Institutionalising Gender Responsive Budgets in the Commonwealth: Lessons Learned and Critical Next Steps

Esther Eghobamien Esther Eghobamien Commonwealth SecretariatCommonwealth Secretariat

FMM, Limasol, CyprusFMM, Limasol, Cyprus

Gender Equality and the Commonwealth Gender Equality is:

A key factor for achieving socio-economic development, democracy and peace;

A fundamental Commonwealth value and principle: Development that rests on the foundations of democratic governance, the rule of law, respect for human rights, gender equity, and peace and security

A crosscutting issue to be mainstreamed in all policy formulation, planning processes, programme implementation, monitoring and evaluation;

Essential for an equitable and sustainable future.

Key Issues and Concerns

Reality check: 70% of the world’s poor are women and girls compared to men and

boys; On average annually over 500 000 women die from maternal

causes - in Sierra Leone it’s 1 in 8 women. In sub-Saharan Africa the proportion of women living with HIV/AIDS

has increased to over 60%; Victims of today’s conflicts are mainly women and girls; Around the world, women make up only 18.4% of parliamentarians;

Impact of the current global context: 53 million more people, mainly women and girls, trapped in

poverty Half of the women in the world are in “vulnerable jobs” that is, they

are self-employed in the informal sector or work as unpaid family members

Infant and maternal mortality rates are projected to increase - an estimated 200,000 to 400,000 additional infant deaths per year on average in the 2009 to 2015 period.

Worst decline in Global Trade in 80 years and an expected contraction in public spending

Calls for redefining values, changing the rules of the game and priorities of economic and financial systems

Commitment to Gender Responsive Budgets

Commonwealth Finance Ministers Meetings have recognised the critical importance of gender-responsive budgets (GRBs) to effective economic governance

Ministers agreed to receive report on GRB implementation biennially at the Finance Ministers Meetings

In 2005 Commonwealth Finance Ministers “urged members to establish an institutional

mechanism within their countries to monitor progress on implementing GRBs.”

Report reviews progress between 2007 and 2009

What is Gender Responsive Budgeting?

Analyse Fiscal & Monetary policies: taxation, revenue, expenditure , deficits and overall macro-economic policies from a gender perspective

Examine how policies and budget allocations affect the economic and social opportunities of women and men both short and long term

Ensure that spending allocations do not perpetuate gender inequalities

Recognise the varied needs of women and men, girls and boys as market agents; fosters equity led growth and targets poverty reduction

2

Means for determining and redressing any unequal effects of government revenue and expenditure policies on women and men.

Key Elements of Functional GRBs

Identify, analyse and prioritize important gender issues in country

Measure to what extent government policies, programs and projects improve or entrench gender disadvantage and disparities

Check that budget spending allocations and

revenue raising measures promote gender

equality, women’s empowerment, transparency

and accountability

Monitor whether priority setting benchmarks,

policy and guidelines are gender responsive, and geared towards equitable service delivery and results in transformative change

Monitor and Evaluate outcomes and impact of the budget annually

Highlights 2009 GRB Status Report of the Commonwealth

Outlines: How GRB had been built into countries’ budgeting

systems Results and outcomes of GRB in reporting

countries Findings, lessons and good practices Persistent gaps and challenges in implementation Monitoring and evaluation actions Recommendations to governments

Key Findings and Lessons: 1. Evidence of Engagement

Recognition and articulation of commitment from several countries

International instruments and conventions adopted Instruments and conventions domesticated through

legislations, policy and action plans for gender equality

Evidence of institutional arrangements for implementation

Strengthened integration of GRB into existing national mechanisms

Use of PRSPs, MTEF, Budget circulars: Bangladesh, Malaysia & Tanzania

2. Evidence of Critical First Steps

Directing Budgets towards specific gender equality work

Varying levels of allocations by governments for gender equality

Comparisons to allocations in other priority areas unavailable

Broad range of GRB activities in support of implementation

Diversity and differences in activities and actors by some governments

Advocacy, building capacities, awareness-creating, policy analysis, planning, monitoring etc.

3. Evidence of Good Practice

Mechanisms for Institutionalising GRB Budget guidelines in Tanzania and Ghana with additional

Budget Monitoring Team and Certificates in Ghana Budget Background Documents: India and South Africa Performance Statements Australia, Ghana & South Africa Increasing percentage of public expenditure targets

women

Promoting Women’s Leadership Participation of women with capacity in budget matters

has been pivotal: South Africa, Uganda, Australia

Evidence of Good Practice contd.

