*************************************************************************** The electronic version of this document has been prepared at the Fourth World Conference on Women by the United Nations Development Programme (UNDP) in collaboration with the United Nations Fourth World Conference on Women Secretariat. *************************************************************************** AS WRITTEN CENTRE DU COMMERCE INTERNATIONAL INTERNATIONAL TRADE CENTRE CENTRO DE COMERCIO INTERNACIONAL Fourth World Conference on Women, Beijing, 4-15 September 1995 The Strategic Role of the Foreign Trade Sector in the Economic and Social Advancement of Women, Statement by Mr. J. Denis Bélisle, Executive Director of International Trade Centre UNCTAD/GATT (ITC) Madam Chairperson, Mr. Prime Minister, Mr. Secretary General, Ms. Mongella, Distinguished Delegates, Ladies and Gentlemen, It is a privilege to address such a distinguished gathering and have the opportunity to share with you our views on how the International Trade Centre UNCTAD/GATT (ITC) can contribute to the advancement of women within the terms of its mandate of trade promotion and export development. Equity, employment and environment are essential to sustainable human development. While foreign trade can contribute to all three areas, my remarks will focus on equity and employment. At first sight the promotion of foreign trade may not appear so vital for development. It is, however, one of the principal instruments at our disposal today to promote equity in the larger sense of the word, provide gainful employment for women and men, and safeguard the environment. Trade development thus has a catalytic effect on both economic and social progress. The foreign trade sector has assumed a central role in national development strategies. This is underscored by the accelerated trade-led globalization of the world economy and the successful conclusion of the Uruguay Round of Multilateral Trade Negotiations. A primary objective of governments and enterprises alike throughout the world is thus to perform successfully on international markets. This however brings about greater competitive pressures creating a situation which inevitably favours the more efficient players as market forces prevail. Will this be at the expense of women who historically have not enjoyed the same economic and social rights as men, including access to productive resources, education and training, and employment opportunities? Can efficiency and equity go hand in hand? In the interests of both equity and efficiency, ITC is deeply concerned about ensuring the active participation of women and men, in both developing and transition economies, in international trade. We are committed to finding solutions to prevent an increasingly competitive international trade environment from further marginalizing any part of society. Yet when we speak of international trade, the issue of gender equity is not one that naturally springs to mind. At the same time, the essential contribution of women to the economy and the critical importance of export-led growth in socio-economic development are no longer disputed. The question is how can women's contribution be harnessed in the interests of both development and equity? While ITC certainly does not lay claim to all the answers, we are convinced that the development of the foreign trade sector is a vehicle for promoting both social equity and economic sustainability. In our experience, this can best be done by creating an effective linkage between production and trade as a logical extension from production for domestic markets to production for external markets. ITC's strength lies in the specificity of its mandate and its practical approach - at the level of the enterprise and business organizations. This of course implies a sound knowledge of the needs of the business community. In this context, ITC carried out a Worldwide Survey of Women in Trade Development to identify the present status and needs of women entrepreneurs in production and trade, as well as national machineries and women's business organizations. One of the objectives of this survey was to identify national capacities to address the issue of women in trade development as well as to identify the existing trade environment in which women operate, both intra-regional and international. The results of this survey confirm that specific actions need to be taken in product and market development, and in facilitating women entrepreneurs ' access to fundamental 'tools' for trade. Despite policy and strategy efforts in many developing countries towards the external sector and private sector development, more needs to be done to stimulate the entrepreneurial potential of women. In most developing countries, the concentration of women entrepreneurs is mainly in micro and small enterprises, particularly in the informal sector owing to the low barriers to entry. Linking production to export markets is a practical means of ensuring the survival and sustainability of such enterprises as well as facilitating the transition into the formal sector for small and medium-size enterprises (SMEs). This is particularly true in trade-oriented SMEs which not only generate employment, but contribute to dispersing economic activity and distributing income in rural areas, as well as provide an effective outlet for entrepreneurial talent while creating dynamic growth impulses throughout the economy, including rural areas. The SME sector offers, therefore, an appropriate environment for entrepreneurial development, especially for first generation women entrepreneurs, as it affords an easier path to bypass gender inhibitive factors because of the size of the enterprise, the low level of employment and the one-tier management structure. Three determining factors have led to the focus on women entrepreneurship and trade. The first is the expansion of the private sector where micro, small and medium enterprises play an increasingly predominant role in almost all economic activities, whether formal or informal. The second is the increasing incidence and visibility of women entrepreneurs, particularly in the informal sector, starting or fully engaged in micro and small businesses. The third is the shift in general economic policy in developing countries from inward-looking, import-substitution policies to outward- looking, market-oriented strategies. Hence the approach of ITC to develop entrepreneurship in the external trade sector as a means to promote the integration of women. We feel that women's systematically disadvantaged economic and social position qualifies them for special consideration, particularly in the external trade sector which can result in far-reaching positive consequences. The 1985 Conference in Nairobi was about strategies, setting the framework within which equality, development and peace could be achieved. This Conference is about concrete plans of action which will translate strategies into results. The critical importance of the external trade sector should be recognized in this context and be properly reflected in the global Platform for Action which will be the core document lending legitimacy to post-Beijing actions. In this context, I would like to reiterate the trade-related recommendations ITC proposed to the regional preparatory conferences and which we strongly believe should be taken into consideration in the global Platform for Action. Specific measures to create an effective enabling environment for women- operated enterprises comprise: 1. Access to credit and financial institutions. 2. Training and skills development programmes for training institutions in the areas of enterprise management, export marketing, and costing and pricing, import operations and techniques. 3. Technical support services, such as product design and adaptation, technology transfer, quality control and packaging to support and promote the creative entrepreneurial spirit. 4. Business support services, including trade information and market intelligence, and particularly information on business opportunities. 5. Marketing facilities, including cooperative arrangements, especially for SMEs, to create linkages with external markets. These are areas where we feel the economic decision-making role of women can be enhanced in an effective manner. Let me conclude by affirming ITC's strong and continued commitment to cooperate with all other partners in development with complementary mandates. I am confident that our joint efforts will contribute to achieving equity and efficiency for women and men everywhere. Thank you.