP) and Ex- MM Under the “Deposits for Active Improvement� port Salva. Both zones contracted with at least component of the free trade zone law, some one gynecologist to work in their health clinic, enterprises are allowed to operate physically and AIP also provided a pediatric clinic in ad- outside of FTZs while still falling under the dition to the general clinic. There were no oth- free trade zone legal regime. This component er zone-wide programs specifically targeted at of the law is highly controversial within El women. Additional zone information is summa- Salvador. Although it allows smaller, primar- rized in Table 1. ily local export-oriented companies to enjoy the same benefits as the larger, primarily in- ternational companies operating within zones, Obstacles to Women’s Economic it is also much more difficult to monitor their Participation in El Salvador practices given their geographic dispersion. Most stakeholders interviewed agree that la- A country’s legal framework and cultural norms bor violations are the most common—and play a significant role in determining women’s egregious—in the companies operating out- economic opportunities and fair employment. In side of the FTZs. addition, key issues such as education, health, and MM It is important to note that “maquila� is techni- living conditions impact women’s ability to excel cally a term for a factory-style export manufac- and advance in the workplace. Finally, entrepre- turer; however, it is widely used in El Salvador neurship is an area of opportunity where women to describe any type of factory setting. This fact face unique challenges. makes it difficult to distinguish between spe- cific challenges and practices within and out- This study sought to identify key barriers and side of free trade zones. However, it is generally enablers within zones that impact women’s fair agreed that practices inside of zones tend to be employment, advancement opportunities, and better than those outside of zones. entrepreneurial investment opportunities across TABLE 1  ■  Zone Profiles American Industrial Park Export Salva Industries Operating in Zone • Textiles and light manufacturing are largest • Textiles and light manufacturing are largest industries industries • Other industries represented include distribu- • Other industries represented include logistics tion centers, BPOs, and screen printing and BPOs Factories Operating in Zone • 19 • 15 Workers Employed in Zone • 8,700 • 7,700 Female Workers Employed in Zone • 72% • Manufacturing: 69% • Services: 37% Migrant Workers Employed in Zone • Almost 100% Salvadoran • Almost 100% Salvadoran Amenities Provided by the Zone • Health clinic with gynecologist and ambulance • Health clinic with gynecologist and ambulance • Pediatric clinic • Canteens/cafeterias • Recreational facilities • Recreational facilities • Tax / customs office • Customs office • ATM • ATM Dormitories • None • None 150 Fostering Women’s Economic Empowerment through Special Economic Zones eight countries. The study found several common Female Worker Welfare and factors across countries that can act as obstacles Advancement to or enablers of women’s economic empower- ment. Policies, initiatives, and business practices Legal Policies and Enforcement can become enablers to spur women’s economic El Salvador is a republic led by a president who acts participation. as both chief of state and head of government. The legislative branch is led by the unicameral Legisla- Women’s entry into the workforce, their welfare, tive Assembly and the judicial branch is led by a and retention or dropout rates are affected by a supreme court. The primary law affecting workers variety of factors. For the El Salvador Case Study, in El Salvador is the “Codigo de Trabajo,� or La- key themes are explored around the following cat- bor Code. The country has ratified all eight ILO egories. Core Conventions, although there is debate as to how successful it has been in bringing its legisla- MM Female Workers’ Welfare and Advancement tion in line with those conventions. Tables 2 and 3 XX Legal Policies and Enforcement: Interna- summarize a few illustrative conventions and laws tional and local laws pertaining to female currently in place that affect women. employees and their enforcement. Women often lack access to employment opportu- El Salvador is still grappling with the aftermath nities in the formal sector, and require ad- of a violent recent history: 50 years of authoritar- ditional protections as employees, such as ian control followed by a 12-year civil war, which maternity leave and child care. officially ended in 1992 with the signing of the XX Social and Cultural Challenges: Cultural Chapultepec Peace Accords. In June of 2009 Mau- norms dictate women’s home responsi- ricio Funes of the left-wing FMLN political party bilities and can impact women’s economic won the presidency, ending decades of right-wing participation, and social factors including rule including 20 years of rule by the right-wing education, health, child care, and living con- ARENA party. Although the election was signifi- ditions can impact women’s ability to work cant for El Salvador, it remains to be seen if the and excel at work. change in political parties will have a lasting impact XX Professional Advancement: Advancement on the Salvadoran people, or women in particular. opportunities for women are tied to educa- tion and skills development, and are also in- As compared to other developing countries, Sal- fluenced by social and cultural factors. vadoran women have enjoyed rights relatively MM Women’s Entrepreneurship: equal to those of men. Most barriers to women XX Policies and Access: Female entrepreneurs are based in economics, culture, or violence as op- often lack access to capital and land. posed to the law. Women’s participation in both XX Support Networks and Training: Female business and government is considerably high as entrepreneurs need training on business compared to some peer countries—although this skills, management, and market identifi- tends to be limited to the highest class. The pov- cation, and would benefit from network erty and extreme violence plaguing El Salvador building among other entrepreneurs and pose a significant challenge to women’s empow- within key sectors. erment and advancement for all other population segments, especially the poor and less educated. El This study has also identified replicable good prac- Salvador will need to focus on reducing violence tices in El Salvador, which are outlined in the sec- and increasing access to education and skills de- tion “Good-Practice Enablers of Women’s Eco- velopment in order to make significant advances nomic Empowerment in El Salvador� that follows in development—in terms of both economics and on page 7. gender. El Salvador Case Study 151 TABLE 2  ■  Ratification of ILO Core Conventions ILO Convention Ratified or Not 29 Forced Labor Ratified 87 Freedom of Association and Protection of the Right to Organize Ratified 98 Right to Organize and Collective Bargaining Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) With Reservations TABLE 3  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities Law Law Description National or Zone Maternity Leave (Article 309 of Women are entitled to at least 12 weeks of paid leave (six of which must be taken Both Labor Law) directly after birth) at 75% of salary. Breastfeeding Leave (Article 312 Women are entitled to up to one paid hour for breastfeeding, which can be broken Both of Labor Law) up into two half-hour breaks if mother prefers. Child Care in Workplace (Article Unclear. The constitution says that the laws will regulate a company’s responsibility Both 42 of Constitution) to provide child-care facility, but labor law does not discuss. Nondiscrimination Based on Prohibits any type of distinction, exclusion, or preference based on sex, both in Both Pregnancy or Marital Status employment and in union participation. Prohibits gender-based wage discrimina- (Articles 30, 123, 204, and 415 tion. Exceptions to this must be described in labor law and current exception is that of the Labor Law; Article 38 of pregnant women are prohibited from participating in any work that would endanger Constitution) them or their child. Social and Cultural Challenges in 2007, and the GDP annual real growth rate in El Salvador is located in Central America, bor- 2009 was—3.5 percent.4 Total 2008 exports were dering Guatemala and Honduras. It is the third- about US$4.6 billion,5 with the following major most-populous country in Central America. The trading partners (by percentage of exports): the estimated population of El Salvador in July 2010 was 6,052,064.1 About 1.6 million people live in the capital city of San Salvador, while an estimated 1 The CIA World Factbook, Country Comparison: Pop- 37.3 percent live in rural areas.2 ulation, (https://www.cia.gov/library/publications/the- world-factbook/rankorder/2119rank.html) Industries in El Salvador include textiles and ap- 2 U.S. Department of State, 2010 Background Note: El parel, food processing, medicine, chemicals, petro- Salvador (http://www.state.gov/r/pa/ei/bgn/2033.htm) 3 U.S. Department of State, 2010 Background Note: El leum products, electronics, and call centers. Its pri- Salvador (http://www.state.gov/r/pa/ei/bgn/2033.htm) mary exports are textiles and apparel, ethyl alcohol, 4 U.S. Department of State, 2010 Background Note: El coffee, sugar, medicines, iron and steel products, Salvador (http://www.state.gov/r/pa/ei/bgn/2033.htm) tuna, light manufacturing, and paper products.3 5 U.S. Department of State, 2010 Background Note: El GDP per capita (PPP) was estimated at US$5,842 Salvador (http://www.state.gov/r/pa/ei/bgn/2033.htm) 152 Fostering Women’s Economic Empowerment through Special Economic Zones United States (48.1 percent), Guatemala (13.6 men’s—is likely driven by a large number of women percent), and Honduras (13.0 percent).6 who are not actively seeking employment. El Salvador ranked 79th out of 134 countries in the Women in El Salvador continue to earn less than World Economic Forum’s 2008 Global Competi- men, and this gap increases as education levels in- tiveness Index.7 The low ranking was largely due to crease. For example, in 2006, while women with very poor rankings of 100th on institutions—pri- 1–3 years of schooling earned 6 percent less than marily driven by excessive crime and the associated their male counterparts, women with 13 or more business costs—and 118th on innovation. Areas of years of schooling earned 24 percent less than their competitive advantage include infrastructure, goods male counterparts.11 market efficiency, and labor market efficiency—al- though in the labor category women’s participa- There is a strong culture of entrepreneurship among tion is markedly low compared to other countries, Salvadoran women, with almost 40 percent of firms at 95th. The country’s 2008 ranking reflects a drop having female participation in ownership.12 How- of 12 places from 2007, due mostly to significant ever, the vast majority of women-owned businesses declines in intellectual property protection, fair are limited to the informal sector—especially in dealing by the government, policy-making trans- rural areas—as women seek ways of earning money parency, and ethical behavior by companies. without impacting their household duties. In many cases, poor women employed by the formal sector El Salvador is classified as having “Medium Hu- supplement their income through entrepreneurial man Development,� with a ranking of 106 out of activities in the informal sector. 182 countries in UNDP’s Human Development Report 2009—the fifth-highest ranking among Education the countries studied in this global research ini- Primary and secondary education rates are almost tiative. In addition, El Salvador is rated 89th for equal for men and women, with the combined gender-related development and 70th for gender gross enrollment rate in 2007 being just under 75 empowerment. Key social and economic indica- tors are summarized in Table 4, which is followed by contextual information, including the perceived challenges and barriers to greater gender empow- 6 UN Statistics Division, World Statistics Pocketbook, erment. 2008, (http://data.un.org/CountryProfile.aspx?crName= El Salvador) 7 World Economic Forum, “Global Competitiveness Employment Report 2008–2009�, (http://www.weforum.org/docu- Although the trend is improving, women remain ments/GCR0809/index.html) remarkably underrepresented in the workforce. In 8 UN Statistics Division, World Statistics Pocketbook, 2008, women’s labor force participation was only 2008, (http://data.un.org/CountryProfile.aspx?crName= 44.5 percent.8 This fact is significant since gender El Salvador) 9 Interviews, various, June 2010 equity in El Salvador is relatively high as compared 10 BSR Interviews in El Salvador, May 2010; Perman, to other developing countries. In interviews with Sarah et al, “Behind the Brand Names: Working con- local stakeholders, the study found that key barriers ditions and labour rights in export processing zones�, to women’s participation in the workforce include International Confederation of Free Trade Unions, De- violence, family duties, lack of skills, lack of edu- cember 2004. 11 USAID/DevTech Systems, “Gender Assessement, US- cation (especially in rural areas), and lack of child AID/El Salvador (http://www.usaid.gov/our_work/ care.9 Pregnancy testing of female hiring candidates cross-cutting_programs/wid/resources/El_Salvador. is a relatively common form of discrimination.10 html) The unemployment rate for females was 4 percent, 12 Enterprise Surveys (http://www.enterprisesurveys.org/ although this low rate—especially as compared to ExploreEconomies/?economyid=62&year=2006) El Salvador Case Study 153 TABLE 4  ■  Socioeconomic Indicators: El Salvador Total Adult Female Ratio: Female Indicator Population Population to Male % of population living on less than US$1.25, US$2 per day 11%, 20.5% Education (combined primary, secondary, tertiary) 74% 74.8% 1.02 Literacy (for ages 15+) 82% 79.7% 0.94 Labor force participation 59.8% 44.5% 0.59 Unemployment 6.4% 4.0% 0.44 Earned income (PPP US$ annually) 5,842 3,675 0.46 Major Religions Primary Roman Catholic (57%) Other Protestant Gender Measures Gender-related development index (GDI) 0.740, rank: 89/155 ranked countries Gender empowerment measure (GEM) 0.539, Rank 70/109 ranked countries Women-held seats in parliament, women in government at ministerial level 19%, 39% Female legislators, senior officials, managers 29% Female professional and technical workers 48% Women with unmet family planning needs 8.9% Births attended by skilled health professional 92% Maternal mortality rate (per 100,000 live births) 170 Source: UNDP Human Development Report, UN Statistics Division, World Statistics Pocketbook, The World Bank Group. U.S. Department of State, DHS. percent for women and just over 73 percent for the leap between the lower and upper levels (e.g., men. Literacy is only slightly lower among women from supervisor to manager). than men. There is a large differential in education between urban and rural areas; average number of Health years enrolled in school drops from 7 in urban ar- Access to health care in El Salvador has seen sig- eas to 3.9 in rural areas. It is also significant that nificant improvement in the past decade, leading in rural areas, girls are much more likely to leave to better health indicators. However, maternal school in order to support a household.13 and infant mortality rates remain moderately high and fluctuate considerably between years. Despite Some employers provide on-the-job training for advances in promoting sexual and reproductive line workers, but up-skilling (e.g., supervisor or health, many women in El Salvador—especially in management skills training) is rare. There are mo- rural areas—feel uncomfortable discussing these bility opportunities, though limited, within both issues. The macho culture and extreme violence lower levels (e.g., line worker to supervisor) and upper levels of employment (e.g., from human 13 USAID/DevTech Systems, “Gender Assessement, US- resources support to human resources manager). AID/El Salvador (http://www.usaid.gov/our_work/cross- However, a significant challenge remains making cutting_programs/wid/resources/El_Salvador.html) 154 Fostering Women’s Economic Empowerment through Special Economic Zones against women, including femicide and rape, also the formal sector, but opportunities to continue stifle advances in sexual and reproductive empow- advancing or acquiring skills are limited in entry- erment. HIV/AIDS is quickly becoming a gender level factory positions. Some of the companies issue, as the rate of infection of women is increas- interviewed had clearly defined indicators for ing much more rapidly than that of men. advancement, communicated those expectations to workers, and provided support to help work- Housing ers with potential gain the skills needed. However, The population is split roughly evenly between while there is mobility from worker to supervi- rural and urban areas, although the trend is shift- sor positions and from manager upward, there ing toward urbanization as Salvadorans seek em- remains a clear barrier to moving from the super- ployment. The majority of free trade zones are lo- visor to the manager level. These challenges tend cated outside of urban areas in strategic locations to be the same for men and women, although in intended to attract rural populations to low-skill certain factories where women dominate at the jobs. This allows many workers to remain close to worker level, this dynamic can limit their upward their extended families and community but also mobility. implies daily commutes. El Salvador’s extreme violence is often played out in public transporta- tion vehicles, which creates a higher risk for com- Entrepreneurship Opportunities muting workers, especially women. Most working Opportunities for female entrepreneurs in zones mothers leave their children with family or friends depend on (1) policies and access and (2) support at or near their home. networks and training. Religion and Culture El Salvador is a predominantly Christian coun- Policies and Access try—about 57 percent of the population is Catho- In El Salvador women have independent financial lic and the majority of the remaining 43 percent rights and property ownership rights. The main ac- is Protestant. While these religions do not overtly cess barrier for both male and female entrepreneurs limit women’s participation in society, the domi- is financing. Banks require proof of property own- nance of Catholicism throughout postconquest ership or a co-signer as a guarantee for loans, and history has contributed to an underlying culture many Salvadorans find both requirements difficult of machismo. In terms of gender, this most often to fulfill. However, women feel a greater impact plays out in the areas of family planning and re- from this policy since they are less likely to own productive health, and household responsibilities. property and less likely to ask others to co-sign a Contraception can be a controversial subject and loan. Alternatives for accessing capital—such as women’s sexual and reproductive rights are rarely microfinance programs targeting women—can discussed—especially in rural areas. Women are help address this challenge. expected to take care of the family, which for single mothers and women in poor families provides an extra burden as they are expected to both complete Support Networks and Training household duties and provide economic income. While there is a strong entrepreneurial spirit among Salvadoran women, there is a clear dis- tinction between high-income and low-income Professional Advancement women in their tendency to take risks and pursue Opportunities innovative ideas. Many workers in FTZs in El Salvador are from rural areas and have little education or technical Low-income female entrepreneurs tend to remain skills. FTZs often offer women their first job in in the informal sector and replicate the entrepre- El Salvador Case Study 155 neurial activities of others. Two interviewees14 not- productive health education, which can have signif- ed that self-esteem plays a large role in this trend. icant repercussions when women begin working in Women in rural and poorer areas lack strong fe- FTZs if they aren’t empowered to make informed male role models that can encourage them to value decisions. Health issues are one of the most com- themselves and to look inward for strength and monly cited reasons for absenteeism and turnover. courage rather than relying on others—particular- ly men—for validation and support. These women Both zones visited have clinics with at least one also lack access to training on basic business skills gynecologist, and American Industrial Park has a and legal requirements, which could give them separate pediatric clinic. Both zones have strong more confidence to expand their activities and preventative initiatives—including nutritional move into the formal sector. campaigns, other health education campaigns, and health fairs. One garment factory offers in- factory health services in addition to those pro- Good-Practice Enablers of Women’s vided at the zone clinic and a “Future Mother’s Economic Empowerment in El Club� that offers prenatal and postnatal training Salvador and support. The factory also conducts investi- gations into health-related issues that are driv- Through fieldwork and other research, the study ing absenteeism and uses the results to shape identified policies, initiatives, and business practic- the content of health training programs and/or es that support economic opportunities for women health fairs. and increase competitiveness for enterprises and zones. The following programs were among the Poor single mothers often make personal sacrifices best practices identified in El Salvador, which have for their families; the most commonly identified the potential to be replicated in other zones in El practice is for women to skip meals. Although Salvador, as well as in other countries. beneficial in the short term, in the long run this is detrimental to the women, their families, and the companies for which they work. All factories vis- Enablers for Female Workers’ ited provide subsidized meals to prevent women Welfare and Advancement from skipping meals in order to save money for their families. Additionally, once a month, Fruit of Women’s Health Services the Loom offers a 50 percent subsidy to its workers MM Enabler Type: Social for a “basic goods basket�, and the Export Salva MM Who: Zones: American Industrial Park and zone provides a “basic goods basket� twice a month Export Salva; 1 Garment Factory to its maintenance workers. MM Where: American Industrial Park and Export Salva Zones MM Benefit to women: (1) Improved reproductive Financial Literacy Training and personal health; (2) reduced risk of death MM Enabler Type: Social during childbirth; (3) improved family health MM Who: Zones: American Industrial Park and and nutrition Export Salva; Companies: 2 Garment factories, MM Benefit to business: (1) Reduced absenteeism 1 Textile and garment factory and turnover; (2) increased productivity and MM Where: American Industrial Park and Export product quality Salva Zones El Salvador has high maternal and infant mortality rates. Rural populations (where most FTZ workers 14 Interviews, EMPREPA, May 2010; Chamber of Com- originate) have poor access to nutritional and re- merce Women’s Committee, May 2010. 