Front Cover
 Title Page
 Table of Contents
 Description of the gender policy...
 Principles guiding implementation...
 Annex 1: Case study
 Back Cover

Title: Gender analysis tool kit
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00080527/00006
 Material Information
Title: Gender analysis tool kit
Physical Description: 1 case : col. ill. ; 27 x 34 cm.
Language: English
Creator: GENESYS Project
Futures Group
United States -- Agency for International Development. -- Office of Women in Development
Publisher: United States Agency for International Development, Office of Women in Development
Place of Publication: Washington D.C
Publication Date: 1994
Subject: Women in development -- Evaluation -- Handbooks, manuals, etc   ( lcsh )
Economic development projects -- Evaluation -- Handbooks, manuals, etc   ( lcsh )
Sex discrimination in employment -- Evaluation -- Handbooks, manuals, etc   ( lcsh )
Genre: federal government publication   ( marcgt )
non-fiction   ( marcgt )
Bibliography: Includes bibliographical references.
Statement of Responsibility: Genesys.
General Note: "Genesys, a project of The Futures Group in collaboration with Management Systems International and Development Alternatives, Inc. and United States Agency for International Development, Office of Women in Development, Dept. of State."
General Note: "Contains ten analytical tools"--GCID framework t.p.
General Note: "Under the GENESYS Project for USAID G/R&D/WID Contract # PDC-0100-Z-00-9044-00"--GCID Framework t.p.
 Record Information
Bibliographic ID: UF00080527
Volume ID: VID00006
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 31425196

Table of Contents
    Front Cover
        Front Cover
    Title Page
        Title Page
    Table of Contents
        Table of Contents
        Page 1
        Page 2
        Page 3
        Page 4
    Description of the gender policy inventory
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
    Principles guiding implementation of the gender policy inventory
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
    Annex 1: Case study
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
    Back Cover
        Page 30
Full Text

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Gender and Policy
A Tool forAssessment
of Policy-Derived
Impacts on Men and
Prepared by
Wesley Weidemann

September 1994
Under the GENESYS Project for SAID G/R&D/WID
Contract # PDC-0100-Z-00-9044-00



L Introduction 1
1.1 Reason for Developing the Tool 1
1.2 Purpose and Usefulness of the Tool 2
1.3 Strengths and Limitations 3
1.4 Target Audience 4
1.5 Layout of the Tool 4

II. Description of the Gender Policy Inventory 6

III. Principles Guiding Implementation
of the Gender Policy Inventory 12
3.1 Planning the Inventory 12
3.2 Preparing for Fieldwork 13
3.3 Preparing and Completing the Inventory 14
3.4 Follow-Up 15

IV. Conclusion 15

Bibliography 16

Annex I: Case Study 20


. Introduction

1.1 Reason for Developing the Tool
The gender policy inventory is a rapid appraisal tool for mapping the policy and institutional environment and for
developing hypotheses about how policy, related laws, regulations, and administrative procedures affect different
sectors of the population. The inventory attempts to identify links between macro-level interventions and micro-level
impacts and behavior. The inventory tool builds upon existing analyses that recognize that policies, laws, and
regulations prevent women from fully participating in economic development,1 by examining gender issues in
administration of policies and regulations.
The GENESYS Project initiated work on the gender policy inventory to improve documentation of the effects of
donor-funded projects and policy interventions on people's lives and to focus the attention of policymakers and
donors on both women and men as economic actors. While governments and donors recognize that policies, laws,
regulations, and administrative procedures are critical for fostering economic development, they often assume that
policy performance, targets, and impacts are less significant at the micro level.
The gender policy inventory technique is designed to formulate hypotheses about the differential impact of poli-
cies on diverse populations, especially on women and men. This tool, adapted from the inventory methodology devel-
oped by USAID's Agricultural Policy Analysis (APAP) Project2 to assess agricultural policies and their impacts on
subsectors and target groups, attempts to link macro-level policy decisions to outcomes for men and women, their
behavior, and economic welfare.
This tool was developed to overcome the fact that gender is frequently overlooked in studies of policy-derived
impacts, even though women's relative economic disadvantage has been well documented. Few policy initiatives have
been accompanied by systematic, step-by-step analysis of unanticipated effects of development policies on target
groups. Standard policy analysis usually fails to encompass the entire sequence of events from the formulation of
policies to their ultimate consequences for both men and women at the firm and household level.
Where deliberate efforts are made to document potential or actual policy outcomes based on gender, results often
prove unsatisfactory in distinguishing if and how women are affected differently than men. For instance, analysts
from the APAP Project experienced difficulty in tracing links between agricultural policy and outcomes for women
farmers in Senegal, Zaire, Guatemala, Malawi, Thailand, and Yemen. Their use of an inventory methodology to assess
the impacts of policy on women in the agricultural sector yielded inconclusive results because they did not consider a
number of intervening factors, such as the different types of crops men and women produce. Without a thorough
understanding of the factors that produce differential impacts on male and female farmers, it was not possible to

1 The Gender Dimensions of Development, World Bank Operational Manual, April 1994.
2 The Agricultural Policy Analysis (APAP) Project is a USAID-sponsored project thatprovides policy research, technical assistance, and training. The project,
implemented byAbtAssociates Inc., is now in its third five-year phase.



identify or implement corrective actions that effectively and equitably benefit both. The gender policy inventory
intends to elucidate both how and why policies may affect women and men differently.
The best way to ensure that women are not left out is to focus on both men and women and to apply the insights
gained in the design of programs and projects to policy analysis. A World Bank report concludes "... economic agents
are not neutral, but have highly constrained opportunities, incentives, and choices which are gender-specific-gender
is a central determinant of different access to, use of, and control over economically productive resources."3 Given
that both women and men make key contributions to economies worldwide, it is vitally important to understand the
origins of women's relative economic disadvantage in access to capital, markets, and financial services. The gender
policy inventory is intended to develop such an understanding to equalize opportunities and increase women's social
and economic status.

1.2 Purpose and Usefulness of the Tool
The gender policy inventory is a rapid appraisal tool intended to diagnose differential effects of policies on women
and men, rank them in order of their importance, and develop hypotheses for further testing. It is not designed to
prescribe courses of action without further analysis. The inventory methodology consists of four components:
Listing of interventions that affect a particular sector;
Mapping of the agencies, ministries, and organizations responsible for implementation and
enforcement of these interventions;
Analysis of the intended and unintended impacts of the interventions; and
Brief discussion of possible alternative corrective actions.

The gender policy inventory analyzes gender-related issues in each step of the sequence, from the formulation of a
policy to the observed or potential impacts of this policy on groups and individuals. The analysis of gender-related
impacts is performed at five different levels:
Macroeconomic or sectoral policies
Laws intended to define or enforce these policies (enabling legislation)
Regulations to implement laws and policies
Administration of these regulations
Impact on households and individuals

See Figure 1 for a graphic depiction of this hierarchy of levels in the policy chain.

The inventory introduces social, cultural, and political factors into economic analysis. It is designed to provide
substantial information on the local socio-institutional context from the point of view of different stakeholders, dis-
tinguished by gender and other social categories, such as class, ethnicity, and occupation. The methodology maps
critical segments of the complex economic environment in a concise matrix that indicates the origins of a particular
constraint or problem and may also indicate potential opportunities. The inventory can identify various aspects of a

3 World Bank. 1993. Paradigm Postponed: Gender and Economic Adjustment in Sub-Saharan Africa.


problem, show where responsibility lies (e.g., which agency is causing
the constraint), and reveal alternative courses of action to reduce the
Environment constraint.
The GENESYS tool emphasizes how to use a policy inventory to
identify differential impacts on men and women and to suggest correc-
Enabling tive measures. It focuses policymakers' attention on several key ques-
tions about policies, laws, regulations, and administrative procedures:
Do current strategies promote or hinder economic development?
Regulations Which should have priority for reform, given their impact on
economic development?
m What impacts should be considered in evaluating
possible reforms?
tion of Which affect males and females differently?
Administration of
Regulations The answers to these questions can be used by decision makers in

the host government and donor organizations in several important ways:
m To determine topics that require further investigation;
Firm os & m To determine the broad issues of policy, legal, regulatory,
and public administrative reform, if such reform is needed;
q To identify effects of donor-funded activities;
m To support policy dialogue, both within the government and
between the government and donors;
females ales To guide selection of issues for further analysis;
STo monitor overall developments in the enabling environment; and
m To highlight issues of inequality, based on gender, class, or sector.

