CABAR.Asia
Kazakhstan:
Invisible Barriers
Invisible Barriers
In Kazakhstan, women own material assets five times rarer than men, have less financial opportunities to open their businesses, and encounter stereotypes and obstacles within their families.
Bayan Kazhkenova lives in the east of Kazakhstan, in a remote village of Katon. The woman established her business over twenty years ago.
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It was the end of the 90s, a difficult and economically unstable time. Irregular salaries, shortage of everything, even essential stuff. I had to feed my family, so I had to leave teaching and open my business. I started with baking bread and rolls at home. People were buying my products very well and highly appreciated them. When I saved some cash, I started to supply and sell food products in our village. Then I was a seller at the market, then I had a kiosk, and then I managed to buy an old and idle building of the printshop in the village. I repaired it and opened a store there.
She did not stop baking bread and rolls. She founded a bakery, employed some people and taught them all the nuances of baking.
It was difficult to deliver food and flour to Katon. It is 500 kilometres from the village to the regional centre where everything is available, and the path runs through the mountainous area, along the serpentine roads, and steep turns. Transportation costs are high, and the purchasing power of villagers is low. Moreover, there is a sad trend in recent years: more and more people leave the village. Previously, 9 thousand people lived in Katon, and now less than 4 thousand villagers live there. However, the village lies in the most beautiful region of Kazakhstan with fresh air and spring water.
It was difficult to deliver food and flour to Katon. It is 500 kilometres from the village to the regional centre where everything is available, and the path runs through the mountainous area, along the serpentine roads, and steep turns. Transportation costs are high, and the purchasing power of villagers is low. Moreover, there is a sad trend in recent years: more and more people leave the village. Previously, 9 thousand people lived in Katon, and now less than 4 thousand villagers live there. However, the village lies in the most beautiful region of Kazakhstan with fresh air and spring water.
Bayan Kazhkenova
Photo courtesy
Photo courtesy
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At first, there were no government funding programmes to help entrepreneurs open their business and get on their feet. I did not have a vehicle, a start-up budget, I didn't have enough money for business development. I started everything from the scratch and did not have any privilege from the state. I don't have my loan programmes or grant receipt stories in my entrepreneurship. However, the state provided me with some flour as I am a baker this year. For the first time it was a real and visible support.
Now I see more opportunities than 15 years ago. Therefore, I want to apply for a 5-million-tenge grant (11.54 thousand dollars) to buy baking ovens. It would let me provide social bread to our village. No one has received state grants so far in our region, but I want to draft the project and file an application this year.
Now I see more opportunities than 15 years ago. Therefore, I want to apply for a 5-million-tenge grant (11.54 thousand dollars) to buy baking ovens. It would let me provide social bread to our village. No one has received state grants so far in our region, but I want to draft the project and file an application this year.
According to Bayan Kazhkenova, many rural proactive women start up their own business. This is the only way to improve financial position. In her village of Katon, almost 80 per cent of all entrepreneurs are women. In recent years, the region has been developing tourism, guest houses emerge, the Sustainable Development Fund of Katon-Karagai district has been actively working.
Gendered economy
Kazakhstan is a secular state with no gender-based division in such key areas as education, health, social relations. Girls receive all kinds of educational services equally with boys. The result is equally high literacy rate among boys and girls aged 15-24 – 99 per cent. This is the official statistical data.
There is no discrimination against women in terms of access to higher education. According to the statistical digest "Women and men in Kazakhstan" for 2016-2020, the gross coefficient of high education coverage among women is even higher in the country. Out of 100 girls, 70 have specialised secondary education or higher education (among men, this indicator is 58). Differences are reported only in selected professions. For example, among all students of engineering, construction, IT professions, there are 69 per cent of boys and 41 per cent of girls. In legal professions, business administration, public health, liberal arts, the proportion is to the contrary.
In Kazakhstan, women are not discriminated upon employment. According to statistical data, the proportion of men and women among employed workers in the country is almost equal, 50.9 per cent vs. 49.1 per cent. Gender differences in economic status of the population are shown mainly in the pay gap. According to the National Statistical Bureau of Kazakhstan (NSB), the difference in gender pay in Kazakhstan in 2020 was 25 per cent. Women earned 75 cents for every dollar a man earned. However, there has been a positive trend in recent years.
