Addressing the gender divide in the e-commerce marketplace – a policy playbook for the global South (IT for Change)

Arguments

Women are systematically excluded from markets and particularly from access to credit

Supporting facts:

• ITFC’s study uncovered a systemic gender exclusion from markets across various countries

• This exclusion particularly affects women-led enterprises

Topics: Gender Equality, Market Access, Financial Inclusion

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Women are underrepresented in jobs associated with Industrial Revolution 4.0

Supporting facts:

• Women’s representation in roles like data analytics and artificial intelligence is limited

• This underrepresentation was observed across all countries included in the ITFC study

Topics: Gender Equality, Digital Economy, Employment

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Informal sector in India consists of a significant portion of women

Supporting facts:

• Around 80% of the female workforce in India works in the informal sector

• These informal workers face issues of low production, low pay, and exclusion from state support schemes

Topics: Informal Economy, Gender Equality, India

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Capacity building initiatives need to be more inclusive and needs-based for women

Supporting facts:

• Existing capacity building initiatives have a limited scope and are not able to fully cater to the needs of women

• Training programs should be short and allow for continuous learning

Topics: Gender Equality, Capacity Building, Skills Development

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Discussions around sustainability and gender need to be included in the conversation on digital trade

Supporting facts:

• Eshani Vaidya advocates for the inclusion of sustainability and gender conversations within the broader context of digital trade.

• Gender-based impacts of digital trade are significant, and Eshani Vaidya asserts they cannot be viewed as separate issues.

Topics: Digital Trade, Sustainability, Gender equality

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Report

A study conducted by ITFC has uncovered a concerning issue of gender exclusion faced by women in various markets across different countries. The study reveals that women, particularly those leading enterprises, are systematically excluded from accessing markets and obtaining credit.

This exclusion has a detrimental impact on women-led businesses worldwide. The study also highlights the underrepresentation of women in jobs associated with the Fourth Industrial Revolution, such as data analytics and artificial intelligence. This underrepresentation was observed in all countries included in the study and indicates a significant gender disparity in the workforce.

In India, around 80% of the female workforce operates within the informal sector. These informal workers face numerous challenges, including low production, low pay, and exclusion from state support schemes. The study emphasizes the need for state-based schemes in India to be more inclusive and provide support for women in the informal sector.

It suggests leveraging common service centres to offer last-mile access to government electronic services for women, thereby bridging the digital divide and enabling easier access to relevant support. The study also examines the issue of capacity building initiatives for women.

It reveals that existing initiatives have a limited scope and fail to adequately cater to the specific needs of women. To address this, the study suggests that training programs should be shortened and structured to facilitate continuous learning, ensuring a more inclusive and needs-based approach to capacity building for women.

In the context of digital trade, the study highlights the importance of including sustainability and gender conversations. Eshani Vaidya, an advocate for this inclusive approach, argues that gender-based impacts of digital trade cannot be treated as separate issues and need to be integrated into broader discussions on sustainability.

Additionally, the study notes the significance of strengthening domestic governance to support women-led enterprises. It highlights that women-led businesses tend to be less sustainable compared to their male-led counterparts. Therefore, the study recommends providing greater support and resources to these women-led enterprises to enhance their sustainability.

In conclusion, the ITFC study sheds light on various challenges faced by women in the economic sphere and emphasizes the need for inclusive policies and initiatives. These include addressing gender exclusion from markets, promoting gender equality in jobs associated with technological advancements, supporting women in the informal sector, enhancing gender-inclusive capacity building programs, integrating sustainability and gender conversations in digital trade, and strengthening domestic governance to ensure the sustainability of women-led enterprises.

Arguments

A key challenge for African MSMEs in engaging in e-commerce is the heavy commission charge on e-commerce platforms. There is a lower access to credit and financing for these MSMEs especially for women-owned businesses.

Supporting facts:

• This information is based on the research conducted in African countries, particularly Kenya, Rwanda, South Africa, Nigeria, and Uganda.

• Women entrepreneurs access e-commerce mainly through social media apps like Facebook due to the affordability.

Topics: E-commerce, Financing, Gender Gap

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Low digital trust due to unawareness of e-commerce laws and protection mechanisms among consumers is a challenge in the uptake of e-commerce.

