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Fact sheet on government commitments and important international economic organizations

by Deborah Stienstra
Spring 1999
 

Across the world, women contribute to their local economies through their paid and unpaid work. "In virtually every country of the world, women work longer hours than men, yet share less in the economic rewards." (Human Development Report 1995). We are told, however, by the media, economists, and politicians that the economy is driven by the "invisible hand" of the market, forces out of our control, transnational businesses and globalization. This encourages us to leave decisions about the economy to the "experts", to those who understand the economy and to those who supposedly "make a difference" in economic terms.

This fact sheet is a technical report which introduces  the major international and inter-governmental players in the global economy within the context of existing commitments made by  Canadian governments on women and the economy. As a reference guide, it provides information on where international economic decisions are made, who in Canada is working in these areas and where women could be active.

WHERE ARE INTERNATIONAL ECONOMIC DECISIONS MADE? 

An increasing part of economic decision- making is taking place outside of Canada, and having a direct impact on what decisions we can and cannot take. Globalization is changing the nature of Canadian society and economy. It will and already has had profound effects on women's lives. It will result in more decisions being made in Trade Organization.  The Canadian international organizations like the  International Monetary Fund or the World  governments are making decisions that ensure that Canada is trapped in the directions set at the international level. Increasingly, our economic decisions, especially in the areas of trade, monetary and investment policies, are constrained by the agreements our country has signed. At times, the economic treaties are at the expense of other international commitments we have made to women's equality or human rights. 

The federal government has the exclusive responsibility to enter into international agreements or make international commitments. But provincial governments are bound by the agreements made by the federal government; opting out is not a choice. All levels of government are accountable for the international commitments made by Canada. 

WHY SHOULD WE WORRY ABOUT IT?

While the Canadian governments have been actively involved in establishing their economic policies, they have only made limited links between gender and the economy, primarily around providing more information. Although the status of women parts of the government are interested in the links between women and the global economy, the Federal Plan for Gender Equality illustrates that these commitments may not be widely shared by all Ministries. The Department of Finance gives no serious attention to these issues in the Federal Plan or in its own work. As well, none of the commitments made by the governments at any level have to do with global economic policies. The federal government has  made commitments related to women and the economy at several international meetings including  the fourth World Conference on Women. 

Other international commitments are found in the International Covenant on Economic, Social and Cultural Rights and the Social Summit Declaration

WHICH INTERNATIONAL ORGANIZATIONS ARE INVOLVED?

G-8

The group of 8 is a annual meeting of the leaders of the eight strongest economies, including Canada. The next meeting will take place in Köln, Germany, from June 18-20, 1999.  The leaders identify areas in where they want to work together and outline their priorities. Canada's Prime Minister usually attends these summits. Non-governmental groups have organized alternative people's summits in the same city in parallel with many of the leaders' summits. 

Organization for Economic Cooperation and Development (OECD) 

The OECD is a group of 29 rich countries primarily in Europe and North America. It sets policies related to development assistance, economic cooperation, finance and investment, labour and many other areas. It has looked at the role of women in the economy, and especially women's employment. The OECD primarily works through committees, but its Council meets once a year.   The Minister of Finance usually attends these meetings. The OECD has the Business and Industry Advisory Council (BIAC) and Trade Union Advisory Council (TUAC). Some Canadian unions like the Canadian Auto Workers have been on TUAC. 

OECD discussions on women have often been limited to the "women's area" and employment but have not included gender in discussions on trade or investment. 

Asia - Pacific Economic Cooperation (APEC) 

APEC promotes trade and economic cooperation between 21 countries which border the Pacific Ocean. Since 1989 it has expanded its focus from trade policy to include support for small businesses, tourism, energy and fisheries.  A first Ministerial meeting on women, October 1998, discussed links between gender and trade liberalization and the integration of gender. The next leader's meeting will take place September 9 - 10, 1999 in Auckland, New Zealand. 

APEC established the APEC Business Advisory Council in 1995. Women's groups in the APEC region organized a Day of Protest to parallel the APEC Leaders meetings and raised concerns with human rights, environment, labour rights, women, and the poor. 

United Nations Conference on Trade and  Development (UNCTAD) 

UNCTAD was established by the United Nations in 1964 to help developing countries use their trade, investment and development opportunities, and to help them face challenges arising from globalization and integrate into the world economy equitably. UNCTAD has 188 member countries and meets as a conference every four years at the Ministerial level to set priorities.

Trilateral Commission 

The Trilateral Commission, established in 1973 by David Rockefeller, is a by-invitation- only group of 335 elite from North America, Japan and Europe helping to set the direction for the world economy.  There are 15 members from Canada.

World Economic Forum

The World Economic Forum, formed in 1971, is driven by business to provides advice on economic matters. The Forum includes an annual meeting in late January of approximately 2000 world economic, political, academic, media and cultural leaders around a specific theme. The Forum has standing as an NGO at the United Nations.

