Her feet, worn with the dust of the dirt packed road, trudge along as she pushes her cart. Piled upon it are a variety of fruits, from sour mangoes to sticky jackfruit. The hot sun beats down - the heat of Chennai is unforgiving. Sweat beads on her brow as the cart strains her arms; however, she still pushes on, bit by bit, one foot at a time.

She, like many women today, participates in a sector that is part of the “informal economy”- it comprises areas ranging from agricultural to domestic work. The informal economy is called this for a reason - the resources available for workers in the formal economy are nonexistent within the informal one. Countries overlook this area where over 60% of women work (Dassen 1). This leads to a disproportionately negative effect on women; insufficient access to property rights, technology, and social protection adds onto the burden. Additionally, sexual harassment is prevalent for these workers. The root cause: the barriers to obtaining formal employment. With these structures in place, women must take riskier jobs; this leads to them being “even more likely to suffer gender-based violence (GBV) at the workplace” (Alcazar 3).

The International Monetary Fund (IMF), established to promote global economic stability and growth, claims to fix this problem; closing gender gaps, especially within the informal economy can help countries recover from the global economic crisis, according to the IMF (World Economic Forum 2). Specifically, the IMF implements policies and structural adjustment programs (SAPs) in countries facing economic challenges, and also provides loans to countries that are at the brink of a recession. Although the IMF’s goal is to help countries, it does quite the opposite; SAPs implemented by the organization frequently have detrimental effects on women working in the informal sector, as well as other vulnerable populations (Syster 1). 

When public services are reduced or privatized, which is what happens under structural adjustment policies, women often absorb the shortfall through unpaid care work. For example, the lack of public childcare services forces women to spend more time caring for children at home. This ends up limiting women’s ability to participate in paid labor, further marginalizing them economically (Cooney 2). To add on, the IMF utilizes “austerity measures” to prioritize market liberalization; this exacerbates the vulnerabilities that women working in the informal economy face. Austerity measures, a type of SAP, are harsh policies that are used to slash spending to supposedly reduce a government’s debt deficit (Human Rights Watch 2). Although an overall country’s GDP may increase after these policies are put in place, cuts to sectors women primarily work in (such as the agricultural sector) lead to them being disproportionately impacted negatively (ILO). Due to this, the IMF’s labor market reforms often weaken job security and labor protections in the name of fostering economic growth. While these policies aim to attract foreign investment, they have severe consequences for the women within the informal sector. 

Export-oriented industries, such as textiles and agriculture, are clear examples of this exploitation. In these sectors, workers who are women have to deal with poorer working conditions and lower wages (FAOUN). By ignoring the negative impacts of labor market reforms, especially on women, the IMF perpetuates these systemic inequalities.

These negative effects have been observed in real time, with empirical evidence from numerous countries. In Greece, during the 2008 financial crisis, austerity measures imposed by the IMF led to slashes in social spending; as social spending includes services for critical aspects such as healthcare, it also led to the closure of maternal health clinics (Ifanti et al. 1). Another example is Jamaica; austerity measures in the 1980s led to significant reductions in education spending, which had long-term consequences for girls’ school enrollment (Trines). Similarly, in Sub-Saharan Africa, the privatization of water services increased the burden on women; they had to travel further to access clean water, limiting their opportunities for education and work (World Bank). From exploiting Argentinian women to creating a malnutrition crisis in India, the International Monetary Fund’s policies have done nothing but harm one of the most vulnerable populations.

The women working in the informal sector contribute to a whopping 35% of the GDP in low and middle income countries (IMF 1). Therefore, it is necessary to question why this key group is not being prioritized. From supporting their families’ needs, to providing essential goods to help the market, these individuals possess diverse skill sets that boost countries’ economies. It is but a matter of pure necessity that these women endure; this desperation leads to them dealing with their horrifying realities without any aid. Multilateral organizations do nothing but fan the flames of the pressing issue of women working in the informal economy; organizations like the IMF prioritize overarching growth while promoting disastrous policy relating to the informal economy in many different countries. However, all hope is not lost.

The most important thing is to recognize the rights of informal workers, so that benefits such as maternity leave and social protection can be accessible. Investment into education programs ensures that workers can reach higher paying jobs. Without putting women first, it will be impossible to achieve a world of equality; infrastructure, from childcare facilities to equal pay, will help with the advancement of women’s economic status. Bringing awareness to this issue is key towards promoting equality in a world where women are not seen as people.