1.3 Strengths and Limitations
The inventory technique has some of the same strengths and weaknesses as other approaches that attempt to
assess complex socioeconomic systems and institutions. Many economic models are flawed in that they ignore or
underestimate the impact that institutional jurisdictions, regulations, and administrative procedures have on the
micro level. The gender policy inventory is designed to identify some of the gaps in traditional economic analysis, to
question some of its assumptions, and to recognize unintended effects, with special attention to gender.
The strength of the gender policy inventory lies in the matrix that maps influences of various policies, laws, regu-
lations, and administrative procedures on households, businesses, industrial sectors, and on women and men in these
sectors. Preparation of an inventory matrix includes gender directly in the socioeconomic analyses. Another strength
of the gender policy inventory is that it departs from the top-down perspective of most economic analyses, used with
limited success in the past, in favor of a bottom-up approach.



In its current form, the gender policy inventory allows analysts only to estimate the potential effects of policies,
laws, regulations, and administrative procedures on target populations. It is useful for developing hypotheses and
identifying appropriate methods for further testing.
The approach described in this tool booklet is intended to assist the analyst in developing a gender-informed inven-
tory of policy impacts. While presentation of the results of the inventory is simple and straightforward, the analysis is
fairly complex. Using the policy inventory effectively requires knowledge of social science research and analytical tech-
niques and the ability to analyze gender dynamics in local institutions and households.

1.4 Target Audience
The end users of the inventory are policy analysts who require an easy-to-understand overview of a complex,
multifaceted problem to present to host government and donor decision makers. The gender policy inventory gives
decision makers a bird's-eye view of current policies, laws, and regulations and their role in sectoral and sub-sectoral
development; shows impacts on particular target groups; and can identify issues that have different impacts based on
Although an inventory can be conducted by donor and/or developing country government staff without outside
assistance, if analytic staff are available it is preferable to use this additional expertise to ensure that the inventory is
carried out rapidly and thoroughly. Direct participation of donor and government personnel in the exercise is highly
desirable to include the decision makers' interests during the analysis, ensure that in-country personnel are fully famil-
iar with the findings, and allow for follow-on dialogue and analysis.

1.5 Layout of the Tool
This policy inventory tool consists of an introduction, a description of the tool's matrix and its components and
uses, a blank matrix, a sample completed matrix, a description of the principles guiding the implementation of the
inventory, and a case study. The case study, attached as Annex I, is adapted from actual policy inventories conducted
in Yemen and Jordan.


II. Description
of the Gender
Policy Inventory


II. Description of the Gender Policy Inventory

The results of a gender policy
inventory analysis are presented in a
standard report format with a sum-
mary matrix (see Figure 2), and a
detailed discussion of the items pre-
sented. The matrix is organized so
as to list the institutions responsible
for policy interventions and to
emphasize how these interventions
affect the household or firm. The
inventory matrix is supplemented
with additional descriptive materi-
als and suggestions for follow-up
activities to address particular prob-

lems and test hypotheses that have
evolved from the exercise. The
inventory matrix:
* Identifies interventions such as
policies, laws, regulations, or
administration of regulations
(column 1);
* Describes the purpose of the
intervention (column 2);
* Identifies the agency responsi-
ble for the intervention
(column 3);
* Groups policies, laws, regula-
tions, and administrative
procedures (rows);

* Estimates the relative impor-
tance of each factor and its
impact on specific target
groups, ranking impact on a
five-point scale (columns 4-6);
* Analyzes descriptively the over-
all effects of policies on specific
target groups (column 7); and
* Lists alternatives or possible
actions to be explored
(column 8).4
As information is gathered and
analyzed, it is incorporated into the
matrix. Figure 3 (see page 9) shows
examples that help illustrate how
the matrix is completed and used.

Figure 2

Sample Blank Matrix of Policy Impacts
1 2 3 4 5 6 7 8

These titles and the content of these columns will vary with the types of policies being analyzed. For instance, for an agricultural policy, the relevant
columns might be "impact on the sector," "impact on small farmers," or "impact on women millet farmers."

Poiin TrgtGop

The eight columns structure the
analysis by categorizing the policies
and their implementors, impacts,
and implications.

Policy or action
(column 1)
Column 1 identifies particular poli-
cies or policy actions at various lev-
els that have an impact at the micro
(firm or household) level.
Household- or firm-level interviews
can uncover micro-level constraints
as well as opportunities. Constraints
are usually administrative issues,
which are based on regulations,
which in turn arise from legislation
and/or policy. Thus, it is often possi-
ble to trace an administrative barrier
or problem up to the policy level.

(column 2)
Column 2 explains the stated pur-
pose of the policy intervention
identified in column 1. As dis-
cussed above, this stated purpose is
not always reflected in the actual
results of the policy. For example,
regulations and laws developed to
protect the position of women may
sometimes damage their economic
or social position.

Implementing Institution
(column 3)
The government agency or regula-
tory body in charge of enforcing or
implementing the particular policy
intervention is noted in column 3.
The purpose is to chart the institu-
tional origins of various gender-
related impacts. Project assistance
often focuses narrowly on a sectoral
ministry and underestimates or

ignores the impacts that originate in
other ministries or sectors. For
example, a women's enterprise
development project may be housed
in the ministry of women's affairs,
but significant constraints to female
entrepreneurship may originate in
lending regulations (through the
central bank or ministry of finance),
lack of business skills (with respon-
sibility in the ministry of educa-
tion), unclear title to collateral
(with responsibility in the ministry
of commerce), and so on.

(columns 4-6)
Columns 4 through 6 estimate the
impacts, using a numerical scale, on
particular target groups, sectors, or
classes being covered in the gender
policy inventory. In the example in
Figures 2 and 3, the groups are the
general economy, small businesses,
and women. Estimates of the relative
importance of various policies'
impacts are depicted on a five-point
scale from -2 (very negative impact)
to +2 (very positive impact). This
ranking is meant only to show esti-
mated relative impacts. In the gender
policy inventory the ranking is usually
based on the best judgments of expe-
rienced analysts. Follow-up analysis
at the conclusion of the gender poli-
cy inventory can provide much more
description, detail, and precision.

Descriptive Analysis of
Impact (column 7)
Column 7 explains anticipated
effects of the policies in column 1
and makes explicit the criteria used
for setting the scale in columns 4
through 6. In some cases the effects
may be obvious, while in other cases
they can only be noted as hypothe-
ses for further testing. The assess-

ment of policy impact, including
formal or informal analysis of exist-
ing policies at the macro level, the
sectoral level, and the household
level, is complex and often subjective.
The information must be critically
reviewed using economic and socio-
cultural and behavioral analysis to
determine the results; the relative
importance of these results can then
be estimated. Where there is con-
flicting evidence of results, further
interviews and evaluations are
required to explain apparent

Possible Actions
(column 8)
Column 8 outlines alternative courses
of action that may be taken by donor
personnel, government decision
makers, or researchers. Depending
on the complexity of the problem
and the amount of analysis already
performed (in the gender policy
inventory or elsewhere), the possible
actions may range from further test-
ing of hypotheses to concrete pro-
gram or project initiatives. An
analysis of alternative actions that
arise from the inventory exercise can
be performed as part of the invento-
ry, or the inventory can be used sim-
ply to identify priorities for follow-
up and analysis at a later time.

4 Depending on the specific situation, the orga-
nization sponsoring the inventory may choose
to supplement the inventory with one or more
of the following:
Analysis of major issues, where alternative
reforms or priority questions for analysis have
already been identified;
Recommendation forfurther analysis ofspe-
cific reforms, where sufficient information
exists to make such a recommendation;
Design for a development assistance program
to build in-country analytic capacity or to
identify possible uses for program assistance.



The rows establish the level of
analysis and institutional focus.

