Gender and economy

Nino Arveladze

Gender equality issues remain topical under the conditions of economic and financial crisis or in the times of stability.

Character of the mentioned problem is especially visible in the times of economic crisis. After demolition of Soviet Union Georgia is trying to develop socially fair society. Gender equality is of special importance in these terms. Ongoing democratic processes in the world revealed problems of gender equality rather sharply. Gender equality is one of the bases of economic and democratic development. At any level of management consideration of gender equality problems is the basis for social fairness, employment, growth of incomes and thus common welfare. In 2005, Georgian government worked out a document on Priorities of Georgia for action plan of European Union’s neighborhood policy. Strategic guidelines of the country’s development were marked out that should enable Georgia’s full integration in Europe’s structure. Conformity with European standards that imply democratic development, social fairness and creation of corresponding environment in the politics and economy require encouragement of equal participation of men and women in the governing system of the country. Parliament of Georgia adopted concept of gender equality, together with law against family violence and trafficking.
On 17 July of this year, within the framework of project “Gender and Politics” designed by UNDP (United Nations Development Program) and Swedish Development Agency has been held a conference “Gender challenges of global economic crisis in Georgia” in Sheraton Metekhi Palace, in Tbilisi. Presentation of a book – Gender Dimensions of the Financial Policy of Georgia took place at the conference. Authors of the book are Mrs. Charita Jashi and Mr. Mikheil Toqmazishvili. The book fully reflects gender problems in the issues of budget estimates and aspects of leading financial policy.
If dealing with integration into European Structures one should necessarily discuss Georgian government’s attitude toward gender equality issues. It might seem strange that government is actively discussing about harmonization of Georgian legislation with European one, while according to Labour Code of Georgia: “Employee is entitled to request a leave for the reason of pregnancy, childbirth and childcare in the range of four hundred and seventy seven calendar days; One hundred and twenty six calendar days are payable from the leave taken for the reason of pregnancy, childbirth and childcare, in case of complicated childbirth or delivery of twins – one hundred and forty calendar days;”Interestingly, majority of women do not fully utilize maternity leave they are entitled to. In this case, the decision is influenced not only by small remuneration of maternity leave, mothers are trying to maintain their jobs and the higher the salary the sooner they return to their jobs. Other issues have merged with regards to pensions system. From the gender perspective, it is expedient to develop pension schemes which will consider the time spent by women on upbringing children as the number of years worked.
In 2005-2008, the share of women having basic general education among total number of unemployed reduced, but unemployment increased among women with higher education levels. The same trend can be seen among men.
Economic expert, TSU Professor Emzar Jgerenaia spoke about the causes of world financial and economic crisis. He addresses the conference on “Actual aspects of world financial crisis and theory of creativeness”. Mr. Emzar declared that Georgia as an importer country might have been a beneficiary of world financial crisis. Problems of gender equality were underlined at the conference. Vice speaker of Georgian Parliament and head of consulting council of gender equality Mrs. Rusudan Kervalishvili declared that development of democratcy is a necessary condition for ensuring of the population’s welfare. Stable political and economic environment, formation of effective social policy and encouragement of human resources realization are essential factors for social fairness and gender equality. Recent negative developments in Georgia had affected population’s social economic condition. Poverty risks were not yet managed to be diminished. Equal distribution of resources is necessary for carrying out effective social policy that by itself implies equal conditions for both men and women. Financial sources for preparation of highly qualified staff are of big importance. Doctor of Economics, deputy state minister in Euro-Atlantic issues Mrs. Tamar Beruchashvili spoke on the influences of world economic crisis on gender equality. In 2005-2006, Tamar Beruchashvili was in the head of state committee that developed social governmental program and concept together with the coalition of non-governmental organization. Unfortunately, government shared the mentioned concept only partially. Tamar Beruchashvili declared that reviewing gender equality problems as the measurement for economic and democratic development is of great importance for establishment of Georgian statehood. Expert of the project in gender budgeting issues, TSU Professor Mrs. Charita Jashi addressed on “Gender controversies in neoliberal economic policy”. She declared that in middle of seventies of the previous century inequality inside and between the countries increased and deepened. At the first economic forum in Davos, John Milton declared that world is in danger, rich countries might become richer, while there is no salvation for poor countries. According to Washington’s famous consensus, mandate was given to Three Sisters that Mrs. Charita called as Samaia. These are: International Monetary Fund, World Bank and World Trade Organization. They took an obligation to