We need targeted strategies to redistribute power and resources to women

For almost two years the pandemic has altered all our lives in ways we would never have imagined. We have all missed loved ones, felt scared, worried and isolated. But the pandemic has not affected us all equally.

Since the outbreak of the pandemic, all types of violence against women and girls, particularly domestic violence, have intensified. Cramped living conditions, movement restrictions and isolating women with their abusers have all contributed to this “shadow pandemic.”

Pandemic increases burden on women

Women are over represented in sectors that are worst affected by the crisis, particularly retail and hospitality, where such jobs cannot be done remotely. Women have faced obstacles re-entering the labour market. As reported by Oxfam, the COVID-19 crisis cost women around the world at least $800 billion in lost income in 2020. This is equivalent to more than the combined GDP of 98 countries.

It’s no surprise that women are not able to return to the workforce. Globally, women took on 173 additional hours of unpaid childcare work in 2020. This compares to 59 additional hours for men, according to research by Centre for Global Development. With more of us at home and schools and creches closed, unpaid care work was never so visible. Yet the burden of work is not shared equally, with long lasting effects. Another study by the McKinsey Global Institute showed that, following the pandemic, mothers are more likely than fathers and women without children to stay out of work.

Women on the frontlines of the pandemic

Women are also on the frontlines of the pandemic, making up 70% of the healthcare workers globally, typically underpaid and under resourced. The World Health Organisation estimates a global shortage of 5.9 million nurses, with almost 90% of those shortages being in low and middle income countries- exactly where vaccine access is at its lowest due to failure by countries like Ireland to ensure equal vaccine access.

When core education and health human rights are not realised, the impact is felt triply and most acutely by women and girls. Women and girls are more likely to be excluded from accessing basic services. They lose opportunities for decent work in the public sector. And bear a disproportionate share of the unpaid care and domestic work that rises when public services fail.

Even within humanitarian response to endless crises around the world today, women are systematically excluded from decision making. Women are viewed as passive beneficiaries rather than recognising their agency.

The pandemic has exacerbated existing inequalities between women and men in almost all areas of life. And the world, rolling back on hard-won achievements on women’s rights.

The challenge is how to address these underlying power dynamics? Only targeted political approaches and feminist alternatives that really get to the root causes of these issues will change this status quo.

Solutions to gender inequality

We need to call out this patriarchy that continues to drive systems of gender inequality and oppression. Feminist movements in the Global North but most particularly the Global South, need support, resources and solidarity to address the lack of response from States to realise women’s human rights.

We need to shift the assumptions that all women’s experiences are the same. And develop nuanced responses to the needs to young, old, LGBTI, women with disabilities.

In responses to poverty and inequality, we need to work as equal partners with movements in the Global South with a shared vision of this redistribution of power towards women’s human rights.

We need to address the nature and structure of the global economy that exploits the people of the global south at the expense of consumption in the North – addressing how economic ideology, trade, taxation, corporate human rights abuses – compound gender inequality. A report published this year by ActionAid, Public Services International and Education International, The People Versus Austerity, shows that International Monetary Fund (IMF) advice to cut government spending in 15 developing countries as part of their austerity programme, has wiped nearly $10 billion from public sector wage budgets. This is the equivalent of cutting more than three million jobs, including doctors, and nurses and teachers at the height of the pandemic.

There is hope

Change can happen. In ActionAid, even though people are struggling in Ireland, we have seen increasing generosity from the general public to help us to challenge the inequalities that are becoming more visible than ever.

The importance of care and public services are now more recognised than ever. And so, there seems to be no better time to consider some fundamental questions. Is an economic model that has championed austerity and the cutting of public services for the last 50 years, the best suited to meet our needs? Is a model that exploits the poorest countries and prioritises the richest nations – at the expense of our planet, still fit for purpose? And is the care of our children, our sick and our elderly the least important or should it be the most valuable work of all?

It is time to challenge assumptions that underpin our economic system, and to support the global movement for a system based on care, a just transition, corporate accountability and public services that deliver on women’s human rights.

Photo credit: ActionAid Bangladesh/Md. Ariful Islam

This blog originally appeared as an opinion piece in the Irish Times on 31st December 2021, available here.

Protesters holding End Fossil Fuels banner at a climate demonstration, advocating for renewable energy solutions.

Protestors at COP 28 in Dubai. Photo: Konrad Skotnicki.

Climate protest with diverse crowd holding signs about environmental action in a city square.

Belfast Climate Change March, 2019. Photo: Trócaire.