Macro policy issues
Macro policy issues are stated in
official declarations of principles,
policy pronouncements, or national
development plans. Policy may be
derived from the law, or the law may
be derived from policy. For exam-
ple, the policy of a country may be
that certain types of court cases be
tried under common law or reli-
gious law. The policy of some
Islamic countries is to adopt the
principles of Shari'a in legislative
and economic policy. In other
countries, customary law or social
values may be the guiding principles
for economic policies. Many for-
mer socialist countries have adopted
a policy of equality of the sexes, pro-
tection of motherhood, children,
and youth. One outcome of this
policy is labor legislation that
restricts women from working in
mines or in factories where they
might be exposed to hazardous
chemicals and from working over-
time or night shifts. Laws derived
from national policy may require
maternity leave, periodic breaks to
nurse infants, and early retirement
for women. The economic impact
on women of such protective legis-
lation may be that they are effective-
ly barred from higher-paying jobs,
or that the costs of providing the
mandated fringe benefits for
women may be prohibitive for
employers. These policies intended
to protect women may indirectly
restrict their access to employment.

Legal issues
Legal issues are those that are writ-
ten into law. In many cases women
may be equal under the law (e.g., in
such areas as the right to own prop-
erty), but in practice property own-
ership may be handled differently
under prevailing traditions. While a
woman in a society may technically
be the owner of inherited property,
she may be unable to offer it as col-
lateral for a business loan because it
is held in the name of the head of
the household as custodian.
Therefore, the woman may not be
allowed to use her own property to
secure a business loan without the
signature of the male head of house-
hold. In such a case it is not clear
what the gender impact of taxation
of property would be, since the legal
ownership is subordinated to tradi-
tion. The woman may be required
to pay the tax on her property even
though she is not the legally regis-
tered owner, or the husband may
pay the taxes because the property is
registered in his name. This situa-
tion is an example of potential gen-
der-based impact of legal issues.
e". '.: Y i issues
Regulatory issues are government
regulations that apply to the firm or
household. For example, regula-
tions may dictate that all businesses
located in a particular jurisdiction
are required to pay taxes. One regu-
lation may require that taxes be
imposed on raw materials used in
the business. This tax would dis-
criminate against manufacturing,
which is a heavy user of raw materi-
als. Service businesses would be less
affected by this regulation. Because
women are less likely to run manu-

facturing businesses, they are less
likely to have to pay inventory tax,
and thus the regulation may indi-
rectly favor women. However,
women in businesses that require
significant raw materials may find
themselves disproportionately
affected because male entrepreneurs
may have access to male-dominated
supply channels that allow them to
partially conceal raw materials and
thus reduce their tax burden, but
females may not have the same
access to these supply channels. In
this case, the regulation would dis-
criminate against females. In either
case there is a gender-based differ-
ential impact of the regulation.

Administrative issues
Administrative issues involve direct
contacts between government agen-
cies or official institutions and the
firm or household. For example, a
tax collector comes to a place of
business to administer taxes on the
business. Because female-owned
businesses are less likely to be for-
mally registered, the tax collector is
less likely to know about or visit the
female-operated business. In addi-
tion, female-operated businesses are
more likely to be managed from the
home, and in societies where
women are secluded, tax collectors
may be more constrained in their
ability to pay unannounced visits to
female-operated businesses. Thus,
taxes collected from female-operat-
ed businesses may be lower than
from other businesses. This is an
example of a gender bias that may
favor women.


Figure 3

Sample Completed Matrix of Policy Impacts

1 2 3 4 5 6

National 0 -1 -1
Ministry of

Women are prohibited from haz-
ardous work environments, over-
time, and night work. This pre-
cludes women from selected
high-paying occupations.
Employers are reluctant to hire
women because employer man-
dates include maternity leave, rest
breaks, and early retirement.

1. Grant exceptions for
women past child-bearing
2. Improve on-the-job safety
so that women are not
exposed to hazards in other-
wise prohibited occupations.
3. Commission a study of
practical impacts of mandat-
ed labor laws and suggest

Property Official Court system 0 2 Even though under the law egarit women regarding
ownership stance is to and family tra- women are allowed equal proper- property.
laws protect edition ty rights, tradition dictates that 2. Streamline banking proce-
rights of property acquired by a woman is dures to place more reliance
women to held in the name of her father or on creditworthiness of the
own and husband. A female entrepreneur loan instead of collateral
control cannot use her own property to value.
property secure a business loan without 3. Educate men that register-
ing property in the father's
getting her husband's signature. or husband's name does dis-
service to women.

Tax based Raise Local munici- -1 0 +1 Tax based on raw material inven- 1. Study alternative methods
on raw revenues pality tory discourages manufacturing, of imposing local taxes
material through which makes heavy use of materi- based on value added rather
inventory easy- to- als. Encourages entrepreneurs to than raw material usage.
calculate hide inventory to avoid taxes, cre-
tax eating production inefficiencies.
Women are less likely to be in
manufacturing, so are less likely
to be impacted. However women
who are in manufacturing may
have fewer options to avoid taxes.

Tax Raise rev- Local 0 -1 +1 Tax collectors visit local business- 1. Study alternative methods
collection enues for municipality es to impose taxes. Unregistered for levying local taxes.
municipality businesses escape detection and 2. Train tax collectors in
taxation. Female-run businesses equitable administration of
are more likely unregistered. Tax taxes.
collectors may arbitrarily impose
artificially burdensome taxes on
small businesses.

-2 = very negative impact; -1 = negative impact; 0 = neutral impact; +1 = positive impact; +2 = very positive impact.



and youth


III. Principles
of the Gender
Policy Inventory
IV Conclusion


III. Principles Guiding Implementation

of the Gender Policy Inventory

The following sections contain
general guidelines for planning a
gender policy inventory, preparing
for fieldwork, conducting the analy-
sis, and following up.

3.1 Planning the
An essential characteristic of a par-
ticipatory rapid appraisal technique
is the ability to identify the most
important parts of a problem quick-
ly and without major expenditures
of time and resources. The problem
is stated concisely, with a prelimi-
nary explanation of the dynamics,
thus narrowing the options to a
more manageable level. In the plan-
ning stage a number of strategic and
methodological questions must be
Ve rses T
There are two fundamentally differ-
ent approaches that can be used to
determine economic impacts on the
household or firm. The top-down
approach starts from the macroeco-
nomic or sectoral level and identi-
fies impacts at the firm or house-
hold level, usually based on eco-
nomic theory. This approach was
used by the USAID Agricultural
Policy Analysis Project. The results
of this type of analysis are often
unclear because impacts are filtered
or offset by intervening legal, regu-
latory, and administrative issues.
The bottom-up approach starts
at the level of the household or

firm. This approach identifies
critical economic constraints and
links them to the policy level. This
technique relies more heavily on
sociological or anthropological
methods that include field interviews
of affected groups to determine
household- or firm-level impacts.
In the ARIES5 small business
project, for example, preliminary
attempts were made to use the bot-
tom-up approach to assess impacts
of policy and legal barriers on the
status of female entrepreneurs. The
results were more useful than those
from a top-down analysis likely
would have been, because the entre-
preneurs themselves identified the
practical problems associated with
the conduct of business, and it was
usually not difficult to identify the
particular regulation, law, or policy
causing the problem. The approach
suggested by this GENESYS tool is
based on the bottom-up approach.

A fundamental question that needs
to be answered in the planning stage
is, should the inventory be imple-
mented as an independent exercise
or included in a larger examination
of sectoral and economic develop-
ment issues such as a sector study,
preparation of a five-year plan, or
Country Development Strategy
Statement (CDSS) revision? There
are advantages and disadvantages to
focusing the exercise exclusively on
the inventory rather than incorpo-
rating it as part of a program to
examine sector issues.
Implementation of the invento-
ry as a free-standing exercise simpli-
fies planning and focuses attention

on inventory findings, thus prevent-
ing them from becoming lost in a
larger analysis. However, including
the inventory in a larger program of
analysis may help clarify the rela-
tionship between policy and non-
policy issues and may attract policy-
makers' attention by generating
outputs of more immediate interest
to them, such as analysis of specific
reforms or identification of sector
investments. It is recommended
that any general program of analysis
include a gender policy inventory to
examine gender-based inefficiencies
and inequalities, because there is a
tendency to isolate rather than inte-
grate gender issues in economic
development. Thus gender analysis
is best integrated into broad pro-
gram and project planning rather
than being done as a stand-alone

Gender is frequently overlooked in
studies of policy-derived impacts,
even though economic disadvantage
of women has been documented
extensively. High-level policymak-
ers may be more concerned with
overall economic performance than
with the welfare of a particular
group within the economy (e.g.,
women entrepreneurs). Although
governments are likely to examine
policies' impact on high-profile
target groups, they often overlook

5 The ARIES (Assistance to Resource Institutions
for Enterprise Support) Project was one of a
series of USAID-sponsored projects to support
small enterprise. It was implemented by Robert
R. Nathan Associates, Inc. from 1984 to 1989.


factors that negatively affect
women, not out of malice, but out
of a belief that policies are gender
neutral or that the barriers faced by
women are inconsequential.
Different impacts based on gen-
der are not usually evident at the
policy level, but are revealed at the
administrative level, where social
attitudes lead to gender-based dis-
crimination and translate directly
into gender-specific barriers to
employment and financial services.
The gender policy inventory is most
powerful as a diagnostic tool when
it focuses on the micro level (house-
holds and firms), highlighting fac-
tors that counteract policy intent
and indicating areas where gender
plays a significant role. The impact
on, and interaction with, other
groups or classes such as small busi-
ness owners can be assessed at the
same time.