There is no discrimination against women in terms of access to higher education. According to the statistical digest "Women and men in Kazakhstan" for 2016-2020, the gross coefficient of high education coverage among women is even higher in the country. Out of 100 girls, 70 have specialised secondary education or higher education (among men, this indicator is 58). Differences are reported only in selected professions. For example, among all students of engineering, construction, IT professions, there are 69 per cent of boys and 41 per cent of girls. In legal professions, business administration, public health, liberal arts, the proportion is to the contrary.
In Kazakhstan, women are not discriminated upon employment. According to statistical data, the proportion of men and women among employed workers in the country is almost equal, 50.9 per cent vs. 49.1 per cent. Gender differences in economic status of the population are shown mainly in the pay gap. According to the National Statistical Bureau of Kazakhstan (NSB), the difference in gender pay in Kazakhstan in 2020 was 25 per cent. Women earned 75 cents for every dollar a man earned. However, there has been a positive trend in recent years.
Can we consider it a progress? For Kazakhstan, where the gender pay gap was 34 per cent just three years ago, this decrease that took place in the first pandemic year is quite remarkable. In 2021, this indicator dropped to 18 per cent (the data for the first quarter). Looking at the indicator in the global statistics, Kazakhstan has a room for improvement. According to the OECD database, the average gender pay gap in the member countries of the Organisation for Economic Cooperation is 11.6 per cent.
It should be noted that gender income inequality in Kazakhstan in various sectors can differ significantly. For example, the gender pay gap in the production sector reaches 29 per cent, in financial and insurance sector – 35 per cent, and in such kinds of activity as education or administrative service women earn a little more (1.6 per cent and 0.7 per cent, respectively).
Statistics does not differ between men and women in terms of poverty rate. The rate of population with income below the food basket cost is equal in both – 0.1 per cent. However, this indicator is calculated not per household, but per person. If we measure the number of families with children in Kazakhstan whose income is not enough to buy essential food, they will be 5 per cent of total population (or 936 thousand). This is the data provided by the National Statistics Bureau of Kazakhstan. The fact pointing at gender inequality here is that most single-parent families (87 per cent) that are below the poverty line are usually headed by women.
It should be noted that gender income inequality in Kazakhstan in various sectors can differ significantly. For example, the gender pay gap in the production sector reaches 29 per cent, in financial and insurance sector – 35 per cent, and in such kinds of activity as education or administrative service women earn a little more (1.6 per cent and 0.7 per cent, respectively).
Statistics does not differ between men and women in terms of poverty rate. The rate of population with income below the food basket cost is equal in both – 0.1 per cent. However, this indicator is calculated not per household, but per person. If we measure the number of families with children in Kazakhstan whose income is not enough to buy essential food, they will be 5 per cent of total population (or 936 thousand). This is the data provided by the National Statistics Bureau of Kazakhstan. The fact pointing at gender inequality here is that most single-parent families (87 per cent) that are below the poverty line are usually headed by women.
Women in entrepreneurship
According to the statistical digest "Women and men in Kazakhstan" issued by the National Statistics Bureau, the number of Kazakhstan females who possess material assets (land plots, enterprises, property) is five times less than males. It makes females more vulnerable when starting their businesses. According to statistics, difference in the proportion of females and males owning private companies is rather significant, 30 per cent vs. 70 per cent. If we analyse companies by their proportionality, we will see that this indicator refers more to small enterprises (30.1 per cent). In middle-sized companies, female owners make 18.7 per cent, in large-sized companies this indicator is even less – 14.7 per cent.
When analysing enterprises by kinds of activity, it becomes clear that most companies headed by women are low-margin companies. They are engaged in wholesale and retail (24.4 per cent of total number of women-headed companies), services (13.3 per cent), education (12.2 per cent).