156 Fostering Women’s Economic Empowerment through Special Economic Zones MM Benefit to women: (1) More money to provide MM Benefit to business: (1) More stable produc- to their family; (2) empowerment through im- tion and reduced absenteeism: workers arrive proved financial skills. at the same time and miss less work); (2) less MM Benefit to business: More financially stable downtime, especially given the propensity of employees are less distracted and worried, public transportation workers to go on strike; leading to increased productivity and product (3) increased income: less expenditure on taxes quality. and benefits(in comparison to the alternative of using the money to pay workers more) Most stakeholders identified poor financial plan- ning and management as a significant challenge El Salvador remains a very violent country, and for FTZ workers, especially women. In addition this includes violence against women. Most stake- to the need for better basic financial management holders referred to the high levels of violence as a (e.g., of savings, expenses, and emergency funds), threat to women workers when they travel to and credit card debt is fast becoming an issue. Al- from work, particularly after dark. though access to credit is sometimes unavailable to women entrepreneurs, the booming credit card Benefits for women workers include more reliable market has been detrimental to families’ financial and safer transportation and more net income to well-being. Stakeholders, including many compa- provide for their families. Benefits for the company nies and zones, identified credit card debt as a key include less money spent on taxes and benefits (as- issue—with problems ranging from workers not suming the alternative would be to give employees understanding that they must repay their expenses a transportation stipend as part of their salary) and to poor decision making. punctual shift changes, which result in more reli- able production. Both garment factories offer financial literacy training to help their workers better manage their income and avoid or reduce credit card debt. Policy and Training to Promote Upward One garment factory works with the Economía Mobility Familiar program of the Central Reserve Bank. MM Enabler Type: Advancement League Central America plans to use a co-op MM Who: 1 Elastics factory, 1 Garment factory, 1 structure to improve workers’ economic situation Textile and garment factory and financial literacy, educating them about sav- MM Where: American Industrial Park and Export ings and loans and then on getting workers out Salva of credit card debt. MM Benefit to women: (1) Additional and/or in- creased skills; (2) opportunity for advancement within or outside of company; (3) potential for Free Transportation higher income. MM Enabler Type: Social MM Benefit to business: More loyal, satisfied, and MM Who: Textile and garment factory skilled workforce leads to higher productivity MM Where: Export Salva Zone and improved product quality. MM Benefit to women: (1) Reduced risk of vio- lence; (2) more reliable transportation means All three factories visited have “promote-from- more stable time with family; (3) more salary within� policies. One garment factory has clear retained: some workers pay up to 1/3 of their criteria for operators or line workers to be con- daily salary in transportation; (4) less money sidered for promotion to supervisors. If workers spent on taxes (in comparison to the alterna- meet these criteria, they can enroll in a company tive of increased salary to cover transportation training course, and, if they pass this course, they expenses) will be considered when a supervisor position El Salvador Case Study 157 opens. The elastics factory also has a clear evalu- to the degree that NGOs have overtaken unions ation and promotion process that includes men- as the most important and influential promoters toring, which has allowed employees to move of worker rights. It is also important to note that from floor worker to supervisor. The elastics fac- there are no unions within trade zones, aside from tory also offers various training programs and ed- the National Trade Union Federation of Salvador- ucational scholarships for higher-level positions. an Workers (Federación Nacional Sindical de Tra- One textile and garment factory has several for- bajadores Salvadoreños, FENASTRAS)—which mer line workers who moved into quality control is widely regarded as being a company-backed, and training areas. “fake� union. Mobility from the supervisor to the manager level When asked what expectations they have for busi- remains a key challenge. Based on stakeholder in- ness, most non-private-sector stakeholders stated terviews, the study found that successful mobility first and foremost that they expect companies to programs include both simply comply with the labor law. A formal, zone- level social dialogue forum would help ensure 1. Clearly explained performance indicators so compliance by creating a more robust conversation workers know what they need to do to reach between sectors and would also respond to stake- the next level and holder perceptions that 2. Formal training and mentoring so they have the ability and resources to gain the relevant MM Unions need training in how to more effectively skills. represent workers’ interests, including women’s issues MM Companies need to engage with civil society Remaining Challenges and (either voluntarily or by requirement) Opportunities for Innovation in El MM Government needs to more effectively monitor Salvador labor practices MM Both companies and unions need guidance While uncovering best practices, the study has on how to more effectively interact with each also identified major barriers and poor practices other that affect women trying to enter the workforce, achieve upward mobility, or start their own busi- In the context of gender, it is also important to ness in El Salvador’s free zones. The following pro- note that Salvadoran unions continue to be domi- grams reflect opportunities for further innovation nated by a macho culture, such that women’s issues and program development. are notably lacking from the union agenda. An in- teresting result of the lack of unions in FTZs is that unions have had to look to alternative ways Innovations to Further Female of reaching FTZ workers, and women’s organiza- Workers’ Welfare and Advancement tions have been a key ally. Through partnerships with these organizations, unions are advancing— Legal: Zone-based Social Dialogue at least to some extent—in incorporating women’s Forums issues into their agendas. Women’s organizations Every non-private-sector stakeholder interviewed have also been at least moderately successful in en- highlighted the lack of dialogue between compa- gaging with business. Therefore, it is essential to nies and civil society as one of the biggest chal- include women’s organizations in the proposed so- lenges affecting Salvadoran workers, including cial dialogue forums—both to help bridge the gap women. The tumultuous history between compa- between companies and unions and to ensure the nies and unions permeates labor relations today— inclusion of gender in the discussion. 158 Fostering Women’s Economic Empowerment through Special Economic Zones Legal: Improved Regulation and extreme levels of violence and gang activity. Most Monitoring of Contracted Domestic stakeholders expressed concern that children who Workers stay at home without a parental figure are much Current laws allow companies to subcontract pro- more likely to join gangs as an “alternative� family. duction to workers operating out of their homes— the majority of whom are women. While some Although they are required by law, the study did stakeholders argue that women prefer this type not find any zones or companies that provided of employment because it gives them more flex- child-care facilities. All companies interviewed ibility and allows them to take better care of their identified the need to take care of children as household and family duties, it also creates signifi- the single most common driver of absenteeism cant risk. Stakeholders allege that companies only and turnover for women. They agreed that child- do this to avoid payment of benefits (e.g., social care centers are an important need but were not security and pension) and other legally mandated sure as to the best structure for providing them. responsibilities to workers. Since such a system is Several studies have been conducted—including difficult to monitor, it can easily lead to poor work- by some of the stakeholders interviewed—and ing conditions and excessive production goals with it is unclear whether women would actually use pay below minimum wage. child-care centers in zones given (1) the cost and safety of public transportation; (2) the distance Given that this type of law creates both great op- from their home, particularly during rainy sea- portunity and risk for women workers, the use of son; and (3) the cultural norm of having a rela- domestic contractors needs to be closely regulated tive or neighbor—rather than a stranger—watch and monitored. To the extent that this type of sub- one’s child. contracting is used by companies operating under free trade zone regimes, there needs to be some Some stakeholders agreed that the most viable so- kind of mechanism—financial or otherwise—that lution is community-based centers created as pub- allows the Ministry of Labor to more effectively lic-private partnerships. The private sector would monitor the labor conditions. fund the centers, NGOs or other community or- ganizations would run them, and the government would regulate them and monitor their practices. Social: Community Child-care Centers Although this type of center would not respond Child care is a significant issue for FTZs. One-third to the issue of women being unaccustomed to of Salvadoran women are single mothers who are using a caregiver who is not a relative or neigh- the head of household. The need to leave the house bor, interviewees agreed that this is a cultural is- to earn an income to support their children creates sue that would change over time. Salvadoran law significant challenges to raising healthy, happy, and would need to be changed to recognize these types productive future citizens—productiveness being of child-care centers as alternatives to company- particularly important in El Salvador, given the based centers. El Salvador Case Study 159 Resources: Key Gender Stakeholders in El Salvador Organization Location Focus Area EMPREPA San Salvador Work-life balance Salvadoran Institute for Women’s Development (ISDEMU) San Salvador Women’s rights, labor rights, public policy Organization of Salvadoran Women for Peace (ORMUSA) San Salvador Gender equity, violence against women, women’s rights, access to justice National Coordinating Committee of Salvadoran Women San Salvador Women’s health, women’s rights, women’s entrepreneurship (CONAMUS) Women Transforming (Mujeres Transformando) San Salvador Women’s rights, labor rights, education and training, access to justice Female Entrepreneurs Committee, Chamber of Commerce San Salvador Women’s entrepreneurship and Industry Committee of Women Union Members of El Salvador, San Salvador Women’s rights, labor rights, education and training, labor FEASIES conditions Salvadoran Foundation for Social and Economic Develop- San Salvador Entrepreneurship, education and training ment (FUSADES) Human Rights Institute, University of Central America San Salvador Women’s rights, labor rights, labor conditions “José Simeón Cañas� National Foundation for Development (FUNDE) San Salvador Women’s rights, women’s entrepreneurship, public policy Independent Monitoring Group of El Salvador (GMIES) San Salvador Women’s rights, labor conditions, labor rights National Committee of Women Cooperative Members San Salvador Women’s entrepreneurship, education and training (CNMC) Honorable Women: Association of Women for Dignity and San Salvador Women’s health, access to justice, women’s rights, labor rights Life (Las Dignas) Bridges Network (Red Puentes) San Salvador Women’s rights, labor rights, multisector dialogue Jordan Case Study: Fostering Women’s Economic Empowerment through Special Economic Zones T his case study examines the role special “enablers� for women’s economic participation in economic zones (SEZs) can play to cre- zones if they are addressed directly and effectively ate regulatory frameworks and initiatives through policies and programs at the government, that promote women’s economic participation as zone, and enterprise levels. As such, the study a way to boost trade zone competitiveness and presents numerous examples of good practices. In sustainable jobs. This case study supports a global addition to a small number of relevant replicable research initiative to uncover good practices for practices in zones, the study also finds useful ex- women’s economic advancement within the zones amples outside of zones that could be replicated and define a practical approach to design, promote, within zones. and implement gender-inclusive SEZs across the globe. Findings are based on field research in eight This case study focuses on the Hashemite King- countries, as well as a global literature review. dom of Jordan (hereafter Jordan). To support women’s improved economic partici- pation in zones, this study seeks to identify good- Methodology practice programs and policies that can be imple- mented by SEZs throughout the world to promote This case study is based on findings from a combi- women’s advancement at three levels: nation of stakeholder organization interviews, en- terprise site visits, and desk research. The primary MM Working conditions for female workers research included twenty in-person and two phone MM Opportunities for upward mobility interviews with twenty-four individuals, conduct- MM Investment opportunities for female entrepre- ed in March and April 2010. These included inter- neurs views with the general managers at three factories in zones: Al Hassan Industrial Estate (Irbid), Al In doing so, the study identifies key legal and regu- Dulayl Private Industrial Park (near Zarka), and latory issues, social and cultural constraints, lack a satellite factory in Shauna, as well as interviews of support services, and investment-climate issues with representatives from two of the five zone affecting women as the main obstacles to decent programs in Jordan: (1) Jordan Industrial Estates working conditions, upward mobility, and invest- Corporation ( JIEC) headquarters and Al Hassan ment opportunities within SEZs. The study argues Industrial Estate staff, and (2) Al Tajamouat, a pri- that these obstacles can also be used positively as vate industrial city. 162 Fostering Women’s Economic Empowerment through Special Economic Zones Stakeholder Type Number Objective of Engagement Civil Society 5 Determine challenges facing Jordanian women at work and at home, and learn about programs and policies seeking to address those challenges. Female Entrepreneurs 2 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/owning a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Workers’ Organizations 1 Identify labor rights issues unique to women, challenges to their resolution, and recommendations for the private sector. Government 6 Identify government’s priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Private Sector 8 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or potential future programs or policies. Zone Programs in Jordan creating, regulating, and monitoring the devel- opment zones in Jordan. The body in charge of Jordan currently has four zone regimes or pro- the zone is the Development Zone Commis- grams: sion (DZC), which is in the process of devel- oping its regulations. 1. Public and Private Industrial Estates: Public industrial estates are operated under the Jordan The study included visits to two zones, Al Has- Industrial Estates Corporation ( JIEC). JIEC san Industrial Estate and Al Dulayl Private In- currently operates five industrial estates, in- dustrial Park, and a meeting with a representative cluding Al-Hassan, as well as Abdullah II, Al- from Al Tajamouat. Al-Hassan Industrial Estate Hussein bin Abdullah II, Aqaba International was established in 1991 and designated the world’s Industrial Estate, and Ma’an Industrial Estate. first qualifying industrial zone (QIZ) in 1998; as of 2009, Al-Hassan had 98 companies, 1,300 Similar to public industrial estates, private in- workers, total investment of JD 183 million, and dustrial estates do not have separate regulations US$292 million in exports. In 2000, Al Tajamouat or laws, and are regulated by the Ministry of Industrial City in was designated by the U.S. gov- Labor in accordance with the National Labor ernment a QIZ; Al Tajamouat is the largest QIZ Law. Private industrial estates, such as Al Du- in all aspects—employment, exports, number of layl and Al Tajamouat, are privately developed, factories, and foreign direct investment (FDI).1 owned, and operated. 2. Jordanian Free Zone, established in 1976 per Legislation regulates the creation of zone regimes, temporary law No. 39, is a financially and ad- such as the Jordanian Industrial Estates Corpo- ministratively independent public corporation ration Law (1985)2 and the Development Zones managed by a board of directors that is chaired Law (2008). Except for ASEZ, “zone regimes� by the minister of finance. The body in charge of the zone is the Jordanian Free Zone Cor- poration. 1 Specialized Investment Compounds Co PLC. Compa- 3. Aqaba Special Economic Zone (ASEZ) is a ny Profile: Executive Summary of Specialized Investment partially autonomous area surrounding the city Compounds Co. Plc. Accessed at http://www.altajam- ouat.com/. of Aqaba. 2 No. (59) For the Year 1985 and its Amendments. http:// 4. Development Zone, established in 2008, is a www.jiec.com/JIEC/resources/docs/JIECInternal- Jordanian governmental entity responsible for Law_En.pdf. Jordan Case Study 163 regulations for working conditions fall under the ever, 75 percent of both male and female workers Ministry of Labor in accordance with the National in these zones are foreign contract workers, pre- Labor Law. For example, the interviewee from Al dominantly from Bangladesh, China, India, and Sri Tajamouat said that Al Tajamouat does not have Lanka. laws other than the national law. ASEZ has an independent regulatory authority, Aqaba SEZ The Jordanian government has invested in zones Authority (ASEZA) and has separate regulation, as one of its efforts to increase women’s access to such as provisions for foreign workers under ASE- employment. For example, governmental programs ZA’s “Labor and Residency Regulation.�3 How- provide meals and transportation to zones for rural ever, ASEZA’s regulations for working conditions women, as well as outreach activities in villages ex- are consistent with the National Labor Law. plaining to parents how the program works and the potential benefits. The government is also involved In 1996, in an effort to support the peace pro- in the Satellite Factory program (see below in the cess, the U.S. Congress created QIZs, which must good-practice section). According to the Ministry contain a certain percentage of Israeli input and of Industry and Trade, women represent approxi- then can export to the United States tariff- and mately 70 percent of all QIZ employees; of the Jor- quota-free. The QIZ regime is not a separate zone danian women employed in QIZs, nearly 70 percent program; it is a U.S. government-designated status had no previous work experience.5 Therefore, zones that can be granted to public or private industrial appear to be an effective mechanism for providing estates. Currently, there are 13 QIZs in Jordan an entry point for women into the formal sector. hosting over 50 factories.4 The JIEC develops, owns, and operates the industrial estates. There The zones included in this study did not appear to are no JIEC-specific regulations; the Ministry have current programs or policies targeting wom- of Labor regulates working conditions under the en; however, they did have services available that National Labor Law. Zones included in the case could benefit women. For example, in Al-Hassan study fieldwork—Al-Hassan Industrial Estate (Ir- there is a health clinic that workers can use, al- bid), Al Dulayl Industrial Park (near Zarka), and though it does not provide prenatal or postnatal Al Tajamouat Industrial City—have QIZ status, but not all zones in Jordan do. 3 http://www.aqabazone.com/files/Residency_and_La- bor__90__of_2000-Eng.pdf 4 Jordan Economic and Commerce Bureau of the Em- Women in Zones bassy of Jordan in Washington DC. http://www.jor- According to the Jordan Ministry of Industry and danecb.org/investment_qiz.shtm Trade’s February 2010 statistics on six zones, over 5 USAID. 2007. Jordan Gender Assessment: Sustainable half (55 percent) of the workers are women. How- Achievement of Business Expansion and Quality (SABEQ). TABLE 1  ■  Workforce Demographics from a Sample of Six Zones # of Workers Foreign Jordanian Total % of Total Workforce Male 12,312 2,873 15,185 45% Female 13,244 5,528 18,772 55% Total 25,556 8,401 33,957 100% % of Total Workforce 75% 25% 100% 100% Source: Ministry of Jordan Women’s Work Department interview respondent provided statistics on April 11, 2010. 164 Fostering Women’s Economic Empowerment through Special Economic Zones care for women workers. Al-Tajamouat also has a MM Female Workers’ Welfare and Advancement medical center. XX Legal Policies and Enforcement: Interna- tional and local laws pertaining to female Al-Hassan Industrial Estate has an agreement employees and their enforcement. Women with two privately run child-care centers in the often lack access to employment opportu- zone whereby the zones provide the infrastructure nities in the formal sector, and require ad- (land, water, and electricity) for free to support the ditional protections as employees, such as service. The Al Tajamouat representative also said maternity leave and child care. that there were three women-owned businesses in XX Social and Cultural Challenges: Cultural the industrial park—a grocery shop, a dry cleaner, norms dictate women’s home responsi- and a hair salon. bilities and can impact women’s economic participation, and social factors including There is potential to create policies and practices education, health, child care, and living con- targeting women in the Jordanian government’s ditions can impact women’s ability to work newly created Development Zone Commission and excel at work. (DZC). The DZC oversees six elements including MM Women’s Entrepreneurship: local economic development, an element that can XX Policies and Access: Female entrepreneurs impact women and entrepreneurship. The DZC often lack access to capital and land policies and regulations are currently being drafted. XX Support Networks and Training: Female entrepreneurs need training on business skills, management, and market identifi- Obstacles to Women’s Economic cation, and would benefit from network Participation in Jordan building among other entrepreneurs and within key sectors. A country’s legal framework and cultural norms play a significant role in determining women’s This study has also identified replicable good economic opportunities and fair employment. In practices in Jordan, which are outlined in the sec- addition, key issues such as education, health, and tion “Good-Practice Enablers of Women’s Eco- living conditions impact women’s ability to excel nomic Empowerment in Jordan� that follows on and advance in the workplace. Finally, entrepre- page 10. neurship is an area of opportunity where women face unique challenges. Female Workers’ Welfare and This study sought to identify key barriers and en- Advancement ablers within zones that impact women’s fair em- ployment, advancement opportunities, and entre- Legal Policies and Enforcement preneurial investment opportunities across eight Jordan is a constitutional monarchy. King Abdul- countries. The study found several common factors lah II is the chief of state and Prime Minister across countries that can act as obstacles to or en- Samir Rifai is the head of government. There is a ablers of women’s economic empowerment. Poli- democratically elected parliament. Jordan’s legal cies, initiatives, and business practices can become system is based on Islamic law and French codes, enablers to spur women’s economic participation. and is divided into three categories of courts: civ- il, religious, and special, which involves various Women’s entry into the workforce, their welfare, and bodies including the Supreme Council, which, retention or dropout rates are affected by a variety if requested, interprets the constitution. Jordan’s of factors. For the Jordan Case Study, key themes multiparty political system includes 30 political are explored around the following categories. parties. Jordan Case Study 165 The Jordanian government has ratified the Con- Although maternity, breastfeeding, and child-care vention on the Elimination of all Forms of Dis- laws have the intention of protecting women’s crimination Against Women (CEDAW), and the rights, private companies believe these laws result Convention on the Political Rights of Women, in increased costs, which can lead to discrimina- among others. The JNCW reports on gender in tion against married women, pregnant women, Jordan to CEDAW. The Ministry of Planning and/or working mothers. To avoid the costs asso- and International Cooperation and the World ciated with the above policies, factories often opt Bank have a project to establish a system of gen- to hire migrant female workers, who tend to be der indicators to measure the impact of policies unmarried and without children. and practices on gender equality. Despite these advancements, however, other laws continue to The National Labor Law prohibits foreign work- restrict women’s equality. For example, women’s ers from joining unions and, therefore, from col- pension and social security cannot be passed on lective bargaining. Thirty-nine percent of the to their husbands or children after their death, workforce in zones is foreign female workers, who, whereas men’s can.6 without formal union representation, have fewer venues to express concerns and negotiate for their Except for one zone (Aqaba Special Economic rights. Zone), zone regulations regarding working condi- tions fall under the Ministry of Labor in accor- dance with the National Labor Law. The labor law Social and Cultural challenges states that in the case of an employer who hires Jordan borders Israel, Saudi Arabia, Syria, the women, the employer is obliged to provide appro- West Bank, the Dead Sea, and the Red Sea. priate child-care facilities under certain circum- With limited natural resources, Jordan is one of stances (see below). The employer is not required the poorest countries in the world in terms of by law to provide medical facilities. Tables 2 and 3 below summarize Jordan’s ratification of the core ILO Conventions, and national laws that directly 6 USAID. 