Anan ytic e Reasc crr ne
A gender policy inventory planning
process entails decisions about sec-
tors and target groups to be exam-
ined, the mix of in-country and
expatriate expertise to use, and the
funding required. While the pre-
sentation of an inventory matrix
may be relatively simple, the
methodology leading to the matrix
can be quite complex. The most
important parameter for the inven-
tory is the determination of the mix
and level of expertise to be fielded
for the exercise.

A wide range of skills is needed
to successfully carry out a gender
policy inventory. At a minimum,
the team must include individuals
with extensive knowledge of the
country, skills in economic and
social analysis, field experience in
interviewing, familiarity with sec-
toral development, and expertise in
gender analysis. This argues for
conducting the inventory in con-
junction with other studies, such as
program analysis, project planning,
or background studies. Such an
approach helps integrate the inven-
tory findings into ongoing project
and program work. Similarly, the
inventory complements other social
soundness and economic analyses
conducted during project design
and evaluation. Additionally, orga-
nizing focus group discussions
among inventory analysts, partici-
pant populations affected by devel-
opment policies, and other knowl-
edgeable individuals will help iden-
tify potential resources and con-

3.2 Preparing for
Preparing for fieldwork for the poli-
cy inventory includes gathering and
reviewing available information
such as historical data, previous
analyses, discussions with experts,
and initial interviews. One problem
is determining the availability of
sex-disaggregated data in the coun-
try. Local experts with detailed
knowledge of the national economy,
the sector to be studied, and micro-
level behavior should be involved in
the preparation stage.

It is recommended that individ-
uals particularly knowledgeable
about the sector under considera-
tion carry out informal surveys.
The objective is to identify and pro-
vide preliminary evaluation of fac-
tors that may hinder or assist devel-
opment, with special emphasis on
the situation faced by women in the
sector. Formal surveys are difficult
and costly to administer, and are of
limited value in diagnosing con-
straints and opportunities in the
early stages. Informal, purposive
sampling involves selecting individ-
uals, households, or groups of
women that might be omitted in
traditional sampling.6
A modified Delphi technique
can be used to develop and refine
hypotheses regarding constraints and
opportunities.7 The general steps
involved in identifying and prioritiz-
ing constraints and opportunities,
with emphasis on those with differ-
ent impacts based on gender, are:
SDeveloping hypotheses based on
prior knowledge of similar situa-
tions in other countries, review
of literature, conversations with
experts, and initial interviews
with entrepreneurs;

6 See Russo, 1989: Gender Issues in Agriculture
and Natural Resource Management.
7 The Delphi technique begins by directing
questions to a selected group of expert respon-
dents. The results of the first round of questions
are summarized and represented to the original
group of respondents for additional comment.
Rating scales attempt to quantify priorities and
opinions. The end result is a clearer under-
standing of the forces and constraints involved.
For a more complete description of the process
see Delp and Arne, 1977: Systems Tools for
Project Planning, listed in the bibliography.



* Conducting open-ended inter-
views with contacts such as
entrepreneurs and others with
expertise in the sector to sup-
port, refute, or refine the origi-
nal hypotheses-at this stage new
hypotheses are often suggested;
* Repeating interviews with key
contact people as existing
hypotheses are refined or dis-
carded and new hypotheses are
developed. New or refined
hypotheses are presented to get
reactions of contact people.

The fastest method of discover-
ing policy-derived constraints to
small business development, for
instance, is to conduct open-ended
interviews with small business own-
ers and with service organizations
working with small businesses. In
each case it is important to ask for
referrals. Those who know the sub-
ject matter thoroughly will be able
to introduce the analyst and guide
him/her to others who are knowl-
edgeable. Referrals are important
because in some cases the most
appropriate individuals are not
known to donor agencies. In addi-
tion referrals can increase dramati-
cally the likelihood of access to oth-
erwise sensitive information.
The kinds of organizations and
individuals that may provide useful
information regarding small busi-
ness development include the fol-
* Individual entrepreneurs;
* Chambers of commerce (may
have specialists who can identify

* Trade associations and guilds;
* Law firms, especially those deal-
ing with foreign clients;
* Financial institutions (specifical-
ly Women's World Banking);
* Business and professional associ-
ations (specifically the Women's
Business and Professional
* Manufacturers, jobbers, whole-
salers, and suppliers dealing with
the sector being analyzed (these
people are generally knowledge-
able about the industry and have
wide contacts);
* Local business consultants;
* Accounting firms;
* Trade schools;
* NGOs working in the sector
(often have extensive local con-
* Prominent members of the
Rotary Club, Kiwanis Club,
Lions Club (e.g., the board of
the local Rotary Club is usually
made up of well known and pro-
gressive business leaders);
* Government officials in min-
istries such as commerce,
finance, trade, and women's
affairs (may have good insights,
but may be oblivious to con-
straints being faced in the pri-
vate sector, and may be unin-
formed about gender-related
issues); and
* Local universities or research

This methodology can be
applied across a wide variety of
other economic concerns (in addi-

tion to small business) that include
women workers. Examples include
food and cash crop agriculture, and
formal and informal sector service
industries. The tool could also be
applied to sectors where women are
the primary producers, such as tex-
tiles or agribusiness processing in
many countries. In these sectors,
particular attention may be needed
to laws, regulations, and adminis-
trative procedures and their impli-
cations for economic policy reform.

3.3 Preparing and
Completing the
Based on the interviews and analyti-
cal work, the matrix and explanato-
ry text can be prepared. Preparation
of an inventory includes a review of
recent sectoral performance and
other developments affecting impact
on the target groups. The matrix is
developed to demonstrate factors in
the economic environment and
hypotheses for further testing in a
clear, simple format.
The most important phase of
the inventory is gathering appropri-
ate information during field inter-
views. Normally the data collection
and analysis phases are separate, but
as in other forms of rapid appraisal,
direct participation of the analyst in
interviews should be maintained in
the inventory process. A large
amount of unstructured informa-
tion usually must be organized, ana-
lyzed, synthesized, and presented.
Therefore, there should be as few
barriers as possible between the
analyst and the data. Much of the
analysis takes place during the field-
work and the analyst must be able


to refine, analyze, synthesize, and
change the focus of data gathering
as required.

3.4 Follow- Up
After completion and presentation
of the analysis, follow-up should be
done to discuss the inventory find-
ings with program planners and
policymakers. During these discus-
sions the impacts of policy and policy-
derived factors can be brought to
the attention of decision makers,
and options regarding the need for
analysis and reform discussed.
Future actions can be addressed and
a plan can be devised for monitor-
ing changes over time. Other fol-
low-up actions include periodic
updates to the inventory to incorpo-
rate changes made over time, and
working sessions with government
decision makers to increase their
awareness of inventory findings.
Thus, the cycle begins with surveys
at the firm or household level,
which are used to evaluate the effec-
tiveness of policy and any unintend-
ed side effects, and the results are
used to revise policies, laws, and

IV. Conclusion

A final point should be noted con-
cerning the use of the gender policy
tool. There is a general tendency to
isolate gender issues and develop
narrow solutions to problem areas.
The policies, laws, regulations, and
administration of regulations that
have significant gender impact are
spread throughout all levels of gov-
ernment. One of the weaknesses of
program and project planning is the
tendency to focus specifically on a
particular ministry or level of gov-
ernment. Likewise, a weakness of
experienced gender analysts is that
each analyst focuses on her/his own
area of expertise and often over-
looks significant influences in other
areas. The economists tend to look
only at economic variables, sociolo-
gists at social variables, anthropolo-
gists at anthropological variables,
and so forth. One of the strengths

of the policy inventory matrix is
that it requires looking beyond the
academic discipline of the analysts
and jurisdictional limits of the
sponsoring ministry. The inventory
opens up the analysis beyond the
immediacy of project planning and
the constraints of disciplinary
A case study is attached in
Annex I as an example of a complet-
ed gender policy inventory. The
case study includes a completed
matrix and a narrative of findings
and recommendations.
Examination of differential impacts
on men and women of policies,
laws, regulations, and administra-
tive procedures is integrated into
the analysis. While this example is
synthetic, it is based on analysis
done under USAID's APAP Project
in designing principles for an
agribusiness project in Yemen and
designing a small enterprise lending
program in Jordan.




