The Gender Dimensions of the IMF’s Key Fiscal Policy Advice on Resource Mobilisation in Developing Countries
The Gender Dimensions of the IMF’s Key Fiscal Policy Advice on Resource Mobilisation in Developing Countries
Publisher Information
Publisher: Bretton Woods Project
Date: October 2017
Copyright Notice: This text may be freely used providing the source is credited.
Abbreviations
APMDD: Asian Peoples’ Movement on Debt and Development
ARB: Asociación de Recicladores de Bogotá
BWP: Bretton Woods Project
CEDAW: Convention on the Elimination of all Forms of Discrimination against Women
CESR: Center for Economic and Social Rights
FAD: Fiscal Affairs Department
GEM: Gender Equality and Macroeconomics
ICESCR: International Covenant on Economic, Social and Cultural Rights
IEO: International Evaluation Office
IFIs: International Financial Institutions
ILO: International Labor Organization
IMF: International Monetary Fund
INESC: Instituto de Estudos Socioeconômicos
ITUC: International Trade Union Confederation
LIC: Low Income Country
MDGs: Millennium Development Goals
SMSEs: Small and Medium Sized Enterprises
ODA: Overseas Development Aid
OECD: Organisation for Economic Co-operation and Development
PWDs: Persons with Disabilities
SDGs: Sustainable Development Goals
TA: Technical Assistance
UN: United Nations
UNDP: United Nations Development Programme
VAT: Value Added Tax
VAWG: Violence against Women and Girls
WHO: World Health Organization
WIEGO: Women in Informal Employment, Globalizing and Organizing
WILPF: Women’s International League for Peace and Freedom
Table of Contents
Executive Summary
Acknowledgements
Positioning Women’s Rights and Gender Equality in the Macroeconomic Policy Environment
The Gender Dimensions of the IMF’s Key Fiscal Policy Advice on Resource Mobilisation in Developing Countries
The Gendered Costs of Austerity: Assessing the IMF’s Role in Budget Cuts Which Threaten Women’s Rights
Turning a Blind Eye to Women in the Informal Economy
The IMF’s Role in Creating an Enabling Macroeconomic Environment for Women’s Rights and Gender Equality
Bibliography
Executive Summary
The IMF is a member of the UN system and has committed to supporting the Sustainable Development Goals (SDGs), particularly Goal 5: Gender Equality.
The IMF has begun exploring gender and income inequality as emerging issues and developing gendered policy advice.
Critics in civil society call the more progressive stance of the IMF an “IMF Spring” but stress the need for accountability regarding the potential negative impacts of IMF policies on women's rights.
Acknowledges that addressing structural, intersectional barriers faced by women is crucial for achieving gender equality and recognizes the impact of IMF policies.
Proposes that comprehensive analyses must be conducted on how conventional IMF policy advice influences women's rights and recommends that the IMF’s growing interest in gender equality be reflected in tangible outcomes.
Acknowledgements
Authors include: Mae Buenaventura, Martha Chen, Kate Donald, Nicholas Lusiani, Claire Miranda, Emma Bürgisser, and Rachel Moussié.
Input from a workshop held in February 2017 and additional contributions from various experts.
Positioning Women’s Rights and Gender Equality in the Macroeconomic Policy Environment
Women's Rights and Gender Equality: Who is Responsible?
Women face multiple barriers to their human rights in social, political, cultural, and economic spheres.
National governments are primarily responsible for ensuring gender equality, as per international human rights law.
Commitments are reiterated through various international instruments like the ICESCR and CEDAW, as well as through the implementation of SDGs.
The Role of International Financial Institutions (IFIs)
IFIs, including the IMF, influence the policy space of developing country governments.
The IMF has historically advocated for macroeconomic policies prioritizing fiscal stability over social considerations, often leading to negative impacts on gender equality.
The Need for Structural Change
The authors assert the importance of tackling systemic inequalities through macroeconomic policy.
There is a need for radical, structural change to address the global macroeconomic framework that currently disadvantages women.
The Role of the IMF
The IMF has a significant role in shaping global economic policy and has recently been encouraged to take into account gender dimensions in its analysis and policy advice.
Despite some advancements in gender considerations, a comprehensive approach recognizing the intersectional nature of inequalities is still lacking.
The Gender Dimensions of the IMF’s Key Fiscal Policy Advice on Resource Mobilisation in Developing Countries
Value-Added Tax (VAT) as a Key Fiscal Policy
The IMF recommends the implementation of VAT as a financing tool, especially in developing countries.
Studies indicate that VAT can have adverse impacts, particularly on women's economic rights.
Context of Resource Mobilisation
Developing countries depend heavily on taxation to finance public services and implement developmental goals.
Tax systems can reinforce gender inequalities if not designed with consideration of their social impacts.
International Commitments and Responsibilities
States are required under international laws to fulfil their human rights obligations, including implementing equitable tax structures.
Critique of IMF’s Advice on VAT
VAT tends to disproportionately affect low-income individuals by imposing a uniform rate regardless of income levels, making it regressive.
The IMF’s insistence on this form of taxation reflects its neoliberal agenda and often neglects equitable taxation alternatives.
The Gendered Cost of Austerity: Assessing the IMF’s Role in Budget Cuts Which Threaten Women’s Rights
Overview of Austerity Measures
Austerity measures often involve cuts to public spending that disproportionately affect women’s rights and services.
Public funding is key for women’s access to healthcare, education, and childcare services.
Evidence of Negative Impacts on Women
Many countries are implementing austerity measures that threaten essential services directly linked to women's rights.
The withdrawal of services like childcare exacerbates women’s economic vulnerabilities.
Case Study: Brazil
Brazil has undergone significant public spending cuts, impacting social programs that are crucial for women's rights.
The constitutional amendment freezing public spending could have profound consequences for social welfare and women's rights.
Turning a Blind Eye to Women in the Informal Economy
The Informal Economy and Its Gendered Nature
Informal employment (characterized by lack of protections and benefits) is predominantly occupied by women, particularly in the Global South.
Women in the informal economy face barriers in accessing social protections that hinder their economic empowerment.
The Role of IMF Policies
IMF policies have contributed to the informalisation of the labor force through labor market flexibilisation, exacerbating gender disparities.
While the IMF promotes increased female labor force participation, this does not equate to improved working conditions or empowerment for women.
Conclusion and Recommendations
What the IMF Should Do
Strengthen progressive taxation measures to create fiscal space for social welfare investments, particularly benefiting women.
Recognize the gendered nature of tax policies and social protections in its macroeconomic policymaking.
What the IMF Should Not Do
Refrain from endorsing regressive tax measures and austerity policies without conducting thorough impact assessments related to gender equality.