2007. Jordan Gender Assessment: Sustainable affect working women. Achievement of Business Expansion and Quality (SABEQ). TABLE 2  ■  Ratification of ILO Core Conventions* ILO Convention Ratified or Not 29 Forced Labor Ratified 87 Freedom of Association and Protection of the Right to Organize Not Yet Ratified 98 Right to Organize and Collective Bargaining Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) With Reservations * ILO http://www.ilo.org/ilolex/english/docs/declworld.htm 166 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 3  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities National Law Law Description or Zone Maternity Leave (Article 70 of the Labor Law) Companies to provide women with a 70-day maternity leave. Both Unpaid Maternity Leave (Article 67 of the Labor Working mothers can take a year-long leave of absence without pay to raise Both Law) their children. Discrimination against Pregnant Workers Labor law (1996) prohibits employers from terminating women’s jobs if they Both are in the 6th month of their pregnancy or maternity leave.1 Child Care A private employer with 20 or more female workers must provide an onsite Both child-care facility for their children under the age of four if at least 10 children need care. Breastfeeding Leave (Article 171 of the Labor A mother is entitled to paid breaks to breastfeed during the first year after Both Law) birth. Working Hours Restrictions (Article 23 of the Women are not allowed to work between 8:00 p.m. and 6:00 a.m., except in Both constitution and article 69 of the labor code) some service industries, and exceptions are made for special circumstances such as annual inventories; women have a maximum 10-hour workday, as outlined in Article 23 of the constitution and Article 69 of the labor code.2 Minimum Wage JD 110 in QIZs National JD 150 outside QIZs3 1   UNIFEM and UNESCO, 2000. Factors Influencing the Employment of Women, from the View of the Employed and Non-employed Women and Managers in Amman City, Jordan. Amal Mohummad Ali El Kharouf. Page 63. 2   Rana, Husseini. Jordan. In Sanja Kelly and Julia Breslin, eds., Women’s Rights in the Middle East and North Africa (New York, NY: Freedom House; Lanham, MD: Rowman & Littlefield, 2010). Available online at http://www.freedomhouse.org. 3   Based on interview with Better Work. water.7 18 percent (1,060,000) of the population The royal family is engaged in efforts to empower of 5,924,000 live in the capital city, Amman.8 women through education and employment op- Jordan is considered a modern Arab nation; 92 portunities. For example, Her Majesty Queen percent of its population is Sunni Muslim and Rania Al Abdullah chairs the Jordan River Foun- there is a small Christian minority. dation, an NGO established in 1995 to empower women and children in order to support economic Jordan, classified by the World Bank as a “lower- middle-income country,� has a GDP per capita of US$2654.20.9 Jordan’s total exports are US$5.7 7 U.S. Department of State 2010 Background Note billion, with the following major trading partners, on Jordan accessed at http://www.state.gov/r/pa/ei/ as measured by percentage of exports: the United bgn/3464.htm. 8 UN Statistics Division’s World Statistics Pocket- States (21.8 percent), Iraq (12.7 percent), and In- book. Accessed at http://data.un.org/CountryProfile. dia (8.3 percent).10 Jordan’s exports include gar- aspx?crName=Jordan. ments, fertilizers, potash, phosphates, pharmaceu- 9 U.S. Department of State 2010 Background Note tical products, and vegetables. Jordanian exports on Jordan accessed at http://www.state.gov/r/pa/ei/ have increased steadily, except during the global bgn/3464.htm. 10 UN Statistics Division’s World Statistics Pocket- economic downturn in 2008 and 2009. Accord- book. Accessed at http://data.un.org/CountryProfile. ing to the U.S. International Trade Commission, aspx?crName=Jordan. Jordan exported US$796.2 million in goods to the 11 US Department of State. January 2010. Background United States in the first 10 months of 2009, com- Note: Jordan. http://www.state.gov/r/pa/ei/bgn/3464. pared to US$6.9 million in 1997.11 htm#econ Jordan Case Study 167 development and improved quality of life for Jor- mary, secondary, and tertiary education, and an danians. Her Royal Highness Princess Basma Bint adult literacy rate of 91.1 percent. Although Jor- Talal chairs the Jordanian National Commission danian women have high literacy and education for Women ( JNCW), a semigovernmental body rates, the tertiary education rate of women is a established by the prime minister in 1992 as the third that of men.15 coordinating committee for NGOs that is part of the “National Committee�.12 Employment Despite Jordan’s high levels of education, there is The JNCW has produced a “National Strategy high unemployment—the official rate is 12 per- for Jordanian Women� every five years since 1993. cent but unofficial estimates are closer to 30 per- The JNCW established gender focal points in each cent.16 There are numerous factors contributing to government department who sit on the JNCW unemployment, such as demographics (75 percent Gender and Public Sector Committee, and assist of the population is between 20 and 39 years old). with gender mainstreaming in their departments. Another factor is women’s low level of participa- The Jordanian government has also made efforts to tion in the labor force. In 2007, women constituted collect gender-disaggregated data as well as data only 12 percent of the workforce in the private sec- to track gender equality. The Department of Sta- tor in Jordan,17 which is low even for the Middle tistics produces gender-disaggregated data in the East and North Africa region, where the average “Woman and Man in Jordan: In Figures� report. of 32 percent is the lowest regional rate in the world.18 The unemployment rate of women is also The JNCW reported in the 2006–2010 National much higher than that of men—for women under Strategy for Women that “huge achievements have the age of 25, unemployment soars to 82 percent.19 been made in the last decade on legislative, eco- nomic, political and social levels that have contrib- Factors contributing to low female labor force par- uted to the development of the status of women ticipation and high unemployment may include:20 in critical activities such as education, health, work, politics and other fields.� For example, the number 12 Jordanian National Commission for Women ( JNCW). of women educated at all school levels has increased, The Definition of the Institutional Identify for the Jorda- and general health conditions have improved, re- nian National Commission for Women. 13 Jordanian National Commission for Women ( JNCW). sulting in a higher life expectancy for women and lower maternity and infant mortality rates.13 As the National Strategy for Jordanian Women 2006–2010. 14 Jordanian National Commission for Women ( JNCW). JNCW National Strategy report states, the “official National Strategy for Jordanian Women 2006–2010. recognition of the need for systematic, organized, 15 USAID. 2007. Jordan Gender Assessment: Sustainable and sustainable efforts on women’s issues…reflect- Achievement of Business Expansion and Quality (SABEQ). ed in the National Strategy for Jordanian Women 16 U.S. Department of State http://www.state.gov/r/pa/ by the government in 1993…is one of the most ei/bgn/3464.htm#econ 17 Rana, Husseini. Jordan. In Sanja Kelly and Julia Breslin, prominent achievements.�14 eds., Women’s Rights in the Middle East and North Africa (New York, NY: Freedom House; Lanham, MD: Row- Despite these achievements, women still face chal- man & Littlefield, 2010). Available online at http:// lenges in labor force participation and are some- www.freedomhouse.org. times subject to restricted freedom of movement 18 IFC, 2007. Gender Entrepreneurship Markets (GEM) tied to cultural norms. See Table 4 for relevant Country Brief-Jordan 2007. Accessed at http://www.ifc. statistics on women’s status in Jordan. org/ifcext/gempepmena.nsf/AttachmentsByTitle/Jor- dan_GEM_Country_Briefv2/$FILE/JORDAN+GE M+Brief+with+out+Survey+info+for+posting+now.pdf. Education 19 USAID. 2007. Jordan Gender Assessment: Sustainable Jordan has relatively high levels of education, with Achievement of Business Expansion and Quality (SABEQ). 78.7 percent combined gross enrollment in pri- 20 Based on interviews conducted for this study. 168 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 4  ■  Socioeconomic Indicators: Jordan Total Adult Female Ratio: Female Indicator Population Population to Male % of population living on less than US$1.25, US$2 per day < 2%, 3.5% Education (combined primary, secondary, tertiary) 78.7% 79.9% Literacy (for ages 15+) 91.1% 87% 0.91 Labor force participation 15.5% 0.22 Unemployment 12.7% (official), 24.4% 30% (unofficial) Earned income (PPP USD annually) 2,566 0.31 Major Religions Primary Muslim Other Christian Gender Measures Gender-related development index (GDI) .743, Rank 87/155 ranked countries Gender empowerment measure (GEM) Data not available Women-held seats in parliament, women in government at ministerial level 8%, 15% Female legislators, senior officials, managers Data not available Female professional and technical workers Data not available Women with unmet family planning needs 11.9% Births attended by skilled health professional 100% Maternal mortality rate (per 100,000 live births, adjusted) 62 Source: UNDP Human Development Report, UN’s Statistics Division, Jordanian Government Department of Statistics Jordan, DHS. MM Cultural and religious dictums on women’s so- more disciplined. This could imply a belief, with- cietal roles and their movement outside of the out supporting data, that women have lower rates home of absenteeism and higher productivity, as well as MM Lower levels of tertiary education a more obedient character that makes them less MM Lack of work experience and appropriate skills likely to resist management directives. Additional- MM Lack of access to finance ly, a study on women in export industries in Jordan MM Lack of access to child care (research conducted in 2008) quoted an employer MM Disincentives for companies to hire women, as saying the following about the impact of turn- such as the perceived high cost of providing over: “The continuous change of the labor is a ‘bleed’ maternity leave for the factory, it is much better for the factory to keep MM Discrimination, including wage discrimination someone who is skilled and efficient.�21 by occupation, segregation, and the presence of fewer women in high positions, and discrimi- With the increasing cost of living and rising unem- natory hiring practices against married or preg- ployment among men, more women are entering nant women. 21 El Abed, Oroub and Gro Hasselknippe, 2010. Work- At the same time stakeholders commented that ing Draft Impact of Paid Work on Young Women’s Lives in buyers prefer women workers, and that women are Jordan. Forthcoming 2010 book. Jordan Case Study 169 the workforce than in the past. Against this back- ees. JIEC provides the clinic, and factories can drop, the zones have been a driver of job creation contract with an insurance company to provide in Jordan, often providing the first formal-sector health insurance for their workers. Additionally, employment for many women from rural areas. A the union, with support from the Japanese gov- joint study by the Jordanian government and the ernment, provides two clinics for industrial es- International Labour Organization (ILO) on tex- tates, one each in Irbid and Al Dulayl. Factories tiles22 found that “most women working in textile can sign agreements with the unions to enable industry are single, below 30 years age, and mostly be- their workers to use these facilities. Some facto- long to poor families living in rural remote geographi- ries also have onsite clinics, including one factory cal areas. …The majority of their families have high that has a full-time doctor (many other onsite unemployment among the male family members.�23 clinics only have a doctor for a few hours a week) and three trained nurses. However, health issues Most interviewees noted that women and their are a concern for workers, as factory clinics can families prefer for women to work in the public only service basic health needs, not more seri- sector, a claim reinforced by a study on Jordanian ous health issues or women’s health needs. Not society’s view of women’s work that found that all zones have zone-wide medical clinics, such as “the public sector is considered more suitable for the union-managed clinics; many workers do not women’s work.�24 Women prefer the public sec- have access to public hospitals; and most, if not tor because of better wages, more favorable con- all, workers do not have health insurance. ditions and nonwage benefits, job security, and a stable schedule of 8 hours per day and 2 days off A 2011 report from the Institute for Global Labor per week, compared to the zone schedule of one and Human Rights (formerly the National Labor day off per week. IFC reported that approximately Committee) found instances of sexual abuse and 45 percent of the female labor force, or 54,000 rape in one factory supplying goods to American women, are employed in the public sector.25 companies and located in a Jordanian zone. Abuse was perpetrated by supervisors and was found to Almost all stakeholders referred to women’s dual be common and repeated against migrant work- role at home and work as a barrier to employment in the formal sector, which can also impact upward mobility. This belief is reinforced by studies. For ex- 22 While the study was not focused on zones, many enter- ample, in Freedom House’s report Women’s Rights prises in zones are in the textile industry. 23 ILO and Jordan Ministry of Labor, 2002. Women Work- in the Middle East and North Africa, contributor ers in the Textiles and Garments Industries in Jordan: A Rana Husseini notes, “Women’s career paths are Research on the Impact of Globalization.� Page 51. negatively affected by the continuing duty to per- 24 UNIFEM and UNESCO, 2000. Factors Influencing the form traditional household chores, especially after Employment of Women, from the View of the Employed and marriage, as well as the expectation that they work Non-employed Women and Managers in Amman City, Jor- near their family home, preferably in the govern- dan. Amal Mohummad Ali El Kharouf. Page 27. 25 IFC, 2007. Gender Entrepreneurship Markets (GEM) ment sector.�26 A U.S. Agency for International Country Brief-Jordan 2007. Accessed at http://www.ifc. Development (USAID) report cites an estimate org/ifcext/gempepmena.nsf/AttachmentsByTitle/Jor- that married women represent only 7 percent of dan_GEM_Country_Briefv2/$FILE/JORDAN+GE the female labor force in Jordan,27 indicating that M+Brief+with+out+Survey+info+for+posting+now.pdf. 26 Rana, Husseini. Jordan. In Sanja Kelly and Julia Breslin, married women seek employment less frequently. eds., Women’s Rights in the Middle East and North Africa (New York, NY: Freedom House; Lanham, MD: Row- Health man & Littlefield, 2010). Available online at http:// Reportedly, every Jordan Industrial Estates Cor- www.freedomhouse.org. poration ( JIEC) industrial estate must have a 27 USAID. 2007. Jordan Gender Assessment: Sustainable clinic for factory workers and JIEC employ- Achievement of Business Expansion and Quality (SABEQ). 170 Fostering Women’s Economic Empowerment through Special Economic Zones ers; in this factory, migrants largely come from Sri In terms of upward mobility, factory managers Lanka.28 Such instances may be wider-spread and interviewed stated that this is largely linked to underreported, because of the isolation and depen- years of experience at the facility. Jordanian wom- dence of most migrant workers, whose passports en workers may leave and re-enter the workforce are commonly forfeited to management, and who because of marriage, childbirth, religious or cul- often arrive for work in debt and highly dependent tural resistance of family members, or to access on their employer. their retirement fund—the Social Security (Ar- ticles 44/45) and Civil Retirement (Article 14) Housing and Foreign Contract Workers laws allow women to resign and withdraw their Foreign contract workers constitute about 65–75 retirement fund after working for a certain pe- percent of the zone workforce. The challenges riod. This impacts women’s opportunity for up- outlined above are more complicated with a pre- ward mobility because the law provides an incen- dominantly migrant workforce, where different tive for women to quit their jobs if their family languages are spoken, different cultures are repre- has financial difficulties.29 Upward mobility can sented, and the duration of employment is gener- be improved by policies and practices that seek to ally limited to a three-year contract, which inhibits build community support for women entering the opportunities for advancement. Additionally, mi- workforce and to provide services like child care, grant workers live in dormitories in the zones or in to help women balance home and work respon- the areas surrounding the zones. Factory-provided sibilities, while developing the requisite skills for housing ensures that workers have a place to live; promotion. however, some stakeholders interviewed noted that this may limit workers’ opportunity to leave the zones. Entrepreneurship Opportunities for Women Jordanian workers typically live in private resi- There is great potential for Jordanian women en- dences. As zones are often located far from vil- trepreneurs; however, much of this potential is cur- lages, Jordanian women must travel significant dis- rently untapped. “Women’s entrepreneurial potential tances to work in them. This is a significant barrier in Jordan is woefully under-utilized; women’s busi- to entering the workforce, as cultural norms often nesses play only a peripheral role in Jordan economy� dictate that Jordanian women’s primary respon- stated USAID’s 2007 Jordan Gender Assessment.30 sibilities are to their families, and cultural norms also sometimes prevent or limit women from trav- This is evident in the zones. Small businesses, such eling alone on public transportation, particularly as supermarkets, banks, restaurants, salons, and dry after dark. cleaners, are permitted in the public and private industrial estates visited for this study; however, Religion and Culture only the Al-Tajamouat respondent was aware of There are significant cultural and religious barriers to women’s employment and advancement, partic- ularly for women in rural villages with more con- 28 National Labor Committee / Institute for Global Labor servative societies, such as limited mobility, fam- and Human Rights, “Sexual predators and serial rapists ily responsibility, and cultural resistance in some run wild at Wal-Mart supplier in Jordan�, June 2011. 29 Rana, Husseini. Jordan. In Sanja Kelly and Julia Breslin, families to women working outside of the home. An innovative public-private partnership that di- eds., Women’s Rights in the Middle East and North Africa (New York, NY: Freedom House; Lanham, MD: Row- rectly targets women has been launched in Jordan man & Littlefield, 2010). Available online at http:// to address these challenges. See the good-practice www.freedomhouse.org. example “Satellite Factories Program� below for 30 USAID. 2007. Jordan Gender Assessment: Sustainable more information. Achievement of Business Expansion and Quality (SABEQ). Jordan Case Study 171 the existence of women-owned small businesses. likely as women business owners’ levels of educa- Additionally, in the zones there are few, if any, fe- tion increase.�36 Limited female entrepreneurship male factory owners. in the zones is consistent with businesses across Jordan; for example, women account for only 4 With three-quarters of women’s businesses being percent of entrepreneurs in the formal sector in based at home and these businesses representing Jordan, even though 90 percent of businesses in a narrow range of traditionally feminine skills— Jordan are SMEs.37 sewing, embroidery, handicraft production, pro- vision of beauty services, and commercial trade Organizations such as Business and Professional in groceries or clothing—women-owned small Women—Amman (BPW-A) and the Jordan Fo- and medium enterprises (SMEs) only serve the rum for Business & Professional Women ( JFBPW) local Jordanian markets.31 A survey by IFC and are contributing to providing training and creat- the Center of Arab Women for Training and ing economic opportunities for women entrepre- Research (CAWTAR) found that 74.1 percent neurs; however, many challenges remain. Jordanian of women business owners surveyed are not in- women entrepreneurs face cultural barriers related volved in international trade.32 Women face chal- to the role of women in society; women’s disinterest lenges related to identifying markets, marketing in working in the private sector because of beliefs products, and gaining export-specific knowledge that it is unfair or unsafe; access to finance, mar- such as registration and export market proce- kets, networks, affordable transportation, and child dures.33 care; a lengthy and costly bureaucratic process to register a business; and limited ability to market their business. Policies and Access In terms of access to finance, many businesswomen Although there are challenges, innovative practic- believe that they are discriminated against on the es already exist to help address these barriers and basis of gender when applying for a loan—they maximize the potential of women entrepreneurs. are asked to provide higher collateral, they receive Examples are highlighted in the next section. less favorable responses to new business ideas, and they are required to provide a spousal guarantee.34 In the IFC-CAWTAR study mentioned above, only 14.2 percent of women business owners sur- 31 USAID. 2007. Jordan Gender Assessment: Sustainable Achievement of Business Expansion and Quality (SABEQ). veyed acquired business or commercial bank loans, 32 IFC and Center of Arab Women for Training and Re- 9.2 percent received microfinance loans, and 8.1 search. 2007. Women Entrepreneurs in the Middle East percent took out personal bank loans; other chal- and North Africa: Characteristics, Contributions and lenges around access to finance identified in the Challenges. 33 USAID. 2007. Jordan Gender Assessment: Sustainable study by Jordanian women business owners in- clude high interest rates, a complicated applica- Achievement of Business Expansion and Quality (SABEQ). 34 USAID. 2007. Jordan Gender Assessment: Sustainable tion process, lack of collateral, and lack of a busi- Achievement of Business Expansion and Quality (SABEQ). ness track record.35 35 IFC and Center of Arab Women for Training and Re- search. 2007. Women Entrepreneurs in the Middle East and North Africa: Characteristics, Contributions and Chal- Support Networks and Training lenges. 36 IFC and Center of Arab Women for Training and Re- A major barrier for female entrepreneurs is lack search. 2007. Women Entrepreneurs in the Middle East of education and business-management training. and North Africa: Characteristics, Contributions and Chal- Results from a 2007 study of Jordanian women lenges. business owners indicated that “women business 37 USAID. 2007. Jordan Gender Assessment: Sustainable owners’ involvement in international trade is more Achievement of Business Expansion and Quality (SABEQ). 172 Fostering Women’s Economic Empowerment through Special Economic Zones Good-Practice Enablers of Women’s Community Outreach to Support Economic Empowerment in Jordan Women’s Employment MM Enabler Type: Social Through fieldwork and other research, this study MM Who: Government, zones, and enterprises identified policies, initiatives, and business practic- MM Where: In rural communities in Jordan near es that support economic opportunities for women zones and can increase competitiveness for enterprises MM Time frame: 2002–present (as of June 2011) and zones. The following programs were among MM Benefit to women: Women have increased the good practices identified in Jordan, which have employment and income-generation opportu- the potential to be replicated in other zones in Jor- nities when their families permit them to work dan, as well as in zones in other countries. in zones. MM Benefit to business: Address the labor short- age through bringing more Jordanian women Enablers for Female Workers’ into the workforce. For example, a zone out- Welfare and Advancement reach program in partnership with the Minis- try of Labor successfully recruited 200 Jorda- Grievance Mechanisms and Monitoring nian workers—most, if not all, women—from of Workers’ Rights the southern part of the country. MM Enabler Type: Legal MM Who: National Center for Human Rights and To address the resistance to women working out- the Jordanian National Commission for Wom- side of the home, government, zones, and enter- en ( JNCW) prises, often in partnership, conducted commu- MM Where: National nity outreach in rural Jordanian communities near MM Benefit to women: Female workers have two zones with the goal of increasing the number of avenues, in addition to the Ministry of Labor Jordanian women workers. The outreach included office, to express concerns and grievances about speaking at community halls and also inviting working conditions in zones. women’s parents to visit the factories. For example, MM Benefit to business: Improved worker satisfac- every Saturday one enterprise invited 100 workers’ tion and productivity; risk mitigation and im- families to the factory, and about 50 percent of the proved compliance. invited families attended. The factory used these visits to build a relationship with the community, The National Center for Human Rights (http:// and families became more comfortable with their www.nchr.org.jo), an independent national insti- daughters or sisters working in factories in zones, tution established by law in 2002,  conducts ac- which led to an increase in employment and for- tivities including monitoring and follow-up on mal-sector income-generation opportunities for violations of human rights in Jordan. The center re- Jordanian women. One of these zone outreach ceives complaints about violations of human rights programs, in partnership with the Ministry of , including women workers’ rights, follows-up on Labor, successfully recruited 200 Jordanian work- complaints and cases of violation, and provides as- ers from the southern part of the country, most of sistance and advice to people about their rights.38 them women. In addition to receiving workers’ complaints, the National Center for Human Rights visits enter- prises in zones with Ministry of Labor inspectors. 