Bradley, Theresa, M. Basterrechea, Eduardo Villagran and Luis A. Castaneda. 1990. Guatemala Natural Resource Policy
Inventory, Vols. I-III. APAP II Technical Report No. 108. Bethesda, MD: Abt Associates Inc. April. (CDIE
Reference PN-ABF-993.)

Bradley, Theresa and Fred Mangum. 1990. Belize Natural Resource Policy Inventory. APAP II Technical Report No. 110.
Bethesda, MD: Abt Associates Inc. and Belize City: The Belize Center for Environmental Studies. October.

Bradley, Theresa et al. 1990. Costa Rica Natural Resource Policy Inventory, Vols. 1-3. APAP II Technical Report No. 112.
Bethesda, MD: Abt Associates Inc. and San Jos6, Costa Rica: The Tropical Science Center. October.

Bremer, Jennifer. 1987. The Policy Inventory: A Tool for Diagnosing Priorities for Analysis and Reform of Agricultural
Sector Policies. APAP Staff Paper no. 10. Bethesda, MD: Abt Associates Inc. May.

Bremer, Jennifer, Rekha Mehra and Laurene Graig. 1987. A Manual for Rapid Appraisal of Policies Affecting the
Agricultural Sector with Disaggregation of Impacts by Gender. APAP Review Draft. Bethesda, MD: Abt Associates
Inc. and Robert R. Nathan Associates, Inc. November.

Bremer-Fox, Jennifer, Samir Zaman et al. 1988. Agricultural Policy Inventory: A Tool for Setting Priorities for Analysis
and Dialogue. APAP Staff Paper, no. 24. Bethesda, MD: Abt Associates Inc. and Robert R. Nathan Associates,
Inc. August.

Delp, Peter, Thesen Arne et al. 1977. Systems Tools for Project Planning, Program of Advanced Studies in Institution
Building and Technical Assistance Methodology. PASITAM Project.

Ender, Gary. 1993. The Agribusiness Policy Inventory: The Tool and Its Use in Policy Analysis and Reform. APAP II
Methods and Guidelines No. 408. Bethesda, MD: Abt Associates Inc. August.

Johnston, George and Jose Flores. 1990. Honduras Natural Resource Policy Inventory, Vols. I-II. APAP II Technical
Report No. 111. Bethesda, MD: Abt Associates Inc. May. (CDIE Reference PN-ABH-562.)

N6fiez, Ruben, Francisco Serrano, et al. 1990. El Salvador Natural Resource Policy Inventory, Vols. I-III. APAP II
Technical Report No. 113. Bethesda, MD: Abt Associates Inc. August. (CDIE Reference PN-ABH-201.)

N6fiez, Rub6n D., Jos6 Abel Hernandez et al. 1992. Dominican Republic Natural Resource Policy Inventory, Vols. I-II.
APAP II Technical Report No. 128. Bethesda, MD: Abt Associates Inc. August. (CDIE Reference PN-ABP-568,
Spanish version)

Otero, Maria, Laurene Semenza and Paola Lang. 1987. Guidebook for Integrating Women into Small and Micro
Enterprise Projects: Gender Issues in Small Scale Enterprise. Washington, DC: Robert R. Nathan Associates, Inc.

Reintsma, Mary and Paola Lang. 1989. The Impacts of Economic and Agricultural Policies on Women in Agriculture in
Malawi. Washington, DC: Robert R. Nathan Associates, Inc. February.


Reintsma, Mary and Paola Lang. 1989. The Impacts of Economic and Agricultural Policies on Women in Agriculture in
Thailand. Washington, DC: Robert R. Nathan Associates, Inc. February.

Robert R. Nathan Associates, Inc. 1984. An Inventory of Policies Affecting Agriculture in El Salvador. APAP Technical
Document no. 118. Washington, DC: Robert R. Nathan Associates, Inc. August.

Russo, Sandra, Jennifer Bremer-Fox. et al. 1989. Gender Issues in Agriculture and Natural Resource Management.
Washington, DC: Robert R. Nathan Associates, Inc. April.

Semenza, Laurene. 1987. Female Entrepreneurship in Jordan. Washington, DC: Robert R. Nathan Associates, Inc.

Warnken, Philip F. 1989. The Impacts of Economic and Agricultural Policies on Women in Agriculture: Four Case Studies.
APAP Technical Document No. 506. Bethesda, MD: Abt Associates Inc. and Robert R. Nathan Associates, Inc.

Warnken, Philip F. 1989. The Impacts of Economic and Agricultural Policies on Women in Agriculture in Guatemala.
Washington, DC: Robert R. Nathan Associates, Inc. February.

Warnken, Philip F. and Charles F. Nicholson. The Impacts of Economic and Agricultural Policies on Women in
Agriculture in the Yemen Arab Republic. Washington, DC: Robert R. Nathan Associates, Inc. February.

World Bank Technical Note, Human Resources and Poverty Division, Technical Department, Africa Region.
1993. Paradigm Postponed: Gender and Economic Adjustment in Sub-Saharan Africa. Washington, DC: The
World Bank.

World Bank Operational Manual: Operational Policies. 1994. The Gender Dimensions of Development. Washington,
DC: The World Bank. April.

Zulficar, Mona. 1991. Women in Development: A Legal Study. (An unpublished study done at the Shalakany Law
Office in Cairo, Egypt)



Annex I:
Case Study


Annex : Case Study

The following is a fictional case
study based on results from an actu-
al development project (USAID's
Agricultural Policy Analysis [APAP]
Project). It is intended to provide
illustration of potential issues raised
and results achieved by performing
a gender policy inventory. The
country used (Lacslava) is fictional,
as are the matrix and analysis, but
the findings and recommendations
are adapted from real policy inven-
tory work done in two countries
under APAP.

1. Introduction
Lacslava Agribusiness
As part of an effort to determine
strategies and their implications for
development of the Lacslava private
sector, USAID commissioned a
study of the problems and potential
opportunities of business units in
the agribusiness sector. The results
of this study were to be used to
identify USAID program and pro-
ject interventions that would facili-
tate development of the private sec-
tor in agribusiness.
The methodology used in this
study included field interviews with
selected entrepreneurs, case studies
of specified businesses, interviews
with support organizations, and
recent studies of the agribusiness
sector. The industry sub-groupings
studied were agricultural inputs,
farm production, marketing and

distribution, fisheries, agro-indus-
tries, and services. Attention was
paid to the impacts on subsectors
and selected target groups, especial-
ly the economic position of women.
The results of the analyses are pre-
sented in a gender policy inventory
matrix on the following pages.
While some preliminary conclu-
sions were reached in the analysis,
other findings are presented as
hypotheses for further development
and testing.
The matrix and brief analysis
that follow demonstrate how gender
issues can be successfully integrated
into regular program analysis and
planning. One of the strengths of
the gender policy inventory is that
gender is placed in a wider context:
gender issues are treated as an inte-
gral part of economic development.

P A G E 20

Gender Policy Inventory Matrix of Impacts in Lacslava

Poito I Tage Group

No differential impact based
on gender. Licensing of
imports is used as a means
of controlling and allocating
foreign exchange, and indi-
rectly controlling the
exchange rate. Restriction
of import licenses artificially
inflates the value of local
currency, thus encouraging
bakshishh" to obtain import
licenses and foreign

1. Remove most limita-
tions on import licens-
2. Establish free market
exchange rates through

1 t t 1- 1 1 +


1. Study economic
returns to education in
Lacslava. Investigate
possible impact of
changing educational
policies to shift more
costs of education to
the national govern-
ment, and therefore
remove some disincen-
tives for families of edu-
cating girls.