The editorial office of CABAR.asia asked Asemgul Urazaeva, chair of the International Association of Women of Central Asia, to comment on these figures. The girl from a small town of Uralsk in Kazakhstan has advanced from a novice business lady to the chief executive of a large-scale company, business coach and knows the difficulties women encounter in entrepreneurship.
The editorial office of CABAR.asia asked Asemgul Urazaeva, chair of the International Association of Women of Central Asia, to comment on these figures. The girl from a small town of Uralsk in Kazakhstan has advanced from a novice business lady to the chief executive of a large-scale company, business coach and knows the difficulties women encounter in entrepreneurship.
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Kazakhstan has no legislative prohibitions or restrictions to women who want to start up their business. We can freely work, self-employ, run business. The only thing that women can face is barriers within their households. A man can forbid his wife to work, so that the woman could devote herself to hearth and home and raising children, which is related to our oriental state of mind. The following postulates have been supported for ages: a man is a breadwinner who provides money to the family, while a woman keeps the house and takes care of children. However, this patriarchal approach when a woman often works not for income, but for personal development, self-esteem, is unacceptable for some people in the modern society.
The woman-owned business rating by kinds of activity is associated with the special set of mind. The fact that woman-owned businesses are in the low-margin niches is not always related to funding. According to Asemgul Urazaeva, Kazakhstan women often choose creative businesses rather than technical areas. There are few female executives in industrial spheres.
"The fact that every third legal entity in Kazakhstan is led by women is very indicative. 30 per cent is a good figure especially if we compare it to what we had a few years ago. If we compare Kazakhstan with other Central Asian states, we are making quite good progress. For example, in Tajikistan the proportion of female businesses is below 20 per cent," the head of the International Association of Women of Central Asia said.
Tatiana Chuchupalova has opened a felt workshop. In Kazakhstan, this rare process uses manual labour, not machines.
She grew up in a small Kazakhstan village of Verkhneberezovsky. Upon completion of school, she went to study to Ust-Kamenogorsk, obtained higher education there, and then worked for four years as a specialist in a design institute. Then she decided to open business in her village.
She grew up in a small Kazakhstan village of Verkhneberezovsky. Upon completion of school, she went to study to Ust-Kamenogorsk, obtained higher education there, and then worked for four years as a specialist in a design institute. Then she decided to open business in her village.
Tatiana Chuchupalova
Photo courtesy
Photo courtesy
"Felting was my hobby. I have made slippers, scarves, bags of felt. At the same time, I have attended various training courses and workshops on starting business," Tatiana Chuchupalova said. "In 2014, I won a grant under the UN Development Programme and bought my first equipment. At first, my project was non-profit one, I opened a workshop where I taught both children and adults to make felt things."
Tatiana started to attend master classes held in various cities of Kazakhstan and Central Asia. She especially liked her trip to Bishkek, where the young woman saw a large-scale felt production. It was a great experience, which became useful afterwards. In 2017, Tatiana Chuchupalova opened her business and became an entrepreneur.
Tatiana started to attend master classes held in various cities of Kazakhstan and Central Asia. She especially liked her trip to Bishkek, where the young woman saw a large-scale felt production. It was a great experience, which became useful afterwards. In 2017, Tatiana Chuchupalova opened her business and became an entrepreneur.
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My parents had a small village premise that was empty, and I decided to use it for my business. We organised production of felt footwear, and also made various pictures, interior canvas, designer decorations: all of natural material.
Tatiana is glad she could open her business. It brings her joy, income and flexible hours, which gives her an opportunity to do housework and take care of her child. Her workshop uses only manual labour, yet all processes are well-established and automated as much as possible.
However, she encounters difficulties, too. First, felting is a non-standard process, which has no analogues in the east of Kazakhstan. So, she cannot exchange experience with anyone. Second, it is hard to find the appropriate staff for a long-term employment.
However, she encounters difficulties, too. First, felting is a non-standard process, which has no analogues in the east of Kazakhstan. So, she cannot exchange experience with anyone. Second, it is hard to find the appropriate staff for a long-term employment.