38 The National Center for Human Rights. http://www.nchr. The JNCW has a women’s complaint office, which org.jo/pages.php?menu_id=47&local_type=0&local_ receives complaints about violence against women id=0&local_details=0&local_details1=0&localsite_ and workplace discrimination and harassment. branchname=NCHR Jordan Case Study 173 One community outreach program faced signifi- the union clinic, which has more advanced medical cant challenges related to conservative parents of services than factory clinics and provides women’s female workers, some of whom did not allow their health care services (gynecology, obstetrics, ultra- daughters and sisters to go to work because of so- sound). The clinics provide service to more than cial pressures. There were additional cultural chal- 70,000 workers annually. lenges related to a sense of shame about women working in factories rather than at administrative The program has encountered some challenges in or even managerial tasks, as well as a general lack getting started and achieving success. At the be- of awareness of and training on both technical and ginning, the QIZ area had been boycotted by the soft skills among workers and a need for a voca- Jordanian doctors’ association, because of Israeli tional training center. Overall, the project has been investments there, so there were no doctors able an ongoing success; some women workers within to work in the clinic. This challenge was addressed the community outreach program stayed at work by hiring the doctors as employees of the textile for over 8–9 years and saved money that enabled union, which is not connected to Israeli investors. them to open their own workshops, earn academic certificates, and help their families financially. Another challenge was convincing employers to allow their workers to use the clinics. One tactic used was to sign medical agreements with zone- Union-Provided Zone Health Clinics based companies for the clinics to cover the cost of MM Enabler Type: Social treatment, medical examinations, and initial tests. MM Who: Union (General Trade Union of Work- This was successful, particularly because Jordanian ers in Textile, Garment, & Clothing Industries law requires factories to provide a doctor, and the [ JTGCU]); TWARO Japan (Asian and Pacific clinics made it easier for factories to meet this re- Regional Organization of International Textile, quirement. A remaining challenge is securing up- Garment and Leather Workers’ Federation) dated medical instruments and tools, and obtaining MM Where: Irbid and Al Dulayl zones medicine for dispensing, because companies do not MM Time frame: 2002–present (as of 2011) cover these costs. MM Cost: US$92,000 for each of two clinics to equip, launch, and maintain facilities; workers One major success of the clinic project was to put using the clinics pay no fee for service in place a system of medical check-ups for hear- MM Benefit to women: Women workers with ac- ing and lung health, as these are key occupational cess to the union clinics can use women’s health health issues in the garment sector. This model was services and likely have better health indicators so successful that it was adopted by the Jordanian MM Benefit to business: Improved health can lead Ministry of Health and Labor Ministry for use by to reduced absenteeism and increased produc- all factories and nearby hospitals, both inside and tivity out of qualified industrial zones. Factory clinics provide basic services (most only have a doctor for a few hours per week) and the Satellite Factory Program clinics are often ill equipped to address female MM Enabler Type: Social, Advancement heath issues. Given the limited capacity of fac- MM Who: Public-private partnership between Jor- tory clinics, the General Trade Union of Workers danian Ministry of Labor and factories in Textile Garment & Clothing Industries, with MM Where: Five rural villages in Jordan financial support from the Japanese government, MM Benefit to women: Rural women have access has established and manages two zone-wide gen- to an employment opportunity near their vil- eral medical clinics in Irbid and Al Dulayl. Facto- lage and are provided skills training to succeed ries can pay the union a fee to treat their workers at at the job. 174 Fostering Women’s Economic Empowerment through Special Economic Zones MM Benefit to business: Factory owners have ac- MM Partnership: To support the program the gov- cess to trained, local workers to address the ernment contributes a rent-free building for shortage of supply of workers five years, 30 percent of the workers’ salaries during the training program, a food allowance Factories face a shortage of Jordanian workers, and of JD 35 per month, social security for 1.5 have to employ migrant workers instead, a tactic years, and a transportation allowance to the that comes with high costs and risks. However, ru- companies for 18 months. The factory owner ral women in Jordan face many challenges in seek- provides the equipment, pays the rent after the ing employment in trade zones, including limited fifth year, and covers 70 percent of the work- work experience, limited mobility, and the double ers’ salaries during the training period and 100 burden of family responsibilities. percent thereafter. The satellite factory program is a public-private partnership that seeks to address these challenges Skills Training to Support Women’s and deliver benefits for women, factory owners, Employment and Advancement and the government. Five “satellite� factories have MM Enabler Type: Social, Advancement been established near rural villages, employing a MM Who: Public-Private partnership, the Jordan total of approximately 1,350 Jordanian workers, Forum for Business and Professional Women almost all women. Two more branches of the pro- ( JFBPW) gram are expected to open in 2011, which will MM Where: National employ an additional 400 young women. These MM Benefit to women: Access to skills and en- satellites factories qualify for the same incentives hanced employment opportunities and benefits offered to factories located inside a MM Benefit to business: The initiative will provide zone. the private sector with 5,000 trained women Challenges faced by this project included gaining Many factories in zones have a shortage of local funding, as well as convincing young women from labor availability, and unemployed women often remote areas in Jordan to work in the factory, as lack previous experience and appropriate skills. factory work is not considered desirable work for Many women workers in zones have lower lev- women in the local culture. Another challenge is els of education, limited work experience, and a that minimum wage for the sector is JD 110, and lack of relevant skills. They tend to work mainly as this amount is considered low and, often, an in- line workers, which limits their opportunities for adequate incentive for young women to join the “up-skilling� training and paths toward promo- factory’s workforce. Despite these challenges, the tion. The JFBPW offers a public-private partner- program has been successful. Key success factors ship training program, the “National Initiative for include: Training and Direct Employment for Women,� to address these deficits. MM Feasibility study MM Community engagement: Consultation began with tribal heads, local governments, and fam- Upward Mobility Policy ily heads. Public forums were also conducted at MM Enabler Type: Advancement local young women’s schools. MM Who: Enterprise MM Skills training: The satellite program provides MM Where: Enterprise in a zone workers with four months of training and then MM Benefit to women: Access to new skills and a full-time position. The position has limited opportunity for advancement or no overtime, so that the Jordanian women MM Benefit to business: Potential for productivity remain able to fulfill their household duties. gains from skills enhancement Jordan Case Study 175 One company interviewed had an explicit policy of MM Who: Jordan Forum for Business & Profes- providing workers with skills training and promot- sional Women ( JFBPW) ing from within. The former general manager of a MM Where: National zone enterprise built a systematic training program MM Benefit to women: Systematic training for aimed at teaching local Jordanian workers the soft starting a business and technical skills needed for promotion and introduced a “promote-from-within� policy. The Women have limited capital and limited previous former manager reported that during a 20-year entrepreneurial experience and lack appropriate period, more than 200 supervisors were trained, business-management skills. The JFBPW incu- all of whom were promoted from within, and that bator provides office space, supplies, a library, ac- most middle managers, excluding engineers, were cess to a resource officer and legal advice, and a also promoted from within. The business benefited network of mentors, which save women entrepre- from the skills enhancement through increased neurs money and provide them with information productivity and employee satisfaction. to improve their business-management skills. The incubator helps women establish a business in a A primary challenge was that all trainees also held systematic way, provides access to services at a re- supervisory responsibilities and were expected to duced cost, and enhances business skills. deliver results in a certain time frame, which at times made some of them miss classes. Unfortu- nately, the program was stopped when the compa- EXPORT TOOL KIT ny underwent downsizing that cut the workforce MM Enabler Type: Training and management in half. MM Who: Jordan Forum for Business and Profes- sional Women ( JFBPW), USAID MM Where: National Enablers to Support Female Entrepreneurs Many female entrepreneurs struggle to enter the export market because of a lack of higher educa- Enhancing Finance from Commercial tion and business-management training. A survey Banks to Women conducted by the JFBPW found that 74.1 percent MM Enabler Type: Access of women business owners were not involved in MM Who: USAID SABEQ-JFPQ project international trade. The main challenges for female MM Where: National entrepreneurs in creating an export business in- clude identifying markets, marketing, and gaining Women have limited access to bank loans and export-specific knowledge such as registration and likely face discrimination when applying for loans. export market procedures. The USAID-funded project “Enhancing Finance from Commercial Banks to Business Women� pro- To address these challenges, the JFBPW, in coop- vided education to commercial banks on lending eration with a USAID program, launched a ex- to women, educated women on how to be a “bank- port tool kit (in Arabic only),39 produced by and able client,� and hosted a dialogue between busi- targeted at women, which includes a step-by-step nesswomen and bank representatives. The project explanation of how to export from the inception helped increase access to finance for female entre- of the idea through to accreditation, marketing, preneurs. and sales. Women’s Entrepreneurship Incubators 39 The tool kit is available at http://www.sabeq-jordan. MM Enabler Type: Training and Networks org/SABEQ_Files/633371800617959856.pdf 176 Fostering Women’s Economic Empowerment through Special Economic Zones Remaining Challenges and soon-to-be-created JNCW Gender and Private Opportunities for Innovation in Sector Committee. Customize methodologies de- Jordan veloped (a) by JNCW, such as diversity training for private-sector human resource managers, baseline While uncovering best practices, we have also studies of gender at a private company, and a ques- identified major barriers and poor practices that tionnaire on gender mainstreaming in government affect women trying to enter the workforce or institutions, and (b) by government gender focal achieve upward mobility. The following programs points, such as gender budgeting and training on reflect opportunities for further innovation and gender sensitivity, for application at the zone level program development. With the long-term goal of and at the enterprise level. empowering women to participate in the economy, contribute to economic growth, and support their families, this study has highlighted a few suggested Social: Child Care and National recommendations for enterprises, zones, and the Maternity Fund national government and stakeholders. The Social Service Corporation (SSC) conducted a study and found that access to child care is a major barrier to women entering the workforce. Innovations to Further Female Traditionally, relatives watch the children of work- Workers’ Welfare and Advancement ing mothers; however, this is not always possible. Few factories provide subsidies or onsite child care. Legal: Awareness of Workers’ Rights When women have access to affordable childc are, and Grievance Processes it can lead to an increase of women in the work- Adapting it to the zone context as necessary, dis- force, and child-care centers can provide jobs to seminate the Jordanian National Commission for women directly. Women ( JNCW) booklet that summarizes the rights granted to women working in the private In partnership with government bodies such as sector under the Jordanian Labor Law. Include with SSC, as well as women’s associations and enterprise the booklet an explanation of avenues for women owners, zones can conduct a study (a) to understand workers to express concerns, including internally the best methods of providing child care to working at enterprises and externally with resources such mothers in zones, such as a zone-wide child-care as the Ministry of Labor offices located within the facility or a subsidy for community child-care op- zones, the JNCW, and the National Center for Hu- tions, and (b) to explore options or models that pro- man Rights. As witnessed by the negative backlash vide financial assistance to enterprises to subsidize to the 2006 National Labor Committee Report, the cost of maternity leave in order to reduce dis- which impacted the competitiveness of the apparel crimination against married and pregnant women. industry (and therefore of zones in Jordan), the Jor- The zones can establish a policy implementing the danian government is committed to ensuring that approach that best meets the needs of the workers working standards are met. and eliminates incentives for companies to discrim- inate against married and pregnant women. Legal/Social: Integration of a Gender Perspective Advancement: Zone-Wide Training Replicate the JNCW model of “gender focal Program points� in factories and zones and create a zone- Develop a mechanism to identify the skills re- wide gender committee to discuss key issues and quired by enterprises for new hires and for promo- implement programs. Encourage a representative tion of existing employees and design a zone-wide from one enterprise per zone to participate on the training approach, likely a public-private partner- Jordan Case Study 177 ship, to provide effective and cost-effective train- tutes, colleges and universities, city economic de- ing programs. Deliver the training in partnership velopment associations, and other programs that with existing government-funded training insti- provide training and technical assistance. Resources: Key Gender Stakeholders in Jordan Organization Name Location* Focus Area Jordanian National Commission for Amman Gender mainstreaming in the public and private sector. Umbrella organization Women (JNCW) representing NGOs and engaging with the government. Business and Professional Women— Amman Promotes leadership, education, and job-linked training, advocates for women’s Amman (BPW-A) economic empowerment, and improves work-life balance of professional women. Better Work Jordan Amman Conducts assessments and offers advisory and training services for apparel enter- prises in Jordan with an emphasis on multistakeholder dialogue and continuous improvement. French Institute for Near East Amman Researcher Ms. Oroub El-Abed co-authored study on women in the export industries. Gender focal points in government Amman Liaise with JNCW by sitting on the JNCW Gender and Public Sector Committee, departments such as Social Security Cor- and mainstream gender in their departments. poration, Ministry of Labor, Ministry of Planning and International Cooperation General Federation of Jordanian Women Amman National NGO comprising women’s associations and societies working to enhance political, economic, and social status of women. Membership includes over 80 societies. Offers educational opportunities, guidance in family welfare and health, legislative reform advocacy, and income-generating activities. General Trade Union of Workers in Amman and Is aware of workers’ needs and concerns and runs two zone-wide general medical Textile, Garment, & Clothing Industries offices at clinics. (JTGCU) zones International Finance Corporation (IFC) Amman IFC Jordan: Access to finance, public-private partnership for infrastructure projects, supporting the business-enabling environment, and mobilizing financial resources for project finance and foreign direct investment. IFG Gender Entrepreneurship Markets (GEM): female entrepreneurship; women’s access to jobs, resources, and skills, and public-private partnerships. Co- published Women Entrepreneurs in the Middle East and North Africa (2007) and published GEM Country Brief-Jordan 2007. International Labour Organization (ILO) Amman Gender-related issues at work focusing on pay equity and access to education. Gender Specialist Jordan Forum for Business and Profes- Amman Technical and professional support (e.g., incubator, export tool kit), advocacy, sional Women (JFBPW) networking, access to finance. Jordan River Foundation Amman Income-generating activities in rural communities. National Center for Human Rights Amman Human rights: Criminal justice, legislation, complaints, and follow-up on complaints on issues such as right to work, women’s rights, child labor, human trafficking, and migrant workers. Princess Basma Women’s Resource Amman Acts as a support mechanism for women’s groups, linking grassroots efforts to Centre (PBWRC) policy makers. Conducts training on gender and development, as well as research. Oversees a national information network on women’s issues. UN Women Western Asia Regional Amman Global women’s advocacy and empowerment organization. office USAID-funded SABEQ Amman Broad economic development initiative focusing on private-sector-led growth. *  These organizations are headquartered in Amman, but most have activities across Jordan. Kenya Case Study: Fostering Women’s Economic Empowerment through Special Economic Zones T his case study examines the role special “enablers� for women’s economic participation in economic zones (SEZs) can play to cre- zones if they are addressed directly and effectively ate regulatory frameworks and initiatives through policies and programs at the government, that promote women’s economic participation as zone, and enterprise levels. As such, the study a way to boost trade zone competitiveness and presents numerous examples of good practices. In sustainable jobs. This case study supports a global addition to a small number of relevant replicable research initiative to uncover good practices for practices in zones, the study also finds useful ex- women’s economic advancement within the zones amples outside of zones that could be replicated and define a practical approach to design, promote, within zones. and implement gender-inclusive SEZs across the globe. Findings are based on field research in eight The Republic of Kenya (hereafter Kenya) was se- countries, as well as a global literature review. lected for inclusion in the study because its zone program is relatively new and its government is To support women’s improved economic partici- focused on bringing new investors to the country. pation in zones, this study seeks to identify good- practice programs and policies that can be imple- mented by SEZs throughout the world to promote Methodology women’s advancement at three levels: This case study is based on findings from a com- MM Working conditions for female workers bination of stakeholder organization interviews, MM Opportunities for upward mobility enterprise site visits, and desk research. This case MM Investment opportunities for female entrepre- study included twenty-six in-person interviews neurs with fifteen organizations in and around Nairobi, Kenya, in May 2010. The interviews included site In doing so, the study identifies key legal and reg- visits at two enterprises operating outside export ulatory issues, social and cultural constraints, lack processing zones (EPZs) and meetings with rep- of support services, and investment-climate issues resentatives from Kenya’s zone authority—Kenya affecting women as the main obstacles to decent Export Processing Zone Authority (KEPZA)—at working conditions, upward mobility, and invest- the Athi River zone outside of Nairobi. Primary ment opportunities within SEZs. The study argues research was supplemented by a review of relevant that these obstacles can also be used positively as existing literature. 