Supporting facts:

• There is a general concern among consumers regarding how their data is used or misused.

• Lack of online dispute resolution mechanisms leads to lower trust.

Topics: Digital Trust, Consumer Protection, E-commerce

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The issues of digital trade negotiations are highly political and sensitive, with countries defending their own interests

Supporting facts:

• One of the big issues is around custom duties or whether or not to make the moratorium permanent

Topics: Digital Trade Negotiations, Political Sensitivity

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Making the moratorium permanent could lead to a drastic loss of revenue and weakening of the fiscal base

Supporting facts:

• This is likely to put more pressure on the health services or social security net, which will disproportionately impact women workers

Topics: Moratorium, Loss of Revenue

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Women in the global south are affected differently by digital trade compared to women in the global north or their male counterparts

Supporting facts:

• Women workers are largely in the informal sector and lack formal contracts

Topics: Women in Global South, Digital Trade, Gender Disparity

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Need to mainstream gender thinking in digital trade issues

Supporting facts:

• Women have a different perspective in terms of how they’re going to share their data, how they value their data

Topics: Gender Mainstreaming, Digital Trade Issues

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Report

The analysis focuses on the challenges faced by African micro, small, and medium enterprises (MSMEs) in engaging in e-commerce. One of the key challenges identified is the heavy commission charges imposed by e-commerce platforms. This financial burden makes it difficult for MSMEs to fully participate in e-commerce activities.

Furthermore, limited access to credit and financing is particularly problematic for women-owned businesses, exacerbating the existing gender gap in e-commerce. Another challenge discussed is the low level of digital trust among consumers. Many consumers are concerned about how their personal data is used or misused in e-commerce transactions.

This lack of trust is further intensified by the absence of online dispute resolution mechanisms, which leaves consumers feeling vulnerable and less willing to engage in e-commerce. To address these challenges, it is proposed that innovative financing methods be implemented to enable women to access e-commerce platforms.

Measures such as the introduction of trust marks on websites and reliable payment methods can enhance consumer trust and confidence in e-commerce. Additionally, developing local e-commerce platforms and improving online access to financial banking accounts can help create stronger links between African MSMEs, especially women-owned businesses, and e-commerce.

Furthermore, the analysis emphasizes the importance of considering gender disparities when discussing the implications of e-commerce. It is highlighted that women in the global south experience lower benefits from participating in e-commerce platforms compared to women in the global north.

This discrepancy is attributed to differences in skills, technological capabilities, access to training, and capacity-building opportunities. Digital trade negotiations involving e-commerce are observed to be highly political and sensitive, with countries prioritizing and defending their own interests. The issues surrounding customs duties and the permanence of the moratorium on digital trade are contentious and require careful deliberation and negotiation.

The potential impact of making the moratorium on digital trade permanent is also explored. It is suggested that such a decision could lead to a drastic loss of revenue and weaken the fiscal base. This could, in turn, put more pressure on health services and social security nets, disproportionately affecting women workers.

Moreover, the analysis points out that women in the global south are affected differently by digital trade compared to their male counterparts and women in the global north. Women workers in the global south largely occupy the informal sector and often lack formal contracts, which further exacerbate the gender disparity in digital trade.

Addressing these concerns requires the mainstreaming of gender thinking in digital trade issues. Women have a different perspective on data sharing and value their data differently, making it crucial to consider their needs and perspectives in policy and decision-making processes.

Finally, the analysis recommends conducting further research to substantiate the case for incorporating gender considerations into digital trade issues. It is crucial to develop a strong business case that highlights the heterogeneous development implications of e-commerce and digital trade across different gender groups.

Overall, the analysis sheds light on a range of challenges in the field of e-commerce in Africa, particularly in relation to MSMEs and women-owned businesses. It underscores the need for innovative financing, trust-building measures, gender-focused approaches, and further research to address these challenges and tap into the potential of e-commerce for inclusive and sustainable development.

Arguments

E-commerce can contribute to women’s development through flexibility in working hours, lowering the cost of trade, and providing access to online financial services.

Supporting facts:

• Most women-owned businesses are small and medium enterprises (SMEs). E-commerce could benefit this sector.