Solutions towards healing the disastrous scars of past IMF policies, however, will be a bit harder to fix. Before implementing any program, the IMF should conduct thorough gender impact analyses to evaluate how proposed policies will affect women. These assessments should guide adjustments to ensure that austerity measures do not disproportionately harm women. Additionally, there should be safety nets in place so that even during an economic crisis, critical areas such as social spending are not cut. The IMF should prioritize preserving or increasing investments in essential services such as healthcare, education, and welfare. This includes safeguarding funding for maternal healthcare, family planning services, and girls’ education. There are numerous approaches to be able to finance such endeavors. A three tiered plan, including domestic revenue mobilization, debt-for-gender swaps, and budget reprioritization would be the best solution. An example of domestic revenue mobilization would be establishing a progressive tax. Progressive taxation in the long term, once a country is out of an economic crisis, could be utilized to make sure funds take into account income. Moving on, debt-for-gender swaps would make sure that debt repayments would be redirected towards gender equity programs; this, paired with budget reprioritization, would create more than enough funds for countries to provide necessary safety nets for women working in the informal sector.

Advocating for labor protections that benefit women; strengthening pre-existing safety nets; establishing public-private partnerships; and creating subsidies to increase access to essential services are just a few of the key solutions that countries themselves and the IMF can take. Making sure that women are included in policy is necessary; these changes will take time to implement, but bringing awareness to the fact that women are negatively impacted is extremely relevant. It shows that governments must take a deeper look into financial plans that “increase economic growth,” because these policies often neglect to reach their fiscal targets without slashing key areas of spending.

As she walks still on the dirt paved road, now with an empty cart in tow, she closes her dusty eyes and smiles up at the sun. The buzz of mosquitoes blends in with the chatter of cicadas, and she knows that her day is not over just yet.

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Works Cited

Alcazar, Lorena. Violence against Women in the Informal Sector, pdf.usaid.gov/pdf_docs/PA00WQ8X.pdf. Accessed 10 Feb. 2024.

“Changing Patterns in the World of Work.” International Labour Office, webapps.ilo.org/public/english/standards/relm/ilc/ilc95/pdf/rep-i-c.pdf. Accessed 14 Nov. 2024. 

Cooney, Lydon. “The Fundamental Role of Child Care in Supporting Women.” First Five Years Fund, 19 Apr. 2024, www.ffyf.org/resources/2024/04/the-fundamental-role-of-child-care-in-supporting-women/. 

Dassen, Santiago. “The Invisible Workforce: Women in the Informal Economy.” The Invisible Workforce: Women in the Informal Economy, www.lisep.org/content/the-invisible-workforce-women-in-the-informal-economy. Accessed 10 Feb. 2024.

“Five Things to Know about the Informal Economy.” IMF, 28 July 2021, www.imf.org/en/News/Articles/2021/07/28/na-072821-five-things-to-know-about-the-informal-economy. Accessed 10 Feb. 2024. 

Ifanti , Amalia, and Andreas Argyriou. “Financial Crisis and Austerity Measures in Greece: Their Impact on Health Promotion Policies and Public Health Care.” National Center for Biotechnology Information, U.S. National Library of Medicine, pubmed.ncbi.nlm.nih.gov/23790265/. Accessed 14 Nov. 2024. 

“IMF: Austerity Loan Conditions Risk Undermining Rights.” Human Rights Watch, 25 Sept. 2023, www.hrw.org/news/2023/09/25/imf-austerity-loan-conditions-risk-undermining-rights. 

Syster, Ethan. “Saps in Disguise: Modern IMF Programs Have Similar Negative Effects to Their Criticized Predecessors.” International Law and Policy Brief, studentbriefs.law.gwu.edu/ilpb/2022/04/19/saps-in-disguise-modern-imf-programs-have-similar-negative-effects-to-their-criticized-predecessors/. Accessed 14 Nov. 2024. 

“The Gendered Burden of Water Collection in Sub-Saharan Africa.” World Bank, World Bank Group, www.worldbank.org/en/data/interactive/2024/03/13/gendered-burden-of-water-collection-in-afe-afw-sub-saharan-africa. Accessed 14 Nov. 2024. 

“The Status of Women in Agrifood Systems.” Food and Agriculture Organization of the United Nations, openknowledge.fao.org/server/api/core/bitstreams/e7689bf7-00f0-465b-ad03-e0c56ffb14b1/content. Accessed 14 Nov. 2024. 

Trines, Stefan. “Education in Jamaica.” WENR, 18 Mar. 2022, wenr.wes.org/2019/09/education-in-jamaica. 

“Women in the Workforce: How Closing Gender Gaps Can Accelerate Economic Growth.” World Economic Forum, www.weforum.org/stories/2023/10/gender-gap-women-workforce/#:~:text=to%20the%20article-,Closing%20gender%20gaps%20can%20help%20countries%20recover%20from%20the%20global,sector%20action%20on%20gender%20gaps. Accessed 13 Nov. 2024. 

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