180 Fostering Women’s Economic Empowerment through Special Economic Zones Stakeholder Type Number Objective of Engagement Civil Society 9 Determine challenges facing Kenyan women at work and at home, and learn about programs and policies seeking to address those challenges. Female Entrepreneurs 7 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/owning a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Workers’ Organizations 1 Identify labor rights issues unique to women, challenges to their resolution, and recommendations for the private sector. Government 4 Identify government’s priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Private Sector 5 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or potential future programs or policies. Zone Programs in Kenya On the whole, Kenyan EPZs appear to face several challenges preventing further development. These Kenya’s zone program was established in 1990 with include high costs of production (primarily due the enactment of the Export Processing Zones Act to high energy and transportation costs) and high (CAP 517, Laws of Kenya). All zones are overseen wages, driven up by MFA quotas (which have since and managed by Kenya EPZ Authority. Key char- been phased out).2 With the quotas phased out, acteristics of the program include: Kenya faces intense competition from manufactur- ers in Southeast Asia, particularly in China, India, MM Forty-one operational EPZs in Kenya con- Bangladesh, Vietnam, and Cambodia. National centrated around the following cities: Eldoret, laws and incentives, as well as zone programs, will Nairobi, Athi River, Voi, Malindi, Kilifi, and be critical to maintaining competitiveness. Mombasa. This includes 39 privately owned and operated zones, and 2 publicly owned and In order to meet objectives outlined in the Kenyan operated zones. The largest concentration of government’s Vision 2030, the EPZ program is in zones is in the port city of Mombasa. the midst of transitioning to a special economic MM Enterprises operating in EPZs are required to zone (SEZ) program, which would relax export re- export at least 80 percent of production. quirements for enterprises operating in zones. MM There were 83 enterprises operating in EPZs in 2009, up from 77 in 2008. Nearly 20 percent of This study examined one EPZ in Kenya—Athi the enterprises were wholly owned by Kenyans, River. KEPZA, the zone authority, was inter- 24 percent were joint ventures, and 56 percent viewed to gain a better understanding of the zone were wholly owned by foreign investors. program in Kenya. There were no zone-wide pro- MM Key industries represented in zones include grams specifically targeting women in either the food processing, garments, light manufactur- EPZ visited or the factory with EPZ status vis- ing, and call centers. ited. However, KEPZA officials acknowledged MM There is no restriction on the types of enter- that the zone is a large employer of women, and prises that can operate in zones. However, small many of the enterprises operating within the zone businesses do not typically operate in zones. MM Direct employment in EPZs stood at 30,115 1 Interview: Jonathan Chiffallu, Kenya Export Process- in 2009, reflecting a slight decrease from 2008 ing Zone Authority, May 12, 2010. due to the global economic crisis. The largest 2 Interview, Jonathan Chiffallu, Projects Executive and concentration of workers is in the garment in- Maira Ouya, Corporate Secretary, Kenya Export Pro- dustry (81 percent).1 cessing Zone Authority, May 12, 2010. Kenya Case Study 181 preferred to hire women because of their stabil- nities in the formal sector, and require ad- ity and demeanor. Additional zone information is ditional protections as employees, such as summarized in Table 1. maternity leave and child care. XX Social and Cultural Challenges: Cultural norms dictate women’s home responsi- TABLE 1  ■  Zone Profile bilities and can impact women’s economic Athi River Export Processing Zone participation, and social factors including education, health, child care, and living con- • First publicly developed zone—developed at a cost of US$30 ditions can impact women’s ability to work million. • Amenities provided by the zone: health clinic, zone staff canteen, and excel at work. infrastructure MM Women’s Entrepreneurship Opportunities: • One enterprise provides a child-care center for its workers XX Policies and Access: Female entrepreneurs • There are no dormitories for workers in the zone often lack access to capital and land XX Support Networks and Training: Female entrepreneurs need training on business Obstacles to Women’s Economic skills, management, and market identifi- Participation in Kenya cation, and would benefit from network building among other entrepreneurs and A country’s legal framework and cultural norms within key sectors. play a significant role in determining women’s economic opportunities and fair employment. In This study has also identified replicable good prac- addition, key issues such as education, health, and tices in Kenya, which are outlined in the section living conditions impact women’s ability to excel “Good-Practice Enablers of Women’s Economic and advance in the workplace. Finally, entrepre- Empowerment in Kenya� that follows on page 7. neurship is an area of opportunity where women face unique challenges. Female Workers’ Welfare and This study sought to identify key barriers and en- Advancement ablers within zones that impact women’s fair em- ployment, advancement opportunities, and entre- Legal Policies and Enforcement preneurial investment opportunities across eight Kenya is a republic, led by a president (chief of countries. The study found several common factors state, commander in chief of armed forces), prime across countries that can act as obstacles to or en- minister (head of government), and two deputy ablers of women’s economic empowerment. Poli- prime ministers. Tables 2 and 3 summarize a few cies, initiatives, and business practices can become illustrative conventions and laws currently in place enablers to spur women’s economic participation. that affect women. Women’s entry into the workforce, their welfare, and The political and legal climate in Kenya is rife with retention or dropout rates are affected by a variety change. Corruption is one of the biggest barriers to of factors. For the Kenya Case Study, key themes economic and societal progress. Suspicious election are explored around the following categories: results in late 2007 spurred riots throughout Kenya, ultimately leading to political reform and the draft- MM Female Workers’ Welfare and Advancement ing of a new constitution.3 Responding to concerns XX Legal Policies and Enforcement: Interna- tional and local laws pertaining to female employees and their enforcement. Women 3 U.S. Department of State, 2010 Background Note: Ke- often lack access to employment opportu- nya. (http://www.state.gov/r/pa/ei/bgn/2962.htm) 182 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 2  ■  Ratification of ILO Core Conventions* ILO Convention Ratified or Not 29 Forced Labor Ratified 87 Freedom of Association and Protection of the Right to Organize Not Ratified 98 Right to Organize and Collective Bargaining Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) Ratified * ILO accessed at http://www.ilo.org/ilolex/english/docs/declworld.htm. TABLE 3  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities Law Law Description National or Zone Maternity Leave Employers are required to provide 90-day paid maternity leave. Law is Both consistent with ILO recommendation. Law Against Sexual Harassment General law; does not address sexual harassment in the workplace.1 Both Nondiscrimination Based on Pregnancy or Employers are prohibited from any form of gender-based Both Marital Status discrimination. Law Against Female Genital Mutilation (FGM) FGM is a crime. Both Child Care No law. 2 1   Interview, FIDA, May 14, 2010; FIDA website, http://www.fidakenya.org/cases/Sexual%20harassment%20case.pdf 2   http://www.ilo.org/public/english/dialogue/ifpdial/info/national/ken.htm. Also, p29: http://daccess-ddsny.un.org/doc/UNDOC/GEN/N00/342/51/IMG/N0034251. pdf?OpenElement over rampant corruption, the draft constitution in- Labour Organization (ILO) recommendations, re- troduces additional checks and balances on execu- quiring employers to provide 90 days of paid leave. tive power and greater devolution of power to the As the law has been implemented, there have been subnational level. a number of instances of factories firing pregnant workers or workers who may become pregnant in Human rights and workers’ rights have generally order to avoid paying for the leave.5 In addition, expanded in the past decade, but not without chal- the government reported challenges in getting ac- lenges. Government monitoring of enterprises op- cess to zones to monitor practices. erating in zones has shown that not all laws are being upheld, or in some instances, when they are 4 Interview: Betty Soita and Hellen Wasilwa, Ministry of upheld, they are causing unintended consequences Labor, May 10, 2010. for women.4 For example, a new maternity leave 5 Interview: Betty Soita and Hellen Wasilwa, Ministry of law was passed in 2008 to align with International Labor, May 10, 2010. Kenya Case Study 183 Up until 2003, workers in Kenyan zones were turing. Primary exports are tea, coffee, horticultural banned from joining trade unions. In 2003, over products, petroleum products, and cement.8 GDP 15,000 workers, most of them women, went on per capita is around US$770, with a meager annual strike to protest pay below minimum wage, lack GDP growth rate of 1.7 percent in 2008 and 2009.9 of medical insurance, lack of paid sick leave, re- Total 2008 exports were US$4.4 billion,10 with the pression of trade unions, excessive and unpaid following major trading partners (by percentage of overtime, and sexual harassment. The strikes ul- exports): Uganda (12.3 percent), United Kingdom timately led to a collective bargaining agreement (11.0 percent), and Tanzania (8.5 percent).11 for 10,000 workers, negotiated by the Tailors and Textile Workers’ Union. Unfortunately, inter- Kenya benefits significantly from the African views for this study revealed that many of the cir- Growth and Opportunity Act (AGOA). Ninety- cumstances workers protested in 2003 still exist four percent of AGOA exports are garments, but today.6 the Kenyan garment and textile industry is strug- gling to hold its ground against competition from The coming years will be critical to Kenya’s eco- Asia, where labor is cheaper. Currently there are 19 nomic and social development, as citizens and law- apparel factories, 1 yarn/fabric company, and 6 ac- makers shape key laws and reform past practices. cessory companies (labels, sewing supplies, hang- There is a new law in development regarding HIV/ ers) operating in the EPZs.12 AIDS, gender equality, and sexual harassment, which stands to be another important step forward The Kenyan economy is also undergoing privatiza- for women in Kenya, assuming the government tion. The Privatization Law became operational in can improve enforcement. 2008, it aimed to spur private-sector investment in the region and increase economic stability. Social and Cultural Challenges Kenya ranked 93rd out of 134 countries in the Kenya is located in East Africa, bordering Ugan- World Economic Forum’s 2008 Global Competi- da, Sudan, Ethiopia, Somalia, and Tanzania. It has tiveness Index, reflecting an improvement of six a population of 39 million,7 with the largest con- places from 2007. Reasons for the improvement centration in Nairobi. Nairobi continues to be the included high company spending on research and primary communications and financial hub of East development, and increased collaboration between Africa because of its transportation linkages, com- munications infrastructure, and trained personnel. The rest of the Kenyan population is widespread 6 Perman, S. et al, “Behind the Brand Names: Working throughout rural communities. English is the official conditions and labor rights in export processing zones�, language and nearly all Kenyans speak both English International Confederation of Free Trade Unions and Swahili, in addition to a local tribal language. (ICFTU), December 2004. 7 U.S. Department of State, 2010 Background Note: Ke- nya. (http://www.state.gov/r/pa/ei/bgn/2962.htm) Kenya is classified as having “Medium Human 8 U.S. Department of State, 2010 Background Note: Ke- Development,� with a ranking of 147th out of 182 nya. (http://www.state.gov/r/pa/ei/bgn/2962.htm) countries in UNDP’s Human Development Re- 9 U.S. Department of State, 2010 Background Note: Ke- port 2009—the lowest ranking among the coun- nya. (http://www.state.gov/r/pa/ei/bgn/2962.htm) 10 U.S. Department of State, 2010 Background Note: Ke- tries studied in this global research initiative. nya. (http://www.state.gov/r/pa/ei/bgn/2962.htm) 11 UN Statistics Division, World Statistics Pocketbook, The Kenyan economy depends heavily on the follow- 2007, (http://data.un.org/CountryProfile.aspx?crName= ing industries: tourism, petroleum products, grain Kenya) and sugar milling, horticulture, cement, beverages, 12 U.S. Department of State, 2010 Background Note: Ke- textiles, vehicle assembly, paper, and light manufac- nya. (http://www.state.gov/r/pa/ei/bgn/2962.htm) 184 Fostering Women’s Economic Empowerment through Special Economic Zones the scientific community and the private sector. workers.19 Interviewees reported that formal, long- Corruption, government inefficiencies, poor health term contracts are rare for workers, particularly fe- indicators, and security concerns were the primary male workers.20 reasons that Kenya continued to have an overall low ranking.13 With a large portion of the popula- In 2008, women’s labor force participation was tion fluent in English, call centers represent a sig- 74.1 percent.21 Female unemployment rates are nificant opportunity for economic growth.14 Ac- trending positively, dropping from 24.3 percent in cordingly, the Kenyan government has announced 2004 to 18.6 percent in 2007. The primary barrier the development of an EPZ outside of Nairobi de- to women’s participation in the workforce appears signed to attract more investors and enterprises in to be the lack of jobs; interviewees reported that the information technology (IT) industry. the majority of women are employed in agriculture and the informal sector. In addition, stakeholders Key social and economic indicators are summa- commented that many women who have jobs face rized in Table 4, which is followed by contextual grim working conditions, underpayment relative information, including the perceived challenges to men, and rampant sexual harassment.22 Because and barriers to greater gender empowerment. of the high levels of unemployment, interviewees explained, women frequently refrain from report- Education ing abuses to authorities. The first eight years of primary school are pro- vided tuition-free by the government. In Janu- Health ary 2008, the government began offering a pro- Poor nutrition, malaria, maternal mortality and gram of free secondary education, subject to some morbidity, and HIV/AIDS are key health con- restrictions.15While the overall proportion of the cerns throughout Kenya. Officially, national HIV population being educated is low, the quality of prevalence is just under 5 percent.23 However, in- education is perceived to be better than that in terviews uncovered that less than 40 percent of surrounding countries.16 The combined gross en- rollment rate for primary and secondary education was 59.6 percent in 2007.17 Literacy is generally 13 World Economic Forum, “Global Competitiveness high and only slightly lower among women than Report 2008–2009.� (http://www.gafinet.org/English/ men, with literacy rates of 70.2 percent and 77.7 Publications/GlobalCompeti.Repor2008-2009pdf.pdf ) 14 Interview: Sarah Ochieng, Office of the Prime Minis- percent, respectively.18 ter, May 11, 2010. 15 U.S. Department of State, 2010 Background Note: Ke- On-the-job training is rare in Kenyan factories. nya. (http://www.state.gov/r/pa/ei/bgn/2962.htm) There are no incentives for employers to train 16 World Economic Forum, “Global Competitiveness workers given the abundant supply of workers rel- Report 2008–2009.� (http://www.gafinet.org/English/ ative to job opportunities. Workers are expected to Publications/GlobalCompeti.Repor2008-2009pdf.pdf ) 17 Human Development Index: Kenya Factsheet, 2007 pay for training on their own and report to poten- data. (http://hdrstats.undp.org/en/countries/country_ tial employers with the necessary skills to do the fact_sheets/cty_fs_KEN.html) job. This poses a significant challenge for women 18 UNDP Human Development Report 2009 (2007 data) as they rarely have personal savings or financial 19 U.S. Department of State, 2010 Background Note: Ke- support from a family member. nya. (http://www.state.gov/r/pa/ei/bgn/2962.htm) 20 Interview: Rebecca Wanjiku, Fireside Communica- Employment tions, May 11, 2010. 21 UN Statistics Division, World Statistics Pocketbook, There is a significant lack of employment opportu- 2008, (http://data.un.org/CountryProfile.aspx?crName= nities in Kenya relative to the population looking Kenya) for work. While there are 1.95 million formal-sec- 22 Interviews, various, May 2010. tor workers, there are 6.4 million informal-sector 23 UNAIDS, Report on the Global AIDS Epidemic, 2008. Kenya Case Study 185 TABLE 4  ■  Socioeconomic Indicators: Kenya Total Adult Female Ratio: Female Indicator Population Population to Male % of population living on less than US$1.25, US$2 per day 9.7%, 39.9% Education (combined primary, secondary, tertiary) 59.6% 58.2 0.95 Literacy (for ages 15+) 66.4% 70.2% 0.90 Labor force participation 74.1% 0.85% Unemployment 8.9% Earned income (PPP US$ annually) 1,213 0.65 Major Religions Primary Christian (80%) Other Muslim (10%), traditional African religions (10%) Gender Measures Gender-related development index (GDI) 0.538, Rank 121/155 ranked countries Gender empowerment measure (GEM) Not available Women-held seats in parliament, women in government at ministerial level 7.3, not available Female legislators, senior officials, managers Not available Female professional and technical workers Not available Women with unmet family planning needs 10.3% Births attended by skilled health professional 42% Maternal mortality rate (per 100,000 live births) 560 Source: UNDP Human Development Report, UN Statistics Division, World Statistics Pocketbook, U.S. Department of State, DHS. Kenyans know their HIV status, and some esti- property security risk, and reliance on stolen elec- mate that closer to 1 in 5 Kenyans are infected.24 tricity and pay-for-use water.25 Women are particularly affected by the epidemic, as they are biologically more vulnerable to sexual Factories generally do not provide dormitories for transmission and it is their societal responsibility workers. Interviews with female factory workers to care for sick family members. found that women with children opted to live in the slums for K Sh 800–1,000 per month so that they Housing could afford to pay an estimated K Sh 2,000 per Given that nearly 40 percent of the Kenyan popu- month in child care. A single woman interviewed lation lives on less than US$2 a day, the large ma- said that she lived outside the slum and paid ap- jority of workers live in slums. Poverty prevents proximately K Sh 3,000 per month in rent.26 many women from being able to afford child care, and children are often left in the slums with fam- 24 Interviews, Kenya HIV/AIDS Business Council & Ke- ily and friends while mothers go in search of day nya Network of Women With AIDS, May 14 & 17, 2010. labor. Other risks and challenges associated with 25 Interviews, various, May 2010; Kibera slum visit and living in the slums include extremely poor sanitary interviews, May 13, 2010. conditions, lack of access to clean water, shared 26 Interview, Female factory workers, Factory, Nairobi, toilets and cooking implements, high personal and May 18, 2010. 186 Fostering Women’s Economic Empowerment through Special Economic Zones Religion and Culture Policies and Access While women are less visibly restricted in Ke- Female entrepreneurs face the following access nya than in other countries studied in this global challenges to investing in zones in Kenya: initiative, they still shoulder a disproportionate amount of family responsibilities relative to men MM Lack of collateral, especially land ownership and are discriminated against in society based on rights: In Kenya only 1 percent of land titles entrenched norms and gender roles. This includes are owned by women, with an additional 5 to 6 the “double burden� expectation that women will percent held jointly by women and men.30 both take care of children and work full-time to MM Bureaucratic and corrupt administrative re- support the family. quirements for starting a formal business: Fe- male entrepreneurs interviewed for this study Kenyan women are subjected regularly to sexual advised hiring a lawyer to navigate bribery re- violence, in the workplace, the community, and quirements in the process. the home.27 The conservative Catholic faith prac- MM Lack of access to finance: Entrepreneurs are ticed by the majority of Kenyans has traditionalist required to have a business entity established views of women. In some cases, religious and cul- before applying for a loan (see above). Interest tural norms can result in barriers to financial inde- rates are very high. Banking is also dominated pendence and sexual freedom. A married female by men, and many women are intimidated by factory worker interviewed for this study reported this. Women-focused bank branches started by turning over her weekly wages to her husband,28 Equity Bank have been highly successful. and the Kenyan government banned abortion in MM Confinement to small businesses in female- March 2010 (though a fierce debate is ongoing). dominated sectors: Women lack opportunities FGM and arranged marriages are common in the and resources to show handicrafts and other northern areas bordering Somalia, where the pop- products at international trade shows and get ulation is majority Muslim.29 the attention needed to enter export markets. Kenyan law regarding land ownership rights will Women’s Entrepreneurship need to be modified to improve women’s access Opportunities to loans. Women-oriented banking products and Women’s economic empowerment through en- services can help make the process of applying trepreneurship opportunities in zones depends on for a loan easier. Zone authorities can work to- (1) policies and access, and (2) support networks gether with banks, microfinance institutions, and and training. women’s entrepreneur groups to build links and support systems for female entrepreneurs. In ad- This study hosted a focus group of seven female dition, existing banks within zones could develop entrepreneurs in Kenya in May 2010. Although gender-equitable service offerings, such as loans Kenya has a strong culture of female entrepre- available to women. neurship in the informal economy, much of the potential to link these activities to exports and to provide investment opportunities in zones remains untapped. Many women feel empowered to start 27 Interview, International Federation of Women Law- their own business, such as creating crafts and sell- yers: Kenya (FIDA), May 14, 2010. 28 Interview, Female factory workers, Factory, Nairobi, ing items at local markets. However, women lack May 18, 2010. access to capital, proper training, and local and in- 29 Interview, Chrisine Ochieng, FGM/C Joint Program, ternational networks to scale their businesses into Ministry of Gender, May 10, 2010. sustainable operations. 30 IFC, “Voices of Women Entrepreneurs in Kenya�, 2007, pp 1. Kenya Case Study 187 Support Networks and Training vieweedescribed it as “a vicious cycle of thinking you Interviewees said that women face challenges in are ready to move to the next level, but then finan- particular in starting and growing businesses be- cially, you are not ready. It’s very hard to break from cause of a lack of know-how and networks. When small to medium, and from medium to large.�32 they start a business, women often don’t know where to begin—for example, women often overlook cre- ating a well-thought-out business plan when they Good-Practice Enablers of Women’s are faced with more immediate demands. Economic Empowerment in Kenya Female entrepreneurs interviewed reported that Through fieldwork and other research, this study one of their greatest needs was access to training identified policies, initiatives, and business practices and mentors. Interviewees in Kenya explained that that support economic opportunities for women female entrepreneurs often learn through accidents and increase competitiveness for enterprises and and emergencies—for example, they may learn zones. The following programs represent good prac- about taxes when the tax man comes to report that tices identified in Kenya that have the potential to they haven’t filed properly. Female entrepreneurs be replicated in other zones or enterprises in Kenya, need experts and mentors to teach them the ba- as well as in zones or enterprises in other countries. sics and prepare them for what is to come. Inter- viewees said they would benefit from a “one-stop� center where they could access training and tools Enablers for Female Workers’ (like computers), seek advice, and receive mentor- Welfare and Advancement ing from their peers and from successful business- women. Flower Farm Gender Committees MM Enabler Type: Legal There are some existing training programs, but few MM Who: Flower Farm Enterprise small-scale female entrepreneurs know how to ac- MM Where: Naivasha, Kenya cess them, and they are often unable to use other MM Time frame: 2004–present (as of June 2011) existing resources because of lack of awareness or MM Cost: Small cost, mostly for training of com- skills. For example, the Export Council provided mittee members information about exporting on its Web site and MM Benefit to women: Increased health awareness offered one-on-one assistance in four centers in and fewer unplanned pregnancies; decrease in Nairobi, but too few people, particularly women, workplace sexual harassment knew about the services or where they were avail- MM Benefit to business: Reduced health- and able. Another program, in the Athi River Zone, pregnancy-related absenteeism; improved sta- offers a cooperative program sponsored by Com- bility and productivity; improved worker-man- monwealth, which allows people to lease a space agement relations for cooperative use. This is a useful opportunity for women especially, because they lack the capi- This cut-flower farm in Kenya’s Naivasha region tal to expand to an export scale independently, has established an innovative system of gender but the EPZ wants applicants to show a business committees, as subcommittee of the already estab- plan before it will sign an agreement with them. lished workers’ association. The gender committees This requirement eliminates most women because enable the farm’s human resources department they don’t have time to make a business plan, don’t to monitor and address women-specific issues know how, or don’t want to.31 by working directly with female workers on the Finally, taking businesses to scale was a challenge 31 Female entrepreneur focus group, Kenya, May 2010. that extended beyond export sectors—one inter- 32 Female entrepreneur focus group, Kenya, May 2010. 