• Digital financial services could increase access to formal banking system especially in developing countries.

Topics: E-commerce, Women’s development, Online financial services

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Policies dealing with these challenges need to be proactive and the gender perspective should be considered from the outset.

Supporting facts:

• Guidelines have been provided by the ITC (International Trade Center) on how to integrate gender perspectives in WTO’s work.

• There are consistent disconnects between countries’ obligations and WTO rules.

Topics: Policy Making, Gender Perspectives, E-commerce Negotiations

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Data Governance is being discussed from a developmental standpoint instead of being put inside discussions, inside a basket that is related to the digital economy

Supporting facts:

• Europe is not doing brilliant either in terms of data concentration.

• There is a real concentration between two big players.

Topics: Data Governance, Digital Economy

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There is a need to take developmental topics, including gender topics, and make them transversal

Supporting facts:

• Developing country governments are trying to push an agenda that is beneficial for their MSMEs, many of which are run by women.

• Current trade agreements do not give enough importance to gender and development issues.

Topics: Gender Policies, Development, Digital Economy

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Report

The analysis of the given statements highlights several important points regarding the relationship between e-commerce, women’s development, and policy-making. Firstly, it is argued that e-commerce has the potential to contribute significantly to women’s development. This is primarily due to the flexibility in working hours that e-commerce offers, which can benefit women-owned businesses, most of which are small and medium enterprises (SMEs).

By allowing women to work at their convenience, e-commerce provides them with greater opportunities to balance work and personal responsibilities. Additionally, it is highlighted that e-commerce can help reduce trade costs, making it easier for women-owned businesses to engage in global trade.

Moreover, the access to online financial services facilitated by e-commerce can be particularly significant in developing countries, where many women lack access to formal banking systems. This access can empower women economically and help promote their financial inclusion. However, it is acknowledged that there are challenges hindering progress in this regard.

One major concern is the concentration of power in the digital economy. Reports have raised concerns about the future threat of automation, which could disproportionately affect jobs predominantly held by women. Furthermore, the World Bank and UNCTAD have released reports highlighting the concentration of power in the digital economy, which poses challenges for equitable participation.

The discussion also emphasises the need for proactive policies and the integration of a gender perspective. The International Trade Centre (ITC) has provided guidelines on integrating gender perspectives in the work of the World Trade Organization (WTO). However, there are consistent disconnects between countries’ obligations and WTO rules, indicating the need for more proactive approaches.

Another key point raised is the need to make developmental and gender topics transversal to current trade agreements. It is argued that developing country governments should push for an agenda that supports their Micro, Small, and Medium Enterprises (MSMEs), many of which are run by women.

Current trade agreements are criticised for not giving enough importance to gender and development issues. The discussion also highlights the importance of ensuring practical implementation of gender-specific measures. It is noted that current discussions on gender tend to be mainly women talking to women, and most developing country negotiators are men.

To ensure effective agreements, it is crucial for negotiators to understand that gender equality contributions should be binding and measurable within the developmental package. Furthermore, the analysis draws attention to the issue of data concentration and governance in the digital economy.

It is noted that Europe is also facing challenges in terms of data concentration, with two major players dominating the market. The argument is made that discussions on data governance should not be isolated but rather integrated into broader discussions related to the digital economy.

In conclusion, the analysis highlights the potential of e-commerce to contribute to women’s development through flexibility in working hours, reduced trade costs, and improved access to financial services. However, challenges such as the concentration of power in the digital economy and the need for proactive policies with a gender perspective must be addressed.

It is crucial to make developmental and gender topics transversal to current trade agreements while ensuring practical implementation. Additionally, discussions on gender should include binding measurements, and data concentration and governance should be addressed within the context of the digital economy.

Arguments

There are significant digital and gender divides across regions

Supporting facts:

• As of 2022, only 27% of the population in LDCs were using the internet compared to 90% in developed countries

• In LDCs, 30% of women and 43% of men used the internet in 2021

• The high cost of basic data and mobile broadband subscription is a significant barrier

Topics: Internet Use, Gender Divide, Digital Divide

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Traditional barriers for women in business are replicated online

Supporting facts:

• The barriers include limited access to resources, network and information

• Small enterprises in developing countries that are owned or led by women face many barriers including digital barriers

Topics: Women in Business, E-commerce, Digital Economy

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Women face different challenges in e-commerce compared to men

Supporting facts:

• Women-owned businesses in Africa are more likely to access e-commerce through informal methods like social media due to lower access to credit and financing

• Lack of online trust and digital skills among female consumers in African countries is constraining the uptake of e-commerce.