Initiatives Securing Women’s Rights CEDAW providing a standard to evaluate results:

Australia Child Tax Credits: UK Care Burden: Australia Security of Women: St Lucia, Australia

Budget decision making at local levels: India

Parliamentary role:

Key role in GRB implementation played by women parliamentarians in Uganda & South Africa

Challenges and Barriers Limited capacity within and outside

government Few have skills to understand, analyse, interpret and make

linkages of the consequences of budgetary allocation/decision making to gender equity in order to make relevant interventions

26.4% reporting countries affirms challenges to reforming budget systems to GRB principles and goals of equity

Complexities of the budgeting processes are daunting even for parliamentarians who are accountable for these budgets

Intensive capacity enhancement for NWMs and constructive engagement between NWMs and finance ministries critical

Invisibility and lack of prioritisation of gender equality as a development issue undermines GRB effort

Not all sectors articulate gender needs and priorities for responsive resource allocations and implementation levels.

Challenges and Barriers

Parliaments in most countries cannot change the overall budget envelope:

They should be able to influence priorities.

Absence of “critical mass” to lead transformations for GRB:

Require political commitment at the highest levels for gender equality

Only a handful of countries have women (or any) politicians committed to undertaking GRB’s.

Where men are sensitive to gender concerns they often will encounter other challenges including capacity limitations.

Require GRB-capacitated, active & well informed NGOs to be brought formally into the GRB process of Governments

Challenges and Barriers

Most GRB’s focus on women instead of integrating a gender perspective in all budget analysis:

overlooks areas where men’s needs define the norm, i.e. the rest of the budget .

Absence of accountability to women and gender priorities at all levels hinders GRB:

Accountability mechanisms (such as parliament, national women’s machineries, women NGO’s) fail to link women’s empowerment and gender equality with overall national development, poverty eradication, economic prosperity or Equity informed Growth.

Accountability hampered by lack of institutional capacity for implementation, monitoring and assessment

Lack of sex disaggregated data hinders analysis and monitoring

Recommendations Jointly conduct with COMSEC, annual gender appraisal/audit of

Finance Ministries to quarantine systemic barriers and track gender responsive spending and revenue decisions

Draw down on Commonwealth technical funds for institutionalising GRB

Increase resources to NWMs to ensure they have adequate capacity and tools to advise Finance and other ministries on GRB

Develop guidelines for reporting on Gender Equality in all existing spending and revenue raising policies and programs and attach such guidelines as part of budget call circulars

Make gender equality visible in budgets using priorities and bench-marks to fulfil commitments

Involve parliament and CSOs in GRB processes to strengthen implementation an increase Democratic Accountability

Rethink ethics, values and priorities shaping and driving financial systems and markets

Re-invent Capital Management

Albert Einstein: ‘We cannot resolve today’s problems using the strategies of old’

Why GRB is Central to Reforms and Recovery

$5trn projected new female earned income key to post recession economy ( Newsweek, Sept. 2009)

Women influence or make 80% of entire household purchasing decisions

In Iceland, female governed Capital Market sole survivor of financial system collapse and bankruptcy

Cyprus Women’s Cooperative Bank model now running as profit bank with Eu13m deposit base

According to “Fortune 500”, companies with the highest proportion of women on their senior management teams found to outperform companies with the lowest proportion by close to 35%

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GRB Central to Reforms and Recovery contd.

73% of consumers would be prepared to pay more for environmentally friendly products

67% of consumers would rather see brands spend more money on good causes and feel that too much money is spent on advertising and marketing

Almost 2/3 of those graduating from universities and providing new human capital resource are women

That the richest person in mainland China is a woman and she is a selfmade entrepreneur

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Role of Finance Ministers and Ministries

Concretize commitment to GRB for achievement of growth, development, peace and democracy and sustainable recovery from the financial and economic crisis

Commitment to Action on Key recommendations of study on GRB progress and report by 2010 WAMM and annual CFMM

Commitment to adequately resource and formally engage with Women’s Affairs Ministries on GRB and equitable, sustainable recovery

Lead gender sensitive reforms in financial policies, structures and operations including recovery processes

GRB and Gender Equality Mainstreaming is Everyone’s Business

How can Finance Ministries play the lead role effectively?

What specific lessons have been learned?

What are the persistent challenges?