Economy

LITERATURE REVIEW ECONOMY In order to facilitate a shared understanding behind why our partner organization, CARE Canada pursues the initiatives that it does, a closer look at the economic landscape of Africa, and the role that women play is required. Author Anita Spring (2009) distinguishes two sectors - Formal and Informal - that characterize Africa’s “Dual Economy.” Through her discussion of these sectors, Spring argues that women generally fall in the Informal sector which refers to unregistered, unregulated, and untaxed businesses, including service enterprises, production activities, and street vendor sales (Spring, 2009). She further argues that there are five factors limiting women entrepreneurs’ upward movement within and between the sectors; (1) insufficient expansion due to a deficiency in capital, management skills, formal education, and formal-sector business experience; (2) inability to procure essential supplies and find profitable markets due to lack of contacts, skills, and capital; (3) government regulations that are “rent seeking” or deter business transactions; (4) inability to expand their business and/or compete in outside local markets due to the lack of networks, fiscal transparency, global experience, etc.; and (5) limits on private enterprise due to the political landscape in many counties (Spring, 2009). Another factor that also limits women in the African landscape is that most programs aimed at correcting economic imbalances, tend not to view women as integral to economic growth (Mehra, 1997). These articles indicate that women are present in the informal sectors of the African economy, but maintain a relatively small presence in the formal sector of the developing world; an imbalance that CARE Canada strives to modify. However, while most African women entrepreneurs are lower on the scale, there are a growing number of women at the top who provide role models of achievement within their countries (Spring, 2009).

Another important concept gained from our reviewed literature is that many of the projects geared toward correcting imbalances failed because their motivations were welfare and not development, and that those programs that have made progress are the ones operating under the same premise that CARE Canada employs – that women are fundamental to economic development (Mehra, 1997) and that teaching them skill is the preferred approach. Enforcing Western expertise is ineffective, and “appropriate technologies” (Mtshali, 1998) must be adopted. The notion of “appropriate technology” is based on the fundamental principle that African women will always insist that the basic needs of households and communities are met before considering their own needs. Therefore, consultation with African communities must be facilitated in order to provide women with a means to becoming economically independent and self-reliant (Mtshali, 1998). This literature provides insight into who CARE Canada’s “I Am Powerful” initiative involves women’s participation in the formation of empowerment projects because they are ultimately responsible for the success of such projects.

Finally, while many scholars agreed on the main principles relating to economic development and women in poverty, one phenomenon that is troublesome for those involved in gender and development work is the percentage of women who choose to conform to existing gender structures rather than seeking approaches that will allow them to be empowered and break free of subordination (Sharp. et al, 2003). Some scholars argue that women in poverty make strategic choices depending upon their realized economy and status, but that cultural and personal issues are also involved Therefore, imposing Western values (equal rights/empowerment) upon African women will not be successful unless women themselves believe they are as compatible with other roles as men (Sharp. et al, 2003). This is an interesting perspective in relation to our work in partnership with CARE Canada. If we assume that the argument that “projects can succeed with their practical aims of strengthening women's roles in household production, but the strategic aims will only emerge as women themselves see them as compatible with their other roles” (Sharp. et al, 2003) is true, than it gives us insight into why methods employed by CARE Canada in Africa for facilitating equality have been taken.

Spring, Anita(2009) 'African Women in the Entrepreneurial Landscape: Reconsidering the Formal and Informal Sectors', Journal of African Business, 10: 1, 11 — 30

Sharp, J. Briggs, J. Yacoub, H. & Hamed. N. Doing Gender and Development: Understanding Empowerment and Local Gender Relations. Transactions of the Institute of British Geographers, New Series, Vol. 28, No. 3 (Sep.,2003), pp. 281-295

Mtshali, S. (1998). "Honing Technologies That Build Women's Economic Base." Techno-Innovation, Agenda Feminisrt Media (8), pp. 23-35

Mehra, R. (1997). "Women, Empowerment, and Economic Development."Annals of the American Academy of Political and Social Science. Vol 554, pp. 136-149