ensure financial and monetary stability in whole world. Their fight against poverty should be considered as failure in every country they entered. China, Malaysia and Indonesia denied Samaia mission. Main argument of the liberal policy makers and their supporters was Structural Regulation Program, or reduction of state expenses, unification of privatization, liberal trade and fiscal policy. Mrs. Charita Jashi underlined that laureates of Nobel Prize who were publishing gender sensitive books and articles are declaring that together with aggravation of poverty social and gender inequality increases also. Great economists prove that strengthening of neoliberal policy is in direct proportion to the development of gender and social inequality. Nobel Prize Laureate Paul Krugman reckons that responsibility lies on the governments of those state that were totlly ignoring current processes (like Georgia). Population’s confidence in state as institution has been lost. Similar tendency is characteristic not only for developing, but also for developed countries also. As a result market took the role of regulator in the state. In the end government representatives went into ecstasies and declared that market is important and not the state, while the last is only the mechanism that manages security, defense and law enforcement agencies. And this is accomplished in Georgia at high levels. Another tendency is dependence on global economy that is a result of globalization; power and financial resources are mobilized only in the hands of minority group. Profit oriented leitmotif without any social benefits is accompanying the process. In 2008-2009, after it has been officially declared that global economic crisis has come to a force, one often encounters articles about the failure of neoliberal policy. Taboo is abolished: now this topic can be discussed loudly.
Some conclusions are made that government should be not only regulator and mediator, but encourager of social welfare without any alternates. In the course of last three years, financial organizations, the same Samaia, took orientation to gender equality. At the meeting of EBRD, it has been declared that without gender integration bank’s activities are impossible. The same action plan has been developed by World Bank. Project expert in gender budgeting issues Mr. Mikheil Toqmazashvili spoke about affects of global financial crisis on development of Georgian economy and gender approaches. Mr. Mikheil declared that due to global crisis monetary inflows and investments from abroad reduced in Georgia that was resulted in sharp increase in unemployment level. Consumer prices represent a sector that should save the country of crisis. In this case, price reduction should be encouraged most of all. Prices in Georgian construction business have increased catastrophically during last three years. Government intervention and support of construction sector is very important, but if this is not followed by price reduction we might have constructed houses without buyers. Speaker noted that majority of employed people in construction business are men. Mikheil Toqmazashvili reckons that anticipated economic improvement in Georgia from 2010 might be accompanies by two-figure inflation risk and this might become biggest problem in Georgia. Increased consumer prices might do damage to many families in Georgia. It is important to design some strategy by 2010. Unfortunately, only thing we know is that what is done now and there is no action plan for the future.
What government is doing for the development of gender equality in Georgia?
Officially, there is political will for the formation of democratic and socially equal society in Georgia. However, current social and political changes in the country do not ensure realization of democratic values. Women’s participation in the country’s political and economic decision making process is still nominal. Gender equality policy is not carried out on various levels of state management. Government representatives are talking a lot about successful economic reforms, but the number of people living beyond poverty margin is not significantly decreased. Moreover, poverty is one of the sharpest problems in Georgia. Therefore birth rate has lowered and the number of families divorced due to economic problems increased. The number of single mothers is also increasing. It should be noted that in the recent years the increased share of women among labour migrants in Georgia has been significant that considerably changes family structure and gender functions. Demographic tendencies in Georgia are the indicators of country’s social and economic development. If the matter of poverty overcoming is actually set then policy of intense employment should be carried out. The policy should be oriented on long-term effects, instead of three-month programs. Social development has social content as women are taking responsibility for taking care of the family, children and elder people. State budget expenses of previous years mainly considered male employment, high-priority fields were defense, public order and security. Expenses in these fields exceed the expenses assigned to education, healthcare and social protection. In 2008, financing of these fields has been slightly equalized. Social expenses become of high priority in 2009 state budget. This mainly was determined by Russian War, reduction of economic activities due to global financial crisis and fall of economic growth pace, increase in unemployment level and aggravation of social background.
Gender orientation of financial policy is essential, so that women to have opportunity of promotion and of self-realization that will be reflected in the welfare of the population. Strong family is a basis for the development of strong state.