• Women in the global south tend to reap lower benefits from e-commerce compared to women in the global north due to a host of issues like skills and ability to use these technologies.

Topics: E-commerce, Gender inequality, Digital skills

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The need for more research and data to understand the implications of digital trade from a gender perspective and support policy-making

Supporting facts:

• In 2023 an online course on trade and gender with a focus on e-commerce was conducted reaching around 350 participants

• A study titled ‘e-commerce from a gender and development perspective’ published in May 2023 lends further weight to this topic

Topics: Trade, Gender, Digital Trade, E-commerce, Policy Making

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Report

There are significant digital and gender divides across regions, with only 27% of the population in less developed countries (LDCs) using the internet compared to 90% in developed countries. This disparity highlights the unequal access to technology and internet connectivity, exacerbating existing inequalities.

In 2021, in LDCs, only 30% of women and 43% of men were internet users, indicating a significant gender gap in digital access. One of the key barriers to internet usage in LDCs is the high cost of basic data and mobile broadband subscriptions.

These expenses make it difficult for individuals, particularly those in low-income households, to afford internet access. As a result, many people, especially women, are excluded from the numerous opportunities and benefits provided by the internet, such as access to information, education, and economic opportunities.

The digital divide faced by women is not limited to access and affordability; traditional barriers for women in business are replicated online. Women-owned businesses, particularly in developing countries, face limited access to resources, networks, and information. This lack of support hinders their ability to grow and succeed in the digital economy.

These barriers need to be addressed to create an inclusive and equitable online business environment. To effectively address these challenges, there is a need for an adequate legal framework that protects consumers and addresses issues like privacy, cybersecurity, and digital rights.

Currently, many LDCs lack a well-equipped legal system to deal with these matters, posing obstacles for businesses operating in the digital environment. Establishing robust legal frameworks will create a safer and more secure digital space, enabling businesses to thrive and individuals to participate fully in digital activities.

In the field of e-commerce, women face distinct challenges compared to men. Women-owned businesses in Africa, for example, often resort to informal methods, such as social media, to access e-commerce due to limited access to credit and financing options. The lack of trust and digital skills among female consumers in African countries further restricts the potential uptake of e-commerce.

These challenges, coupled with disparities between women in the global south and global north, emphasize the need for gender-focused policies and interventions in e-commerce to ensure inclusivity. The critical importance of addressing gender inequalities in e-commerce is further highlighted in trade negotiations.

There is a contradiction within the World Trade Organization (WTO), where one working group focuses on enhancing women’s participation in international trade, while e-commerce negotiations remain gender-blind. This oversight overlooks the specific experiences and challenges faced by women, particularly in the global south.

Prioritizing gender equality in e-commerce within trade negotiations will promote a more inclusive and equal digital trade environment. To support policy-making in this area, more research and data analysis are required to understand the implications of digital trade from a gender perspective.

A recent study titled “E-commerce from a gender and development perspective” has shed light on this topic, emphasizing the need for further research to inform policy decisions and strategies. Robust data and evidence-based analysis will enable policymakers to devise effective measures that address gender inequalities and promote inclusive growth in the digital economy.

In conclusion, the digital and gender divides across regions remain significant challenges. Limited access to the internet, high costs, traditional barriers for women in business, and the lack of an adequate legal framework hinder inclusive digital development. Addressing these challenges requires concerted efforts to bridge the gap in digital access between developed and less developed countries, as well as gender-focused interventions in e-commerce and trade negotiations.

By prioritizing gender equality and implementing sound policies, we can create a more inclusive and equitable digital future for all.

Arguments

Women in Latin America rapidly shifted to e-commerce and social media for business during the COVID-19 pandemic

Supporting facts:

• Women in Latin America moved their businesses online during the COVID-19 pandemic.

• Difference between men and women’s e-commerce habits is remarkable, women use more social media, while men tend to use e-commerce platforms.