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Our village of Verkhneberezovsky is a dead end and untrafficable place. The village is called an "extinct" as the number of local residents diminishes every year. Our village has a school, a hospital, a post office, but no large-scale plant that could give stable jobs to thousands of people. Therefore, many people move to cities. I try to give stable and creative job to those who keep on living in the village.
According to her, her business suffered during the pandemic: sales went down then. She had to take out consumer loans, but she could not take part in state loan programmes.
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We have a production floor area, but banks do not take it as a pledged asset because rural premises are valued for nothing. I have tried to take part in the state programme "Business Roadmap" yet to no avail as felting seems to be a low priority sphere of business development. Therefore, I have to manage all the difficulties myself. I hope the economic situation will stabilise and there will be programmes that would really support small businesses in villages.
Credit capacity
The statistics on loans granted speaks of the gender inequality and different capital capacity of banks. Women take on the same number of loans as men, but their loan amounts are many times smaller. There are the following data from various development finance institutions of the country.
The ratio between the quantity of loans taken on by women and men from "Damu" Entrepreneurship Development Fund (state organisation – author's note) is almost equal – 50.4 per cent and 49.6 per cent. But difference in the amount is great. In the total loan portfolio of the Fund, 87 per cent of loans are granted to men, and only 13 per cent to women. In state companies, KazAgroFinance and Agrarian Credit Corporation that specialise in supporting agribusiness, the ratio both in number and in amount of loans is as follows: 14 per cent for women and 86 per cent for men.
State statistical bodies gather information about microloans taken by the people. However, these statistical reports do not differ between genders.
The ratio between the quantity of loans taken on by women and men from "Damu" Entrepreneurship Development Fund (state organisation – author's note) is almost equal – 50.4 per cent and 49.6 per cent. But difference in the amount is great. In the total loan portfolio of the Fund, 87 per cent of loans are granted to men, and only 13 per cent to women. In state companies, KazAgroFinance and Agrarian Credit Corporation that specialise in supporting agribusiness, the ratio both in number and in amount of loans is as follows: 14 per cent for women and 86 per cent for men.
State statistical bodies gather information about microloans taken by the people. However, these statistical reports do not differ between genders.
Gender-based NGOs
According to the register of non-governmental organisations of the Committee for Civil Society Affairs of Kazakhstan, Kazakhstan has over 283 NGOs engaged in gender issues (in combination with other kinds of activity). Among them, 106 organisations focus only on implementation of equal rights of women.
When analysing the data of the largest organisations, the reporter of CABAR.asia found out that contact information available on the lists of organisations is no more relevant, not all NGOs have websites or social media profiles.
When analysing the data of the largest organisations, the reporter of CABAR.asia found out that contact information available on the lists of organisations is no more relevant, not all NGOs have websites or social media profiles.
"Indeed, there are many registered gender-based NGOs in our country, yet many of them do not lead an active life. Currently, Kazakhstan has about 10 large organisation that are engaged in gender equality. They mainly get support from the state. These are mostly civil initiatives. First, activists identify the problem, then put it on the agenda, and then suggest solutions at the state level, amendments to laws, regulations," Asemgul Urazaeva said.
Expert recommendations
According to Maigul Nugmanova, candidate of economic sciences, head of the Centre for Gender-based Economy Researches of Kazakhstan at the Narxoz University, in Kazakhstan the role of women is in a more vulnerable position because of existing gender roles in the family, the society, and because of gender inequality (restricted access to resources, unequal distribution of unpaid housework).
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According to official statistical data, in Kazakhstan the employment and unemployment rates among men and women differ insignificantly. At first sight, the situation does not seem to be that dramatic, but we should always keep in mind that we do have gender discrimination on the labour market. This is professional segregation (feminisation of low-wage professions and positions), gender pay gap, inefficient allocation of human resources.
The gender-based economy expert by inefficient allocation of human resources means the fact that Kazakhstan women often do not have a choice of work. Women often have to choose the jobs that would be comfortable for them to combine with unpaid housework and unpaid care of family members. In these conditions, women just cannot compete with men for high-paying decent jobs.
"Decent work is not the fact of having a job, but the quality of jobs. This concept refers to decent wage and good working conditions, adequate social protection and freedom of choice for women, respect for human dignity. The higher the quality of work, the higher the quality of life," the head of the research centre said.