WHICH OTHER INTERNATIONAL ORGANIZATIONS AND COMMITMENTS CHANGE OUR  LIVES?

North America Free Trade Agreement (NAFTA)

International Women's TribuneNAFTA began in 1994 between Canada, the United States and Mexico to eliminate barriers to trade and make sure that countries treat goods from the other countries as if they were from within Canada. This includes not charging duty when goods cross borders, not limiting the number of goods from the other country that can come into the country and making it possible for business people to work easily in each other's country.

The Free Trade Commission is responsible for the agreement. It has Cabinet-level representatives from each government including Canada's Minister of International Trade. There are over 30 working groups and committees working on specific aspects of the treaty and its implementation, none of which deal with the effects of the treaty on women.

Free Trade Agreement of the Americas (FTAA) 

This agreement is currently under negotiations with the 34 countries which make up the FTAA.  Completion is expected by 2004. Canada is currently the Chair of the FTAA and the chair of its Trade Negotiation Committee until Oct. 31, 1999. Canada will host the meeting of Ministers of Trade of the FTAA in Toronto, November 1-2, 1999. 

APEC Free Trade agreements

The APEC leaders have agreed to work towards free trade agreements with their countries. The goal is to have agreements for 'developed' countries (including Canada) by 2010 and for 'developing' countries by 2020. 

World Trade Organization (WTO) 

The WTO , begun in 1995, taking over the General Agreement on Tariffs and Trade (GATT). It is the largest and potentially most important global economic decision-making organization in the world. Its primary purposes are to regulate and monitor the international trading system so that there will be fewer barriers to free trade in the future.  It regularly reviews every member country's trade policies in light of the treaties and tells them where they could do better. It provides for dispute resolution panels when there are disagreements and helps develop and negotiate new trade agreements. 

The WTO is guided by a Ministerial Conference, which meets at least once every two years and is open to representatives of all 133  WTO members. Canada is represented at the Council by the Minister for International Trade.

Investment policy agreements

There are many existing investment agreements which provide guidelines for transnational corporations' actions in countries that they invest. There have been at least twelve international agreements which have been binding, including parts of NAFTA . Additional non-binding agreements have been adopted by the World Trade Organization, the OECD, APEC and the World Bank. The most recent investment agreements were the 1997 WTO General Agreement on financial services and the 1997 OECD Convention on bribing foreign officials in international business transactions.  UNCTAD has been monitoring investment agreements to help developing countries use these when multinational corporations want to invest in their countries.

Multilateral Agreement on Investment (MAI) 

International Women's TribuneThe Multilateral Agreement on Investment is intended to be a bill of rights for investors, primarily multinational businesses. It will require that governments treat foreign businesses the same as local businesses and remove any restrictions to their work within a country. It will allow free movement for business across the world and allow business to sue governments which fail to provide this. The first round of negotiations took place in secret at the OECD and were ended in the fall of 1998 primarily as a result of the work of NGOs. A second round (MAI 2) will likely move to the WTO, probably  in the Working Group on the relationship between trade and investment. Critics have argued that the MAI will change the international system as we know it, giving the same rights to businesses as to states, without any accountability to the people of the world.  The MAI will also promote low-wage, limited protection jobs, undermine community development programs and hurt the environment. 

International Monetary Fund (IMF) 

The IMF was established just after World War II to ensure that there would be a sound international financial system in place around the world. It is responsible for helping countries when they are having troubles meeting their financial obligations, as a lender of last resort, often requiring structural changes to a country's economy in order to get loans,  and regulating international currency flows.  It has 182 members, including Canada, and is governed by a Board of Governors which meets annually.  Members sign on to the Articles of Agreement which in effect give guidelines for their country's economic policies. The IMF monitors the exchange rate policies of all members and does a thorough review of individual countries' monetary policies every second year under Article IV.  Canada is currently under going its 1999 Article IV  consultations.

ACTIONS ON WOMEN AND THE GLOBAL ECONOMY

Many women's groups and other non-governmental organizations  (NGOs) have presented an alternative picture of the world economy and ideas for alternative ways to develop a global economy.  At the Beijing Women's Conference in 1995, NGOs adopted their own Declaration. There has also been an international NGO campaign and declaration against the Multilateral Agreement on Investment organized in part through the International Forum on Globalization. Several international women's groups have begun to organize around gender and the global economy including: Women take on the World Trade Organization (WTO2) and the Feminist Global Alliance on Economic and Social Justice. Development Alternatives for Women for a New Era (DAWN), a group of women from Southern countries, has been on the forefront of researching the effects of globalization on women in developing countries.  Others, like Women's Environment and Development Organization (WEDO) and Social Watch, are monitoring government actions on international commitments.