Topics: Digital Divide, E-Commerce, Latin America

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Women in e-commerce use social media as a networking and business-boosting tool due to its flexibility to tell a story around their product

Supporting facts:

• Women prefer using social media for e-commerce due to it allowing better communication with their consumers.

• They used it to enhance their brands, take better product pictures, and advertise better.

Topics: Digital Divide, E-Commerce

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Existing e-commerce platforms are not meeting women’s needs due to being designed based on a male perspective

Supporting facts:

• Women prefer telling a story around their products and desire more flexible, adaptable platforms.

• Existing e-commerce platforms are designed from a male perspective.

Topics: Digital Divide, E-Commerce

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Women primarily sell locally, not internationally, due to logistic issues and lack of export spirit

Supporting facts:

• Logistic issues are a significant barrier preventing women in Latin America from trading internationally.

• Women even tend to sell more locally due to lack of knowledge on using e-commerce tools for international trades.

Topics: Digital Divide, E-Commerce, Trade Barriers

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E-commerce negotiations at WTO are gender-blind and are driven by a corporate agenda

Supporting facts:

• Negotiations on e-commerce involve 89 countries but they’re gender-blind

• The agenda for these negotiations are pushed by big tech companies

Topics: E-commerce, Gender equality, Corporate influence on trade policy

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Report

Women entrepreneurs in Latin America quickly adapted to the challenges posed by the COVID-19 pandemic by shifting their business operations to the digital realm, specifically to e-commerce platforms and social media. Notably, there is a significant difference in e-commerce habits between men and women in the region.

Women tend to rely more heavily on social media platforms, while men are more inclined to use traditional e-commerce platforms. The preference for using social media in e-commerce by women is attributed to its superior communication capabilities with consumers. Women leveraged social media platforms to enhance their brands, improve product photography, and create more effective advertising strategies.

However, despite the increasing popularity of e-commerce among women entrepreneurs, existing platforms do not adequately meet their unique needs. This is primarily due to these platforms being designed from a male perspective, overlooking the specific requirements and desires of women in business.

To address this issue, there is a growing consensus that platforms designed specifically for women entrepreneurs are necessary. These platforms would offer more flexibility and adaptability to allow women to tell compelling stories about their products and cater better to their entrepreneurial skills.

The remark made by the speaker highlights the importance of creating e-commerce tools that align with women’s distinct needs, helping to bridge the existing gender gap in the digital marketplace. Nevertheless, women entrepreneurs in Latin America face various challenges when it comes to international trade.

Logistic obstacles pose a significant barrier, limiting their ability to engage in cross-border transactions. Additionally, due to a lack of knowledge regarding the use of e-commerce tools for international trades, women tend to primarily sell their products locally. To promote gender equality in trade and overcome these challenges, public policies should enforce gender justice in free trade agreements and ensure algorithm accountability.

The speaker proposes the inclusion of enforceable gender chapters in free trade agreements and emphasizes the need for algorithmic accountability, as discriminatory algorithms may penalize women who take longer to respond due to caregiving responsibilities. When examining e-commerce negotiations at the World Trade Organization (WTO), it becomes evident that these discussions are gender-blind and driven by a corporate agenda.

This lack of consideration for gender-related issues in e-commerce negotiations, which involve 89 countries, highlights the need for a genuine gender and environmental agenda throughout all WTO negotiations. Factors such as the lack of algorithmic accountability and the gender-blind handling of data storage and processing further compound the challenges faced by women in the digital economy.

It is worth noting that some initiatives ostensibly aimed at promoting gender equality through free trade agreements have been viewed as “pink washing.” These initiatives are criticized for their failure to effectively address the real impact of trade rules on women and marginalized communities.

In conclusion, the COVID-19 pandemic accelerated the adoption of e-commerce and social media platforms by women entrepreneurs in Latin America. However, gender disparities remain in e-commerce habits, and existing platforms fall short in meeting the unique needs of women. Overcoming logistic barriers, facilitating international trade, and ensuring gender justice in free trade agreements are essential steps towards achieving greater gender equality in the digital economy.

Additionally, there is a need for a more gender-inclusive and environmentally conscious approach to e-commerce negotiations at the WTO.