188 Fostering Women’s Economic Empowerment through Special Economic Zones committees. The farm established the committees Since establishing the gender committees, the farm in response to a growing awareness among man- has seen a reduction in unplanned pregnancies, an agement of unplanned pregnancies, HIV/AIDS increase in HIV/AIDS awareness, an increase in infection, and sexual harassment experienced by condom use, and a reduction of workplace sexual female workers. These challenges were recognized harassment as well as active worker participation by management as a serious risk to stability, safety, in developing a workplace sexual harassment pre- and productivity in the workplace, yet the work- vention policy.33 ers’ association (dominated by men at the time) seemed unable to identify or address the issues. Worker Bank Accounts & Factory Direct When the committees were first established in Deposit 2004, the company faced some challenges with MM Enabler Type: Social getting them set up. The biggest challenge was a MM Who: Africa Apparels factory; KCB Bank lack of understanding among committee mem- MM Where: Nairobi, Kenya bers of their proper roles and responsibilities, MM Time frame: 2008–present (as of June 2011) which resulted in some initial conflicts with su- MM Cost: US$500/month pervisors. To address this, the company invested MM Benefit to women: Lower risk of having wages in capacity-building training programs to help the stolen; increased security; increased likelihood committee members understand their roles and of savings. responsibilities, and to ensure effective manage- MM Benefit to business: Lower-cost system for ment of each role. Examples of training topics in- disbursing wages (compared to high cost of se- clude communication, running effective meetings, curity associated with a cash payroll system). leadership, rights and responsibilities, HR policies and procedures, challenges women face in man- One factory in this study had established a part- agement, and others. nership with a Kenyan bank, KCB, to make checking and savings accounts available to its Another challenge was a misunderstanding by the workers through reduced deposit minimums. workers of what the gender committees should be The factory established this system to address responsible for—many inappropriate issues were the high cost of security associated with the cash brought in front of the committees in the begin- payroll—including a person to dispense cash, a ning, so the proper role of the committees needed guard for cash transit, and police hired for payroll to be communicated to the workers as well. A final day—and to reduce the security risks encoun- challenge was encouraging women to take up po- tered by workers when carrying cash home. In all, sitions as committee members, made difficult by a the factory estimated US$300 per month in hard cultural view of women as inferior and incapable savings on insurance costs, as well as significant of taking positions of authority, according to a cost savings in reduced administrative burden company HR manager. and reduced risk. It now pays workers through direct deposit into their KCB accounts.34 The Addressing these challenges and making the com- program had been active for 3 years as of January mittees successful required patience and guidance 2010. from more senior HR staff. Another lesson learned was that after this initial hand-holding period, To ensure that workers would take advantage of workers became highly capable of addressing the the program, the factory conducted outreach to issues assigned to them with minimal supervision. Encouraging this sense of ownership by workers’ 33 Interview and site visit, flower farm, Kenya, May 2010. committee members will help make such commit- 34 Interviews, Factory management, Nairobi, May 18, tees successful. 2010. Kenya Case Study 189 workers to explain the benefits of banking. How- MM Various training methodologies: peer educa- ever, the program has still faced some challenges. tion, a counseling-skills course for human re- Some workers complain that the bank charges for sources staff, training for CEOs and for health- withdrawing cash are too high for them. The fac- care providers; tory has worked in partnership with the bank to MM Mobile voluntary counseling and testing reduce charges for workers. (VCT) services; MM Advocacy: including outreach at the policy The system also encounters some cultural barriers level, with top management within a company, in delivering full benefits to female workers. In and broader sensitization campaigns; interviews, two married female factory workers MM Management, coordination, and strategy: in- told different stories: one withdrew her full pay- cluding policy development, corporate com- check and carried it in cash to the slums to turn mitment, advocacy for workplace program over to her husband, while the other said the ac- implementation, resource mobilization, and count enabled her to keep some finances separate capacity building and technical support; from her husband, like those that she used for MM Monitoring and evaluation of workplace HIV/ her children’s school fees and food for the family. AIDS programs; and The second woman also said she that was try- MM Condom distribution.36 ing to use the account to save a small amount of money so she could someday buy a plot of land The program intends to reduce the impact of in the country. The group that appears to benefit HIV/AIDS on both employees and businesses. the most from this system, however, is unmar- The business case for workplace HIV/AIDS pro- ried women, who are able to build savings before grams rests on the mitigation of costs associated marriage and reduce dependence on their future with high prevalence rates among employees and husbands.35 their families, such as high rates of absenteeism, reduced productivity, and high medical costs. HIV/AIDS Workplace Programs MM Enabler Type: Social Young Women In Enterprise Training MM Who: Kenya HIV/AIDS Business Council Program MM Where: Throughout Kenya MM Enabler Type: Advancement MM Benefit to women: Improved health and de- MM Who: TechnoServe creased risk of contracting HIV/AIDS, re- MM Where: Slums throughout Kenya duced medical costs MM Benefit to women: Increased skills and em- MM Benefit to business: Decreased health-related ployability. absenteeism, decreased turnover, and decreased MM Benefit to business: Higher-skilled workers medical costs (for companies that pay worker and increased ability to promote from within medical benefits) (which costs less than hiring from outside) Because of the high prevalence and risk of HIV/ TechnoServe in Kenya has a Young Women in AIDS in Kenya, many organizations and companies Enterprise Program that seeks to build adolescent have established workplace HIV/AIDS programs. The Kenya HIV/AIDS Business Council offers a sophisticated example of such programs, which it 35 Interviews, Female factory workers, Nairobi, May 18, 2010. implements for some of its business members. 36 Interview, Kenya HIV/AIDS Private Sector Business Council (KHBC), May 14, 2010; KHBC website, visit- Its comprehensive HIV/AIDS workplace program ed 06/28/10, http://www.khbcnetwork.org/ourservices. includes: php 190 Fostering Women’s Economic Empowerment through Special Economic Zones girls’ and young women’s skills and connect them Innovations to Further Female to formal-sector job opportunities. TechnoServe Workers’ Welfare and Advancement works with secondary schools and community programs in the slums to reach the target 15–25 Legal: Encouraging Permanent Worker age group. The training program focuses on busi- Contracts ness skills, life skills, communication, and entre- Because of the very limited number of formal-sec- preneurship. Interestingly, the original objective tor jobs in Kenya, low-wage workers in the formal of the program was to help young women start sector are often considered replaceable. This has led their own businesses, but the young women over- to the widespread practice of giving workers only whelmingly preferred formal employment oppor- temporary contracts, including within the EPZs. tunities and requested training to help them ac- According to EPZ management interviewed for cess such opportunities. Once young women have the study, temporary contracts are also used as a gone through the initial training program, they buffer against unpredictable buying patterns of the are connected with CareerLink, a job-placement international companies sourcing products from partner of TechnoServe that helps women find export manufacturers. Companies frequently hire jobs, including in zones. Both CareerLink and back the same workers the same day or the day TechnoServe also become resources to the par- after they have fired them. ticipating women to help them understand their rights, and to serve as advisers in instances of Women are disproportionately vulnerable to this rights violations.37 practice because of a combination of factors. First, Kenyan law includes some strong protections This program provides employers in EPZs with for women, particularly around maternity leave, skilled and educated young women, free of cost, which make employers reluctant to take women who are able to communicate effectively within under permanent contract, as they are not obli- the workplace. Barriers to this business case’s rel- gated to provide benefits to temporary workers. evance to the Kenyan export sector are the high Second, women are considered less skilled gener- levels of unemployment and the widely held per- ally and often have a more difficult time obtain- ception that workers are easily replaceable. ing a job than men. Finally, the temporary nature of their contracts is frequently used by manage- ment as a means to solicit sexual favors from fe- Remaining Challenges and male factory workers. Opportunities for Innovation in Kenya The Kenyan Export Processing Zone Authority (KEPZA) can play a larger enforcement role in While uncovering best practices, the study also ensuring that permanent contracts are in place. The identified major barriers and poor practices that current circumstances create work environments affect women trying to enter the workforce, with extremely high turnover, where only a small achieve upward mobility, or start their own busi- percentage of workers are skilled, and where abuse ness in Kenya’s free zones. The following programs and harassment are common and distract manage- reflect areas where further innovation and program ment from productivity priorities. If undertaken by development could address remaining challenges KEPZA, permanent contract enforcement could to women’s economic empowerment in Kenya in become a component of the zones’ “one-stop- trade zones and beyond. shop� offerings to international buyers. Interview, Technoserve and CareerLink, May 11, 2010. 37 Kenya Case Study 191 Legal: Addressing Sexual Violence in the Innovations to Promote Female Workplace Entrepreneurship Sexual violence is highly common in Kenya, par- ticularly in rural areas.38 Interviews revealed that Access: Expansion of Gender sexual harassment is a common practice in the Mainstreaming to Zone Development workplace—sexual favors are often required in The Kenyan government is actively transitioning exchange for work or advancement opportunities, the EPZ program to a special economic zone (SEZ) such as renewing a female worker’s temporary program, which would relax export requirements contract, offering a second day of work for daily for enterprises operating in zones. The Kenyan gov- workers, granting a promotion or a raise, or pro- ernment has already committed to mainstreaming viding preferential treatment in the instance of gender considerations throughout all agencies and a mistake or misbehavior.39 Women are unlikely government ministries. Given this, there is oppor- to report incidents of abuse because prevention tunity to extend the gender-mainstreaming efforts policies have not been adopted or communicated into zone development planning to ensure that effectively, because of the stigma associated with women’s employment needs are addressed. For ex- sexual harassment, or out of fear of losing their ample, zones could be established that more proac- job. tively support small, female-owned businesses, con- necting female entrepreneurs to materials suppliers Some workplaces have been successful at estab- and export markets. This would have the benefit of lishing a policy and reducing the incidence of both increasing women’s participation in the work- sexual harassment (see the good-practice example force and bringing additional businesses to zones. on page 8). KEPZA can encourage similar im- provements within the export zones by advocat- ing the adoption of sexual harassment policies and Networks: Creation of Female improving monitoring and enforcement when ha- Entrepreneur Center rassment does occur. Female entrepreneurs interviewed in Kenya said that female entrepreneur centers were needed: Sexual harassment is extremely harmful to work- places where women could access information and ers’ morale and to the promotion of a transpar- training on topics like writing a business plan, cre- ent and safe workplace, and can interfere with ating a budget, and ICT skills, and could enroll productivity. Most international buyers prohibit in mentorship programs with other female entre- sexual harassment in the workplace in their codes preneurs. The culture of entrepreneurship is very of conduct. Addressing sexual violence in export- strong, but to help them grow their businesses in zone workplaces is a critical step to enhancing the size and scope—that is, to enter the export sec- international competitiveness of Kenya as a sourc- tor—women need training and support networks. ing destination. A first step should be expanding Interviewees felt that a center of this kind would Kenya’s sexual harassment law to explicitly address become self-sustainable over time, but would re- sexual harassment in the workplace. quire substantial initial investment in securing a physical space, purchasing equipment (such as computers and software), and marketing the cen- ter’s services and amenities. 38 Interview, Family Health Options, May 18, 2010; In- terview, KENWA, May 17, 2010. 39 Interview, Technoserve and CareerLink, May 11, 2010; Interview, KEPZA, May 12, 2010. 192 Fostering Women’s Economic Empowerment through Special Economic Zones Resources: Key Gender Stakeholders in Kenya Organization Location Focus Area African Economic Research Consortium (AERC) Nairobi Research institution Center for Rights, Education, and Awareness (CREAW) Nairobi Workers’ rights Family Health Options Nairobi and Reproductive health, HIV/AIDS and family planning branches information and services Federation of Women Entrepreneurs Associations (FEWA) Nairobi Women’s entrepreneurship Federation of Women Lawyers, Kenya (FIDA) Nairobi Women’s rights, workers’ rights Global Business Coalition on HIV/AIDS Nairobi HIV/AIDS ILO Growth Oriented Women Entrepreneurs (GOWE) program Nairobi Workers’ skills development, entrepreneurship JamiiBora Bank Nairobi Microfinance Kenya HIV/AIDS Business Council Nairobi HIV/AIDS Kenya Human Rights Commission Nairobi Workers’ rights, human rights, labor rights Kenya Network of Women Living with AIDS Nairobi, Mombasa HIV/AIDS, women’s empowerment, women’s networks and entrepreneurial activities Kenya Women Finance Trust Nairobi Microfinance for women National Council of Women of Kenya Nairobi 150 affiliated women’s organizations; focal point for NGO implementation of the Beijing Platform for Action One Kid, One World Nairobi, branches Child care and education, women’s empowerment Swedish Workplace HIV/AIDS Programme Nairobi HIV/AIDS TechnoServe Nairobi Workers’ skills development, entrepreneurship UNIFEM, East and Horn of Africa Sub-Regional Office Nairobi Regional financial and technical support Philippines Case Study: Fostering Women’s Economic Empowerment through Special Economic Zones T his case study examines the role special zones if they are addressed directly and effectively economic zones (SEZs) can play to cre- through policies and programs at the government, ate regulatory frameworks and initiatives zone, and enterprise levels. As such, the study that promote women’s economic participation as presents numerous examples of good practices. In a way to boost trade zone competitiveness and addition to a small number of relevant replicable sustainable jobs. This case study supports a global practices in zones, the study also finds useful ex- research initiative to uncover good practices for amples outside of zones that could be replicated women’s economic advancement within the zones within zones. and define a practical approach to design, promote, and implement gender-inclusive SEZs across the The Republic of the Philippines (hereafter the globe. Findings are based on field research in eight Philippines) was selected for inclusion in the study countries, as well as a global literature review. because of the maturity of its zone program, the high prevalence of female workers in the zones, and To support women’s improved economic partici- the importance of the zones in attracting foreign pation in zones, this study seeks to identify good- direct investment. Additionally, service industries practice programs and policies that can be imple- such as call centers and business process outsourc- mented by SEZs throughout the world to promote ing firms (BPOs) are growing much more rapidly women’s advancement at three levels: in Philippine economic zones than manufacturing. Therefore, lessons learned from the Philippines can MM Working conditions for female workers be extended to other low-wage English-speaking MM Opportunities for upward mobility countries where this trend is also apparent—such MM Investment opportunities for female entrepre- as India, Malaysia, and Indonesia.1 neurs In doing so, the study identifies key legal and regu- Methodology latory issues, social and cultural constraints, lack of support services, and investment-climate issues This case study is based on findings from a com- affecting women as the main obstacles to decent bination of stakeholder organization interviews, working conditions, upward mobility, and invest- qualitative factory-based research, and desk re- ment opportunities within SEZs. The study argues that these obstacles can also be used positively as 1 Business Process Outsourcing: process, strategies, and “enablers� for women’s economic participation in contracts.(2007) John K. Halvey, Barbara Murphy Melby. 194 Fostering Women’s Economic Empowerment through Special Economic Zones Stakeholder Type Number Objective of Engagement Civil Society 5 Determine challenges facing Bangladeshi women at work and at home, and learn about programs and policies seeking to address those challenges. Female Entrepreneurs 2 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/owning a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Workers’ Organizations 3 Identify labor rights issues unique to women, challenges to their resolution, and recommendations for the private sector. Government 5 Identify government’s priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Private Sector 7 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or potential future programs or policies. search. The study included 22 one-on-one and The Bases Conversion & Development Act of 1992 group interviews with civil society, workers’ orga- established the Bases Conversion & Development nization, government, and private-sector stake- Authority (BCDA) to oversee the conversion of holders (including international buyers and factory former military bases into productive areas for ci- managers). vilian use. The Subic and Clark free trade zones— former U.S. military bases—are overseen by the BCDA (not PEZA) and managed by the Subic Zone Program in the Philippines Bay Metropolitan Authority (SBMA) and the Clark Development Corporation (CDC), respec- The history of the Philippines’ zone program dates tively. In order to retain the ownership of the land, back to the 1970s, when there were four export BCDA has a policy requiring foreign companies to processing zones (EPZs); the program has since develop the zones as a joint venture with local Phil- evolved to include over 200 Ecozones.2 In the ippine companies. Although both free trade zones Philippines, “Ecozone� is the term that describes are of a similar historical nature, CDC has greater any type of SEZ—including industrial estates, ex- autonomy, as it is registered as a private corporation port processing zones, free trade zones, and tour- with its own officers and board of directors, while ist and recreation centers.3 Businesses in Ecozones SBMA is an affiliated agency of BCDA. are not limited to exporting activities; they can also use the zones for medical, tourism, and real estate Companies in zones that are engaged in exporting purposes. activities enjoy additional incentives if 50 percent4 or more of their revenue is from overseas, as stated The Special Economic Zones Act, established in by the Export and Development Act (EDA) of 1995, formed the Philippines Economic Zone Authority (PEZA) to manage and attract foreign investors to the Ecozones in the Philippines. Com- 2 Philippines Economic Zone Authority (http://www. panies or organizations that build the infrastructure peza.gov.ph/index.php?option=com_content&view=ar and necessary facilities for the companies operating ticle&id=77&Itemid=84) 3 Special Economic Zone Act of 1995 (http://actrav.itci- in Ecozones are termed “developers.� Developers lo.org/actrav-english/telearn/global/ilo/frame/epzppi. could be PEZA for the public zones, local and na- htm) tional government initiatives, or the private sector 44 Philippines Economic Zone Authority (http://www. for other types of zones. An operating company in peza.gov.ph/index.php?option=com_content&view=ar an Ecozone is referred to as a “locator.� ticle&id=77&Itemid=84) Philippines Case Study 195 1994. They are qualified by one of the accredited in- including an income tax exemption for four stitutions, namely, PEZA, BOI, the Garments and years, extendable up to eight years, and exemp- Textile Export Board, SBMA, CDC, Philippine tion from export taxes, wharfage dues, imposts, Exporters Confederation, Inc. (Philexport), and the and fees, as well as other incentives. Philippine Chamber of Commerce and Industry. The study included interviews at two zones in the Key characteristics of the Philippine Ecozone pro- Philippines—Cavite Economic Zone and Laguna gram include the following: Techno Park—as well as with PEZA, the zone au- thority, to gain a better understanding of the zone MM As of July 2010, there were 229 zones in the program in the Philippines. Additional informa- Philippines, of which 4 are public zones man- tion about these zones is summarized below in aged and owned by PEZA.5 Table 1. MM Key industries operating in zones include tex- tiles and apparel, automotives, and electronics. BPOs and call centers represent a large per- Obstacles to Women’s Economic centage of locators and are the fastest-growing Participation in the Philippines segment. MM The Special Economic Zones Act of 1995 A country’s legal framework and cultural norms states that labor law in zones is consistent with play a significant role in determining women’s national labor law. economic opportunities and fair employment. In MM Migrant labor cannot exceed 5 percent of a fac- addition, key issues such as education, health, and tory’s employee base in zones. MM Zones focusing on manufacturing activities 5 Philippines Economic Zone Authority (http://www. were the primary focus of this study. Locators peza.gov.ph/index.php?option=com_content&view=ar in these zones receive incentives from PEZA, ticle&id=77&Itemid=84) TABLE 1  ■  Zone Profiles Cavite Economic Zone Laguna Techno Park Industries Operating in Zone • Apparel and electronics are the largest • Electronics is the largest industry industries • Other industries represented include automo- • Other industries represented include other light tives, plastics, chemicals, pharmaceuticals, manufacturing and warehousing/logistics and warehousing/logistics Factories Operating in Zone • 347 • 209 Workers Employed in Zone • 64,000 • 92,000 Female Workers Employed in Zone • 67% • 75% Wages and Benefits • Minimum wage is observed inside the zone • Minimum wage is observed inside the zone Amenities Provided by the Zone • Banks • Banks • TESDA training center • Customs office • Social Security office • Medical facilities • Recreational facilities • Social hall • Post office • Customs office • Fire trucks • Ambulance Dormitories • None • None 196 Fostering Women’s Economic Empowerment through Special Economic Zones living conditions impact women’s ability to excel building among other entrepreneurs and and advance in the workplace. Finally, entrepre- within key sectors. neurship is an area of opportunity where women face unique challenges. This study has also identified replicable good prac- tices in the Philippines, which are outlined in the This study sought to identify key barriers and en- section that follows on page 9. ablers within zones that impact women’s fair em- ployment, advancement opportunities, and entre- preneurial investment opportunities across eight Female Workers’ Welfare and countries. The study found several common factors Advancement across countries that can act as obstacles to or en- ablers of women’s economic empowerment. Poli- Legal Framework and Impact on Women cies, initiatives, and business practices can become The primary law affecting workers in the Philip- enablers to spur women’s economic participation. pines is the Labor Code. As shown in Tables 2 and 3, the Philippines is a signatory to many in- Women’s entry into the workforce, their welfare, ternational conventions—including all the eight and retention or dropout rates are affected by a ILO Core Conventions—and it has a robust set variety of factors. For the Philippines Case Study, of laws, regulations, and constitutional protections key themes are explored around the following for women. However, the impact of these legal categories: safeguards is inconsistent. The Philippines’ decen- tralized system makes it unclear how regulations MM Female Workers’ Welfare and Advancement can be effectively enforced, including gender laws XX Legal Framework: International and local and regulations that companies should comply laws pertaining to female employees and with. Some interviewees were concerned that too their enforcement. Women often lack ac- many regulations are stifling business innovation, cess to employment opportunities in the while others alleged that overregulation is an ex- formal sector, and require additional pro- cuse that the private sector commonly uses to try tections as employees, such as maternity to avoid its responsibilities.6 leave and child care. XX Social and Cultural Factors: Cultural The Philippines has ratified ILO Conventions 87 norms dictate women’s home responsi- and 98 and its Labor Law upholds the rights of bilities and can impact women’s economic Freedom of Association and Collective Bargain- participation, and social factors including ing. However, many interviewees for this study ex- education, health, child care, and living con- pressed concern about the relatively small number ditions can impact women’s ability to work of unionized companies and collective bargaining and excel