Large-Scale Farming and Gender Equality in Rural Areas: The Case of Ukraine Nataliia Kutsmus Taras Gagalyuk

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1 Large-Scale Farming and Gender Equality in Rural Areas: The Case of Ukraine Nataliia Kutsmus Taras Gagalyuk IAMO Forum 2016 Rural Labor in Transition: Structural Change, Migration and Governance June 2016 Halle (Saale), Germany

2 Background Ukraine is rural /agri-based country. A stereotype?.. Share of agriculture in GDP 10.7% Share of agriculture in employment 17.1% Source: Ukrstat (2014) 2

3 Background (cont d) Ukraine Source: World Bank Group (2015) 3

4 Background (cont d) 63% of graduates of agricultural universities prefer to work in cities (of them, 61% were born in rural areas) Only 22% would like to work in agriculture 21% would like to work in agroholdings large corporate farms Source: AgriSurvey (2014) 4

5 Agroholdings Corporate farms with: Headquarters in Kyiv and major cities Large size, e.g. 10,000 ha to above 500,000 ha each Total area operated (2014) 5.6 million ha (17% of the country s arable land) Share in gross agricultural production (2014) 22.1 % Production volume (2014) 3.5 billion USD Amount of raised capital ( ) ca. 6 billion USD Source: (UCAB, 2015) 5

6 Agroholdings (cont d) Land consolidation by agroholdings Source: AgriSurvey (2014) 6

7 Land use structure in Ukraine Enterprises of agroholdings 5.6 million ha Independent agricultural enterprises 11.8 million ha Family farms 4.7 million ha State agricultural enterprises 4.5 million ha Rural households 6.4 million ha Source: (UCAB, 2014) 7

8 Gender changes in agriculture and rural areas Indicators to 2010, +/- Number of rural population, million 14,51 14,41 14,33 14,25 14,16-0, 35 share of women, % 53,2 53,1 53,0 53,0 52,9-0,3 share of men, % 46,8 46,9 47,0 47,0 47,1 0,3 Number of economic active rural 6,97 6,97 6,88 6,91 5,85-1,12 population, million share of women, % 63,0 63,5 62,5 63,1 55,2-7,8 share of men, % 72,2 72,9 73,0 74,1 68,6-3,6 Number of employed in agricultural enterprises, thousand 805,9 728,8 749,3 661,4 607,5-198,4 share of women, % 40,2 43,6 44,0 43,4 37,9-2,3 share of men, % 59,8 56,4 56,0 56,6 62,1 2,3 Number of employed in family 98,4 99,9 100,2 98,6 94,8-3,6 farms, thousand share of women, % 27,3 26,6 26,2 25,8 25,9-1,4 share of men, % 72,6 73,3 73,7 74,1 74,0 1,4 Gender pay gap in agriculture, % 12,9 n.a. n.a. n.a. 29,8 16,9 Source: Ukrstat (2014) 8

9 Gender changes in agriculture and rural areas Indicators to 2010, +/- Number of rural population, million 14,51 14,41 14,33 14,25 14,16-0, 35 share of women, % 53,2 53,1 53,0 53,0 52,9-0,3 share of men, % 46,8 46,9 47,0 47,0 47,1 0,3 Number of economic active rural 6,97 6,97 6,88 6,91 5,85-1,12 population, million share of women, % 63,0 63,5 62,5 63,1 55,2-7,8 share of men, % 72,2 72,9 73,0 74,1 68,6-3,6 Number of employed in agricultural enterprises, thousand 805,9 728,8 749,3 661,4 607,5-198,4 share of women, % 40,2 43,6 44,0 43,4 37,9-2,3 share of men, % 59,8 56,4 56,0 56,6 62,1 2,3 Number of employed in family farms, thousand 98,4 99,9 100,2 98,6 94,8-3,6 share of women, % 27,3 26,6 26,2 25,8 25,9-1,4 share of men, % 72,6 73,3 73,7 74,1 74,0 1,4 Gender pay gap in agriculture, % 12,9 n.a. n.a. n.a. 29,8 16,9 Source: Ukrstat (2014) 9

10 Research question Agroholdings impact on gender equality: positive (by creating jobs, supporting leadership of rural women and ensuring their incomes, promoting social stability in rural areas, etc.); negative (by deepening gender labour segregation, supporting patriarchal model of community development, ignoring social problems of rural society, etc.). Agroholdings as a progressive form of concentrated management of agricultural enterprises? Gender equality as an indicator of economic and social effectiveness of evolutionary transformation of rural areas 10