The Profit Driving the Crisis

Despite their overwhelming contribution to global emissions, fossil fuel companies continue to attract significant financial backing—driven by their enduring profitability. This is starkly illustrated by the case of ExxonMobil, the top fossil fuel investment held by asset managers based in Ireland. In 2023, ExxonMobil reported €33.63 billion ($36 billion) in profit. That is almost twice the GDP of Botswana (€18.1 billion) and nearly three times Namibia’s GDP (€11.5 billion).

Ireland plays a hugely disproportionate role in facilitating investments into fossil fuel companies like ExxonMobil. In 2023, the investments made into fossil fuel companies by investment managers based in Ireland generated an estimated 72.5 million tons of CO2e. This is more than the CO2e emissions for the entire country of Ireland—and more than ten times that generated by Sierra Leone.

The Global Human Impact

The climate crisis is here, now, and it is causing disproportionate harm in the Global South. In Bangladesh, rising sea levels and increasingly severe cyclones are displacing coastal communities, with projections indicating that 17% of the entire country could be underwater by 2050. The legally binding Paris Agreement on climate change explicitly acknowledges the importance of tackling private finance. Its three overarching goals are: keeping below 1.5C of warming; increasing adaptation and making finance flows consistent with low emissions and resilience.

This gives a clear mandate for action:  both tax reform and corporate regulation are needed to tackle financial flows, and both nationally in Ireland and at EU level, ‘polluter pays’ taxes are lacking and regulation of the financial sector remains weak and fragmented. While EU regulation exists, it is designed more to nudge investors toward more sustainable investment practices by increasing transparency and reporting levels than to enforce strict standards. And it is moving in the wrong direction: the recently passed EU Corporate Sustainability Due Diligence Directive excluded investments; and now the EU Commission’s Omnibus legislative proposal threatens to undo the limited gains made on climate plans, as well as blocking future attempts for stronger action at national level.

The Risk of Inaction

Fossil fuel investment is too profitable to remain weakly regulated. If Ireland continues with its current strategy of encouraging FDI at all costs, and relying on weak EU regulation, we are headed for catastrophe. The Inter-governmental Panel on Climate Change has repeatedly warned that every fraction of a degree beyond 1.5°C brings irreversible consequences: collapsed ice sheets, vanishing coral reefs, and extreme weather events that will make vast regions of the planet uninhabitable. And yet, companies are developing oil and gas fields that could push global warming beyond 2°C.

Our research found that 91% of the investments made into fossil fuel companies by investment managers based in Ireland were to companies that have plans for fossil fuel expansion like these. Ireland cannot afford inaction on this issue.

About This Research

The figures in this report regarding investment from Ireland are based on new research commissioned by ActionAid Ireland and Trócaire. In the paper, we uncover the scale of fossil fuel investment through Ireland, who the investors are, and in which fossil fuel companies they are investing.  We analyse the current regulatory framework and explain why it is inadequate—and moving in the wrong direction. And we make specific recommendations for change, which are summarised below.

Summary of Recommendations

Regulate the private financial sector
Ireland must end its outsized role as an enabler of destructive fossil fuel investment. Ireland should introduce a strong gender-responsive national human rights and environmental due diligence framework which includes the regulation of investors with respect to human rights and the environment and climate. The transposition of the EU Corporate Sustainability Due Diligence Directive could achieve this if downstream activities are included and the Omnibus proposal is rejected. Ireland should prohibit investments in fossil fuel expansion and require investors to implement climate transition plans consistent with a 1.5°C climate limit.

Endorse the Fossil Fuel Non-Proliferation Treaty
Ireland should endorse developing a Fossil Fuel Non-Proliferation Treaty to curb fossil fuel expansion and commit to a fair and funded phase out of fossil fuels.

Support tax justice
Ireland should support bold and fair new global tax rules through the UN Framework Convention on Tax, should adopt all OECD BEPS measures, and should conduct an updated and comprehensive spillover analysis of its tax policy. Ireland should take coordinated action globally, at the EU level and domestically to introduce a range of new taxes to mobilise finance needed for climate justice, based on ‘polluter pays’ and social equity principles such as wealth taxes for the highest earners, climate damages tax on investors, fossil fuel production taxes and levies on aviation and shipping.

Finance a just transition
Ireland must also meet its fair share climate finance obligations under Article 9.1 of the Paris Agreement, and pay our ecological debt to the Global South. Ireland should support conditionality-free debt cancellation for countries on the front lines of the climate crisis, commit to a new UN Framework Convention on Sovereign Debt, moving debt negotiations from the IMF to the UN, and to a debt workout mechanism that is fully representative and fair.

Further reading