at work. agreements within zones. Some claimed that this XX Professional Advancement: Advancement is due to an unspoken “no union� policy within opportunities for women are tied to educa- zones, while others attributed this phenomenon tion and skills development, and also influ- to the ineffectiveness of unions and the need enced by social and cultural factors. for unions to rethink their approach to promot- MM Women’s Entrepreneurship ing workers’ rights and well-being in the modern XX Policies and Access: Female entrepreneurs economy.7 Whatever the cause, unions tend to be often lack access to capital and land. uncommon in zones in the Philippines. XX Support Networks and Training: Female entrepreneurs need training on business skills, management, and market identifi- Interviews, Manila, Philippines, August 2010 6 cation, and would benefit from network Interviews, Manila, Philippines, August 2010 7 Philippines Case Study 197 Tables 2 and 3 summarize a few illustrative conven- counted for about 4.5 percent of GDP and em- tions and laws currently in place that affect women. ployed about 442,000 Filipinos in 2009.15 The Philippines ranked 71st out of 134 countries in Social and Cultural Factors the World Economic Forum’s 2008 Global Com- The Philippines is located in the Southeast Asia petitiveness Index.16 Areas of competitive advan- (SEA) region. It is an archipelago east of Vietnam between the Philippine Sea and the South China Sea. It is the second-most-populous country in 8 The CIA World Factbook, Country Comparison: Pop- the SEA region, behind Indonesia.8 The estimated ulation (https://www.cia.gov/library/publications/the- population of the Philippines in July 2010 was world-factbook/rankorder/2119rank.html) 97,976,603.9 About 11.55 million people (11.7 9 U.S. Department of State, 2010 Background Note: Phil- percent) live in the metropolitan area of the na- ippines (http://www.state.gov/r/pa/ei/bgn/2794.htm) 10 The CIA World Factbook, Country Profile (https:// tional capital, Manila, and an estimated 35 percent www.cia.gov/library/publications/the-world-factbook/ live in rural areas.10 geos/rp.html) 11 U.S. Department of State, 2010 Background Note: Over half of Philippine economic output is based Philippines (http://www.state.gov/r/pa/ei/bgn/2794. in the service sector, and about one-third of eco- htm#econ) nomic output comes from manufacturing. Some of 12 U.S. Department of State, 2010 Background Note: Phil- the most important industries are food processing, ippines (http://www.state.gov/r/pa/ei/bgn/2794.htm# econ) textiles and garments, electronics and automobile 13 U.S. Department of State, 2010 Background Note: parts, and business process outsourcing (BPOs).11 Philippines (http://www.state.gov/r/pa/ei/bgn/2794. GDP per capita was estimated at US$1,746 in htm#econ) 2009, and the GDP annual real growth rate in 2009 14 UN Statistics Division, World Statistics Pocketbook, was 0.9 percent.12 Total 2009 exports were US$38.3 2008 (http://unstats.un.org/unsd/pocketbook/country_ billion,13 with the following major trading partners profiles.pdf ) 15 U.S. Department of State, 2010 Background Note: Phil- (by percentage of exports): the United States (16.7 ippines (http://www.state.gov/r/pa/ei/bgn/2794.htm# percent), Japan (15.7 percent), and China (11.1 econ) percent).14 BPOs are the fastest-growing sector of 16 World Economic Forum, “Global Competitiveness the Philippine economy. Remaining fairly resilient Report 2008–2009� (http://www.gafinet.org/English/ through the recent economic downturn, BPOs ac- Publications/GlobalCompeti.Repor2008-2009pdf.pdf ) TABLE 2  ■  Ratification of ILO Core Conventions and CEDAW ILO Convention Ratified or Not 29 Forced Labor Ratified 87 Freedom of Association and Protection of the Right to Organize Ratified 98 Right to Organize and Collective Bargaining Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) Ratified 198 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 3  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities National or Law Law Description Zone Maternity Leave (Article 133) Women are entitled to 60 days of fully paid leave for normal birth/mis- Both carriage and 78 days for cesarian section. Family Planning Services (Article 134) Employers with 200 or more employees are required to maintain a clinic Both to provide free family planning services. Night Work Prohibition (Articles 130, 131, and Women cannot work night shifts and welfare facilities such as dressing Both 132) 1 rooms are required. Prohibition of discrimination against women in Prohibits gender-based discrimination on wage, promotion, and train- Both employment, promotion, and training opportunities ing opportunities. Prohibits any form of sex discrimination, antimarriage (Republic Act 6725, Articles 135, 136, and 137) practices, antipregnancy practices, denial of benefits under the Chapter on Employment of Women, and discharge to prevent enjoyment of any benefits under the Labor Code. Solo Parent Welfare Act of 2002 (Republic Act Women employees who are single parents are entitled to 7 days Both 8972) parental leave per year, flexible work schedule, and protection from work discrimination Early Childhood Care and Development (ECCD) Tax incentives are offered to employers supporting workplace-based Both Act (Republic Act 8982) or related ECCD programs in the form of physical facilities such as day-care centers. Antiviolence against Women and Their Children Women employees who file a labor case with the court are entitled to 10 Both Act of 2004 days paid leave of absence. Magna Carta of Women (Republic Act 9710) Women are entitled to 2 months special leave with full pay following Both surgery for gynecological disorder. Expanded Breastfeeding Promotion Act of 2009 Employers are required to provide lactation stations in workplace. Both (Republic Act 10028) Lactation periods for nursing employees are not less than 40 minutes for every eight-hour working period. Land ownership and other rights related to agricul- Women engaged in agricultural activities are assured equal rights to Both tural activities (Republic Act 6657) ownership of the land, equal shares of the farm’s produce, and represen- tation in advisory or appropriate decision-making bodies Anti-Sexual-Harassment Law (Republic Act 7877) Employers are required to post and disseminate information about the Both Act, set up a Committee on Decorum and Investigation (CODI), and have an anti-sexual-harassment policy.   Note that there are several exceptions to this law, most notably for workers in call centers. 1 tage include business sophistication, market size, social safety nets associated with these types of and higher education and training. jobs. Within the Philippines, some interviewees were concerned about the formal sector’s trend At 7.3 percent, the unemployment rate in the toward “contractualization,� whereby workers are Philippines is low for a developing country. How- hired through agencies or on a temporary basis. ever, this figure does not accurately reflect the rel- This phenomenon may reduce job stability and atively low number of formal employment oppor- decrease social benefits. tunities within the country itself. Many Filipinos seek employment in the informal sector or abroad The Philippines is classified as having “Medium as Overseas Filipino Workers (OFWs). These Human Development,� with a ranking of 105th out workers are considered “precariously employed� of 182 countries in UNDP’s Human Development because of the lack of employment benefits and Report 2009—the fourth-highest ranking among Philippines Case Study 199 the eight countries studied in this global study. The industries prefer female workers because of their World Economic Forum considers gender equity in patience, dexterity, and attention to detail.22 the Philippines to be extremely high. With a rank of 6 out of 128 countries on the World Economic Several stakeholders reported that women are Forum’s Gender Gap Index, the Philippines is the generally expected to take care of family members only developing country appearing in the top 10. In both physically and financially.4923This expecta- addition, the Philippines is rated 77th for gender- tion, combined with limited domestic employment related development and 45th for gender empower- opportunities, has contributed to a large number ment. Key social and economic indicators are sum- of female overseas Filipino workers (OFWs), as marized in Table 4, which is followed by contextual women travel abroad seeking employment and information, including the perceived challenges and higher wages. The Philippines government re- barriers to greater gender empowerment. ported that there were 901,000 female OFWs in 2009.24 In addition to general issues associated Education with female workers being abroad—fractured Primary and secondary education rates are very families, cultural gender disparities, and childbirth similar for men and women, with combined gross abroad— the fact that most female OFWs find enrollment rates of 77 percent for men and 81 employment as domestic workers creates the po- percent for women. Literacy is exceptionally high tential for more serious problems such as forced for a country with medium human development labor, violence, and rape. Of those women who do and is almost equal between women and men— stay in the Philippines, more than half work in the 93.7 and 92.7 percent, respectively.17 Even though informal sector. While the informal sector is often women have a high rate of participation in sec- a convenient way to increase family income with- ondary and tertiary education and a high literacy out impacting household duties, it also fails to pro- rate, they still lag behind men in higher-paying vide employment benefits and social safety nets. and more stable jobs.18 Health Employment In general, women have access to the clinical health The Philippines’ high gender-equity rankings seem services provided by the government. However, to be validated by a high rate of 49.8 percent for given the decentralized system, the availability and women’s participation in the workforce.19 The key barrier to employment for women is the same as that for men—the lack of job opportunities. Dis- 17 UNDP Human Development Report 2009 (2007 data) crimination against pregnant women is commonly (http://hdr.undp.org/en/reports/global/hdr2009/) reported—the Trade Union Congress of the Philip- 18 Asia Development Bank, “Country Gender Assess- pines reported instances of workers being forced to ment: Philippines�, 2004, (http://www.adb.org/Docu- resign at four months of pregnancy, and being de- ments/Reports/Country-Gender-Assessments/phi.asp) 19 UN Statistics Division, World Statistics Pocketbook, nied work placements after the birth of their baby.20 2008 (http://unstats.un.org/unsd/pocketbook/coun- try_profiles.pdf ) The proportion of women working within 20 Perman, Sarah et al, “Behind the Brand Names: Work- Ecozones, however, is much higher than the over- ing conditions and labour rights in export processing all female labor force participation rate. 64 percent zones�, International Confederation of Free Trade of the 660,600 workers employed in Ecozones are Unions (ICFTU), December 2004. 21 Philippines Economic Zone Authority. Gender and female,21 and this percentage is much higher in Development Survey 2009 certain industries such as electronics and apparel 22 Interviews, Manila, Philippines, August 2010 manufacturing. Coinciding with many studies and 23 Interviews, Manila, Philippines, August 2010 reports on female factory workers in Asia, some 24 Philippines National Statistics Office (http://www. interviewees noted that factory managers in these census.gov.ph/data/sectordata/2009/sof0901.htm) 200 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 4  ■  Socioeconomic Indicators: Philippines (various sources, 2005–2009) Total Adult Female Ratio: Female Indicator Population Population to Male % of population living on less than US$1.25, US$2 per day 22.6%, 45% Education (combined primary, secondary, tertiary) 79.6% 81.6% 1.05 Literacy (for ages 15+) 93.4% 93.7% 1.01 Labor force participation 49.8% 0.62 Unemployment 7.4% 6.5% 0.93 Earned income (PPP US$ annually) 4,571 2,506 0.58 Major Religions Primary Roman Catholic (80.9%) Other Muslim (5%), Christian (4.5%) Gender Measures Gender-related development index (GDI) 0.748 (Rank: 86 out of 155 countries) Gender empowerment measure (GEM) 0.56 (Rank: 59 out of 182 countries) Women-held seats in parliament, women in government at ministerial level 20%, 9% Female legislators, senior officials, managers 57% Female professional and technical workers 63% Women with unmet family planning needs 22.3% Births attended by skilled health professional 60% Maternal mortality rate (per 100,000 live births) 230 Source: UNDP Human Development Report, UN Statistics Division, World Statistics Pocketbook, National Statistics Coordination Board, Philippines, October 2009 Labor Force Survey, The World Economic Forum, U.S. Department of State, DHS. quality of service varies among different provinces the country’s high population growth rate, lim- and local governmental units (LGUs). In terms of ited economic opportunities, and high number of reproductive health, women—especially in the ru- adolescent pregnancies, the issue of reproductive ral areas—are poorly informed and have limited health has broad and significant social and eco- access to family planning products such as con- nomic implications. doms and birth control pills. Currently the only legal requirement addressing Lack of knowledge and limited access to prenatal reproductive health is in the Labor Code, which care contributes to a high maternal mortality rate states that all companies with over 200 employees of 230 deaths per 100,000 births. It is reported must provide family planning services. Companies that over 50 percent of women in the Philippines within zones usually have their own clinics and/ give birth at home and an estimated 10 Filipino or provide health benefits for employees to access women die every day because of pregnancy and childbirth complications.25 Strong cultural oppo- 25 Womenenews.org (http://www.womensenews.org/ sition to the use of birth control is also consid- story/the-world/090125/philippine-family-planning- ered by most stakeholders interviewed to be one bill-nears-vote) of the major sources of societal problems.26 Given 26 Interviews, Manila, Philippines, August 2010 Philippines Case Study 201 health services outside the zone. Company clinics Professional Advancement generally provide lactation facilities, basic consul- Opportunities tation, prenatal care, vaccination, and some coun- There are few cultural restrictions on women’s seling. Specialists such as gynecologists are avail- professional advancement in the Philippines, and able in some cases. the expansive zone program would seemingly provide a great opportunity to further promote Housing women’s career advancement. However, the larger Most workers in Ecozones live either in nearby socioeconomic context in the Philippines was provinces or in slums near their workplace. The found to restrict professional advancement for living conditions in the slums are characterized by both men and women in the country. The Phil- a lack of access to basic needs, such as security, safe ippines’ combination of a highly educated work- drinking water, health services, and electricity. For force and limited employment opportunities has those zone workers living in slums, the impact of created a large pool of skilled workers competing these precarious conditions extends beyond their for a relatively small number of jobs. This job scar- personal lives into their professional lives—ulti- city has led to higher-skilled workers either seek- mately impacting productivity, product quality, ac- ing work abroad or accepting lower-skilled jobs cident rates, absenteeism, and turnover. domestically. Those who remain in country often receive lower wages relative to their skill level, A potential solution to poor worker living con- and they also fill jobs that would otherwise be ditions would be to provide worker dormitories, available to lower-skilled workers. Consequently, but most employers in the zones do not currently lower-skilled workers face intense competition provide housing to workers. According to several in an already constrained employment environ- interviewees, dormitories have been perceived by ment. While this phenomenon affects both men the private sector as a breeding ground for labor and women, it has a disproportionate impact on activism, since organizing within communal-type lower-skilled female heads of households. housing is thought to have contributed to a costly 1982 zone-wide strike in the Bataan Export Pro- An additional challenge is that the growth in for- cessing Zone.27 However, while worker dormito- mal-sector employment has been driven primar- ries are rare, some companies do provide housing ily by business process outsourcing firms (BPOs). allowances for workers. From 2005 to 2008 alone, employment in BPOs more than doubled, from 81,578 to 187,146 work- Religion and Culture ers.28 During this same period, total employment The Philippines is a predominantly Catholic coun- only increased from 2,741,292 to 2,742,771, or try, and religion plays a large role in Philippine so- about 0.05 percent.29 This represents a short-term ciety. Certain Catholic beliefs influence practices opportunity for women, who represent 52.5 per- as much as, if not more than, Philippine law. Con- cent of all BPO employees and up to 61 percent in traception is a controversial subject and women’s BPOs in certain subsectors such as medical tran- sexual and reproductive rights are not commonly discussed, especially in rural areas. The Catholic Church’s political influence against reproductive health initiatives was mentioned by almost every 27 Interviews, Manila, Philippines, August 2010 stakeholder as one of the key obstacles to promot- 28 Philippines National Statistics Office (2005 and 2008 ing and improving women’s health. The Philippine data) (http://www.census.gov.ph/data/sectordata/fact- sheet.html and http://www.census.gov.ph/data/sector- congress has been debating a nationwide repro- data/aspbi08_bpotx.html) ductive health bill for ten years that has yet to pass 29 Philippines National Statistics Office (2005 and in large part because of the political influence of 2008 data) (http://www.census.gov.ph/data/sectorda- the Catholic Church. ta/2008/aspbi08_03.htm) 202 Fostering Women’s Economic Empowerment through Special Economic Zones scription and data processing.30 However, as the participation in ownership.33 However, one inter- country focuses on BPOs for economic growth, viewee who focuses on legal issues mentioned that other sectors are being negatively impacted. This this number is misleading because of the fact that phenomenon has forced some graduates to accept while a man’s and a woman’s names may appear on jobs in BPOs when they cannot find employment a contract as co-owners, in certain circumstances in a field related to their degree. While BPOs of- (especially with small to medium enterprises fer a decent salary as compared to other entry-level [SMEs]) the man’s signature is required before any positions in the Philippines, relatively few workers action can be taken on behalf of the company.34 consider BPOs as a career option. The skills they Further complicating this issue is the fact that the learn at BPOs can be useful for other sectors, but vast majority of women-owned businesses are lim- the lack of opportunities in those sectors as com- ited to the informal sector, especially in rural areas. pared to the demand for jobs remains a key issue. Although this study found a rich culture of female A final complication is that even lower-skilled fe- entrepreneurship in the Philippines, there are lim- male workers who find employment in the zones ited policies and support mechanisms promoting often do not consider work in zones as a career path the growth of domestic and female-owned busi- but instead treat it as a stepping stone to working nesses within the Ecozones. abroad.31 Unfortunately, they do not seem to find better jobs when they travel abroad. In 2009, more than 80 percent of the 900,000 female OFWs Policies and Access were employed in low-skilled jobs.32 Therefore, In some cases, individual workers in the zones are zones currently do not seem to be contributing to encouraged by the Department of Labor and Em- women’s upward mobility in the country or for mi- ployment (DOLE) to supplement their income grant workers traveling abroad. by engaging in entrepreneurial activities. For ex- ample, as a response to the financial crisis of 2008, Within this context, there is a clear opportunity DOLE established a program to provide training for zones and companies within zones to build and capital to spur workers to develop alternative programs aimed at attracting and training low- sources of income. While these activities have the er-skilled women who have a high potential for potential to significantly improve family income growth within the company. A necessary compo- for those women who participate, there is still an nent of such programs would be clear communi- opportunity to create a broader initiative focused cation about the opportunity and the process for on women’s entrepreneurship in zones. internal advancement so as to help retain the most qualified candidates. Despite such efforts, there is currently very little en- trepreneurial activity within Ecozones, particularly by women-owned businesses. Locators within the Entrepreneurship Opportunities zones are primarily internationally owned, and the Women’s economic empowerment through en- trepreneurship opportunities in zones depends on 30 Philippines National Statistics Office (2008 data) (1) policies and access and (2) support networks (http://www.census.gov.ph/data/sectordata/aspbi08_ and training. bpotx.html) 31 Interviews, Manila, Philippines, August 2010 32 Philippines National Statistics Office (2009 data) Filipino women tend to play a large role in en- (http://www.census.gov.ph/data/sectordata/2009/ trepreneurial activities as compared to women sof0905.htm) in other medium-developed countries. There is a 33 Enterprise Surveys (http://www.enterprisesurveys.org/ strong culture of entrepreneurship among Filipino ExploreTopics/?topicid=6) women, with 69.4 percent of firms having female 34 Interview, Manila, Philippines, August 2010 Philippines Case Study 203 service providers within zones tend to be owned by MM Where: Nidec Philippines Corporation, La- the zone developer or zone operator. Consequent- guna Techno Park ly, there is a significant opportunity for zones to MM Time frame: 2009-present (as of 2011) take advantage of the Philippines’ entrepreneurial MM Cost: Labor cost only. Online system was set culture by promoting inclusion of women-owned up by internal IT department and old comput- SMEs, both as enterprises operating in the zones ers were used for the system installation. and as service providers to enterprises and workers. MM Benefit to women: (1) Improved working con- ditions; (2) increased empowerment through being proactive in sharing concerns and pro- Good Practices in Women’s viding solutions Economic Empowerment in MM Benefit to business: (1) Reduced tension be- Philippine Economic Zones tween workers and management, resulting in fewer labor disputes; (2) reduced turnover Through fieldwork and other research, the study has rates; (3) improved decision -making because identified policies, initiatives, and business practic- of additional worker input es that support economic opportunities for women and increase competitiveness for enterprises and Creating ways for workers to share concerns and zones. The following programs were among the provide ideas for improvement is an effective way best practices identified in the Philippines, which to both increase operational efficiencies and re- have the potential to be replicated in other zones in duce the risk that problems will escalate into labor Philippines, as well as in zones in other countries. disputes. Since its employees are higher-skilled workers who are familiar with technology, the There were very few zone-wide programs at the Nidec Corporation has taken the idea of a sug- zones visited, and no zone-wide programs specifi- gestion box and put it online. The company has cally targeted at women. However, there was a con- placed a computer station next to the canteen to certed effort to link companies and workers within allow workers to provide feedback in an easily ac- zones to existing government programs. The most cessible and nonintimidating location. Workers interesting program was a “One-Stop Worker As- can choose whether or not to submit the feedback sistance Center,� which addresses the negative im- anonymously. The system has had a positive re- pacts of the global economic downturn by sponse from workers, and the company sees the tool as a great resource for management deci- MM Linking displaced zone workers with new sions—in terms of both listening to employees’ companies and existing companies that are hir- needs and concerns and collecting creative busi- ing, and ness solutions based upon the on-the-ground per- MM Partnering with government agencies such as spective. the Technical Education and Skills Develop- ment Authority (TESDA) to provide training, One factor contributing to the success of this scholarship vouchers, livelihoods, and credit as- program is strong management support—the sistance for affected workers. company sees value in reducing the likelihood of workers making complaints to external organiza- tions. Workers also welcome this online system as Enablers for Female Workers’ it is easily accessible and they can provide feed- Welfare and Advancement back without attribution. There were some initial user-friendliness challenges in first week of in- Encouraging Worker Feedback stalling the program; these were resolved by mak- MM Enabler Type(s): Legal ing improvements to the system based on worker MM Who: Nidec Corporation input. 