SI 1 4 4 I

- I I I ~

Priorities for female educa-
tion and training focus only
on basic literacy and home-
making skills. Young
women are not encouraged
to take business courses.
Opportunities for females to
learn vocational and busi-
ness skills are limited when
compared to opportunities
for males. Therefore
women are less likely to
have the skills necessary to
develop and run agribusi-
nesses. In addition, women
are able to fill only unskilled
positions in the labor force.

1. Explore strengthen-
ing of vocational train-
ing for women.
2. Strengthening of
trade associations with
special interest sec-
tions for women.
3. Provide remedial
training and technical
assistance to female
4. Provide incentives
for businesses to offer
on-the-job training for
unskilled workers, with
a focus on women.

S= very negative impact; -1 = negative impact; 0 = neutral impact; +1 = positive impact; +2 = very positive impact.


for govern-
ment use

Ministry of
Finance and
Central Bank

Ministry of

rate policy

primary edu-


Train skilled
work force

trained work

Ministry of

Studies in many countries
similar to Lacslava show
that economic returns to
education for women and
girls are higher than for
males. However the family
costs for a girl's education
are higher than for boys. By
tradition a girl will marry and
join the household of her
husband's family. Therefore
the incentives for a girl's
family to provide her with an
education are lessened
since the direct benefits of a
girl's education will accrue
to the husband's family and
not the girl's family.

Gender Policy Inventory Matrix of Impacts in Lacslava (Continued)

1 2 3 4 5 6 7 8

in hiring

access of all
citizens to

Ministry of
Ministry of

Imat Impc onDsrpiePsil
on Small Women's Analysis of Actions^^^^
Business Economic Impacts on ^^^^^^^^^^^
|^B:^^^^fPosition Target Groups ^^^^^^^^^^^

There is no equal opportuni-
ty legislation. Women are
slated to menial jobs, or
men are given preference
because they are consid-
ered to be the breadwin-
ners. No employment pref-
erence is given to female-
headed households where
the woman may be the sole
source of support for the

1. Technical assistance
to draft model legisla-
tion. Also study to
determine the econom-
ic costs of labor market
discrimination for pre-
sentation to policymak-

Company Promote Ministry of -2 0 0 Inconsistencies between 1. Technical assistance
law and strong pri- Economy, different sections of the law to draft model legisla-
investment vate sector Supply and which govern the permitted tion.
law Trade level of foreign equity partic-
ipation lead to confusion
and discouragement of for-
eign investment. Gender

Labor laws Prevent Ministry of Women are prohibited from 1. Study the economic
exploitation Labor +1 0 -2 working the night shift, impacts of removing
or endan- when relatives might be restrictions on female
germent of able to take care of employees.
workers children. Women are also 2. Investigate the costs
prohibited from working in and benefits of improv-
mines or chemical factories, ing job safety for both
This effectively excludes men and women.
women from a number of
high-paying jobs.

Property Secure Ministry of 0 -1 -1 Women's land is listed in 1. Workshop for attor-
law private Economy, the name of the husband, neys and Members of
property Supply and Women cannot use proper- Parliament with
rights Trade ty as collateral for business presentation of model
investment loans without legislation.
permission from husband or 2. Study and design of
father. program to streamline
banking practices to
minimize collateral

Investment Discourage Ministry of -2 -1 -1 Private investment is subject 1. Study tours for
Law 18 wasteful Economy, to government review and government officials
investments Supply and approval before permits and and parliamentarians to
Trade licenses are issued, observe effective
Influence is needed to get the administration of per-
necessary approvals. mitting and licensing.
Possible gender bias since 2. Explicit addendum to
women do not have the nec- law to require licenses
essary leverage to obtain to be issued without
required permits in a male- regard to sex, race, or
dominated influence network. ethnicity.

Tariff Raise tax Ministry of -1 1-1 Duties on raw materials are 1. Review of tariff
structure revenues Economy, sometimes higher than structure.
Supply and duties on finished products. 2. Estimation of eco-
Trade Duties on finished poultry nomic consequences
feed subject to a lower tariff for various industry
than the tariff on feed grains groupings with break-
and protein mix. Many out of gender impacts.
women own small hammer 3. Examine what partic
mills for mixing feed and ular constraints are
cannot compete against preventing women's
cheaper imports of finished businesses from
feed, growing.

* -2 = very negative impact; -1 = negative impact; 0 = neutral impact; +1 = positive impact; +2 = very positive impact.

Gender Policy Inventory Matrix of Impacts in Lacslava (Continued)

Buiss Ecno Impa cts [' o ,ni

Positio TaretGrup

Regular import duties are
imposed at the port. The
same duties are again
imposed at internal check-
points unless it can be
proved beyond a doubt that
the goods were not smug-
gled. No apparent gender

1. Document the eco-
nomic consequences
of such practices and
present to relevant min-
istries and parliament

t 4 1 4 4 + 4

While legal requirement that
children attend school for
minimum of six years is in
place, enforcement is
uneven. Parents are less
likely to send female
children to school because
the girl will marry and
become part of the hus-
band's household. Local
authorities are less diligent
about enforcing female
attendance, and the
gender-based educational
differential increases.

1. Educational and
public information
campaign concerning
the benefits of educat-
ing daughters.

t I I 4

Government provides assis-
tance to businesses through
trade associations such as
Chamber of Commerce.
These services are useful to
business in general, but
small businesses, and par-
ticularly female-owned
businesses, do not receive
the attention and benefits
that larger businesses do.
The services do not focus
on home-based businesses
(that are more likely run by
women), service agents do
not take women's business-
es seriously, services don't
focus on service businesses
(where women are more
likely found), and social
attitudes prevent male
service agents from working
closely with women.

1. Train more female
business service agents
to work in the Chamber
of Commerce.
2. Train male service
agents to be more sen-
sitive to the needs of
female entrepreneurs.
3. Provide financial
incentives for service
agents to focus on
smaller businesses.

f t I I 4 I

No established grievance
procedures for unfair
enforcement of laws. As a
result government officials
are free to act in arbitrary or
punishing manner with no
fear of reversal or reprisal.
Those most likely to suffer
from unfair enforcement are
those without political or
economic influence such as
small businesses, women,
and minority tribal mem-

-2 = very negative impact; -1 = negative impact; 0 = neutral impact; +1 = positive impact; +2 = very positive impact.

1. Strengthen lobbying
organizations and asso-
ciations, particularly
those taking an active
interest in small
business and female
2. Educational efforts
for members of
parliament and key
individuals in the rele-
vant ministries.
3. Develop review pro-
cedures, and set up a
non-partisan grievance
review body.



Raise tax

Ministry of


Ministry of

Internal cus-
toms duties



of tax,


Ministry of
Supply and
Chambers of

Legal com-

Ministry of
Supply and
Trade; Internal
Central Bank


2. Findings and
Agriculture and
Agribusiness in Lacslava
* The agricultural sector is the
largest sector of the economy,
accounting for about 24 percent
of GDP. Approximately 86 per-
cent of the population lives in
the rural areas of the country,
where agriculture is the main
source of livelihood. The agri-
cultural sector employs roughly
70 percent of the resident labor
force. While almost all farm
households are officially listed as
male-headed, a significant pro-
portion of agricultural produc-
tion is done by women, since
many men migrate out of the
rural areas for wage work else-
* The agribusiness sector faces
artificial constraints in availabili-
ty of inputs, both from domestic
sources and imports. This
scarcity favors those business
owners who have political or
economic leverage. This artifi-
cial scarcity works to the disad-
vantage of minority ethnic
groups, small businesses,
women, and those not politically
* Demand for and supply of fresh
produce have increased substan-
tially in the last few years.
Demand is anticipated to con-
sume available supplies in most
products for the foreseeable
future. The quality of most agri-
cultural produce is below inter-
national standards, and yields
are below international averages.
There are virtually no quality
grading standards for fresh pro-
duce. During periods of scarcity
all produce is sold at premium

prices. During harvest supply
gluts, grading and sorting appar-
ently are not worthwhile for pro-
ducers. Quality grading and
pricing can be expected as sup-
plies increase relative to demand
and as competition at the whole-
sale and retail levels increases.
* The agricultural marketing and
distribution system is very poor-
ly developed: there is little price
information for marketers, inad-
equate transportation, insuffi-
cient storage, and rudimentary
packaging. Marketing losses of
fresh produce are high because
of physical damage, withering,
and bruising due to inadequate
transportation and packing
materials. The businesses that
have enough resources to get
information on markets across
the country are best equipped to
move their products into the
highest price markets. Larger
businesses invariably have better
access to information than
smaller businesses, which are
disproportionately female-run.
Lack of government-sponsored
information services results in
lower returns for smaller busi-
* The ban on imports of fruits and
vegetables has allowed domesti-
cally raised produce to com-
mand premium prices in the
market. It is unclear whether
the ban is consistent with the
comparative advantage of agri-
culture in the Lacslava economy.
Most small farmers are planting
tree crops to take advantage of
the high fruit prices. However,
many of these fruits would be
cheaper to import, if the import
restrictions were to be lifted, and
farmers who made investments
in these crops would lose money.
Many small farmers are women
who run family farms while
their husbands work abroad.
Thus, a disproportionate num-
ber of small farmers, including

women, are making crop invest-
ments that are at risk because
changes in market-oriented poli-
cies would ruin these non-
economic investments.