The main systematic source of gender inequality, according to Maigul Nugmanova, is unequal distribution of time in a household. According to the national survey of time budget in a household, most load of child care, elderly care, unpaid housework lies on women. It reduces their real income, opportunities for professional development and business opportunities.
"Decent work is not the fact of having a job, but the quality of jobs. This concept refers to decent wage and good working conditions, adequate social protection and freedom of choice for women, respect for human dignity. The higher the quality of work, the higher the quality of life," the head of the research centre said.
The main systematic source of gender inequality, according to Maigul Nugmanova, is unequal distribution of time in a household. According to the national survey of time budget in a household, most load of child care, elderly care, unpaid housework lies on women. It reduces their real income, opportunities for professional development and business opportunities.
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To support Kazakhstan women, to ensure their equal participation in socioeconomic, political life, the state, family, employers must first provide support in terms of performance of unpaid housework, child care and elderly care. How can the government help with that? First, it should provide access to quality healthcare and education, social protection services.
Decent jobs should be created for them, they should have access to institutional care services (kindergartens, senior homes, centres on longevity). The point is not only about their availability, but also about the quality and cost of their services. The status, wages of social workers should be raised; attention should be paid to development of social infrastructure; benefits to family members who take care of dependent family members should be introduced; paid maternity leaves should be prolonged until children reach the age of three.
We should have sufficient number of kindergartens, development centres, senior homes in cities and villages. Now we run short of them. For example, there are only private kindergartens in villages, and their services are unaffordable to the low-income rural residents.
Decent jobs should be created for them, they should have access to institutional care services (kindergartens, senior homes, centres on longevity). The point is not only about their availability, but also about the quality and cost of their services. The status, wages of social workers should be raised; attention should be paid to development of social infrastructure; benefits to family members who take care of dependent family members should be introduced; paid maternity leaves should be prolonged until children reach the age of three.
We should have sufficient number of kindergartens, development centres, senior homes in cities and villages. Now we run short of them. For example, there are only private kindergartens in villages, and their services are unaffordable to the low-income rural residents.
Rural women in Kazakhstan find themselves in even more vulnerable position than their urban peers. According to the 2021 data voiced by the head of the Centre for Gender-based Economy Researches, the poverty rate in Kazakhstan villages is two-times higher than in cities. At that, women represent the majority among the poor and unemployed. Taking into account the fact that rural residents have restricted access to quality education, decent jobs, loans, own business opportunities, it can be concluded that gender inequality rate in villages is even higher than that in cities.
Recently, specialists of the Centre for Gender-based Economy Researches with the support of the Soros Foundation Kazakhstan have carried out a research, where they tracked down the relationship between the access to institutional care services and women's employment opportunities. The experts have found that the increased state investments for improved access to kindergartens, senior homes will lead to the growth in women's employment, increase in tax revenues (IPN), increase in pension contributions.
Recently, specialists of the Centre for Gender-based Economy Researches with the support of the Soros Foundation Kazakhstan have carried out a research, where they tracked down the relationship between the access to institutional care services and women's employment opportunities. The experts have found that the increased state investments for improved access to kindergartens, senior homes will lead to the growth in women's employment, increase in tax revenues (IPN), increase in pension contributions.
"Currently, we are working to put the unpaid work issues on the national agenda. In the framework of the care economy project, we are running a scholarship programme and carrying out researches of care sphere in the country based on national survey data analysis. They are required to work out recommendations on promotion of innovative policies in the care sphere. We are collaborating with NGOs and state bodies that are engaged in care issues. This is a relevant yet silenced and underrated issue in Kazakhstan and Central Asia. Resolving this issue can contribute directly to the improvement of women's status in the society. We would like to have our projects and researches contribute to the government's intention to become the state taking care of welfare of its citizens," the head of the Centre said.
Authors:
Inna Chernyshevskaya
Irina Kuznetsova
Irina Kuznetsova
Editor:
Natalia Lee
Layout:
Akylai Tatenova
Slider photo:
Getty Images