11 Theoretical background Gender approach to the development (Rees, 2005) Gender as a social institution, which takes part in the development of society by establishing patterns of social organization in the economy, politics and ideology (Lorber, 1994; Martin, 2004). Gender segregation of labour the phenomenon of the existence of separate individuals belonging to different gender groups in the labour market (Maltseva, 2007). 11

12 Gender approach to the development 3 components: Political empowerment of rural women; Economic empowerment of rural women; Social security of rural women 12

13 Data and methodology Data: Gender economic activity, education, political engagement and social processes across 24 regions of Ukraine (Ukrstat, ) Land accumulation by 132 agroholdings (UCAB, ) 1 4 GII MMR ABR MMR ABR 3 FSP FPE 1 2 FLFP MSP MPE 1 FSP FPE MSP MPE FLFP MLFP MMR maternal mortality ratio, per of births; ABR adolescent birth ratio, births per 1000 women under 19; FSP females share of seats in local authorities, %; MSP males share of seats in local authorities, %; FPE female population with at least secondary education, %; MPE male population with at least secondary education, %; FLFP female labour force participation rates, %; MLFP male labour force participation rates, % Source: UNDP (2010) MLFP 1 1

14 Results: Gender inequality in Ukrainian rural areas 0.5 Gender Inequality Index Gender Inequality Index for rural areas of Ukraine, Gender inequality index, rural population Gender inequality index, Ukraine Gender Inequality Index,

15 Results: Land use and gender inequality Land used by agroholdings, ha < > Gender Inequality Index < >0.430 Negative correlation between the increase land use by agroholdings and gender inequality in rural areas (r=-0.34) The highest level of gender inequality is observed in areas with maximum share of rural households in agricultural production structure 15

16 Results: Land payments and gender inequality Rent payments, UAH per ha of farmland < >1000 Gender Inequality Index < > % of land shares in Ukraine owned by women Portion of economically active women does not enjoy the benefits of high competition at land rent markets 16

17 Results: gender inequality and incomes of rural households Incomes of households, UAH y(x) = ,243x ,116x ,891 R2 = 0, Gender Inequality Index Dependence between incomes of rural households and Gender Inequality Index 17

18 Results: Influence of economic activity of gender on household incomes Incomes of households, UAH Incomes of households, UAH Male economic activity y x x ,68 0,69 0,70 0,71 0,72 0,73 0,74 Female economic activity y x 10 x ,59 0,60 0,61 0,62 0,63 0,

19 Incomes of households, UAH Incomes of households, UAH Results: Influence of educational level of gender on household incomes y x 99232x ,74 0,76 0,78 0,80 0,82 0,84 0,86 0,88 0,90 y 58192x x Male level of education Female level of education 0,74 0,76 0,78 0,80 0,82 0,84 0,86 0,88 0,

20 Discussion: Economic empowerment, professional needs and traditions Demand of agricultural enterprises for employees Head of department/enterprise Purchases/sales manager Accountant/economist/analyst Production specialties (agronomist/engineer/ 6% 14% 17% 63% TOP-5 types of women employment: Agriculture 19.4% Retail trade 16.9% Education system 12.0% Health and social help 10.6% State government 4.7% Source: UCAB (2014) 0% 10% 20% 30% 40% 50% 60% 70% 100% Gender structure of 80% students in Zhytomyr national agroecological 60% university, % academic year 20% Source: ZNAEU data (2015) 0% Women's share, % Men's share, % 20

21 Political empowerment of rural women Indicators of political empowerment of rural women in Ukraine: Every 3rd rural leader is a woman (UAVTC, 2015) 51 % of rural deputies of local authorities are women (RATING Pro, 2015) No of 32 women NGOs, focused on policy initiatives, deals with the problems of rural women (UWP, 2016) Cooperation between rural authorities and agroholdings: implementation of gender-sensitive approach to rural development problems; develop leadership potential of rural women, their ability to take part in policy formation and decision-making processes 21

22 Conclusions In the context of economic crisis and government inability to solve some sensitive rural development problems, agroholdings involve into addressing social needs of rural population. The involvement of women in political processes in rural areas is high but female entrepreneurship is lagging behind due to existing gender barriers: unequal starting conditions and access to economic resources, lack of opportunities for full realization of female human capital, etc. Sustainability of gender stereotypes in the society provides basis for gender regime in the economy, which is transferred to rural society. Agroholdings activity may help equalize the gender regime at the household level through creation of jobs for women and introduction of gender-sensitive CSR programs. 22

23 Thank you for your attention! 23