Government Regulations
and Policies in Lacslava
* Because of inadequate foreign
exchange reserves, the govern-
ment increasingly relies on
bureaucratic mechanisms such
as import licensing to artificially
sustain the exchange rate. Such
restrictions harm the economy,
the agribusiness sector, and par-
ticularly small businesses since
smaller businesses usually do
not have the influence or the
financing necessary to obtain the
required licenses. Restrictions
were placed on foreign exchange
transactions by the Central
Bank, and the exchange rate is
regulated. A total import ban
was placed on many consumer
goods as well as fruits and veg-
etables. This has created distor-
tions within the economy, while
at the same time resulting in
some groups benefiting by being
able to circumvent the con-
straints. Women are at a partic-
ular disadvantage since they
usually do not have leverage in
the male-dominated influence
* Arbitrary import restrictions
have led to smuggling of vital
spare parts required to sustain
productive investments already
in place. High internal trans-
portation costs result from gov-
ernment-imposed restrictions
on import and ownership of
trucks. Import restrictions have
allowed a few influential busi-
ness enterprises to procure
import licenses to achieve wind-
fall profits. Profits accrue to
those who have political influ-
ence and not necessarily to those


who contribute value added.
Entrepreneurs from minority
groups and female entrepreneurs
are particularly hard hit by these
restrictions. Import restrictions
and import licensing procedures
are often arbitrary, and present
opportunities for rent-seeking
behavior by government
* The current budgetary deficit is
increasing inflationary pressures
since the growth of the money
supply is not being controlled.
Inflation in turn encourages
investment in unproductive
enterprises such as real estate
speculation, and discourages
investment in productive outlets
such as agribusiness projects.
* Inconsistencies between invest-
ment law and company law
regarding the permitted level of
foreign equity participation con-
tribute to uncertainties and dis-
courage foreign investment.
SA cumbersome and time-con-
suming system for refunding
duties paid on raw materials
used in manufacturing discour-
ages smaller businesses. Only
large businesses or larger
importers have sufficient capital
reserves and bureaucratic influ-
ence to import raw materials
and get the duty refunded within
a reasonable time frame.
Importers sell to smaller busi-
nesses at prices that reflect near-
monopoly control. Small busi-
nesses and female-run business-
es thus have to pay higher raw
materials costs than larger busi-

* Tax assessments are sometimes
arbitrary and not applied uni-
formly from one business to
another. Taxes are often based
on usage of raw materials as a
proxy for size of business.
Larger businesses are able to
procure a significant proportion
of their raw materials "off the
books," thus avoiding payment
of taxes. Such tax assessment
and collection practices system-
atically favor larger businesses
over smaller businesses.
Unregistered businesses and ser-
vice businesses have a lower tax
incidence. Since female entre-
preneurs are more likely to run
home-based businesses, unregis-
tered businesses, or service busi-
nesses, women may be favored
by some of the tax assessment
and collection methods.
* Price controls are not enforced
on imported goods as rigorously
as they are enforced on domesti-
cally produced goods.
* Commercial laws allow govern-
ment officials to change the
application of the law by decree.
This creates uncertainty, dis-
courages long-term investment,
and fosters rent-seeking behavior.
Private sector investments are
subject to extensive review by
the government. Investment
projects require approval from
the Ministry of Economy, Supply
and Trade; obtaining this
approval is a cumbersome and
time-consuming process with no
apparent value for the private
sector business. For agribusiness
projects, it is unclear whether
the authority for approval lies
with the Ministry of Economy or
the Ministry of Agriculture.
There are no established griev-
ance procedures for unfair
enforcement of laws. This hand-
icaps particularly small business-
es, groups without political
influence, and women.

* Inconsistencies in the tariff
structure discourage productive
investment. Duties on raw
materials sometimes are higher
than duties on finished prod-
ucts. Many women have small
hammer mills for mixing poul-
try feed (an enterprise dominat-
ed by women). However the
import duty system favors
import of finished poultry feed
instead of protein concentrate
and pharmaceuticals to mix with
locally produced feed grains.
* Contrary to the stated public
policy of encouraging growth of
the private sector, public sector
corporations are competing
directly with private corpora-
tions in horticultural nurseries,
grape storage, food processing,
and veterinary medicine. The
Agricultural Credit Bank has
entered the business of import-
ing agricultural inputs, in direct
competition with the private
* Approval of an investment pro-
ject requires presenting a feasi-
bility analysis. Government offi-
cials are usually not qualified to
verify the feasibility of a project,
and there are few instances of
government officials providing
helpful advice on project feasi-
bility. There were reports of
leaks to competitors of propri-
etary information contained in
applications for project
approvals. Additional reports
alleged that payments were nec-
essary to receive timely
approvals. There does not
appear to be any economic value
to such an onerous approval
process. The burden is particu-
larly heavy for private sector
investors with no influence, such
as smaller business owners,
women, and minority ethnic

fM .


The Private Sector and
General Business
Climate in Lacslava
* The vast majority of businesses
in the country are family-run,
and all upper- and mid-level
management positions are filled
by family members. Although
female family members are not
highly visible in business, many
play critical roles in family-run
businesses. Because of reluctance
to delegate authority to non-
family members, women in the
richest families are needed to
run family businesses. These
women are given educational
opportunities abroad so that
they can return and assist in
running family businesses.
These same advantages are not
available to women in less afflu-
ent families. Women from dif-
ferent economic strata face dif-
ferent kinds of constraints.
* Business operations of the most
substantial families are self-lim-
iting because of the reluctance to
delegate authority to non-family
members. This creates niches to
allow other small business own-
ers to take advantage of market
opportunities that would other-
wise be dominated by the large
families. These niches could be
filled by minority ethnic groups,
women, or other economically
or politically disadvantaged
* The overwhelming majority of
businesses in the country are
small, family-run firms, even
where family assets are large.
Instead of expanding the size of
existing businesses, individual
businessmen start new small-
and medium-sized enterprises.
The implication is that any pro-
gram aimed at private sector
business development should
concentrate on small businesses
and start-up operations.

Comparison of small business
owners and large business own-
ers shows small businesses are
much more likely to be female-
owned and -run.
* There appear to be abundant
opportunities for private sector
investments in agribusiness.
Profit margins are generally
attractive, labor costs are low,
and the work force is largely
unskilled. A significant propor-
tion of the unskilled labor force
working in agribusiness is made
up of women, many of whom
are the sole source of support for
their family. A disproportion-
ately small percentage of the
total labor force is female
because of open discrimination
in hiring.
* Foreign-made products have an
image of higher quality, which
will be difficult for local produc-
ers to overcome even with price
advantages. The implication is
that there are opportunities for
local manufacturers to improve
quality through higher standards
for production specifications
and improved inputs through
such means as licensing.
* Information for making appro-
priate business decisions is not
readily available to business
owners. This is especially true
regarding foreign technology
and foreign markets. Those
responsible for disseminating
information within the
Chambers of Commerce are all
male, and are not aware of the
number of women running their
own businesses.
* Most businesses need training in
management, marketing, cash
management, inventory control,
and accounting. Although the
Chambers of Commerce have
business service agents to pro-
vide technical assistance and
training to businesses, these