204 Fostering Women’s Economic Empowerment through Special Economic Zones MultiStakeholder Approaches to MM Who: Trade Union Congress of Philippines Freedom of Association (TUCP) MM Enabler Type(s): Legal MM Where: Ecozones MM Who: SALIGAN and NGO partner, a global- MM Benefit to women: (1) Increased empower- rights-focused NGO ment through peer-to-peer training methodol- MM Where: Ecozones ogy; (2) improved knowledge of labor rights, MM Benefit to women: (1) Reduced likelihood of particularly occupational health and safety violations of labor standards, especially freedom MM Benefit to business: (1) Reduced training costs of association; (2) increased possibility of more through peer-to-peer methodology; (2) re- equitable representation before employer duced production costs through reduced stop- MM Benefit to business: (1) Reduced risk of back- page time, accidents, and injuries; (3) reduced lash from buyers for not complying with labor tension between company and union, resulting standards, including freedom of association; in reduced costs (2) reduced conflict in labor relations; (3) re- duced reputational risk via improved relation- One of the key obstacles to improving labor re- ships with stakeholders lations is the lack of a “common language� that allows companies, NGOs, and unions to have ef- In the absence of a union, workers are not able fective dialogue. Understanding that corporate to bargain collectively with their employer about social responsibility (CSR) can be an effective their expectations for working conditions, wages, entry point for a dialogue around labor practices and other benefits. Companies in the Philippines, in factories, TUCP has created a CSR program. including those in the zones, prefer to avoid union- It has trained union leaders in CSR—both what ization. According to several stakeholders,35 this it entails and how to talk about it in a way that tendency is due in part to a historically conflic- management understands. For example, it has tive relationship between companies and unions. developed a train-the-trainer program with Japa- Consequently, there is a clear need for improved nese experts from the Japan International Labour understanding about the role of each and increased Foundation ( JILAF) to equip union leaders with dialogue among stakeholders. Verité, with fund- occupational health and safety (OHS) knowledge. ing from the U.S. Department of State, has cre- These leaders are then enabled to implement both ated a program to encourage a multistakeholder regional and onsite workshops on their own. By approach to the issue of freedom of association creating a shared terminology, the program allows in the Philippines. Among the partner organiza- workers and management to more easily discuss tions is SALIGAN, a Philippine nonprofit offer- OHS issues and focus on continuous improve- ing legal assistance services to workers. In a recent ments in OHS. workshop, the program arranged for a presenta- tion by a company and a union representative who had recently started to work together. Company Women’s Health Services attendees responded positively to this innovative MM Enabler Type(s): Social and Cultural approach, as they heard first-hand accounts of the MM Who: USAID PRISM (Private Sector Mobi- benefits of collaboration. lization for Family Health) MM Where: Cavite Economic Zone MM Benefit to women: (1) Improved reproductive Promoting CSR Knowledge in Union and personal health; (2) reduced risk of death Leaders during childbirth; (3) increased awareness of MM Enabler Type(s): Legal, Professional Advance- family planning information ment MM Program: Union and worker training 35 Interviews, Manila, Philippines, August 2010 Philippines Case Study 205 MM Benefit to business: (1) Reduced absenteeism the merits of addressing women’s health issues and and turnover; (2) increased productivity and creating better linkages between the public and product quality private sectors to increase the availability of, and access to, products and services. While women are empowered in many ways in the Philippines, the one area in which there is an urgent need for improvement is reproduc- Enablers Promoting Female tive health. For many reasons, both sociopolitical Entrepreneurship and religious, the subject of reproductive health and family planning remains highly taboo—ex- Improving Women’s Life Skills acerbating social and economic issues the coun- MM Enabler Type(s): Support Networks and try already faces. The Philippines has a very high Training population growth rate in spite of its fairly high MM Program: Gender and Development (GAD) maternal and infant mortality rates. In part be- programs: Livelihood programs initiated by De- cause of a decentralized system where local gov- partment of Labor and Employment (DOLE) ernments make decisions on how to invest funds, MM Who: DOLE, TESDA, and companies most rural populations have poor access to nutri- MM Where: Selected companies, including those in tional and reproductive health education. Ecozones MM Benefit to women: (1) Increased household Many women working in zones are young, from income; (2) increased empowerment via addi- rural areas, and away from home for the first time. tional technical abilities and life skills; (3) in- Without knowledge on reproductive health, these creased resiliency to downsizing women are not empowered to make informed de- MM Benefit to business: (1) Retention of skilled cisions regarding sexuality and reproductive health. workers, even during production downtimes; They are at high risk of suffering from sexually (2) reduction in turnover rate as bonds are transmitted diseases, unexpected pregnancy, and formed among workers sexual violence. While companies within zones generally have clinics and provide at least some The Technical Education and Skills Development type of reproductive health services, the quality of Authority (TESDA) of the Philippine govern- these services varies greatly. Additionally, women ment provides company-level livelihood training who do not work in zones generally have poor ac- to workers according to their interests, and DOLE cess to reproductive health services at their local provides the necessary capital to help women to government clinic. start a small business. In selected companies, wom- en employees who are interested in learning some The USAID PRISM program connects women livelihood skills can choose a topic of interest, such in zone communities to necessary services and as chocolate making, fish processing, or packag- commodities for health and family planning from ing, with training provided jointly by DOLE and commercial service providers. In Phase I, the proj- TESDA. In one of the companies visited, after ect worked with 57 companies in the Cavite Eco- obtaining such skills women employees are sell- nomic Zone and trained over 200 people, includ- ing their homemade chocolates to colleagues and ing human resources managers, doctors, nurses, even to workers in other companies in the zone. and peer educators (employee volunteers). The Employees at another company visited gather dur- training covers regular updates and topics in pro- ing breaks to make and package detergents that are motion of nursing, child health, family planning, sold to their own company. These products are then and women’s empowerment. In Phase II, the proj- given out to high-performing workers as a token ect is focusing on convincing the local government of appreciation from the company. These programs units (LGUs) and regional health authorities of are good examples of public-private partnership 206 Fostering Women’s Economic Empowerment through Special Economic Zones whereby the government provides the necessary literacy, for example—that would directly ben- capital and skills training to workers and their efit workers and indirectly benefit companies in companies also provide some resources to support Ecozones. PEZA, zone operators, and companies the programs, which allow them to retain workers have the opportunity to refute interviewees’ claims even during economic downtimes and reduces the by making their activities more transparent and by negative impact on workers’ income. increasing their collaboration with existing pro- grams run by civil-society and government agen- cies—especially those of local government units— Remaining Challenges and that would benefit workers. A strategy based on Opportunities for Innovation in the transparency and collaboration would also attract Philippines more responsible businesses. In a global economy that increasingly scrutinizes practices at all levels While uncovering best practices, the study has of the supply chain, attracting more responsible also identified major barriers and poor practices businesses means that the Philippines will create a that affect women trying to enter the workforce, more sustainable zone program. achieve upward mobility, or start their own busi- ness. The following areas reflect opportunities for further innovation and program development. Legal/Social: Zone-Level Cultural and Labor Law Training Management style and company culture play a Innovations to Further Female large role in shaping working conditions. A PEZA Workers’ Welfare and Advancement representative cited cultural differences between foreign-owned companies and Philippine society Legal: Transparency and Collaborative as a common reason for labor complaints and some Programs instances of noncompliance. This phenomenon Some interviewees pointed to the lack of transpar- is not unique to the Philippines. In fact, it is in- ency as a key barrier to improving women’s lives creasingly common in a globalized economy where inside zones. They claimed that a lack of access to companies establish operations in foreign locations. zones for NGOs, unions, and other stakeholders— However, the impact on workers is exacerbated in including DOLE in some instances—has, at best, situations where the local culture is fairly reserved, made it difficult to determine the needs of work- such as the Philippines, while the culture of the ers and, at worst, created an environment in which foreign-owned companies is more aggressive. labor violations can go unchecked. In some cases, PEZA has responded by partner- PEZA is tasked with attracting companies to ing with DOLE to deliver training to factory Ecozones as well as with regulating those compa- management on Philippine culture. PEZA could nies’ practices inside the zones. Some interviewees expand this program by making it mandatory argued that this creates a disincentive for PEZA for the managers of all new companies enter- to uncover labor violations.62 Although this study ing zones to receive training on Philippine cul- cannot validate the legitimacy of these claims, it ture and Philippine labor law. A repeat training is clear that there is distrust between stakehold- would then be required for those companies re- ers operating inside the zones and those operating ceiving labor complaints and/or committing vio- outside of the zones. lations related to managerial conduct. The goal would be to reduce worker-management tension If this distrust could be reduced, there are a wealth of government and civil-society programs—ad- dressing health, education, life skills, and financial Interviews, Manila, Philippines, August 2010 36 Philippines Case Study 207 by sensitizing foreign management to the aspects absenteeism due to mothers’ inability to find af- of their native culture that may be unacceptable fordable child care and reducing low productivity in the Philippine working environment. Train- levels associated with mothers who are concerned ing should also highlight relationships between about their child’s well-being. men and women in the country and appropriate and inappropriate behavior related to women and gender. Innovations to Promote Female Entrepreneurship Social: Zone-Sponsored Child-Care Access/networks: Entrepreneurial Centers Opportunities within Zones Child care remains a barrier to low-wage women Since the Philippines has a relatively strong cul- workers’ ability to remain in the workforce. There is ture of entrepreneurship, zone developers could opportunity for zones to provide a child-care cen- identify the needs of companies and workers for ter for all workers in the zone. Companies could services within the zone—such as transportation, pay into the center so that their workers have the personal care, finance, and entertainment. Devel- option of using it. This offering would improve the opers could then create opportunities for entre- attractiveness of locating a business in the zone by preneurs to establish businesses inside the zones, reducing the financial burden on any one factory, with some targeted outreach to and benefits for while ensuring that all factories operating in the female entrepreneurs. These services would pro- zone are in compliance with the law. Additionally, vide added value for companies and workers in- all women working in the zone would have access side the zones and would entail minimal cost and to a reliable child-care resource, thereby reducing risk to developers. 208 Fostering Women’s Economic Empowerment through Special Economic Zones Resources: Key Gender Stakeholders in Philippines Organization Location Focus Area Arugaan – Support System for Women with Children Quezon City Family health and wellness Asian NGO Coalition Quezon City Women’s empowerment Asian Women in Cooperative Development Forum Quezon City Women’s cooperative development (AWCF) Association of Major Religious Superiors in the Quezon City Women’s rights Philippines – AMRSP Bagong Ina ng Bayan Barangay Federation, Inc. (BINB) Makati City Women’s welfare Batis Center for Women Quezon City Distressed overseas Filipina workers’ welfare Business and Professionals Women’s Association of Pasig City Women’s entrepreneurship the Philippines (BPWAP) Catholic Women’s League Philippines, Inc. (CWL) Manila Women’s livelihood and children’s education Center for Integrative & Development Studies Quezon City Women’s rights Center for Prevention & Treatment of Child Sexual Quezon City Family health and wellness Abuse Center for Women’s Resources Quezon City Knowledge empowerment for women Center for Women’s Studies (CWS) Quezon City Gender research and programs Centre for Asia Pacific Women in Politics Parañaque City Women’s participation in politics and decision making Coalition Against Trafficking in Women – AP Working against prostitution and trafficking of women Democratic Socialist Women of the Philippines Quezon City Women’s health and rights (DSWP) Department of Labor and Employment, Bureau of Ermita, Manila Women workers’ development; women’s welfare Workers with Special Concerns Development Action for Women Network Manila Women migrant workers and Japanese-Filipino children Development Institute for Women in Asia-Pacific Manila Women’s education (DIWA) Engenderhealth Pasay City Women’s health EnGenderRights Quezon City Women’s rights Federation of Free Workers Malate Capacity building; women’s empowerment Friendlycare Foundation, Inc. Mandaluyong City Family health services GABRIELA National Alliance of Women’s Organizations Women’s rights in the Philillpines Grassroots Women’s Empowerment Center, Inc. Calloocan City Women’s empowerment ISIS International, Manila Quezon City Women’s rights, leadership, and empowerment Kababaihan Laban Sa Karahasan (KALAKASAN) Manila Domestic violence Foundation, Inc. Kabalikat Ng Pamilyang Pilipino, Inc. (KABALIKAT) Quezon City Family planning and reproductive health KALAKASAN Foundation, Inc. – Kababaihan laban sa Manila Women’s rights Karahasan Kanlungan Center Foundation, Inc. Quezon City Women’s rights (Continued on next page) Philippines Case Study 209 Resources: Key Gender Stakeholders in Philippines (Continued) Organization Location Focus Area Let’s Go Foundation Makati City Women’s entrepreneurship Center for Women’s Health, Inc. (Linangan Ng Quezon City Women’s health; family health and well-being Kababaihan, Inc. – LIKHAAN) MAKALAYA Quezon City Women workers’ rights Philippine Commission on Women – PCW (formerly San Miguel, Women’s rights; women’s entrepreneurship; gender National Commission on the Role of Filipino Women Manila equality – NCRFW) National Council of Women of the Philippines – NCWP Manila Women’s empowerment National Federation of Labour Mandaluyong City Labor rights; women’s rights PAKISAMA Loyola Heights, Gender equity Quezon City Panlalawigan Komisyon para sa Kababaihan ng Malolos City Women’s welfare Bulakan Philippine Medical Women’s Association Quezon City Women’s health PILIPINA Quezon City Domestic violence against women Remedios Aids Foundation (RAF) Manila Women’s health Reproductive Health Rights and Ethics Center for Manila Women’s health Studies and Training (Reprocen) – Social Medicine Unit (SMU) Reproductive Rights Resource (3RG) Quezon City Women’s health SALIGAN (Sentro ng Alternatibong Lingap Panlegal) Quezon City Women’s rights; labor rights; access to legal remedies SARILAYA Quezon City Women empowerment Save the Children Quezon City Children’s rights Sentro ng Mangagawang Pilipina Quezon City Empowerment of women and marginalized groups Third World Movement Against the Exploitation of Quezon City Women’s rights; sexual exploitation Women (TWMAEW) Trade Union Congress of Philippines, Women Quezon City Women’s rights; labor rights Department Ugnayan ng Kababaihan sa Pulitika (UKP) Quezon City Participation of women in politics and public policy UGSAD – Regional Gender Resource Center Women’s empowerment USAID PRISM Pasig City Women’s health; women’s rights Visayan Forum Foundation, Inc. Women’s rights and empowerment University of Philippines Diliman, School of Labor and Diliman Gender research; development of community Industrial Relations cooperatives WCC Women and Globalization Program Women’s empowerment Women Health Philippine, Inc. Quezon City Women’s health Women in Development Foundation Quezon City Women’s empowerment Women’s Action Network for Development, Inc. – Quezon City Women’s health and rights; capacity building WAND (Continued on next page) 210 Fostering Women’s Economic Empowerment through Special Economic Zones Resources: Key Gender Stakeholders in Philippines (Continued) Organization Location Focus Area Women’s Crisis Center – WCC Quezon City Education; women’s rights; women’s health Women’s Education Development. Productivity and Quezon City Women’s empowerment; capacity building; education Research Organization, Inc. – WEDPRO Women’s Feature Service (WFS) Parañaque City Institutional mechanisms for the advancement of women; women’s health and rights Women’s Health Care Foundation Quezon City Women’s health Women’s Institute for Sustainable Economic Action Dilima, QC Women’s rights; access to finance Women’s Legal Bureau – WLB Quezon City Access to legal remedies; violence against women Women’s Legal Education, Advocacy, and Defense Quezon City Women’s rights; access to legal remedies Foundation, Inc. (WOMEN LEAD) Women’s Media Circle Foundation Sampaloc Manila Women’s rights; access to legal remedies Women and Gender Institute of Mirriam College Quezon City Women’s rights; women’s health; women’s labor migration Annex A: Interviewees Global Bangladesh Carrefour Awaj Foundation Gap Inc. Bangladesh Export Processing Zone Authority H&M (BEPZA) IFC Bangladesh Institute for Development Studies International Labour Organization (ILO) Bangladesh Federation of Women Entrepreneurs, Women in Small Enterprise, others Jabil Bangladesh Women Chamber of Commerce and KappAhl Industry Levi Strauss BEPZA Chittagong Export Processing Zone Li & Fung (CEPZ) Lindex BEPZA Dhaka Export Processing Zone (DEPZ) Marks & Spencer BEPZA Counselors, Dhaka EPZ (IFC funded) Nike BEPZA Counselors, Chittagong EPZ (IFC Primark funded) Solidarity Center Consultant, Clean Clothes Campaign and War on Want Tesco Consultant, IFC (manages Counselors) and Timberland Senior Researcher at Bangladesh Institute for UNIFEM Development Studies Wal-Mart / ASDA Consultant, formerly with Sheva (social audits, World Bank workers’ rights, etc.) CSR Health Solutions Engender Health Hop Lun factory IFC 212 Fostering Women’s Economic Empowerment through Special Economic Zones MAMATA Costa Rica Chamber of Exporters (CADEXCO) Marie Stopes International, Bangladesh Costa Rica Investment Promotion Agency NUK (CINDE) Pathfinder Bangladesh Coyol Free Zone Phulki Electronics MNC Smiling Suns Clinics Electronics supplier Women Entrepreneurs’ Association (WEA) Financial Services MNC World Bank Foreign Trade Corporation of Costa Rica (PRO- COMER) Young One, Chittagong EPZ Genesis Group (Forum I and Forum II) China Medical Devices MNC Ministry of Labor All China Trade Union National Institute for Women (INAMU) Asia Foundation, The Programa para el Desarrollo de la Mujer Empre- Caiyun Apparels Factory saria Center of Women & Social Development Studies Rinfogam China Gender Advisory Group Social Security (Caja de Seguridad Social) China Labor Law Research Institute China Training Institute Egypt Da Li Sheng Kintting Ltd. Association for Women’s Total Advancement and Gates Foundation Development (AWTAD) Guangdong CDC Ayoun Foundation Hansa Garment Ltd. Center for Egyptian Women Legal Assistance Hua Ou Group (CEWLA) Huaxia Huitai Consulting Company Centre for Development Services / Near East Foundation Koniko Garment Ltd. El Araby Group Marie Stopes International Family Health International Shanxi Association of Women Lawyers GAFI, Nasr City Zone Timeline Consultancy Company GAFI, Port Said Zone United Nations Development Fund for Women Garment factories (2) Wistron Technology Group General Authority for Investment (GAFI) Women’s Studies Institute of China Goldman Sachs 10,000 Women Entrepreneur- World Health Organization (WHO) ship and Leadership Center, American Wuhan Economic Development Zone University in Cairo Costa Rica IFC Camara de Comercio de Costa Rica (Costa Rica Institute for International Education Chamber of Commerce) Annex A: Interviewees 213 Internal Trade Development Authority (ITDA) Jordan IT Worx AECOM New Women Foundation (NWF) Al Hassan Industrial Estate El Salvador Al-Tajamouat Investment Company Apparel Factories (3) American Industrial Park Business and Professional Women Association CAMTEX (BPW-A) EMPREPA Development Zone Commission Export Salva French Institute for the Near East Federation of Independent Associations and General Trade Union of Workers in Textile, Gar- Unions of El Salvador (FEASIES) ment, & Clothing Industries ( JTGCU) Fruit of the Loom IFC George C. Moore ILO Better Work Glasswing International ILO Gender Independent Monitoring Group of El Salvador Jordan Forum for Business & Professional (GMIES) Women ( JFBPW) Labor Ministry Jordan Industrial Estates Corporation ( JIEC) League Jordanian National Commission for Women Millennium Challenge Corporation (MCC) ( JNCW) Ministry of Economy Law Firm (now with Nabulsi & Assoc) Mujeres Transformando Ministry of Labor National Coordinating Committee of Women in Ministry of Planning and International Coop- El Salvador (CONAMUS) eration National Development Foundation (FUNDE) National Center for Human Rights National Investment Promotion Agency of El Satellite Factory Salvador (PROESA) Social Security Corporation National Labor Committee USAID Jordan Economic Development Program Organization of Salvadoran Women for Peace – SABEQ (Deloitte Consultant) (ORMUSA) Salvadoran Institute for Women’s Development Kenya (ISDEMU) Africa Apparels Factory Valley MFG Family Health Options, Kenya Women Entrepreneurs Committee, CAMTEX Federation of Women Lawyers, Kenya (FIDA) Fireside Communications Global Business Coalition on HIV/AIDS Homegrown / Flamingo / Fenley’s 214 Fostering Women’s Economic Empowerment through Special Economic Zones IFC Employers Confederation of the Philippines JamiiBora Bank Federation of Free Workers KENWA (Kenya Network of Women with Fujitsu Die-Tech Corporation of the Philippines AIDS) Laguna Technopark Kenya Export Processing Zone Let’s Go Foundation (Leading Entrepreneurs Kenya HIV/AIDS Business Council Toward Seizing Global Opportunities) Kingfisher Farm Likhaan, Center for Women’s Health Inc. Ministry of Gender MNTEC Corporation Ministry of Labor National Federation of Labour, The Philippines Office of the Prime Minister Nidec Philippines Corporation One Child, One World Philippine Advanced Processing Tech. Swedish Workplace HIV/AIDS Programme Philippine Commission on Women TechnoServe Philippine Economic Zone Authority (PEZA) Private Sector Mobilization for Family Health Philippines (PRISM) Sentro ng Alternatibong Lingap Panligal (SA- Cavite Economic Zone PEZA office LIGAN) Center for Asia-Pacific Women in Politics School of Labor and Industrial Relations Department of Labor and Employment (DOLE): Trade Union Congress of the Philippines Bureau of Working Conditions University of Philippines Diliman Department of Labor and Employment (DOLE): Bureau of Workers with Special Concerns Women and Gender Institute of Miriam College Annex B: Bibliography General, Global Study ILO, “ABC of Gender Equity�, 2007. 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