*{Financing for the Future - Global Policy Forum - Social and Economic Policy Financing for the Future By Rajyashri Waghray Women's Environment and Development Organization March 2001} Women involved in the UN Financing for Development (FfD) process are saying that economic growth is not synonymous with sustainable development and it’s time to rethink the current economic policies that aggravate poverty and gender inequity. Even though they constitute the majority of the world’s poor and are the first to feel the brunt of negative development policies, women worldwide have so far been excluded from defining the development process. As a result, women are now taking an active stand in the FfD process by bringing to the meetings a gender perspective that has been largely absent from previous discussions on the topic. The High-Level Intergovernmental Event on Financing for Development began in May 2000 when the UN General Assembly agreed to establish a process on how to finance the commitments made by governments at past UN conferences, including the Beijing Fourth World Conference on Women, Copenhagen World Summit for Social Development and the recently concluded Millennium Summit for World Heads of State. The World Bank, the International Monetary Fund (IMF) and the World Trade Organization (WTO) have for the first time come together with the United Nations in an FfD process to tackle ways in which the international monetary, financial and trading systems can better support development. The second PrepCom concluded this February with clear positions from the regional blocks. While most governments agree on the relevance and importance of the topics being discussed, the content and scope have resulted in sometimes rigid positions along the traditional developed/developing country divide. The G77 and China, representing more than 130 developing countries, believe the global environment has changed significantly in the last decade. These changes require a different approach and a different set of policies that distribute the benefits of globalization more equitably. On the other hand, industrialized countries claim that domestic resources are the primary means for financing development. Therefore they emphasize that developing countries should promote a “favorable and constructive” domestic environment, based on “a sound macroeconomic framework and good governance.” Such an environment would be attractive to private investment, both domestic and foreign, and would promote economic growth. Furthermore, industrialized developed countries call on governments to urgently address conflict prevention, corruption and the spread of HIV/AIDS. They propose to enhance the benefits of globalization by engaging in trade-related technical assistance and capacity-building programs targeting the developing countries. However, the developing countries argue that they are far from reaching the necessary growth rate and investment ratios that could lead to development. This is due to inherent economic problems such as a poor resource base, low productivity, lack of adequate financial institutions and their overall historical past. They believe that mobilizing domestic resources cannot be viewed in isolation from the international environment. They are thus calling for a broader and more effective involvement of developing countries in international decision-making, governance and norm setting processes, especially in the IMF, WTO and the World Bank. But while governments do battle on the issues that they believe to be most critical, women are asking: How can other perspectives and concerns be brought into the process? And, who will benefit from the outcomes? The Women’s Caucus, facilitated by WEDO, has been lobbying to advance a women’s sustainable development agenda. They are asking governments to redirect their focus and examine the social realities of the prevailing macroeconomic framework. Development should instead be linked to sustainability. This means restoring and protecting the natural environment and resources, addressing gender, social, cultural, economic, political and racial inequalities and promoting strong and diverse communities as part of a vibrant international community. The UN Secretary General’s Report on Financing for Development sets out the official recommendations to the governments for their consideration. The report reflects the narrow focus of the existing development paradigm where fiscal, financial and trade systems are about money and not about sustainable communities and the people who populate them. Viewed from a gender perspective, it fails to acknowledge the ways in which existing market, as well as non-market, institutions are permeated by underlying gender biases. The FfD process and its outcome must recognize women’s contributions to the economy, both through their paid and unpaid work, and push for gender-aware policies and appropriate financing strategies. Unless women are recognized as equal partners, the constraints on their participation in the development process and imbalances in resource allocation and distribution will undermine economic growth and equitable human and sustainable development. On the issue of domestic resources, policy makers need to recognize that the way in which governments raise, allocate and spend resources are not gender neutral. The Secretary-General’s report has a narrow focus on financial and monetary objectives, which do not provide for enhancing the capabilities of the world’s poor—the majority of whom are women. In order to develop financial resources for women on a major scale, governments and financial institutions must look beyond micro-credit initiatives as the primary way of increasing women’s economic empowerment. While these lending programs have played a beneficial role, they do not wholly or adequately address women’s financial and entrepreneurial requirements. Governments must develop gender-sensitive fiscal policies, including direct and indirect tax policies and tax exemptions, that take into account the multiple roles that women play. Another key domestic priority for women is adequate social protection. Basic public services such as water, health and education cannot be left to the market alone. Governments have a responsibility to ensure affordable, accessible and equitable distribution of such public services to all, regardless of which sector provides these services. National governments play an important role in setting priorities and allocating resources to meet the critical domestic needs of women and their families. One approach is the creation of gender-sensitive budgets that can be used to direct needed resources. Foreign investments operate indiscriminately and pose considerable risks to women and society in general unless they are linked to social development objectives within the host country. The extent to which foreign financial resources can contribute to sustainable development and women’s welfare depends on how they are allocated, directed, employed and transferred. International agreements that encourage the transfer of technology and deepen the linkages between foreign and local affiliates should be evaluated in terms of social impact and gender implications. Countries also need to take the discussion on good corporate governance a step further and articulate its social and economic linkages within the host countries as well as their social development agenda. The Women’s Caucus is pressing for the provision of integrated savings, insurance, and accessible financial services. The Caucus also seeks to increase women’s access to assets and resources such as land ownership and property rights, information and technology. Many women have expressed disappointment that the World Bank, IMF and WTO presentations have lacked a gender perspective. WEDO and UNIFEM brought together women from around the world for a Women’s Consultation to prioritize issues in the FfD process and plan strategies to influence its outcome. Those gathered agreed that the long-term goal is to challenge the neo-liberal economic framework. The short-term goal is to enable women to have an impact on global economic policy within the current macroeconomic framework. However, the real challenge for women is to go beyond identifying the inadequacies of the current economic framework and to find viable alternatives that address the issue of poverty from a gender, class and race perspective.