agents cater almost exclusively to
businesses run by males. This is
partly because all of the business
service agents are male, and
partly because female entrepre-
neurs are more likely found in
smaller, often home-based busi-
nesses that are not seen as "seri-
ous" businesses. Businessmen
are eager to collaborate with
donor agencies such as USAID
in private sector development
programs, but express strong
preference for dealing directly
with the donor organization
rather than through the Lacslava
* Lacslava business owners have
very little experience with for-
eign joint ventures. Business
owners have unrealistic expecta-
tions about the roles for the joint
venture partners. This is further
complicated by a lack of under-
standing of such issues as licens-
ing, franchises, management
contracts, trademarks, and the
associated legal obligations.
* Investments are heavily skewed
toward short-term payoffs
because of political uncertain-
ties, inflation, high effective rates
of return in trading, and high
opportunity costs. Agribusiness
investments are generally per-
ceived as long-term investments
with long payoffs, and therefore
investments are minimal.
* Support institutions for private
sector businesses are limited in
their scope and relatively unde-
veloped. They are heavily influ-
enced by the government
because of dependence on the
government for financing of
staff positions and program ini-
tiatives. Trade associations are
weak. The federation of the
Lacslava Chambers of
Commerce and Industry are
weakened by bickering among
the various chambers on the


issue of leadership. Small busi-
nesses do not substantially bene-
fit from these institutions.
There is no group within the
chambers dealing with female
* There is no credit reference
bureau in the country. Financial
institutions are not trusted by
many businesses, and many
businesses do not maintain
checking accounts. Banks are
reluctant to give working capital
loans. Most bank loans are
short-term, and are periodically
rolled over to finance long-term
needs. This practice leaves busi-
nesses in a very exposed position.
* Banks generally do not have the
in-house expertise to appraise
agribusiness loan prospects. To
protect themselves, bankers
require personal guarantees,
mortgages, and other collateral
far in excess of normal prudent
requirements. This works to the
particular disadvantage of
female entrepreneurs, since
jointly held property is always
registered in the name of the
husband. Thus, a woman can-
not offer loan collateral without
her husband's active coopera-
tion, even if she has substantial
personal assets. Suppliers often
extend credit terms to their cus-
tomers. In effect, the supplier
becomes the banker for the small
business owner by supplying
working capital. Women do not
have access to informal supplier
credit because of social attitudes
concerning women as indepen-
dent business owners.
* There is no bonded warehouse
to facilitate the timely entry of
imported goods such as agricul-
tural inputs, raw materials, and
spare parts. Warehouse receipts
are not used as collateral for
financing small businesses in

3. Recommendations

The USAID strategy in Lacslava
should encourage the Lacslavan
government to change from direct
action and interventions to sup-
porting and facilitating the efforts
of the private sector. Adoption of a
non-interventionist strategy
involves acknowledging that some
functions are best performed by the
private sector and that government
should limit its involvement to areas
in which it has a unique capability.
This change would have a number
of important implications for exist-
ing and future USAID programs.
See the Gender Policy Inventory
Matrix on pages 21-23 for an
overview of the recommendations.

Macro Issues
* USAID programs should be
aimed at eliminating govern-
ment participation in commer-
cial activities that compete with
or displace the private sector.
* Renewed emphasis must be
placed on governmental provi-
sion of required infrastructure
such as transportation networks,
electricity, water, and communi-
cations. Government is unique-
ly qualified to develop infra-
structure. The private sector is
not equipped to provide these
amenities, and private sector
growth is not possible without
* Monetary, fiscal, legal, and trade
policies supportive of a stable
investment environment must
be enacted. Government alone
has control over these policies,
but the impact is felt by the pri-
vate sector. Lack of budgetary
control leads to government
borrowing and leaves little capi-
tal for private sector investment.
Government cannot legislate a

sound currency, but must take
appropriate actions to ensure
faith in the currency and assure
convertability. Government
must provide a stable economic
environment because uncertain-
ty is deadly to long-term private
sector investment.
* Evaluation of the international
comparative advantage of the
various Lacslava agribusiness
subsectors is needed. For exam-
ple, the policy of encouraging
domestic development of fruit
production by banning the
import of fresh fruit has had the
effect of increasing local produc-
tion of all types of fruit, even
though some types of fruit
should probably not be grown in
Lacslava. A study needs to be
done soon because large invest-
ments are being made in crops
that may not be economically
* The education and human
resource development policies
of Lacslava need to be reviewed.
Specific actions might include
the following:
A study of economic returns to
education in Lacslava. This
should investigate possible impact
of changing educational policies to
shift more costs of education to the
national government, and there-
fore remove some disincentives for
families of educating girls.
Explore means ofstrengthening
vocational training for women.
Strengthen trade associations with
special interest sections for
Provide remedial training and
technical assistance to female
Provide incentives for businesses
to offer on-the-job training for
unskilled workers, with a focus on
Launch an educational and pub-
lic information campaign on the
benefits of educating girls.



Legal Issues

A review of the effects of invest-
ment law, company law, property
law, and contract law needs to be
done to determine the impacts
on economic investment.

Assistance should be offered to
draft model legislation and write
regulations consistent with the
stated policy intentions of the gov-
ernment ofLacslava.
Review law stating that women
cannot use property as collateral
for business investment loans
without permission from their
husband or father.
Hold workshop for attorneys and
Members ofParliament with pre-
sentation of model legislation.
Study and design program to
streamline banking practices to
minimize collateral requirements.
Encourage an explicit addendum
to the law to require licenses to be
issued without regard to sex, race,
or ethnicity.
* Inappropriately drafted labor laws
are hindering optimal use of the
available labor force. Women make
up over half of the population, yet
are under-represented in the labor
force in the agro-industrial sector.
Possible actions include:
Provide technical assistance to
draft model labor laws.
Commission a study to determine
the economic costs of labor market
discrimination for presentation to
Study the economic impacts of
removing restrictions on female
Investigate the costs and benefits of
improving worker safety for both
men and women.

* Liberalization of the legal and
regulatory environment is neces-
sary to support private sector
initiatives. While professing a
positive policy environment,
government has adopted a coun-
terproductive regulatory stance
with measures such as price con-


trols, interest rate controls,
exchange rate controls, licensing
requirements, and business per-
mits. The net effect of these reg-
ulatory controls has been to dis-
tort market forces and discour-
age private sector investment,
despite an outwardly positive
policy environment.
* A series of short, applied studies
should be done on the economic
and financial impacts of various
regulatory practices.
* Private investment is subject to
government review and approval
before permits and licenses are
issued. Influence is needed to get
the necessary approvals. There is
possible gender bias since women
do not have the necessary lever-
age to obtain required permits in
a male-dominated influence
network. One possibility:
0 Consider study tours for govern-
ment officials and parliamentari-
ans to observe effective administra-
tion of permitting and licensing.
m Review the tariff structure to
encourage value-added industries.

SA program strategy should be
adopted to strengthen institu-
tions that provide essential sup-
port services to the private sec-
tor in agribusiness. In this con-
text, the development of new
institutions is not recommend-
ed. The chambers of commerce
and industry, the financial insti-
tutions, agricultural research
and extension organizations,
and the central planning organi-
zation's statistical data bank are
among those support institutions
that should be given priority.
* Arbitrary enforcement of regula-
tions is an indication of the need
to develop review procedures
and establish a non-partisan
grievance review body.
SThe chambers of commerce and
industry could be strengthened

by a staff development program
of training and first-hand expo-
sure to activities of the chambers
of commerce and trade associa-
tions in other countries where
such institutions have achieved
record success in the interest of
the private sector. A modest
grant of funds could be made to
the chambers to allow them to
finance practical studies docu-
menting the impacts of various
policy and regulatory practices,
using the results for educating
their own members, and forming
the basis for lobbying campaigns
with the government. Specifically:
Train more female business
service agents to work in the
Chamber of Commerce.
Train male service agents to be
more sensitive to the needs of
female entrepreneurs.
Provide financial incentives for
service agents to focus on smaller
* The interests of small businesses
are largely overlooked in the
chambers of commerce. It is
normal for officers and staff of
these organizations to cater to
the interests of their more influ-
ential members. USAID should
consider financing a small busi-
ness institute within the cham-
bers to focus the attention of the
business community and the
government on the special needs
and priorities of the small busi-
ness sector. This should include
an information center for market
opportunities, information on
technologies, and a clearing-
house for contacts. Also:
Strengthen lobbying organizations
and associations, particularly
those taking an active interest in
small business and female entre-
n A number of special studies need
to be done to determine the spe-
cific policy, legal, regulatory, and
administrative barriers that
women face in the agribusiness
sector in Lacslava.


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